Date post: | 15-Aug-2015 |
Category: |
Marketing |
Upload: | sameer-mathur |
View: | 23 times |
Download: | 0 times |
In this era of disaggregation ,what are brands good for ?
What are brands?
Brands are the medium to reach a large number of people, with a promise to deliver clearly stated benefits.
Brand’s Purpose ?
Building Customer Relationship
Permits charging of Premium Prices
Reduced Risk in introduction of New Product
Firms get an edge over Distributors
What was ?
BRAND CENTERED MARKETING ………
THE ERA OF MASS COMMUNICATION
Based on Aggregation
What it is now ?
CONSUMER SEGMENT
CENTERED MARKETING
ERA OF INFORMATION REVOLUTION
Based on Disaggregation
What is “Disaggregation?”
Segmenting customers as per their needs and addressing their customized needs via
personalized two way communication is
DISAGGREGATION.
Why to disaggregate ?
Marketing becomes more adaptive to
differences in consumer needs.
Marketers become more responsive towards consumers‘ changing needs.
The strategic & tactical tasks performed by brand
are performed more profitably & less
expensively.
How to Disaggregate ?
VIA
Call Centers
Web Sites Direct
Mails
E- mails
Customized
Magazines
Thus , in this era of disaggregation, what are brands
good for ?
Well………
The purposes of brands have been redefined in three core areas:
Consumer Relationship
Channel Relationship
Brand Management Organization
Consumer Relationship
In a Brand Centered Approach….
• Is built by brands by fulfilling stated benefits.
• No personalization
• Driven by logic of ‘Aggregation.’• Relationships are shallow.
• One –way communication.
In the Approach of ‘ Disaggregation’ …….
• Is built by history of past interactions
• Personalized Interaction
• Driven by logic of ‘Disaggregation’
• Relationships are deep.
• Two-way communication
Both firms & Consumers prefer the personalized approach to blanket coverage of brands.
Changes that have come……
The locus of product
relationship is shifting away from product
brands towards umbrella brand.
The strategic &tactical activities are implemented
with targeted segments rather
than at brand level
Brands shed their roles and focuses on delivering their value proposition.
Thus………
Brands have become team players rather than individual stars for managing Consumer segment profitability.
Channel Relationship
Retailers’ business is no longer about collecting rent on shelf space.
In the present scenario, retail stores are …………
Promote Profitable Private Labels
Strong Loyalty
Create store-brand
awareness
Disaggregation is an opportunity to restore the balance to the imbalance of power b/w manufacturer & retailers.
How
Provides medium to manufactures to influence consumer decisions independent of retailers.
Restores credibility to manufactures.
Greater variety allow retailers to achieve finer level of segmentation
They can assemble an assortment of products &
brands that make sense to consumers.
Channel relationship no longer perceive Brand, as being the focal
point of marketing.
What do then BRANDS do ?
Brands have become building blocks of retailer’s value proposition to targeted segments.
Brand Management Organization
This organization was pioneer in introducing……………..
BRAND MANAGERS
They looked after………
Development of Marketing initiative at Brand level.
Profitability of their brand rather than entire portfolio
In this system, same consumers were addressed again and again by the same company under different brands
Thus the Brand Management System was not using the useful consumer information & proved to be a hindrance to disaggregation initiatives due to subtle differences which follows………….
In Brand Management System….
Teams are assigned to BRANDS
Mode of success gauge: Brand profitability
The question asked is………………..
Given our resources, what
else can we do ?
In Disaggregate Marketing……………
Teams are assigned to segments of similar CONSUMERS
Mode of success gauge: Segment level profitability
The question asked is……………..
What else does the consumer segment require ?
What else can we deliver to them as part of complete solution?
The difference disaggregate marketing can
bring can be seen on the right
Finally can be said,
the era of disaggregation has begun
&………………………………
The role of Brands have been reduced & now they have become more focused on value proposition as a whole under one
portfolio.
DISCLAIMER
Created by
Khushi Sahu,
IIT BHU,during an internship by
Prof. Sameer Mathur, IIM Lucknow.
www.IIMinternship.com