Building Brand Equity and Brand Identity

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Transcript of Building Brand Equity and Brand Identity

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    M. Ali Umar Ismail Niken Ayu M.Metta Yunita Nikolas SimamoraMohamad Mahi Riris Kristina S.

    Building Brand Equity andBrand Identity

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    Designing Marketing Programs

    to Build Brand Equity

    Keller, Chapter 5

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    Overview

    How do marketing activitiesalso product, pricing, and

    distribution strategiesbuild brand equity?

    How can marketers integrate these activities to enhancebrand awareness, improve brand image, draw positive brand

    responses, and increase brand resonance?

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    New Perspective on Marketing

    Changes: Economic Technology

    Politic Legal Sociocultural Competitive

    environments

    4 Major drivers of new

    economy: Digitization and

    connectivity Disintermediation and

    reintermediation Customization and

    customerization Industry convergence

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    Integrating Marketing Programs and

    Activities

    There are many different means by which products and

    services and their corresponding marketing programs can

    build brand equity.

    Creative and original thinking is necessary to create fresh

    new marketing programs that break through the noise in the

    market place to connect with customer.

    However creativity must not sacrifice a brand-building goal,and marketers must orchestrate programs to provide

    seamlessly integrated solutions and experiences for

    customers that create awareness, spur demand, and cultivate

    loyalty

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    Personalizing Marketing

    To adapt to the increased customer desire for personalization, marketers have

    embraced concepts such as experiential marketing, one-to-one marketing, and

    permission marketing.

    Experiential Marketing

    It promotes a product by

    not only communicating a

    products features and

    benefits but also

    connecting it with uniqueand interesting

    experiences.

    One-to-one Marketing

    Consumers help to add

    value by providing

    information to marketers;

    marketers add value, in

    turn, by taking thatinformation and

    generating rewarding

    experiences for

    consumers.

    Permission Marketing

    The practice of marketing

    to consumers only after

    gaining their express

    permission.

    Consumers appreciate

    receiving marketing

    messages they gave

    permission for.

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    Experiential Marketing

    Focuses on customer experiences

    Focuses on the consumption situation

    Views customers as rational and emotional elements

    Uses electric methods and tools

    There are 5 different types of experiences: Sense, Feel, Think,

    Act, and Relate. They are becoming increasingly vital toconsumersperceptions of brands.

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    One-to-one Marketing

    Based on several fundamental strategies:

    Focus on individual consumer through consumer database

    Respond to consumer dialogue via interactivity

    Customize products and services.

    Treat different consumers differently:

    Different needs

    Different current and future value to the firm

    Devote more marketing effort to most valuable consumers.

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    Permission Marketing

    Getting permission with inducement such as freesample, discount, sales promotion, contest, etc.

    Marketers might develop stronger relationships withconsumerdesire to receive further communicationrelationship can be develop if marketers respect consumers

    wishes and of consumers express a willingness to become

    more involved with the brand.

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    Permission Marketing

    5 steps to effective permission marketing:

    Offer the prospect an incentive to volunteer.

    Offer the interested prospect a curriculum over time, teaching

    the consumer about the product or service being marketed. Reinforce the incentive to guarantee that the prospect

    maintains his or her permission.

    Offer additional incentives to get more permission fromconsumers.

    Over time, leverage the permission to change the consumerbehavior toward profits.

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    New Marketing Approach

    Product Strategy

    Perceived Quality and Value

    Relationship Marketing

    Pricing Strategy

    Consumer price perception

    Setting price to build brand equity

    Channel (distribution) strategy

    Channel design

    Indirect channels

    Direct channels

    Web strategies

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    Product Strategy:

    Perceived Quality and Value

    Consumers formed their opinions about quality based on

    following dimensions: Performance, Features, Conformance

    Quality, Reliability, Durability, Serviceability, Style and

    Design.

    Brand intangibles: product quality depends not only on

    functional product performance, but on broader performance

    consideration (performance/process/relationship benefits).

    Value chain: by improving performance and reducing cost in

    value-creating activities, a firm can achieve competitive

    advantage.

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    Product Strategy:

    Relationship Marketing

    Based on premise that current customers are the key to long termbrand success.

    Mass Customization: technology helps producer to be able to make

    customized product for mass market, e. g. Dell Computers.

    Aftermarketing: Establishing and maintaining a consumerinformation file, buleprinting consumer contacts, analyzingcustomer feedbacks, conducting CS surveys, formulating andmanaging communication programs, hosting special customer

    events/programs, identifying and reclaiming lost customers.

    Loyalty programs: identifying, maintaining, and increasing the yieldfrom firms best customers through long term, interactive, valueadded relationships.

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    Pricing Strategy

    Consumer Price Perseptions

    How the consumers categorize the price of the brand (as low,

    medium, or high), and how firm or how flexible they thinkthe price is, based on how deeply or how frequently it is

    discounted. Consumer often rank brands according to price

    tiers in a category.

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    Pricing Strategy:

    Setting Prices to Build Brand Equity

    Value Pricing: to uncover the right blend of product quality,product costs, and product prices that fully satisfies theneeds and wants of consumers and the profit targets of thefirm.

    Strong brand can command price premiums, but strong brandscant command an excessive price premiums.

    Effective value pricing strategy should strike the proper balanceamong the following:

    product design and delivery,

    product costs,

    product prices.

    Everyday low pricing: avoids pattern of alternating priceincreases and decreases.

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    Channel Strategy

    Channel: sets of interdependent organizations involved in the

    process of making a product or service available for use of

    consumption.

    Channel strategy includes the design and management of

    intermediaries such as wholesalers, distributors, brokers, and

    retailers.

    Channel designs:

    Direct channel,

    Indirect channel,

    Web strategies

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    Channel Strategy:

    Indirect Channel

    Sell products through third-party intermediaries such as agents or brokerrepresentatives, wholesalers or distributors, and retailers or dealers.

    Push and pull strategies: providing incentive to retailers to stock andsell some products (push), or create such a demand from consumer

    that consumer requests retailers to sell the product (pull).

    Channelsupport: a number of different services provided by channelmembers can enhance the value to consumers of purchasing andconsuming a brand name product.

    Retailsegmentation: retailers are customers too, and they aresegmented due to different capabilities and needs. They need to betreated differently to get necessary brand support.

    Cooperativeadvertising: manufacturer pays for a portion of theadvertising that a retailer runs to promote manufacturersproduct andits availability in the retailers place of business.

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    Channel Strategy:

    Direct Channels & Web Strategies

    Direct Channels:

    Selling through personal contacts from the company to

    prospective customers by mail, phone, electronic means, in-person visits, and so forth.

    Company-owned stores: made to gain control over the sellingprocess and build stronger relationships with customers.

    Web Strategies:Using the advanced technology, many manufacturers can have

    an online retai