Designing Marketing Programs To Build Brand Equity
Designing Marketing Programs To Build Brand Equity
Designing Marketing Programs To Build Brand Equity
DESIGNING MARKETING
PROGRAMS TO BUILD BRAND
EQUITY
PART I-Developing a Brand Strategy
Chapter 2 Customer-based Brand Equity and Brand Positioning
Chapter 3 Brand Resonance and the Brand Value Chain
The company is active in its local community and known for its
passionate employees, who are allowed to do volunteer work on
company time.
Personalizing marketing
• The rapid expansion of the Internet and continued
fragmentation of mass media have brought the need for
personalized marketing into sharp focus.
https://www.youtube.com/watch?v=IQovoot_ZUM
Coke-Zero
Experiential marketing
“Experiential marketing is usually broadly defined as any form
of customer-focused marketing activity, at various touchpoints,
that creates a sensory-emotional connection to customers.”
https://www.youtube.com/watch?v=MOZ47F_l5P8
❖ When Rolls-Royce customers complained in the 1990s that the
new cars weren’t as good as the old models, researchers tracked
the problem to a surprising source: the car’s smell. The company
then recreated the aroma of a 1965 Rolls and now sprays it in all
the new models.
❖ Las Vegas casinos have long infused scents into gaming areas to
encourage gamblers to stay a little longer.
❖ Victoria’s Secret has long used vanilla scents in its stores, but
now retailers like the Samsung Experience concept store are
starting to get in on the action as a way to distinguish themselves
from competitors.
• The customer profit rate tends to increase over the life of the
retained customer.
SOUTH WEST AIRLINE
➢ $179,310,000(Annual Profit)
➢ 624,476(Total Flight flown)
➢ $287 Profit Per flight
➢ $58 Average one way fare
➢ 5 Customers per flight
After-marketing
• To achieve the desired brand image: Product strategies should
focus on both purchase and consumption.
• The consumer who figure out the basic functions, may not
able to learn and appreciate its advance features which is
unique to the brand.
Aftermarketing
Customer service programs –
• After-marketing is more than the design and communication of
product instructions.
https://www.youtube.com/watch?v=2sCeMTB5P6U
Mexican Ad
Setting Prices to Build Brand Equity
Value pricing
• Objective is to uncover the right blend of product design &
delivery, product costs, and product prices that fully satisfies
the needs and wants of consumers and the profit targets of
the firm.
https://www.youtube.com/watch?v=1pqq-kY2txo
Setting Prices to Build Brand Equity
Product Design & Delivery
❖ Consumers are willing to pay premiums when they perceived
added value in products and services.
Product Price
How much value consumers perceive in the brand and thus to
what extent they will pay the premium over product costs.
Setting Prices to Build Brand Equity
Price segmentation
Sets and adjusts prices for appropriate market segments.
Because of wide adoption of the Internet, firms are increasingly
employing yield management principles or dynamic pricing to
vary their prices for different market segments according to their
different demand and value perceptions.
Channel Design
Indirect Channels
Direct Channels
Online Strategies
Channel Strategy
Channel design
• Classified into direct and indirect channels.
• Direct channels sell through personal contacts from the company to
prospective customers by mail, phone, electronic means, and in-
person visits.
https://www.youtube.com/watch?v=z1APG3HjO4Q
Channel Strategy
• Benefits:
• They are a means to showcase the brand and all its
different product varieties in a manner not easily achieved
through normal retail channels.
• Disadvantages:
• Some companies lack the skills, resources, or contacts to
operate effectively as a retailer.