Chapter 5

A known devil is better than an unknown angel Awareness refers to the strength of a brand’s presence in the consumer’s mind Consumers instinctively prefer a brand that they have previously seen to one that is new to them Familiar brand has an edge!

Perceived Quality and Value Relationship Marketing

Perceived quality can be defined customer’s perception as the customer’s perception of the overall quality or superiority of a product or service with respect to its intended purpose, relative to alternatives

Perceived quality is an intangible and overall feeling about a brand Perceived quality cannot necessarily be objectively determined because it is a perception Perceived quality could be different for the corner store versus the department store Both are judged by a different set of criteria Perceived quality differs from satisfaction A positive attitude could be generated because a product of inferior quality is very inexpensive

In many contexts, perceived quality provides the pivotal reason to buy Could differentiate and be a principal positioning characteristic of a brand Provides the option of charging a premium price Could be meaningful to channel members and thus aid in gaining distribution

Experiential Marketing Promote the product in a way that connects it with the audience in a unique and interesting manner. Experiences can come in 4 varieties: Entertainment Education Aesthetic Escapist

75% Market Share No benefit of the product Focused on customer it’s not if you get this iPod you will be cool, but rather you are getting this because you are cool

SENSE FEEL THINK ACT RELATE

Focus on individual customers Respond to dialogues: “Consumers talk to us” Customise products and services

Reduces inventory Has a lot of potential with e-commerce Potential with service organisations

Focus on the augmented product Premarketing efforts are necessary but not sufficient conditions for brand success. Marketers may need to use other means to enhance consumption experiences. After-sales service Sale of complementary products Loyalty/Frequency programs

Consumer Price Perceptions Setting Prices to build brand equity

Price cuts will effect different brands differently High quality brands can easily “steal” market share from low quality brands by cutting price At the same time, it may not always hold true But lower quality brands will not steal share from a high quality brands by cutting price

Channel Design Indirect Channels Retailers Tiered Marketing Cooperative Advertising Direct Channels Company Owned Stores They can act as advertisements and tourist attractions Create own shops in major department stores Web Strategies Bolsters other marketing efforts Makes brand more engaging