Brand Management

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I. One-to-One Marketing.

- The basic rationale is that consumers help add value by providing


information to marketers; marketers add value, in turn, by taking that
information and generating rewarding experiences for consumers. The firm is
then able to create switching costs, reduce transaction costs, and maximize utility
for consumers, all of which help build strong, profitable relationships.
- One-to-one marketing is thus based on several fundamental strategies:
• Focus on individual consumers through consumer databases—“We single out
consumers.”
• Respond to consumer dialogue via interactivity—“The consumer talks to us.”
• Customize products and services—“We make something unique for him or her.
- Another tenet of one-to-one marketing is treating different consumers
differently because of their different needs, and their different current and future
value to the firm
For example:
1. Users love to create personal playlists on Spotify making sure to derive the best
overall experience with the app. In turn, Spotify also creates a Discover Weekly
playlist that is tailored to the user’s specific taste in music. This is appreciated by
users as they get the opportunity to discover new music without steering away in
uncharted territory.
2. These campaigns rely on customers to self-select into segments. After
marketers have the information, they can use it to create personalized messaging
and serve ads that are most relevant to them. Coca-Cola’s “Share a Coke”
campaign delivered a very effective personalization campaign. They put people’s
names on their cans and bottle labels. That’s personalization.
3. Amazon.com is known for perhaps the most successful 1:1 personalization
strategy, recommending products based on past purchases and interests.
Amazon for example, are very adept at using these types of marketing concepts
to market products. The company does this by tracking what customers have
looked at and what they have purchased, then displays products based on that
past history.
The chart below shows annual book sales in billions for the two biggest retail
store chains (Barnes & Noble and Borders) and the biggest online book retailer,
Amazon.
In 2002, the stores combined for about $7 billion in book sales, compared to
Amazon’s less than $2 billion. By 2007, however, Amazon’s 1:1 marketing
approach and the ease of using its site propelled it to even with Barnes & Noble
and well ahead of Borders. In 2010, Amazon’s $6.8 billion in books sales was
more than Barnes & Noble and Borders combined.

II. Permission Marketing.


- Permission marketing, the practice of marketing to consumers only after
gaining their express permission, was another influential perspective on how
companies can break through the clutter and build customer loyalty.
- Given the large number of marketing communications that bombard
consumers every day, Godin argues that if marketers want to attract a
consumer’s attention, they first need to get his or her permission with some kind
of inducement—a free sample, a sales promotion or discount, a contest, and so
on.
- By eliciting consumer cooperation in this manner, marketers might develop
stronger relationships with consumers so that they desire to receive further
communications in the future. Those relationships will only develop, however, if
marketers respect consumers’ wishes, and if consumers express a willingness to
become more involved with the brand.
- Godin identifies five steps to effective permission marketing:
1. Offer the prospect an incentive to volunteer.
2. Offer the interested prospect a curriculum over time, teaching the consumer
about the product or service being marketed.
3. Reinforce the incentive to guarantee that the prospect maintains his or her
permission.
4. Offer additional incentives to get more permission from the consumer.
5. Over time, leverage the permission to change consumer behavior toward
profits.
- Permission marketing is a way of developing the “consumer dialogue”
component of oneto-one marketing in more detail.
 Thus, marketers must recognize that consumers may need to be given
guidance and assistance in forming and conveying their preferences.
Examples of Permission Marketing
- Some companies that use permission marketing:
1. A great example of the use of permission marketing as a marketing strategy is
Starbucks. Starbucks uses permission marketing in its rewards program by
getting customers to opt into the program by signing up online or registering
through their app. Some perks of the rewards card are free drink and coffee
refills; online ordering; earning free drinks and food items; and a free item on the
customer's birthday. This program has been advantageous for the organization
as it has built brand loyalty by keeping customers actively engaged in earning
stars. These stars convert into points when they make a purchase that can be
redeemed for free items later.
2. Fashion Nova specializes in selling clothing and other apparel and has a large
online presence in addition to its retail clothing stores. The clothing giant has
taken advantage of permission marketing as a strategy. It uses both email
marketing and text clubs to share information about current sales and discounts
with its customers.
3. Online retailer Amazon uses database software to track its customers'
purchase habits and send them personalized marketing messages.
Customers can receive more detailed information after each purchase. Amazon
also sends periodic e-mails to customers informing them of new products, special
offers, and sales.
→ Marketers must recognize that consumers may need to be given guidance and
assistance in forming and conveying their preferences.

III. Reconciling the Different Marketing Approaches


- Mass customization and one-to-one and permission marketing are all
potentially effective means of getting consumers more actively engaged with a
brand.
 Eliciting positive brand responses and creating brand resonance to build
customerbased brand equity.
One implication of these new approaches is that the traditional “marketing mix”
concept and the notion of the “4 Ps” of marketing—product, price, place (or
distribution), and promotion (or marketing communications)—may not fully
describe modern marketing programs, or the many activities, such as loyalty
programs or pop-up stores, that may not necessarily fit neatly into one of those
designations.
 Firms must still devise product, pricing, and distribution strategies as part of
their marketing programs.

Question :
1. The practice of marketing to consumers only after gaining their express
permission. That is?
A. Permission marketing
B. One-to-One Marketing
C. Experiential marketing
D. Mass customization
2. Consumers help add value by providing information to marketers;
marketers add value, in turn, by taking that information and generating
rewarding experiences for customers. That is?
A. Permission marketing
B. One-to-One Marketing
C. Experiential marketing
D. Mass customization
3. Customize products and services
A. One to one marketing
B. Cause marketing
C. Standardized marketing
D. Relationship marketing
4. It is an approach of selling goods and services in which a prospect explicitly
agrees in advance to receive marketing information
A. Green marketing
B. Cause marketing
C. Relationship marketing
D. Permission marketing
5. In this marketing, the privilege (not the right) of delivering anticipated,
personal and relevant messages is only to those people who actually want
them.
A. relationship marketing
B. permission marketing
C. experiential marketing
D. one to one marketing
6. Three concepts helpful with relationship marketing are:
A. Relationship marketing, One-to-One Marketing, Experiential marketing
B. One-to-One Marketing, Experiential marketing, Permission marketing
C. Relationship marketing, Experiential marketing, Mass customization
D. One-to-One marketing, Permission marketing, Mass customization

7. According to Godin how many steps to effective permission marketing?


A. 3
B. 4
C. 5
D. 6

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