Module - Strategic & Digital Marketing

1. 1
[Insert your
logo here]

2. INTRODUCTION TO
MARKETING
Module: Strategic Marketing
Lecturer: [Insert name]
Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your
logo here]

3. 3
[Insert your
logo here]
Discussion question: What is marketing for you?

4. 4
[Insert your
logo here]
What is marketing?
• A philosophy?
• An attitude?
• A perspective?
• A management orientation?

5. 5
[Insert your
logo here]
Defining the marketing term
American Marketing Association:
Marketing is an organizational function and a set of processes for creating, communicating, and
delivering value to customers and for managing customer relationships in ways that benefit the
organization and its stakeholders.
Philip Kotler
A social and managerial process whereby individuals and groups obtain what they need and want
through creating and exchanging products and value with others.

6. 6
[Insert your
logo here]
Simply put
Marketing is the delivery of customer satisfaction at a profit.
Goals
Attract new customers by promising superior value and keep and grow current customers by delivering
satisfaction.

7. 7
[Insert your
logo here]
Marketing Management Philosophies
Orientation Focus
Production Focus on internal capabilities of the firm.
What can we make or do best?
Sales Focus on aggressive sales techniques and believe that high sales result in high
profits
How can we sell more aggressively?
Marketing Focus on satisfying customer needs and wants while meeting objectives
What do customers want and need?
Societal Focus on satisfying customer needs and wants while enhancing individual and
societal well-being
What do customers want and need, and how can we benefit society?

8. 8
[Insert your
logo here]
Comparing the selling and the marketing concept

9. 9
[Insert your
logo here]
The marketing triangle
Client
Firm Competition
USP
Comparative advantage

10. 10
[Insert your
logo here]
Core marketing concepts

11. 11
[Insert your
logo here]
Understanding key terms in marketing (1)
Needs,
wants and
demands
• Needs: state of felt deprivation for basic items (e.g. food / clothing)
and complex needs such as for belonging (e.g. “I am thirsty”)
• Wants: form that a human need takes as shaped by culture and
individual personality (e.g. “I want a Coca-Cola”)
• Demands: human wants backed by buying power (e.g. “I have
money to buy a Coca-Cola”
Needs (human requirements), Wants (specific learned means to
satisfy needs), Demands (want for a specific product with an ability to
pay for it).
1

12. 12
[Insert your
logo here]
Understanding key terms in marketing (2)
Marketing
Offers
• To satisfy customers’ needs, companies design a marketing offer
(e.g., a product, broadly speaking) that delivers superior value
over competitors.
• A marketing offer is some combination of products, services,
information, or experiences (e.g., value proposition = a set of
benefits).
2

13. 13
[Insert your
logo here]
Understanding key terms in marketing (3)
Value &
Satisfaction
• Customers choose a product that provides the maximum
perceived value among many marketing offers.
• Customer perceived value = total benefits – total costs
• Value is the ratio between what the customers get (benefits) and
what they give (costs).
• Total benefits: product features, services, information, and
experiential values.
• Total costs: monetary, time, and psychological costs.
• Customer satisfaction depends on the product’s perceived
performance in delivering value relative to a buyer’s expectations
3

14. 14
[Insert your
logo here]
Understanding key terms in marketing (4)
Exchange,
Trans-
actions,
and
Relation-
ships
• Exchange: The act of obtaining a desired object from someone by
offering something in return.
• Transaction: It is a unit of measurement to measure the exchange
activity. It represents a trade of values between two parties.
4

15. 15
[Insert your
logo here]
Understanding key terms in marketing (5)
Market
• A market is defined as the set of actual and potential buyers of a
product.
• In marketing, the term market does not stand for the place where
the buyers and the sellers gathered to exchange their products.
• The size of a market depends on the number of people,
homogenous needs, resources for exchange, and willingness to
buy (e.g., purchase intention).
5

16. 16
[Insert your
logo here]
The marketing process
Analyse Conception Implementation Controlling
Goals / Strategies / Marketing Mix
Time

17. 17
[Insert your
logo here]

18. 18
[Insert your
logo here]
THANK YOU
FOR YOUR ATTENTION

19. ANALYSIS
INSTRUMENTS I
Module: Strategic Marketing
Lecturer: [Insert name]
Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your
logo here]

20. 20
[Insert your
logo here]
SWOT analysis
• Planning tool used to understand Strengths, Weaknesses, Opportunities, & Threats involved
in a project / business
• Technique is credited to Albert Humphrey who led a research project at Stanford University
in the 1960s and 1970s.
• A technique that enables a group or individual to move from everyday problems and
traditional strategies to a fresh prospective.

21. 21
[Insert your
logo here]
Strengths Weaknesses
Opportunities Threats
Internal
External
SWOT analysis

22. 22
[Insert your
logo here]
SWOT analysis: strengths
Ask yourself
• What advantages does your company have?
• What do you do better than anyone else?
• What unique or lowest-cost resources do you have access to?
• What do people in your market see as your strengths?
• What factors mean that you "get the sale"?

23. 23
[Insert your
logo here]
SWOT analysis: weaknesses
Ask yourself
• What could you improve?
• What should you avoid?
• What are people in your market likely to see as weaknesses?
• What factors lose you sales?

24. 24
[Insert your
logo here]
SWOT analysis: opportunities
Ask yourself
• Where are the good opportunities facing you?
• What are the interesting trends you are aware of?
Useful opportunities can come from such things as:
• Changes in technology and markets on both a broad and narrow scale.
• Changes in government policy related to your field.
• Changes in social patterns, population profiles, lifestyle changes.
• Local events.

25. 25
[Insert your
logo here]
SWOT analysis: threats
Ask yourself
• What obstacles do you face?
• What is your competition doing that you should be worried about?
• Are the required specifications for your job, products or services changing?
• Is changing technology threatening your position?
• Do you have bad debt or cash-flow problems?
• Could any of your weaknesses seriously threaten your business?

26. 26
[Insert your
logo here]
e.g.
• Well known
brand
• Qualified
employees
• Financial
strength
e.g.
• Slow
manufacturing
process
• Inefficient sales
staff
e.g.
• China as a new
market
e.g.
• Government
plans new
regulation
Internal
External
SWOT analysis: example
S
O
W
T

27. 27
[Insert your
logo here]
Which
opportunities can
we realise due to
our strengths?
Which
opportunities do
we miss due to
our weaknesses?
Which threats can
we address due to
our strength?
Which treats are
we exposed to
due to our
weaknesses?
SWOT analysis: example
Finally, you need to
combine the internal
and external analysis
results to develop
conclusions.
To do so, answer the
following questions.

28. 28
[Insert your
logo here]
PESTAnalysis: Variants / Names of the PEST
Analysis
Political Economic
Socio-
cultural
Techno-
logical
Legal
Environ-
mental
Education
Demo-
graphics
PEST STEER STEEP DESTEP STEP
PESTE PESTEL PESTLE STEEPLE STEEPLED

29. 29
[Insert your
logo here]
PEST analysis: overview
Key facts
• Analysis of the „big picture“ (opportunities and threats) in which an organisation operates
• Factors beyond the control of influence of an organisation
Reasons for doing a PEST analysis
• Helps to break free assumptions of the environment
• Helps to adapt new products and services to the changes affecting the work environment. This
enables organisations to take advantage of the change (better response to the change than
competitors)
Useful for business and strategic planning, marketing planning, business and product development and
research report.
Need to be undertaken on a regular basis.

30. 30
[Insert your
logo here]
PEST analysis: overview
Political: what is happening politically in the environment in which you operate, including areas such as
tax policy, employment laws, environmental regulations, trade restrictions and reform, tariffs and political
stability.
Economic: what is happening within the economy, for example; economic growth/ decline, interest
rates, exchange rates and inflation rate, wage rates, minimum wage, working hours, unemployment
(local and national), credit availability, cost of living, etc.
Sociological: what is occurring socially in the markets in which you operate or expect to operate,
cultural norms and expectations, health consciousness, population growth rate, age distribution, career
attitudes, emphasis on safety, global warming.

31. 31
[Insert your
logo here]
PEST analysis: overview
Technological: what is happening technology-wise which can impact what you do, technology is leaping
every two years, how will this impact your products or services, things that were not possible five years
ago are now mainstream, for example mobile phone technology, web 2.0, blogs, social networking
websites. New technologies are continually being developed and the rate of change itself is increasing.
There are also changes to barriers to entry in given markets, and changes to financial decisions like
outsourcing and insourcing.
Legal: what is happening with changes to legislation. This may impact employment, access to materials,
quotas, resources, imports/ exports, taxation etc.
Environmental: what is happening with respect to ecological and environmental aspects. Many of these
factors will be economic or social in nature.

32. 32
[Insert your
logo here]
PEST analysis: overview
Identify and demarcate the subject of the PEST analysis (goal or output requirements) to produce “clear
picture”.
Define the market by clarifying what is addressing it:
a product, organisation, brand, business unit, proposition, idea etc.
• A company looking at its market
• A product looking at its market
• A brand in relation to its market
• A local business unit or function in a business
• A strategic option, such as entering a new market or launching a new product
• A potential acquisition
• A potential partnership
• An investment opportunity

33. 33
[Insert your
logo here]
PEST analysis: overview
1. Decide how the information is to be collected and by whom (often a team approach is much more
powerful than one person’s view).
2. Identify appropriate sources of information.
3. Gather the information - it is useful to use a template as the basis for exploring the factors and
recording the information.
4. Analyse the findings.
5. Identify the most important issues.
6. Identify strategic options.
7. Write a report.
8. Disseminate the findings.
9. Decide which trends should be monitored on an ongoing basis.

34. 34
[Insert your
logo here]
PEST vs SWOTAnalysis
Acomparison
PEST
• assesses a market (environment),
including competitors, from the
standpoint of a particular
proposition or a business
SWOT
• assesses a particular proposition or
a business, whether your own or a
competitors
Strategic planning is not a precise science – it’s a matter of pragmatic choice what
helps best to identify and explain the issues.

35. 35
[Insert your
logo here]
THANK YOU
FOR YOUR ATTENTION

36. ANALYSIS
INSTRUMENTS II
Module: Strategic Marketing
Lecturer: [Insert name]
Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your
logo here]

37. 37
[Insert your
logo here]
The Value Chain Model
The value chain is useful “in order
to understand the behaviour of (1)
costs and the existing and potential
sources of (2) differentiation”
Michael Porter

38. 38
[Insert your
logo here]
Value Chain: its core

39. 39
[Insert your
logo here]
Value Chain:Ageneric value chain

40. 40
[Insert your
logo here]
Value Chain: Definitions
“Value is the amount buyers are willing to pay for what a firm provides them”
“Value activities are the distinct activities a firm performs”
– “Primary activities […] are the activities involved in the physical creation of the product and its
sale and transfer to the buyer as well as after-sale assistance”
– “Support activities support the primary activities and each other by providing purchased inputs,
technology, human resources, and various firmwide functions”
“Margin is the difference between total value and the collective cost of performing the value activities”

41. 41
[Insert your
logo here]
Value Chain: internal focus
Firm activities in a particular Industry/Branch
Relevant level: business unit
Intraorganisationalal character (=organisation(al unit)-specific)
Value Chain as a System of interdependent Activities
Value activities within the value chain are linked with each other
Competitive advantages via optimisation or coordination
Most apparent linkages between support and primary activities

42. 42
[Insert your
logo here]
Value Chain: external focus
Vertical Linkages of Value Chains (Value System)
Linkages with the value chains of suppliers and channels in the production and distribution process
Basic idea
Activities of suppliers and channels influence cost and performance of a firm (business unit) and vice
versa
Wertkette
Lieferant 1
Firm (business
unit)
Value Chain
Supplier
Value Chains Wertkette
Lieferant 1
Channel
Value Chains Wertkette
Lieferant 1
Buyer
Value Chains
(...)
Basic Structure of a Value System

43. 43
[Insert your
logo here]
Value Chain: cost and differentiation drivers
Cost Drivers: Drivers of Uniqueness
Economies or diseconomies of scale Policy choices
Learning and spillovers Learning and spillovers
Pattern of capacity utilization Scale
Linkages
• Within the Value Chain
• Vertical Linkages (Supplier, Channels)
Linkages
• Within the Value Chain
• Vertical Linkages (Supplier, Channels)
Interrelationships Interrelationships
Integration Integration
Timing Location
Discretionary policies independent of other drivers Institutional factors
Location
Institutional factors

44. 44
[Insert your
logo here]
Value Chain: Example of Cost Drivers
Aconsumer durable manufacturing firm

45. 45
[Insert your
logo here]
Value Chain: steps in strategic cost analysis
1. Identify the appropriate value chain and assign costs and assets to it
2. Diagnose the cost drivers of each value activity and how they interact
3. Indentify competitor value chains, and determine the relative cost of competitors and the sources of
cost differences
4. Develop a strategy to lower relative cost position through controlling cost drivers or reconfiguring the
value chain and / or downstream value
5. Ensure that cost reduction efforts do not erode differentiation, or make a conscious choice to do so
6. Test the cost reduction strategy for sustainability

46. 46
[Insert your
logo here]
Value Chain: steps in differentation
1. Determine who the real buyer is and rank his/her/their purchasing criteria
2. Assess the existing and potential sources of uniqueness in a firm’s value chain
3. Identify the costs of existing and potential sources of differentiation
4. Choose the configuration of value activities that creates the most valuable differentiation for buyer
relative to cost of differentiating
5. Test the chosen differentiation strategy for sustainability
6. Reduce cost in activities that do not effect the chosen forms of differentiation

47. 47
[Insert your
logo here]
GAP analysis
0
2
4
6
8
10
12
14
16
18
1 2 3 4 5 6 7 8
Performance
Time
Differentiated GAP Analysis
Expected Development
Desired Development
Potential Basic Business
Strategic GAP
Tactical
GAP
0
2
4
6
8
10
12
14
16
18
1 2 3 4 5 6 7 8
Performance
Time
Simple GAP Analysis
GAP

48. 48
[Insert your
logo here]
GAP analysis: overview

49. 49
[Insert your
logo here]
GAP analysis example: the SERVQUAL model

50. 50
[Insert your
logo here]
Key aspect of
service/performance
Description
Tangibles Appearance of physical facilities, equipment, personnel, and communication material;
quality of materials and products.
Reliability Ability to perform the promised service dependably and accurately.
Responsiveness Willingness to help customers and provide prompt service.
Assurance Competence, knowledge and courtesy of employees and their ability to convey trust
and confidence.
Empathy Caring, individualized, and professional attention the service provides its customers.
GAP analysis example: the SERVQUAL model

51. 51
[Insert your
logo here]
GAP analysis example: the SERVQUAL model
• Measure the expected and perceived performance of the key elements of a product or service
which are valued by the customer (remember the value curve model). Use e.g. a scale from 1
(Strongly Disagree) to 7 (Strongly Agree)
• Subtract average expectation rating from the average perception rating
Element Expected
Performance
Perceived
Performance
Result Action required
Quality 5.4 2.4 3.0
Delivery time 5.6 4.6 1.0
Price 3.2 3.5 -0.3 
After-Sale-Service 6.2 3.4 2.8
Warranty 2.8 4.2 -1.4 

52. 52
[Insert your
logo here]
Closing GAPs
The next two slides show examples how to close strategic and tactical gaps, referring two the Ansoff
matrix and the marketing mix, two concepts introduced in this module.

53. 53
[Insert your
logo here]
Revenue
t t Time
Diversification
Revenue through daily business
Market penetration
Market development
Strategic Goal
Product development
AnsoffMatrix
(Z-Strategy)

54. 54
[Insert your
logo here]
Revenue
t t Time
Product
Revenue through daily business
Promotion
Place
Tactical Goal
Price
MarketingMix

55. 55
[Insert your
logo here]
THANK YOU
FOR YOUR ATTENTION

56. SETTING MARKETING
GOALS
Module: Strategic Marketing
Lecturer: [Insert name]
Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your
logo here]

57. 57
[Insert your
logo here]
The importance of goals
From “Never eat alone” (Ferrazzi & Raz)
Do you want to become a CEO or a senator? Rise to the top of your profession or to the top of your child's school board? Make more money or
more friends?
The more specific you are about what you want to do, the easier it becomes to develop a strategy to accomplish it. Part of that strategy, of course,
is establishing relationships with the people in your universe who can help you get where you're going.
Every successful person I've met shared, in varying degrees, a zeal for goal setting. Successful athletes, CEOs, charismatic leaders, rainmaking
salespeople, and accomplished managers all know what they want in life, and they go after it.
As my dad used to say, no one becomes an astronaut by accident. Luck has little to do with achievement, as a study cited in Success magazine
makes clear. In the study, researchers asked Yale's class of 1953 a number of questions. Three had to do with goals:
Have you set goals?
Have you written them down?
Do you have a plan to accomplish them?
It turned out that only 3 percent of the Yale class had written down their goals, with a plan of action to achieve them. Thirteen percent had goals but
had not written them down. Fully 84 percent had no specific goals at all, other than to "enjoy themselves."
In 1973, when the same class was resurveyed, the differences between the goal setters and everyone else were stunning. The 13 percent who had
goals that were not in writing were earning, on average, twice as much as the 84 percent of students who had no goals at all. But most surprising of
all, the 3 percent who had written their goals down were earning, on average, ten times as much as the other 97 percent of graduates combined!

58. 58
[Insert your
logo here]
Setting Goals
Overview of organisational goals

59. 59
[Insert your
logo here]
Goal requirements: goals must be operational
Goal
requirements

60. 60
[Insert your
logo here]
The SMART Way of Setting Goals
Overview
S Specific
Goals need to be clearly defined (what, when, how much, in which area/market …)
M Measureable
Goals need to be measureable to make sure you are on track, and to see whether or not
you achieved it.
A Actionable
You need to be able to do something to accomplish the goal.
R Realistic
Goals need to be achievable to be motivating. Realistic goals should be easy nor
impossible to reach.
T Time-oriented
Goals need timeframes for you to accomplish it in. These deadlines help to watch the
process.

61. 61
[Insert your
logo here]
Task: Develop at least 10 marketing goals, each
addressing another topic (keeptheanalysismethodsinmind)

62. 62
[Insert your
logo here]
THANK YOU
FOR YOUR ATTENTION

63. MARKETING
STRATEGIES I
Module: Strategic Marketing
Lecturer: [Insert name]
Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your
logo here]

64. 64
[Insert your
logo here]
Marketing strategy - overview
Definition
• Fundamental decision, in which markets the company will work in the long run and how to act in them
• Determination of the activity framework
• Does not specify measures, but directions (target markets / segments)
With the core elements being
• Market Segmentation
• Targeting
• Positioning

65. 65
[Insert your
logo here]
Part 1: Market segmentation – the idea
Definition of market segment:
A subgroup of people or organisations
having one or more characteristics in
common that cause them to have similar
product and/or service needs.
Criteria
• it is distinct from other segments
(different segments have different
needs)
• it is homogeneous within the segment
(exhibits common needs);
• it responds similarly to a market
stimulus
Available Data
Market
Segmentation
Target
Group
Marketing
Strategies
Marketing
Mix

66. 66
[Insert your
logo here]
Part 1: Market segmentation – segmentation criteria
• Geographic Segmentation
• Demographic Segmentation
(age, gender, income, profession etc.)
• Psychographic Segmentation
(values, attitudes, social class, lifestyle etc.)
• Behavioral Segmentation
(occasion, loyalty status, user status, buyer readiness)
• Product differences
Goal
requirements

67. 67
[Insert your
logo here]
Part 2: Targeting – market coverage strategies
Goal
requirements

68. 68
[Insert your
logo here]
Part 2: Targeting – market coverage strategies

69. 69
[Insert your
logo here]
Part 2: Targeting – market coverage strategies

70. 70
[Insert your
logo here]
Task: Find 2 additional examples for every market
coverage strategy.

71. 71
[Insert your
logo here]
Part 2: Targeting – How to approach the market?
Undifferentiated
Marketing
Differentiated
Marketing
Concentrated
Marketing
One-to-One
Marketing
One Marketing Mix Marketing Mix 1,2,3 Marketing Mix Marketing Mix 1 to 6
How to approach the market?

72. 72
[Insert your
logo here]
Part 2: Targeting – How to approach the market?
Undifferentiated Marketing
Classical mass market strategy (homogeneous products)
+ Saves costs compared with other strategies
- Different needs are not taken into account
Differentiated Marketing
Takes different need into account (e.g. product size, design)
+ Higher revenue
- Higher costs
Concentrated Marketing
Focus on sub-segment
Classical niche strategy
+ high competence
- limited growth opportunities
One-to-One Marketing
Classical B2B strategy
Also upcoming strategy in B2C (requires data
warehousing, data mining)

73. 73
[Insert your
logo here]
Part 2: Market Field Strategies
ByAnsoff
current new
currentnew
Market
Penetration
Market-
development
Product-
development
Diversification
Markets
Products
Z-Strategy

74. 74
[Insert your
logo here]
THANK YOU
FOR YOUR ATTENTION

75. MARKETING
STRATEGIES I
Module: Strategic Marketing
Lecturer: [Insert name]
Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your
logo here]

76. 76
[Insert your
logo here]
Part 3: Positioning
Position strategies discusses next include:
• Pricing
• Timing
• Competitive Strategies

77. 77
[Insert your
logo here]
Part 3: Positioning – pricing strategy (skimming)
A skim strategy clearly exploits the downward sloping demand curve by sequentially targeting different
market segments to maximize initial revenues, and is most appropriate when time is not of the essence
(e.g. competition is not imminent) and futures-related benefits are minimal.
Prices XBOX 2001 - 2005
ExampleHow it works

78. 78
[Insert your
logo here]
Part 3: Positioning – pricing strategy (penetration)
Most appropriate when it is important to exploit a potentially transient first mover advantage, or to quickly
establish a broad installed base in anticipation of:
• Cost improvements from scale, scope or experience (learning curve)
• Substantial complementary product sales (e.g. razors and blades, toner cartridges for printers and
copiers)
• Subsequent upgrade cycles (software)
• Network effects that provide increasing benefits as more customers buy the product (e.g. fax
machines)

79. 79
[Insert your
logo here]
Part 3: Positioning – pricing strategy (penetration)
ExampleHow it works
Prices Toyota Lexus
1989-1995

80. 80
[Insert your
logo here]
Part 3: Positioning – pricing strategy (price
differenciation)
Have you heard
about the
Big Mac Index?
1,53
1,12
0,85 0,80
0,51
A I GB D F
Perrier 750 ml
3,31 3,23
2,63
2,29
1,95
D I F A GB
Kellogg´s Frosties 500g
3,60
2,01
1,61
DK GB D
Nutella 400g
12,94
7,24
D GB
Pampers Ultra
Indications in Euro

81. 81
[Insert your
logo here]
Part 3: Positioning – Situational strategies
Fast market absorption Slow market absorption
Fast market penetration Slow market penetration
Promotion
Price
high low
high
low

82. 82
[Insert your
logo here]
Part 3: Positioning – timing strategy
Options
• Pioneer strategy (risk and
chance)
• Early follower strategy (Entry
after pioneer into the still
dynamic market)
• Late follower strategy (Entry in
the established market; risk
minimisation)
Average market share
during the maturity phase
Pioneer
Early follower
Late follower
Consumer goods Industrial goods
29 % 29 %
17 % 21 %
13 % 15 %

83. 83
[Insert your
logo here]
Part 3: Positioning – Porter’s Generic Strategies
Cost Leadership
• Low-cost competitive strategy
• Broad mass market
• Efficient-scale facilities
• Cost reductions
• Cost minimization
Differentiation
• Broad mass market
• Unique product/service
• Premiums charged
• Less price sensitivity
Cost Focus
• Low-cost competitive strategy
• Focus on market segment
• Niche focused
• Cost advantage in market segment
Differentiation Focus
• Specific group or geographic market focus
• Differentiation in target market
• Special needs of narrow target market

84. 84
[Insert your
logo here]
Part 3: Positioning – Porter’s Generic Strategies
Do not “Stuck in the middle” (No competitive
advantage, Below-average performance)

85. 85
[Insert your
logo here]
Task: Identify at least 3 examples of companies
following each of Porter’s generic strategies

86. 86
[Insert your
logo here]
Part 3: Positioning – Porter’s Generic Strategies
Risks of Cost Leadership Risks of Differentiation Risks of Focus
Cost leadership is not sustained:
• Competitors imitate.
• Technology changes.
• Other bases for cost
leadership erode.
Proximity in differentiation is lost.
Cost focusers achieve even lower
cost in segments
Differentiation is not sustained:
• Competitors imitate.
• Bases for differentiation become
less important to buyers.
Cost proximity is lost.
Differentiation focusers achieve even
greater differentiation in segments.
The focus strategy is imitated:
The target segment becomes
structurally unattractive:
• Structure erodes.
• Demand disappears.
Broadly targeted competitors
overwhelm the segment:
• The segment’s
differences from other
segments narrow.
• The advantages of a
broad line increase.
New focusers subsegment the
industry.

87. 87
[Insert your
logo here]
Part 3: Positioning – Situational strategies
Fast market absorption Slow market absorption
Fast market penetration Slow market penetration
Promotion
Price
high low
high
low

88. 88
[Insert your
logo here]
THANK YOU
FOR YOUR ATTENTION

89. MARKETING
MIX I
Module: Strategic Marketing
Lecturer: [Insert name]
Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your
logo here]

90. 90
[Insert your
logo here]
Marketing mix overview
Many people refer to the marketing as the 4Ps (for product marketing) or the 7Ps (for service marketing).
These Ps refer to:
Product
Price
Place
Promotion
People
Process
Physical evidence
On the following slides we will briefly discuss some of the key decision to be made by marketeers.

91. 91
[Insert your
logo here]
Marketing Mix
Product
“Decisions on the market offering”

92. 92
[Insert your
logo here]
Product: Product dimensions
Real
Product
Additional factors:
• Quality
• Functionality
• Design
• Brand
• Packaging
Extended
Product
Value Added Services
• Service
• Consulting
• Garantie
Core
Product
What is the core benefit you
provide? What does the customer
want to purchase
• Installation
• Delivery

93. 93
[Insert your
logo here]
Product: portfolio
Software A
Home
Edition
Professional
Software B
Home
Edition
Product lines (width)
Productitems(dept)
Small variety but dept product line
High variety but not much
product items per product line

94. 94
[Insert your
logo here]
Product: Product-service linkages
Products / services can be linked to each other
For instance, experiences have an effect on the buying decision
Similar handling reduces learning costs
Transfer of positive information to other products / services (Goodwill Transfer)
Also: complementary products
Monetary losses do not legitimate a product or service elimination
Example
Adobe Acrobat and Adobe Reader; free software contributes to brand awareness and standard
definition)

95. 95
[Insert your
logo here]
Product: ValueAdding Services
Looking beyond the core product
Benefits of Value-adding Services
Value-adding services (before, during and after the purchase) enable vendors to
(1) differentiate themselves from competitors
(2) reduce customer’s uncertainty and
(3) develop customer relationships
Example: Software maintenance
Internal effects
• Raising change costs
• Building trust
External effects
• Gaining knowledge for other projects
• Reputation

96. 96
[Insert your
logo here]
Task: Which other key decisions do you think have to
be made with respect to the product?

97. 97
[Insert your
logo here]
Marketing Mix
Price
“Decisions on contracts, prices, terms of delivery and terms of payment”

98. 98
[Insert your
logo here]
Price: How to set the right price?
Cost-plus pricing
Set the price at the production cost plus a certain profit margin
Target return pricing
Set the price to achieve a target return on investment
Value-based pricing
Base the price on the effective value to the customer relative to alternative products
Psychological pricing
Base the price on factors such as signals of product quality, popular price points, and what the consumer
perceives to be fair

99. 99
[Insert your
logo here]
Price: How to set the right price?
Price differentiation
• Area
• Time
• Person / organisation
• Quantity
Discounts
• Quantity discount
• Cumulative quantity discount
• Seasonal discount
• Cash discount
• Trade discount
• Promotional discount

100. 10
0
[Insert your
logo here]
Price: The price “P” also includes legal issues such
as contracts
Example: Two options to handle software piracy:
Reducing negative effects
Implementation of protection measures
Public Relations (activating the „sense of right or wrong“, helping the customer to understand the value)
Using positive effects
Acceptance or active promotion of the illegal usage of software to diffuse the product (set standards, use
the network effect)

101. 10
1
[Insert your
logo here]
Task: Which other key decisions do you think have to
be made with respect to the price?

102. 10
2
[Insert your
logo here]
Marketing Mix
Place
“Decisions on how to transfer the product / service to the customer”

103. 10
3
[Insert your
logo here]
Place: Direct sales options
Branch
Distributor
Franchising
Online sales
Multi-Level-Marketing
Sales Rep, Agent Middleman ("Handelsvertreter, Reisender, Handelsmakler")

104. 10
4
[Insert your
logo here]
Place: Direct sales
1
• Ability to react quickly /
control over market
channel
• Direct access to
customers / customer
information
• (no profit share)
• Not suitable for low
price products
• Not suitable for complex
products (need for
advice, after-sale-
service)
• High need for capital
Advantages 2Disadvantages

105. 10
5
[Insert your
logo here]
Place: Indirect sales options
Options
Wholesale
Retail Manufacturer ManufacturerManufacturer
Wholesale
Wholesale
RetailRetailRetail
Wholesale
Customer
Two-stage Multi-stageOne-stage

106. 10
6
[Insert your
logo here]
Place: Indirect sales
Exclusive
Selective
Intensive / universal
Manufacturer
Trader 1
Trader 2
Trader 3
Customer
Manufacturer
Trader 1
Trader 2
Trader 3
Customer
Manufacturer
Trader 1
Trader 2
Trader 3
Customer
Beispiel:
Beispiel:
Beispiel:

107. 10
7
[Insert your
logo here]
Place: Indirect sales
1
• High degree of
distribution
• Small need for capital
• Wholesaler / retailer
responsible for product
lines
• Wholesaler / retailer
knows customer needs
• Less control over
market presence /
image
• Distance to the market /
customer
• Profit share
Advantages 2Disadvantages

108. 10
8
[Insert your
logo here]
Place: finding the right delivery model – a software
example
Criteria to be considered:
The vendor’s IT infrastructure
The customers’ infrastructure
The software piracy issue (e.g. SaaS products are easier to protect)
Cost models (e.g. according to time, bandwidth, storage or data transfer capacity for SaaS products)
The operating life expectancy
Implementation and maintenance costs
Standalone software offering
Installed on the buyer’s IT infrastructure
Software-as-a-Service (SaaS)
Installed on the vendor’s IT
infrastructure and provided via internet
or

109. 10
9
[Insert your
logo here]
Place: choice of location
Importance
Choice of location especially important in the service industry due to the integration of the customer
Criteria to be considered in the choice of location:
Proximity to customers
Proximity to complementary products / services
Competitors‘ location
Location‘s image
Maintenance costs
Flexibility (opportunity to expand)
Availability of qualified personal
Branches / work groups
Clearly define boundaries of each branch or work group to prevent „double acquisitions“

110. 11
0
[Insert your
logo here]
Task: Which other key decisions do you think have to
be made with respect to the place?

111. 11
1
[Insert your
logo here]
THANK YOU
FOR YOUR ATTENTION

112. MARKETING
MIX II
Module: Strategic Marketing
Lecturer: [Insert name]
Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your
logo here]

113. 11
3
[Insert your
logo here]
Marketing Mix
Promotion
“Decisions on how to inform customers and influence their decision-making process”

114. 11
4
[Insert your
logo here]
Promotion: above or below the line
Above the line promotion:
Promotion in the media (e.g. TV, radio, newspapers, Internet). Advertiser pays an advertising agency to
place the ad.
Below the line promotion:
All other promotion. The customer is often not aware that promotion is taking place. This includes:
Sponsorship
Product placement
Endorsements
Sales promotion
Merchandising
Direct mail
Personal selling
Public relations
Trade shows
Viral marketing
Guerilla marketing

115. 11
5
[Insert your
logo here]
Promotion: the promotional mix (1/2)
Advertising: Any paid presentation and promotion of ideas, goods, or services by an identified sponsor.
Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store
displays, posters, motion pictures, Web pages, banner ads.
Personal Selling: A process of helping and persuading one or more prospects to purchase a good or
service or to act on any idea through the use of an oral presentation. Examples: Sales presentations,
sales meetings, sales training and incentive programs for intermediary salespeople, samples, and
telemarketing. Can be face-to-face or via telephone.

116. 11
6
[Insert your
logo here]
Promotion: the promotional mix (2/2)
Promotions: Incentives designed to stimulate the purchase or sale of a product, usually in the short
term. Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating
premiums, trade shows.
Public relations: Paid intimate stimulation of supply for a product, service, or business unit by planting
significant news about it or a favorable presentation of it in the media. Examples: Newspaper and
magazine articles/reports, TVs and radio presentations, charitable contributions, speeches, issue
advertising, and seminars.

117. 11
7
[Insert your
logo here]
Promotion: the link between customer satisfaction
and communication
Importance of various factors in partnering (on a scale of 1 to 6, with 1 being very important and 6 being
most unimportant). How well do the providers perform in achieving these requests?

118. 11
8
[Insert your
logo here]
Promotion: the link between customer satisfaction
and communication
Your company/institution and its performance are better then the assessment but nobody
knows –
you have to improve your communication and teach the market!
The assessment is right –
you have to improve the company/institution, its products and/or performance!
The relevance curve is overstated –
you have to manage the expectations of your clients!
The first few most important items are the critical success factors (depending on the curve
progression)
To overcome the gaps you can follow three strategies:

119. 11
9
[Insert your
logo here]
Promotion: the link between customer satisfaction
and communication
When the perceived
performance exceeds the
comparison standard, the
customer gets aware of the
supplier’s ability to provide a
higher performance level. For
this reason, the customer will
raise his expectations up to
this performance level or
even higher. As this can be
seen as a iterative process,
the supplier will, sooner or
later, not be able to provide
these inflationary rising
expectations
Timeline
Expectationlevel
Desired
Min.
requirement
Desired
Min.
requirement
Desired
Min.
requirement
Perceived.
Perceived.
Perceived.

120. 12
0
[Insert your
logo here]
Task: Which other key decisions do you think have to
be made with respect to the promotion?

121. 12
1
[Insert your
logo here]
Marketing Mix
People
“Decisions on how to make sure that the organisation has qualified and motivated employees”

122. 12
2
[Insert your
logo here]
People: the idea
Indirect influence on the customer
The idea is to transfer the marketing concept (organisation and customer) to internal relationships
between organisations and employee.
Acquire new employees
Sponsoring (e.g. lectures at unis)
Recruiting events (e.g. golf in Dubai)
"Employee gets Employee"
E-Recruiting
Immigration of foreign people
Organisation Employee Customer

123. 12
3
[Insert your
logo here]
People: employee qualification and motivation
Employee qualification / development (soft and hard skills)
Seminars
Conferences
Symposia
Workshops
Projects
Employee Motivation
Monetary
• Profit Sharing
• Bonus Scheme
• Incentives
Non-monetary
• Mission Statement
• Career Paths
• Staff appraisal
• Responsibilities
• Feedback
• Work flexiblity

124. 12
4
[Insert your
logo here]
Task: Which other key decisions do you think have to
be made with respect to the people component?

125. 12
5
[Insert your
logo here]
Process: customer integration
Standard Software
Individual Software
Component Software
Product
Creation
Marketing
Marketing
Service
Delivery
Component
Creation
Marketing Assembling
Decision has high
influence on the
marketing (service or
product character)

126. 12
6
[Insert your
logo here]
Process: simultaneous engineering possible?

127. 12
7
[Insert your
logo here]
Marketing Mix
Process
“Decisions contributing to a correct, cost-efficient, flexible and transparent production process”

128. 12
8
[Insert your
logo here]
Task: Which other key decisions do you think have to
be made with respect to the process component?

129. 12
9
[Insert your
logo here]
Marketing Mix
Physical evidence
“Decisions on how to make the service offering more tangible by communicating capability”

130. 13
0
[Insert your
logo here]
Physical evidence: some examples
Appearance of the service
a consultancy can use
• Presentation documents
• Project folder
Appearance of the organisation
• Location of the headquarter / branch
• Furniture
• Information and communication systems
• Cars
• Clothes

131. 13
1
[Insert your
logo here]
Task: Which other key decisions do you think have to
be made with respect to “physical evidence”?

132. 13
2
[Insert your
logo here]
THANK YOU
FOR YOUR ATTENTION

133. BRAND MANAGEMENT I
Introduction to brand management and
brand equity measurement
Module: Strategic Marketing
Lecturer: [Insert name]
Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your
logo here]

134. 13
4
[Insert your
logo here]
The New Coke failure shows how much power the
branding of a company has
In 'blind' taste tests, people may prefer the taste of Pepsi or New Coke over the taste of the
Coke original. However, if the test is not 'blind' and the tasters know which beverage is
which, they prefer the taste of original Coke over Pepsi!.

135. 13
6
[Insert your
logo here]
At the end of this lecture you will be able to...
...define what a brand is
…name an example for the power of brands
…discuss individual brand elements
…differentiate between brand identity and brand image
…understand the importance of brand equity
…measure brand equity
…describe the customer-based brand equity pyramid
…discuss the process of auditing a brand
…discuss Aaker’s brand equity model

136. 13
7
[Insert your
logo here]
Table of Contents
• EXAMPLE of brand
power1
• BRAND definition2
• Brand ELEMENTS3
• Brand EQUITY4
• MEASURING brand
equity1
• GROUP WORK: brand
audit2
• Brand Equity MODEL3
• LITERATURE4

137. 13
8
[Insert your
logo here]
Discussion question: What is a brand?

138. 13
9
[Insert your
logo here]
Brands are big business

139. 14
0
[Insert your
logo here]
Abrand is something used to show customers that
one product is different to the competitors‘ products
A brand is a name, term, sign, symbol or design, or a combination of them, intended to
identify the goods or services of one seller or group of sellers and to differentiate them
from those of competitors.
A name becomes a brand when consumers associate it with a set of tangible and
intangible benefits that they obtain from the product or service.
A Brand is the intangible yet visceral impact of a person‘s subjective experience with
the product, the personal memories and cultural associations that orbit around it.
A Brand is the seller‘s promise to deliver the same bundle of benefits/services
consistently to buyers.

140. 14
2
[Insert your
logo here]
There are many key words when it comes to branding
Brand Name
Brand Identity
Brand Promise
Brand Elements/
Brand Attributes
Brand
Experience
Brand
Personality
Brand Image
Brand Vision

141. 14
4
[Insert your
logo here]
Brand identity and brand image take different
perspectives
BRAND PROMISE
BRAND BEHAVIOR
BRAND
EXPECTATIONS
BRAND EXPERIENCE
BRAND IMAGE
how consumers
perceive the brand
BRAND IDENTITY
how the brand owner
defines what the
brand is

142. 14
6
[Insert your
logo here]
Products perform a function <> Brands offer an
emotion
A product is built in a
factory.
A product is an object.
A product is sold by a merchant.
A product is easily copied by a
competitor.
A product is quickly
out-dated.
A brand is built of trust
and relationships.
A brand is a personality.
A brand is bought by a
customer.
A brand is unique.
A great brand is timeless.

143. 14
8
[Insert your
logo here]
Product-brand relationship: Combined you get a
branded product
Product’s visible
and differentiating
characteristics
Brand’s intangible
values and
imagery
Halo
effect
Branded product
Brand aspiration Product satisfaction

144. “Brand equity is the positive differential
effect of brand awareness and brand
meaning on customer response to the
brand.”
Frederick G. Crane
Author of the book “Marketing for Entrepreneurs”

145. 15
2
[Insert your
logo here]
Brand equity reflects the real value that a brand name
holds for the products and services that it accompanies
Benefits for consumers:
• Less perceived risk
• Reduction in search costs
• Status and prestige
Benefits for the company:
• Premium image, premium pricing
• New product innovations are more easily
introduced to the market
• Loyal customers often cost less to serve
• Greater company equity
• Competitive advantage
BRAND
IDENTITY
BRAND
LOYALTY
PERCEIVED
QUALITY
BRAND
ASSOCIATION
BRAND
AWARENESS
BRAND
EQUITY

146. 15
5
[Insert your
logo here]
Measuring brand equity can be processed by three
steps: Brand audits, Brand tracking, Brand valuation
BRAND
AUDITS
BRAND
TRACKING
BRAND
VALUATION

147. 15
6
[Insert your
logo here]
ABrandAudit is the examination of a brand‘s current
position compared to its competitors
BRAND
AUDITS
“A brand audit requires understanding the sources of
brand equity from the perspective of both the firm
and the consumer.
From the perspective of the firm, what products and
services are currently being offered to consumers and
how are they being marketed and branded?
From the perspective of the consumer, what deeply held
perceptions and beliefs create the true meaning of
brands and products?” (Kevin Keller, Strategic Brand
Management)

148. 15
8
[Insert your
logo here]
Abrand audit requires understanding the sources of
brand equity from the firm‘s and customer‘s perspective
Brand Elements
Supporting marketing programs
Profile of competitive brands
POPs and PODs
Brand mantra
Awareness
Favorability
Uniqueness of associations
Customer based Equity model
Brand Inventory (supply side) Brand Exploratory (demand side)

149. 16
1
[Insert your
logo here]
Abrand audit requires understanding the sources of
brand equity from the firm‘s and customer‘s perspective
Brand Elements
Supporting marketing programs
Profile of competitive brands
POPs and PODs
Brand mantra
Brand Inventory (supply side) Brand Elements: Help to enhance brand
awareness, enhance associations, and
encourage positive emotions & feelings: Brand
names, Logos & Symbols, Characters &
Celebrity Endorsements, Slogans, Jingles,
Packaging, etc.
Supporting marketing programs: Marketing
campaign for building brand awareness or
achieving the desired brand image
Profile of competitive brands: Primary and
secondary research concerning competitive
brands‘ profiles for understanding your position in
the market

150. 16
3
[Insert your
logo here]
Competition
POPs and PODs are composed by Brand Strengths,
Consumer Needs and Competitor Strengths
Competitors’ Points of
Difference:
• Vulnerabilities
• Ideas that are unique to
competitors and important
to customers
Points of Parity:
• Table stakes
• Shared traits that are
important to
customers, the “must
haves”
Points of Differences:
• Potential Differentiators
• Ideas or traits that are
important to customers
and unique to the brand
Brand
Consumers
PODs
PODsPOPs

151. 16
5
[Insert your
logo here]
The brand mantra states the core brand promise
Nike: ‘Authentic Athletic Performance’
Disney: ‘Fun Family Entertainment’
Fedex: ‘Guaranteed Overnight Delivery’
Ritz-Carlton: ‘Ladies & Gentlemen Serving Ladies & Gentlemen’
BMW: ‘Ultimate Driving Machine’
Dove: ‘Real beauty for real people’
Wal-Mart: ‘Low Prices and Good Values’

152. 16
8
[Insert your
logo here]
Abrand audit requires understanding the sources of
brand equity from the firm‘s and customer‘s perspective
Awareness
Favorability
Uniqueness of associations
Customer based Equity model
Brand Exploratory (demand side)
Brand Awareness: The likelihood that
consumers recognize the existence and
availability of a company's product or service.
Brand Favorability: A measure of a
respondent's overall opinion about a brand.
Uniqueness of associations: All brands need a
unique selling proposition (USP) which will give
consumers a compelling reason why they should
buy it instead of competitors‘ brands.

153. 17
1
[Insert your
logo here]
The customer-based brand equity pyramid explains
how customers think and feel about a brand
Meaning: POPs & PODs
Response: Positive Reactions
Relationships: Intense, Active Loyalty
Brand Measures & Brand Objectives
Identity: Brand Awareness
IMAGERYPERFORMANCE
SALIENCE
FEELINGSJUDGEMENTS
RESONANCE

154. 17
5
[Insert your
logo here]
Brand tracking studies are a vital tool in order to
uncover how effective marketing efforts are
BRAND
TRACKING
USAGE
AWARENESS
COMPETITIVE
POSITION
PURCHASE
INTENT

155. 17
8
[Insert your
logo here]
Brand valuation is the job of estimating the total
financial value of the brand
BRAND
VALUATION
Cost based
Income based
Market based

156. 18
4
[Insert your
logo here]
Group work:Apple brand audit - what isApple‘s
brand inventory and brand exploratory?

157. 18
5
[Insert your
logo here]
....Stylish...Cool...
...Realiable operating system...
...Innovation....Intuitive...
...Retina display...
...Simplicity...
..Unique...
Group work:Apple brand audit - what isApple‘s
brand inventory and brand exploratory?

158. 18
6
[Insert your
logo here]
Discussion question: So, what do you think, how
much isApple’s brand equity worth? Coca-Cola?
$$

159. 18
7
[Insert your
logo here]
Brand Value (US $
billion) *2013
Google ≈160,000
Apple ≈155,000
IBM ≈100,500
Microsoft ≈90,000
McDonald’s ≈85,000
Samsung ≈80,000
amazon ≈60,000
Brand valuation is the job of estimating the total
financial value of the brand
Coke’s market
capitalization value,
including brand value:
$120 billion
Coke’s market
capitalization value, not
including brand value:
$50 billion

160. 18
9
[Insert your
logo here]
Aaker’s conceptual framework summarizes brand
equity’s relevant dimensions and its values
BRAND
EQUITY
OTHER ASSETS
BRAND
ASSOCIATIONS
PERCEIVED
QUALITY
BRAND
WARENESS
PERCEIVED
VALUE
Reduced marketing costs
Trade leverage (influence)
Awareness creation
Anchor to which other can be attached
Familiarity liking
Signal of substance/commitment
Reason-to-buy
Differentiate/position
Price the brand
Build extensions
Help process
Differentiate/position
Reason-to-buy
Create pos. attitude
Extensions
Competitive advantage
Provides value to
customer by enhancing
customer’s:
• Interpretation/processing
of information
• Confidence in the
purchase decision
• Use satisfaction
Provides value to firm by
enhancing:
• Efficiency & effectiveness
of marketing programs
• Brand loyalty
• Prices/margins
• Brand extensions
• Trade leverage
• Competitive advantage

161. 19
1
[Insert your
logo here]
Aaker’s conceptual framework summarizes brand
equity’s relevant dimensions and its values
• Brands create status and esteem for your company in the minds of industry leaders, community
leaders, the media, and financial markets like Wall Street. But despite all these benefits, it may not
make sense for you to create a brand.
• There are certain business situations where it would be a waste of money. For example, in
completely new markets where there are very few, if any, customers, you'd be smarter to invest your
resources in growing awareness and interest in the category first. However, if your business depends
on creating loyal, repeat customers, a strong brand is the surest way to do it.
It is imperative to know how much equity a brand commands in the market as building strong brand
equity is a very successful strategy for differentiating a product / service from its competitors (Aaker
1991). Although brand equity cannot be built in short term, it can be built in long term through carefully
designed marketing activities.
Next session: Managing Brand Equity

162. The main purpose of branding is to get more
people to buy more stuff for more years at a
higher price.

163. 19
3
[Insert your
logo here]
Literature
Aaker, D. A. (2009). Managing brand equity. Simon and Schuster.
Crane, F. G. (2010). Marketing for entrepreneurs: Concepts and applications for new ventures.
Thousand Oaks, CA: Sage Publications.
Heding, T., Knudtzen, C. F., & Bjerre, M. (2009). Brand management: Research, theory and practice.
London: Routledge.
Kapferer, & J.-N. (2012). The new strategic brand management: Advanced insights and strategic
thinking. London: Kogan Page.
Keller, K. L. (2006). Conceptualizing, measuring, and managing customer-based brand equity.
Sage Library in Business and Management, 5, 235.
Keller, K. L. (2003). Strategic brand management: Building, measuring, and managing brand
equity. Upper Saddle River, NJ: Prentice Hall.

164. 19
4
[Insert your
logo here]
THANK YOU
FOR YOUR ATTENTION

165. BRAND MANAGEMENT II
Branding strategy, positioning and brand
equity management
Module: Strategic Marketing
Lecturer: Thorsten Kliewe
Date: September 11, 2015
PRESENTATION SUPPORTED BY
[Insert your
logo here]

166. 19
6
[Insert your
logo here]
Quiz in pairs: One person takes a brand card, and
must describe it to their partner using one-word clues

167. 19
8
[Insert your
logo here]
Why isApple an example of good branding? What
doesApple try with the ad?

168. 20
0
[Insert your
logo here]
With the adApple aimed to strengthen the human
characteristics/traits of theApple brand personality
I’m a PC I’m a Mac
cool
casual
friendly
stylish
easy-going
innovative

169. 20
1
[Insert your
logo here]
At the end of this lecture you will be able to...
...name examples of exceptional branding
...define what a brand personality is
…discuss the development of brand approaches
...understand the objectives of brand management
…outline the importance of brand management
…outline the importance of brand management
…discuss the steps in managing brand equity
…name the purpose of branding

170. 20
2
[Insert your
logo here]
Table of Contents
• EXAMPLE1
• DEVELOPMENT of
brand management2
• Brand PERSONALITY3
• New Branding
CHALLENGES4
• BRAND EQUITY5
• MANAGING brand
equity6
• LITERATURE7
8

171. 20
3
[Insert your
logo here]
From the past till now, the answers to “what is a
brand?” have changed
An identity
endowed on a
product to make it
unique and
superior
A name or sign
that guarantees
a product‘s
origin
The name of a
remarkable value
proposition
A name that adds
value beyond
the utility of the
product it signifies
A position
strongly held in
the
consumer’s
mindThe name of a
different
and superior
product
A name that
means trusted
promise
A name that is
able to create
a community
around its
values

172. 20
6
[Insert your
logo here]
There are fundamentally different perceptions of the
brand and the brand-consumer exchange
The
economic
approach
The
identity
approach
The
consumer-
based
approach
The
personality
approach
The
relational
approach
The
community
approach
The
cultural
approach
1985 20061993 2000

173. 20
8
[Insert your
logo here]
Abrand's positioning is the place in consumers'
minds that you want your brand to own
A strong brand position means the brand has a unique, credible, sustainable, and valued place in
customers' minds.
A well-crafted brand positioning has three primary components: A definition of the target market you wish
to pursue. A definition of the business your company is in or the industry or category it competes in. A
statement of your point of difference and key benefits.
Brand management has, for many, been historically focused on identity management but is now much
more concerned with the active management of the market value and competitive strength of a brand as
an (intangible) company asset. (Di Somma, 2014)

174. 20
9
[Insert your
logo here]
Group work: Discuss where you would place the
products in the Involvement Grid
Car
Personal Computer
Bottled Water
Detergent
Paint
Plasma TV
Air Conditioner
DVD Player
Diapers
Sneakers
Designer Handbag
Milk
Perfume
INFORMATIVE
SATISFACTIONHABITUAL
AFFECTION
THINK FEEL
LOW INVOLVEMENT
HIGH INVOLVEMENT

175. 21
0
[Insert your
logo here]
Brands are important as ever
• Consumer need simplification
• Consumer need for risk reduction
Brand management is as difficult as ever
• Savvy consumers
• Increased competition
• Decreased effectiveness of traditional marketing tools and emergence of new marketing tools
• Complex brand and product portfolios
Brand Proliferation
Media Fragmentation
Increased Costs
Greater Accountability
Challenges

176. 21
1
[Insert your
logo here]
Managing brand equity consists of 3 steps: Brand
reinforcement, Brand revitalization, Brand crisis
BRAND
REINFORCEMENT
BRAND
REVITALIZATION
BRAND
CRISIS

177. 21
4
[Insert your
logo here]
Managing brand equity: Brand Reinforcement
BRAND
REINFORCEMENT
Maintaining Brand Consistency
Protecting Sources of Brand Equity
Fortifying versus Leveraging Brand Equity
Fine-Tuning the Supporting Marketing Program

178. 21
5
[Insert your
logo here]
Brand Reinforcement Strategies
BRAND
REINFORCE-
MENT
STRATEGIES
BRAND
IMAGE
BRAND
AWARENESS
Innovation in
product design,
manufacturing, &
merchandising
Maintaining Brand
Consistency
Relevance in
user and usage
imagery
Protecting sources
of brand equity
Fortifying versus
Leveraging Brand
Equity
Fine-Tuning the
Supporting
Marketing Program

179. 21
9
[Insert your
logo here]
BRAND
REVITALIZATION
Managing brand equity: Brand Revitalization
Recapturing
lost sources of
brand equity
Identifying &
establishing
new sources
of brand
equity

180. 22
0
[Insert your
logo here]
Brand Revitalization Strategies
BRAND
REVITAL-
IZATION
STRATEGIES
Create new
sources of
brand equity
Refresh old
sources of
brand equity
Expand depth and
breadth of
awareness and
usage of brand
Retain vulnerable
customers
Improve strength,
favourability, and
uniqueness of
brand associations
Recapture lost
customers
Identify neglected
segments
Attract new
customers
Identify additional
opportunities to use
brand in same basic
way
Identify completely
new and different
ways to use brand
Increase quantity
of consumption
(how much)
Increase
frequency of
consumption
(how often)
Bolster fading
associations
Neutralize
negative
associations
Create new
associations

181. 22
2
[Insert your
logo here]
The Power of branding: Do you recognize the
brands behind the elements?
Just do it.
I’m loving it.

182. 22
3
[Insert your
logo here]
Literature
Aaker, D. A. (2009). Managing brand equity. Simon and Schuster.
Crane, F. G. (2010). Marketing for entrepreneurs: Concepts and applications for new ventures.
Thousand Oaks, CA: Sage Publications.
Heding, T., Knudtzen, C. F., & Bjerre, M. (2009). Brand management: Research, theory and practice.
London: Routledge.
Kapferer, & J.-N. (2012). The new strategic brand management: Advanced insights and strategic
thinking. London: Kogan Page.
Keller, K. L. (2006). Conceptualizing, measuring, and managing customer-based brand equity.
Sage Library in Business and Management, 5, 235.
Keller, K. L. (2003). Strategic brand management: Building, measuring, and managing brand
equity. Upper Saddle River, NJ: Prentice Hall.

183. 22
4
[Insert your
logo here]
THANK YOU
FOR YOUR ATTENTION

184. BRAND MANAGEMENT
CASE
Module: Strategic Marketing
Lecturer: [Insert name]
Date: [Insert date]
PRESENTATION SUPPORTED BY
[Insert your
logo here]

185. 22
6
[Insert your
logo here]
Task:Take two competitive brands of your choice and analyse
them using the knowledge you gained in the previous lectures
Present the
results later in
front of the
class.

186. 22
7
[Insert your
logo here]
THANK YOU
FOR YOUR ATTENTION