The document discusses implications for brand management in the new digital economy. Key drivers include digitalization, disintermediation, customization, and industry convergence. This allows for more powerful customers who can access more information and products. Companies can now collect richer customer data and communicate directly. There is a move away from mass marketing towards strategies like integration, personalization, experiential marketing, one-to-one marketing, and permission marketing. Pricing, product, and distribution strategies must focus on customer value and experience to build strong brands.

1. .
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2. • How do marketing activities in general—and product, pricing,
and distribution strategies in particular—build brand equity?
• How can marketers integrate these activities to enhance
brand awareness, improve the brand image, elicit positive
brand responses, and increase brand resonance?

3. .
The four major drivers of this new economy are:
1. Digitalization and connectivity
(internet, intranet, mobile devices)
2. Disintermediation and reintermediation
(middlemen)
3. Customization and customerization
( tailored products and ingredients provided to customers to make their own
products)
4. Industry convergence
(blurring of industry boundaries (laptops+tablets+GSM phones etc…)

4. .
Customers: - Have more power
- Have a large variety of available goods and
services
- Can obtain more information
- Can easily interact with marketers in placing
and receiving orders
- Can interact with other consumers and
compare notes
Companies: - Can collect fuller and richer information
about markets, customers, competition
- Better communication technologies and
transaction efficiency
- Can use the internet and e-mail to send
promotional messages to customers
- Can customize their offerings to individual
customers

5. .
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5.5
Implications for the Practice of Brand
Management
• Number of implications for
the practice of brand
management. Marketers are
increasingly abandoning the
mass-market strategies that
built brand powerhouses in
the 1950s, 1960s, and 1970s
to implement new
approaches.
• Even marketers in staid,
traditional industries are
rethinking their practices and
not doing business as usual.

6. .
There is a move away from mass-market strategies
• The 21st century has forced marketers to change how
they develop their marketing programs.
• Integration and Personalization are crucial factors
in building and maintaining strong brands

8. Product
brand building efforts
marketing activities

9. .
.
• Experiential marketing
• One-to-One marketing
• Permission marketing

10. .
• Expression of individuality
• Consumer desire for personalization
“The idea is not to sell something, but to demonstrate how a brand
can enrich a customer’s life”
Experiential marketing connects a product to unique and interesting experiences

11. The Fundamental Strategies of One-to-One Marketing:
- Focus on individual consumers through consumer databases
- Respond to consumer dialogue via interactivity
- Customize products and services
Marketing to consumers only after gaining their express permission
“anticipated, personal and relevant” - Godin

12. .

13. “At the heart of a great brand is invariably a great
product”
• How do consumers form their opinions of the quality and value
of a product?
• How can marketers use the relationship marketing perspective
in formulating product strategy and offerings?

14. .
.Dimensions of Quality:
• Performance
• Features
• Conformance Quality
• Reliability
• Durability
• Serviceability
• Style and Design
Brand Intangibles
speed, accuracy, delivery and installation, courtesy, helpfulness of
customer service and training

15. .
.1. Functional benefits: Product and
performance attributes
2. Process benefits: ease of access to
product information; broad
product selection; convenient
transactions
3. Relationship benefits: personalized
service; strong emotional
relevance; loyalty rewards
“By improving the fuller customer experience, companies
can keep consumers happier and hold on to them longer”
(McKinsey)

16. quality perceptions + cost perceptions = assessment of value
opportunity costs of time, energy and psychological involvement in the decision
The firm is a collection of activities that are performed to
design, produce, market, deliver and support products
Firms can achieve competitive advantages by
improving performance and reducing costs in
any or all of the value creating activities

17. .current customers are the key to long term brand success
- Mass Customization
- Aftermarketing
- Loyalty Programs
Customization addresses the need for individuality
To achieve the desired brand image, product strategies should focus on
both purchase and consumption
Activities that occur after customer purchase (User Manuals, Complimentary Products)
Loyalty programs offer different mixtures of services, newsletters, premiums and incentives for a
firm’s “best” customer

18. .
.

19. . Revenue generating element from of the mix
Its belongs in the performance CBBE model( Chapter 2 )
Consumers willing to pay price premiums , when there is a
perceived added value = Stronger brands
Aspects of pricing Strategy :
1. Price perceptions
2. Setting prices

20. .
• Consumers rank brand according to prices
• Price Bands = range of acceptable prices
• price - product meaning - value and quality they received

21. .
.
Pricing
Strategy
Needs and wants of
consumers
Costs of producing the product Relative prices of
competition
Profit margin of the
company
Greater emphasis on the
end consumer
Value strategies
Everyday low pricing EDLP
strategies
Sell the right product and the
right price- to better meet
consumer needs

22. .
.1. Assess what value the customer places on your brand
2. Look for variation in assessing customers value
3. Asses customers price sensitivity
4. Identify an optimal pricing structure
5. Consider competitors reactions
6. Monitor prices at a transaction level
7. Asses customer emotional response
8. Analyse if the returns are worth the cost

23. .
.Value pricing
Product
design and
delivery
Product costs
Product
prices
Innovations , improvements , and convenience
Outsourcing , material substitution , technology,
product reformulation , factory improvement .
Cost reductions can’t sacrifice quality
Understand what consumers are willing to pay, if
there are premiums and then adjust it for cost and
competition

24. .
.
Everyday low pricing EDLP
Discount and
promotions over time
Builds brand loyalty and
awareness
Incentives to
consumers to buy
Everyday base prices
Consistent low prices on major items
will bring consumers back to buy
- Forward buying versus diverting

26. .
 Marketing channels =“ a set of interdependent organizations
involved in the process of making a product / service available
for use “
 This involves designing a channel and managing
intermediaries.
 Channel design :
1. Indirect - sell through third party intermediaries
2. Direct – sell through personal contacts
 Try develop : “integrated shopping experiences “

27. .
DIRECT
 Product info is high
 Customisation
 Quality assurance is important
 Lot size is important
 Logistics are important
INDIRECT
 Broad assortment is essential
 Availability is critical
 After sales service is important
-Hybrid approach = combing the both , must be careful not to
have too many not too little
- The goal is to maximize channel coverage and effectiveness
while minimizing cost and conflict

28. .
- It concentrates on retailers even though there are many other
intermediaries
- Retailers have the most contact to customers – affect brand equity
- The image of the product and the image of the retailer is important
to consider as customers tend to form associations.
- Consider : 1. Push and pull strategies
2. Channel support
- Retail segmentation
- Cooperative advertising

29. .
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1. Push and pull strategies
Retailers have power over manufactures and directly affect brand equity.
- Demand lucrative and frequent trade promotions
- Compensation to stock a new brand
- Cash payments for shelf space (slotting allowances)
- Introductory deals (“ one free with three”)
- Postponed billing
- Advertising or promotion to supports a new brand
Manufactures can overcome this power by creating unique products the
consumer demands
Devoting marketing efforts to the end consumer = PULL STRATEGY( broad
distribution)
Devoting marketing efforts to the channel members , offering them incentives
to buy the brand = PUSH STRATEGY( selective distribution)

30. 2. Channel support
Services provided by channel members may help enhance the value to
consumers and the brand. Establish “ Marketing partnership with retailers is
critical to ensure channel support”
Two channel support strategies are :
1. Retail segmentation – segmenting the retailers according to similar characteristics ,
as different retailers might need different product mixes , special delivery systems
customised promotions or even there own branded version of the product
2. Cooperative advertising- manufacturer pays for a portion of the advertising to
promote the product and the availability at the retailer.

31. .
Manufacturers who sell directly to the public
1. Company owned stores – by means to showcase the brand
and all its products. Helps build stronger relationships with it’s
customers. This may cause competition with the retailers.
2. Other means - create there own shops within a department store ;
sell through phone , mail or electronic means ( Catalogue)
3. Web strategies – online retail channel