Designing Marketing Programs to Build Brand Equity
Leroy J. Ebert DipM, MCIM, MSLIM,
Chartered Marketer
Content Extracted from “Strategic Brand Management” 3rd Edition
Authors:
Kevin Lane Keller
M.G. Parameswaran
Issac Jacob
Presentation developed from SLIM Diploma In Brand Management Students
Presentation developed by Leroy J. Ebert (19th April, 2014)
W.H.Bender Quote 61 -Influential restaurant and food service industry network...
Designing marketing programmes to build brand equity by Leroy J. Ebert
1. Designing Marketing Programs
to Build Brand Equity
Leroy J. Ebert DipM, MCIM, MSLIM,
Chartered Marketer
Diploma in Brand Management – “Strategic Brand Management – Sri Lanka Institute of Marketing
2. Drivers of the new economy are
Digitization and connectivity
Disintermediation and reintermediation
Customization & customerization
Industry convergence
These drivers have given consumers and companies
new capabilities pg. 185 fig 5.1
New Perspectives on Marketing
6. Promoting a product by not only communicating a product’s
features and benefits but also connecting it with unique and
interesting experiences
Establishes brand imagery and helps to build brand communities
West Jet
Experiential Marketing
7. Focus on individual consumers through customer
databases
Respond to consumer dialogue via interactivity
Customize products and services
One to one marketing
9. Relationship marketing – attempts to provide a more
holistic personalized brand experience to build
stronger consumer ties
Benefits of RM
Loyalty programs i.e. tesco’s
CLV
Relationship Marketing
10. The heart of a great brand is invariably a great
product
You can sustain a brand if the product doesn’t fully
satisfy the customer
Product Strategy
11. Perception of the over all quality or superiority of a
product or service compared to alternatives
Sustaining perceived quality with customers is getting
tougher, customers expectations rises and
competitors are more fierce than ever
Perceived quality
12. Performance : level of primary characteristics of the
product
Features : Secondary elements that complement the
primary characteristics
Conformance quality
Reliability: stands the test of time
Serviceability
Style and design
Dimensions of perceived quality
13. Speed, accuracy, care of product delivery and
installation, promptness, courtesy, customer service
training and quality of repair service.
Mc Kinsey’s 3D marketing
• Functional benefits: quality, value, price
• Process benefits: product replenishment, access to info
• Relationship benefits: differentiated loyalty rewards,
communication
Brand intangibles
16. 2nd moment of truth
Innovative design, thorough testing, quality
production, effective communication
i.e. simple product catalogs,
Managing customer feedback and making changes
very quickly i.e. software industry
After Marketing
17. Price is the one revenue generating element in the
traditional marketing mix and pricing strategies are
amongst the most important brand equity benefits of
building a brand
The pricing strategy can dictate how consumers
categorize the price of the brand (as low, medium,
high) and how firm or flexible they think the price is
based on how frequent it is discounted
Pricing Strategies
18. There is a relationship between price and quality fig
5.5 pg 200
Some companies sell multiple brands in multiple
pricing categories in order to better compete in
multiple categories fig 5.6 pg 201
Value based pricing strategies – adaptation, if
tangible and intangible benefits are high then sell it at
a high price
Pricing strategy
20. Its very crucial, get it wrong you are screwed for
many reasons.
Repositioning a mass market brand to be a premier is
next to impossible
Mess up the pricing, you lose revenue and customer
might not accept the revised price
Pricing strategy
21. Cost + pricing
Premium
Skimming
Introductory
Value based
Penetration – lean and mean
Predatory
Psychological
Promotional pricing – at events or even bundled offers
Sachet pricing
Pricing strategy
22. What is the easiest way to arrive at the most suitable price
Brand awareness of the customer and by his network helps
customers arrive at a price
If you can’t increase the price reduce the qty, quality
Product prices
23. Marketing Channels –sets of interdependent
organizations involved in the process of making a
product or service available for the use or
consumption
Channel strategy – Includes the design and
management of intermediaries such as wholesalers,
distributors, retailers etc.
Channel Strategy
24. Direct channels – direct to customers
Indirect channels – using 3rd party intermediaries such
as distributors, retailers, agents etc.
Winning channel strategies will be those that can
develop an integrated shopping experience
combining, physical stores, catalogs, internet and
telephone. See nike i.e. on page 211 and 212.
Channel Design
25. This is applicable when
Product info needs are high
Product customization is high
Product quality assurance is important
Purchase lot size is important
Logistics are important
Direct channel for B2b
26. A broad assortment of channels are essential
Product availability is critical (intense distribution)
After sales service is important i.e. titan watches
Indirect channel is needed
27. Retailers
Comes in contact with the customer more than the
brand owner
Affects the brands service standard i.e. adidas full
technology shoes are sold only at adidas retail outlets
Retailers image reflects on the brands equity i.e. this
retailer sells only high quality products
Indirect channels
28. VM, availability enhance or reduce brand equity
Brand owners have to take an active role in helping
retailers to add value to their brand
Increasing power of retailers due to multiple
undifferentiated brand and ltd shelf space
Retailer request incentives to stock new brands,
extended credit, special promo’s
Push and Pull Strategies
29. Pull strategy – focusing all marketing efforts towards the
end customer
Push strategy -
PUSH & PULL
30. Retailers are customers too
Because of their different marketing capabilities and
needs, retailers may need to be divided into
segments or even treated individually so the will
provide the necessary brand support
This can be achieved through branded variants
Retail Segmentation
31. The manufacturer pumps in money to the retailer in
order to support the local marketing initiatives
The funds allocated is percentage of sales
Retailers can localize the marketing to be more
appealing to the target audience
Controllability is an issue when marketing is managed
by retailers. They tend to be biased towards
themselves and not the brand.
Co-operative Advertising
32. Company owned stores
Shop in Shop
Direct selling, through phone, catalogs,
Web strategies
Direct Channels
33. Private labels/own label/store brands
Private labels should not be confused with generics
Private Labels
5 GBP1.5 GBP
34. Better margins for retailer
Improved retailer brand penetration
Improved quality and design
Brand manufacturers manufacture private labels
Private label sales have increased
Price conscious customers prefer own labels
Private labels
35. Content Extracted from “Strategic Brand Management” 3rd Edition
Authors:
Kevin Lane Keller
M.G. Parameswaran
Issac Jacob
Presentation developed from SLIM Diploma In Brand Management
Students
Presentation developed by Leroy J. Ebert (19th April, 2014)