Creating Brand Equity - Book Report/Review Example

Creating Brand Equity This chapter addresses the following questions: 1. Explain the importance of branding and brand equity. 2. How do companies build brand equity? 3. How can brand equity be measured and managed? 4. How do firms’ device a branding strategy? 5. How can brand equity be related to customer equity? Summary of Chapter: This chapter as the name suggests deals with the importance of creating Brand Equity for companies and the effects of brand on the success of a business. The chapter starts with some essentials of the role of brands and also a very essential element i.e. the scope of branding. The author moves on further to define the brand equity of a company and also highlights the meaning of customer – based brand equity. One of the best examples that the author has mentioned in the chapter is the example of Apple computers and Coca Cola. These forms to be the ideal customer based branding styles and have created a strong brand image for themselves leaving them to be the most memorable brand. The author moves on to discuss the brand equity as a bridge and the brand equity models. The author has explained in detail the brand equity model and has also includes the steps like brand Asset valuator, brand resonance models, aaker model and many more aspects of brands. The author has also moved on to discuss the details of building brand equity, where the author discusses choosing of the brand elements. The author has also dealt with an important element of designing the holistic marketing activities and measuring the secondary associates. The chapter furthermore moves on to discuss how companies can measure the brand equity and also brand valuation. The author has provided a list of world’s top them most valuable brands which includes Coca Cola which stand on the top of the list followed by Microsoft, IBM, GE, Intel, Nokia, Toyota, Disney, Mc Donald’s, and Mercedes Benz. The chapter moves on to discuss the managing of brand equity. The author goes on to discuss the cases of Harley Davidson and further moves on to dealing with the branding decisions and devising the branding strategies. The chapter moves on to also discuss the details of the brand portfolios like Aramani where the chapter details factors like the various types of the portfolios like flankers, cash cows, low – end entry level and high – end prestige. The chapter is concluded with a discussion of building the customer equity and the various factors that affect the building of the customer equity. The overall chapter has provided a very clear and strong views of brand building and maintenance activities along with a strong focus on the how the customers react to the brands. Chapter 12: Setting Product Strategy This chapter addresses the following questions: 1. What are product characteristics and how are they classified? 2. Explain product and service differentiation. 3. How to manage an effective product line and build brand relationships? 4. How can companies effectively utilize packaging, labeling, warranties and guaranties for marketing and brand building purposes? Summary of Chapter: The products of any company form the heart of the company. This chapter has been designed to provide the readers with an understanding of how products play the key role for the success of any company. The author has rightly mentioned in the chapter that the start of marketing planning is by firstly designing the product that will be provided to the customers. To do so, it is essential to firstly understand the product characteristics and classifications. This is simply because the customers judge the products based on three main aspects, i.e. the features and its quality, services and its quality and last but not the least the prices. The author firstly deals with the product levels and the classifications. This helps understand a few of the features like durability and tangibility, consumer goods, and industrial goods. The author then moves on to another very essential element for success of any business, i.e. Differentiation. This is classified into three main heads, i.e. product differentiation, services differentiations and designs. Furthermore the chapter also deals with the relationship of products and brands. Here the author has used a number of different heads to explain how the relationship can be better understood. These include, the product hierarchy, product systems and mixes, product line analysis, product line length, product mix pricing, and co – branding and ingredient branding. The author has provided a smooth flow of information and allows understanding each of the headings one at a time. The chapter moves on to discuss details of live companies like Toyota and Mercedes – Benz. There has also been a focus on how companies use design as a form of setting product strategy with companies like Hidesign. The chapter further discusses important aspects like packaging, labeling, warranties and guarantees. These are also some of the factors that affect the customers’ choice to a great extent. The author rightly mentions that packaging can be considered as the fifth P apart from product, place, price and promotion. The chapter focuses a great deal on packaging and this highlights the importance of the topic in marketing to a great extent. Packaging has been recognized as a form of brand recognition and is one of the major elements that customers choose a product. It has been discussed that a customer will choose a product which is provides self service, consumer affluence, company and brand image, and is innovative. In short this chapter has been focused on providing the readers with an understanding of products and packaging. Also the main aim of this chapter has been to understand the importance of the two and how these can affect the growth of a company to a great extent. The factors that differentiate the market leaders from others are that the products are of high quality and the packaging is relatively innovative and self describing. It would be safe to say that packaging to a great extent plays the face of the product and this is clear from the discussion provided by the author. Chapter 14: Developing Pricing Strategies and Programs This chapter addresses the following questions: 1. Explain the context of pricing and the consumer attitudes towards pricing. 2. How do companies deal with setting the prices? 3. How do companies utilize adapting the prices as a competitive advantage? 4. How do companies initiate and respond to price changes? Summary of Chapter: One of the major elements of the marketing mix forms the basis of this chapter. Price of a product plays a very important role in any business and is an underlying factor for the success of any business. The author starts the chapter with the basics of understanding prices and here they discuss the changing pricing environment and how the Internet has become a major changing factor for the pricing of products. The author also discusses that the buyers and sellers have an option to choose from over the Internet and hence they can be the price deciders to a great extent. Furthermore the chapter goes on to discuss how companies price their products and services and also how the pricing is influenced by the consumer psychology. The author also goes on to discuss how companies set the prices and the strategy used by companies to do so. The chapter highlights a step by step process of the price setting process. It is important to firstly, select the pricing objectives, and then determine the demand, further which the estimation of the costs need to be made. Also the companies need to go on to analyze the competitor’s prices, costs and various offers as well. The next step of the price setting is choosing the pricing method, which is a very important aspect of the entire process and the company has a number of methods to choose from like the value pricing, mark up pricing, going rate pricing and auction type pricing. Based on all of the above mentioned steps the company can make an informed decision and set the final prices. The other aspects of price that the Author has included into this chapter include the adapting of companies to the price, which include the promotional pricing and the differentiated pricing. The chapter provides real life company examples like Armani and Toyota and also shows how the companies use the various concepts discussed to develop the price setting strategies. The chapter ends with a focus on initiating and responding of companies to changes in the prices. Here the author has discussed some important elements of price and the changes in price like initiating the price cuts, initiating the price increase, and also responding to the competitor’s price changes. A very good point that the author has made in the chapter is that the price of a product is very important and is a strong element which decides the success or failure of the company. Also the author states that market leaders when attacked by smaller companies with lower prices can easily overcome the competition by the differentiation factor and also can create more competition for the company by introducing its own low cost goods. Chapter 16: Managing Retailing, Wholesaling and Logistics This chapter addresses the following questions: 1. What are the different types of retailers and what are the marketing decisions to be taken by them? 2. What is a private label brand and what threats do they pose? 3. Explain wholesaling and the various trends in wholesaling. 4. Explain the importance of market logistics and the various decisions associated with it. Summary of Chapter: This chapter deals with the intermediaries like retailers, wholesalers and logistical organizations. The author starts the chapter detailing the fundamentals of retailing. They discuss the types of retailers and the new environment of retailing as well. There has been a clear and concise explanation of the retail developments over the years. The author has also discussed the marketing decisions that need to be made while choosing the intermediaries and this is mainly based on the target markets and the product differentiation that the company adopts. Also other factors that affect the company’s choice are the procurement strategy, prices, services, store atmosphere, store activities and experiences, location decisions, and the communications of the company as well. The author moves on to also discuss the private labels which mainly refers to the distributors brands. Also the role of the private labels is also discussed in brief in this chapter. The author has also discussed the threats that are caused by the private labels. The chapter then moves on to discuss wholesaling where the author discusses the types of wholesale along with the recent trends that have been present in the sector. Furthermore the chapter deals with the market logistics and a detailed discussion of the market logistics systems, objectives and the decisions is also included. Some example that the author has provided are of New York Times, and Wal Mart. The author has used this chapter to provide the readers with a clear understanding based on the examples of the various companies that have adopted the different methods. The author has however described in detail the market logistics decision which is one of the major decisions that need to be made. The author has divided this into four main heads and explains these in simple terms of the a) how the orders need to be processed, b) where the stock needs to be located, c) how much stock does the company need to keep and finally, d) what is the mode of transportation. Here the chapter also deals with the Pepsi example and provides for a better understanding of the topic. The chapter also deals in detail with a number of different examples of real life companies and has also dealt with some major market logistics objectives like the systems that need to be used to minimize the costs and increase the overall profitability of the company. To do so the chapter also deals with a formula this will help the companies to gain most by choosing the minimum costing logistic. The overall chapter is quite informational as it allows the readers to gain complete understanding of the various factors that need to be considered and the various elements that could cause the company to be affected financially. Also the chapter allows the individuals to gain a complete knowledge and make informed decisions for the type of intermediately that would be best for the company. Also it help analyze the factors that would create the companies to be most successful. Chapter 18: Managing Mass Communications: Advertising, Sales, Promotions, Events and Experiences and Public Relations This chapter addresses the following questions: 1. What are various ways companies can develop and manage advertisement programs? 2. What are the various sales promotions tools and how do companies utilize them? 3. What are the objectives of companies organizing events and does this help in brand building? 4. What are the advantages of market public relations? Summary of Chapter: This chapter as the name suggests deals with managing mass communications, advertising, sales and promotion activities. Also factors of the public relations have also been discussed in this chapter and this provides a detailed discussion of the above mentioned topic. The chapter starts with the developing and managing of advertising programs where the author has detailed the steps which include the setting of the objectives, deciding of the advertising budget and developing of the advertising campaign. There are a number of factors that need to be considered while dealing with the advertising budget which include the stage of the product life cycle, the market share and customer base, the competition and the clutter, advertising frequency and the product substitutability. These form the major factors of the budget planning. The author has also explained the major types of advertisements that are available for the companies to choose from and these include the television ads, the print ads, radio ads and film ads. The author then moves on to a more essential aspect of advertisements where he discussed the different media and the effectiveness of the different mediums. Here the author has emphasized on the need to decide the reach, frequency and impact of the ads. These play a very important role in deciding the media. The chapter also details the advantages and the disadvantages of the various mediums. The chapter then moves on to detail the choosing the major media types and explaining the major variables that are involved. The chapter further moves on to discussing the alternative advertising options and this includes details of the place advertisements i.e. the billboards, public spaces where the advertisements can be made. Also the steps of the product placement, point of purchase, and evaluating the alternative media are also discussed. The chapter further goes on to discuss the timing and allocation of the media and also moves on to deal with the evaluations of the advertisement effectiveness. The author has also moved onto deal with the sales promotions, where the author has touched upon some major elements like the advertising versus promotions and the major decisions have also been discussed. Furthermore the chapter deals with the events and experiences and the author has included discussions explaining the major events objectives, the major sponsorship decisions and also experience creations as well. This has best been understood with the example of the American express cards and the U.S open Tennis as well. This allows the readers to gain complete understanding of the events and experiences that the company need to take into account for the possibilities of communication and marketing. The author concludes the chapter with another very important element, i.e. Public relations. Thee author has detailed the fundamentals of public relations in a short and concise manner and also includes the five major functions of public relations. The chapter is closed off with the marketing public relations and the major decisions that need to be taken in the marketing public relations. Chapter 19: Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling This chapter addresses the following questions: 1. How do companies engage in direct Marketing and what are the different methods? 2. What role does interactive marketing play in improving relationship? 3. How to design an effective and efficient sales force? 4. How to motivate and improve the effectiveness of sales people? Summary of Chapter: This chapter starts with the discussion about the need for direct marketing, following which it covers the different direct marketing tools and strategies applied by marketers today, to have a greater part of the market share in this competitive environment. The different techniques of database marketing are discussed in detail, followed by the direct marketing techniques. The author has detailed the meaning of direct marketing and discusses the benefits of direct marketing. The chapter includes a number of cases of companies that use direct marketing. The chapter also includes more information of direct mail. The author explains direct mailing can also help in relationship building wherein the customer feels connected to the company when he/she receives birthday wishes and occasional wishes on festivals and other events. Prompt and friendly responses to customers’ complaints also help in building the relationship. This helps the marketer to better connect with the customer. Major examples of companies like AXE have been provided in this chapter to gain better understanding of the topic. Furthermore the chapter deals with catalog marketing and telemarketing. The author also details other direct response marketing where they provide the readers with information of the various telemarketing as well. The author has also included some essential elements like the public and ethical issues in direct marketing. The chapter further details other forms of marketing which includes Interactive marketing, the chapter includes the various forms of promotions that can be made online and include discussions regarding websites, micro sites, search ads, display ads, interstitials, Internet specific ads and videos, sponsorships, alliances, online communities, emails and mobile marketing. Other forms of marketing have also been included like word of mouth like buzz and viral marketing, opinions leaders and blogs. The chapter also provides details of the example of Pepsi which allow for an in depth understanding of discussion. The author has also included the modes of measuring the effects of word of mouth. The chapter further includes the designing of sales force which include sales force structure and also sales force size and compensations. Following which the chapter includes managing the sales forces which includes from the recruitment, training, productivity and also modes of motivating the sales representatives in the teams. The chapter finally discusses the principles of personal selling. The author has includes a six steps process for effective selling. These include prospecting and qualifying, pre approach, presentation and demonstration, overcoming objections, closing and follow up and maintenance. The author finally also deals with one of the most recent and growing form of marketing, i.e. relationship marketing. Relationship marketing refers to an integrated effort made for identification, maintenance and building up of a network with individual customers and continuously strengthen this network for mutual benefit of both sides through interactive, personalized and value added contacts. The overall chapter provides a good understanding of the various forms of marketing and how each of these can prove to be beneficial for the companies across the world. Also the chapter takes into account the rights and ethics of the customers as well and considers all the possible negative impact that the marketing techniques might have on the customers as well. Read More