What are brands good for, Niraj dawar

WHAT ARE BRANDS

GOOD FOR

MIT Sloan Management ReviewNiraj Dawar.

“BRANDS ARE ANINDESPENSIBLEPART OF MODERNBUSINESS”

BECAUSE WHY GOD

WHY?

HOW ?

EFFECT ?

BRANDS BECAME

“THE INFORMATION REVOLUTION IS MAKINGCONSUMER DISAGGREGARTION VASTLY MOREEFFICIENT & PROFITABLE THAN AGGREGATION,THE TRADITIONAL SOURCE OF BRAND POWERR”

WHAT ARE BRANDS GOOD FOR?

TASKS CAN BE

PERFORMED BETTER

TASK BECOME LESS

EXPENSIVE

EFFECTS OF CONSUMER SEGMENTATION

MORE PROFITABLE

AT THE LEVEL OF

CONSUMER SEGMENTS

WHAT ARE BRANDS GOOD FOR IN ERA OF SEGMENTATION

1. CONSUMER RELATIONSHIP

RELATIONSHIPS ARISE WHEN A BRAND REPEATEDLY AND CONSISTENTLY FULFILLS ITS STATED PROMISE

but such connections are one way mass communication of benefits and association and these

tends to BESHALLOW

TWO WAY COMMUNICATION HAS BECOME A DEFINING FEATURE OF RELATIONSHIP

WHY?

HOW ??

COMPANIES WITH SEGMENTED MARKETING

STRATEGIC TASKS TACTICAL TASKS

BUILD RELATIONSHIP:EARNING TRUST AND CREDIBILITY

DRIVING TRIAL AND TRAFFIC AND INCREASE SALES VOLUME

COMMUNICATING KEY BENEFITS:STAKING A POSITION

BUILDING THE LIKELIHOOD OF REPURCHASE

CJHARGING PREMIUM PRICE RESPONDING TO COMPETITIVE MOVES

EACH BRAND BECOMES A TOOL IN TOOLBOX OF THE MARKETER WHOSE JOB IS TO MANAGE CONSUMER RELATIONSHIPS.

BRAND IS A TEAM PLAYER RATHER THAN INDUVIDUAL

2. CHANNEL RELATIONSHIP

REATAILING NOWADAYS IS NOT ABOUT COLLECTING RENT ON SHELF SPACE

RETAILER MUST ADOPT RELATIONSHIPBASED APPROACH TO MARKETING

RETAILERS EFFORTS TARGETS NOW

CRAETING STORE BRAND AWARENESS

BUILDING STORE LOYALTY

PROMOTING PROFITABLE PRIVATE LABLE PRODUCTS

RETAIL CHANNEL HAS BECOME A MAJOR FOCUS OF MANUFACTURER’S MARKETING EFFORTS

DISAGGREGATION PROVIDES MANUFACTURERS WITH A NEW MEDIUM TO INFLUENCE CONSUMER DECISIONS THAT IS INDEPENDENT OF RETAILER

DISAGGREGATION FAVOURS RETAILERS BY INCREASING THEIR CREDIBILITY IN ASSEMBLING AND ASSORTMENT OF BRANDS

BEFORE

AFTER

MANUFACTURERS REALIZE BRAND’S CHANCE OF SURVIVALWILL BE BETTER IF THEY BECOME PART OF RETAILER’S VALUE PROPOSITION TO CONSUMER SEGEMENT

3. BRAND MANAGEMENT ORGANIZATION

BRAND MANAGEMENT SYSTEMS ARE NOT WELL SUITED TO MAKE GOOD USE OF VALUABLE CONSUMER INFORMATION

WE NEED

SOME CHANGES NEEDED

SO CAN WE SAY BRANDS GOOD IN HERE?

INITIALLY BRANDS WERE AN EXCELLENT MEANSOF DEVELOPING AND COMMUNICATING A DIFFERENT VALUE PROPOSITION IN THE MARKET

NOW A MANUFACTURER’S BRAND MIGHT ASPIRE FOR THE ULTIMATE PRIZE:

A GOOD NEEDED RELATIONSHIP WITH CONSUMERS

CREDITS

THANK YOU >>>>

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