Master degree in MANAGEMENT

MARKETING MANAGEMENT
Lecturer:
Maria Manuela Guerreiro (mmguerre@ualg.pt )

1st semester, 2023-2024

ACTIVITY 1

Write on a sheet of paper the 1st word that comes up

your mind when you listen the word MARKETING.
 1. Marketing:
I. UNDERSTANDING Creating and
Capturing Customer
MARKETING MANAGEMENT Value
MARKETING. WHAT IS IT?

“Marketing takes a day to learn…”.

Philip Kotler
MARKETING DEFINED
 WHAT IS MARKETING?

‘Marketing consists of those activities involved in the flow of

goods and services from the point of production to the point
of consumption.’

(American Marketing Association, 1938)

 WHAT IS MARKETING?

“Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution of ideas, goods,
and services to create exchanges that satisfy individual and
organizational objectives”.

American Marketing Association (1985)

 WHAT IS MARKETING?

“Marketing is an organizational function and a set of

processes for creating, communicating and delivering value to
customers and for managing customer relationships in ways
that benefit the organization and its stakeholders”.

(American Marketing Association, 2004)

 WHAT IS MARKETING?

‘Marketing is the activity, set of institutions, and processes for

creating, communicating, delivering and exchanging offerings
that have value for customers, clients, partners, and society at
large.’

(American Marketing Association, 2007)

 WHAT IS MARKETING?

Marketing is a societal process by which individuals and

groups obtain what they need and want through creating,
offering, and freely exchanging products and services of
value with others.
Kotler & Armstrong (2012)
 ACTIVITY 2

Guided by the Sustainable Development Goals of the United

Nations, discuss, as a group, to what extent Marketing
definitions have adapted. Identify 1 or 2 illustrative cases of
good practice (20 minutes).
(UN) https://www.un.org/sustainabledevelopment/sustainable-development-goals/
Marketing is the delivery of experience.
P. Kotler
When IKEA noticed that people wanted good
furnishings at substantially lower prices, it created
knockdown furniture.
…DEMARKETING

1. (economic definition) A term used to describe a marketing

strategy when the objective is to decrease the consumption
of a product.

2.(social marketing definition) The process of reducing the

demand for products or services believed to be harmful to
society.
AMA, 2015
 MARKETING MYOPIA

The mistake of paying more attention to the specific

products a company offers than to the benefits and
experiences produced by these products.

Kotler & Armstrong, 2012

“We see MARKETING MANAGEMENT as
the art and science of choosing target
markets and getting, keeping, and
growing customers through creating,
delivering, and communicating superior
customer value”.
Kotler & Keller, 2012: 5
MARKETING. WHAT IS IT?

“Marketing takes day to

learn…”.

Philip Kotler
 THE
MARKETING
PROCESS
Kotler & Armstrong (2012)
The Marketing Process

marketing create value

for customers in order
to capture value from
customers in return.

Kotler & Armstrong (2012)

Marketing Management tasks

Building Strong Connecting with

Brands Customers

Capturing Marketing Developing Marketing

Insights Strategies and Plans

Shaping the Market

Delivering Value
Offerings

Creating Successful
Communicating Value
Long-Term Growth
A BRIEF HISTORY OF
MARKETING THEORY
 A BRIEF HISTORY OF MARKETING THEORY
1st era: Founding the field (1900–20): Economists had been focused on
production and attention was needed on distribution.

2nd era: Formalising the field (1920–50): It was in this period that electricity
appeared in the majority of US homes and subsequently the accompanying
consumer products. Packaged goods delivered by new retailing concepts like
supermarkets, also appeared.
Academically the field was spun-off from economics. There was an increased
emphasis on the functional approach to marketing (for example, supplying the
market, creating opportunities for exchange and undertaking facilitating
functions). Wilkie and Moore (2012)
 A BRIEF HISTORY OF MARKETING
THEORY

3rd era: Paradigm shift (1950–80). Mass marketing dominated. The focus of
marketing was to look at the subject from the perspective of the marketing
manager. This led to the development of concepts such as the marketing
orientation, segmentation, the 4Ps (product, place, price and promotion) and
branding.

Wilkie and Moore (2012)

 A BRIEF HISTORY OF MARKETING
THEORY

4th era: A fragmentation of the mainstream (1980–present): This era

returned to a more economic focus. It was strongly influenced by Michael
Porter and his five-forces model and the paradigm of competitive advantage.
Advances in economic strategy and game theory also influenced the growth of
the strategic marketing school. The field has also been influenced by the
globalisation of marketing.
 A BRIEF HISTORY OF MARKETING
THEORY

“goods dominant logic” – distribution and exchange of

commodities. … tangible outputs and discrete transactions.

“service-dominant logic” – Key-words: intangibility, exchange

processes and relationships . It implies that firms want to customise
offerings, and recognise that the consumer is always a co-creator of
value.
Vargo and Lusch (2004)
 COMPANY ORIENTATION
TOWARD THE MARKETPLACE
 Production: Here the focus is on producing
more, SELLING HIGH VOLUMES,
controlling costs and production
COMPANY efficiency.
ORIENTATION
TOWARD THE
MARKETPLACE The firm which pioneered this orientation is Ford in
the early 1900s, with its adoption of assembly line
manufacturing and a standardized product…

available in any
The Model T, which was
colour ‘as long as it’s black!’
 Product: This orientation moves away from
standardized products and focuses on
improving quality. The assumption is that
customers want a better quality version of the
COMPANY same thing, and are prepared to pay a
ORIENTATION premium for a differentiated product.
TOWARD THE
MARKETPLACE This approach was first adopted by General
Motors (GM) in the 1930s, which gained
market share from Ford in the 1930s by
offering customers a diversified product
line.
 Selling: focuses on aggressive sales and
promotion to sell whatever the
organisation wants to make or distribute.
COMPANY
ORIENTATION Here the seller’s needs come first, and
products are ‘pushed’ under the assumption
TOWARD THE that if the price is low enough, customers
MARKETPLACE will buy the product whether they like it or
not.

Examples: firms that use door-to-door

salesmen to distribute encyclopedias or
vacuum cleaners.
 Marketing: The marketing orientation is
one of the most advanced orientations
according to marketing founders such as
COMPANY Philip Kotler. They feel this way because
marketing, unlike other orientations,
ORIENTATION focuses on the end user by first defining
TOWARD THE customer needs and then developing
MARKETPLACE offerings that deliver what the customer
wants and needs.

In this approach, customers and their needs

come first.
“In the factories we make
perfume, … but in the
stores we sell hope”.

Charles Revson,
fundador da marca Revlon.
 Societal: The most recent orientation to
have been identified, is the societal
orientation where marketers following the
marketing orientation also take into
COMPANY account present and future customer
ORIENTATION welfare, as well as the welfare of the
TOWARD THE environment.
MARKETPLACE
The practical implications of this
orientation are, for example, fast food
restaurants that offer lower fat options and
which use recyclable napkins and mats.
https://www.imagensdemarca.pt/artigo/coca-cola-apresenta-
prototipo-de-garrafa-de-papel/
THE CHANGING MARKETING
LANDSCAPE
THE DIGITAL AGE: ONLINE, MOBILE & SOCIAL
MEDIA MARKETING
 Digital technology has changed the way we live - how we
communicate, share information, access entertainment,
and shop.
INTERNET OF THINGS (IoT)

More than 3.3 billion people (46%

of the world’s population) are now online;
64% of all American adults own smartphones.
Kotler et al, 2018
 DIGITAL AND SOCIAL MEDIA
MARKETING

It involves using digital marketing tools such as websites, social

media, mobile ads and apps, online video, email, blogs, and other

digital platforms to engage consumers anywhere, anytime via

their computers, smartphones, tablets, internet ready TVs, and other

digital devices.
 SOCIAL MEDIA MARKETING

Online social media provide a digital home where

people can connect and share important information
and moments in their lives. As a result, they offer an
ideal platform for real-time marketing, by which
marketers can engage consumers in the moment by
linking brands to important trending topics, real-
world events, causes, personal occasions, or other

important happenings in consumers’ lives.

In all, NASA has more than 480 social media accounts spanning various topics and digital platforms.
The agency has more than 14 million facebook fans, 14.5 million twitter followers, 8.8 million
instagram followers, and 76,000 youtube subscribers.
 MOBILE
MARKETING
Marketers use mobile channels
to stimulate immediate buying,
make shopping easier, enrich
the brand experience, or all of
these
 INTEGTRATED MARKETING STRATEGY

The key is to blend the new digital approaches with

traditional marketing
to create a smoothly integrated marketing strategy
and mix
 Great Recession of 2008 to 2009

Consumption ack in line with consumers’ incomes

THE CHANGING
ENVIRONMENT
and rethink their buying priorities.

ECONOMIC
Post Recession era

Sensible
consumption
 FOR-PROFIT MARKETING
THE GROWTH OF NOT-
colleges, hospitals, museums, zoos, symphony orchestras,
foundations, and even churches.

Fundraising efforts include everything from public service announcements,

celebrity endorsements, corporate partnerships, and an extensive online
presence to events ...
 WORLD
WILDLIFE FUND
(WWF)
 RAPID GLOBALIZATION
Global competition Global consumption trends

What is global marketing?

How does it differ from domestic marketing?
How do global competitors and forces affect our business?
To what extent should we “go global”?
 MARKETING
SUSTAINABLE
Today’s customers expect companies to

deliver value in a socially in an

environmentally responsible way.

COMPANIES:

social & environmental responsibility

 SO, WHAT IS MARKETING?

Simply put, marketing is the process of engaging

customers and building profitable customer relationships
by creating value for customers and capturing value in
return.
AN EXPANDED MODEL OF THE MARKETING PROCESS

Kotler et al, 2018: 54

MARKETING. WHAT IS IT?

“Marketing takes day to

learn…
Unfortunately it takes a
lifetime to master”.

Philip Kotler
KOTLER & ARMSTRONG (2012)
CUSTOMER NEEDS,
WANTS & DEMANDS
 … the basic human requirements such as for air, food,
water, clothing, and shelter. Humans also have strong
Needs
needs for recreation, education, and entertainment.
These needs become wants …
… when they are directed to specific objects that
Wants might satisfy the need. Wants are shaped by our
society.
Demands are wants for specific products backed by an
Demands ability to pay.
Target Markets, Positioning, and Segmentation

Offerings and Brands

Value and Satisfaction
(Kotler & Keller, 2012)
Competition
II. ANALYSING CONSUMER MARKETS:
CONSUMER BEHAVIOUR
2. ANALYSING CONSUMER MARKETS

CONSUMER BEHAVIOUR
The aim of marketing is TO MEET &
SATISFY TARGET CUSTOMERS’ NEEDS
AND WANTS BETTER THAN
COMPETITORS. Marketers must have a
thorough understanding of how
consumers think, feel, and act and offer
clear value to each and every target
consumer.
Successful marketing requires that companies fully
connect with their customers. Adopting a holistic
marketing orientation means understanding customers —
gaining a 360-degree view of both their daily lives and the
changes that occur during their lifetimes so the right
products are always marketed to the right customers in the
right way.
Kotler & Keller (2012)
 WHAT IS IT?

… it is the study of how individuals, groups and organizations

select, buy, use, and dispose of goods, services, ideas or
experiences to satisfy their needs and wants. Kotler & Armstrong (2014)

consumer (buying)
the consumer market
behaviour
The buying behaviour of final All the individuals and households
consumers – individuals and who buy or acquire goods and
households who buy goods and services for personal consumption.
services for personal consumption.
HOW TO EXPLAIN CONSUMER
BEHAVIOUR?
models of consumer behaviour
 CONSUMER
RESEARCH
Who buys? How do they buy?
When do they buy? Where do
they buy?
Why do they buy?
 How do consumers respond to various
marketing stimuli that the company might use?

Marketing Market
stimuli response
THE STIMULUS–RESPONSE MODEL OF
BUYER BEHAVIOUR

?
Kotler et al (2018)
A) CHARACTERISTICS AFFECTING
CONSUMER BEHAVIOUR
 CULTURE
SUBCULTURE
Culture
The set of basic values, perceptions, wants, and
behaviours learned by a member of society from
family and other important institutions.

subcultures
groups of people with shared value systems
based on common life experiences and
situations (nationalities, religions,
racial groups, and geographic regions, …).
HEALTHY FOOD
ENVIRONMENTALLY
FRIENDLY
HEALTH AND
FITNESS
 SOCIAL CLASS

Relatively permanent and ordered divisions

in a society whose members share similar

values, interests, and behaviours.

Social classes show distinct product and brand preferences

(clothing, home furnishings, travel and leisure activity, financial
services, and automobiles).

It is measured as a combination of income, occupation, income, education, wealth, and other variables
 SOCIAL FACTORS

 Groups and Social Networks

 Word of Mouth |electronic Word of Mouth
 Opinion Leaders | Digital influencers
 Online social communities (blogs, online social media,
brand communities, and other online forums)

 Family
 PERSONAL FACTORS

 Occupation Lifestyle
a person’s pattern of living as expressed in his or
 age and stage her psychographics.
 measuring consumers’ major AIO dimensions:
 economic situation
Activities (work, hobbies, shopping, sports, social
 Lifestyle events)

 Interests (food, fashion, family, recreation)

 Opinions (about themselves, social issues, business,
products).
 PERSONAL FACTORS

 personality | self-concept
The unique psychological characteristics that distinguish a person
or group.

brands also have personalities, and consumers are likely

to choose brands with personalities that match their own.
A brand personality is the specific
mix of human traits that may be
attributed to a particular brand.
The new MINI brand campaign got underway in June under the already established “NOT NORMAL” claim.
The global campaign conveys the brand's individual, high-energy attitude to life and highlights the strong
emotional and personal connection between driver and MINI. “NOT NORMAL” focuses on MINI's strong,
independent character (www.press.bmwgroup.com).

MINI appeals to personality segments: people who are “adventurous, individualistic,

openminded, creative, tech-savvy, and young at heart,” just like the car! MINIacs
 PSYCHOLOGICAL FACTORS

 Motivation (motive | drive)

Maslow’s Hierarchy of Needs
 PSYCHOLOGICAL FACTORS
 Perception
The process by which people select, organize, and interpret information to form a meaningful
picture of the world.
Perceptual processes
selective attention
selective distortion
selective retention
Individuals are exposed to an
estimated 3,000 to 5,000 ad
messages daily—from TV and
magazine ads to billboards to
social media ads and posts on their
smartphones!
 PSYCHOLOGICAL FACTORS

 Learning (experience  learn)

 Beliefs (descriptive thoughts)

 Attitudes (evaluations, feelings, and tendencies toward an object or idea)
BUYER DECISION BEHAVIOUR | …
 BUYER DECISION … | PROCESS
Five-Stage Model of the Consumer Buying
Process

Kotler & Keller (2012)

Consumer behaviour model

Kotler & Keller (2012)

III. UNDERSTANDING THE
MARKETPLACE
 1. MARKETING ENVIRONMENT

“The actors and forces outside marketing that affect

marketing management’s ability to build and maintain
successful relationships with target customers” (Kotler et al,
2018).
 MARKETING
ENVIRONMENT

PUBLIC HEALTH
ENVIRONMENTAL SUSTAINABILITY
 The actors close to the company that affect its
MICROENVIRONMENT ability to serve its customers.
MACROENVIRONMENT
Changes in the marketing
environment mean that
marketers must meet new
consumer needs that may be
quite different – even directly
opposite – from those in the past.
 COVID-19

“The impact of Covid-19 on the global economy is likely to be

unprecedented since the 1930s Great Depression (Euronews, 2020)”
(He & Harris, 2020: 176).

… “Therefore probably the Covid-19 pandemic represents one of

the most significant environmental changes in the modern
marketing history, which could potentially have a profound impact
on corporate social responsivity (CSR), consumer ethics, and basic
marketing philosophy (He & Harris, 2020: 176).
 COVID-19

 Longlasting profound economic, social, political, and cultural

impacts…

 “The United Nation (UN) has made a call for efforts to build more
inclusive and sustainable post Covid-19 economies that are more
resilient in facing global challenges, such as pandemics, climate
changes, and others, instead of going back to the world as it was
before” (UN.org, 2020).
 COVID-19
lockdown + social distancing measures

CONSUMER’s decision making

consumer decision making is currently driven purely by self-interest
and emotions, such as fear, anger, and anxiety.
Supermarkets = rationing and designating opening hours for key workers
and seniors.

altruistic behaviours during the pandemic: resisting panic buying

and buying groceries for vulnerable residents (e.g., over 70s)
(Guardian, 2020).

He & Harris, 2020 CORPORATE SOCIAL RESPONSABILITY

 COVID-19

The impact on the context of marketing

The marketing microenvironments of organizations have been hit by a
tsunami of change that outweighs any previous fluctuations and
reverberations.
 Local supply chains
 Global supply chains  Take-away ‘fine dinning’
 Restaurants with ‘fine dinning’  Supermarket delivers
 Fast-foof delivers  Public safety campaigns
 Collaboration for the good of all
 IV. CUSTOMER-DRIVEN MARKETING STRATEGY:
CREATING VALUE FOR TARGET CUSTOMERS

To compete more effectively, many companies are now embracing

target marketing. Instead of scattering their marketing efforts, they’re
focusing on those consumers they have the greatest chance of satisfying.
CREATING VALUE
FOR TARGET CUSTOMERS

 dividing up markets into meaningful customer groups

(SEGMENTATION)
 choosing which customer groups to serve (TARGETING)
 creating market offerings that best serve targeted
customers (DIFFERENTIATION)
 POSITIONING the offerings in the minds of consumers
MARKET SEGMENTATION
Dividing a market into smaller segments with distinct needs, characteristics, or
behavior that might require separate marketing strategies or mixes.

A MARKET SEGMENT is a group of consumers who respond in a similar way

to a given set of marketing efforts

It addresses the first simple marketing question:

What customers will we serve?

Kotler & Armstrong (2012)

In what ways can a company
divide a market into segments?
Major segmentation variables for consumer markets
THE FOUR MAIN GENERATION COHORTS OF
CONSUMERS

1st generation of digital natives | their affinity

for technology helps shape how they shop.
 ARTS
AUDIENCES
(UK)
By Arts Council England (2011).
AUDIENCE SPECTRUM
PEN PORTRAITS
(PROFILES)
(UK)
By Arts Council England (2020).

Source:
https://www.artscouncil.org.
uk/participating-and-
attending/culture-based-
segmentation
PRIZM classifies every American household based on a host of demographic factors
(age, education level, income, occupation, family composition, ethnicity, housing),
behavioural and lifestyle factors (purchases, free-time activities, media preferences)

PRIZM enables marketers to create a complete portrait of their customers by answering

these important questions:

•Who are my best customers?

•What are my best customers like?
•Where can I find my best customers?
•How can I reach my best customers?
WHAT ARE THE REQUIREMENTS FOR
EFFECTIVE SEGMENTATION?
To be useful, market segments must be …:

 Measurable: The size, purchasing power, and profiles of the segments can be measured.
 Accessible: The market segments can be effectively reached and served.
Substantial: The market segments are large or profitable enough to serve.
 Differentiable: The segments are conceptually distinguishable and respond differently
to different marketing mix elements and programs. For example, if men and women
respond similarly to marketing efforts for soft drinks, they are not separate segments.
 Actionable: Effective programs can be designed for attracting and serving the segments.
For example, although one small airline identified seven market segments, its staff was
too small to develop separate marketing programs for each segment.
HOW SHOULD A COMPANY CHOOSE THE MOST
ATTRACTIVE TARGET
MARKETS?

(Market) TARGETING

The process of evaluating each market segment’s

attractiveness and selecting one or more segments
to enter.
Kotler & Armstrong, 2012
POSSIBLE LEVELS OF SEGMENTATION
Which customers will the
company serve?

Market Targeting Strategies The process of evaluating each market segment’s attractiveness and
selecting one or more segments to enter.

Kotler & Armstrong (2012)

VALUE PROPOSITION

The successful creation of a customer-focused value

proposition is a cogent reason why the target market
should buy the product.
VALUE PROPOSITION - how it will create
differentiated value for targeted segments and
what positions it wants to occupy in those
segments?
Volvo’s core positioning
has been “safety”, but the
buyer is promised more
than just a safe car;
other benefits include…:
good performance,
design,
safety for the
environment.
 ALTERNATIVES
TARGET INSIGHT (what alternatives already
(segmentation & (what is the exist? & Why don't they
targeting = who is PROBLEM my target fully satisfy the target's
your target?) has?) needs and desires?).

REASON WHY SUPERIORITY

BENEFIT (What are the reasons (differentiating
(What benefit WILL – objective and/or attributes/benefits =
solve the problem of symbolic – that justify
Unique Selling
your targets?) the relevance of the
benefit offered?) Proposition)

Unique Emotional Proposition

When Airbnb began to disrupt the hospitality industry, it needed to market to two separate
groups: guests who wanted a place to stay and hosts who wanted to rent out their spaces.
Their two-in-one value proposition: Travelers benefit from a truly local experience and hosts
benefit from extra income. In their own words, “Airbnb exists to create a world where anyone
can belong anywhere, providing healthy travel that is local, authentic, diverse, inclusive and
sustainable”.
Their rooms often have more character than hotels, and they’re usually located in
neighborhoods people live in. Guests learn from local knowledge shared by hosts and feel at
home wherever they go. These different sources of value wrap together into Airbnb’s
tagline: Belong Anywhere.
As a business goes through different stages of growth, its value proposition is likely to
change, too. Originally marketed as much cheaper than staying in a hotel, Airbnb has now
become an experience-driven, mainstream staple with a premium wing called “Airbnb Plus,”
with its own value proposition. https://www.helpscout.com/blog/value-proposition-examples/
 (BRAND) POSITIONING
All marketing strategy is built on segmentation, targeting, and
positioning (STP). A company discovers different needs and groups in
the marketplace, targets those it can satisfy in a superior way, and
then positions its offerings so the target market recognizes the
company’s distinctive offerings and images.

Kotler & Keller

 Positioning is the act of designing a
company’s offering and image to occupy a
distinctive place in the minds of the target market.
The goal is to locate the brand in the minds of
consumers to maximize the potential benefit to the
firm.

Kotler & Keller (2012)

Positioning
Creating a compelling, well-differentiated brand
position requires a keen understanding of consumer
needs and wants, company capabilities, and
competitive actions. It also requires disciplined but
creative thinking.
Kotler & Keller (2012)

Differentiation
Actually differentiating the market offering to
create superior customer value. Kotler & Armstrong (2012)
PERCEPTUAL POSITIONING MAPS show consumer
perceptions of their brands versus competing products on important
buying dimensions.
Perceptual positioning map for the U.S. large luxury sport utility
vehicle (SUV) market

The position of each

circle on the map
indicates the brand’s
perceived positioning on
two dimensions: price
and orientation (luxury
versus performance).
The size of each circle
indicates the brand’s
relative market share.
 BUILDING STRONG BRANDS
What is a brand, and how does branding work?
(Kotler & Kelly, 2012: 241-)
 Abrand is a "Name,
term, design, symbol, or any
other feature that identifies
one seller's good or service
as distinct from those of
other sellers."

(American Marketing Association (2013) Dictionary,

http://www.marketingpower.com/_layouts/dictiona
ry.aspx?dletter=b)
“A brand is not a product. It is the product´s essence, its
meaning, and its direction, and it defines its identity in
time and space.

(…) too often brands are examined through their

component parts: the brand name, its logo, design, or
packaging, advertising or sponsorship, or image or name
recognition, or very recently, in terms of financial brand
valuation.

Real brand management, however, begins much earlier,

with a strategy and a consistent, integrated vision. Its
central concept is brand identity, not brand image”
(Kapferer, 1992:11).
 "A brand often includes an explicit logo, fonts,
color schemes, symbols, sound which may be
developed to represent implicit values, ideas, and
even personality."

(Added definition)

(American Marketing Association (2013) Dictionary,

http://www.marketingpower.com/_layouts/dictionary.aspx?dletter=b)
"A brand is a customer experience represented by a collection of images and
ideas; often, it refers to a symbol such as a name, logo, slogan, and design scheme. Brand
recognition and other reactions are created by the accumulation of experiences with the specific
product or service, both directly relating to its use, and through the influence of advertising, design,
and media commentary."
(American Marketing Association (2013) Dictionary,
http://www.marketingpower.com/_layouts/dictionary.aspx?dletter
=b )
BRAND DIMENSIONS

functional, rational, or tangible—related to

product performance of the brand

symbolic, emotional, or intangible—

related to what the brand represents or
means in a more abstract sense
 ROLES OF BRANDS
 … identify the source or maker of a product
 … allow consumers (either individuals or organizations) to assign responsibility
customers for its performance
 … simplify decision making process
 … reduce risk
 … simplify product handling or tracing
 … organize inventory and accounting records
 … legal protection for unique features or aspects of the product
 … credible brand signals a certain level of quality
Firms  … impacts on loyalty
 … creates barriers to entry of competitors
 … willingness to pay a higher price
 … competitive advantage
 STRATEGIC BRAND MANAGEMENT PROCESS

Identify and Plan and

establish Measure and Grow and
Implement
Brand Interpret Sustain
Brand
Positioning Brand Brand Equity
Marketing
and Values Performance Values
Programs

• brand positioning model • brand elements: brand • brand equity • customer-based brand
describes how to guide names, URLs, logos, measurement system is equity is the differential
integrated marketing to symbols, characters, a set of research effect that brand
packaging, and slogans procedures designed knowledge has on
maximize competitive
to provide timely, consumer response to
advantages? • marketing activities: accurate, and the marketing of that
Price, promotion, place, actionable information brand.
• brand resonance model … to support tactical and
describes how to create • secondary associations: strategic decisions. What makes a brand
intense and loyal Country of origin, strong?
endorsement, corporate How do you build a
relationships with
brand, … strong brand?
customers?
 BRAND RESONANCE MODEL

The Brand Resonance refers to the extent to which a

person feels that he or she resonates or connects
with a brand and feels “in sync” with it (Keller,
2001)
The brand resonance model looks at building a brand
as a sequence of steps:

1. Who are you? (BRAND IDENTITY)

2. What are you? (BRAND MEANING)

3. What about you? What do I think or feel about you? (BRAND RESPONSES)
4. What about you and me? What kind of association and how much of a
connection would I like to have with you? (BRAND RELATIONSHIPS)
Brand identity means the uniqueness and essential idea of the
brand (Aaker, 1996; de Chernatony, 2010; Kapferer, 2008; da Silveira, Lages and Simões, 2013).

What is it?

… It is “a unique set of brand associations that the brand strategist aspires to create
or maintain” (Aaker, 1996, p. 68) and it “represents what the organization can and will do
over time” (Aaker and Joachminsthaler, 2000, p. 13). These associations create value through
emotional and functional benefits (Aaker, 1996).
Brand identity is a program that integrates every visual and verbal
element of a company’s graphic design, including typography, colour, imagery,
and its application to print, digital media, environmental graphics, and any other
conventional or unconventional media.
 The role of BRAND IDENTITY is
broadly recognized both by academia and
professionals as an essential tool in the
branding process aiming at differentiating
one brand from another (Aaker, 1996;
Joachimsthaler & Aaker, 1999; Kapferer, 2008; Keller, 2008).
Accordingly with many scholars, the brand identity is
expressed through four dimensions:

Brand as a
product

Brand as a Brand Brand as an

symbol organization
identity

(Semprini, 1992; Aaker,1996; Joachimsthaler e Brand as a

Aaker, 1997; Lencastre, 2007; Filho, Souza e person
Barbosa, 2010).
 Brand Structure
Visual Verbal
identity identity
Logo Words
symbols Speach
colours Communication tone
lettering Storytelling
… Naming
…

Brand Elements
WHAT CRITERIA FOR CHOOSING AND DESIGNING IT?
HOW TO CHOOSE BRAND ELEMENTS TO BUILD
BRAND EQUITY?

 Memorability
 Meaningfulness
 Aesthetic appeal
 Transferability
 Adaptability and flexibility
 Legal and competitive protectability and defensibility
Keller, 2003
 Brand Identity (Keller, 2003)

Brand Brand awareness

elements
Unique and distinctive brand associations
Brand
Favourable attitudes Equity

Positive feelings

Brand identity
Brand performance
(brand equity)
 Kevin, K. L. (1993) Conceptualizing, measuring, and managing
customer – based brand equity”, Journal of Marketing (57): 1-22.
 Brand Equity

“The value of a brand. From a consumer

perspective, brand equity is based on
consumer attitudes about positive brand
attributes and favorable consequences of
brand use”.
http://www.marketingpower.com/_layouts/dicti
onary.aspx?dLetter=B
 KELLER’S BRAND EQUITY MODEL

“In order to build a strong brand, you must shape how

customers think and feel about your product. You have
to build the right type of experiences around your brand,
so that customers have specific, positive thoughts,
feelings, beliefs, opinions, and perceptions about it”

(Keller, 2013)
THE CAUSAL NATURE OF BRAND EQUITY

Chernatony, McDonald & Wallace

BRANDS MANIFEST THEIR IMPACT AT THREE PRIMARY LEVELS:

Customer-market Company-market

Brand equity
measurement
perspectives 
MEASURING
BRAND EQUITY
Financial-market
 Customer-based
From the customer point of view, brand equity is part of the attraction to – or
repulsion from – a particular product from a particular company generated by
the “non-objective” part of the product offered.
Keller & Lehmann, 2005
Dimensions of Customer-Based Brand
Equity
Customer-Based Brand Equity - CBBE model (Keller, 2003)
Brand resonance model
 MAIN REFERENCE

Kotler, P. & Keller, K. L. (2012)

Marketing Management. Prentice-Hall,
N.Y.: 212-294.
V. MARKETING MIX
The set of tactical marketing tools -
product, price, place, and promotion -
that the firm blends to produce the
response it wants in the target market.
Kotler & Armstrong, 2012: 51
MARKETING MIX The traditional components
of marketing mix.

Kotler & Armstrong (2012)

MARKETING MIX
PRODUCT

At the heart of a great brand is a

great product. Product is a key
element in the market offering. To achieve
market leadership, firms must offer products and
services of
superior quality that provide unsurpassed
customer value.
Kotler & Keller (2012)
 PRICE Understanding and capturing
consumer value

No matter what the state of the

economy, companies should sell
value, not price.
PLACE Delivering costumer
value
PROMOTION Communicating costumer
value