SU 4: Designing Marketing Programmes to Build Brand Equity/

Question 1

*What are the factors to consider when designing marketing programs to build brand equity

Answer 1

Personalisation - consumers want personalised communication that are tailored to their needs and wants

Integration - involves making use of several marketing activities to maximise the effects of the campaign/brand.

A brand can make use of a television advertisement as well as Instagram and Facebook is part of a campaign. This way the brands communication is seen on different channels giving them more exposure and awareness

Internalisation - it is vital for any brand that their employees understand the brand and its values and are inspired by the brand themselves. Internalisation refers to the internal marketing activities of the brand.

For example, having teambuilding events and workshops. (When FNB rebranded and changed their logo they first unveiled the new branding to their employees).

Question 2

*The marketing strategies that businesses can incorporate to personalise their marketing programs

Answer 2

• experiential marketing: also known as engagement marketing, this refers to connecting the consumer to a brand through an experience.

For example, how Fanta created an engaging experience with customers, a competition where customers are required to taste the mystery Fanta and guess the flavour - social media sites were used to provide customers with clues

• one-to-one marketing: involves focusing on individual customers getting to know their behaviour and then customising the products and services for the individual

An example of this is product recommendations that online retailers make use of, these recommendations are based on consumers previous browsing history, reviews and purchase data

• permission marketing: refers to first getting the customers permission to send the marketing communication.

For example, consumers are asked to indicate whether they would like to receive email communication regarding their latest products and specials

• real-time marketing: refers to developing marketing strategies that deliver communication at the right time and place, real time marketing makes use of technology.

For example, Nando’s tweeting “ it’s getting Mes-I on the field” during the 2022 FIFA World Cup

Question 3

*What are the different product strategies

Answer 3

• right product
• perceived product
• building relationships with customers

The product is essentially the prerequisite for successfully marketing a brand.

Question 4

*Explain the right products in regards to product strategy

Answer 4

If a product is not needed in the market it will not be bought by customers.

The business must offer consumers a product that they perceive to be of value to them, that will meet a need or want.

Question 5

*Explain perceived product quality in regards to product strategy

Answer 5

Perceived quality is the way in which the consumer views the overall performance, superiority and quality of the product compared to competitor products

Question 6

*What are the factors that influence perceived quality

Answer 6

Experience - the consumers experience with the product or the brand will influence the perception of the product. These perceptions are also formed by what they hear or read about the experiences of other customers using the product

For example, bloggers and vloggers that test out the product and post reviews about them. Customers who see these reviews and form their perception about the product and it’s quality

Price - price is often associated with the quality of the product. Certain products and brands that are priced high are perceived to have a higher quality.

For example, Woolworths

Question 7

*Explain building relationships with customers in regards to product strategy

Answer 7

Businesses can build a relationships through their product offerings, through strategies such as mass customisation, after-marketing activities (calling the client to make sure that they are satisfied), loyalty programs (cash back and other rewards).

Question 8

*Practically apply the marketing mix elements for Apple

Answer 8

product
Mac, Iphone, Ipod, Ipad

price
Exclusive high-end, pay higher price

place
Retail stores, Istores, mobile network stores, online stores

promotion
“Think different” various platforms

Question 9

*Define promotion

Answer 9

Refers to all the methods of marketing communication that the business makes use of to inform, remind and incite the customer to purchase

Question 10

*What are the different marketing communication methods

Answer 10

advertising, sales promotion, personal selling, public relations, direct marketing, sponsorship, endorsements and influencer marketing, and digital communication

Question 11

*What consists of advertising

Answer 11

Advertising refers to any type of marketing communication from the business that is paid for, that is impersonal, and conveys some information to the consumer

this includes print, broadcasting, the internet, out of home advertising, branded entertainment, interactive media

Question 12

*What consists of sales promotion

Answer 12

It is a short-term tactic that is used to persuade someone to try out or use a product

Question 13

*Sales promotion can be classified into what three categories

Answer 13

• customer oriented: aimed directly at the end consumer. (sampling, price incentives, tie in promotions, bonus packs, loyalty programs, competitions)
• business orientated: aimed at intermediaries within the distribution channel. (cooperative advertising, trade allowances, in store promotion, incentives, trade shows)
• sales force-orientated: aimed at the businesses sales team, it is a means of encouraging the sales team to reach or exceed sales targets. (bonuses, contests, sales meets)

Question 14

*What consists of personal selling

Answer 14

Involves a personal, face-to-face presentation of a product to a potential customer

Question 15

*What are the several types of personal selling that a business can use

Answer 15

responsive selling: salesperson offering consumers what they want, responding to their needs and demands

trade selling: the business caters to the needs of the retailers who stock their products

missionary selling: provides the market with information about the product before it is launched

technical selling: sales people with the skills to explain technical aspects of a product

creative selling: presentation where the sales person convinces potential customers that they have a problem and that their brand or product will solve this problem

consultative selling: salesperson will first try to build a relationship with the customer and then determine the customers needs and show them how their product can solve this need

soft selling: touch points that a customer interacts with such as employees helping a customer find an item in a shop, or friendly cashiers

Question 16

*What consists of public relations

Answer 16

Refers to the use of communication to build good relations with the public.

The brand can do this using a proactive approach (taking advantage of opportunities within the market) or reactive approach (brand responding to events in the external environment that may influence the brand’s position in the market)

Question 17

*What consists of direct marketing

Answer 17

Involves collecting and using customer data to develop marketing messages that are aimed directly at individual customers

This includes direct mail, telemarketing, direct response print media, direct response broadcast media and interactive media

Question 18

*What consists of sponsorship

Answer 18

It involves the brand supporting an activity, an event, a person or even an organization in the form of finance, equipment, uniform etc. in return for the sponsors brand name and logo to be associated with the event or activity

Question 19

*What consists of endorsements and influencer marketing

Answer 19

Involves a well-known individual or celebrity being associated with a particular brand, the fame of the celebrity is used to raise awareness for the brand and build a positive Image

Question 20

*What consists of digital marketing

Answer 20

It refers to the use of digital methods to communicate a marketing message, it uses digital techniques such as websites, mobile phones, search engines, podcasts, social media etc.

Question 21

< What is an integrated marketing communication program (IMC)

Answer 21

It is the integration or linking of all the marketing messages of the brand - the brand essentially speaks in one voice through different communication channels

Question 22

What is the goal of integrated marketing communication program (IMC)

Answer 22

It is to develop a communication campaign that effectively communicate a single brand message and that builds the brands equity

Question 23

What criteria can a brand use to ensure that the IMC program delivers a single message

Answer 23

• coverage: ensuring that the communication media used reachs the correct audience
• contribution: the role that the specific communication media plays in the campaign and how well they execute that role
• commonality: marketing communication media selected must be coordinated so that they communicate a single, united message about the brand
• complimentary: communication media used must complement each other
• versatility: communication media must also be versatile in delivering a message to those consumers who have already been exposed to the brand as well as those who have not
• cost: the cost of each marketing communication method must be weighted against its output and what value it will bring to the brand

Question 24

What involves managing the brand and building brand equity over time

Answer 24

> Reinforcing the brand: providing brand knowledge to consumer

> Innovation: ensures that the brand stays ahead of their competitors, and takes to consideration the changes in their environment and adapt

> Revitalising the brand: is important as the brand move through its life cycle and experiences challenges

Question 25

What trends can brands incorporate into their strategies to build brand equity

Answer 25

> disruptive branding - refers to challenging the current status quo and introducing new concepts

> conscious branding - brands actively showing and implementing strategies that make a positive social or environmental impact

> luxury branding - a brand can market itself is a luxury brand

> branding through a pandemic - brands can use such crisis to build their brand equity by helping consumer feel safe (Nando’s cooked meals during the pandemic for communities)

Question 26

Explain place

Answer 26

Refers to the distribution channel used to get the final product to the consumer. It is the element that ensures that brand products are exposed to possible customers in the market. There are several intermediaries such as wholesalers, distributors, importers, agents, retailers and the internet.

Question 27

Explain direct channels and explain the different types of direct channels

Answer 27

Direct channels of distribution involve selling directly, through personal contact, directly from the company to the end consumer.

• the brand’s own store: the business manufactures and sells their products through their own brand retail stores or online through their brand website.
• direct marketing activities: selling the brands products directly through telephone or email.

Question 28

Explain indirect channels and explain two strategies that can be used in an indirect distribution channel

Answer 28

Usually involve several intermediaries to get the product to the consumer.

Push strategies: the brand directs their marketing efforts directly at the intermediaries - they do this by building relationships and loyalty with the different intermediaries.

Pull strategies: the business focus their marketing efforts at the end consumer - this way the brand builds preference among their consumers