The only way to build brand equity is to implement marketing strategies. Increasing brand awareness and creating the right brand image is crucial. Usually, marketing strategies are focused on products and pricing as well as the distribution channels.
However, the modern world of technology brought some changes to how we implement them. We can analyse these changes from two different viewpoints.
The Customer’s Viewpoint
With all information just a click away, the modern customers have a lot more insight than before. They can research the company, the products, the services, and they can quickly find out what other people think of the same brand.
Nowadays, potential customers can even research you on the go. Thanks to the mobile internet, all information is easily accessible. Furthermore, various forums and social networks allow much more information sharing. Customer reviews and general customer feedback can now influence any potential consumer.
Not to mention, modern technology also made way for customised products. Consumers can now choose products designed specifically for their taste and preference. For example, they can select unique, printed T-shirts and hoodies. What’s more, shopping has become much more convenient. Meanwhile, the customer is more informed than ever — and that should influence your marketing strategies.
The Company’s Viewpoint
Modern technology allows brands to understand their customer’s needs and desires better. Companies can now accumulate data about the habits and behaviours of their customers. That data can later be analysed, and the results can be used to better the existing marketing strategy. Nowadays, it’s more important than ever to match the offer to customer expectations.
Furthermore, marketing tactics have evolved. Companies can now reach their customers at any time by email, and they can spread brand awareness via social media and other sources. What’s more, even the way companies offer their products has changed. The traditional way of purchasing is almost dead, as internet retailing is taking over the world. That’s a blessing and a challenge, because it requires a new supply chain model as well as making adjustments in the traditional distribution channels.
As mentioned before, marketing strategies are focused on products and pricing as well as the distribution channels. However, most of the marketing efforts are devoted to securing the perfect brand image, thus ensuring strong brand equity.
With new technologies came new strategies. Experiential marketing focuses on a single customer, instead of a larger target audience. Marketing efforts are directed at specific individuals — their habits and behaviours provide insight into what kind of incentives that particular customer needs.
For example, the financial industry giant, American Express, gives out freebies, court-side seats, and many other goodies to their cardholders. You wonder why? American Express has been sponsoring the US Open tournament for decades now, so it’s really killing two marketing birds with one stone.
Huge brands like Avon and Anway also implement similar techniques. They focus on the individual, analyse their behaviours, and tailor their efforts (and offer products) to fit that particular person’s needs. Examples of experiential marketing are endless — flower deliveries around the world from Flora 2000, who targets people who are away from their loved ones on significant days, and Amazon that offers customers recommendations, to name a few. These efforts help build a positive brand image.
The Product is Still Crucial
Even though techniques are evolving, the product is still the number one factor that influences the consumer’s opinion of the brand. Crafting your marketing strategy so it highlights the benefits your brand offers and the effortlessness of acquiring the product creates a long-term relationship between the consumer and the brand. This relationship allows brands to collect information about their consumers, thus making it possible to cater to all their needs.
The brand image also depends on pricing. While forming your price, you have to think beyond the actual cost of the product. Think about how your consumers perceive your brand and how much they value it. That way, you’ll know how much they are willing to pay for it. If you have issues with the perceived value-to-money ratio, try educating your customers on the cost of production. Furthermore, competitor’s prices are also crucial.
Different Marketing Channels
You can sell products via direct and indirect marketing channels. Both ways play a significant role when it comes to building positive brand equity. Which channel you choose must depend on your product. For example, if you offer industrial products, it’s best to take the direct route. However, other factors, like customisation, price, and product category also play a part when it comes to choosing a marketing channel.