class5_marketing programs_postclass.pdf

d HOUSEKEEPING 01 Mid-term Exam • • • • • 02 Oct 31 (Tue) in class, 9:45am sharp after a short lecture One hour Paper and pencil, closed-book exam Multiple-choice questions + Short essay questions Check the announcement on Brightspace for details Draft I of the Brand Audit Report • • • Oct 17...

d HOUSEKEEPING 01 Mid-term Exam • • • • • 02 Oct 31 (Tue) in class, 9:45am sharp after a short lecture One hour Paper and pencil, closed-book exam Multiple-choice questions + Short essay questions Check the announcement on Brightspace for details Draft I of the Brand Audit Report • • • Oct 17 (Tue) Draft * Apply the Lululemon case to studying your brand CLASS 5 MARKETING PROGRAMS Q What is brand positioning? § review Designing consumer perception of a brand through brand elements and marketing activities so that the brand occupies § Distinct place & § Valued place § In the target customers’ mind Q What should be considered for positioning? § Target market § § § Nature of competition § § § Who are they? (demo, geographic, behavioral) What do our target customers like/want? (psych) Who are our “true” competitors? What are we/they good/bad at? Brand associations § § Point-of-parity (PoP) associations Point-of-difference (PoD) associations f Learning objectives # Understand how marketing programs deliver brand positioning to consumers (i.e., shape unique consumer perception of a brand) # How to extract brand positioning from marketing activities of a brand (i.e., Lululemon) MARKETING PROGRAMS & BRAND KNOWLEDGE Repeated process: at time 1 § Establish brand knowledge and positioning Output Input Purchase Loyalty Preference Attitude (Feeling+Judgment) Willingness to recommend Product strategies Pricing strategies Channel strategies Communication strategies Brand awareness Brand image MARKETING PROGRAMS & BRAND KNOWLEDGE Repeated process: at time 2 § Update brand knowledge and positioning: can strengthen or dilute brand equity Output Input Purchase Loyalty Preference Attitude (Feeling+Judgment) Willingness to recommend Product strategies Pricing strategies Channel strategies Communication strategies (Updated) Brand awareness Brand image MARKETING PROGRAMS BRAND KNOWLEDGE / BRAND EQUITY / POSITIONING PRODUCT STRATEGIES PRICING STRATEGIES CHANNEL STRATEGIES v Perceived quality v Aftermarketing v Indirect channels v Mass customization v Co-branding v Brand extension (Land Rover case) v Relative prices v Freemium model v Direct channels v Integrated channels COMMUNICATION STRATEGIES v Secondary associations (e.g., celebrity endorser) v Digital branding (Hunger Game case) PRODUCT STRATEGIES Perceived quality § Customers’ perceptions of the overall quality of a product or service, as compared with that of alternatives, matter § Important because quality is the core brand attribute/benefit (i.e., what everyone cares about) PRODUCT STRATEGIES Aftermarketing § Marketing activities that occur after purchase § For repeat purchase, marketing activities are required to enhance product consumption experiences after purchase § Loyalty or frequency programs § Example: Airline (mileage flown; free upgrades), Starbucks reward § To identify, maintain, and increase the yield from a firm’s “best” customers through long-term, interactive, and value-added relationships § Increase retention and creates switching costs PRODUCT STRATEGIES Mass customization § Making products that satisfy customers’ exact needs § Co-creating products with firms: More engaged, loyal § Positioning § Help self-expression § Personalization PRODUCT STRATEGIES Co-branding § When two or more existing brands are combined into a joint product or are marketed together in some fashion § Examples PRODUCT STRATEGIES Co-branding § How does it work?: “Borrowing” knowledge of other entities Stylish Expensi ve iPhone Leather strap by Hermes for Apple watch products High-sta tus Cool User-frie ndly inte rface Scarfs MAC Samsun g Horse e quipmen t Creative Very Ex pensive Handba gs Not avail able Leather Orange color PRODUCT STRATEGIES Co-branding § Considerations for assessing a co-branding opportunity § How does it help to maintain or strengthen brand equity? (i.e., How strong is the conceptual fit between two brands?) § Is there any possible risk of dilution of brand equity? PRODUCT STRATEGIES Co-branding example: uber x spotify § https://www.youtube.com/watch?v=cNUc3WD2Y-U&ab_channel=ZYDIGITAL New associations Uber earned by co-branding with Spotify? PRODUCT STRATEGIES Co-branding example: Art Infusion PRICING STRATEGIES § Choosing a pricing strategy means determining § Setting current prices § Adjusting them by choosing the depth and duration of promotions and discounts § There are many different approaches to setting prices, and the choice depends on various considerations PRICING STRATEGIES Relative prices of competitive products § Set acceptable prices (i.e., price bands) as per positioning § Price based on perceived quality § Same quality level, yet price differs § Hagen-Dazs’ positioning? § Luxury positioning PRICING STRATEGIES Placebo effect § Regular price vs. Discount § Price information activates expectancies about the efficacy of a product (e.g., energy drink) and influences actual performance (e.g., number of puzzles solved) § Implication? PRICING STRATEGIES Freemium model § After building a large installed base, those who use the freemium model can move to a premium tier § Example: Dropbox Plus § 2GB free -> 1TB for $9.99 per month § Dropbox has approximately 500 million users, with 5 percent conversion rate of free to premium customers (Need a healthy mix of free and premium customers) § Positioning? § Community-based cloud storage service CHANNEL STRATEGIES § Choosing a set of interdependent organizations involved in making a product or service available for consumption § Omnichannel integration § Multichannel sales approach that combines online and offline channels § Example: Nike has Branded Nike Stores, NikeStore.com, Outlet stores, Retail locations, Catalog retailers § Profitable? Cannibalism? § Positioning? § Popular, Ubiquitous CHANNEL STRATEGIES Direct channels (1/3) § Selling directly to consumers by mail, phone, electronic means, in-person visits, etc. § Company-owned stores § Example: Lululemon shop on Grafton street § Used to gain control over the selling process § Even digital native brands have offline outlets to build relationships with customers (e.g., Glossier) § Temporary pop-up stores: blend of retail and event marketing CHANNEL STRATEGIES Direct channels (2/3) § Store-within-a-store § Example: Ted Baker at Arnotts department store § Creating shops within major department stores § Control over product presentation at the point of purchase § Retailers and brands can benefit from each other through an image transfer process (e.g., “If a brand is sold in BT, their product must be good.”; “If LV is sold in BT, BT must be a classy store.”) § Positioning? § high-quality product and service CHANNEL STRATEGIES Indirect channels § Selling through third-party intermediaries (e.g., retailers, wholesalers, agents, dealers, etc.) § Each retailer has own associations related to product assortment, pricing, quality of service, etc. § Online product reviews can influence brand equity § Positioning? § Depends on the indirect channel chosen PROMOTION STRATEGIES Celebrity endorsement § Using well-known and admired people to promote products § Worldwide phenomena (15% of ad in US; 45% in Taiwan) § Potential problems § Celebrities may distract attention from the brand in the ads § Celebrity endorsers can get in trouble or lose popularity, which diminishes the marketing value, and vice versa PROMOTION STRATEGIES Celebrity endorsement: example (1/2) PROMOTION STRATEGIES Celebrity endorsement: example (2/2) https://www.youtube.com/watch?v=Rxreg4TPiFI&ab_channel=AdFreakNine PROMOTION STRATEGIES Third-party sources § Linking brand to various third-party sources that can be especially credible sources PROMOTION STRATEGIES Experiential marketing § Promoting a product by connecting a product’s features with unique and interesting consumer experiences § If you charge for tangible things, you are in the goods business. § If you charge for the activities you perform, you are in the service business. § If you charge for the time customers spend with you, you are in the experience business. § Positioning? § Community-based, Sensory, Interesting PROMOTION STRATEGIES Experiential marketing (example: lululemon in-store yoga class) https://www.youtube.com/watch?v=1kEghvk-l_8&ab_channel=L.I.F.EwithMarina BRAND AUDIT PROJECT § Part I: Historical overview and background § Part II: How is the brand currently positioned (Lululemon) § Associations established through marketing programs (i.e., product, price, communication, & channel strategies), target consumer segment (e.g., location, income), (in)direct competitors § Part III: How do consumers perceive the brand (Land Rover, Lululemon) § § Brand awareness, brand image (of whom? Target consumers?) Part IV: What types of marketing activities are (in)consistent § Identify reasons why there are inconsistencies between the current consumer perceptions and an ideal brand positioning: Lack of awareness? Failure in communication with consumers? § Part V: Make recommendations on what can be done (The Hunger Games, Always) § How to increase awareness? How can marketing programs be revised to shape desired image? d NEXT CLASS 01 Parts 1 and 2 of brand audit report (Draft I) 02 Qualitative methods to assess brand equity & knowledge