Brand Equity And The Market Mix Marketing Essay

Brand Equity And The Market Mix merc flockise EssayIntroductionMarketers rack their brains to compose the variable ingredients to construct their stunning recipesconceptual frameworks, which argon do up of the merchandising flux, in an crusade to slope the differentiated merchandises or attend tos that can outshine their competitors.Currently fewer companies could afford to frozen aside the merchandising liquefy and audaciously get into into the market. Having a birds eye view of those prominent companies evolutionary histories , namely coca plant Cola, Nike, Fuji, and Virgin, their iconic put ups, one of their success indicators, work hand in hand with creative and effective execution of the merchandising sashay.The Marketing MixMcCarthy (1960, pp.7-8) depression put forward classification of four basic ingredients product, place, expense and promotion. With the betterment of time, dimensions of the merchandising admixture have been substantiateing, as ideas of pe rsonnel promotions, storage facilities, expose and so forth have been presented successively (Lipson and Darling, 1971p.17 Borden, 1975pp.72-75). The Four Ps of the marketing mix have been prostrated as the cornerstone or convincing figure in the business practice, convey to their well-known validity (Grnroos , 1989 pp.52-60, Grnroos,1994 p.5).However, over soaking up with the marketing mix would possibly isolate marketers from guests owing to its dependence on mass marketing ,which indicates that clients are the superficial numbers for the marketers and marketers may slacken touch with the real customers(Grnroos,1994 p.4). Further more, acting as the simplified remedy for the marketing problem, the marketing mix paradigm learns the seller occupy the dominant ad effective and the buyer inferior standing, which can hardly apply to the marketing of armed service (Grnroos, 1994 p.6). The burgeoning service industry gave birth to the human relationship marketing (Gummesson, 19 91 pp.60-67). Establishment and tip of promise play a pivotal role in the relationship marketing, which nurtures the quality interaction between marketer and customer (Reichheld et al., 1990 pp. 105-111).Despite these drawbacks of the marketing mix, the effective orchestration of its elements is proven to be applicable to attain the set objectives under many circumstances. (Baker, 2007p.329). The aim of this essay is to elaborate on the function the marketing mix makes to an organizations defect fairness through in-depth analysis of the big paragon, Yum Brands, chinaware Division.Brand EquityAaker(1991,1996p.103) once indicated that connotation of disfigurement justness is multifaceted, which consists of note loyalty, stigmatize awareness, perceived quality, gull associations and other proprietary scratch assets. The name of product is deeply imprinted with the value conferred by the brand impartiality (Yoo et al., 2000p.197). Thus, the brand enjoying relatively high br and candour more belike wins customers positive and strong association (Yoo et al., 2000p.196).In terms of the functionality of brand equity, it enriches brand alternatives, call forths the preference to pay the premium prices, intensifies the marketing communication effectiveness as well as the brand licensing opportunities and strengthens capabilities towards the marketing competition and price magnetic variation (Keller, 1993pp.4-8 Simon and Sullivan, 1993pp.28-37 Smith, 1992pp.13-16 Yoo et al., 2000p.196). An unparalleled brand, as the intangible asset, consists of such features as name, design, symbol which indentifies the product of a particular organisation that has a lasting differential favor (Doyle, 1999p.292).At the first mention of fast regimen, Chinese muckle would in a flash shortlist a bundle of names with KFC topping on their lists, cod to its immense brand power. According to the ranking of 50 Best Chinese Quick-Service Companies in 2009, Yum Brands, china ware Division with the annual profits of 2.88b and strong impetus of expanding its business empire in Chinas second and third tier cities, stand out another tycoon McDonalds, ranked the first, thanks to its two household brands, KFC and pizza pie shack (Anonymous, 2010). In compliance with Yum Brands world(prenominal) vision to define global company that feeds the world, Yum Brands, China Division is also committed to creating traditional Chinese quick-service restaurant chain, East Dawning, which is targeted specially at those diehards of traditional Chinese regimen (Novak, 2009) .Furthermore, China Division became one of the stakeholders of Little Sheep, a popular Chinese hot pot concept, with 27% proportion of share in 2009 (Novak,2009).The above efforts imply China Divisions ambition to develop diversified customer bases and make it elastic towards its competitors challenges. In 2009, the four brands synergistically contri entirelyes to its operating profits growth of 25% in China (Anonymous, 2009).What underpins their astounding performances is its China Divisions superb mastery of the marketing mix.Brand Equity and the Marketing MixAccording to Yoo et al. (2000p.196), if marketing effort could give rise to more favourable behaviour towards the branded products than the unbranded ones, positive relationship between marketing effort and brand equity would be established. Yoo et al. (2000p.198) also suggest that creation and exploitation of the marketing mix is decisive in shaping dimensions of brand equity. For instance, YumBrands China Division success fully introduced the casual dining category pizza hutch and KFC Home Service, devising its products available around the clock whe neer customer places an order(Anonymous,2008). such intense distribution enables consumers to perceive more value for the two brands, subsequently resulting in the counterchange magnitude customer satisfaction and brand loyalty (Yoo et al., 2000p.199).Given that the marketing mix encompasses many elements, this essay primarily selects four perspectives product, price, servicescapes, promotion tactics to argue the intertwining relationship between application of the marketing mix and formation of brand equity.ProductHenry Ford (1908) once commented A market is never complete(a) with a good product, but it is very quickly saturated with a bad one. (Anonymous, 2006). Instead of technically importing its international fare and faithfully sticking to its cash cows such as sensitive Orleans Roasted Burgers, Extra-tasty Crispy Burgers, Popcorn Chicken, and Pepperoni Lover, China Division has made considerable adaptation and innovation on its menu to cater to Chinese peoples tastes and flavour. Some specialties that could never appear on other countries KFC menus are cream of tartar Twister, and Beef Wrap with the Sichuan Sauce to name just a few(Anonynmous,2007). Additionally, the freshness and nutrients of the food are under the stringent super vision (Anonymous, 2010). From KFCs official website, customer can be informed of products precise composition of nutrition (Anonymous, 2009). Therefore, products are procured in a transparent manner, winning trust and loyalty from customers and generating recur buyers.Besides, its menu changes with the alteration of seasons and emergence of events and holidays. pizza shanty Casual eat Restaurant late put forward 22 new courses forwards the upcoming autumn (Anonymous, 2010). This summer, KFC witnessed enormous profits made by its application of watching World Cup and winning prizes through purchasing the bucket (Anonymous, 2010). In addition to its constant development of tangible products, Pizza Hut puts out a unique and added-value service, party-hosting. It would be in charge of preparing a theme party from the scratch, including designing and organizing (Anonymous, 2008).This move vindicates Millers et al. view (1998pp.19-25) that shopping should not be considered as a me re product acquisition but a part of genial relationship which provides their social identity. Guanxi or social networking plays an important role in Chinese society (Eric Tsang, 1998p.64). Party subroutine is an ideal opportunity to accommodate such need. Pizza Huts enticing service could spare people from worrying about the trivialities of throwing party and promote its products and brand value in the meantime. All moves carried out by Chinese persona perfectly coincide with Yum Brands philosophy-feed the world, both physically and mentally.PriceYoo et al. (2000p.200) once commented that price promotion in the form of special sales, media-distributed coupons, package coupons, and rebates would undermine brand equity in spite of the short-term returns. Subsequently, sales promotion could be soft emulated by the competitors (Aaker, 1991). Worse still, an inferior brand image could be displayed through the sales promotion (Yoo et al., 2000p.200). However, KFC, Pizza Hut and East D awnings determine strategies just run counter to the above theories. Every day, over trinity kinds of KFC food are on sale and coupons can be easily downloaded from its official website (Anonymous, 2008). As for Pizza Hut Casual eat Restaurant, it recently put forward business set meal of 2.8 to attract those occasion workers with limited coffee break and keen on the balanced diet(Anonymous,2010). Such deed has now been tenderly received by the target customers.The conclude behind their consistent low pricing system rightly conforms to the place quo of Chinese fast food industry where consumers are price-sensitive and major manipulation segment is student and young people with finite disposable cash (Anderson et al., 1998pp.152-162).The theory proposed by Avlonitis (1980) appropriately backs up Yums pricing strategy that selling convenience goods should employ heavy advertising and agonistic pricing indemnity to achieve product differentiation. As a consequence, one of the effective shipway to appeal to Chinese people who are bombarded with hundreds of fast food alternatives is the competitive pricing strategy. Simon H. (1989p.319) pointed out that sale effect of a price change shows up more quickly compared with other tactics, namely advertising. KFC and Pizza Hut have already benefited from this strategy and cultivated their respective regular customer base, as KFC targets at the mass consumers and Pizza Hut Casual Dining Restaurant is positioned as the refined business dining restaurant (Anonymous, 2008). Their vary price ranges are set accordingly, making China Division more flexible to the pricing competition.ServicecapesServicescapes refer to the physical lays of the point of sale, which involve three dimensions ambient conditions, spatial layout and functionality and signs, symbols, and artefacts (Bitner, 1992 pp.66-67). These would influence not only the first icon on customers but also employee satisfaction, productivity and motivati on (Becker, 1981).KFC, Pizza Hut and East Dawning spare no effort to do the furnishing at their own points of sale in accordance with their respective bands images. As for KFC, warm bright yellow and red intrigue the customers appetite and lower personalise counter intends to make employees intimately interact with children (Cai, 1998). As to Pizza Hut, sophisticated oil paintings and sedate brown tables and wallpaper make customer face serene in the cities forests of concrete(Cai, 1998). The consumer would be embraced with soft Chinese music and traditional Chinese table sets at East Dawning (Cai, 1998).Such highly determine decoration vividly exemplifies three different brands focuses. It would be no ramp to see the heavy customer traffic in those restaurants (Yoo et al., 2000 p.199). Good-image stores do need more attention, contacts and visits from the prospective customers. Furthermore, positive word -of-mouth propaganda can come into be (Rao and Monroe, 1989pp.351-356). Promotion TacticsAdvertising spending accounts for substantial investment for KFC and Pizza Hut, as the money channelled for advertising exerts positive continue on brand equity and perspectives (Cobb-Walgren et al., 1995). Besides, advertising would be conducive to generating favourable impression on brand equity, increasing brand awareness and creating strong brand associations (Shimp, 1997pp.25-35). Although people would feel annoyed by interruption of commercials of KFCs bucket and Pizza Huts topnotch Supreme when appreciating films, the intensely repetitive advertising would make KFC or Pizza Hut automatically top on their personal fast food alternatives when they are starved(Anonymous,2008). Subsequently, such habitual choice could elevate their brand equity (Hauser and Werfeldt, 1990pp.398-404).Besides advertising, KFC is also adept at making the most of sponsorship to enhance its brand equity, such as organizing national three-player basketball contest in conjunction with Chinese Basketball Association (Anonymous, 2004 ),which vividly showcases its dynamic brand image, and working in partnership with 2010 Shanghai World Exposition, (Wuyu,2009). Its old adversary McDonalds has never made foray in such field. However, the sponsorship does make a difference. For example, Fuji committed$7 million in sponsoring the 1984 Los Angeles Olympic Games, which just received refusal of sponsorship from Kodak (Desmond, 1997). According to Desmond (27 October, 1997), Fuji landed 50,000 new distributor outlets thanks to its sponsorship. Such marketing investment generated the enviable returns (Desmond, 1997). It is difficult to make accurate estimation on KFC economic returns from its sponsorship, but elevated social impact and subsequent enhanced brand value could be figured out. Additionally, China Division has been identified as the corporate with distinct social debt instrument through doing Hunger Relief Programme with Chinese Children Fund and setting up fund for supporting the natural disaster relief and the financially-challenged students to throw out education (Anonymous, 2006). All these contribute to reputable brand image of Yum Brands China Division.DiscussionBesides the above classical 4Ps, other elements of the marketing mix such as packaging and personal selling jointly nourish China Divisions brand marvel. The package as the forefront of brand strategy would communicate the value of convenience, environmental consciousness,ConclusionRelationships between the selected the marketing mix and brand equity have been excavated in this essay. Particular attention has been cadaverous to four aspects of marketing efforts made by Yum Brands China Division. The establishment and enrichment of brand equity is achieved by thorough execution of the marketing mix. It is through fully capitalizing on the variable parts of marketing strategy accompanied with the consumption and exploitation of brand resources that brand owner can probably concord the acid test and enjoy the everlasting prosperity.