MARKETING MANAGEMENT REPORT TOPICS: TOPIC 10 : CREATING BRAND EQUITY Devising A Branding Strategy Customer Equity TOPIC 11 : DEALING WITH COMPETITION Competitive Forces Identifying Competitors REPORTER : ESTRAÑERO, LIZA ANGELOU GRACIA D. Topic 10 : Creating Brand Equity DEVISING A BRAND STRATEGY May choose to use existing brand aspects that are common to other goods or lines of business when developing a branding strategy May choose to create entirely new and distinctive brand features. Firms may utilize a combination of the two at times. When it comes to developing a branding strategy, the company has three options: 1. For a new product, create new brand elements. 2. Use some of the brand's existing elements. 3. For existing and new brand elements, mix and match. Creating a Sub-Brand is the first step in developing a branding strategy. Marketers may decide to build a whole new brand for the product when developing a branding strategy. At the same time, marketers may choose to integrate the new brand with an existing one. For example, Hershey's Kisses Candy. Kisses Candy is as excellent as a new brand in and of itself, yet it is associated with a well-known brand in Hershey's. Brand Extension is the second step in developing a branding strategy Brand Extension is a technique in which a company exploits an existing brand to introduce a new product. Line extension and Category extension are the two types of brand extensions. The Parent Brand is the existing brand that gives birth to the Line OR Category Extension. A. Extension of the line A parent brand's line extension refers to a new product within the same product category that is covered by the parent brand. A new flavor, color, or even packet size could be the new product in this case. Importantly, the new product must belong to the same product category as the old one. For example, the original Nestle Maggi product has had numerous line extensions. The new additions to the line fit into the same product category as the existing ones and address the same consumer need with minor differences. As of now, this is how the various versions appear in India. B. Extending the Category A Category Extension occurs when the parent brand is leveraged to enter an entirely new product category. Victorinox, for example, is famed for its high-quality Swiss army knives. The company, on the other hand, has used the same brand to enter various categories such as watches, cutlery, fragrances, travel gear, pens, and so on. A Brand Line is a collection of the original product and all versions. The Brand Mix (or Brand Assortment) given by the corporation is a collection of all Brand Lines. The brand mix/brand assortment is important since it allows you to adapt to the needs of various channel partners. Example: Pepsico has a whole line of premium products for the B2B market. Creating a Branding Strategy – A Licensed Product A product for which the brand name has been licensed to other manufacturers. In this case, the brand's owner is compensated for the use of the brand. In turn, the brand owner establishes some minimal quality standards for products sold under his brand name For example : Jeep sells stroller manufacturers a license to create apparel. The product quality should meet their expectations, and the Jeep philosophy of 'Life Without Limits' should be communicated. Licensing revenue became a metric to track for the parent brand in such circumstances. TOPIC 10 : Creating Brand Equity CUSTOMER EQUITY Customer Assets The total discounted lifetime value of all the firm's customers is defined as customer equity. Three Drivers of Customer Equity 1. Value Equity 2. Brand Equity 3. Retention Equity 1. Value Equity - the customer's objective assessment of the firm's services 2. Brand Equity - the customer's subjective impressions of the company and its products. 3. Retention Equity - the customer's assessment of the strength of the customer-firm connection Value Equity Value Equity is a customer's objective evaluation of a brand's usefulness based on perceptions of what is given up in exchange for what is obtained. Drivers of Value Equity Quality : How does the consumer rate the firm's offerings in terms of quality? Price : How appealing is the cost? Convenience : How easy is it to conduct business with the company? Brand Equity Above and beyond the brand's objectively perceived worth, brand equity is the customer's subjective and intangible opinion of the brand. This assessment is influenced by the customer's life experiences and relationships with the brand, as well as the firm's marketing strategy and techniques. The Role of the Brand in Building Customer Equity It raises customer awareness and draws them in. Create emotional bonds with your customers. Customers are reminded to repurchase. Drivers of Brand Equity client awareness of the brand client perceptions of the brand brand ethics in the eyes of the client Retention Equity Retention Equity refers to a customer's proclivity to persist with a brand despite both objective and subjective judgments of the brand. It focuses on the customer-firm relationship and the actions made by both the firm and the client to establish, build, and sustain that relationship. Retention Equity considers questions such as: Is the consumer better off as a result of the company's relationship? Does the company profit from its client relationships? Is there anything the consumer stands to lose if the relationship is ended? Drivers of Retention Equity Loyalty programs (frequent purchase/reward programs) Special recognition and treatment programs Affinity (emotional connection) programs Community programs Knowledge-building programs (learning relationship or structural bonds) Topic 11 : Dealing with Competition COMPETITIVE FORCES Dealing with Competition Fighting back against the competition is a major problem for any company. To analyze the competition, but identifying the competition is an even more important duty. Bases for competition - The customer analysis is based on the following: Based on client consumption and usage of the product. Based on marketing efforts such as promotion, advertising, and so on. Based on the company's accessible resources, such as raw materials, machinery, and so on. Depending on the location. Competitive Forces : Porter’s Five Forces Porter devised a strategy for analyzing a market's competitive situation. His approach examines the five important criteria that can help a company determine how strong the competition is and, as a result, how to develop an effective marketing plan. Porter's Five Forces is a strategy for determining an industry's vulnerabilities and strengths A five-forces analysis is widely used to define corporate strategy by identifying an industry's structure. Porter's model can be used to understand the amount of competition within an industry and improve a company's long-term profitability in any sector of the economy. Understanding Porter’s Five Forces Porter's Five Forces is a business analysis model that explains why different industries may maintain varying degrees of profitability. With certain qualifiers, Porter identified five indisputable forces that shape every market and business in the globe. The five forces are widely used to assess an industry's or market's competitiveness, attractiveness, and profitability. Porter’s five forces are: 1. Competition in the industry 2. Potential of new entrants into the industry 3. Power of suppliers 4. Power of customers 5. Threat of substitute products Competition in the industry The quantity of competitors and their ability to undercut a company is the first of the five factors. The more competitors there are, as well as the amount of similar products and services they offer, the less powerful a company becomes. Potential of new entrants into the industry The force of new entrants into a market has an impact on a company's power. The less time and money it takes a rival to enter a company's market and become a viable competitor, the more vulnerable an established company's position becomes. Power of suppliers The fifth force model's next aspect considers how quickly suppliers may raise input costs. It is influenced by the number of suppliers of a product's or service's essential inputs, how unique these inputs are, and how much switching to another source would cost a corporation. The fewer suppliers in an industry, the more reliant a company is on them. Power of customers One of the five forces is the ability of customers to drive down prices or their level of power. It is influenced by the number of buyers or customers a firm has, the importance of each customer, and the expense of finding new consumers or markets for the company's output. Threat of Substitute The final of the five forces is concerned with substitutes. Alternative goods or services that can be utilized in place of a company's products or services are a danger. The Five Forces approach can help firms increase revenues, but they must constantly analyze and alter their company plan as the five forces change. Understanding Porter's Five Forces and how they apply to a particular industry can help a company change its business plan to make better use of its resources and generate more profits for its shareholders. Strategies for preventing new entries into the market Legal Protection: Patents & Copyrights To prevent enterprises from just imitating your successful activities, obtain legal production for products and procedures through patents and copyrights. Control of Distribution Channels Exclusivity agreements allow companies to control distribution channels. Topic 11 : Dealing with Competition IDENTIFYING COMPETITORS WHAT IS DIRECT COMPETITION? Companies or publications that sell or advertise the same items as your company are referred to be direct competitors. Before making a purchase choice or converting, your clients will frequently evaluate both you and your direct competition. WHAT IS INDIRECT COMPETITION? Indirect competition refers to firms or publishers that do not sell or market the same products as your company, but compete with it digitally. They might write similar material to you and compete for the same keywords. In other words, they are vying for the attention of your clients. Direct vs. Indirect Competition Direct Competition Companies or publications that sell or advertise the same items as your company are your direct competitors. Indirect Competition Indirect rivals are firms or publishers that don't sell or promote the same things as you do, but compete digitally with you. HOW TO IDENTIFY DIRECT COMPETITORS When it comes to identifying direct competitors for your firm, you should start with your product. To identify your direct competition, you must have a solid understanding of your product and the value it gives to your audience or customers. Example: Working for a sneaker company, for example, isn't only about competing with other sneaker companies. You're also up against huge shoe retailers, as well as any other footwear-related brands and businesses A few effective techniques for identifying direct competitors: 1. MARKET RESEARCH Examine the market for your goods and determine which other businesses are selling a product that is similar to yours. Find out which rivals your sales staff encounters frequently during the sales process by speaking with them. 2. SOLICIT CUSTOMER FEEDBACK Your customers, once again, are the key to defeating your immediate competitors. After they've decided on your company and product, you might inquire about the other companies and goods they were considering. 3. CHECK ONLINE COMMUNITIES ON SOCIAL MEDIA OR COMMUNITY FORUMS Your potential consumers will frequently seek advice and recommendations on social media sites and applications, as well as community forums such as Quora and Reddit. Especially true for marketers who are targeting millennials. How to Identify Indirect Competitors Your indirect competitors have just as much influence as your direct competitors on your selling process 1. KEYWORD RESEARCH To conduct keyword research. You can establish which firms or publishers are fighting for space on Google by conducting a competitive SEO analysis. If you're already utilizing an SEO platform or technology, you might find that data and insights from your SEO technology can assist you identify competition. 2. ANALYZING RESULTS PAGE GOOGLE’S SEARCH ENGINE Many of your indirect competitors are writing about themes that are similar to your value proposition. You may uncover keywords that are crucial to your product or offering by looking at the value proposition of your product. Then, using Google, examine who is competing with your material in search engines. 3. TAKE A LOOK AT PAID DATA Does any of those keywords have a lot of competition? Check to see whether businesses or websites advertisements for those keywords if there are any. are buying Websites who pay for sponsored space on the search engine results page for a term are competing for space on Google with your content. THANK YOU!
