Branding and the Marketing Mix

8/8/2019 Branding and the Marketing Mix

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S hifts in Marketing

Digitalization and connectivityDisintermediation and reintermediation

Customization and customerizationIndustry convergenceNew customer and company capabilities


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S hifts in Customers/Companies

ConsumersIncrease in consumer power Greater variety of goods and servicesInstant access to informationIncrease order placing efficienciesBots, chat rooms, customer feedback sites

CompaniesIncreased geographic reach promotional and transactionalcoverageCollection of fuller and richer customer information

Two-way interactionPermission marketingCustomize offeringsRecruiting, purchasing, training, internal and externalcommunication improvements


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Integrating the BrandInto S upporting Marketing Programs

Supporting marketing mix should beSupporting marketing mix should bedesigned to enhance awareness anddesigned to enhance awareness andestablish desired brand image.establish desired brand image.


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Retail Mix-refresh

Price structureLocation

S tore atmosphere/ambienceProduct offerings/assortment


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Product

Product is at the heart of brand equityIt is the primary influence

consumers experience with a brand

Hear from othersWhat the seller can tell the customer about thebrand

Design and deliver what the consumer needs

and wantsTo create loyalty, expectations must be met,exceeded


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Product

Product S trategyDeliver tangible and intangible benefits

Add value through customer information


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Perceived Value and Quality

V alue ~ determined by the consumer P erceived quality is a global assessments on what isa quality produce and how well the brand rates onthose dimensionsP erceptions of quality

PerformanceFeaturesConformance qualityReliabilityDurabilityS erviceabilityS tyle and design


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Brand Intangibles associated withproduct

S peed accuracy care of deliverer Information

Promptness courteousnessImageryMcKinseys 3-d model

FunctionalProcess benefits

Relationship


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Relationship Marketing

T ranscend the purchase exchange to makemeaningful connectionsP remise (Frederick Reichheld, The Loyalty Effect

Acquiring new customers can cost 5x more thanthe costs in retaining current

Average company loses 10% of its customers ayear

A 5% reduction in the customer defection rate canincrease profits by 25-85 percentThe customer profit rate tends to increase over thelife of the retained customer


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Personalizing Marketing

Current issuesMass customization-make the products to fit consumer exact specificationsCRM

After-marketing & loyalty programs-activities after purchase

Instruction manualsCustomer service departmentComplimentary replacement parts/ingredients:loyalty-newsletter premiums other incentives


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N ew approaches to relationshipmarketing

Experiential MarketingPermission MarketingOne-to-One Marketing


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One-to-One Marketing:Competitive Rationale

Consumers help to add value by providinginformationFirm adds value by generating rewardingexperiences with consumers

Creates switching costs for consumers

Reduces transaction costs for consumersMaximizes utility for consumers


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One-to-One Marketing:Consumer Differentiation

Treat different consumers differentlyDifferent needsDifferent values to firm

currentfuture (life-time value)

Devote more marketing effort on most

valuable consumers (and customers)


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One-to-One Marketing:Five Key S teps

Id entify consumers, individually andaddressably

D ifferentiate them, by value and needsI nteract with them more cost-efficiently andeffectively

Cus tomize some aspect of the firm

sbehavior B ran d the relationship


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Experiential Marketing

Employ multiple touch points &multiple sensesOften involves special events,contests, promotions, sampling, on-line activities, etc.

Combine brand education &entertainmentDistinctive and relevant


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Permission Marketing(S eth Godin)

Permission marketing encourages consumers toparticipate in a long-term interactive marketing campaignin which they are rewarded in some way for payingattention to increasingly relevant messages.

AnticipatedPersonalRelevant

Permission marketing can be contrasted to interruptionmarketing


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Price

Pricing S trategyUnderstand perceptions of valueBalance price, cost, & quality


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S etting Prices to Build Brand Equity

Determine the method for how current price is setTarget pricingEDLPCost based

Competition basedDemand basedProfit based

Value-pricing-balance cost, prices, design anddeliveryS et policy for other incentives and promotions over time


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Place

Channel S trategyBlend channel push with consumer pull

Develop & brand direct marketing options


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Channel members as customers

Channel designDirect

IndirectMulti-channel or dual distribution

Channel supportRetail segmentationCooperative advertising and tradepromotions


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Brand equity created by channeldesign

D irect Allows customers to better understand the depth breadth advariety of products associated with the brand: Nike Town,Disney S tore

IndirectEquity created through actions and support of intermediaries:marketing research, communications, contact, matching,sorting, assorting, negotiating, physical distribution, financing,risk taking, service

A

lway s

d

es

ign a thing by cons

i d

ering it in it s

next larger context-a chair in a room ,a room in a ho us e, aho us e in an environment, an environment in a city

plan. Frank Lloyd Wright


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Promotion

Communication S trategyMix & match communication options and or create an IMCBlend push and pull

Branding and the Marketing Mix

Documents

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