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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

Designing marketing programmes to build brand equity by Leroy J. Ebert

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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)

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Page 1: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 2: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 3: Designing marketing programmes to build brand equity by Leroy J. Ebert
Page 4: Designing marketing programmes to build brand equity by Leroy J. Ebert

Integrating marketing programs and activities

Product

Pricing

Advertising

Sales promotion

Personal selling

Page 5: Designing marketing programmes to build brand equity by Leroy J. Ebert

Promotes loyalty and attitudinal attachment

Personalizing marketing

Page 6: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 7: Designing marketing programmes to build brand equity by Leroy J. Ebert

Focus on individual consumers through customer databases

Respond to consumer dialogue via interactivity

Customize products and services

One to one marketing

Page 8: Designing marketing programmes to build brand equity by Leroy J. Ebert

Permission marketing

Page 9: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 10: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 11: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 12: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 13: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 14: Designing marketing programmes to build brand equity by Leroy J. Ebert

Value Chain

Page 16: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 17: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 18: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 19: Designing marketing programmes to build brand equity by Leroy J. Ebert

Hameedia brand portfolio

Price

High

High Low Fashion and design

Page 20: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 21: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 22: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 23: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 24: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 25: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 26: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 27: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 28: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 29: Designing marketing programmes to build brand equity by Leroy J. Ebert

Pull strategy – focusing all marketing efforts towards the end customer

Push strategy -

PUSH & PULL

Page 30: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 31: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 32: Designing marketing programmes to build brand equity by Leroy J. Ebert

Company owned stores

Shop in Shop

Direct selling, through phone, catalogs,

Web strategies

Direct Channels

Page 33: Designing marketing programmes to build brand equity by Leroy J. Ebert

Private labels/own label/store brands

Private labels should not be confused with generics

Private Labels

5 GBP 1.5 GBP

Page 34: Designing marketing programmes to build brand equity by Leroy J. Ebert

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

Page 35: Designing marketing programmes to build brand equity by Leroy J. Ebert

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)