The document discusses various strategies for designing effective marketing programs to build brand equity. It covers topics such as identifying new perspectives in marketing, enhancing product experiences, value pricing, channel options, and the growth of private labels. Experiential, relationship, mass customization, and one-to-one marketing approaches are summarized that aim to personalize marketing efforts. Pricing, product, channel, and integrated marketing strategies are outlined for building brand equity and strong customer relationships.

1. Designing Marketing
Programs to Build

2. Identify some of the new perspectives and
developments in marketing
Describe how marketers enhance product experience
Explain the rationale for value pricing
List some of the direct and indirect channel options
Summarize the reasons for the growth in private labels

3. INTEGRATING
MARKETING
Personalizing
Marketing
Experiential
Marketing
Relationship
Marketing
Mass
Customization
One-to-One
Marketing
Permission
Marketing

4. • Creative and original thinking is
necessary to create fresh new
marketing programs
• Marketing programs (channel
strategies, communication
strategies, pricing strategies,
etc.) can build BRAND EQUITY

5. • Any information-bearing experience that a customer or prospect has
the brand, the product category etc.
• A person can come in contact with a brand in numerous ways:
• Friends’ and neighbors’ comments
• Packaging
• Newspaper / Magazines
• TV information
• Contacts do not stop with the purchase

6. Personalizing Marketing
•Internet and mass media brought the need
for personalized marketing into sharp focus
•Power of the individual consumer

7. Experiential Marketing
• Focuses on customer experience (meaningful, memorable, creative,
unique, special, different, WOW experiences)
• Giving people a reason to talk about you
• Environmental design = Experiential Marketing
• Connecting your brand and consumer
Trying to attach an existing emotion.
Being a pushy salesman not pully.
E.M. is not WHAT YOU SAY; it is HOW THEY RESPOND.

12. «Consumers’ senses (smell, sound, sight, taste, and touch)»
MARRIOTT CAN ‘TELEPORT’ YOU
TO HAWAII OR LONDON
«How do customers physically sense your product?»

14. «Customers’ inner feelings and emotions»
«What will it feel like to use your product or service?»

16. «To deliver cognitive, problem-solving experiences
that engage customers creatively»

17. «Targets physical behaviors, lifestyles, and interactions»
«Changes in behavior can be highly motivational and empowering.»
What behaviors will your product help to facilitate?
«Creates experiences by taking into account individuals’ desires to be part of a social
context (self-esteem, being part of a subculture, or a brand community)»

18. • Create stronger bonds with consumers.
• Make your customers feel valued.
«Current customers are the key to long-term brand success.»

20. • The process of delivering wide-market
goods and services that are modified to
satisfy a specific customer need.
• Customers’ demands are diverse which
lead to high component variety.
• The Economist: «Mass Customization a
Result of the 3rd Industrial Revolution.»

22. • Consumers help to add value by providing information.
• It’s also called personalized marketing.
• Remembering the customer’s personal preferences.
• Getting to know the individual choices made by a customer.
• Treat different consumers differently
• Different needs
• Different values to firm
• Current
• Future (lifetime value)

23. • Permission marketing is a way of developing «consumer
dialogue»
• There is a world of difference between P.M. and
«Interruption Marketing».
• It doesn’t interrupt people’s time, space or
peace of mind.
• Treating people with respect is the best way
to earn their attention.
PERMISSION MARKETING
«Permission Marketing is the way to
turning strangers into friends, and
friends into customer.»

33. PRODUCT
STRATEGY
Perceived
Quality
Aftermarketing
User
Manuals
Customer
Service
Programs
Loyalty
Programs

34. PERCEIVED QUALITY
• Consumer evaluations may be formed by less thoughtful decision making:
• Such as simple heuristics and decision rules based on brand reputation or product characteristics such as
color or scent.
Brand
Equity
Brand
Awareness
Brand
Attributes &
Associations
Perceived
Quality
Brand
Loyalty
• The perceived quality
may be base on images,
advertising, and brand
names.

35. AFTER MARKETING
• To achieve the desired brand image, product strategies should
focus on both purchase and consumption.
• Aftermarketing, that is, those marketing activities that occur
AFTER customer purchase.
•Innovative design by testing, quality
production and effective communication
are without question the most important
considerations in enhancing product
consumption experience that build brand
equity.

37. • Online help forums
• More advanced features (highly desirable
and possibly unique to the brand)
• To enhance customers’ consumption
experiences
• What product or service can do?
• «Easy-to-use» instructions
• Globalization & writing into multiple
languages
• Make customers as user friendly and
possible

38. • Creating stronger ties with customers can
be as simple as creating a well-designed
customer service department.
• E.g. HP makes much more money selling
printer cartridges than from selling the
printer itself.

39. • Stronger ties to customers
• Identifying, maintaining, and increasing
the yield from a firm’s «best»
customers through
• Long term, interactive, value-added
relationships.
• «Loyalty programs reduce defection
rates and increase retention. You can
win more of a customer’s purchasing
share.»

40. to Build Effective Loyalty Programs
LISTEN TO YOUR BEST CUSTOMERS

41. PRICING
STRATEGY
Consumer
Price
Perceptions
Setting Prices to
Build Brand
Equity
Value
Pricing
Product Design
and Delivery
Product
Costs
Product
Prices
Price
Segmentation
Communicating
Value
Everyday
Low Pricing

42. Consumer Price Perceptions
• Can dictate «How consumers categorize the price of the brand (as low,
medium, or high)» and «How firm or flexible they think the price is»
• There is a relationship between price and quality.
• Within any price tier, there is a range of acceptable prices, called price
bands.
• Price has complex meaning and can play multiple roles to consumers.
• Value-based pricing strategies
• Attempting to sell the right price
• To better meet consumer wishes

43. • «Fair price» (What product should cost)
• Typical price
• Last price paid
• Upper-bound price (the most consumer would pay)
• Lower-bound price (the least consumer would pay)
• Competitive prices
• Expected future price
• Usual discounted price
Understanding Consumer Price Perceptions

44. • Choosing a pricing strategy to build brand equity means determining
the following:
• A method for setting current prices
• A policy for choosing the depth and duration of promotions and discounts
Setting Prices to Build Brand Equity

45. Value Pricing • To uncover the right blend of
product quality, product costs, and
product prices that fully satisfies
the needs and wants of customers
and the profit targets of firm.
• Marlboro episode:
1. Strong brands can command price
premiums.
2. Strong brands cannot command an
excessive price Premium.

46. Value Pricing
• Consumers may be willing to
«trade down» because they no
longer can justify to themselves
that the higher-priced brand is
worth it.
«Save Money. Live Better.»
describes the pricing strategy
that has allowed it to become
the World’s largest retailer.

47. • Consumers are willing to pay
premiums when they perceive
added value in products and
services.
• Increasing prices by skillfully
introducing new or improved
«value-added» products.
1- Product Design and Delivery

49. • Lower costs as much as
possible.
• Cost Savings
• Productivity gains
• Outsourcing
• Material Substition (less
expensive or less wasteful
materials)
• Product reformulations
• Process changes (automation or
other factory improvements)
2- Product Costs
«The customer is only going to pay you for what he perceives as
real value-added. When you look at your overhead, you’ve got
to ask yourself if the customer is really willing to pay for that. If
the answer is no, you’ve got to figüre out how to get rid of it or
you’re not going to make money.»

50. • Understanding exactly how
much value consumers
perceive in the brand and thus
to what extent they will pay a
premium over product costs.
• The price suggested by
estimating perceived value can
often be a starting point for
marketers in determining
actual marketplace prices,
adjusting by cost and
competitive considerations as
necessary.
3- Product Prices New Pricing Strategy by
 New product packaging
 Redesigned manufacturing processes
 To be able to hit the necessary cost, price, and
margin targets
 Despite lower prices, profits for the
brand doubled.

51. • Value may be obvious or not.
• Stressing quality for price.
• Marketers may need to engage in
marketing communications to help
consumers better recognize the
value.
• Convincing consumers to think
about their brand and product
decisions differently.
Communicating

52. • At the same time, different
consumers may have different value
perceptions and therefore could-
and most likely should-receive
different prices.
• PS sets and adjusts prices for
appropriate market segments.
• Firms are increasingly employing
yield management principles or
dynamic pricing.
Price Segmentation

53. «Allstate Insurance embarked on a yield
management pricing program, looking at drivers’
credit history, demographic profile, and other
factors to better match automobile policy premiums
to customer risk profiles.»
«The San Fransisco Giants have used yield pricing at
their AT&T Park home, basing prices for any seat at
any game on a number of different factors.»

54. • EDLP avoids the sawtooth,
whiplash pattern of alternating
price increases and decreases
or discounts in favor of a more
consistent set of «everyday»
base prices on products.
• In many cases, these EDLP
prices are based on the value-
pricing considerations.
Everyday Low Pricing (EDLP)
• In 1992, P&G decided to move from
Hi-Lo Pricing to EDLP – «Value Pricing»
• Achieved this by lowering wholesale
list prices by 10-25%
• Motivation - trade promotion
spending had gotten out of hand
• 44% of all marketing dollars spent on
trade promotions compared to 24% a
decade earlier.

55. • Why then do firms seek greater price stability?
• Products only for a certain length of time and in a certain geographic
region.
• With forward buying, retailers order more product than they plan to sell
during the promotional period.
• With diverting, retailers pass along or sell the discounted products to
retailers outside the designated selling area.
Creating a brand association to «discount» or «don’t pay full price»
diminished brand equity.
Reasons for Price Stability

56. CHANNEL
STRATEGY
Channel
Design
Direct
Channels
Company-
Owned Stores
POP-UP
Stores
Store-Wtihin-a-
Store
Indirect
Channels
Push & Pull
Strategies
Channel
Support
Retail
Segmentation
Cooperative
Advertising
Online
Strategies

57. • The manner by which a product is
sold or distributed can have a
profound impact on the resulting
equity and ultimate sales success of
a brand.
• Channel strategy includes the design
and management of intermediaries
such as wholesalers, distributors,
brokers, and retailers.

58. • Direct channels
• Selling through personal contacts from the company to prospective customers by
mail, phone, electronic means, in-person visits, and so forth
• Indirect channels
• Selling through third-party intermediaries such as agents or broker representatives,
wholesalers or distributors, and retailers or dealers
• Push and pull strategies
• Web strategies

61. Vlasic’s concerted shopper marketing program paid off nicely in the
marketplace.

62. • Importers
• Foreign made product goes to exclusive importer who sells to retail outlets in a
geographical area.
• Wholesaler
• Buy products from domestic manufacturers and sell them to retail stores and
other businesses
• Retailers
• Sell product to consumers

63. • By devoting marketing efforts to the end consumer, a manufacturer is said to
employ a pull strategy.
• Alternatively, marketers can devote their selling efforts to the channel members
themselves, providing direct incentives for them to stock and sell products to the
end consumer. This approach is called a push strategy.

65. • Two such partnership strategies are retail
segmentation activities and cooperative
advertising programs.
• Retail segmentation
• Retailers are “customers” too
• 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.

66. • Different retailers may need different product mixes, special delivery
systems, customized promotions, or even their own branded version
of the products.
• Brand variants: Branded items in a diverse set of durable and
semidurable goods categories that are not directly comparable to
other items carrying the same brand name.
• Includes making changes in color, design, flavor, options, style, stain, motif,
features, and layout.
• Means to reduce retail price competition because they make direct price
comparisons by consumers difficult.
Retail Segmentation

67. 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.
erative
Disadvantage
The brand image
communicated
through co-op ads
is not as tightly
controlled as when
the manufacturer
runs its own ads

68. • From the viewpoint of consumer shopping and purchase behaviors, we can
see channels as blending 3 key factors: INFORMATION, ENTERTAINMENT,
and EXPERIENCES.
1. Consumers may learn about a brand and what it does and why it is different or
special.
2. Consumers may also be entertained by the means by which the channel permits
shopping and purchases.
3. Consumers may be able to participate in and experience channel activities.

69. To gain control over the selling process and build stronger relation- ships with
customers, some manufacturers are introducing their own retail outlets, as well as
selling their product directly to customers through various means.

72. Store-Within-a-Store
Manufacturers also create their own shops within major department stores.

73.  Integrated channels allow consumers to
shop when and how they want.
 Online or over the phone.
 Access their online accounts in the store.
 Search on the web before purchasing
from the store.