How to Maintain Brand Equity

Define what is meant by "brand equity" and discuss what a company can do to maintain brand equity 

Brand equity refers to the value a product generates for a specific company as compared to similar products. This definition indicates that companies strive to create a recognizable, memorable, reliable, and superior quality products to appeal to clients. Brand equity could be considered as an extension to brand recognition, with brand equity pointing to the added value that a brand provides (Shariq, 2018). From the description, one would establish that brand equity is a concept that captures the total value of a brand when it is sold, and when it is included in a company’s balance sheet. In the same way, brand equity could be used to refer to the measure of the extent of customers’ attachments, beliefs, and associations to a brand. A brand that appeals to and satisfies the needs of customers is considered to have higher brand equity than the one that appeals to fewer clients.

Companies operate within competitive business environments that force them to improve their brand equity continually to remain profitable. One way of enhancing brand equity is by building greater brand awareness by using a consistent logo, offering ongoing value, and providing excellent customer experience (Chatzipanagiotou et al., 2019). Moreover, companies should appeal to the customers’ social, and economic needs by communicating the brand meaning. Companies ought to demonstrate that the brand meets customers’ needs in addition to advancing social and environmental responsibility. More so companies should ensure that the products and services they offer improve the lives of their customers and, in the process, contribute to environmental conservation. Furthermore, companies must build strong bonds of loyalty with their customers by making them become a part of the company. The most effective way of achieving this objective is through online events, social media chats, and physical events.

Discuss the product life cycle concept and include the relative amounts of sales and profit during each stage 

Products pass through four stages from the time they are developed to the time that their demand decline. The product life cycle could be broken into introduction, growth, maturity, and decline, with each phase having associated costs and revenues. The concept of product life cycle informs businesses decisions on promotions, pricing, cost-cutting, and expansion. The introduction phase is where ideas are developed, tested out, and when these ideas are deemed profitable and feasible, companies produce the products or avail services (Aytun & Kiliscan, 2017). This phase requires substantial amounts of investments in marketing and advertising campaigns to create brand recognition and awareness. At this stage, the company may have negligible revenue considering that the sales are yet to pick up momentum. From here, a product gets into the growth phase, which is marked by increased demand, in turn, increased production and expanded availability to meet the rising demand. The sales and profits at this phase are substantial, considering the product has begun to penetrate the market and is competing with substitutes and similar products.

The maturity stage is the third and most profitable phase in the product life cycle. The reason for increased profitability is the fact that there is a drop in costs of production and advertising the product has penetrated the market. At this stage, companies are concerned with helping customers to differentiate the product from similar products. Aytun & Kiliscan (2017) note that this stage paves the way for other companies to emulate the product and even enhance their products to be competitive. The manufacture and sale of similar or better products by competitors mark the beginning of the fourth phase, which is a decline with the product sale volumes begins to shrink. This phase is less profitable as compared to the prior phases, considering that it loses its market share to new and improved products, which promise better results. During the fourth phase, companies are forced to go back on the drawing board and develop new products to remain competitive and profitable.

How are innovations in interactive television and online services expanding the strategies and tactics marketers employ today ?

Technological and digital innovations have revolutionized marketing and advertising strategies for companies that are keen on remaining profitable and competitive. Interactive online and television services are the hallmarks of this revolution, which allow markets to reach target clients in real-time. Interactive television, as one of the marketing platforms, allows the advertiser to reach their clients through digital satellite television, infomercials, and video-on-demand. An infomercial is one of the most prominent features in the interactive television that allows for direct-response marketing. Jain and Yadav (2017) claim that infomercials promote technologically advanced and complicated products that require more explanation. In turn, infomercials tend to encourage customers to take advantage of the deals that are on offer. Marketers who use interactive marketing understand that there has been a sharp increase in the number of individuals who watch television due to DVR technologies. In line with this realization, marketers promote customized viewing experience to ensure that viewers get advertisements that match their demographics and preferences. At the same time, interactive television promotes T-commerce since viewers can use their remotes to shop for the advertised products, thus revolutionizing marketing strategies.

Online services, just like interactive television, have extended the tactics and strategies that marketers use to reach their target audience. The emergence and development of social media and online platforms have contributed to the flouring of e-commerce. Marketers can use companies’ websites or social media for advertising their products. Perhaps the most effective approach is the use of sponsored ads that appear in webpages as the web users browse. The best thing about this approach is that marketers use users’ data to develop customized ads that resonate with their preferences ad demographics (Voorveld et al., 2018). A web user searching for shoes will have numerous adverts from companies selling shoes, which increase the chance of purchase. The marketers make ads that allow target clients to send and receive feedback necessitating for online businesses.

What are some of the personal and business-related privacy issues associated with the growth in database marketing and how should they be addressed? 

Database marketing, which is a form of direct marketing, has become a major strategy owing to the proliferation of social media and online marketing platforms. Marketers use customers' names, addresses, emails, purchase histories to create databases that they use to generate targeted lists, which they then use to send marketing communications. It is important to note that marketers collect these databases legally when the target customers fill credit application forms, product warranty cards, or even apply forms for free products. While database marketing appears effective considering that it is a targeted form of marketing riding on consumers' behaviors and demographics, it raises concerns about privacy. The main issue of concern in this type of marketing is customer privacy s they are not in a position to control the gathering, anonymity, and usage of personal data. Krafft et al. (2017) note that while data collection promotes consumers with suitable commodities, it creates various concerns. The main issue of privacy concerns, in this case, is that customers could receive junk mail, spam, or third-party service providers could access their information.

Privacy issues related to database marketing constitute a significant concern for companies considering that customers may opt for traditional purchases, which may threaten online sales. Moreover, managers are faced with ethical dilemmas as they try to balance sales with guaranteeing their customers' privacy. For this reason, businesses ought to revise their privacy policies to make them customer friendly. Companies could use "opt-in vs. opt-out," to allow customers to proactively agree to the usage or non-usage of their data (Krafft et al., 2017). Additionally, companies can assure their clients that the data they collect will only be for internal uses as opposed to sharing it with third-party providers. The best strategy to tap into database marketing is by collecting customers' purchase history as opposed to data representing their characteristics such as age or gender. To this end, companies should avoid using cookies to track the customers' search history as doing this sends a clear image that the client is being tracked.

Define direct marketing and give some real-world examples. 

Direct marketing is a form of marketing that allows firms to sell products and services to their clients without relying on intermediaries or advertising agencies. Direct marketing is characterized by marketers who pitch their sales to target clients through phone, mails, or emails. Most of the time, the marketers personalize the message by including the recipient's name to increase the chances of the targeted customer to place an order (Park et al., 2018). The most prominent feature of direct marketing is that it provides a toll-free number that encourages clients to give feedback. More so, the target customers have the option of sending feedback by sending the reply card that comes with the mail or clicks the link on the email promotion. The marketers ride on the assumption that clients who respond to any of the prompts are prospective customers, and from here, they can follow-up on the customers.

Corporations across the world engage in direct marketing to expand their target market. Land Rover, a renowned global vehicle manufacturer, sent boxes with balloons inside to customers during the opening of their Liverpool showroom. The boxes contained a marketing message as well as invites to the opening ceremony. In the same way, WVRST designed t-shirts and packaged them like sausages, which were delivered directly to bloggers, food critics, and food influencers. The firm was inviting individuals to its annual grand opening ceremony, dubbed the 'sausage party.' Nestle has not been left behind in direct marketing as at one point it sent mails that looked like postcards. The recipients of the emails exchanged the cards for Chunky chocolate bar (Blue Star Direct, 2015). These are real-world examples of how businesses and corporations worldwide reach out to customers without relying on advertising agencies. This strategy is not only cost-effective but also efficient in communicating with clients directly which improves chances for purchases.

References 

Aytun, U., Kilicaslan, Y. (2017). Product life cycle and innovativeness: The case of MENA. World Journal of Applied Economics, 3(2), 48-91. https://doi.org/10.22440/wjae.3.2.3

Blue Star Direct. (2015, October 26). 10 awesome direct marketing examples. https://www.bluestardirect.com.au/10-awesome-direct-marketing-examples/

Chatzipanagiotou, K., Christodoulides, G., & Veloutsou, C. (2019). Managing the consumer-based brand equity process: A cross-cultural perspective . International Business Review, 

28(2), 328-343. https://doi.org/10.1016/j.ibusrev.2018.10.005

Jain, E., & Yadav, A. (2017). Marketing and technology: Role of technology in modern marketing. IOSR Journal of Business and Management , 9(5), 49-53. DOI: 10.9790/487X-1905064953

Krafft, M., Arden C. M., & Verhoef, P. C. (2017). Permission Marketing and Privacy Concerns — Why Do Customers (Not) Grant Permissions? Journal of Interactive Marketing, 39, 39-54. https://doi.org/10.1016/j.intmar.2017.03.001

Park, T., Paudel, K., & Sene, S. (2018). Sales impacts of direct marketing choices: treatment effects with multinomial selectivity. European Review of Agricultural Economics , 45(3), 433–453. https://doi.org/10.1093/erae/jbx038

Shariq, M. (2018). Brand equity dimensions: A literature review. International Research Journal of Management and Commerce, 5(3), 312-330.

Voorveld, H. A. M., Noort, G., Muntinga, D. G., & Bronner, F. (2018). Engagement with social media and social media advertising: The differentiating role of platform type. Journal of Advertising, 47(1), 38-54. https://doi.org/10.1080/00913367.2017.1405754