L5: Customer value through brands, relations and innovation Flashcards
Brands and branding
Branding:
- firms effort to distinguish their own from competitors offerings
- brand creates an identity through
a) the name
b) the sign
c) the logo and slogan
-> affects customer evaluation
Brand types
• Manufacturer
- Manufacturer brand
- fighter brands (low-price alternative)
• Distributor
- own-label
- private labels/ brands
Challenge:
- differentiate their manufacturer brand from it
Importance of strong brands
- financial performance of owning company
- protection against competition
- build trust
Brand equity
• brand strength to generate profits
Two types:
- Customer-based
- Brand awareness
- Brand associations - Proprietary-based
- Patents
- channel relationships
Brand building
Core product + focus on…
- Quality&Design
- Packaging
- Delivery
- Brand name&Image
- Sevice
- Guarantees
Rebranding
• Rebranding = changing the brand name
- wish to create a new image
- chnage in corporate strategy
- harmonize brand across different markets
Brand extension
• Brand extension = existing brand name used for new product in same product category and/or market.
Brand stretching
• Brand stretching = existing brand name used for new product in unrelated product category and/or marke
Co-branding
• Branding between two different brands (e.g. Jim Bean Cola)
Value creation through relationships
- interactions between buyer and seller
- customers-owned resources
- brand commitment
DAMIEN
AWESOME
Key concepts of relationship marketing
• Idea:
- entice people to become long-term customers
• core service
- What are you offering?
• relationship quality
- service quality
- trust
- commitment
- satisfaction
How to build relationships (in the supply chain)?
- expertise
- technical support
- Resource support
- service level
- risk reduction
Benefits for suppliers & customers (selection)
• Suppliers:
- more purchases
- less costs
- word-of-mouth
• Customers:
- reduced negative effects
- status
Developing customer retention strategies
- bonding
- internal marketing
- building trust
- service recovery
- promise fulfillment
Technology-enhanced (CRM) and touch points
• Customer relationship management (CRM) is intensively used by firms (e.g., call centers, data analytics, etc.)
• some CRM tools can also be touchpoints
- social media
- support hotline
Innovation
Process of translating an idea into a product or service
Innovative culture: How to get one?
- tolerate failure
- be accessible
- “do as you say”
- rewards success
How to organize for success?
• project teams • product and brand managers • new product departments/functions • teamwork Innovative leadership
