Marketing Workshop - Day two - MOGHIMI - ilia state university, tbilisi

Marketing Plan
Market Environment
Consumer Behavior
Marketing Workshop
Bahman Moghimi

What is Paradigm Shift?
 Information Age
 Buy-Side Market Place
 Competitors
 High Expectations
 High Rate of Change in
Cultures & Behaviors
 E-Life !!!!
B.Moghimi@yahoo.co.uk

6
Value
 What is value really?
 What is the first reason you buy something?
 When do you feel valued?
 How can we create value?

7
Meeting Increasing Customer Needs

8
Why do we buy goods or services?
 Differentiation
 Price

What is Marketing? …
It is your business philosophy in general
and each and every single move in your
organization which is supposed to deliver
value and as a result build long and
mutually profitable relationship with
customers
9 B.Moghimi@yahoo.co.uk

10
1. What do others have that
we don’t?
2. What do we have that
others don’t?
3. What happens to our
customers if we are not
there for them?

INNOVATION: THE SECRET OF MARKETING!
11

Marketing Mix elements are the ingredients to
Design a Marketing Plan!
12
The company’s
marketing strategy
should develop an
integrated marketing
program that actually
deliver the intended-value
to target
customers

Marketing Mix – Criteria & Start-Point
Company
Customer Competitor
Product
Staff
1. External Marketing
2. Internal Marketing
3. The Moment of Truth
Peter Naudé, University of Manchester. UK

Before you start your marketing activities, you must:
14
Define your Business-Model
Decide about company vision
Come up with your mission
Design your Process Management
Human Resource Development and Management
Evaluation and Control Systems (TARGET)

Customer Loyalty & Retention
B.Moghimi@yahoo.co.uk 17

Customer-Driven Marketing Strategy
• What’s the target Market?
▫ Market Segmentation…
▫ Target Marketing…
• What’s the value proposition?
▫ Set of benefits & values to satisfy needs…
▫ Differentiation & Positioning…
18

Marketing Environment
• The actors and forces outside marketing that affect
marketing management’s ability to build and maintain
successful relationships with target customers
▫ Micro-environment: The actors close to the company that
affect its ability to serve its customers— the company, suppliers,
marketing intermediaries, customer markets, competitors, and
publics.
▫ Macro-environment: The larger societal forces that affect the
microenvironment—demographic, economic, natural,
technological, political, and cultural forces.

20
The Micro-environment

21
The Macro-environment

Characteristics Affecting
Consumer Behavior
▫ Culture
 Forms a person’s wants and
behavior
▫ Subculture
 Groups with shared value
systems
▫ Social Class
 Society’s divisions who share
values, interests and behaviors
Key Factors
• Cultural
• Social
• Personal
• Psychological

Consumer Behavior
▫ Groups
 Membership
 Reference
 Aspiration
 Opinion leaders
 Buzz marketing
▫ Family
 Many influencers
▫ Roles and status
Key Factors
• Cultural
• Social
• Personal
• Psychological

Consumer Behavior
▫ Age & Lifestyle
Activities, interests and opinions
Lifestyle segmentation
▫ Occupation
▫ Economic situation
▫ Personality and self-concept
Key Factors
• Cultural
• Social
• Personal
• Psychological

Consumer Behavior
▫ Motivation
▫ Perception
▫ Learning
▫ Beliefs and attitudes
Key Factors
• Cultural
• Social
• Personal
• Psychological

What is Customer Equity?
 The ultimate aim of customer relationship
management is to produce high customer
equity that is combined discounted customer
lifetime values of all the company’s current &
potential customers
– The more loyal the firms profitable customer, The
higher the firm’s customer equity

Designing a Customer-Driven Marketing Strategy
27

Dividing a market into smaller segments of buyers
with distinct needs, characteristics, or behaviors
that might require separate marketing strategies or
mixes
Market
segmentation
The process of evaluating each market segment’s
attractiveness and selecting one or more segments
to enter
Market
targeting
Differentiating the market offering to create
superior customer value
Differentiation
Arranging for a market offering to occupy a clear,
distinctive, and desirable place relative to
competing products in the minds of target
consumers
Positioning
28

Brand Elements
Brand Positioning
Brand Resonance
Brand Knowledge
Branding Concepts
Bahman Moghimi

A Brand is a name, term,
sign, symbol, or design
which is intended to identify
the goods or services of one
seller or group of sellers and
to differentiate them from
those of competitors in the
mind of customers.
31

Brand elements
33
Brands typically are made up of various elements, such as:[
• Name: The word or words used to identify a company, product, service, or concept.
• Logo: The visual trademark that identifies the brand.
• Tagline or Catchphrase: Ex: "The Quicker Picker Upper" for Bounty paper towels.
• Graphics: The dynamic ribbon is a trademarked part of Coca-Cola's brand.
• Shapes: The distinctive shapes of the Coca-Cola bottle and of the Volkswagen Beetle are
trademarked elements of those brands.
• Colors: Owens-Corning is the only brand of fiberglass insulation that can be pink.
• Sounds: A unique tune or set of notes can denote a brand. Ex: NBC's chimes
• Scents: The rose-jasmine-musk scent of Chanel No. 5 is trademarked.
• Tastes: Kentucky Fried Chicken has trademarked its special recipe of eleven herbs and
spices for fried chicken.
• Movements: Lamborghini has trademarked the upward motion of its car doors.
• Customer Relationship Management

Identity:
How
The
Elements
Transmit
The
Message
34

Brand awareness
 Brand awareness is the extent to which a brand is recognized by potential
customers, and is correctly associated with a particular product. So it’s the extent to
which the consumer associates the brand with the product that they wish to purchase.
It is the brand recall and the brand recognition of the company to the consumers
36

Key Components of a Positioning Statement
• Definition of target market(s): Who is the brand
being built for (i.e., the center of the targeting bulls-eye?
• Category frame of reference: What is the
competitive context? What product category do you
want the brand to be associated with
• Statement of the key point of difference:What
benefits should the brand stand for and deliver on?
• Reason(s) to believe:What proof points need to be
demonstrated?
38

Brand Positioning (1)
Positioning is built from what you know to be true
about your customer. Positioning reflects the "place"
a brand occupies in a market or segment
 Steps:
1. What is your current position?
2. What position do you want to have?
3. How do you create a new positioning?
39

40

Even producers in the commodity world of meats, have
found ways to reposition themselves and thus create a
unique selling proposition.
• Identify
• Personify
• Create a new generic (Diff…?)
• Be Consistent But Flexible
• Connect Emotionally
• Benchmark
41

43
Brand Resonance
Brand Resonance refers to the extent to which customers feel “in sync” with
the brand. Just as we feel the vibe between ourselves and others, we also
experience a vibe that resonates between ourselves and brands. There are
four categories to brand resonance:
• Behavior - such as frequent purchase.
• Attitude – when we say we “love” the brand.
• Sense of Community – such as the Harley Owner's Group (HOG).
• Active Engagement – where people invest time and money beyond purchase or
consumption.
Adapted from: Kevin Lane Keller. Strategic Brand Management, 2 nd Ed, Prentice Hall 2003, p92-94.

What is brand-knowledge?
Kevin Keller defined brand knowledge as awareness of the brand
name and belief about the brand image. Valuable beliefs are
authentic beliefs – consistent and durable.
44
In addition to belief, consumer experience is an important part of brand knowledge.
Consumer experience includes emotions, sensations, and activity. Using the
terminology of philosophy, beliefs are “explicit” knowledge – meaning they
can be put in words, and experience is “tacit” knowledge – meaning it cannot
be put in words.

Where is brand-knowledge?
• Brand-knowledge – both explicit and tacit brand-knowledge –
primarily is created by both the consumers and the marketer.
Other players in brand-knowledge creation include
researchers, advertising agencies, marketing
consultants, distribution channel partners, and others. Brand-knowledge
is created and held both by individual people and
by groups.
So, brand-knowledge includes two dimensions:
• beliefs (explicit) - experience (tacit) dimension
• individual – group dimension
45

How to create brand-knowledge successfully?
• Creating brand-knowledge is a process of
transforming beliefs to experiences and experiences
to beliefs. In addition, creating brand- knowledge
requires that marketers exchange information with
consumers and that brand-knowledge is transferred
between individuals and groups within the
organization.
46

Leveraging
Secondary Brand
Associations To Build
Brand Equity
CONCEPTUALIZING
THE LEVERAGING
PROCESS
Indirect Branding
Bahman Moghimi

Secondary Brand Association
FIRST
Brand “borrows” some brand knowledge and, depending on the
nature of those associations and responses, perhaps some brand
equity from other entities.
SECOND
Secondary brand knowledge may be quite important to creating
strong, favorable, and unique associations or positive responses if
existing brand associations or responses are deficient in some way.
The indirect approach to building brand
equity is LEVERAGING SECONDARY
BRAND KNOWLEDGE for the brand.

Leveraging Secondary Associations
• Creation of new brand associations
• Effects on existing brand knowledge
▫ Awareness and knowledge of the entity
▫ Meaningfulness of the knowledge of the entity
▫ Transferability of the knowledge of the entity
52

• Brand associations may themselves be linked to other entities, creating
secondary associations:
▫ Company (through branding strategies) e.g. Aquifina by Pepsi Co
▫ Country of origin (through identification of product origin) Sony from
Japan
▫ Channels of distribution (through channels strategy)
▫ Other brands (through co-branding)
 Special case of co-branding is ingredient branding e.g. Intel Inside
▫ Characters (through licensing)
▫ Celebrity spokesperson (through endorsement advertising) Accenture
and Tiger Woods
▫ Events (through sponsorship) Coke and FIFA 2010
▫ Other third-party sources (through awards and reviews) Lux Style
Awards
53

• These secondary associations may lead to a transfer of:
▫ Response-type associations
 Judgments (especially credibility)
 Feelings
▫ Meaning-type associations
 Product or service performance
 Product or service imagery
• Guidelines
▫ Commonality (New Zealand and wool)
▫ Complementarity! (Buick and Tiger Woods)
54

Company
1

Company
 Create a new brand
 Adopt or modify an existing brand
 Combine an existing and a new brand
56

COUNTRY OF
ANDOTHER
2
57

Country of Origin
 BMW
 Germany
Nike
 America
 Sony
 Japan
 Chanel
 France
Gucci
 Italy

3 CHANNELS OF
59

Channels of Distribution
 Customers might perceive a same brand
differently depending on where it is sold.
60

Co-Branding
 Also called brand bundling or brand alliance
Occurs when two or more existing brands are
combined into a joint product or are marketed
together in some fashion
 Examples:
 Sony Ericsson
 Acer Ferrari
 Siemens and Porsche design which produce a range
of kettles, toasters and coffee machines
 Star Alliance which includes 16 different airlines
such as Lufthansa, Singapore Airlines
 The Smart Car : Swatch and Mercedes Benz
62

Advantages of Co-Branding
 Borrow needed expertise
 Leverage equity you don’t have
Reduce cost of product introduction
 Expand brand meaning into related categories
 Broaden meaning
 Increase access points
 Source of additional revenue
63

Disadvantages of Co-Branding
 Loss of control
Risk of brand equity dilution
Negative feedback effects
 Lack of brand focus and clarity
 Organizational distractions
64

Ingredient Branding
 A special case of co-branding that involves
creating brand equity for materials,
components, or parts that are necessarily
contained within other branded products
 Examples:
 Intel inside
65

Licensing
 Involves contractual arrangements whereby firms
can use the names, logos, characters, and so forth of
other brands for some fixed fee
 Examples:
 Entertainment (Star Wars, Spider Man, Shriek , Micky
Mouse of Disney etc.)
 Television and cartoon characters (The Simpsons)
 Designer apparel and accessories (Calvin Klein, Pierre
Cardin, Ralph Lauren etc.)
 Corporate Trademark Licensing
 Standard & Poor’s and Dow Jones

6
CELEBRITY
ENDORSEMENT 68

BLAH
BLAH
BLAH
BLAH
BLAH
BLAH
BLAH

71

Celebrity Endorsement
Draws attention to the brand
 Shapes the perceptions of the brand
 Celebrity should have a high level of visibility and a
rich set of useful associations, judgments, and
feelings
Q-Ratings to evaluate celebrities
72

Celebrity Endorsement:
Potential Problems
 Celebrity endorsers can be overused by endorsing
many products that are too varied.
 There must be a reasonable match between the
celebrity and the product.
 Celebrity endorsers can get in trouble or lose
popularity.
Many consumers feel that celebrities are doing the
endorsement for money and do not necessarily
believe in the endorsed brand.
 Celebrities may distract attention from the brand.
73

Sporting
Culture
Or
Other
Events

Sporting, Cultural, or Other Events
• Sponsored events can contribute to brand equity
by becoming associated to the brand and
improving brand awareness, adding new
associations, or improving the strength,
favorability, and uniqueness of existing
associations.
• The main means by which an event can transfer
associations is credibility.
75

third party sources

Third-Party Sources
• Marketers can create secondary associations in a
number of different ways by linking the brand to
various third-party sources.
• Third-party sources can be especially credible
sources.
• Marketers often feature them in advertising
campaigns and selling efforts .
▫ Example: J.D. Power and Associates’ well-publicized
Customer Satisfaction Index
77

Customer-Based Brand Equity (CBBE)
It is a way of assessing the value of a brand in customers'
minds. Branding can increase profitability in large and small-scale
businesses by filling in gaps in customers' knowledge and
by offering assurances. The CBBE model centers that value in the
minds of customers. It compels businesses to define their brands
according to a defined hierarchy of qualitative, or common-sense,
customer impressions. These impressions are often laid out in
pyramid-shaped levels; they consist of salience, performance,
imagery, meaning, judgments, feelings, and resonance.
78

Equity
Equity Can be considered the sum total of values associated
with a brand. These might include awareness, loyalty, and
recognition. The greater the equity, the more likely
customers will trust and choose the company's product or
service.
Additionally, equity capitalizes on normal psychological
tendencies, such as the sometimes longer memory about
negative experiences or the cognitive laziness that creates
loyalty through a customer's unwillingness to choose
unfamiliar products over familiar brand products.
80

Brand Salience
Achieving right brand identity involves creating right brand
salience. It relates to the aspects of consumer awareness/salience
of the brand. It includes the place that is been occupied by brand
in the minds of the consumers.
81

Key Points
1. Brands can “borrow” equity from their association with
people, places, programs, and other non-product-based
sources.
2. Secondary associations are strongest when consumers have
awareness and strong, favorable, and unique perceptions of
the external source.
3. Secondary associations are most likely to affect evaluations
when consumers lack the ability or motivation to judge
product attributes.
4. Leveraging secondary associations can be problematic
because it requires marketers to give up some degree of
control over the branding process.
82

Bahman's Mind-Map for Branding

Introduction of the Speaker
Bahman Moghimi holds a PhD in "E-Business“ from an American University
in Dubai, DBA (Doctor of Business Administration) from Iran and a MA in
"Industrial Marketing & E-Commerce“ from Sweden. He also took part in
three different fields of MBA in the recent years and has passed several
domestic and international courses in the field of Relationship Marketing
and CRM. He conducted the first research paper of the country (I.R of Iran)
about CRM critical success factors (CSF) and published a book about it.
He not only had advised several theses of students of BA and MBA in
related fields but also advised different companies and industries and
lectured in different universities and business schools around the World
including Europe, Japan & China , Middle East and even Africa.
In the recent years Mr. Moghimi had a general project of Marketing
Management in Nestle as their Regional Sales Development Manager and
had thought or did the consultancy for some companies in Europe &
Caucasus region. Now he is a full time Professor in University of Georgia
in the school of Business and Economics and worked and published many
quantitative researches. For the first time in the world, he mixed the two
terms of marketing & management and invented “Markagement” !

Marketing Workshop - Day two - MOGHIMI - ilia state university, tbilisi

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