The document discusses aggregation and disaggregation approaches to marketing. Aggregation involves treating all consumers as the same and using mass marketing strategies. Disaggregation involves segmenting the market into distinct groups and customizing products and communications for each segment. The document argues that disaggregation allows companies to build better relationships with consumers through personalized two-way communication and is more efficient and profitable than aggregation approaches that brands have traditionally relied on. It also discusses how disaggregation impacts brand management and relationships with retailers.

3. The brand acts likea stake in the ground,
claimingterritorialrightsover its value
proposition.

4. Signify quality
Creates barriers to entry
Serve as a competitive advantage
Secure price premium

5. Aggregation.
Disaggregation.
What are brands good for.

7. Aggregation involves treating all consumers as if they
are the same.

8. With an aggregation approach, a company
might create a single type of product, for
example, and then use mass-market
advertising to deliver a single sales message
to the entire market.

9. The company chooses one marketing
strategy and uses it exclusively,rather
than designing andimplementingmany
different strategies.
One simple strategy might not be as
effectiveas a multi-pronged approach,
such.

11. Disaggregation involves segmenting a market intodistinct groups.

12. A company might design several different
versions of a product, customizing each to suit
the needs of a particular segment of the overall
market.

14. Companies are demonstrating that they can effectivelyand efficientlydrive consumer
behaviour through two-waycommunications.
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Customized Publications

15. Companies are demonstrating that they can effectivelyand efficientlydrive consumer
behaviour through two-waycommunications.
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Customized e-mails

16. Companies are demonstrating that they can effectivelyand efficientlydrive consumer
behaviour through two-waycommunications.
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Customized Direct mails

17. Companies are demonstrating that they can effectivelyand efficientlydrive consumer
behaviour through two-waycommunications.
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Customized Websites

18. Companies are demonstrating that they can effectivelyand efficientlydrive consumer
behaviour through two-waycommunications.
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Customized call centres

19. The informationrevolution is making consumer disaggregation vastly more efficient
and profitable thanaggregation, the traditionalsource of brand power.
This raises a fundamentalquestion:
What are brands good for?

20. An answer can be found by examining three core areas of
brand management:
1. The consumer relationship
2. The channelrelationship
3. The organisation of brandmanagement

21. The
consumer
relationshi
p

22. The most valuable strategicfunction that brand performis to build
relationshipswith consumers.Relationships arise whena brand
repeatedlyand consistently fulfils its stated promise.

23. But such connectionsare builtthrough one-waymass communicationof
benefits and associations. Neither the brand nor the communicationsare
personalised, adaptive or responsive to individualconsumerneeds.

24. Disaggregationoffers companiesthe possibilityof establishing
relationshipsin which eachinteractionbetween consumerand firm
builds on a history of past interactions, the firmresponds to the
needs of the consumer from one interactionto the next andthe
consumerpulls informationfrom the companyaccordingto her
needs.

25. Kraft Foods Inc., has developed and launched the most elaborate
disaggregate marketing initiative in the packaged goods industry
industry

26. food & family magazine is
personalised to the individual
consumer. The publications has
become the third largest circulation
circulation magazine in the United
United States, with over 11 million
copies delivered.

27. The Royal Bank of Canada (RBC) is a
pioneer in the field of disaggregation
disaggregation marketing. The firm is
firm is able to segment the market
market and respond tactically to
competitor moves by offering
personalised solutions to its
customers without fragmenting its
its brand.

28. How disaggregation does it better

29. The
channel
relationshi
p

30. Retailers efforts have been aimed at creatingstore-brand awareness and
differentiation,promoting profitable private-labellines across a widerange of
products categories, andbuildingstore loyalty.

31. The promotion of brands’ marketingbudgets spent on retailers’ listingfee,
facing fees, trade promotions and cooperative advertising is twiceas large as
the promotion spent marketingthe brands to the end consumer.

32. Retailers argue that the economies of
disaggregation favour them and that they
have greater credibility in assembling an
assortment of brands that makes sense for the
consumer.

33. Once the retailersbegan to use disaggregate consumer data to drive traffic,
brands were seen as a coarse and expensive mechanismfor achievingtraffic
volume.

34. Retailers used wellknown brands as magnets to attract consumers to the
store. Those brands would be advertised often at very lowprices to pullin
consumertraffic.

35. The
brand
Manageme
nt

36. This system allows budgets and profits to be measured and marketing
initiativesto be developed at the brand level withoutinterferencefrom the
other brands.

37. Disaggregation’s impact on Brand Management

38. Brand management systems have muchto commend them, but they were for
an era of mass marketing andare not wellsuited to makinggood use of the
valuable consumer informationthat is nowavailable.
Thefocusofmarketingeffortsremainsthebrands,nottheconsumers.

39. So many organisational systems are built around brands, as switch to
consumer-centricorganisation cannot happen overnight. To understand the
nature of the changes required, managers must recognise the need for three
elements…

40. 1. Relationship-building entity and mechanism

41. 2. Targeted communications

42. 3. Obtaining expertise and Brand development

43. Disaggregation does have potential disadvantages. First, if a company doesn’t
segment consumers correctly, its ensuing marketing campaigns might be
worthless. Suppose, for instance, that a tax-preparation service markets its
services according to different pricing tiers, based on income. If nearly all its
customers are in the same income bracket, the tiered pricing structure has little
marketing value. The company instead should have identified segmentation
factors that allow it to divide its customers into several distinct groups for
targeting.
Ineffective Segmentation

44. cost
To divide consumers into meaningful groups, a company needs data, such as
what customer surveys and focus groups can offer. Once a company learns, for
example, the various buying preferences of its target market, then it can
categorize buyers into different segments. But such market research can be
expensive, especially if a company lacks expertise and needs to hire a market
research firm.

46. 1. www.google.com
2. www.bendaggers.com
3. hdw.eweb4.com
4. thepaperwall.com
5. pinterest.com
6. Flickr.com
7. www.desktopimages.org
8. absolutfoundry.com
9. www.behance.net
10.www.theleagueofmoveabletype.com
11.fontfabric.com