MGMC11H3 Chapter Notes - Chapter 5: Customer Experience, Brand Equity, Permission Marketing

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MGMC11 – Chapter 5: Designing Marketing Programs to Build Brand Equity:
New Perspective on Marketing:
- Rapid technological developments
- Greater customer empowerment
- Fragmentation of traditional media
- Growth of interactive and mobile marketing option
- Channel transformation and disintermediation
- Increased competition and industry convergence
- Globalization and growth of developing markets
- Heightened environmental, community, and social concerns
- Severe economic recession
Integrated Marketing:
- Implication with CBBE concept  manner in which brand associations are formed does not matter
oOnly resulting awareness and strength, favourability, and uniqueness of brand awareness
- Marketers should evaluate all possible means to create knowledge considering efficiency, cost, and
effectiveness
-Contact – any info-bearing experience that a customer or prospect has with the brand, the product category, or
the market that relates to the marketer’s product or service
-Personalizing marketing:
oExperiential marketing – promotes a product by not only communicating a product’s features and
benefits but also connecting it with unique and interesting consumer experiences
“the idea is not to sell something, but to demonstrate how a brand can enrich a customer’s life”
If you charge for stuff  commodity business
If you charge for tangible things  goods business
If you charge for the activities you perform  service business
If you charge for the time customers spend with you  experience business
4 varieties: entertainment, education, aesthetic, and escapist
“experiential marketing is usually broadly defined as any form of customer-focused marketing
activity, at various touchpoints, that creates a sensory-emotional connection to customers”
Sense marketing  appeals to consumers’ senses (sight, sound, touch, taste, and smell)
Feel marketing  appeals to consumers’ inner feelings and emotions
oMildly positive moods linked to a brand
oStrong emotions of joy and pride
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Think marketing  appeals to the intellect in order to deliver cognitive, problem-solving
experiences that engage customers creatively
Act marketing  targets physical behaviours, lifestyles, and interactions
Relate marketing  creates experiences by taking into account individuals’ desires to be
part of a social context
Experience providers can become a part of a marketing campaign to create these experiences
“customers want to be entertained, stimulated, emotionally affected and creatively challenged”
Customer experience management (CEM)  process that involves monitoring 3 different
patterns:
Past patterns  evaluating completed transactions
Present patterns  tracking current relationships
Potential patterns  conducting inquiries in the hope of unveiling future opportunities
oRelationship marketing – marketing strategies that transcend the actual product/service to create
stronger bonds with consumers and maximize brand resonance
Based on the premise that current customers are the key to LT brand success
Attempts to provide a more holistic, personalized brand experience to create stronger consumer
ties  expands both the depth and the breadth of brand-building marketing programs
Mass customization:
Making products to fit the customer’s exact specifications
Online  customers can communicate their preferences directly to the manufacturer
oAdvanced production method  assemble the product for a price comparable to
that of a non-customized item
Enables consumers to distinguish themselves with even basic purchases
Not restricted to products  improving personal nature
Offer supply-side benefits:
oReduce inventory
oSaving warehouse space & expense of keeping track of everything and
discounting leftover merchandise
Limitations  not every product is easily customized and not every product demands
customization
oReturns are problematic  may not have broader appeal
One-to-one marketing:
Consumers help add value by providing info to marketers
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Marketers add value by taking that info and generating rewarding experience for
consumers
Firm can then (help build strong, profitable relationships):
oCreate switching costs
oReduce transaction costs
oMaximize utility for consumers
Based on fundamental strategies:
oFocus on individual consumers through consumer databases  we single out
consumers
oRespond to consumer dialogue via interactivity  the consumer talks to us
oCustomize products and services  we make something unique for him/her
Treating different consumers differently because of their different needs & different
current and future value to the firm
Online/offline reminders can be helpful but must know that not all consumers always
want to repeat their behaviours
Permission marketing – the practice of marketing to consumers only after gaining their express
permission
Consumers have come to expect (but not appreciate) interruption marketing
Consumers appreciate receiving marketing messages they gave permission for
First need to get consumers’ permission with some kind of inducement (samples,
promos/discounts, contests, etc.)
oMight develop stronger relationships with consumers to desire to receive
further communications in the future
oWill only develop if marketers respect consumers’ wishes and consumers
express a willingness to become more involved with the brand
5 steps of effective permission marketing:
oOffer the prospect an incentive to volunteer
oOffer the interested prospect a curriculum over time, teaching the consumer
about the product/service being marketed
oReinforce the incentive to guarantee that the prospect maintains their
permission
oOffer additional incentives to get more permission from the consumer
oOver time, leverage the permission to change consumer behaviour toward
profits
Works because it is “anticipated, personal, and relevant”
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Document Summary

Mgmc11 chapter 5: designing marketing programs to build brand equity: Implication with cbbe concept manner in which brand associations are formed does not matter: only resulting awareness and strength, favourability, and uniqueness of brand awareness. Marketers should evaluate all possible means to create knowledge considering efficiency, cost, and effectiveness. Contact any info-bearing experience that a customer or prospect has with the brand, the product category, or the market that relates to the marketer"s product or service. Personalizing marketing: experiential marketing promotes a product by not only communicating a product"s features and benefits but also connecting it with unique and interesting consumer experiences. The idea is not to sell something, but to demonstrate how a brand can enrich a customer"s life . If you charge for stuff commodity business. If you charge for tangible things goods business. If you charge for the activities you perform service business. If you charge for the time customers spend with you experience business.

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