MARKETING AND SALES Masters Relationship Marketing New customers Vs. Old customers Selling customers...
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MARKETING AND SALES Masters
MARKETING AND SALES Masters Relationship Marketing New customers Vs. Old customers Selling customers today creating customers for tomorrow. RM= Customers
Relationship Marketing New customers Vs. Old customers Selling
customers today creating customers for tomorrow. RM= Customers
Loyalty Continuous attention 2-2
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3 Whole Brain 4 Thinking Structures Herrmann International
Group 2000-2003
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4 Success stories prices promotions 1987-2001 The Ned Herrmann
Group
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5 What if it doesnt work? 1987-2001 The Ned Herrmann Group
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6 You are not a number! 1987-2001 The Ned Herrmann Group
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7 Visualisation 1987-2001 The Ned Herrmann Group
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Relationship Marketing and the Sales Force 2-8 Four basic
questions used as guidelines in defining the role of the sales
force: 1.How much selling effort is necessary to gain and hold
customers? 2.Is the sales force the best marketing tool? 3.What
type of sales activity will be necessary? 4.Can the firm gain
strength relative to its competition with its sales force?
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Brand Value Three elements of Brand Value Functional Values
Expressive Values Central Values Interbrand; The Worlds Greatest
Brands.
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Central Expressive Functional Brand Value Corresponding to
Brand Hierarchy Pyramid
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Brand Value Functional Values: Govern product performance Coke
refreshes its drinker Volvo gives its driver a safe ride IBM PC
provides quick computing Dont differentiate products Pepsi
refreshes Mercedes is as safe as Volvo Apple is as quick as IBM
Brand Owners bright ideas can be instantly copied in every
continent Interbrand; The Worlds Greatest Brands.
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Brand Value Expressive Values: Say less about the product &
more about the consumer Reflect and enhance the consumers sense of
him/herself Provide a key source of brand differentiation Marlboros
- masculine values Armanis - status and fashionable values Apple -
creative and human values Interbrand; The Worlds Greatest
Brands.
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Brand Value Central Values: Most Enduring Right to the Core of
the Consumers Belief System At their purest = embodied in
religious, national or political persuasions Comparable power =
embody mass movements or cultural trends 1960s Coke I Like to teach
the world to sing Today= Nike Just Do It, Interbrand; The Worlds
Greatest Brands.
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Brand Value Corresponding to Brand Hierarchy Pyramid Central
Expressive Functional Very meaningful in differentiating our Brand
but very difficult to deliver consistently to our consumers Easy to
deliver and explain to consumers but also easy to imitate
Interbrand; The Worlds Greatest Brands.
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Central Expressive Functional Very meaningful in
differentiating our Brand but very difficult to deliver
consistently to our consumers Easy to deliver and explain to
consumers but also easy to imitate Beliefs & Core Values
Benefits Features & Attributes Brand Value Corresponding to
Brand Hierarchy Pyramid Hierarchy : Timothy D. Ennis, Ennis
Associates, Inc
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Brand Value: Brand Hierarchy Pyramid Beliefs & Core Values
Benefits Features & Attributes The emotional beliefs and values
that consumers feel are being addressed by our brand (CENTRAL) The
functional and emotional benefits that our product/services
provides to the consumer (EXPRESSIVE) Product/Service features
and/or attributes that must be addressed (FUNCTIONAL) Very
meaningful in differentiating our Brand but very difficult to
deliver consistently to our consumers Easy to deliver and explain
to consumers but also easy to imitate
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Mc Cormick
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Mc Cormick: The Taste You Trust Brand Value: Brand Hierarchy
Pyramid CENTRAL VALUE Beliefs and Core Values EXPRESSIVE Benefits
FUNCTIONAL Features & Attributes I take pleasure in how the
family enjoys the meals I prepare Brand I Trust / Taste You Trust
Part of making food my way Makes a meal/dish an eating pleasure
Makes prepared meals taste better Brings out the best in foods Let
me adjust to make it my own * Can be used with any dish * Adds
flavor, Spicy * For everyday use * Has a lot of products I use *
Easy to find when shopping * Largest variety of spices, extracts,
dry seasonings, and mixes
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Brand Hierarchy Pyramid vs Product Level Beliefs & Core
Values Benefits Features & Attributes Very meaningful in
differentiating our Brand but very difficult to deliver
consistently to our consumers Easy to deliver and explain to
consumers but also easy to imitate Generic Product CORE BENEFIT
Expected Product Augmented Product Potential Product
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Brand Equity A set of stored values that consumers associated
with a Product/Service. These associations add value beyond the
basic product functions due to past investments in marketing the
Brand. Timothy D. Ennis, Ennis Associates, Inc
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Brand Equity Brand Ingredients: Brand Name & heritage
Packaging (structure & graphics) & signage Brand symbols,
properties and logos Perceived quality, reliability &
convenience Defined level of satisfaction Meaningful price/value
relationship Purchase & usage experiences Consumer perceptions,
attitude & behaviors Emotional associations with the
product/services Timothy D. Ennis, Ennis Associates, Inc
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Brand Equity Physical Product Attributes Quality Uses Kevin
Clancy, Copernicus modified by Soni Simpson
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Brand Equity Physical Product Attributes Quality Uses Kevin
Clancy, Copernicus modified by Soni Simpson
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BRAND GESTALT(structure) Brand Equity Physical Product
Attributes Quality Uses Brand Personality Logo Visual Appearance
Country of Origin User Imagery Tangible Benefits Emotional Benefits
Brand Customer Relationshi p Kevin Clancy, Copernicus modified by
Soni Simpson
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Indicators of an underemphasis on Brand Building Cant identify
brand associations Brand awareness is lacking No valid measure of
customer satisfaction No person in the firm whos job is to take
care of brand equity Evaluation of the impact of marketing on
Brands Long term strategy Managers are short term thinkers (sales
promotions)
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Categories of Assets Brand name awareness Brand loyalty
Perceived Quality Brand Associations Other Proprietary Brand Assets
(e.g., channel relationships, patents,)
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Brand Equity Increases Value Brand Equity Brand Loyalty Brand
Awareness Perceived Quality Brand Associations Other Brand Assets
Value to Customer Value to Firm
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Brand Name Awareness Anchor to which other associations can be
attached Familiarity-liking (I trust what I know) Signal of
substance/commitment Brands to be considered (whats your
rank?)
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Brand Loyalty Reduced marketing costs (repeat purchase) Trade
leverage (expect the brand to be available) Attracting new
customers (expensive) Create awareness Reassurance Time to respond
to competitive threats
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Perceived Quality Reason-to-buy Differentiate/Position Price
(can support a premium) Basis for brand extension
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Brand Associations Fun, entertaining, VIP. Help
process/retrieve information Reason-to-buy Create positive
attitude/feelings Extensions
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Brand Equity and Brand Value Brand Equity provides value to
customers: Interpretation/processing of information Confidence in
the purchase decision Use satisfaction
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Brand Equity and Brand Value Brand Equity provides value to
firm: Efficiency and effectiveness of marketing programs Brand
loyalty Prices/margins Brand extensions Trade leverage (power over
distribution channel) Competitive advantage
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Brand Value Breakdown $US Billions J&J Unileve r
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Discussion How has Ivory built each of the dimensions/assets of
brand equity? How does Ivory create value?
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Brand Equity The Ivory story It Floats, is pure, and mild Swan
from Lever Brothers Value adding Long term view of brands 20% owned
by employees
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Brand Building Inhibitors Pressure to compete on price
Proliferation of competitors Fragmenting markets and media Complex
brand strategies and relationships Bias toward changing strategies
Bias against innovation Pressure to invest elsewhere Short-term
pressures
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Revitalizing the Brand
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Marketing should focus on market creation, not on market
sharing
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Revitalizing the brand Increase usage Finding new uses Entering
new markets Repositioning the brand Augmenting the product
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1. Increasing Usage Questions to ask? Less threatening to
competitors Two ways: Frequency of use Reminder communication, make
the use easier, provide incentives,use on different occasions,use
at different locations. Quantity used Large containers, positive
associations: can t just eat one.
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The Frequency of use Positioning: Milk, more than two cups a
day Brush after every meal Phoning a relative once a week make the
use easier: Packages Why they don t use it more often? use at
different occasions or locations Ask when and where? Can new times
or places be introduced. Juices and breakfast. Wet tunes.
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The quantity used Increase coverage insurance business Tie and
accessories when you buy a shirt low calorie salad dressing.
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2. Finding new uses Baking soda Knnor Lipton soup R&D
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3. Entering new market Sometimes need product modification
Women/ kids/ seniors J&J baby shampoo Segmentation Growth
segments within declining industry: light beer/nonalcoholic
Segments not served well: women
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4. Repositioning Change associations Tastes and fashion change
Need for new associations Campbell Soup: Lunch supplement Mm good
to soup is good food . Kids eating lunch at home is history Add
value by differentiating The Perdue chickens story Tender chicken
having a soft life in $60,000 homes,getting eight hours sleep,
avoiding junk food, and drinking pure well water.
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Augmenting the product/service Differentiating element is
fading away. The choice is based on price. Improving the package:
new look, screw cap juice. What are the problems that are really
irritating to the customer? Is there any way that added services
can deal with them? In what way the customer is dissatisfied? What
can be done? think about the whole system. Customer
involvement
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The End Game: An other alternative to brand revitalizing
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What makes a brand prosper? Brand Equity Intensity and
commitment of the competition Market demand
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What will happen if one of these is unfavorable?
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Are you going to Milk the brand or kill it?
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The Milking options Avoiding investment in the brand as an
attempt to generate additional cash flow from it. Sales decline is
in an orderly way. We accept a decline in sales and profits and the
risk of going down.
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The strategy Hold: enough investment to hold the current
position Fast milking: sharp reduction in operating expenditure
Employee moral? Brand Manager motivation Competitors may attack
vigorously secret strategy What if the decision was based on wrong
research
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The Divestment option Decline rate is rapid and accelerating
Extreme price pressures Brand position is weak: a competitor
achieved irreversible advantage The firm mission changes Exit
barriers can be overcome : long term contract with suppliers.
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Exit Problems Managerial pride Emotional attachment:
family
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Practical exercise Form pairs of two and think of a brand you
think needs revitalizing. What would you do to revitalize it?
Increase usage Finding new uses Entering new markets Repositioning
Augmenting the product
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Making Interactivity Purposeful
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Brand Contacts Be exposed to a brand message Two kinds: Created
and Intrinsic Created: Adv. Promotions. PR releases Intrinsic: the
contacts customers do in order to use a service or get a product.
Flying experience. Intrinsic contact points need to be fully
leveraged, maximizing not only the ability to supply information,
but also their ability to listen to and gather information from
customers.
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How to Manage Brand Contacts Identify them Prioritize Which one
captures feedback Determine the cost of controlling messages and
gathering information for each contact point Which one can be used
to carry additional brand messages and facilitate purposeful
dialogue.
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What NOT to do Do not use brand contact points to bombard
customers with more brand messages.
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The 5 Rs 1. Recourse: What if my computer doesnt work? 2.
Recognition: customers like to be personally recognized. call them
by their names. Database management! 3. Responsiveness: 1 800 is
just the first step. Stay with customers until the matter is
solved.
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The 5 Rs 4. Respect: non relevant telemarketing offers.
Customers are willing to give you a half day on their schedule but
not a minute on yours. Citibank direct- mail ( with a gift: tax
guide): the purpose was to motivate customers to schedule a
personal interview.
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The 5 Rs 5. Reinforcement: Adv. For those who already purchased
the product. It is better to include a feedback device.
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I dont know who you are. I dont know your company. I dont know
your companys products. I dont know what your company stands for. I
dont know your companys customers. I dont know your companys
reputation. Now - What was it you wanted to sell me? McGraw-Hill
Magazine Ad
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What will a strong Brand do for you?
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I know who you are. I know your organization. I know your
organizations services. I know what your organization stands for. I
know your organizations customers/clients. I know your
organizations reputation. Now - Here is what I want...