Embed Size (px)
DESCRIPTION
Marketing Workshop Marketing Plan Branding Management day-two - MOGHIMI - Ilia State University, Tbilisi
Citation preview
Marketing Plan
Market Environment
Consumer Behavior
Marketing Workshop
Bahman Moghimi
4
What is Paradigm Shift?
Information Age
Buy-Side Market Place
Competitors
High Expectations High Rate of Change in
Cultures & Behaviors E-Life !!!!
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 It is your business philosophy in general is your business philosophy in general and each and every single move in your and each and every single move in your
organization which is supposed to deliver organization which is supposed to deliver value and as a result build long and value and as a result build long and mutually profitable relationship mutually profitable relationship with with
customerscustomers
9
B.M
oghimi@
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?
Marketing Mix elements are the ingredients to Design a Marketing Plan!
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
13
B.M
oghimi@
yahoo.co.uk
Company
Customer Competitor
Product
Staff
1. External Marketing2. Internal Marketing3. 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)
15
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.
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
• Cultural• Social• Personal• Psychological
Key FactorsKey Factors
▫ Groups Membership Reference Aspiration
Opinion leaders Buzz marketing
▫ Family Many influencers
▫ Roles and status
• Cultural• Social• Personal• Psychological
Key FactorsKey Factors
Characteristics Affecting Consumer Behavior
▫ Age & LifestyleActivities, interests and opinions
Lifestyle segmentation
▫ Occupation
▫ Economic situation
▫ Personality and self-concept
• Cultural• Social• Personal• Psychological
Key FactorsKey Factors
Characteristics Affecting Consumer Behavior
▫ Motivation
▫ Perception
▫ Learning
▫ Beliefs and attitudes
• Cultural• Social• Personal• Psychological
Key FactorsKey Factors
Characteristics Affecting Consumer Behavior
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
26
B.M
oghimi@
yahoo.co.uk
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
Brand Elements
Brand Positioning
Brand Resonance
Brand Knowledge
Branding Concepts
Bahman Moghimi
I Want to Be in Your Heart…
A Brand is a name, term,
sign, symbol, or design
identifywhich is intended to
the goods or services of one
seller or group of sellers and
them from differentiateto
those of competitors in the
mind of customers.
Brand elementsBrands 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
33
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
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
Brand Positioning (3)
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
Brand ResonanceBrand 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.
43
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.
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.
44
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
Bahman Moghimi
Indirect Branding
Brand “borrows” some brand knowledge and, depending on the nature of those associations and responses, perhaps some brandequity from other entities.
FIRST
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.
SECOND
Secondary Brand Association
The indirect approach to building brandequity 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
Leveraging Secondary Associations• 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
Leveraging Secondary [email protected]
CompanyCreate a new brandAdopt or modify an existing brandCombine an existing and a new brand
56
Channels of Distribution
Customers might perceive a same brand differently depending on where it is sold.
Co-Branding Also called brand bundling or brand allianceOccurs 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 expertiseLeverage equity you don’t haveReduce cost of product introductionExpand brand meaning into related categories Broaden meaning Increase access points Source of additional revenue
63
Disadvantages of Co-Branding
Loss of controlRisk of brand equity dilutionNegative feedback effectsLack of brand focus and clarityOrganizational 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 productsExamples: Intel inside
65
Licensing Involves contractual arrangements whereby firms
can use the names, logos, characters, and so forth of other brands for some fixed feeExamples: 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
Celebrity Endorsement
Draws attention to the brand Shapes the perceptions of the brandCelebrity should have a high level of visibility and a
rich set of useful associations, judgments, and feelingsQ-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, 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
• 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
EquityEquity 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 psychologicaltendencies, 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 SalienceAchieving 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
Introduction of the SpeakerBahman 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” !
