branding as a marketing strategy brief
TRANSCRIPT
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BRANDING AS A MARKETING
STRATEGY
A Perspective for A Common Platform
Proposed by Rahim Jabbar
Jakarta ,11th May 2005
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Points of discussions (1)
• Marketing as a Core Business Process – What Is Business?– The Essence Of Transaction/Exchange Process– The Essence Of Values Exchanged– Three Kinds Of Business In Commercial Organization– Basic Strategic Marketing Questions For The Business – Marketing: From Commodity to Brand – General Stages of Segmentation, Targeting &
Positioning – Stage-gate Product Development Process– Critical Success Factors for Marketing – Marketing as a “social and cultural engineering
process”• Main Points of the Marketing Concept • Basic Concepts of the Brand
– Fundamentals of Brand– Components of A Brand– Product/Service as the Basis– Name as the Identifier and Relater– Packaging as the Presenter – Message and Communication as the Purveyor
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Points of discussions (2)
• The Process of Brand Development – From Customer Values to Brand Concept– Brand Concept and Brand Architecture
• The Positioning for A Brand– The Concept of Positioning– Factors to be Considered – Positioning, Brand Development and Target Segment– Questions to Develop Message Contents and
Advertising
• Managing the Brand– Brand Management – Reaching the End-Customers– Communications and Advertising– Brand Communications: Hard and Soft -Sell – Objectives of Advertising, Promotion and
Merchandising– Components of A Winning Offer– Operational Aspects of Brand Equity.
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Points of discussions (3) • The Paths Towards Developing A Global Brand
– The Paths: Elegant Concept and Excellent Execution– Pre-requisites to Develop a Global Brand– Requirements to Nurture and Maintain a Global Brand– The Targets for a Global Brands:
• The five segments of the global consumers• The 11 segments of transnational consumers• The Social and Economic Classes of the Global
Consumers – Learning from the Leaders : 100 Global Most Valuable
Brands – Global Brand Necessitates a World-Class Organization
• The Concepts of Strategy
– A Definition of Strategy– The Dimensions of Strategy– Practical Applications of Strategy– Strategy: Creating the Future Today– Practical Strategic Questions– Strategic Management Process– Strategic Decision Making Process– Focal Points of Different Views of Strategy– Managing Key Strategic Issues to Develop a Winning
Strategy
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MARKETING AS A COREELEMENT OF BUSINESS ACTIVITY
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WHAT IS BUSINESS ?
TheOwners of
Capital/Resources
TheFirms
INPUTS
INVEST
THROUGHPUTS TARGETMARKET
The Business Processes
THE RETURNS
OUTPUTS
The Transaction/Exchanges
RETURNOn
INVEST-MENT
Copyright Rahim Jabbar /2002
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What is the ESSENCE/NATURE of TRANSACTION PROCESS?
THEFIRM
CONSUMERS/CUSTOMERS
PRODUCT/
SERVICETHAT PROVIDES VALUES TO THE
PRO
DU
CES/
PRO
VID
ES
THE
OFFER
SATISFACTION
THE
MONEY
TRANSACTION
INCOME/EARNING
THE EXCHANGEPROCESS
Copyright Rahim Jabbar/1999
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THE ESSENCE OF VALUESTHAT ARE DERIVED FROM CONSUMPTION
GOODS
IDEAS
SERVICES
EVENTS
ENTITIES
THEOFFE
R
ACQUIRED
USED
DISPOSED
THEENVIRONMENT
CONSUMER
GOALS
WANTS
NEEDS
ACHIEVED
SATISFIED
FULFILLED
VALUES
VALUES : SPECIAL MEANINGS ATTACHED TO SPECIFIC CONSUMPTION OCCASIONS/ EVENTS
VALUES
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Three Kinds of Business in Commercial Organization
THE COMMERCIALENTERPRISE
ORGANIZATION
INFRA-STRUCTURE
PRO
DUCT/S
ERVIC
E INN
OVATIO
NCUSTO
MER
REL
ATIO
NSH
IP
To
find
and
crea
te c
onsu
mer
s/cu
stom
ers a
nd
build
and
man
age
rela
tions
hip
with
them
To conceive appealing/attractive new product/service and
figure out how to bring them
to the market speedily To build and manage facilities for high volume,
repetitive operational tasks (manufacturing, storagelogistics, communications)
Source : Adapted from John Hagel III and Marc Singer, Unbundling the Organization< (2001)
SPEED is the Key:The Battle for Talent,Employee centered,
coddling the creative stars
Battle for SCOPE:
Service-oriented,consumer-comes-
first mentality
Battle for SCALE:
High fixed cost,Cost focused,
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1. Where are we now?
Consumer/Customers Competitors
P.E.S.T.
3. Why are we where we are now?
S.W.O.T
Company
Vision
4. What do we want to be ? Where do we want to go ?
Mission
S.T.P.
Segmentation
Targeting
Positioning
Portfolio Strategy
6. Which way is the best ?
Basic Strategic Marketing Questions for the Business
5. How can we go there ? Is there any other alternatives ?How many alternatives do we have ?
Development of strategic options
6.How do we implement the selected strategy ?
Evaluation of strategic options
Mixing and matching the Marketing Mix Elements
Creation
Development
Activation7.How do we ensure our reaching the selected destination ?
Control of implementation
Market Share ProfitabilityBrand Health
Copyright Rahim Jabbar/2002
2. What separates the winners from the losers?
Critical Success Factors
Potentiality
Competitiveness
Relevant segmentation variables
Commodity or Brand?
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1. How is our current situation?
Constraints
Current Position
2. What is (are) our objective(s)?
Marketing Vision/Mission
Capabilities
Identify segment variables
4. How many segments are there? How is the profile of each one ?
Segment the marketsProfile each major Segment
6. What positions ara available for each target segment? (Gap analysis)
General Stages of Segmentation, Targeting, Positioning
5. What specific segment (s) do we want to target? Why ?
Potentiality
Map the market & identify the positions of current offers
7.How do we fill the selected position ?
Create & developalternative positioning concepts
Copyright Rahim Jabbar/2002
AttractivenessTarget selection
Identify alternative “developable” positions
Select the most appropriate concepts
Clear
Correct
Competitive8.How do we make it known to the target ?
Create & developbrand & its communication
3. What is the level of variability of our target markets ? Can we group them into a number of segments?
High variability ->segments Low variability -> segmentation not needed STOP
12Source: Adapted from Braun’s Mission Statement as quoted by Bruce & Jevnaker, “ Management of Design Alliances”, Sustaining Competitive Advantage”, Wiley, 1998 . (The two statements within brackets are the writer’s addition)
MARKETING:‘STAGE-GATE” PRODUCT DEVELOPMENT PHASES
Stage1
IDEASGate
1Gate
2Stage
2Gate
3Stage
3Gate
4Stage
4Gate
5Stage
5
Ideation
P.I.R.
InitialScreen
SecondScreen
Decisionon
BusinessCase
PostDevelopment
Review
Pre-Commercialization
andBusinessAnalysis
PostImplementation
Review
PreliminaryInvestigation
DetailedInvestigation
(BuildBusiness
Case)
Development Testingand
Validation
FullProduction
andMarket Launch
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MARKETING AS SOCIO-CULTURAL ENGINEERING PROCESS :
A view from the hinterland
Individualspecificity
A particularSocio-cultural
millieu
The universalhumannature
Humanbeings
An
Integrated
Set of
stimuli
TheBRAND
Rahim Jabbar/1999
Being‘ENGINEERED”
Individualspecificity
A particularSocio-cultural
millieu
The universalhumannature
CONSUMERS
To consumecertain PRODUCT
and to choose a
specific BRAND
Transformed into
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MAIN POINTS OF THEMARKETING CONCEPTS
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MAIN POINTS OF THE MARKETING CONCEPTS (1)
1. Marketing is a major element of the core business processes of creating value added through inducing and stimulating transactions/exchanges
2. Business transaction can only be realized through offering product/service (=the offer) as a means of exchanging values between the consumers/customers/clients and the
firms/companies.
3. Consumers/customers/clients will consider any offer (be it product or service) as bringing values to them if the offer help them achieve their goals , satisfy their wants and fulfill their needs
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MAIN POINTS OF THE MARKETING CONCEPTS (2)
4. Values, therefore can be seen as special meanings attached to a particular consumption occasion (of using or consuming a product or the event of receiving a particular service. (pragmatic/utilitarian use of the word “value”)
5. At this point, marketers have two options: go with the product as a commodity wrap the values offered by the product through branding
6. Branding is a strategic option for marketing a product. Branding is a means of wrapping the values surrounding the product.
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MAIN POINTS OF THE MARKETING CONCEPTS (3)
7. The task of marketing function is to find and create consumers/ customers/clients by transforming individual persons or groups of people from being “lay people in the streets” into obtaining some added values at consuming the offers/using the product or becoming recipients of the services.
8. After this transformation, the task is to manage the relationship
(Customer/Consumer Relationship Management).
9. Managerially, the marketing process consists of development, creation, and activation of the marketing mix for the offer (product or service) destined for a specific target in mind.
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10. These days rarely do we find single product for single market
(a single product-market category). The overwhelming majority
of categories comprise of multi-products targeted at a variety of
different groups of consumers/customers /clients. ( Each
group is conveniently called a segment of the market).
11. Due to the above reasons, the development of any offer (be it
product or service) should go through the process of S.T.P.
(Segmentation, Targeting and Positioning)
MAIN POINTS OF THE MARKETING CONCEPTS (4)
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12. Segmentation is the way you partition the market based on certain approach. Segmenting the market would facilitate in choosing the specific part of the market you want to target.
13. Targeting is the process matching your product/offer to specific part of the market.
14. Positioning is the way you differentiate your product/offer from same product category targeted to the same segment.
MAIN POINTS OF THE MARKETING CONCEPTS (5)
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BASIC CONCEPTS OF THE BRAND
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OBJECT
NAME
MEANINGS &ASSOCIATIONS
VALUE - ADDED GENERATED BY BRAND
The value ofre - assurance
TRANSFORMATION EXPERIENCESubject experience of using a brand :
promotive/de-motive effects - of brand on physical product characteristics
Differentiation/ “Brand Personality”A relevant emotional metaphor linked with social dimensions Outer Directed
Inner Directed
Badge of Origin
Authenticity
Promise of Performance
Replicability
FUNDAMENTALS OF BRAND
Sources : Excerptedfrom various sourcesand business experiences
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THE BRANDS : COMPONENTS OF A
BRAND
THEBASIS
The Product/Service
THE IDENTIFIER/
RELATOR
Brand Name/Logo
THEPURVEYOR
The Message/Communication/
Advert.
THE PRESENTER
The Packaging
Should be matching toeach other
Should be matching toeach other
Should be matching to each other
THE PROXY OF
VALUE
ThePrice
Should be matching
Copyright Rahim Jabbar/1999
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THE BRANDS:PRODUCT/SERVICE AS THE BASIS
HABITS AND USAGE DATA/INFO
USERS THE PRODUCTBenefits Attributes
ChoiceCriteri
a
OverallPerformance
Measure
Dimensions of Product Performance
SpecificPositives/Negatives
Physicalattributes
Effectattributes
Processattributes Benefit
attributes
Uses/Usages
Development
of consumervocabulary
Correlation !!!
CopyrightRahim Jabbar/1999
VALUES
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THE BRANDS :NAME AS THE IDENTIFIER AND RELATOR
Meanings
Associations
Sound/rhyming
Shapeof
Fonts Symbols
Socio-culturalcontext
TheBRANDNAME
Commonalityof association -> CORE
A B
C
Page 7
ImpactingAffective
& Cognitiveaspects of
human ImpactingconsumerperceptionCopyright
Rahim Jabbar/1999
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THE BRANDS :PACKAGING AS THE PRESENTER
Colour
Associations
Shape
Logo/Icon Symbols
Socio-culturalcontext
ThePACKAGING
Materials
Attributes
ImpactingHumanMood
Impactingcognitive &
affectiveaspects of
humanbeings
Impactingconsumerperceptio
n
Copyright Rahim Jabbar/1999
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THE BRANDS :MESSAGES, COMMUNICATION & ADVERTISING
AS THE PURVEYORWhat to say and How to say it
What ?(THE
PROMISE)
How ?(The Way)
To Whom?(THE
TARGET)
CommunicationPsychology(Symbology,
tone, pitch,etc)
Creativity(Big Idea)
ConsumerPsychology
ADVERTISINGAND
COMMUNICATIONMATERIALS
(AUDIO/VISUALS)
Why ?(THE
SUPPORTINGFACT
COPYSTRATEGY
SELECTEDPOSITIONING
Should be
CORRECT
Should be
CLEAR
Should be
COMPETITIVE
For the
PRODUCT
For the
MARKET
Should considerLONG-TERM
HEALTH OF THEBRAND
Copyright Rahim Jabbar/1999
Should be
CREDIBLE
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THE PROCESS OFBRAND DEVELOPMENT
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FROM CUSTOMERS VALUES TO BRAND CONCEPT
GOALS
WANTS
NEEDS
VALUES : SPECIAL MEANINGS
ATTACHED TO SPECIFIC USAGE/CONSUMPTION
OCCASIONS/EVENTS BY CONSUMERS/CUSTOMERS/
CLIENTS WHEN:• Their goals are achieved• Their needs are fulfilled• Their wants are satisfied
CONSUMERS’/CUSTOMERS’/
CLIENTS’VALUES
Social/Cultural*)
Physiological/
Biological
Psychological
BENEFITS
BENEFITS
THATBRING
BENEFITSAND
SATISFYWANTS,
ETC.
ATTRIBUTES
Sensorial(Visual/
Tactile/Taste)
Physical
Process
Effects
BRAND
PRODUCT
SERVICES
IDEAS
EVENTS
ENTITIES
A W R A P P E R & C A R R I E R OF
To be achieved
To be fulfilled
COPYRIGHT Rahim Jabbar 2002
*)For organization (B-to-B) the group includes economic, technical and expertise benefits
To be satisfied
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FROM CUSTOMERS VALUES TO BRAND CONCEPT
Developing a brand should start from core values that uniquely define the essence of your offer (product or service). The consumers/customers/clients (“market segment”) will happily buy and consume product or brand that is
believed to help them achieve their goals, fulfill their needs and satisfy their wants. In other words, they will surely consider anything
that brings values to them.(“Beauty is in the eyes of the beholder”).
For example, people use furniture to give comfort and convenience to their life (i.e. not having to always stand neither sit nor lay their body on the
floor). Furniture is the provider of values to the users, through giving the benefits of comfort (physiological need) and convenience (psychological needs). The maker arranges the properties of certain materials and design
that give the attributes which deliver the required benefits. (“KALAU DUDUK LUPA BERDIRI’ – WHEN SITTING ON THIS, YOU
WILL FORGET TO STAND UP) )
COPYRIGHT Rahim Jabbar 2002
*)For organization (B-to-B) the group includes economic, technical and expertise benefits
BRAND CONCEPT:
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Brand Concept and Brand Anatomy
VALUES
Exploring,describing,defining
sought by the target market
In theforms of
GOALS/NEEDS/WANTSTo be achieved, realized, satisfied
Translatedinto BENEFITS
Specific
required
Translatedinto ATTRIBUTES
Specific
that bring BENEFITS
Thatsupport
PROPERTIES/CHARACTE-
RISTICS
PRODUCTS
SERVICES
IDEAS
EVENTS
BRAND CONCEPT
Positioning Opportunities
Ideas & Innovations
BRANDANATOMY:
A PARTICULARARRANGEMENT OF
BRAND COMPONENTS TO PRODUCE A
UNIQUE MIXOF VALUES
THE PROCESSOF SELECTINGAN EFFECTIVE& POWERFUL
BRAND
that represent VALUES
BRAND DEVELOPMENT PROCESS:• If you have a product already, start with the core values that constitute the essence of your offer. Then match this with the consumer segment that seek those essential values. The segment is your target.• If you do not have a product yet, find what core values are sought your target market. Then develop and create a product/brand that possess properties and characteristics that bring benefits of offering the values they look for.• The brand concept is the statement of encapsulation of essential values that your product offer to the target. The brand concept should be able to fill in the best position in the mind of the target, in order to create a powerful brand. As such, you need to combine and arrange the brand components (product/service characteristics, name, packaging, core messages , and price) within a harmonious, balanced and coherent architecture).
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Brand Concept and Brand Anatomy
BRAND DEVELOPMENT PROCESS:• If you have a product already, start with the core values that constitute the
essence of your offer.• Then match this with the consumer segment
• that seek those essential values. • The segment is your target.
• If you do not have a product yet, find what core values are sought your target market.
Then develop and create a product/brand that possess properties and characteristics that bring benefits of offering
• the values they look for.The brand concept is the statement of encapsulation of essential values that
your product offer to the target. The brand concept should be able to fill in the best position in the mind of
the target, in order to create a powerful brand. As such, you need to combine and arrange the brand components
(product/service characteristics, name, packaging, core messages , and price) within a harmonious, balanced and coherent design).
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THE POSITIONINGFOR A BRAND
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Positioning : The Concept
• “Positioning is what you do to the mind of the prospect. That is how you position your product/brand in the mind of the prospect.
• Therefore, to be effective,
• Positioning has to be done with the target (consumers/market) in mind• The marketer should understand :
• What explains their behaviour (what motivates them; what benefits are sought.
• The degree to which his/her product/brand satisfy the target’s needs (Brand Health Indicator/Brand Equity Monitor)
• The degree to which the competitors’ products/brands satisfy the target’s needs (Customer Satisfaction Monitor, Competitive
Brand Mapping, etc.) )
Source: Adapted from Al Ries & Jack Trout, “Positioning, the Battle for Your Mind” (1989)
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Positioning : Factors to be Consideredand Potential Sources
• Positioning is to find a position of your offer ( in the mind of the prospect) that is THE BEST for it and THE MOST APPROPRIATE FOR
THE TARGET MARKET
• Factors to be considered, therefore, should be :• the product/service itself (What makes it so unique? What can make it
distinctive ?). The followings can be explored : a. Technical innovation (GSM, G-4 )
b. Improved Performance (Corolla Altis) c. Perceived Superiority (Intel Computer Microchip) d. New benefits (Sony Walkman, G-3 Phone in Japan)
• the Company that makes it (What makes the Company so special?). Examples :Baygon --> Bayer guarantees Quality)
• Consumer Preference : Citibank, the House of Money.• The Competitive Environment. The followings can be explored :
a. Market segmentation (AMEX Card) b. Re-classifying competitors (BMW vs. Mercedes)
c. Price/Value (Promag vs. Mylanta)
Source: Adapted from Al Ries & Jack Trout, “Positioning, the Battle for Your Mind” (1989)
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THE POSITIONING:POSITIONING, BRAND DEVELOPMENT
AND TARGET SEGMENT
THEBASIS
The Product/Service
THE IDENTIFIER/
RELATOR
Brand Name/Logo
THEPURVEYOR
The Message/Communication/
Advert.
THE PRESENTER
The Packaging
Should be matching to
Page 5
THE PROXY OF
VALUE
ThePrice
Copyright Rahim Jabbar/2002
SelectedPOSITION
withinTARGET
SEGMENT
THE SELECTED
POSITIONING
Correct for the product
Direct the development of the offer
Correct for the targetsegment
BRANDCONCEPT
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Brand Positioning: Basic Questions to Develop the Message Content and Communication Strategy
1. Brand Vision : What is the ultimate goal you have in mind for your brand.2. Brand Mission : What role will it play in the market? (How many roles are there? What are they ?) What role will it play in the Company’s portfolio?. (How many roles are there? What are they ?)3. Basic Positioning : How you want it to be seen comparatively among the offers claiming the same/similar benefits? (targeted to the same segment) Acid tests are : * Is it clear ? (unmistakable v.s. the others?) * Is it correct ? (for the brand ? for the market? for the target group?) * Is it competitive ? (better than the others ? able to challenge market leaders/major players in the category/segment/sub-segment ?) 4. Consumer end benefits: What will it do for me ? (functionally ? Emotionally ? Socially ? Etc.) 5. Reasons why : What make/will make the consumers believe that it will give the end benefits stated ?6. Proofs : Why should your brand delivers its promise ?7. Support benefits : What other benefits I get? (The consumer questions)
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MANAGINGTHE BRAND
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MANAGING THE BRAND
PRODUCT/SERVICE
The Basis/Foundation
NAME/LOGO
The Identifier& Relator
COREMESSAGES
The Purveyor
PACKAGING
The Presenter
PRICE
Proxy ofValue
DISTRIBUTED
TARGETMARKET
Copyright: Rahim Jabbar, 2004
ADVERTISED
BRAND MANAGEMENT: Managing brand covers developing, rejuvenating, extending, marketing the brand (that includes distributing and advertising to the target market). The objective of brand management is to develop, create
and strengthen equity of the brand. (Brand equity is the ability of a brand to gain market share, through first having aa reasonable share of heart and share of mind).
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MANAGING THE BRANDREACHING THE END-CUSTOMERS
MANUFACTURER/SUPPLIER
DIRECT INDIRECT
DIRECTSALES
TELE-MARKETING
FACE-TOFACE
DIRECTMARKETING
SPECIALIZEDRETAILSTORE
WHOLLYOWNED
FRAN-CHISE RETAILERS RETAILERS RETAILERS
WHOLESALER
DISTRIBUTORS
WHOLESALER
THEINTERNET
E N D C U S T O M E R S
Source: Capon & Gilbert :” Marketing Management for the 21st Century”
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MANAGING THE BRAND: COMMUNICATION & ADVERTISING
The Essence of Marketing Communication Process
WHO WHATWHAT
EFFECTSSAYS IN WHAT CHANNEL
TO WHOM WITH
MARKETEERS
EXPOSES
THEOFFER
PROMOTE
ADVERTISE
DISPLAY
ABOVETHELINE
BELOWTHELINE
THETARGET
OTHER-WISE
PREFERENCE
Copyright Rahim Jabbar/1999
BRAND COMMUNICATION:
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* Hard-Sell : How does brand communication persuade people to buy ?
MessagesTransmission/Transportation
Persuasion &play - back
TransformedBehaviour
Buying
* Soft-Sell : How does communication add values through symbols that carry specific meanings ?
Messages Myths/Rituals
Modifiedsharedculture
Attitudinalchange
Behaviouralchange
Buying
Symbols
Meanings
Values
MANAGING THE BRAND:BRAND COMMUNICATION
Soft-Sell vs Hard-Sell
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1.To create awareness of the product/brand
2.To create desire for the product/brand
(Stress customer benefits & their values)
3.To influence customer attitudes to the product (e.g.”caring”,etc)
4.To create brand loyalty
5.To persuade customers to buy
6.To persuade the customers to visit the outlets, compared to others
7.To remind customers to buy
8.To inform the market about the product/brand
9.To provide re-assurance about the product/brand
10.To be always ethical
Source: Adapted from Braun’s Mission Statement as quoted by Bruce & Jevnaker, “ Management of Design Alliances”, Sustaining Competitive Advantage”, Wiley, 1998 . (The two statements within brackets are the writer’s addition)
MANAGING THE BRANDS:The Objectives of Advertising, Promotion and Merchandising (APM)
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WinningOFFER
(BRAND/PRODUCT)
Competitive
PREFE-
RENCE
Competitive
PREVA-
LENCE
Competitive
PRICE/VALUERATIOPRICE
ProductPERFORM
-ANCE
COMMUNICATIONAPPEAL
MANAGING THE BRAND:COMPONENTS OF A WINNING OFFER
PerceivedPERFORMANCE
ActualPERFORMANCE
Psycho-logicalneeds
Socialneeds
Cultural
needs
VISI-BILIT
Y
AUDIB-ILITY
AVAIL-ABILITY
TARGETCONSUMERS
Physio-logicalneeds
VISUAL/AESTHETI
CAPPEAL
SHARE OF VISUAL
MATERIALSSHARE OF
SHELF SPACE
SHARE OF VOICE
LEVEL OFEXPOSURE
DISTRIBUTION
PUSH
PULL
MEA-SURE
OFDEG-REEOF FIT
BET-WEENCON-SUM-ERS’
NEEDSAND THE
OFFER
Copyright Rahim Jabbar/1999
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MANAGING THE BRAND : Operational Aspects of Brand Equity
Advertising Quality
Advertising weight
– Qualitative research results– Take out
– Brand Support Expenditure– Share of voices (Spend & TARPS)
Perceived Quality
Price
– Actual Quality / CPT
– Price differentials
Spontaneous Awareness
Aided Awareness
– Advertising Awareness– Brand Awareness
– Source of Awareness
Numeric Distribution
Weighted Distribution
– Numeric Distribution– By channel
– Sales per distribution points
Awareness Effects
Distribution Effects
Value
Advertising Effects
Consumer Pull
Operational Effects (Push)
Brand Equity
(6%)
(28%)
(72%)
(50%)
(50%)
(37%)
(63%)
(100%)
(94%)
(95%)
(5%)
(99%)
(1%)
(82%)
(18%)
Targets: Marketing– Consumer Profile– Volume &Share
Targets: Financials– NTO and margins
– Brand trial & re-purchase– Switching in and out
Brand Performance– Volume growth– Share/share development– Loyalty
– Brand Image
Source: A study on a fast moving consumer product market in Malaysia (1985-1995)
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THE PATHS TOWARDS CREATING & DEVELOPING
A GLOBAL BRAND
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THE PATHS TOWARDS CREATING A GLOBAL BRAND
ELEGANTCONCEPTUALFOUNDATIONS
EFFECTIVE EXCELLENTEXECUTIONS
FORWARD THINKINGAbility to pre-select a category/segment that will mostlikely prove to be long lasting
Source : Analyzed by Rahim Jabbar from a series of articles on “The Best 100 Global Brands”,
Business Weeks, July 2001, and August 5, 2002.
Pre-requisites to develop
a Global Brand
Requirements to nurture and
maintaina Global Brand
UNIVERSAL CORE SEEDSPosses universal core seeds that can develop into acceptability and appeal to transnational audience/consumers
LEADERSHIP SEEDSPosses the ability to lead the category/segment wherethe brand operates
CONTEMPORANEOUS RELEVANCEPosses the ability to remain relevant to target consumersthrough the properties that can be regularly reformedto become always contemporary.
PROTECTABILITYAbility to legally protect the Trade Mark wherever it operates
WORLD CLASS MARKETING COMPETENCEPosses the necessary and sufficient marketing competenceto support effective and excellent marketing activities
SUFFICIENT AND EFFICIENT FINANCIAL MUSCLESPosses the necessary, sufficient and efficient financial muscles to be able support effective and excellent marketing activities that can reach above necessary threshold level.
STABILITYAbility to maintain the brand to remain stable throughoutthe peaks and troughs of market environment
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Pre-requisites to develop a Global Brand
FORWARD THINKINGAbility to pre-select a category/segment that will mostlikely prove to be long lasting
Source : Analyzed by Rahim Jabbar from a series of articles on “The Best 100 Global Brands”,
Business Weeks, July 2001, and August 5, 2002.
UNIVERSAL CORE SEEDSPosses universal core seeds that can develop into acceptability and appeal to transnational audience/consumers
LEADERSHIP SEEDSPosses the ability to lead the category/segment wherethe brand operates
CONTEMPORANEOUS RELEVANCEPosses the ability to remain relevant to target consumersthrough the properties that can be regularly reformedto become always contemporary.
THEPRE-
REQUSITES
Contains “stretchable cultural values” (parts of the “cultural universals”) that make it possess international potentialityand thus the ability to penetrate multinational markets .
Contains the “core values” that can be maintained across cultural boundaries, whereas the “surface structure of itscommunications” can be easily “localized”, whilst maintainingits perception of universality and international-ness.
Having a competitive quality of values offered to the target consumers/customers.
Having a “point-of-difference” that creates a strong influence on consumers that is able to make it the brand of choice within the product category/segment where it operates
Having a “strong competitive advantage”with a flexible twist
Having the ability to create, develop and nurture line extensions product lines under the “values of family umbrella”
The Company (its people) have gained a good understandingand working knowledge on transnational consumer culture.
The Company (its people) have gained a good understandingon the likely forces in the future that might shape thetransnational consumer culture.
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Requirements to nurture and maintain a Global Brand
Source : Analyzed by Rahim Jabbar from a series of articles on “The Best 100 Global Brands”,
Business Weeks, July 2001, and August 5, 2002.
PROTECTABILITYAbility to legally protect the Trade Mark wherever it operates
WORLD CLASS MARKETING COMPETENCEPosses the necessary and sufficient marketing competenceto support effective and excellent marketing activities
SUFFICIENT AND EFFICIENT FINANCIAL MUSCLESPosses the necessary, sufficient and efficient financial muscles to be able support effective and excellent marketing activities that can reach above necessary threshold level.
STABILITYAbility to maintain the brand to remain stable throughoutthe peaks and troughs of market environment
THEREQUIREMENTS
The Brand as a Trade Mark can be legally registered that willensure the strength of Company’s ownership of the Brand
The Trade Mark is own-able across national boundaries
The Company has the legal capability to defend any disputeswith regards to ownership of the Trade Mark
The Company’s marketing people have got unending sourcesof creativity to design and execute excellent, effective and efficient marketing activities
The Company’s marketing people have got the capability to conduct high quality marketing strategies and tactics
The Company’s marketing people have got the capability to conduct high quality distribution activities and trade marketingoperations
The Company has got an excellent cash-flow plans that willensure continuous flows of necessary funds to finance appropriatemarketing and communication activities at optimum level toachieve “share of prevalence” above the required threshold.
Through its excellent marketing & communication activities, the Company has been able to develop, nurture and maintain theBrand(s) that have got the ability to command consistent andfocused consumer/customer loyalty.
49
THE PATHS TOWARDS CREATING A GLOBAL BRAND:THE ELEVEN SEGMENTS OF THE TRANSNATIONAL CONSUMER CULTURE
Source : Adapted from “Ueltzhoffer & Ascheberg in “Transnational Consumer Culture & Social Millieus”, Journal of Market Research Society, January 1999(( c) Sigma)
SOCIAL STATUS
Upper Class
Upper Middle Class
MiddleMiddle Class
LowerMiddle Class
LowerClass
UpperConservative
Segment
BASIC ORIENTATION
M a t e r i a l i s mT r a d i t i o n a l H e d o n i s m P o s t M a t e r i a l i s m S u b j e c t i s m
“To preserve”“To have”&“To defend”
“To buy”&“To consume”
“To indulge”“To be” &“To share”
“To have” &“To sense”&“To indulge”
Status & Property Consumption
TraditionalRural
Segment U n d e r p r i v i l e g e d S e g m e n t
T r a d i t i o n a lB l u e
C o l l a rS e g m e n t
T r a d i t i o n a l
M a i n s t r e a m
S e g m e n t
S o c i a l C l i m b e rS e g m e n t
U p p e r L i b e r a lS e g m e n t
P o s t
M o d e r n
S e g m e n tS o c i o -
C r i t i c a l
S e g m e n t
(1) (2) (3)
(4)
(5)
M o d e r n
M a i n s t r e a m
C o u n t e r
C u l t u r e
(6)(7)
(8)
(9)
(10)
(11)
SOCIAL
CLASS
50
THE PATHS TOWARDS CREATING A GLOBAL BRAND:THE FIVE SEGMENTS OF THE GLOBAL CONSUMERS
Source : Adapted from,Charles Mitchell,”A Short Course in “International Business Culture ”, World Trade Press, Novato, CA, USA, 2000.
THE STRIVERS ( 23% of Adults in the World)They highly appreciate material wealth, material possessions, status, ambitions and power.Most of them are mature ages (“half-way within average life expectancy ”), skewed moreamong men. Most of them are found amongst the people in both developing and developedeconomies in Asia and the Pacific Rim
THEFIVE SEGMENTS
OF GLOBALCONSUMERS
THE DEVOUTS ( 22% of Adults in the World)They subscribe to more traditional compared to the Strivers. They highly appreciate loyalty, appreciatethe elders and tend to be obedient to their advice. They are found only amongst the people in AsiaAfrica and the Middle East. As consumers, they would prefer local brands compared to internationalbrands.
THE ALTRUISTS ( 18% of Adults in the World)The Altruists are focused more towards outside of themselves. They are highly very well educated,and are very interested in social causes. They are skewed towards older age group (averaging at 44)and are found more among women. They are found mostly amongst the people in Latin America,North America and Russia
THE INTIMATES ( 15% of Adults in the World)The Intimates are focused more towards relationships around household members, families, friendsand business colleagues. They are found mostly amongst the people in United States of America,Britain and Central European Countries. They are the “people’s people”. Half of them are heavy userof media, particularly TV.
THE FUN SEEKERS ( 12% of Adults in the World)The Fun Seekers are skewed towards younger age group, in fact they are the youngest. They are focused more towards seeking funs and adventurous experiences. They highly enjoy elegantappearances.. They frequent bars, discos, night clubs, restaurants and “greedily grabbing electronicmedia. This group has the highest affinity to the global life styles.
THE CREATIVES ( 10% of Adults in the World)The Creatives are found mostly amongst the techno-nerds, and highly appreciate learning and technology. As they very heavy users of the Internet, they are likely to be found in the highlydeveloped countries.
51
Pre-requisites to develop a Global Brand:Who are our targets?
A-ClassTHRIVING
Source : CACI, 1997
THE GROUPS OF SOCIAL
STRATA
• 1. Wealthy achievers, suburban areas.
• 2. Affluent grays, rural areas.
• 3. Prosperous pensioners, retirement areas.
B-ClassEXPANDING
C-ClassRISING
D-ClassSETTLING
E-ClassASPIRING
F-ClassSTRIVING
• 4. Affluent executives, family areas.
• 5. Well-off workers, family areas.
• 6. Affluent urbanites, town & city .
• 7. Prosperous professionals, metropolitan areas
• 8. Better off executives, inner city areas.
• 9. Comfortable middle ages, mature home owning areas.
• 10. Skilled workers, home owning areas.
• 11. New home owners, mature communities.
• 12. White collar workers, better-off multi-ethnic areas
• 13. Older people, less prosperous areas
• 14. Council estate residents, better homes
• 15. Council estate residents, high unemployment
• 16. Council estate residents, greatest hardship
• 17. People multi-ethnic, low-income areas
52
LEARNING FROM THE LEADERS: 100 MOST VALUABLE GLOBAL BRANDS
53
B R A N D TAG-LINE1 COCA-COLA Life tastes good 2 MICROSOFT Where do you want to go today?3 IBM And, that's when it hits you. You are ready for IBM4 GE We bring good things to life5 NOKIA Connecting people6 INTEL The center of your digital world7 DISNEY Come and live the magic8 FORD Better ideas. Driven by you9 MC DONALDS Did somebody say Mc Donald?
Now.. "We love to see you smile".10 AT&T Boundless11 MARLBORO (Come to) Marlboro Country12 MERCEDES Follow whoever you are13 CITIBANK Where money lives14 TOYOTA The car in front is a Toyota15 HEWLETT-PACKARD Invent16 CISCO SYSTEM Empowering the Internet generation17 AMERICAN EXPRESS Do not leave home without it.18 GILLETTE Innovation is Gillette19 MERRILL LYNCH Ask Merrill20 SONY Change the way you see the world21 HONDA Independent thinking (Also:"Simplify")22 BMW The ultimate driving machine23 NESCAFE Awaken your senses24 COMPAQ Inspiration technology25 ORACLE Oracle software powers the Internet
Source : Business Week, 2001
THE TOP 100 GLOBAL BRANDS AND THEIR SLOGANS
54Source : Business Week, 2001
THE TOP 100 GLOBAL BRANDS AND THEIR SLOGANS (Continued-1)
B R A N D TAG-LINE26 BUDWEISER True (Also "This Bud's for you")27 KODAK Share moments. Share life.28 MERCK It's your future. Be there.29 NINTENDO Feel everything30 PFIZER Life is our life's work31 GAP Gap Denim. Wear it now.32 DELL Connecting to your needs33 GOLDMAN SACHS Minds. Wide open.34 NIKE Just do it35 VOLKSWAGEN Driver wanted.36 ERICSON Make yourself heard37 HEINZ Mine's gotta have Heinz38 LOUIS VUITTON The spirit of travel39 KELLOGG'S Have you woken up to Kellogg's cornflakes?40 MTV We are watching41 CANON Imaging accross networks42 SAMSUNG Everyone's invited--> DigitALL43 SAP The best-run businesses run SAP44 PEPSI The joy of Pepsi45 XEROX The digital document company46 IKEA Make a fresh start47 PIZZA HUT Great pizzas. Great time.48 HARLEY DAVIDSON The legend rolls on49 APPLE Think different50 GUCCI The hands of Gucci
55Source : Business Week, 2001
THE TOP 100 GLOBAL BRANDS AND THEIR SLOGANS (Continued-2)
B R A N D TAG-LINE51 KFC No one does chicken like KFC52 REUTERS For people in the know53 SUN MICROSYSTEM Take it to the nth54 KLEENEX Thank goodness for Kleenex55 PHILIPS Let's make things better56 COLGATE The world leader in oral care57 WRIGLEYS For a cleaner, whiter smile58 AOL So easy to use, no wonder we are the World's No.159 YAHOO Do you yahoo?60 AVON Let's talk61 CHANEL Share the fantasy62 DURACELL The most powerful alkaline battery in the world 63 BOEING One destination. A world of solutions64 TEXAS INSTRUMENTS The world leader in DSP and analog65 KRAFT You know you want it66 MOTOROLA Intelligence everywhere67 LEVI'S Originality. Integrity. Innovation.68 TIME Both sides of the story explored weekly69 ROLEX Perpetual Spirit.70 ADIDAS Long live sport71 HERTZ Suddenly, you're free again72 PANASONIC Just slightly ahead of our time73 TIFFANY America's house of design since 183774 BP Beyond petroleum75 BACARDI Latin spirit in everyone
56Source : Business Week, 2001
THE TOP 100 GLOBAL BRANDS AND THEIR SLOGANS (Continued-3)
B R A N D TAG-LINE76 AMAZON.COM A real company in a virtual world77 SHELL Moving at the speed of life78 SMIRNOFF There is vodka. And there's Smirnoff79 MOET&CHANDON L'esprit Moet & Chandon80 BURGER KING It's all about the burgers81 MOBIL Exceed. Why compromise82 HEINEKEN It's all about the beers83 THE WALL STREET JOURNAL Adventure in capitalism84 BARBIE Gotta B.....85 POLO/RALPH LAUREN Active headquarters86 FEDEX This is a job for FedEx87 NIVEA It helps protect your skin88 STARBUCKS Your home from home89 JOHNIE WALKER Keep walking90 JACK DANIELLE Some things never change. Jack Daniel is one of them91 ARMANI Design for the face92 PAMPERS We're right behind you. Every step of the way.93 ABSOLUT Absolut revealed94 GUINNES Good things come to those who wait95 FINANCIAL TIMES No FT, no comments96 HILTON It happens at Hilton97 CARLSBERG Probably the best beer in the world98 SIEMENS Be inspired99 SWATCH Time is what you make of it
100 BENETTON United colors of Benetton
57
GLOBAL BRAND NECESSITATES
A WORLD CLASS ORGANIZATION
58
No. Aspect Basic questions1 Mission & Vision Are there broad lines & targets that effectively guide employees in shaping the firm of the future ?
2 Customer Orientation Is satisfaction of customers' needs an important concern broadly shared within the firm ?
3 Corporate Culture Are there fundamental beliefs & values broadly shared by members of the firm ?
4 Organization & Are the structure & systems of the firm effective in helping management to steer the firm System in the desired direction?
5 Planning & Are external & internal information effectively gathered & processsed to help Intelligence management to steer the firm in the desired direction?
6 Human Resources How effective are the recruitment, development, deployment & mobilization of human resources ?
7 Technical Resources How effective are the acquisition, development, deployment & mobilization of tangible resources ?
8 Innovation How effective are the acquisition, development & implementation of new ideas in all facets of the firm's operation ?
9 Market Strategy How effective are the selection & strategic management of key products and markets ?
10 Marketing Operations How effective is the management of marketing activities ?
11 International How effective is the international management of human resources, technical resources, products & markets?
12 Performance How effective is the firm in obtaining postitive results from its actions?
Source: Jean Claude Jarreche, INSEAD (2002)
THE TWELVE BUSINESS CAPABILITIES
THE PATHS TOWARDS DEVELOPING A WORLD CLASS ORGANIZATION:BUILDING THE REQUIRED CAPABILITIES
59
BASIC CONCEPTS OFSTRATEGY
60
STRATEGY :A Definition
Strategy :• A strategy of an organization ( be it a corporation or a
company or a social organization, etc) forms a comprehensive
master plan, stating how the organization will achieve its
mission and objectives.
• The strategy maximizes competitive advantages and
minimizes competitive disadvantages to improve business
position ( in the market and business results)
61
STRATEGY:The Dimensions
Four dimensions of Strategy:
1. A perspective, that is a view of what an organization, (be it in business
or social one) is to become: a vision and direction.
2. A position in the business world, which reflects decisions on types of products or services to be offered to a particular target
market /customer selected.
3. A plan : on how and means of getting from here and now to there and then
4. A pattern of decisions and actions. As an example, Rolex
always markets very expensive watches: they are applying “high-end strategy”
62
STRATEGY:In Practical Applications
• Strategy evolves over time , as organization’s intentions and
actions collide with and accommodate a changing reality.
As an example, one might start with a perspective about the
environment and the place of the organization within that.
Then he/she concludes that perspective calls for the for a
certain position for the organization. That certain position
can only be achieved through a carefully crafted plan . In
its turn, this plan is to be reflected in a pattern of decisions and
actions over time. (This is called “realized” or “emergent strategy”)
(Adopted from Mintzberg, 1994, The Rise and Fall of Strategic
Planning)
63
COMPETITIVE STRATEGIES:Creating the Future Today!
Source : Hamel & Prahalad, “Competing for the Future” , Harvard Business School Press, Boston, Massachusetts,1994
“There are always two parties : the Party of the Past -> The Establishment and the Party of the Future -> The Movement” (Ralph Waldo Emerson)
THE GOAL
NOT TO PREDICT THE FUTURE
BUT TO IMAGINE A FUTURE MADE POSSIBLE BY
THE CHANGES
IN
• Technology• Life-style• Work-style• Regulation• Global Geopolitics• Etc
Every company is in the process of becoming, either an anachronism, irrelevantto the Future or a Harbinger of the Future
THE FUTUREIS WHAT IS
HAPPENING TODAY !
STRATEGY IS ABOUT SHAPING THE FUTURE !!
“Destiny is not a matter chance. It is a matter of choice. It is not a thing to be waited for; it is a thing to be achieved” (William Jennings Bryan)
64
STRATEGY:Practical Questions for Business Managers
• What have we/you done to improve clients/customers service (today, this week, this month, the last three months, the last six months, the last twelve months) ?
• What have we/you done to improve clients/customers satisfaction (today, this week, this month, the last three months, the last six months, the last twelve months) ?
• What have we/you done to reduce costs (today, this week, this month, the last three months, the last six months, the last twelve months) ?
• What have we/you done to increase productivity and efficiency (today, this week, this month,
the last three months, the last six months, the last twelve months) ?
• What have we/you done to increase revenues from new products and services (today, this week, this month, the last three months, the last six months, the last twelve months) ?
Strategy: to maximize competitive advantages and to minimize competitive disadvantages to improve business position ( in the market and business results)
65
STRATEGIC MANAGEMENT PROCESS:An Overview of the Basic Elements
StrategyContent
EVALUATIONAND CONTROL
StrategicThinking:The StrategyFormulation
Process
StrategicActions:
The StrategyImplementation
Process
C O N T E X T
66
FOCAL POINTS OF DIFFERENT VIEWS ON STRATEGIES
STRATEGY(in general)
CORPORATESTRATEGY
COMPETITIVESTRATEGY
Courses of Actions
Choices &Commitments
Competitors &Competition
RelationshipBetweenENDS andMEANS
• Business• Markets• Products• Services
PORTER• Cost• Differentiation• FocusTREACY & WIERSEMA• Operational Excellence• Customer Intimacy• Product Leadership
67
STRATEGIC ISSUES
MEETSCUSTOMERS’
NEEDS BETTER
AND AT LOWER COST
ASUCCESFULSTRATEGY
WHAT ARE OURCUSTOMERS’
REQUIREMENTS?
REQUIREMENTS
STRUCTURE OFDEMAND
DYNAMICS OFDEMAND
What are the specific requirements of each customer segment ?
How will customer ‘trade’ one feature of the product against another ?
How many different people are involved in the purchase decision?
Do they have different requirements?
Are there different “customer segments” which have different requirements?
What / who are they?
Are there conflicts in serving more than one group of customer segment?
How will the market grow in the future ?
WHAT DO OURCOMPETITORS
OFFER?
REQUIREMENTS
STRUCTURE OFDEMAND
DYNAMICS OFDEMAND
How well do the competitors meet customer needs?
How easy would it be for our company to copy or vice versa?
Which segments will this make the competitors strong in, or potentially strong?
How is the competitors likely to change to meet customers demand in the future?
WHAT ARE THE COMPANY’S
COSTS?
WHAT ARE OURCOMPETITORS’EQUIVALENT?
COSTS
Source : Braxton Associates, 1998
STRUCTURE
DYNAMICS
DRIVERS
STRUCTURE
DYNAMICS
DRIVERS
What different elements of costs are involved in meeting different customers needs?
What causes costs to be higher or lower ?
How costs will change in the future ?
For each elements of costs, what would be competitors costs?
What customers segments will this make competitors most competitive in ?
What will causes the competitors’ costs to be higher or lower ?
How will the competitors’ costs will change in the future?
68
References
• Capon, Noel and James M. Hulbert, “Marketing Management in the 21st Century”, Prentice Hall, 2001• Davidson, Hugh, “Even More Offensive Marketing”, Penguin Books, 1997• Hiam, Alexander and Charles D. Schewe, “The Portable MBA in Marketing”, John Wiley & Sons, Inc., 1992• Jabbar, Rahim, ““Approaches towards Segmentation, Targeting & Positioning”, 2002, (unpublished)• Business Week, 2001,” The 100 Most Valuable Global Brands”