Online consumer opinions have also gained importance as new communications

Online consumer opinions have also gained importance

This preview shows page 30 - 32 out of 53 pages.

Word of mouth, good or bad, has always influenced perceptions of brands. Online consumer opinions have also gained importance as new communications channels have emerged. Build trust with potential advocates by nurturing their recommendations and opinions. ADVOCACY STARTS CLOSE TO HOME: A brand must first build a strong base of brand supporters—people who simply love the brand and want to talk about it. If you gain the passionate support of customers and employees, their enthusiasm for the brand will spill over into words and actions. MAKE CUSTOMERS AND EMPLOYEES PART OF THE BRAND STORY: Transforming customers and employees into advocates puts them at the heart of the brand. Zappos, the online clothing and shoe retailer, has employees who are valued and empowered partners in creating and delivering the customer experience. 30
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DELIVER AN EXPERIENCE THAT GETS THEM TALKING: Creating brand advocates requires persistence and effort. Loyalty is not enough, because loyalists can be quiet and passive, like Microsoft’s customers. On the other hand, Apple’s advocates go beyond loyalty to actively promote the brand. OUTPERFORM WHERE THEY CARE THE MOST: The secret to creating advocates is to outperform for brand participants when they most need it. Understanding and solving problems is universally one of the most effective ways to create brand advocates. Lesson 8: Pricing Lesson objectives: Define price and discuss the importance of competition, costs, and consumer value perceptions in setting prices (354-361) Describe internal and external factors that have an effect on a company’s pricing decisions (361-368) Outline new product pricing strategies (368-369) Describe five product pricing situations (369-371) Describe 7 price adjustments strategies (371-376) Discuss the key changes involved in initiating and reacting to price changes (376-379) Discuss public policy and ethical considerations related to pricing (379-380) Price is the amount of money charged for a product or service. In a broader sense, price is the sum of all the values that customers give up gaining the benefits of having or using the product. It is the major factor affecting buyer choice. It is the only element in the marketing mix that produces revenue, all other represent costs. It is also the most flexible and can be changed the quickest. Prices have a direct impact on a firm’s bottom line. A small percentage improvement in price can generate a large percentage in profitability. More importantly, as a part of a company’s overall value proposition, price plays a key role in creating customer value and building customer relationships. LO1 Customer value-based pricing- setting price based on buyers’ perceptions of value rather than on sellers’ costs. Value-based pricing means that the marketer cannot design a product and marketing program and then set the price. Price is considered along with the other marketing mix variables before the marketing program is set.
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