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Mata kuliah
Tahun
: 00274 - Integrated Marketing Communication
(IMC)
: 2009/2010
Brand, Channel & CRM Strategy
Pertemuan 23 & 24
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.
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More Than a Name
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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.
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The Three Characteristics of All
Strong Brands
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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.
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The Consequences of the Three
Characteristics of All Strong Brands
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Brand must be top-of-mind.
Advertising is the key to successful brand
building.
Brand must be consumer-driven
Marketing owns the customer
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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5 level of customer attitude toward his
or her brand (Aaker, 2000)
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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
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Brand Equity (1)
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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)
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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.
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THANK YOU!
THE WINNER WILL NOT QUIT… BUT,
THE QUITER WILL NOT WIN……!
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