MM 5720 Brand Management PDF

MM 5720 Brand Management Course Pre /Co – requisite: Module 3: Brand Elements and Marketing Programs Band Elements and Marketing Programs to Build Brand Equity Prepared by: Romualdo A. Romualdo, MBA, RME 1...

MM 5720 Brand Management Course Pre /Co – requisite: Module 3: Brand Elements and Marketing Programs Band Elements and Marketing Programs to Build Brand Equity Prepared by: Romualdo A. Romualdo, MBA, RME 1 Theme: The Academe Theories Meet the Industry Practice. As the conduct of this course is workshop style, please consider your focus company (or brand), product (and/or service) to be utilized hypothetically for academic purposes only; it aims to enhance the visualization of the topics that are being discussed and support the development of course outputs. Recording is not allowed, thus, everyone is encouraged to be attentive during this onsite class at all times. 2 Three-Year Strategic Brand Planning Framework Company Name: Brand / Product / Service Extension: Fiscal Year: Launch Month (In Trade): PHASE SUB-DIMENSION OF BRAND ACTIONBLE POINTS TIMELINE KEY MEASUREMENT OF BUILDING BLOCKS (What will the team prioritize to (month, year from and to) SUCCESS (could be 3-5 depending on the ensure cascade of the chosen (what are indicators that you are team) sub-dimensions?) successful based from sub- dimensions, actions and timeline) Phase 1: Identity, Who are you? Salience Phase 2: Meaning, What are you? Performance Phase 2: Meaning, What are you? Imagery Phase 3: Response, What about you? Judgements Phase 3: Response, What about you? Feelings Phase 4: Relationships, What about you and me? Resonance 3 Module 6-A: Brand Elements and Marketing Programs Synchronous Asynchronous Individual: Module 6-A: Brand Elements and Marketing Programs to Build Brand Review of provided lecture. Equity Supplementary readings: Criteria for choosing brand elements 8 Impactful Branding Trends for 2022 8 impactful branding trends for 2022 - 99designs Options and tactics: types of brand Eight Branding and Design Trends to Follow In elements. 2022 Eight Branding and Design Trends to Follow In 2022 (forbes.com) Group: CO3 G 25% Alignment and agreement on Brand Elements to be used for Marketing Programs. 4  Learning Objectives 1. Identify the different types of brand elements. 2. List the general criteria for choosing brand elements. 3. Describe key tactics in choosing different brand elements. 4. Explain the rationale for “mixing and matching” brand elements. 5 Keller (2020) Visual Source: Google.com  6 Visual Source: Google.com  7 Visual Source: Google.com Preview Branding elements, sometimes called brand identities, are those trademarkable devices that serve to identify and differentiate the brand. 8 Keller (2020) Visual Source: Google.com  CRITERIA FOR CHOOSING BRAND ELEMENTS 9 Visual Source: Google.com Figure 4.1- Criteria for Choosing Brand Elements Keller (2020) Visual Source: Google.com SIX CRITERIA FOR CHOOSING BRAND ELEMENTS OFFENSIVE ASPECTS Memorability Meaningfulness Likability DEFENSIVE ASPECTS Transferability Adaptability Protectability 11 Keller (2020) Visual Source: Google.com MEMORABILITY ❑Achieve a high level of brand awareness ❑Inherently memorable and attention-getting and facilitates recall or recognition in purchase or consumption situations 12 Keller (2020) Visual Source: Google.com  MEANINGFULNESS ❑Does it have a descriptive meaning and suggest something about the product category? ❑Does it have a persuasive meaning and suggest something about the particular kind of product, or its key attributes or benefits? 13 Keller (2020) Visual Source: Google.com LIKABILITY ❑Is the brand element aesthetically appealing? ❑Is it likable visually, verbally, or in other ways? 14 Keller (2020) Visual Source: Google.com  TRANSFERABILITY ❑How useful is the brand element for line or category extensions? ❑To what extent does the brand element add to brand equity across geographical boundaries and market segments? 15 Keller (2020) Visual Source: Google.com  ADAPTABILITY ❑How updatable is the brand element to account for changes in consumer values and opinions? ❑How flexible is the brand element? 16 Keller (2020) Visual Source: Google.com PROTECTABILITY ❑Is the brand element legally protectable internationally? ❑Can the brand element be formally registered, and can its trademark be vigorously defended from unauthorized competitive infringement? 17 Keller (2014) Visual Source: Google.com OPTIONS AND TACTICS FOR BRAND ELEMENTS 18 Types of Brand Elements Logos and Brand Names URLs Symbols Characters Slogans Jingles Packaging Keller (2020) Brand Names ❑Captures the central theme or key associations of a product in a very compact and economical fashion ❑Most difficult element for marketers to change ❑Closely tied to the product in the minds of consumers ❑Naming guidelines ❑Naming procedures Keller (2020) Visual Source: Google.com Brand Names Naming guidelines ❑Simplicity and ease of pronunciation and spelling. ❑Familiarity and meaningfulness. ❑Differentiated, distinctive, and unique. ❑Brand associations Morpheme: Smallest linguistic unit having meaning. Plosives: The letters b, c, d, g, k, p, and t. Sibilants: Sounds like s and soft c. Keller (2020) Visual Source: Google.com Brand Names ❑ Workshop slide Naming procedure ❑Define objectives ❑Generate names ❑Screen initial candidates Objectives of the product- ❑Study candidate names extension. ❑Research the final Follow the Naming candidates Procedure. ❑Select the final name Keller (2020) Visual Source: Google.com Uniform Resource Locators (URLs) ❑Specify locations of pages on the Web ❑Known as domain names ❑Protect the brands from unauthorized use in other domain names ❑Cybersquatting- Registering, trafficking in, or using a domain name with bad-faith to profit from: ❑The goodwill of a trademark belonging to someone else Keller (2020) Visual Source: Google.com Logos and Symbols ❑Indicate origin, ownership, or association ❑Range from corporate names or trademarks written in a distinctive form, to abstract designs that may: ❑Be completely unrelated to the corporate name or activities Keller (2020) Visual Source: Google.com Logos and Symbols Benefits: ❑Easily recognized and can be a valuable way to identify products. ❑Versatile. ❑Abstract logos offer advantages when the full brand name is difficult to use for any reason. ❑Unlike brand names, logos can be easily adapted over time to achieve a more contemporary look. Keller (2020) Visual Source: Google.com Characters ❑Special type of brand symbol ❑One that takes on human or real-life characteristics ❑Introduced through advertising and can play a central role in ad campaigns and package designs Keller (2020) Characters Benefits: ❑Tend to be attention getting and quite useful for creating brand awareness. ❑Help brands break through marketplace clutter as well as help communicate a key product benefit. ❑The human element of brand characters can enhance likeability and help create perceptions of the brand as fun and interesting. ❑A consumer may more easily form a relationship with a brand when the brand literally has a human or other character presence. ❑Brand characters do not typically have direct product meaning, therefore they can be transferred relatively easily across product categories. Keller (2020) Visual Source: Google.com Characters Cautions: ❑Can be so attention getting and well liked that they dominate other brand elements and actually dampen brand awareness. ❑Must be updated over time so that their image and personality remain relevant to the target market. Keller (2020) Visual Source: Google.com Slogans ❑Short phrases that communicate descriptive or persuasive information about the brand ❑Function as useful “hooks” or “handles” to help consumers grasp the meaning of a brand ❑Indispensable means of summarizing and translating the intent of a marketing program Keller (2020) Visual Source: Google.com Slogans Benefits: ❑Help build brand awareness by making strong links between the brand and the corresponding product category. ❑May serve as tag lines to summarize the descriptive or persuasive information conveyed in the ads. Keller (2020) Visual Source: Google.com Slogans Designing slogans ❑Slogans should be designed in such a way that they contribute to brand equity in multiple ways. ❑Slogans also can contain product- related messages and other meanings. Keller (2020) Visual Source: Google.com Slogans Updating slogans ❑In updating slogans marketers should: ❑Recognize how the slogan is contributing to brand equity, if at all, through enhanced awareness or image. ❑Decide how much of this equity enhancement, if any, is still needed. ❑Retain the needed or desired equities still residing in the slogan as much as possible while providing whatever new twists of meaning are necessary to contribute to equity in other ways. Keller (2020)  33 Visual Source: Google.com Jingles ❑Musical messages written We've Got It All (Lyric Video) | around the brand The SM Store - YouTube ❑Have catchy hooks and choruses that become permanently registered in the minds of listeners Jollibee Song Lyrics | ❑Enhance brand awareness Jollibee Theme - by repeating the brand name YouTube in clever and amusing ways Keller (2020) Source: You Tube Packaging ❑Activity of designing and producing containers or wrappers ❑From the perspective of both the firm and consumers, packaging must: ❑Identify the brand ❑Convey descriptive and persuasive information ❑Facilitate product transportation and protection ❑Assist in at-home storage ❑Aid product consumption Keller (2020) Visual Source: Google.com  Packaging Benefits: ❑Structural packaging innovations can create a point of difference that permits a higher margin. ❑New packages can also expand a market and capture new market segments. ❑Packaging changes can have immediate impact on customer shopping behaviour and sales. Keller (2020) Visual Source: Google.com Packaging Packaging at the point of purchase ❑Many consumers may first encounter a new brand on the supermarket shelf or in the store therefore right packaging can create strong appeal on the store shelf and help products stand out from the clutter. ❑When few product differences exist in some categories, packaging innovations can provide at least a temporary edge on competition. Keller (2020) Visual Source: Google.com Packaging ❑Packaging innovations ❑Can both lower costs and/or improve demand ❑Manufacturers can redesign packages and employ more recyclable materials to lower the use of paper and plastic. ❑In mature markets, package innovations can provide a short-term sales boost. Keller (2020) Visual Source: Google.com  Packaging Package designing ❑Integral part of product development and launch. ❑Specialized package designers bring artistic techniques and scientific skills to package design in an attempt to meet the marketing objectives for a brand. ❑Packaging color affect consumers’ perceptions of the product itself. Keller (2020) Visual Source: Google.com  Packaging Packaging changes ❑Firms change their packaging: ❑To signal a higher price, or to more effectively sell products through new or shifting distribution channels. ❑When a significant product line expansion would benefit from a common look. ❑To accompany a new product innovation to signal changes to consumers. ❑When the old package looks outdated. Keller (2020) Visual Source: Google.com  To Sum up... ❑ Workshop slide ❑Entire set of brand elements makes up the brand identity ❑Cohesiveness of the brand identity depends on the extent to which the brand elements are consistent ❑Each brand element plays a different role in building brand In the Marketing Program per equity, so marketers should CBBE Phase that you will “mix and match” to develop, what kind of brand maximize brand equity identity will you cascade? What are the brand elements will you develop? Keller (2020) Visual Source: Google.com Figure 4.8 - Critique of Brand Element Options Keller (2020) Reference: Keller, K. L., Harlow, V., & Swaminathan, A. (2020). Strategic brand management: Building, measuring, and managing brand equity (5th ed. Global ed.). Pearson Education Limited. Keller, Kevin Lane (2014). Strategic Brand Management, 4th Edition. Pearson Education South Asia Pte. Ltd. Google.com You Tube 43  MM 5720 Brand Management Course Pre /Co – requisite: Module 3: Brand Elements and Marketing Programs Band Elements and Marketing Programs to Build Brand Equity Prepared by: Romualdo A. Romualdo, MBA, RME 44  MM 5720 Brand Management Course Pre /Co – requisite: Module 3: Brand Elements and Marketing Programs Band Elements and Marketing Programs to Build Brand Equity (cont.) Prepared by: Romualdo A. Romualdo, MBA, RME 1 Theme: The Academe Theories Meet the Industry Practice. As the conduct of this course is workshop style, please consider your focus company (or brand), product (and/or service) to be utilized hypothetically for academic purposes only; it aims to enhance the visualization of the topics that are being discussed and support the development of course outputs. Recording is not allowed, thus, everyone is encouraged to be attentive during this onsite class at all times. 2 MM 5720 Brand Management Theme: The Academe Theories Meet the Industry Practice. 3 1. Course Plan and Approach MM 57200 BRAND MANAGEMENT This course offers a comprehensive exploration of brands, brand equity, and strategic brand management. Recognized as one of the most valuable corporate assets, brands play a crucial role in a firm's competitive advantage and long-term profitability. This course examines how brands are perceived, constructed, managed, and evaluated to ensure organizational superiority and sustainable profit growth. Point of View Brand (Individually and as a Team) and Framework in delivering the Course Brand Manager / Director – part of Management Review Outputs. Brand Brand Executive Consultant Created and developed by Brand Executive I Brand Manager I Brand Consultant, to be presented to the management team for approval. 4  1. Course Plan and Approach Necessitates timely and specification-compliant group The Brand Marketing Plan, CO3_G_25% submissions See separate Rubrics for Grading and Peer Evaluation Form Phase 4: Brand Relationships IV - Marketing Program The Brand Models, CO1_G_15% Phase 3: Brand Response Brand Positioning Model Brand Resonance Model Brand Value Chain III - Marketing Program Review Phase 2: Brand Meaning II - Marketing Program Strategic Brand Plan, CO2_G_15% Phase 1: Brand Identity I - Marketing Program 5 Visual source: Google.com 3. The Opening Case Study The Goal, Your Role, The Audience and the Situation As a member of the Brand/ Marketing Department of your company, together with your team, you will create / develop the following, to be presented to the management team for approval for the next strategic brand planning. I. Brand Models – For FY 2025 II. Three-Year Strategic Brand Planning Framework – For SBP 2025 - 2028 III. Brand Marketing Programs For SBP 2025 - 2028 Note that the focus company, brand, product (or service) that will be utilized in the class is for academic purposes only. The company from previous courses MM 573, MM 574, and MM 579, are highly encouraged Review for consistency and availability of data. 6 Visual source: Google.com  UST College of Commerce and Business Administration, and Focus Company or Brand Logo MM 5720_CO 2_G: Strategic Brand Plan Framework Launch: Month and Year Fiscal Year: Prepared by: FAMILY NAME, FIRST NAME, MIDLE INITIAL (alphabetical order; opposite the full name, put a “-” and indicate if the leader) Date: Month date, year As Partial Requirement for the Course BRAND MANAGEMENT(MM 5720) 1st Term, AY 2024-2025 3MSection  UST College of Commerce and Business Administration, and Focus Company or Brand Logo MM5720 Team: Group No._ and Brand Team members in alphabetical order: 1. 2. 3. 4. … Team leader: 8 Reference: MM 5720: Strategic Brand Plan Framework Course Output Instructions Course Output Weighting: CO 2_G: 15% of the Final Grade As a member of the Brand/ Marketing Department of your company, together with your team, you will develop a Three-Year Strategic Brand Planning Framework using the CBBE Model of your focused brand / product/ service that is to be presented to the management for their approval for the next strategic brand planning. Consider the following Brand Planning Preliminaries: Date of Presentation: Fiscal Year: 2024 Strategic Brand Planning: 2025, 2026 and 2027 Required: 1 page each headline 9 Visual source: Google.com MM 5720: Strategic Brand Plan Framework Course Output Instructions Course Output Weighting: CO 2_G: 15% of the Final Grade With quantification, visual pegs (if appropriate), use references, and brief discussions. I. Market Opportunity II. Full Target Market Articulation, the Brand and top Two Competitors III. Brand Positioning Statement of the brand, product (or service) innovation (or extension) IV. Brand Mantra V. Brand and Branding Elements VI. Three-Year Strategic Brand Planning – Framework VII.Three-Year Strategic Brand Planning – CBBE Please be ready for a possible class presentation random discussions. All the best! Bobet Romualdo 10 Visual source: Google.com VI. Three-Year Strategic Brand Planning - Framework Company/ Brand Name: Product Innovation or Service Extension: Fiscal Year: 2025 -2028 Launch Month (In Trade): PHASE SUB-DIMENSION OF BRAND ACTIONBLE POINTS TIMELINE KEY MEASUREMENT OF BUILDING BLOCKS (What will the team prioritize to (specify estimate months “from SUCCESS ensure cascade of the chosen and to”, within the SBP) (what are indicators that you are sub-dimensions to the successful based from sub- Philippine market?) dimensions, actions and timeline?) Phase 1: Identity, Who are you? 1 Salience Phase 2: Meaning, What are you? 3 Performance Phase 2: Meaning, What are you? 3 Imagery Phase 3: Response, What about 3 you? Judgements Phase 3: Response, What about 3 you? Feelings Phase 4: Relationships, What 1 about you and me? Resonance 11 VII. Three-Year Strategic Brand Planning - Framework Company/ Brand Name: Product Innovation or Service Extension: Fiscal Year: 2025 -2028 Product/ Service Innovation/ Description: Launch Month (In Trade): Positioning Statement: 1 Mantra: 3 3 3 3 1 12  UST College of Commerce and Business Administration, and Focus Company or Brand Logo MM 5720_CO 2_G: Strategic Brand Plan Framework Launch: Month and Year Fiscal Year: Prepared by: FAMILY NAME, FIRST NAME, MIDLE INITIAL (alphabetical order; opposite the full name, put a “-” and indicate if the leader) Date: Month date, year As Partial Requirement for the Course BRAND MANAGEMENT(MM 5720) 1st Term, AY 2024-2025 3MSection Module 6-B: Brand Elements and Marketing Programs Synchronous Module 6-B: Brand Elements and Marketing Programs to Build Brand Equity (continuation) Perspective, Approaches and Capabilities Integrating Marketing – Experiential Relationship Marketing Mass Customization One-to-One Marketing, Permission Marketing Product, Pricing, Channel and Online 14 Learning Outcome Develop Marketing Programs 15 Learning Objectives 1. Identify some of the new perspectives and developments in marketing 2. Describe how marketers enhance product experience 3. Explain the rationale for value pricing 4. List some of the direct and indirect channel options 5. Summarize the reasons for the growth in private labels  New Perspectives on Marketing As firms are dealing with enormous shifts in their external marketing environments: The marketing strategies and tactics have changed dramatically POV Question: What are the recent shifts in the marketing environment that you can identify in the last 3 years or recently? In your Brand/ Product/ Service, can you anticipate shifts in external market? New Approaches Embraced by Marketers Rapid technological developments Greater customer empowerment Fragmentation of traditional media Growth of interactive and mobile marketing options Channel transformation and disintermediation Increased competition and industry convergence Globalization and growth of developing markets Heightened environmental, community, and social concerns Severe economic recession The mentioned changes, and others such as privatization and regulation have combined to give customers and companies new capabilities with a number of implications for the practice of brand management. 19  Figure 5.1 - The New Capabilities of the New Economy POV Question: In Brand/ Product/ Service, identify potential New Capabilities or implications of the New Economy driven by Consumers?  Figure 5.1 - The New Capabilities of the New Economy POV Question: In your Brand/ Product/ Service, identify potential New Capabilities or Implications of the New Economy driven by Companies? INTEGRATING MARKETING 22 Integrating Marketing 1 Personalizing Marketing Reconciling the 2 Different Marketing Approaches 1 Personalizing marketing The rapid expansion of the Internet and continued fragmentation of mass media have brought the need for personalized marketing into sharp focus. Modern economy celebrates the power of the individual consumer. To adapt to the increased consumer desire for personalization, marketers have embraced concepts such as experiential marketing and relationship marketing. 1 Personalizing marketing Reconciling the different marketing approaches The different approaches of personalizing marketing help reinforce a number of important marketing concepts and techniques. According to the customer-based brand equity (CBBE) model these different approaches emphasize different aspects of brand equity. 1 Personalizing Marketing A Experiential Marketing B Relationship Marketing A experiential marketing Visual Source: Google.com A experiential marketing Promotes a product by communicating a product’s features and benefits and connecting it with unique and interesting consumer experiences. Assertions of Pine and Gilmore: Commodity business - Charge for stuff Goods business - Charge for tangible things Service business - Charge for the activities you perform Experience business - Charge for the time customers spend with you B relationship marketing B relationship marketing Attempts to provide a more holistic, personalized brand experience to create stronger consumer ties. Benefits: Acquiring new customers can cost five times as much as satisfying and retaining current customers. The average company loses 10 percent of its customers each year. A 5 percent reduction in the customer defection rate can increase profits by 25 to 85 percent, depending on the industry. The customer profit rate tends to increase over the life of the retained customer. B Relationship Marketing B.1 Mass Customization B.2 One-to-One Marketing B.3 Permission Marketing B Relationship Marketing Mass customization Making products to fit the customer’s exact specifications. The advent of digital- age technology enables companies to offer customized products on a previously unheard-of scale. B.1 Source: Keller, Kevin Lane (2014). Strategic Brand Management, 4th Edition. Pearson Education South Asia Pte. Ltd. / Prepared by: BARomualdo / Visual Source: Google.com B Relationship Marketing One-to-one marketing Consumers help add value by providing information to marketers. Marketers add value by taking that information and generating rewarding experiences for consumers. B.2 Source: Keller, Kevin Lane (2014). Strategic Brand Management, 4th Edition. Pearson Education South Asia Pte. Ltd. / Prepared by: BARomualdo / Visual Source: Google.com B Relationship Marketing Permission marketing The practice of marketing to consumers only after gaining their express permission. An influential perspective on how companies can break through the clutter and build customer loyalty. B.3 Source: Keller, Kevin Lane (2014). Strategic Brand Management, 4th Edition. Pearson Education South Asia Pte. Ltd. / Prepared by: BARomualdo / Visual Source: Google.com B relationship marketing Source: Keller, Kevin Lane (2014). Strategic Brand Management, 4th Edition. Pearson Education South Asia Pte. Ltd. / Prepared by: BARomualdo / Visual Source: Google.com  2 Reconciling the Different Marketing Approaches CO3 G Mass customization and one-to-one and permission marketing are: Marketing Potentially effective means of getting Program/s consumers more actively engaged with a brand 3-Year Marketing Program/s According to customer-based brand equity Marketing Program (CBBE) model: Plans Marketing Different approaches emphasize different Program/s aspects of brand equity Marketing Program/s  2 Reconciling the different marketing approaches The different approaches of personalizing marketing help reinforce a number of important marketing concepts and techniques. According to the customer- based brand equity (CBBE) model these different approaches emphasize different aspects of brand equity.  2 Reconciling the Different Marketing Approaches The four approaches can build stronger consumer– brand bonds Firms must still devise product, pricing, and distribution strategies as part of their marketing programs To Sum Up.. Implication of the new approaches: The traditional “marketing mix” concept and the notion of the “4 Ps” of marketing may not fully describe modern marketing programs Firms must still devise product, pricing, and distribution strategies as part of their marketing programs Product Strategy Perceived Quality Aftermarketing Perceived quality Customers’ perception of the overall quality or superiority of a product or service compared to alternatives and with respect to its intended purpose.  Aftermarketing To achieve the desired brand image: Product strategies should focus on both purchase and consumption. Aftermarketing User Manuals Customer Service Programs Loyalty Programs  Aftermarketing User manuals - An afterthought, put together by engineers who use overly technical terms and convoluted language. Source: Keller, Kevin Lane (2014). Strategic Brand Management, 4th Edition. Pearson Education South Asia Pte. Ltd. / Prepared by: BARomualdo / Visual Source: Google.com  Aftermarketing Customer service programs - Aftermarketing is more than the design and communication of product instructions. Source: Keller, Kevin Lane (2014). Strategic Brand Management, 4th Edition. Pearson Education South Asia Pte. Ltd. / Prepared by: BARomualdo / Visual Source: Google.com  Aftermarketing Loyalty programs - Purpose is identifying, maintaining, and increasing the yield from a firm’s ‘best’ customers through long-term, interactive, value-added relationships.  To Sum Up.. The product is at the heart of brand equity Product strategy entails choosing: Tangible and intangible benefits the product will embody Marketing activities that consumers desire and the marketing program can deliver Pricing Strategy Consumer Price Perceptions Setting Prices to Build Brand Equity  Consumer Price Perceptions The pricing strategy can dictate: How consumers categorize the price of the brand. How firm or how flexible they think the price is, based on how deeply or how frequently it is discounted. Consumers rank brands according to price tiers in a category. Price bands: Range of acceptable prices that indicate the flexibility and breadth marketers can adopt in pricing their brands within a tier. Value-based pricing strategies: Attempting to sell the right product at the right price to better meet consumer wishes.  Setting Prices to Build Brand Equity Choosing a pricing strategy to build brand equity means determining the following: A method for setting current prices. A policy for choosing the depth and duration of promotions and discounts. Setting Prices to Build Brand Equity Value Pricing Price Segmentation Everyday Low Pricing  Value pricing Objective is to uncover the right blend of product quality, product costs, and product prices that fully satisfies the needs and wants of consumers and the profit targets of the firm. It should strike the proper balance among three key components: Product design and delivery Product costs Product prices Communicating value - Marketers may need to engage in marketing communications to help consumers better recognize the value.  Price segmentation Sets and adjusts prices for appropriate market segments. Because of wide adoption of the Internet, firms are increasingly employing yield management principles or dynamic pricing to vary their prices for different market segments according to their different demand and value perceptions. Source: Keller, Kevin Lane (2014). Strategic Brand Management, 4th Edition. Pearson Education South Asia Pte. Ltd. / Prepared by: BARomualdo / Visual Source: Google.com  Everyday low pricing (EDLP) Has received increased attention as a means of determining price discounts and promotions over time. Reasons for Price Stability: Forward buying Diverting Source: Keller, Kevin Lane (2014). Strategic Brand Management, 4th Edition. Pearson Education South Asia Pte. Ltd. / Prepared by: BARomualdo / Visual Source: Google.com Summary To build brand equity, marketers must determine strategies for setting prices and adjusting them over the short and long term. Value pricing strikes a balance among product design, product costs, and product prices. Channel Strategy Channel Design Indirect Channels Direct Channels Online Strategies  Channel design Classified into direct and indirect channels. Direct channels sell through personal contacts from the company to prospective customers by mail, phone, electronic means, and in-person visits. Indirect channels sell through third- party intermediaries such as agents or broker representatives, wholesalers or distributors, and retailers or dealers.  Indirect channels Retailers - Can have a profound influence on the equity of the brands they sell, in terms of the brand-related services they can support or help create. Pull strategy - Consumers use their buying power and influence on retailers to “pull” the product through the channel. Push strategy - The manufacturer is attempting to reach the consumer by “pushing” the product through each step of the distribution chain. Direct channels Company-owned stores - To gain control over the selling process and build stronger relationships with customers: Some manufacturers are introducing their own retail outlets, as well as selling their product directly to customers through various means. Benefits: They are a means to showcase the brand and all its different product varieties in a manner not easily achieved through normal retail channels. Functioning as a test market to gauge consumer response to alternative product designs, presentations, and prices. Disadvantages: Some companies lack the skills, resources, or contacts to operate effectively as a retailer. Potential conflict with existing retail channels and distributors. Store-Within-a-Store - This concept can take hold through actual leasing arrangements or less formal arrangements where branded mini-stores are used. Goal in all these situations is to find “win–win” solutions that benefit channel partners and consumers alike. Other Means - Sell directly to consumers via phone, mail, or electronic means.  Online strategies Multichannel retailers were able to acquire customers at half the cost of Internet-only retailers, citing a number of advantages : They have market clout with suppliers. They have established distribution and fulfilment systems. They can cross-sell between Web sites and stores.  63 Visual Source: Google.com Figure 5.5 - Services Provided by Channel Members  Channel support A number of different services provided by channel members can enhance the value to consumers of purchasing and consuming a brand name product. Two important components of partnership strategies: Retail segmentation - Because of retailers different marketing capabilities and needs retailers may need to be divided into segments or even treated individually so they will provide the necessary brand support. Branded variants - Branded items in a diverse set of durable and semidurable goods categories that are not directly comparable to other items carrying the same brand name. Cooperative advertising – Manufacturer pays for a portion of the advertising that a retailer runs to promote the manufacturer’s product and its availability in the retailer’s place of business. Source: Keller, Kevin Lane (2014). Strategic Brand Management, 4th Edition. Pearson Education South Asia Pte. Ltd. / Prepared by: BARomualdo / Visual Source: Google.com To Sum Up.. Channel members should be thought of and treated as valuable customers whose image and actions can hurt or enhance brand equity Reference: Keller, K. L., Harlow, V., & Swaminathan, A. (2020). Strategic brand management: Building, measuring, and managing brand equity (5th ed. Global ed.). Pearson Education Limited. Google.com You Tube 67  MM 5720 Brand Management Course Pre /Co – requisite: Module 3: Brand Elements and Marketing Programs Band Elements and Marketing Programs to Build Brand Equity Prepared by: Romualdo A. Romualdo, MBA, RME 68