Assignment: Chapter 5

Summary and Questions

Course: Brand Management

Course Code: MKT3204

Submitted To:

Asst Prof. Nawshin Tabassum Tunna

Submitted By:

Name: Zuhayir Mustafa

Roll: 18251083
Program: BBA in Marketing
Semester: 6th
Batch: 2018
Section: A
Department of Marketing

Bangladesh University of Professionals

October 17th, 2020 Mirpur Cantonment, Dhaka-1216
Chapter: 5 Designing Marketing Program to Build Brand Equity summary
As firms deal with enormous shifts in their external marketing environments, their marketing
strategies and tactics have changed dramatically. Traditional categories and industries are
rethinking their practices and not doing business as usual. Marketers are increasingly abandoning
their favoured mass market strategies. Ever since the new approaches were embraced by
marketers, there have been rapid technological developments, greater customer empowerment
and growth of interactive and mobile marketing options, which led to increased competition and
industry convergence. These drivers have combined to give customers the ability to wield
substantially more power, purchase a greater variety of available goods and services and obtain a
great amount of information about practically anything. In today’s marketplace, there are many
different means by which products and services and their corresponding marketing programs can
build brand equity. Channel strategies, communication strategies, pricing strategies, and other
marketing activities can all enhance or detract from brand equity. The customer-based brand
equity model provides some useful guidance to interpret these effects. One implication of the
conceptualization of customer-based brand equity is that the manner in which brand associations
are formed does not matter-only the resulting awareness and strength, favorability, and
uniqueness of brand associations. Creative and original thinking is necessary to create fresh new
marketing programs that break through the noise in the marketplace to connect with customers.
Marketers are increasingly trying a host of unconventional means of building brand equity. As
just one example are pop-up stores – temporary stores that blend retail and event marketing. The
rapid expansion of the Internet and continued fragmentation of mass media has brought the need
for personalize marketing into sharp focus. To adapt to the increased consumer desire for
personalization, marketers have embraced concepts such as experiential marketing, one-to-one
marketing, and permission marketing. Experiential Marketing promotes a product by not only
communicating a product’s feature and benefits but also connecting it with unique and
interesting experiences. A range of examples can be from Disney to AOL, as they maintain that
saleable experiences come in four varieties: entertainment, education, aesthetic, and escapist.
Don Peppers and Martha Rogers popularized the concept of one-to-one marketing. The basic
rationale is that consumers help to add value by providing information to marketers. Marketers
add value, in turn, by taking that information and generating rewarding experiences for
consumers. The product itself is the primary influence on what consumers experience with a
brand, what they hear about a brand from others, and what the firm can tell customers about the
brand. In other words, at the heart of a great brand is invariably a great product. Designing and
delivering a product or service that fully satisfies consumer needs and wants is a prerequisite for
successful marketing, regardless of whether the product is a tangible good, service, or
organization. For brand loyalty to exist, consumers’ experiences with the product must at least
meet, if not actually surpass, their expectations. Relationship Marketing is based on the premise
that customers are the key to long-term brand success. Acquiring new customers can cost five
times as much as satisfying and retaining current customers. Loyalty or frequency programs have
become one popular means by which marketers can create stronger ties to customers. Their
purpose is identifying, maintaining, and increasing the yield from a firm's 'best' customers
through long-term, interactive, value-added relationships. Firms in all kinds of industries - most
notably the airlines-have established loyalty programs, through different mixtures of specialized
services, newsletters, premiums, and incentives. In terms of pricing strategies, marketers should
fully understand customer perceptions of value. Increasingly, firms are adopting value-based
pricing strategies to set prices and everyday-low-pricing strategies to guide their discount pricing
policy over time. Value-based pricing strategies attempt to properly balance product design and
delivery, product costs, and product prices. Every day-low-pricing strategy establish a stable set
of “everyday” prices and introduce price discounts every selectively. In terms of channel
strategies, marketers need to appropriately match brand and store images to maximize the
leverage of secondary association, integrate push strategies for retailers with pull strategies for
consumers and consider a range of direct and indirect distribution options. Marketers integrate
these activities to enhance brand awareness, improve the brand image, elicit positive brand
responses, and increase brand resonance

Conceptual Questions
Q.1) Identify how some of the new perspectives and developments in marketing compare with
the old way of thinking.
Q.2) Describe how marketers enhance product experience for consumers.
Q.3) What are the ultimate goals and the rationale for value pricing?
Q.4) Explain some of the direct and indirect channel options.
Q.5) Summarize the reasons for the growth in private labels.
Q.6) How do marketers initiate personal and experimental marketing?
Q.7) How is relationship marketing related to brand equity?
Q.8) In what way does product strategy help to improve perceived quality and value in the eyes
of consumers?
Q.9) How did mass customization concept help enhance brands’ competitive strategy in the IT
industry?
Q.10) Explain and give examples for the role of ‘After Marketing’ in building brand image.