Strategic Marketing Problem - Assignment Example

Strategic marketing problem 1. Introduction This paper seeks to respond to the following problem: “Value to a customer includes more than the functional benefit a product or service provides. Brand equity is the added value of the brand name. Can there be brand loyalty to a product to the point that it overcomes the product’s inadequacy? Explain the process of creating a relationship between customer value perception and the brand loyalty.” 2. Analysis and Discussion 2.1 Can there be brand loyalty to a product to the point that it overcomes the product’s inadequacy? Yes, there can be brand loyalty to a product to the point that it overcomes the product’s inadequacy. No product is perfect in the market and the proof is the ever-evolving innovation product that could be found in the market. If products are perfect then there would have been no market segmentation. Marketers segment of the product on the basis of the quality and features of the product in relation to the perceived value of product. Observe a typical buyer of a cell phone. A buyer would not always look at the lowest price. Sometimes a buyer given a budget to buy a cell phone would even go for a branded product although with a higher price. It should be pointed out however not that brand loyalty is only as good as the product life cycle (Net MBA.com, 2007). Since products have their introductory stage, growth stage, maturity stage and death or termination stage it could not be said that brand loyalty is perpetual. To illustrate this, let us the take the case of Xerox Corporation. Although Xerox was associated with copying machine as certain period of time in an industry, there came a point in time where customers’ needs and wants and wants change because of technology. The Canon brand has come to satisfy the changed need and want that Xerox was not able to respond to. If technology changes, customer needs and wants change. This need to have a copy of a document has become more refined with the Information Technology. At present one transmit a volume of date by just having a copies of document scanned and save it a computer file and send to any one needs, provided the connection requirements are satisfied using the Internet. 2.2 Explain the process of creating a relationship between customer value perception and the brand loyalty. The process of creating relationship between customer value perception and the brand loyalty must start with the knowledge of the need that the product satisfied to the customer. From the generic need the marketer must be able to perceive what customer’s value in satisfying the need. For example, a customer wanting to have his transportation needs satisfied. The marketer of an automobile will not only sell a product that would satisfy the transport needs, hence the marketer could add the value of comfort and speed to be part of building up the value needed by the customer. Since competitors come in to the market to match the added feature to satisfy the value that may be demanded by a customer, a creative marketer must provide the product better than competitors. Under the ‘comfort’ category as part of the value, the marketer may package and deliver its product, a car in this case, in a way that could not be matched by competitors. Since the marketer will sell his product under a brand name, he or she must also build on that brand name by having the brand name registered and protected so that competitors could not imitate the production of the same. With that registered brand name, the marketer can now have the so called product positioning, which is, “a technique which helps in easy brand recall due to its approach of occupying separate place in customer’s mind.” (Srivastava, n.d.) .Under the stage of production position, one could use the Unique Selling Proposition (USP) to place the name of the product or service in the minds of the customers. But recent researches have come with the concept of UCP. As to what are the difference between the two, Chatterjee, (2007) explained about the reality or dynamism in field of marketing, which must not be neglected or overlooked by a responsible marketer. The author acknowledged the term “Unique Selling Proposition” (USP) as constantly important factor for companies but also quick to point out about the reality of organizations having open systems of management which connote inevitability of in association with environmental factors. Thus, the author found the need for companies to “focus not only on USP of their products but also on the Unique Customer Perception (UCP) of the final end users.” (Chatterjee, 2007) What could be confirmed with the evolution of the term UCP is the fact that Environmental factors change as earlier posited. The difference between the two is explained by (Srivastava, n.d.) when the author about bridging the gap between USP and UCP. Srivastava, (n.d.) cited the fact in there we many instance that customer familiar and can recall the brand names of the products but the author noted to lack of effect on increase revenues as a result. Having found curiosity in new brands defeating old brands, Srivastava, n.d. conducted a study what could have been wrong with the old brands. The author thus cited the case of Xerox, which is a well-known brand for photocopy but yet the product failed to make a good showing despite its being widely known. Srivastava, (n.d.) blamed the positioning statement, that should have been used by the marketer to develop the early brand recall, but failed to match how the customer perceives. In explaining the difference of the behavior at the time of purchase for these brands, the authors noted the positioning statement having made not fresh for customer to feel excited. Thus, Dr Srivastava found “the need to have bridge positioning statement which could communicate with the customer in their own way through right usage of customer perception mapping.” (Srivastava, n.d.). As to possibility of really bridge positioning as the answer, Srivastava, (n.d.) explained about the possibility of matching the unique selling point with unique customer perception. It is in this context, where the author found the use bridging position when the customer perception matches with the unique selling point. Based on Srivastava’ assessment, marketers could be faulty in assuming constancy of USP. Unique selling proposition therefore could be viewed as that positioning statement that was appropriate when the product or service was introduced and developed at growth stage of the product cycle. As the product or service however reaches or passes the growth stage (Value Based Management.net, 2007) in going to declining stage, the marketers must be persons who must update themselves of the latest in consumer trends and by conducting early marketing research (Marketing Teacher Ltd , 2007) to be first to respond to the market. Since it is the customer’s tastes and preferences that change, the marketers must be updated and knowledgeable about customers’ perception and create a UCP for their product and services accordingly. Thus, the author confirmed that UCP is a culmination of a multitude of information that the consumer receives from various channels where the opinion of the customer is formed as a result of exposure to “advertising, competitor’s claims and advertising, word of mouth, personal likes and dislikes, etc.” (Srivastava, n.d.). It was further posited that UCP is also a result of the ‘product experience’ and that to have customers to associate with a particular product would cause to a development of opinion for the brand (Srivastava, n.d.) that would need the modification of the UCP. Having discussed the concepts of the two, could it be the UCP has become too different because of ever changing needs and wants (Grates, 1993; Streeter, W., 2003) over the years. A creative marketer as found that found in the conclusion of the research on how have bridge positioning, Srivastava, (n.d) prescribed that “a fit between the USP and the UCP is desired for the product to ensure a fair chance of success.” In case there are indeed gaps between the USP and the UCP because of having UCP developed over the years and with some of the cause not within the direct control of the company, Srivastava, (n.d) recommended aligning the USP with the existing UCP. 3. Conclusion Customers may not find the perfect product in the market but need some identification for easy recall of the product they are comfortable with and they can depend upon. Hence, there is basis to say that value to a customer does not only involve the functional benefit a product or service provides but something that confirms a unique customer experience and which the marketer was able to reinforce through advertising. It is therefore in this context that brand name has an added value to the product or service. Under such premised, a positive response could be made to the question of whether there can be brand loyalty to a product to the point that it overcomes the product’s inadequacy. This paper was able to explain the process of creating a relationship between customer value perception and the brand loyalty by starting first with the identification of the customer need and want by satisfying that identified need and want in a way that would bridge the gap between USP and UCP. 4. References: 1. Chatterjee, S. (2007), Unique Customer Perception (UCP), {www document} URL, http://ezinearticles.com/?Unique-Customer-Perception-(UCP)&id=115818), Accessed May 23,2007 2. Grates, G (1993) Competing in the '90S: What Business Wants and Needs from Public Relations Professionals ; Public Relations Quarterly, Vol. 38, 1993 3. Marketing Teacher Ltd ( 2007), Introduction to Marketing Research., {www document} URL http://www.marketingteacher.com/Lessons/lesson_marketing_research.htm, Accessed May 23,2007 4. Net MBA.com (2007) The Product Life Cycle , www document} URL http://www.netmba.com/marketing/product/lifecycle/, Accessed May 23,2007 5. Srivastava, (n.d.) Cover Story: A bridge between brands and buyers. {www document} URL http://www.etstrategicmarketing.com/SM_July_06/CoverStory.htm, Accessed May 23,2007 6. Streeter, W. (2003) , Slip Sliding Away: Customer Cynicism and Banker Detachment Is a Perilous Combination, Says Marketing Consultant Charlene Stern. but There Is Still a Chance for Banks to Connect with Retail Customers, Who Are Looking for Help ; ABA Banking Journal, Vol. 95, 2003 7. Value Based Management.net (2007) Product Life Cycle - Industry Maturity Stages, www document} URL http://www.valuebasedmanagement.net/methods_product_life_cycle.html, Accessed May 23,2007 Read More