MARKETING AND SALES
Masters
Relationship Marketing
 New customers Vs. Old customers
 Selling customers today
creating customers for
tomorrow.
 RM= Customers Loyalty
 Continuous attention
2-2
Whole Brain 4 Thinking Structures
A
D
© Herrmann International Group™ 2000-2003
CEREBRAL
Whole Brain Model
LEFT
B
RIGHT
LIMBIC
C
3
Success stories
prices
promotions
© 1987-2001 The Ned Herrmann Group
4
What if it doesn’t
work?
© 1987-2001 The Ned Herrmann Group
5
You are not a number!
© 1987-2001 The Ned Herrmann Group
6
Visualisation
© 1987-2001 The Ned Herrmann Group
7
Relationship Marketing and
the Sales Force
 Four basic questions used as guidelines in
defining the role of the sales force:
1.
2.
3.
4.
How much selling effort is necessary to gain and hold customers?
Is the sales force the best marketing tool?
What type of sales activity will be necessary?
Can the firm gain strength relative to its competition with its sales force?
2-8
Brand Value
 Three elements of Brand Value
 Functional Values
 Expressive Values
 Central Values
Interbrand; The World’s Greatest
Brands.
Brand Value Corresponding to Brand
Hierarchy Pyramid
Central
Expressive
Functional
Brand Value
 Functional Values:
 Govern product performance
 Coke refreshes its drinker
 Volvo gives its driver a safe ride
 IBM PC provides quick computing
 Don’t differentiate products
 Pepsi refreshes
 Mercedes is as safe as Volvo
 Apple is as quick as IBM
 Brand Owner’s “bright ideas” can be instantly copied in
every continent
Interbrand; The World’s Greatest
Brands.
Brand Value
 Expressive Values:
 Say less about the product & more about the consumer
 Reflect and enhance the consumer’s sense of
him/herself
 Provide a key source of brand differentiation



Marlboro’s - masculine values
Armani’s - status and fashionable values
Apple - creative and human values
Interbrand; The World’s Greatest
Brands.
Brand Value
 Central Values:
 Most Enduring
 Right to the Core of the Consumer’s Belief System
 At their purest = embodied in religious, national or
political persuasions
 Comparable power = embody mass movements or
cultural trends


1960’s Coke “I Like to teach the world to sing”
Today= Nike “Just Do It”,
Interbrand; The World’s Greatest
Brands.
Brand Value Corresponding to Brand
Hierarchy Pyramid
Central
Very meaningful in
differentiating our Brand
but very difficult to deliver
consistently to our
consumers
Expressive
Functional
Easy to deliver and explain
to consumers but also easy
to imitate
Interbrand; The World’s Greatest
Brands.
Brand Value Corresponding to Brand
Hierarchy Pyramid
Central
Beliefs
& Core
Values
Expressive
Benefits
Functional
Features &
Attributes
Very meaningful in
differentiating our Brand
but very difficult to deliver
consistently to our
consumers
Easy to deliver and explain
to consumers but also easy
to imitate
Hierarchy : Timothy D. Ennis, Ennis Associates,
Inc
Brand Value:
Brand Hierarchy Pyramid
The emotional beliefs and
values that consumers feel
are being addressed by our
brand (CENTRAL)
The functional and
emotional benefits that our
product/services provides
to the consumer
(EXPRESSIVE)
Product/Service features
and/or attributes that must
be addressed
(FUNCTIONAL)
Beliefs
& Core
Values
Very meaningful in
differentiating our Brand
but very difficult to deliver
consistently to our
consumers
Benefits
Features &
Attributes
Easy to deliver and explain
to consumers but also easy
to imitate
Mc Cormick
Brand Value:
Brand Hierarchy Pyramid
Mc Cormick: The Taste You Trust
CENTRAL VALUE
Beliefs and Core Values
EXPRESSIVE
Benefits
I take
pleasure in
how the
family enjoys
the meals I
prepare
Brand I Trust / Taste You Trust
Part of making food my way
Makes a meal/dish an eating pleasure
Makes prepared meals taste better
Brings out the best in foods
FUNCTIONAL
Features & Attributes
Let me adjust to make it my own * Can be used with any
dish * Adds flavor, Spicy * For everyday use * Has a lot of
products I use * Easy to find when shopping *
Largest variety of spices, extracts, dry seasonings, and
mixes
Brand Hierarchy Pyramid vs Product Level
Potential Product
Augmented Product
Beliefs
& Core
Values
Very meaningful in
differentiating our Brand
but very difficult to deliver
consistently to our
consumers
Expected Product
Benefits
Generic Product
Features &
Attributes
CORE BENEFIT
Easy to deliver and explain
to consumers but also easy
to imitate
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.
Timothy D. Ennis, Ennis Associates, Inc
Brand Equity
 Brand Ingredients:
 Brand Name & heritage
 Packaging (structure & graphics) & signage
 Brand symbols, properties and logos
 Perceived quality, reliability & convenience
 Defined level of satisfaction
 Meaningful price/value relationship
 Purchase & usage experiences
 Consumer perceptions, attitude & behaviors
 Emotional associations with the product/services
Timothy D. Ennis, Ennis Associates, Inc
Brand Equity
Physical
Product
Attributes
Quality
Uses
Kevin Clancy, Copernicus
modified by Soni Simpson
Brand Equity
Physical
Product
Attributes
Quality
Uses
Kevin Clancy, Copernicus
modified by Soni Simpson
Brand Equity
BRAND GESTALT(structure)
Brand
Personality
Visual
Appearance
Country of
Origin
User
Imagery
Physical
Product
Attributes
Quality
Uses
Tangible
Benefits
Logo
Brand
Customer
Relationshi
p
Emotional
Benefits
Kevin Clancy, Copernicus
modified by Soni Simpson
Indicators of an underemphasis
on Brand Building
 Can’t identify brand associations
 Brand awareness is lacking
 No valid measure of customer satisfaction
 No person in the firm who’s job is to take care of
brand equity
 Evaluation of the impact of marketing on Brands
 Long term strategy
 Managers are short term thinkers (sales
promotions)
Categories of Assets
 Brand name awareness
 Brand loyalty
 Perceived Quality
 Brand Associations
 Other Proprietary Brand Assets (e.g., channel
relationships, patents,…)
Brand Equity Increases Value
Brand Loyalty
Brand Awareness
Value to Customer
Perceived Quality
Brand
Equity
Value to Firm
Brand Associations
Other Brand Assets
Brand Name Awareness
 Anchor to which other associations can be attached
 Familiarity-liking (I trust what I know)
 Signal of substance/commitment
 Brands to be considered (what’s your rank?)
Brand Loyalty
 Reduced marketing costs (repeat purchase)
 Trade leverage (expect the brand to be available)
 Attracting new customers (expensive)
 Create awareness
 Reassurance
 Time to respond to competitive threats
Perceived Quality
 Reason-to-buy
 Differentiate/Position
 Price (can support a premium)
 Basis for brand extension
Brand Associations
 Fun, entertaining, VIP….
 Help process/retrieve information
 Reason-to-buy
 Create positive attitude/feelings
 Extensions
Brand Equity and Brand Value
 Brand Equity provides value to customers:
 Interpretation/processing of information
 Confidence in the purchase decision
 Use satisfaction
Brand Equity and Brand Value
 Brand Equity provides value to firm:
 Efficiency and effectiveness of marketing programs
 Brand loyalty
 Prices/margins
 Brand extensions
 Trade leverage (power over distribution channel)
 Competitive advantage
Brand Value Breakdown
$US Billions
120
100
80
INTANGIBLE &
Goodwill
Net TANGIBLE Assets
60
40
20
0
CocaCola
J&J
P&G
Unileve Amazon
r
Discussion
 How has Ivory built each of the dimensions/assets
of brand equity?
 How does Ivory create value?
Brand Equity
 The Ivory story
 It Floats, is pure, and mild
 Swan from Lever Brothers
 Value adding
 Long term view of brands
 20% owned by employees
Brand Building Inhibitors
 Pressure to compete on price
 Proliferation of competitors
 Fragmenting markets and media
 Complex brand strategies and relationships
 Bias toward changing strategies
 Bias against innovation
 Pressure to invest elsewhere
 Short-term pressures
Revitalizing the Brand
Marketing should focus on
market creation, not on market
sharing
Revitalizing the brand
 Increase usage
 Finding new uses
 Entering new markets
 Repositioning the brand
 Augmenting the product
1. Increasing Usage
 Questions to ask?
 Less threatening to competitors
 Two ways:
 Frequency of use
 Reminder communication, make the use easier, provide
incentives,use on different occasions,use at different locations.
 Quantity used
 Large containers, positive associations: can’t just eat one.
The Frequency of use
 Positioning:



Milk, more than two cups a day
Brush after every meal
Phoning a relative once a week
 make the use easier:


Packages
Why they don’t use it more often?
 use at different occasions or locations

Ask when and where? Can new times or places be introduced.
Juices and breakfast. Wet tunes.
The quantity used
 Increase coverage – insurance business
 Tie and accessories when you buy a shirt
 low calorie salad dressing.
2. Finding new uses
 Baking soda
 Knnor
 Lipton soup
 R&D
3. Entering new market
 Sometimes need product modification
 Women/ kids/ seniors
 J&J baby shampoo
 Segmentation
 Growth segments within declining industry: light
beer/nonalcoholic
 Segments not served well: women
4. Repositioning
 Change associations



Tastes and fashion change
Need for new associations
Campbell Soup: Lunch supplement– ‘Mm good’ to ‘soup is good
food’. Kids eating lunch at home is history
 Add value by differentiating


The Perdue chickens story
Tender chicken having a soft life in $60,000 homes,getting eight
hours sleep, avoiding junk food, and drinking pure well water.
Augmenting the product/service
 Differentiating element is fading away. The choice
is based on price.
 Improving the package: new look, screw cap juice.
 What are the problems that are really irritating to
the customer? Is there any way that added services
can deal with them? In what way the customer is
dissatisfied? What can be done?
 think about the whole system.
 Customer involvement
The End Game:
An other alternative to brand
revitalizing
What makes a brand prosper?
 Brand Equity
 Intensity and commitment of the competition
 Market demand
What will happen if one of
these is unfavorable?
Are you going to Milk the brand
or kill it?
The Milking options
 Avoiding investment in the brand as an attempt to
generate additional cash flow from it.
 Sales decline is in an orderly way.
 We accept a decline in sales and profits and the risk of
going down.
The strategy
 Hold: enough investment to hold the current
position
 Fast milking: sharp reduction in operating
expenditure
 Employee moral?
 Brand Manager motivation
 Competitors may attack vigorously

secret strategy
 What if the decision was based on wrong research
The Divestment option
 Decline rate is rapid and accelerating
 Extreme price pressures
 Brand position is weak: a competitor achieved
irreversible advantage
 The firm mission changes
 Exit barriers can be overcome : long term contract with
suppliers.
Exit Problems
 Managerial pride
 Emotional attachment: family…
Practical exercise
 Form pairs of two and think of a brand you think
needs revitalizing. What would you do to revitalize it?





Increase usage
Finding new uses
Entering new markets
Repositioning
Augmenting the product
Making Interactivity
Purposeful
Brand Contacts
 Be exposed to a brand message
 Two kinds: Created and Intrinsic
 Created: Adv. Promotions. PR releases
 Intrinsic: the contacts customers do in order to use a
service or get a product. Flying experience.
 Intrinsic contact points need to be fully
leveraged, maximizing not only the ability to
supply information, but also their ability to
listen to and gather information from
customers.
How to Manage Brand Contacts
 Identify them
 Prioritize
 Which one captures feedback
 Determine the cost of controlling messages and
gathering information for each contact point
 Which one can be used to carry additional brand
messages and facilitate purposeful dialogue.
What NOT to do
Do not use brand
contact points to
bombard customers
with more brand
messages.
The 5 Rs
1.
2.
3.
Recourse: What if my computer doesn’t work?
Recognition: customers like to be personally
recognized. ‘call them by their names’. Database
management!
Responsiveness: 1 800 is just the first step. Stay with
customers until the matter is solved.
The 5 Rs
4.
Respect: non relevant telemarketing offers.
Customers are willing to give you a half day on their
schedule but not a minute on yours. Citibank directmail ( with a gift: tax guide): the purpose was to
motivate customers to schedule a personal
interview.
The 5 Rs
5.
Reinforcement: Adv. For those who already
purchased the product . It is better to include a
feedback device.
“I don’t know who you are.
I don’t know your company.
I don’t know your company’s products.
I don’t know what your company stands for.
I don’t know your company’s customers.
I don’t know your company’s reputation.
Now - What was it you wanted to sell me?”
McGraw-Hill Magazine Ad
What will a strong Brand
do for you?
“I know who you are.
I know your organization.
I know your organization’s services.
I know what your organization stands for.
I know your organization’s customers/clients.
I know your organization’s reputation.
Now - Here is what I want...”