Creating competitve advantage
Importance of competitive advantage
• Competitive advantage is sustainable
• Competitive advantage is unique
• Competitive advantage is relevant
Competitive strategies
• Cost leadership strategy
• Differentiation strategy
• Innovation strategy
• Operational effectiveness strategy
The Brand
A Brand is a distinguishing identity and
fulfilled promise which benefits the customer.
Role of the brand
• Brand Awareness - Helps customer in simplifying decisionmaking
• Legal protection – restricted trademarks, packaging,manufacturing process
• Brand Loyalty – commands higher price in the market
• Brand Recognition – Consumers recognize the brand andknow what it offers versus competitors.
• Positive customer-based brand equity
• Consumer accepts new brand extension
• Less sensitive to price increases
• Withdrawal of advertisement support
The Brand Benefit: Up the Ladder
Brand Laddering
A simple technique that “ladders”
brand features up, into meaningful
benefits
• What does your brand do best?
• Why is that important?
• …and why is that important?
• The essence of the brand is a single, simple value
• It’s often your positioning point-of-difference
• Brand essence creates a relationship with the consumer, making an emotional connection
Different types of brands
• Product Brands
• Service Brands
• E-brands
• Media Brands
• Not-for-profit Brands
• Nation Brands
• Government Brands
• Global Brands
• Organization Brands
Alternative Branding Models
Company dominates Brands
Company is equal to Brands
Brands dominate the Company
American Express
BMW
Colgate
Disney
General Electric
IBM
L’Oreal
Sony
Holiday Inn
Chrsyler = Jeep
Estee Lauder = Clinique
Kraft = Maxwell House
PepsiCo = Mountain Dew
Time Warner = Warner Bros
3M = Scotch Tape
Marriott = Courtyard
Crest (P&G)
Kleenex (Kimberly-Clark)
Marlboro (Philip Morris)
Wranlger (VF Jeans)
BRANDING DECISIONS•BRAND•NO BRAND
BRAND SPONSOR DECISION •MANUFACTURER BRAND•DISTRIBUTOR BRAND•LICENSED BRAND
BRAND NAME DECISION•INDIVIDUAL NAMES•BLANKET FAMILY NAME•SEPARATE FAMILY NAME•COMPANY – INDIVIDUAL NAMES
BRAND STRATEGY DECISION•LINE EXTENSIONS•BRAND EXTENSIONS•MULTI BRANDS•NEW BRANDS•CO BRANDS
BRAND REPOSITIONING DECISION•REPOSITIONING•NO REPOSITIONING
BRANDING DECISION MAKING PROCESS
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.
Brand Equity Ingredients
– TOMA and Top of Name & heritage
– Packaging (structure & graphics) & signage
– Brand symbols, properties and logos
– Perceived quality, reliability & convenience
– Defined level of satisfaction
– Meaningful (premium) price/value relationship
– Purchase & usage experiences
– Consumer perceptions, attitude & behaviors
– Emotional associations with the product/services
COMPETETIVE WARFARE
Entry Strategies
FOREIGN MARKETENTRY
MANUFACTURINGAT HOME
MANUFACTURINGABROAD
INVESTMENTENTRY
EXPORTING
INDIRECTDIRECT
“PIGGY-BACKING”
CONTRACTUAL
LICENSING/FRANCHISING
CONTRACTMANUF.
TURNKEYPROJECTS
MGTCONTRACTS
OVERSEASASSEMBLY/
MIXING
JOINT VENTURES
ACQUISITION/SELF-BUILT
OTHER DIRECTENTRY
Approaches to Pricing
Approaches to Pricing
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Product Line Pricing – Band/FixedSetting Price Steps Between Product Line Items
i.e. Rs 299, Rs 399 / Rs 99
Optional-Product PricingPricing Optional or Accessory Products
Sold With The Main Product
Captive-Product PricingPricing Products That Must Be Used
With The Main Product
By-Product PricingPricing Low-Value By-Products To Get Rid
of Them
Product-Bundle PricingPricing Bundles Of Products Sold Together
Product Mix Pricing
Product
Mix
Pricing
Strategies
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Product-Mix Pricing Strategies
Product line pricing (Price lining) takes into account the cost difference between products in the line, customer evaluation of their features, and competitors’ prices. – the price differences represent the perceived quality differences
Setting Pricing Policy
1. Selecting the pricingobjective
2. Determining demand
3. Estimating costs
4. Analyzing competitors’costs, prices, and offers
5. Selecting a pricingmethod
6. Selecting final price
Pricing Objectives
Meet
Business
Objectives
Other Pricing Objectives
Status Quo
Image
Social & Ethical Considerations
The Three C’s Model for Price Setting
Costs Competitors’prices andprices ofsubstitutes
Customers’assessmentof uniqueproductfeatures
Low Price
No possibleprofit at
this price
High Price
No possibledemand atthis price
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25
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SOCIAL MEDIA STRATEGY – THE PROCESS
The Eight C’s Of Strategy Development
1. Categorize social media platforms by target market relevancy
2. Comprehend the rules of the road on the platform by listening and learning how to behave, successfully spark conversation, and engage and energize the participants
3. Converse by acknowledging and responding to other users of the platform, always remembering to be a contributor, not a promoter
The Eight C’s Of Strategy Development
4. Collaborate with platform members as a
means of establishing a mutually beneficial
relationship with the platform participants
5. Contribute content to build reputation and
become a valued member, helping to
improve the community
6. Connect with the influencers so that you
can enlist them to help shape opinions about
your product or service
The Eight C’s Of Strategy Development
7. Community participation (and creation) can elicit valuable consumer suggestions for improving products and innovative suggestions for new products or service
8. Convert strategy execution into desired outcomes such as brand building, increasing customer satisfaction, driving word-of-mouth recommendations, producing new product ideas, generating leads, handling crisis reputation management, integrating social media marketing with PR and advertising, and increasing search engine ranking and site traffic
Implementing the CRM Strategy
Elements of a CRM System
Customer
Interface/
Touch points
Sales Person
Contacts
CRM
Applications
Sales
Management
Functions
Marketing Functions
• Campaign Management
• Segmentation
• Personalization and
Customization
Customer Service
Functions
• Helpdesk
• Customer Care
Web based
Contacts
• Websites
• Telesales
• Kiosks
• Direct mail
• Coupons
Components of CRM Infrastructure
Component Description
1. Information Delivery/Online Catalogs Capability to display and list company's
products and services online
2. Customer Database Capture, organize, present, and analyze
customer-specific data
3. Personalization and Content
Management
Utilizing results of data analysis to
create an individualized experience for
customers
Enhance/modify service delivery
vehicles to match specific needs of
customers
Components of CRM Infrastructure (contd.)
4. Sales force Automation Deployment and use of tools and services
designed to automate sales and marketing
lifecycle
5. Partner Channel AutomationFor integration of a company's service vehicles
with those of its provider and third-party partners
6. Customer Services Use of technology and business processes to
successfully support a company's products and
services