Designing Marketing Programs to Build Brand Equity Leroy J. Ebert DipM, MCIM, MSLIM, Chartered Marketer Content Extracted from “Strategic Brand Management” 3rd Edition Authors: Kevin Lane Keller M.G. Parameswaran Issac Jacob Presentation developed from SLIM Diploma In Brand Management Students Presentation developed by Leroy J. Ebert (19th April, 2014)

1. Designing Marketing Programs
to Build Brand Equity
Leroy J. Ebert DipM, MCIM, MSLIM,
Chartered Marketer
Diploma in Brand Management – “Strategic Brand Management – Sri Lanka Institute of Marketing

2.  Drivers of the new economy are
 Digitization and connectivity
 Disintermediation and reintermediation
 Customization & customerization
 Industry convergence
 These drivers have given consumers and companies
new capabilities pg. 185 fig 5.1
New Perspectives on Marketing

4. Integrating marketing programs and
activities
Product
Pricing
Advertising
Sales promotion
Personal selling

5.  Promotes loyalty and attitudinal attachment
Personalizing marketing

6.  Promoting a product by not only communicating a product’s
features and benefits but also connecting it with unique and
interesting experiences
 Establishes brand imagery and helps to build brand communities
 West Jet
Experiential Marketing

7.  Focus on individual consumers through customer
databases
 Respond to consumer dialogue via interactivity
 Customize products and services
One to one marketing

8. Permission marketing

9.  Relationship marketing – attempts to provide a more
holistic personalized brand experience to build
stronger consumer ties
 Benefits of RM
 Loyalty programs i.e. tesco’s
 CLV
Relationship Marketing

10.  The heart of a great brand is invariably a great
product
 You can sustain a brand if the product doesn’t fully
satisfy the customer
Product Strategy

11.  Perception of the over all quality or superiority of a
product or service compared to alternatives
 Sustaining perceived quality with customers is getting
tougher, customers expectations rises and
competitors are more fierce than ever
Perceived quality

12.  Performance : level of primary characteristics of the
product
 Features : Secondary elements that complement the
primary characteristics
 Conformance quality
 Reliability: stands the test of time
 Serviceability
 Style and design
Dimensions of perceived quality

13.  Speed, accuracy, care of product delivery and
installation, promptness, courtesy, customer service
training and quality of repair service.
 Mc Kinsey’s 3D marketing
• Functional benefits: quality, value, price
• Process benefits: product replenishment, access to info
• Relationship benefits: differentiated loyalty rewards,
communication
Brand intangibles

14. Value Chain

15. Mass Customization

16.  2nd moment of truth
 Innovative design, thorough testing, quality
production, effective communication
 i.e. simple product catalogs,
 Managing customer feedback and making changes
very quickly i.e. software industry
After Marketing

17.  Price is the one revenue generating element in the
traditional marketing mix and pricing strategies are
amongst the most important brand equity benefits of
building a brand
 The pricing strategy can dictate how consumers
categorize the price of the brand (as low, medium,
high) and how firm or flexible they think the price is
based on how frequent it is discounted
Pricing Strategies

18.  There is a relationship between price and quality fig
5.5 pg 200
 Some companies sell multiple brands in multiple
pricing categories in order to better compete in
multiple categories fig 5.6 pg 201
 Value based pricing strategies – adaptation, if
tangible and intangible benefits are high then sell it at
a high price
Pricing strategy

19. Hameedia brand portfolio
Price
High
HighLow
Fashion and design

20.  Its very crucial, get it wrong you are screwed for
many reasons.
 Repositioning a mass market brand to be a premier is
next to impossible
 Mess up the pricing, you lose revenue and customer
might not accept the revised price
Pricing strategy

21.  Cost + pricing
 Premium
 Skimming
 Introductory
 Value based
 Penetration – lean and mean
 Predatory
 Psychological
 Promotional pricing – at events or even bundled offers
 Sachet pricing
Pricing strategy

22.  What is the easiest way to arrive at the most suitable price
 Brand awareness of the customer and by his network helps
customers arrive at a price
 If you can’t increase the price reduce the qty, quality
Product prices

23.  Marketing Channels –sets of interdependent
organizations involved in the process of making a
product or service available for the use or
consumption
 Channel strategy – Includes the design and
management of intermediaries such as wholesalers,
distributors, retailers etc.
Channel Strategy

24.  Direct channels – direct to customers
 Indirect channels – using 3rd party intermediaries such
as distributors, retailers, agents etc.
 Winning channel strategies will be those that can
develop an integrated shopping experience
combining, physical stores, catalogs, internet and
telephone. See nike i.e. on page 211 and 212.
Channel Design

25.  This is applicable when
 Product info needs are high
 Product customization is high
 Product quality assurance is important
 Purchase lot size is important
 Logistics are important
Direct channel for B2b

26.  A broad assortment of channels are essential
 Product availability is critical (intense distribution)
 After sales service is important i.e. titan watches
Indirect channel is needed

27.  Retailers
 Comes in contact with the customer more than the
brand owner
 Affects the brands service standard i.e. adidas full
technology shoes are sold only at adidas retail outlets
 Retailers image reflects on the brands equity i.e. this
retailer sells only high quality products
Indirect channels

28.  VM, availability enhance or reduce brand equity
 Brand owners have to take an active role in helping
retailers to add value to their brand
 Increasing power of retailers due to multiple
undifferentiated brand and ltd shelf space
 Retailer request incentives to stock new brands,
extended credit, special promo’s
Push and Pull Strategies

29.  Pull strategy – focusing all marketing efforts towards the
end customer
 Push strategy -
PUSH & PULL

30.  Retailers are customers too
 Because of their different marketing capabilities and
needs, retailers may need to be divided into
segments or even treated individually so the will
provide the necessary brand support
 This can be achieved through branded variants
Retail Segmentation

31.  The manufacturer pumps in money to the retailer in
order to support the local marketing initiatives
 The funds allocated is percentage of sales
 Retailers can localize the marketing to be more
appealing to the target audience
 Controllability is an issue when marketing is managed
by retailers. They tend to be biased towards
themselves and not the brand.
Co-operative Advertising

32.  Company owned stores
 Shop in Shop
 Direct selling, through phone, catalogs,
 Web strategies
Direct Channels

33.  Private labels/own label/store brands
 Private labels should not be confused with generics
Private Labels
5 GBP1.5 GBP

34.  Better margins for retailer
 Improved retailer brand penetration
 Improved quality and design
 Brand manufacturers manufacture private labels
 Private label sales have increased
 Price conscious customers prefer own labels
Private labels

35. Content Extracted from “Strategic Brand Management” 3rd Edition
Authors:
Kevin Lane Keller
M.G. Parameswaran
Issac Jacob
Presentation developed from SLIM Diploma In Brand Management
Students
Presentation developed by Leroy J. Ebert (19th April, 2014)