Brand, Channel & CRM Strategy Pertemuan 23 & 24 Mata kuliah: 00274 - Integrated Marketing Communication (IMC) Tahun : 2009/2010

Brand, Channel & CRM Strategy Pertemuan 23 & 24

Mata kuliah : 00274 - Integrated Marketing Communication (IMC)

Tahun : 2009/2010

Bina Nusantara University 3

Brand, Channel and CRM Strategy

Everybody recognizes the value of a strong brand.But few companies manage their brand value as well as they should, and even fewer think of their brand as having much, if anything to do with their creation and management of customer relationship (CRM).It is becoming increasingly clear, that CRM is indispensable in creating a successful brand, one that can bring tangible benefits to the company and its stakeholders.


More Than a Name A brand is far more than a name, icon or

slogan. It encapsulates all the customer’s

interactions with the company, its products, and its services.

It is quite evident that customer’s broad conceptions about a company go a long way in determining how they receive and embrace that company’s brand.


The Three Characteristics of All Strong Brands

They offer something better and different on a dimension that customers care about; in other words, the promise they make is differentiated from the competition’s.

This promise is executed very consistently.

The brand promise is communicated consistently and persistently.


The Consequences of the Three Characteristics of All Strong

Brands Brand must be top-of-mind. Advertising is the key to successful

brand building. Brand must be consumer-driven Marketing owns the customer


Brand Must Be Top-of-Mind Probably no other assumption has cost as much money as notion that to be successful, a brand must be

top-of-mind. Given that brand is experience, it has to show more than top-of-mind awareness to be successful. It has to be relevant to a target market willing to pay the price. It has to attract people to try it out at least once and then must be available for reuse or repeat purchase

because it did bring such a good experience. In short, the brand has to build a base of loyal customers, emotionally and financially committed to repeat purchasing.


Advertising is The Key to Successful Brand Building

Managers who hold firmly to the belief that top-of-mind awareness is the essence of brand will readily accept this proposition, again largely to their detriment. Thanks to good advertising, a handful of companies have built strong brands. Advertising is just one element of the brand experience – and a very small one at that. It is just one of many tools that innovative and broad

thinking companies use to build their brands.Advertising is doubtlessly important, but it is only part of the company’s overall effort in playing the brand value game.


Brand Must Be Consumer-Driven (1)

The importance of listening to the consumer becoming something of marketer’s “mantra”. Although that advice may work in some industries or with some products, the fact is that more and more consumer decisions are being made by channel customers or partners rather than by consumer themselves. As the marketing world grow more complex, the

relationships between manufacturers and their channel partners have in many ways eclipsed (hide) the relationship between manufacturers and consumers.


Brand Must Be Consumer-Driven (2)

In other words today’s brand experiences (from the consumer’s point of view) encompass (include) myriad (countless) B2B relationships further back on the production and distribution side. Those B2B relationships are thus critical in building and sustaining brand value in the B2C arena. Ignoring or downplaying those B2B relationships can jeopardize even the best-laid plans and strategies devised by marketers.


Marketing Owns the Customer (1)

This used to be the rule when marketers were the only ones talking to customers through traditional

advertising channels. Now is no longer the case. All too often the marketing message hardly gets through to the customer. Instead, it’s the customer service representative who owns the customer, and often the ownership

amounts to something closer to taking the customer prisoner.


Marketing Owns the Customer (2) Most B2B companies, however, say they recognize the importance of maintaining a high-quality relationship with long-term customers. Building and enhancing those relationship, has become the province of the sales force and the customer care representatives, not the marketers. Moreover, they recognize that CRM technology helps make people more efficient and effective at enhancing the customer’s overall experience with the brand.


Strong Brands Pay Real Dividends Ultimately, the primary reason to care about strong branding is that it increases shareholder returns. Brand competition within a category provides supporting evidence as well. Although PepsiCo and Coca-Cola had almost equal sales in 2000, Coca-Cola – with its greater global brand strength – enjoyed a market capitalization almost twice that of PepsiCo in the same year. A strong brand not only increases a company’s revenue, it is also contributes to greater capital efficiency.


Increased Revenues (1) It’s a fact that companies with strong brands typically command higher prices. Although Toyota and GM use the same California

assembly line to make identical vehicles – the Corolla and the Prism, respectively – Toyota

can charge more for the Corolla. Likewise, Sony leads its competitors in the electronic business, not only because consumers want Sony product, but also because they are more willing to pay premium prices for those products.


Increased Revenues (2) Even with commodities, where one might expect less pricing differential, the power of a good brand – that is, the sum of all the customer’s experiences with the brand – can be seen in the bottom-line results. Higher prices are not the only factor in increased

revenues. Customers typically purchase strong brands more

frequently and in greater quantities.


Increased Revenues (3) Although the raw numbers vary by industry – obviously customers buy soap products more frequently than they purchase automobiles – the pattern does not vary from industry to industry: Strong brands benefit from both the quality and quantity of transactions with customers. It may be blindingly obvious, but Coca-Cola is so far ahead of PepsiCo because more consumers drink Coca-Cola more frequently. Companies with strong brands also can attract better partners and co brands.


Increased Revenues (4) Similarly, companies with strong brands attract better employees, capable of generating more and better ideas with potentially higher revenues. Finally, it is also evident that companies with strong brands can more easily reach beyond their traditional market sectors and can be successful at undertaking new ventures. Since most strong brands have an elasticity that allows them to credibly relay information about new product or service – customers are more willing to try those products and even more important, forgive mistakes.


Greater Capital Efficiency As we have seen, strong brands have greater success at generating demand than do their weaker counterparts. Given that its customer base is more loyal and more committed, a strong brand can elicit a response with practically any marketing stimulus. When it comes to trying a new product, customer usually opt for the brand they know and trust. So, the larger the brand, the more it can spread out its marketing costs


5 level of customer attitude toward his or her brand (Aaker, 2000)

Customer will change the brands, specially for price reason. No brand loyalty

Customer is satisfied. No reason to change the brand

Customer is satisfied and would incur cost by changing brand

Customer value the brand and sees it as a friend

Customer is devoted to the brand


Brand Equity (1)

Brand awareness is a fairly high degree Brand acceptability is beyond high degree Brand preference is enjoy high degree Brand loyalty is command high degree Brand equity is highly related to how many customers are in classes 3, 4, or 5 (Aaker)


Brand equity (2)

Is also related, according to Aaker, to the degree of brand-name recognition,

perceived brand quality, strong mental, and emotional association, and other assets such as patent, trademarks, and channel relationships.


THANK YOU!

THE WINNER WILL NOT QUIT… BUT, THE QUITER WILL NOT WIN……!

Documents

Brand, Channel & CRM Strategy Pertemuan 23 & 24 Mata kuliah: 00274 - Integrated Marketing Communication (IMC) Tahun : 2009/2010