SMOT-BM-SES04-17Jul2010

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Session 4 of 817 July 2010Brand Marketing Implementation : 

Session 4 of 817 July 2010Brand Marketing Implementation

Today’s Agenda… : 

Today’s Agenda… First Session – Discussion Marketing to Build B/E Second Session – Discussion Integrating MarCom into B/E Case Presentations: Groups 1 - 4 Secondary Brand Knowledge for B/E Administrative Details Submission of Brand Audit Proposals Case Allocation for Next Session

DiscussionMarketing for Brand Equity : 

DiscussionMarketing for Brand Equity

Marketing Drivers for Brand Equity : 

Marketing Drivers for Brand Equity

Key Questions : 

Key Questions How do marketing activities & the 4Ps build brand equity? How can marketers integrate these activities to… Enhance Brand Awareness Improve the Brand Image Elicit Positive Brand Responses Increase Brand Resonance

New Perspectives on Marketing : 

New Perspectives on Marketing Firms dealing with major shifts in external environments: Digitalization and connectivity Through Internet, intranet, and mobile devices Disintermediation and Re-intermediation Via new middlemen of various sorts Customization and ‘Customerization’ Through tailored products Ingredients provided to customers to make / configure products themselves Industry convergence Through the blurring of industry boundaries Marketing Strategies & Tactics Needed to change dramatically

Implications for Brand Management : 

Implications for Brand Management Marketers are abandoning Mass Market strategies Which built Brand Powerhouses in the 1950s, 1960s, and 1970s Implementing new approaches Even ‘traditional industries’ are rethinking their practices No Longer ‘Business As Usual’ Creative & Original thinking is necessary Create Fresh & New marketing programs Must Break Through Marketplace Noise & connect with customers. Marketers trying Unconventional Means to build Brand Equity

Need for Personalizing Marketing : 

Need for Personalizing Marketing Approaches – create Stronger/Favorable brand associations Relationship Marketing – A powerful brand-building force: Can slip through Consumer Radar May creatively create Unique Associations May reinforce Brand Imagery and Feelings Nevertheless… Still a need for Control & Predictability of ‘Routine’ Mktg activities Brand Equity Models provide Direction/Focus to Marketing

Key Approaches to Personalizing Marketing : 

Key Approaches to Personalizing Marketing Experiential marketing One-to-One marketing Permission marketing Effective means of getting consumers more actively involved with a brand

Experential Marketing : 

Experential Marketing Focuses on Customer Experience Focuses on the Consumption Situation Views Customers as Rational and Emotional Elements Uses Electronic Methods and Tools

One-to-One Marketing : 

One-to-One Marketing Competitive Rationale Consumers help to add value by providing information. Firm adds value – Generate Rewarding Experiences for consumers Creates Switching Costs for consumers Reduces Transaction Costs for consumers Maximizes Utility for consumers Treat different consumers differently Different Needs Different Values to firm Current vs. Future (lifetime value) Devote more marketing effort on Most Valuable Customers

One-to-One Marketing: Five Key Steps : 

One-to-One Marketing: Five Key Steps Identify consumers, Individually and Addressably Differentiate them by Value and Needs Interact with them more Cost-Efficiently and Effectively Customize some aspect of the firm’s behavior Brand the relationship

Permission Marketing (Seth Godin) : 

Permission Marketing (Seth Godin) Encourage consumers to join L/T Interactive Mktg Campaign Rewards for paying attention to increasingly relevant messages Getting the recipient's Buy-in Before Proceeding with further messages In successive stage of this relationship – Enticed to reveal More and More Used by the provider to Fine-tune and Optimize service or product offerings Keywords Anticipated Personal Relevant Permission marketing contrasted to Interruption Marketing Advertising and Promotion messages are Unanticipated Keywords Impersonal Largely Irrelevant

Five Steps in Permission Marketing : 

Five Steps in Permission Marketing Offer the prospect an Incentive to volunteer. Offer the interested prospect a Curriculum over time Teaching consumers about the product. Reinforce Incentive to guarantee the prospect’s presence Maintain the permission. Offer Additional Incentives Get more permission from the consumer. Over time, Leverage the permission Change consumer behavior toward profits.

Marketing for Brand Equity Videos : 

Marketing for Brand Equity Videos Hyundai Experiential Marketing Drive-In Event Hyundai Experiential Marketing-Challenge-Event Nokia N78 experiential marketing campaign Ovi Connectors & Nokia - Experiential Marketing Market America Partner Stores One-to-One Remington One-to-One multi-touch marketing Seth Godin on Email Marketing, Social Media and more Permission-based Email Marketing in Action-RockGarden Expedia CruiseShipCenters - Permission Marketing

4-Ps Support for Brand Equity : 

4-Ps Support for Brand Equity

Integrating Brand w/ Supporting Marketing Mix : 

Integrating Brand w/ Supporting Marketing Mix Key Objectives – Marketing Mix Must… Enhance Awareness Establish Desired Brand Image Principal elements of Marketing Mix – 4Ps Product Strategy Pricing Strategy Place (Channel) Strategy Promotion (Push vs. Pull) Strategy

Product Strategy : 

Product Strategy Perceived quality and value Brand intangibles Total Quality Management and Return on Quality Value chain Relationship marketing Mass customization ‘Aftermarketing’ Loyalty programs

Pricing Strategy : 

Pricing Strategy Premium Pricing Most important Brand Equity benefits of building a strong brand. Consumer price perceptions Consumers Rank Brands according to Price Tiers in a category. Setting prices to build brand equity Value pricing Everyday low pricing

Place (Channel) Strategy : 

Place (Channel) Strategy Rationale Can have a profound impact on the resulting Brand Equity Also impacts the ultimate sales success of a brand. Channel strategy Includes the design and management of Intermediaries Wholesalers, Distributors, Brokers, & Retailers

Channel Design : 

Channel Design Direct channels Selling through personal contacts – B2C By Mail, Phone, Electronic Means, In-person Visits, etc. Indirect channels Selling through third-party intermediaries – B2B E.g. Agents / Broker Reps, Wholesalers / Distributors, Retailers / Dealers Web Strategies

Channel Support / Partnerships : 

Channel Support / Partnerships Retail Segmentation   Retailers are “Customers” too Cooperative advertising   Manufacturer pays for a portion of the advertising @ Retailer Promote manufacturer’s product and its availability in the retailer’s outlet(s)

Web Strategies – ‘Brick & Click’ : 

Web Strategies – ‘Brick & Click’ What It Is… Physical “Brick and Mortar” channel Also a Virtual / Online retail channel BCG Study Findings Multichannel retailers were able to acquire customers at Half The Cost of Internet-only retailers

Promotion – Push vs. Pull Strategies : 

Promotion – Push vs. Pull Strategies Pull Strategies Focus Brand-building & Selling efforts on End-Customers Create Demand and Want/Need in the End-Customers Push Strategies Focus Brand-building & Selling efforts on Channel Partners Providing Direct Incentives for them to Stock And Sell Products To the End-Consumer

Thank You : 

Thank You Questions???

Slide 27: 

Proprietary & Confidential © Sai Business Consultants

DiscussionIntegrating MarCom Into B/E : 

DiscussionIntegrating MarCom Into B/E

MarCom Building Blocks : 

MarCom Building Blocks

New Media Environment : 

New Media Environment Traditional Media (TV, Radio, Print, etc.) are Losing Ground No longer have such a tight grip on Customers Down – But Not Out Marketing Spend $45B in 2010 – CAGR of 20% Traditional TV Advertising remains flat Test of MarCom Effectiveness Current Brand Knowledge Desired Brand Knowledge

Information Processing Model of Communications : 

Information Processing Model of Communications Exposure Attention Comprehension Yielding Intentions Behavior

MarCom Options : 

MarCom Options Advertising Promotions Event marketing and sponsorship Public relations and publicity Personal selling

Advertising : 

Advertising A Powerful means to improve Brand Equity Create Strong, Favorable, and Unique Brand Associations Elicit positive judgments and feelings Controversial Specific effects are often difficult to quantify and predict Nevertheless, Still very Valid Verified by Many studies using very Different Approaches Have shown the potential power of advertising on brand sales

‘Ideal’ Ad Campaign : 

‘Ideal’ Ad Campaign Getting it RIGHT Right Consumer  Right Message  Right Place  Right Time. Creative Strategy Causes the consumer to Notice and Attend to the Ad Does not Distract from the Intended Message. The Ad Properly reflects the Consumer’s level of understanding About the product and the brand. Correctly positions the brand Focuses on desirable and deliverable POPs & PODs. Motivates consumers to consider purchase of the brand. Creates strong brand associations to ALL stored Messages Can have an effect when consumers are Buying

Categories of Advertising : 

Categories of Advertising Television Radio Print Direct response Interactive: websites, online ads Mobile marketing Place advertising: Billboards; Movies; Airlines & Lounges; Product Placement; Point-of-Purchase Advertising

Promotions : 

Promotions Short-term incentives Encourage trial or usage of a product or service Marketers target promotions at Trade &/or Consumers Consumer promotions Designed to change Choices, Quantity, or Timing of consumers’ product purchases. Trade promotions Financial Incentives or Discounts given to retailers, distributors, etc. To Stock, Display, and in other ways Facilitate The Sale Of A Product.

Event Marketing & Sponsorships : 

Event Marketing & Sponsorships Public sponsorship of events or activities Related to sports, art, entertainment, or social causes. Provides marketers different kinds of communication options Become part of a special / personal moment in consumers’ lives Sponsors can broaden and deepen their relationship with their target market

Personal Selling : 

Personal Selling Face-to-Face interaction With one/more prospective purchasers to Sell The keys to better selling Rethink training Get everyone involved Inspire from the top Change the motivation Forge electronic links Talk to your customers

IMC for Building Brand Equity : 

IMC for Building Brand Equity

Integrated Marketing Communications (IMC) : 

Integrated Marketing Communications (IMC) The “Voice” of the brand Establish A Dialogue and Build Relationships with consumers Allows marketers to… Inform, Persuade, Provide Incentives,… Also remind consumers Directly or Indirectly Can contribute to Brand Equity Establishes brand in memory Links strong, favorable, and unique associations to it

Developing IMC Options – Mix ‘n Match : 

Developing IMC Options – Mix ‘n Match Evaluate all possible communication options available Create knowledge structures according to: Effectiveness Criteria, as well as, Cost Considerations. Each communication option… Has Different Strengths Can Accomplish Different Objectives. Determine the Optimal Mix

Evaluating IMC Programs : 

Evaluating IMC Programs Coverage: What % target audience is reached by each communication option? How much overlap exists among options? Cost: What is the per capita expense? Contribution: The collective effect on brand equity in terms of Enhance Depth and Breadth of Awareness Improve Strength, Favorability & Uniqueness of brand associations Commonality: Extent to which info conveyed by different options share meaning

Evaluating IMC Programs : 

Evaluating IMC Programs Complementarity: Extent to which different associations and linkages are emphasized Across communication options Versatility: Extent to which info contained in one option works with different types of consumers Different communications history Different market segments

MarCom Guidelines : 

MarCom Guidelines Be analytical: Use Consumer Behavior & Managerial Decision-making frameworks Develop well-reasoned communication programs Be curious: Fully understand consumers By using all forms of research Constantly be thinking about how you can create added value for consumers Be single-minded: Focus message on well-defined target markets (Less Can Be More) Be integrative: Reinforce your message through consistency and cuing across all communications

MarCom Guidelines : 

MarCom Guidelines Be creative: State your message in a Unique Fashion Use Alternative Promotions and Media Create favorable, strong, and unique brand associations Be observant: Monitor competition, customers, channel members, & employees Through tracking studies Be realistic: Understand the complexities involved in marketing communications Be patient: Take a long-term view of communication effectiveness Build and manage brand equity

Case Presentations : 

Case Presentations Groups 1-4

DiscussionSecondary Brand Knowledge for Brand Equity : 

DiscussionSecondary Brand Knowledge for Brand Equity

Secondary Associations : 

Secondary Associations

Slide 51: 

Building Customer-Based Brand Equity

Leveraging Secondary Associations : 

Leveraging Secondary Associations Creation of new brand associations Effects on existing brand knowledge Awareness and knowledge of the entity Meaningfulness of the knowledge of the entity Transferability of the knowledge of the entity

Leveraging Secondary Associations : 

Leveraging Secondary Associations Brand associations may themselves be linked to other entities, creating secondary associations: Company (through branding strategies) Country of origin (through identification of product origin) Channels of distribution (through channels strategy) Other brands (through co-branding) Special case of co-branding is ingredient branding Characters (through licensing) Celebrity spokesperson (through endorsement advertising) Events (through sponsorship) Other third-party sources (through awards and reviews)

Leveraging Secondary Associations : 

Leveraging Secondary Associations These secondary associations may lead to a transfer of: Response-type associations Judgments (especially credibility) Feelings Meaning-type associations Product or service performance Product or service imagery

Co-Branding : 

Co-Branding Occurs when two or more existing brands are combined into a joint product or are marketed together in some fashion Examples: Sony Ericsson ICICI Prudential Life Maruti Suzuki

Co-Branding : 

Co-Branding Advantages Borrow needed expertise Leverage equity you don’t have Reduce cost of product introduction Expand brand meaning into related categories Broaden meaning Increase access points Source of additional revenue Disadvantages Loss of control Risk of brand equity dilution Negative feedback effects Lack of brand focus and clarity Organizational distractions

Ingredient Branding : 

Ingredient Branding A special case of co-branding Involves creating brand equity for materials, components, or parts that are necessarily contained within other branded products Examples: Betty Crocker baking mixes with Hershey’s chocolate syrup Intel inside

Licensing : 

Licensing Involves contractual arrangements Firms can use the names, logos, characters, etc. of other brands For some fixed fee Examples: Entertainment (Star Wars, Jurassic Park, etc.) Television and cartoon characters (Mickey Mouse) Designer apparel and accessories (Calvin Klein, Pierre Cardin, etc.)

Celebrity Endorsements : 

Celebrity Endorsements Draws attention to the brand Shapes the perceptions of the brand Celebrity should have… High level of visibility Rich set of useful associations, judgments, and feelings

Celebrity Endorsements – Potential Problems : 

Celebrity Endorsements – Potential Problems Celebrity endorsers can be overused Endorsing many products that are too varied. Madhavan, SRK, … Must be a reasonable match between celebrity and product. Tiger Woods & Titleist Golf Balls, Michael Jordan & Nike Celebrity endorsers can get in trouble or lose popularity. Tiger Woods, OJ Simpson Consumers feel celebrities are doing endorsement for $$$ Do not necessarily believe in the endorsed brand. Celebrities may distract attention from the brand

Event Sponsorship – Sports, Cultural, etc. : 

Event Sponsorship – Sports, Cultural, etc. Contribute to brand equity by being Linked to brand Improve brand awareness, & add new associations Improve strength, favorability, and uniqueness of existing associations. The main means by which an event can transfer associations is credibility

Third-Party Sources : 

Third-Party Sources Marketers can create secondary associations in a number of different ways by linking the brand to various third-party sources. Third-party sources can be especially credible sources. Marketers often feature them in advertising campaigns and selling efforts . Example: J.D. Power and Associates’ well-publicized Customer Satisfaction Index

DiscussionAdministrative Details : 

DiscussionAdministrative Details

Case Allocation : 

Case Allocation Group 1 Selling Luxury at Louis Vuitton Moet Hennessey (p 282) Group 2 Building Sponsorship Resonance with Nascar (p 344) Group 3 Integrated Communications: Launching the Lincoln LS (p 354) Group 4 Co-Branding & Licensing at General Mills (p 393)

Thank You : 

Thank You Questions???

Slide 66: 

Proprietary & Confidential © Sai Business Consultants

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