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

http://www.poundland.co.uk/

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