4/5/2015

COURSE TITLE : STRATEGIC BRAND Learning Outcomes 

MANAGEMENT • Learn how to design marketing programmes 
(i.e. product, pricing and  distribution 
strategies) to build brand equity

SEMESTER : Summer/2014 • Understand how can marketers integrate these 

MODULE 5: Designing Marketing Programs to Build activities to enhance brand awareness, 
Brand Equity: Product, Pricing and Channel improve the brand image, elicit positive brand 
Strategies responses, and increase brand resonance? 

Step 2: Planning & Implementing Brand Marketing

Programs
Designing Marketing Programs to Build Brand Equity
Planning &
Implementing
Brand Equity can be built by focussing on designing effective 
Brand
marketing programs keeping the following in consideration:
Leveraging • Product Strategy
Marketing Choosing
Pricing Strategy
Secondary • Programs Brand Criteria for
Co-branding Brand • Channel StrategyElements to Choosing
Associations to Build Brand Brand
Elements
Build Brand Let us look at each one in detail.
Equity
Equity

Licensing Options and

Designing Tactics for
Celebrity Brand
Endorsement
Marketing
Elements
Programs to
Build Brand
Equity

Channel
Product
Strategy
Strategy

Pricing
Strategy

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Designing Marketing Programs to Build Brand Equity

Designing Marketing Programs to Build Brand Equity
Planning &
Implementing Product Strategy
Brand
Businesses should ensure that they have an effective product strategy to 
Marketing remain competitive in the cutting edge markets. An efficient product 
Programs strategy would ensure that the product remains updated with the latest 
features, technology and enhancements and has something extra to offer 
to the customers.

Pricing Strategy

Businesses can ensure profitability and longevity by paying close attention 
Designing to their pricing strategy. An efficient pricing strategy helps companies to 
Marketing best position themselves within the market. 
Programs to
Build Brand
Channel Strategy
Equity

Channel Channel Marketing is the practice of applying appropriate marketing 
Product methods to distribution channels to reach customers. It involves 
Strategy
Strategy
developing go‐to‐market plans, educating channel marketers or 
middlemen about products or services, and motivating the members of 
Pricing
Strategy the marketing channel to promote products and services. Hence, 
marketing and sales alignment is critical to an effective channel strategy.

Product Strategy (Perceived Quality)
Designing and delivering a product or service that fully satisfies consumer Product Strategy (CRM)
needs and wants is a prerequisite for successful marketing . Using Relationship Marketing Perspective in Formulating
How  do consumers form their opinions about Products? 
Perceived quality and value
Product  Strategy and Offering 
Perceived quality is customers’ perception of the overall • Customer relationship management (CRM) is the overall
quality or superiority of a product or service compared to process of building and maintaining profitable customer
alternatives and with respect to its intended purpose  relationships by delivering superior value and
Perceived Quality Dimensions:  satisfaction
• Performance : Levels which primary characteristics operate (low, medium, high or  • Uses a company’s data systems and applications to track
very high 
• Features : Secondary elements that complement primary characteristics
consumer activity and manage customer interactions
• Conformance Quality: Degree at which product meets  specification products with the company
• Reliability: Consistency of performance over time and from purchase to purchase
• Durability : Expected economic life of the product 
• Serviceability : Ease of servicing the product 
• Style and Design : Appeal or feel of quality 
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Product Strategy (Aftermarketing)
Aftermarketing
Those marketing activities that occur after customer purchase. It is
aimed at enhancing the product consumption experience and
thereby build brand equity e.g. innovative design, effective
communication such as product manual etc. CANON DU
Research by Accenture in 2010 found that two in three customers
switched companies in the past year due to poor customer service
Product Strategy>Aftermarketing> Loyalty or Frequency program
Loyalty or Frequency programs
Identifying, maintaining, and increasing the yield from a firm’s
best customers through long‐term , interactive, value‐added
relationships. Airlines giving free trips and upgrades based on
mileage flown. It also involves co‐branding e.g. Airlines and Hotels
etc.
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Product Strategy>Aftermarketing>User Manual
User Manual 
Instruction or user manuals for many products are too often an
afterthought, put together by engineers who use overly technical
terms and convoluted language. Online help forums put the
consumer at the mercy of other equally ignorant users or so‐called
experts who may not understand or appreciate the obstacles the
average consumer faces.
Pricing Strategy
• Price : The amount of money charged for a
product or service. It is the sum of the values
that consumers exchange for the benefits of
having or using the product or service
• Price is the only element in the marketing mix
that produces revenue, all other elements
represent costs.
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Pricing Strategy
• Consumer Price Perceptions (relationship
between price and quality )
• Setting Prices to build brand equity
(Consumers often rank brands according to
price tiers in a category)
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Pricing Implication
• 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
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Channel Strategy
Marketing Channels    Channel Design
Set of interdependent organizations involved in  Indirect Channels
 Retailers
the process of making a product or service  Tiered Marketing 
available for use or consumption.  Cooperative Advertising  

The manner by which a product is sold or
distributed can have a profound impact on the
resulting equity and ultimate sales success of
a brand.
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 Direct Channels 
 Company Owned Stores
 They can act as advertisements and tourist attractions
 Create own shops in major department stores
 Web Strategies 
 Bolsters other marketing efforts
 Makes brand more engaging

Channel Management: Push and 
Pull Strategies
• By devoting marketing efforts to the end
consumer, a manufacturer is said to employ a
pull strategy.
• Alternatively, marketers can devote their
selling efforts to the channel members
themselves, providing direct incentives for
them to stock and sell products to the end
consumer. This approach is called a push
strategy.
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