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Chapter 5
Chapter 5
A known devil is better than an unknown angel
Awareness refers to the strength of a brand’s presence in the consumer’s mind
Consumers instinctively prefer a brand that they have previously seen to one that is new to them
Familiar brand has an edge!
Perceived Quality and Value Relationship Marketing
Perceived quality can be definedas the customer’s perceptioncustomer’s perception of the overall
qualityor superiority of a product or servicewith respect to its intended purpose,with respect to its intended purpose,
relative to alternativesrelative to alternatives
Perceived quality is an intangible and overall feeling about a brand
Perceived quality cannot necessarily be objectively determined because it is a perception
Perceived quality could be different for the corner store versus the department store• Both are judged by a different set of criteria
Perceived quality differs from satisfactionA positive attitude could be generated because a
product of inferior quality is very inexpensive
In many contexts, perceived quality provides the pivotal reason to buy
Could differentiate and be a principal positioning characteristic of a brand
Provides the option of charging a premium price
Could be meaningful to channel members and thus aid in gaining distribution
Personalizing Marketing
Experiential Marketing Promote the product in a way that connects it
with the audience in a unique and interesting manner.
Experiences can come in 4 varieties: Entertainment Education AestheticEscapist
EXPERIENTIAL MARKETING
75% Market ShareNo benefit of the productFocused on customer
it’s not if you getthis iPod you willbe cool, but ratheryou are gettingthis because youare cool
SEMs or ‘strategic experience modules’SENSEFEEL THINKACT RELATE
SENSE
FEEL
THINK
ACT
RELATE
One-to-One MarketingFocus on individual customers Respond to dialogues: “Consumers talk to us”Customise products and services
Customisation AdvantagesReduces inventoryHas a lot of potential with e-commercePotential with service organisations
AfterMarketingFocus on the augmented product
Premarketing efforts are necessary but not sufficient conditions for brand success. Marketers may need to use other means to enhance consumption experiences.
After-sales serviceSale of complementary products Loyalty/Frequency programs
Consumer Price Perceptions Setting Prices to build brand equity
Price cuts will effect different brands differently
High quality brands can easily “steal” market share from low quality brands by cutting price
At the same time, it may not always hold true
But lower quality brands will not steal share from a high quality brands by cutting price
Channel DesignIndirect Channels
RetailersTiered Marketing Cooperative Advertising
Direct Channels Company Owned StoresThey can act as advertisements and tourist attractionsCreate own shops in major department stores
Web Strategies Bolsters other marketing effortsMakes brand more engaging
