Designing and Implementing Brand Marketing Programs

Question 1

New Perspectives on Marketing

Accepted Answer

Changes in Marketing Strategies: Changes in the economic, technological, political-legal, sociocultural and competitive environments. > Rapid technological advancements > Greater customer empowerment > Fragmentation of traditional media > Interactive mobile marketing options > Channel transformation and disintermediation > Increased competition and industry convergence > Globalisation and growth of developing markets > Environmental community and social concerns > Severe economic recession

Question 2

The New Capabilities of the New Economy ... Consumers can...

Accepted Answer

Wield substantially more customer power Purchase a greater variety of available goods and services Obtain a great amount of information about practically anything More easily interact with marketers in placing and receiving orders Interact with other consumers and compare notes on products and services

Question 3

The New Capabilities of the New Economy ... companies can..

Accepted Answer

operate a powerful information and sales channel with augmented geographic reach to inform and promote their company and its products cocollect fuller and richer information about their markets, customers, prospects, and competitorsfacilitate two-way communication with their customers and prospects, and facilitate transaction efficiency & send ads, coupons, promotion, and information by e-mail to customers and prospects who give them permissioncustomize offerings and services to individual customers and improve purchasing, recruiting, training, internal and external communication

Question 4

Integrated marketing communications

Accepted Answer

Can be conceptualizes in terms of contacts → a contact is any information-bearing experience that a customer or prospect has with the brand, the product category, or the market that relates to the marketer´s product or service > friends and neighbors comments > packaging > newspapers and magazines > television information >retail customer service > in-store product placement The contacts do not stop with the purchase: type of customer service given with returns or inquiries, types of letters the company writes to resolve problems etc.→ These bits and pieces of information, experiences, and relationships, created over time, influence the potential relationship among the customer, the brand, and the marketer

Question 5

Personalizing Marketing

Accepted Answer

The expansion of the Internet and the fragmentation of the mass media brought the need for personalized marketing into sharp focus → Marketers have embraced the following concepts to adapt to the consumer desires 1. Experiential MArketing Experiential Marketing promotes the product by communicating a product’s features and benefits and connecting it with unique and interesting consumer experiences It can be defined as any form of customer-focused marketing activity, at various touchpoints, that creates a sensory-emotional connection to customers --> Types of marketing experiences > Sense marketing (sight sound touch) > feel marketing (feelings and emotions) >think marketing (cognitive, pronlem-solving experiences that encourage customers creativity) > Act marketing (physical behaviors, lifestyles nad interactions) > Relate marketing (individuals desires to be part of a social context) Experimental Marketing Variation in terms of strength and intensity: some are stronger or more intense than othersVariation in terms of valence: some are more positive than others; some experiences may Variation in terms of time: some are spontaneously and are shortlived; others are deliberately and last longer 2. Relationship Marketing >Relationship marketing encompasses all activities aimed at creating a stronger bond with the consumer and maximizing brand resonance>Relationship marketing attempts to provide a more holistic, personalized brand experience to create stronger consumer ties. It expands both the depth and the breadth of brand-building marketing programs>Benefits: acquiring new customers can cost five times as much as satisfying and retaining current customersa 5 percent reduction in customer defection rate can increase profits by 25-85 percent (depending on the industry) customer profit rate tends to increase over the life of retained customers>There are several concepts that can be helpful to regard to relationship marketing

Question 6

Concepts regarding relationship marketing

Accepted Answer

> Mass Customization > One- to one marketing > Permission Marketing

Question 7

relationship marketing: Mass customization

Accepted Answer

Mass customization is making products to fit the customer’s exact specificationDigitalization allows companies to offer customized products on a previously unheard scale· Customers can communicate their preferences directly to the manufacturer who by using advanced production methods can assemble the product for a price comparable to that of a non-customized item (consumers can distinguish themselves) · Not restricted to products: service organizations (e.g. banks) are developing customer-specific services and trying to improve the personal nature of their service experience · Limitations: not every product is easily customized and not every product demands customization; returns can be problematic · FOR EXAMPLE: Nike by you: Consumers can customize a shoe by selecting the size, width, and color scheme and affixing a personal ID to their creation & They can share it on social media using the hashtag #nikebyyou

Question 8

relationship marketing: One - to one marketing

Accepted Answer

Consumers help add value by providing information to marketers; marketers add value by taking that information and generating rewarding experiences for the consumerThe firm is then able to create switching costs, reduce transaction costs, and maximize utility for Fundamental strategies of one- to one marketing: 1. Focus on individual consumers through datavases 2. Respond to consumer dialogue via interactivity 3. Customize products and services --> Treating different consumers differently according to their different needs, and their different current and future value to the firm

Question 9

relationship marketing: Permission marketing

Accepted Answer

Permission Marketing is the practice of marketing to consumers only after gaining their express permission The idea is to no longer employ interruption marketing or mass media campaigns featuring magazines, direct mail, and television commercials, etc., but to deliver marketing messages to consumers for which they have given consent Marketers need to get customer’s permission though incentives (e.g. free samples, sales promotions or discounts) in order to attract his or her attention The goal is to develop stronger relationships with consumers so that they desire to receive further communications in the future

Question 10

Product Strategy

Accepted Answer

→ Product strategy entails that the product itself is the primary influence on what consumers experience with a brand, what they hear about it from others, and what the firm can tell customers about it 1. Designing and delivering a product or service that fully satisfies consumer needs and wants is a prerequisite for successful marketing (regardless of whether the product is a tangible good, service, or organization) 2. For brand loyalty to existing, consumers' experiences with the product must meet or surpass their expectations Perceived quality: costumers' perception of the overall quality or superiority of a product or service compared to alternatives and with respect to its intended purpose > Primary ingredients and supplementary features > Durability and servieability > product reliability > style and design -_> product quality also depends on speed, accuracy and care of product delivery and installation ...

Question 11

Aftermarketing

Accepted Answer

To achieve the desired brand image, product strategies should focus on purchase and consumptionMuch marketing activity is devoted to finding ways to encourage trial and repeat purchases by consumersThe strongest and potentially most favorable associations, however, result from actual product experienceToo little marketing attention is devoted to finding new ways for consumers to truly appreciate the advantages and capabilities of productsGrowing role of aftermarketing, i.e., those marketing activities that occur after customer purchase User manuals Customer service programs loyalty programs

Question 12

User manuals

Accepted Answer

User manuals are often an afterthought, characterized by overly technical terms and convoluted languageConsumers’ initial product experiences may be frustrating or even unsuccessfulConsumers often only get to know the basic functions, but they frequently do not get to know the advanced featuresMarketers must develop user manuals that are easily comprehensible and describe what the service or product can do for consumers and how they can realize these benefits

Question 13

Customer Service Programs

Accepted Answer

After marketing describes a necessary new mindset that reminds businesses of the importance of building a lasting relationship with customers and enhances the need to balance the allocation of marketing funds between conquest activities (e.g. advertising) and retention activities (e.g. customer communication programs)>Creating stronger ties with consumers via a well-designed customer service department>Complementary products that help make up a system or enhance the value of the core product in another>Customer Service Programs can be a determinant of profitability

Question 14

Loyalty programs

Accepted Answer

Loyalty programs: four central aspects: 1) Know you audience 2) Engage people 3) Chance is good 4) listen to your best customers

Question 15

Pricing strategy

Accepted Answer

Consumers rank brands according to price tiers in a category > Price bands: range of acceptable prices that indicate the flexibility and breadth marketers can adopt in their brands within a tier > Value-based pricing strategies: Attempting to sell the right product at the right price to better meet consumer wishes

Question 16

Setting Prices to Build Brand Equity

Accepted Answer

Choosing a pricing strategy to build brand equity means determining a method for setting current prices and a policy for choosing the depth and duration of promotions and discountFactors related to the costs of making and selling products and the relative prices of competitive products are important determinants in pricing strategyFirms are placing greater importance on consumer perceptions and preferences when setting pricesValue Pricing

Question 17

Channel Strategy

Accepted Answer

Marketing channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumptionDirect channels:selling through personal contacts from the company to prospective customers (e.g. via mail, phone, etc.)indirect channels: selling through third-party intermediaries (e.g. agents or broker representatives, wholesalers or distributors, and retailers or dealers)Key factors: Information, entertainment, experiencesMost firms choose a hybrid channel design with the goal of maximizing channel coverage and effectiveness while minimizing channel cost and conflict

Question 18

indirect Channels

Accepted Answer

> may be preferable when: broad assortment is essential, availability is critical or after sales services is important > consumers may have associations to any one retailer based on product assortment, pricing and credit policy and quality of service etc. > Retailers strive to create their own brand equity by establishing awareness and strong, favorable and unique associations > They can have profound influence on the equity of the brands they sell in terms of brand-related services > Interplay between a store's image and the brand images of the products it sells is crucial

Question 19

indirect Channels: push and oull strategies

Accepted Answer

Shopper Marketing: emphasizes collaboration between manufacturers and retailers on in-store marketing like brand-building displays, sampling promotions, and other in-store activities designed to capitalize on a retailer´s capabilities and its customersConflicts between retailers and manufacturersGreater competition for shelf-space Retailers have gained power and are now in a better position to set the terms for trade with the manufacturersRetailers can command more frequent and lucrative trade promotions Pull : Devote marketing efforts to the end consumer: Push: devote selling efforts to the channel members: manufacturer attempts to reach the consumer by "pushing" the product through each step of the distribution chain

Question 20

Channel Support: Retail Segmentation

Accepted Answer

Cannel members should be thought of as valuable customers whose image and actions can hurt or enhance brand equity Retailers may be needed to be divided into segments or even treated individually because of their different marketing capabilities and needs Different retailers may need different product mixes, special delivery systems, customized promotions, or even their own branded version of the products

Question 21

Channel Support – Cooperative Advertising

Accepted Answer

With cooperative advertising, a manufacturer pays for a portion of the advertising that a retailer runs to promote the manufacturer´s product and its availability in the retailer’s place of business→ Concentration of some of the communication efforts at a local level

Question 22

Direct Channels may be preferable when … Types if direct channel

Accepted Answer

Product information needs are high Product customization is highProduct quality insurance is important Purchase lot size is importantLogistics are important Types of direct channel: Company-owned storesStore-Within-a-Store Other Means

Question 23

Direct Channels - Company-Owned Stores

Accepted Answer

Some manufacturers introduce their own retails outlets and sell their product directly to customers through various meansGoal: gaining control over the selling process and building stronger relationships with customersAdvantages:Showcase the brand and its product varieties in a manner not easily achieved through normal retail channelsTest market to gauge consumer response to alternative product designs, presentations, and pricesDisadvantages Some companies lack the skills, resources, or contacts to operate effectively as a retailer Potential conflict with existing retail channels and distributors

Question 24

Direct Channels – Store-Within-A-Store

Accepted Answer

>create their own stores in major department stores > can offer dual benefits of appeasing retailers while allowing the firm to retain control over the disgn and implementation of the product presentation at the point of purchase > can take hold through leasing arrangements or less formal arrangements > For retailers, these arrangements help drive foot traffic and acquire new capabilities quickly > The goal in all these situations is to find "win-win" solutions that benefit channel partners and consumers alike

Question 25

How do direct channels contribute to brand equity?

Accepted Answer

1) Increase consumer awareness of the range of products associated with a brand 2) Increase consumer understanding of the key benefits of the product 3) Establish a relationship with consumers

Marketing (Subject) / Designing and Implementing Brand Marketing Programs (Lesson)