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Module - Strategic & Digital Marketing

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Module - Strategic & Digital Marketing

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Module - Strategic & Digital Marketing

  1. 1. 1 [Insert your logo here]
  2. 2. INTRODUCTION TO MARKETING Module: Strategic Marketing Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  3. 3. 3 [Insert your logo here] Discussion question: What is marketing for you?
  4. 4. 4 [Insert your logo here] What is marketing? • A philosophy? • An attitude? • A perspective? • A management orientation?
  5. 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. 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. 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. 8 [Insert your logo here] Comparing the selling and the marketing concept
  9. 9. 9 [Insert your logo here] The marketing triangle Client Firm Competition USP Comparative advantage
  10. 10. 10 [Insert your logo here] Core marketing concepts
  11. 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. 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. 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. 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. 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. 16 [Insert your logo here] The marketing process Analyse Conception Implementation Controlling Goals / Strategies / Marketing Mix Time
  17. 17. 17 [Insert your logo here]
  18. 18. 18 [Insert your logo here] THANK YOU FOR YOUR ATTENTION
  19. 19. ANALYSIS INSTRUMENTS I Module: Strategic Marketing Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  20. 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. 21 [Insert your logo here] Strengths Weaknesses Opportunities Threats Internal External SWOT analysis
  22. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 35 [Insert your logo here] THANK YOU FOR YOUR ATTENTION
  36. 36. ANALYSIS INSTRUMENTS II Module: Strategic Marketing Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  37. 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. 38 [Insert your logo here] Value Chain: its core
  39. 39. 39 [Insert your logo here] Value Chain:Ageneric value chain
  40. 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. 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. 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. 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. 44 [Insert your logo here] Value Chain: Example of Cost Drivers Aconsumer durable manufacturing firm
  45. 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. 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. 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. 48 [Insert your logo here] GAP analysis: overview
  49. 49. 49 [Insert your logo here] GAP analysis example: the SERVQUAL model
  50. 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. 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. 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. 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. 54 [Insert your logo here] Revenue t t Time Product Revenue through daily business Promotion Place Tactical Goal Price MarketingMix
  55. 55. 55 [Insert your logo here] THANK YOU FOR YOUR ATTENTION
  56. 56. SETTING MARKETING GOALS Module: Strategic Marketing Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  57. 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. 58 [Insert your logo here] Setting Goals Overview of organisational goals
  59. 59. 59 [Insert your logo here] Goal requirements: goals must be operational Goal requirements
  60. 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. 61 [Insert your logo here] Task: Develop at least 10 marketing goals, each addressing another topic (keeptheanalysismethodsinmind)
  62. 62. 62 [Insert your logo here] THANK YOU FOR YOUR ATTENTION
  63. 63. MARKETING STRATEGIES I Module: Strategic Marketing Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  64. 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. 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. 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. 67 [Insert your logo here] Part 2: Targeting – market coverage strategies Goal requirements
  68. 68. 68 [Insert your logo here] Part 2: Targeting – market coverage strategies
  69. 69. 69 [Insert your logo here] Part 2: Targeting – market coverage strategies
  70. 70. 70 [Insert your logo here] Task: Find 2 additional examples for every market coverage strategy.
  71. 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. 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. 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. 74 [Insert your logo here] THANK YOU FOR YOUR ATTENTION
  75. 75. MARKETING STRATEGIES I Module: Strategic Marketing Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  76. 76. 76 [Insert your logo here] Part 3: Positioning Position strategies discusses next include: • Pricing • Timing • Competitive Strategies
  77. 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. 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. 79 [Insert your logo here] Part 3: Positioning – pricing strategy (penetration) ExampleHow it works Prices Toyota Lexus 1989-1995
  80. 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. 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. 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. 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. 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. 85 [Insert your logo here] Task: Identify at least 3 examples of companies following each of Porter’s generic strategies
  86. 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. 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. 88 [Insert your logo here] THANK YOU FOR YOUR ATTENTION
  89. 89. MARKETING MIX I Module: Strategic Marketing Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  90. 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. 91 [Insert your logo here] Marketing Mix Product “Decisions on the market offering”
  92. 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. 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. 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. 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. 96 [Insert your logo here] Task: Which other key decisions do you think have to be made with respect to the product?
  97. 97. 97 [Insert your logo here] Marketing Mix Price “Decisions on contracts, prices, terms of delivery and terms of payment”
  98. 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. 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. 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. 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. 102. 10 2 [Insert your logo here] Marketing Mix Place “Decisions on how to transfer the product / service to the customer”
  103. 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. 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. 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. 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. 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. 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. 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. 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. 111. 11 1 [Insert your logo here] THANK YOU FOR YOUR ATTENTION
  112. 112. MARKETING MIX II Module: Strategic Marketing Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  113. 113. 11 3 [Insert your logo here] Marketing Mix Promotion “Decisions on how to inform customers and influence their decision-making process”
  114. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 126. 12 6 [Insert your logo here] Process: simultaneous engineering possible?
  127. 127. 12 7 [Insert your logo here] Marketing Mix Process “Decisions contributing to a correct, cost-efficient, flexible and transparent production process”
  128. 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. 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. 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. 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. 132. 13 2 [Insert your logo here] THANK YOU FOR YOUR ATTENTION
  133. 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. 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. 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. 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. 137. 13 8 [Insert your logo here] Discussion question: What is a brand?
  138. 138. 13 9 [Insert your logo here] Brands are big business
  139. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 156. 18 4 [Insert your logo here] Group work:Apple brand audit - what isApple‘s brand inventory and brand exploratory?
  157. 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. 158. 18 6 [Insert your logo here] Discussion question: So, what do you think, how much isApple’s brand equity worth? Coca-Cola? $$
  159. 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. 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. 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. 162. The main purpose of branding is to get more people to buy more stuff for more years at a higher price.
  163. 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. 164. 19 4 [Insert your logo here] THANK YOU FOR YOUR ATTENTION
  165. 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. 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. 167. 19 8 [Insert your logo here] Why isApple an example of good branding? What doesApple try with the ad?
  168. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 183. 22 4 [Insert your logo here] THANK YOU FOR YOUR ATTENTION
  184. 184. BRAND MANAGEMENT CASE Module: Strategic Marketing Lecturer: [Insert name] Date: [Insert date] PRESENTATION SUPPORTED BY [Insert your logo here]
  185. 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. 186. 22 7 [Insert your logo here] THANK YOU FOR YOUR ATTENTION

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