Designing Marketing Programs

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Designing Marketing Programs

• 4806 Product and Brand Management
• Book Keller, K. L., Strategic Brand Management,
  2nd Edition, Chapter 5

Lecture Presentation by Polboon Nuntamanop
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5 Major drivers of new economy

• Digitalization
• Internet, intranet, mobile devices
• Disintermediation and reintermediation
• Middlemen of various sorts
• Customization and customerization
• Tailored made products
• Industry convergence
• Blurring of industry boundaries
• New capabilities

3
Customer capabilities

• Marketers should be aware of and leverage these
  new changes of customers or consumers.
• More choices.
• More information
• More references points
• Ease of interaction and placing/receiving orders

4
Company capabilities

• Ease of getting information
• Ability to customize
• Ease of product distribution
• Ease of delivering products or services
• Ease of communication with customers and
  prospects.

5
Product and Brand Equity

• The product is the heart of Brand Equity
  because it is the primary influence on what
  customers experience with the brand.
• Designing and delivering the products or
  services that fully satisfies consumer needs and
  wants is prerequisite for successful marketing.

6
Product Strategy

• The concepts to understand in order to develop
  Product Strategy.
• Product Positioning
• Perceived Quality
• Perceived Value
• McKinseys 3-D Marketing
• Relationship Marketing

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Product Positioning

• Generic product positioning statement
• To(core target consumer group) .. Product /
  service) X is ....(target market
  segment).offers(product benefits and consumer
  benefit) because .(rationale support the
  claims).

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Perceived Quality

• General dimensions of product quality
• Performance
• Features
• Conformance Quality - degree of meeting
  expectations.
• Reliability consistent of performance
• Durability expected economy life
• Serviceability
• Style and Design

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McKinseys 3-D Marketing

• 3 product benefit dimensions
• Functional benefits
• Product and performance attributes.
• Process benefits
• Ease of access of product information.
• Relationship benefits
• Value based on personalized service, emotoinal
  relevance.

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Relationship Marketing

• Relationship marketing refers to a set of
  activities which transcend the actual product or
  service to create stronger bonds with consumers
  and maximize brand resonance.
• Relationship marketing is based on he premise
  that current customers are the key to long-term
  brand success.

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Relationship Marketing Stategies

• Mass Customization
• Segmentation
• Small scale production facilities
• Aftermarketing
• Activities after customer purchase.
• Instruction manuals
• Complementary products
• Loyalty programs

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Pricing Strategy

• The concepts to understand in order to develop
  pricing strategy
• Price perception
• Pricing or price setting

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Price perceptions

• Fair price
• Typical price
• Last price
• Upper-bound price
• Lower-bound price
• Competitive price
• Expected future price
• Usual discounted price

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Setting prices

• Eight steps of better pricing
• Assess customer perceived value.
• Assess value variation
• Assess customers price sensitivity
• Identify an optional pricing structure
• Consider competitors reactions
• Monitor prices realizes at eh transaction level
• Assess customers emotional response.
• Analyze whether the returns are worth the cost to
  serve.

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Channel Strategy

• The concepts to understand in order to develop
  channel strategy.
• Channel design direct and indirect channels
• Push and pull strategies

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Direct channel of distribution

• Selling through personal contacs from the company
  to prospective customers , e.g. In-person visits,
  Mail, Phone, Electronic means e.g. email
• Direct Channels
• Company-own stores
• Other means
• Website (can be both direct and indirect)

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Indirect Channels

• Selling through third party intermediaries
• Representatives
• Agents
• Distributors
• Wholesalers, brokers, or dealers
• Retailers
• Website

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Push and pull strategy

• Push ? offering the product/service to customers
  through sales promotion or special display at
  point of sales.
• Pull ? Pulling customers to pay attention to the
  product/service through communication or
  promotion activities which bring the customers to
  the point of sales.

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Communication Strategy

• Concepts to understand in order to develop
  communication strategy
• Basic communication process
• Integrated Marketing Communication
• Advertising

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Communication process
Quality of content Believability Form Clarity,
attractive, attention getting
Messages
Messages
Communication
Method
Sender of messages
Receivers of messages
Mean or media
Targeted receivers Interests Level of
understanding
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• Next class
• Integrated
• Marketing Communication