CHAP 5: DESIGNING MARKETING PROGRAMS TO BUILD BRAND EQUITY

Members in the New day’s group:1. Trần Huệ Linh2. Nguyễn Ngọc Phát3. Phan Thế Bảo

1. Have you had any experience with a brand that has done a great job with relationship marketing,

permission marketing, experiential marketing, or one-to-one marketing? What did the brand do? Why was it

effective? Could others learn from that?

Relationship marketing attempts to provide a more holistic, personalized brand experience to create stronger

consumer ties

Relationship Marketing 

- The car’s smell helps them entice customers.

- Scents can retain customers longer.

- Scents that are appropriate or consistent with a product can influence brand evaluations and judgments.

In business, the aroma can be a positive impact to the customers and retain the customers longer

The practice of marketing to consumers only after gaining their express

permission.

Permission Marketing 

Online retailer Amazon uses database software to track its customers’ purchase habits and send them personalized marketing messages.

Customers can receive more detailed information after each purchase. Amazon also sends periodic e-mails to customers informing them of new products, special offers, and sales.

Marketers must recognize that consumers may need to be given guidance and assistance in forming and conveying their preferences.

“Experiential marketing: promotes a product by communicating a product’s features and benefits and connecting it with unique and interesting consumer experiences.” (Pine and Gilmore)

“Experiential marketing is usually broadly defined as any form of customer-focused marketing activity, at various touch points, that creates a sensory-emotional connection to customers.” (Bernd Schmitt)

Experiential Marketing 

Sense marketing

Feel marketing

Think marketing

Art marketing

Relate marketing

- Victoria’s Secret has been praised for its success in creating an experiential brand.- Every year Victoria's Secret are upgrade instruction, the idea of staging of performances, as well as contributing to the project called on the community to protect the environment We have to know how the event organize as well as the choice of representative images to be able to attract customers

One-to-one Marketing - Consumers help add

value by providing information to

marketers.- Marketers add value by taking that information

and generating rewarding experiences

for consumers.

- Create the Club- card program

- Members receive a variety of purchase

benefits across a wide range of products and

services beyond what is sold in their stores.

We offer targeted promotions, and improve

marketing efficiency in our company

2. THINK ABOUT THE PRODUCTS YOU OWN. ACCESS THEIR PRODUCT DESIGN. CRITIQUE THEIR AFTER MARKETING EFFORTS. ARE YOU AWARE OF ALL THE PRODUCTS’ CAPABILITIES? IDENTIFY A PRODUCT WHOSE BENEFITS YOU FEEL YOU ARE NOT FULLY CAPITALIZING ON. HOW MIGHT YOU SUGGEST IMPROVEMENTS?

THE #KYLIECOSMETICS LIP KIT -  The packaging is

instantly recognizable.- Lip Kit boxes and Lip Kit

tubes feature a cool design with lips full of lipstick

. Any products delivered from Kylie Cosmetics are shipped in black and white cardboard boxes with dripping black lip gloss, and they’ve become a fan favorite.

CRITIQUE THEIR AFTER MARKETING EFFORTS

Base on the Kardashian ’s family - famous for the reality TV show “ Keeping up with Kardashian ”

CRITIQUE THEIR AFTER MARKETING EFFORTS

She uses SNAPCHAT( a very trendy app) to promote her products

With her surgery lips, gaining a lot of scandalous but she’s setting a new trend on make-up look

IDENTIFY A PRODUCT WHOSE BENEFITS YOU FEEL YOU ARE NOT FULLY CAPITALIZING ON. HOW MIGHT YOU SUGGEST IMPROVEMENTS?

The biggest complaint is that liquid lipsticks are drying.

Next, is that they flake, the lines crack, and they make your lips look brittle.

They should make a lipstick more moisturizer

3. CHOOSE A PRODUCT CATEGORY. PROFILE ALL THE BRANDS IN THE CATEGORY IN TERMS OF PRICING STRATEGIES AND PERCEIVED VALUE. IF POSSIBLE, REVIEW THE BRAND’S PRICING HISTORIES. HAVE THESE BRAND SET AND ADJUSTED PRICES PROPERLY? WHAT WOULD YOU DO DIFFERENTLY ?

Attempting to sell the right product at the right price-to

better meet consumer wishes

Value-based pricing strategies

• Levis• Calvin Klein• Gap

Jeans

Gap C&K Levis0

20

40

60

80

100

120

GapC&KLevis

Quality

Excellent

Very good

GOOD

FAIT

Price Tiers in the Jeans market

Brand image

Brand loyalty

Monopoly power =Price

premiums

Up-to-date European

product design (low-rise)= penetration

pricing

Advertise jeans as “ designer” =

competition-baseb price

Celebrity endorsemen

t=Skimming

Pricing

GAP

Price segmentati

on

Everyday-low-

pricing

Creativity

4. Visit a department store and evaluate the in-store marketing effort. Which categories or brands seem to be

receiving the biggest in-store push? What unique in-store merchandising efforts do you see?

Sales promotion at a retailer’s location. Bundled offers, expect advice and special discounts. Product demonstrations, product samples. Synonym: in-store promotion.

What is in-store marketing?

DEPARTMENT STORE: DIAMOND PLAZA

Promotions. Specialized staff. Product information. Sampling. Trials. Video displays. Decoration displays.

5. Take a trip to a supermarket and observe the extent of private-label brands. In which categories do you think

private labels might be successful? Why?

Private label = smart choice, quality ensured, competitive price and diversified offer.

Only sold in Big C stores. Currently 500 items. 9 private labels: Big C, Lohas, Ebon, Casino, BF, Huong Vi,

Wow!, GDD, Club Des Sommeliers.