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    Awareness The ability to recognize/recall the identity

    of a product/brand within the given product

    category

    Recall Recognition

    Interesting ads double the recall, increase

    the recognition

    Creative ads (rather than size of ad) help

    create perceptions and help recall

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    Consumer Attitude towards a

    ProductLike or not

    Yes No

    Yes Neutral No

    7 point scale

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    Consumer Attitudes

    Learned predispositions to respond toward an objectan individuals overall feelings toward or evaluation ofan object.

    Consumers may hold attitudes toward:

    Individuals Brands

    Companies

    Organizations

    Product categories Retailers

    Advertisements

    Media

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    Understanding Attitude

    Attitude Structure 3 components Learn - Cognitive (awareness, comprehension, knowledge)

    Feel - Affective (evaluation, liking, preference)

    Do - Conative (possibility of action e.g. trial, purchase)

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    Attitude -Advertising Objective

    Negative

    Attitude

    Positive

    AttitudeNeutralAttitude

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    Benefit Based Attitudes

    Formation / Change

    Central Route

    Motivation

    &

    Ability to process

    information

    Peripheral Route

    No motivation

    &

    No ability to process

    information

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    Attitude ResearchDirect Overall Measures to know the overall market

    attitude to the brand

    Questioning or observation of behavior No specific attribute criterion is mentioned

    Yield no diagnostic information

    Derived measures to know the reasons for the attitude

    Overall attitude is derived from responses to attributes Attitude models are based on these

    Provides useful diagnostic information

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    Attitude in Advertising

    Attitude Segmentation

    Segmentation specific to the above mentioned objectives

    Segment on the basis of - Attribute importance and

    weightage

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    The Importance of Attributes

    Attributes explains the Attitude composition

    the cause of brands strengths / weaknesses

    Attributes are important in a choice situation

    Important attributes (set) category attributes that

    satisfy needs & wants

    Determinant attributes the brand choice attribute

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    Study of AttributesThe Study of Attributes is at 2 levels

    Physical and pseudo-physical characteristics / benefits

    Means-end chain model:

    product attributes consumer consequences personal

    values

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    Applications of Values to

    Consumer Behavior

    Applications of Values to

    Consumer Behavior

    Research has tended to classify values asbeing:

    Cultural such as security or happiness,

    Consumption-specific such as convenientshopping or prompt service,

    Product-specific such as ease of use or durability.

    The Rokeach Value Survey identified:Terminal Values - desired end-states that apply to

    many cultures,

    Instrumental Values - composed of actions needed

    to achieve these terminal values.

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    Applications of Values to

    Consumer Behavior

    Applications of Values to

    Consumer Behavior

    Means-End Chain Model

    Message

    Elements

    Consumer

    BenefitExecutional

    Framework

    Leverage

    Point

    Driving

    Force

    List of Values (LOV)Identifies Nine Consumer Segments Based on Values They Endorse

    Syndicated Surveys - VALS 2http://future.sri.com/VALS/VALSindex.shtml

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    Means-End Chain ModelMeans-End Chain Model

    Suggests that consumers define product attributesin personal, subjective terms What does this

    attribute do for me? In other words, consumers see a product attribute

    as a means to some end, which could be aconsequence or a value.

    That is, consumers create knowledge structures oflinked meanings that connect tangible product attributesto more abstract attributes and consequences, which inturn are associated with more subjective, self-relevantvalues and goals.

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    Means-End Chain ModelMeans-End Chain Model

    Attributes Consequences Values

    Concrete AbstractAbstract FunctionalFunctional PsychosocialPsychosocial InstrumentalInstrumental TerminalTerminal

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    Example of Means-End Chain Model

    Hair

    SprayPump

    Dispenser

    Concrete AbstractAbstract FunctionalFunctional PsychosocialPsychosocial InstrumentalInstrumental TerminalTerminal

    Hair Not

    Sticky

    Feel More

    Attractive

    Impress

    Others

    Self

    Esteem

    Light

    Mist

    Mouth

    Wash

    Fluoride Avoid

    Bad Breath

    Feel Confident

    In Social Situation

    Perform

    Better

    Social

    Recognition

    (Product class level)

    (Brand level)

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    Multi-Attribute Attitude ModelAttitudes are a function of:

    A = Bi X wi

    A = Attitude

    wi = Importance attached to attribute i

    Bi = Beliefs about brands performance on attribute i

    N = Number of salient attributes considered by theconsumer

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    Eg Multi-Attribute Attitude

    ModelFord Escort Space (S), KPL (K), Price

    (P)

    Attribute Weightage Score

    Space 2 2

    KPL 5 1

    Price 3 1

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    Study of the Brands Attributes

    Important set of attributes by which brands are

    perceived & evaluated

    Identify the important attribute (list)

    Determine importance weightage of eachAttribute

    Identify Determinant & Leverage Attributes

    these have greatest impact on attitude structure

    and are purchase /choice driversEvaluative beliefs about the Brands level of

    attributes and benefits

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    Attribute ResearchDerived Multi-attribute Measures

    Ranking & Ratingindicates

    importance of attributesbut does not

    give insights into the trade off customers

    make - the importance weightage

    Conjoint analysis derives theimportance weights of attributes and

    attribute levels

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    Evaluative belief model

    Effect of Beliefs on Attitude

    importance weight of Attribute

    Attitude = +

    Evaluative beliefs about theBrands attribute scores

    The importance weightage of attributes, combineswith the individuals beliefs about the extent towhich the brand has these attributes, which createsbrand attitude

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    Integration Processes & Decision Rules

    Types of decision making rules:

    Heuristics simple rule of thumb rules that are easy touse and apply

    Buy least expensive brand

    Buy brand on sale or for which I have a coupon

    Affect referral rule make decision on basis of overall

    affective impression or feelings about the brand

    Compensatory rules evaluate the strengths and

    weaknesses of each brand

    Integration processes are the way product knowledge,meaning, and beliefs are combined to evaluate alternatives

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    Ways to Influence or Change

    Attitudes (Message Strategy)Compensatory Model

    Increase or change the strength or beliefrating of abrand on an important attribute

    Change consumers perceptions of the importance orvalue of an attribute

    Add a new attribute to the attitude formation process

    Change perceptions of belief ratings for a competing

    brand

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    Ways to Influence or Change Attitudes(Message Strategy)

    Non-compensatory models - low involvement products Conjunctive model (acceptable standard rating on all

    attributes) advertising must mention all important attributes

    Disjunctive model (one or more attributes rated high)

    advertising must prominently display those attributes that itscores high

    Lexicographic model (evaluation on the most salientbenefit) salient attribute should be highlighted

    Non-compensatory models are often used inconjunction with Compensatory models

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    Category Evaluation Model (MessageStrategy)

    The established attitude to the category can berecalled and applied to the new stimulus thatis placed in the category

    category attitudes is applied to the object withoutexplicitly mentioning them

    Advertising based on this model - Positions the object with respect to the category

    prototype /exemplar

    Attributes are not explicitly specified

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    Segmentation Based on

    Attitude StructureFor advertising campaigns and marketing

    strategy Segmentation Analysis can be done

    on 2 central constructs of the Attitude Model Evaluative beliefs

    Importance weights

    Consumers can be classified by these criteria

    Benefit segments

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    Advertising and

    Attitude Formation / Change

    Central Route

    Motivation

    &

    Ability to process

    information

    Peripheral Route

    No motivation

    &

    No ability to process

    information

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    Consumers Feelinginfluences

    attitude / behavior Affective Response - Emotive bonding

    Feeling ads - execution focused - little or no

    information

    Some of the feelings can lead to brand imagery

    & personality

    Symbolic & cultural meaning of the brand canbe affected

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    Consumers Feelings Informative ads can also develop emotional

    (affective) response

    Feeling ads also have a cognitive

    (knowledge) element

    Good ads have both an emotional and a

    rational appeal

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    When are Feelings Important?

    When consumers do not have deeply

    considered attitudes towards the brand.

    In low involvement situations / categories Mature brands - when there is little or no new

    information to be conveyed

    In socially conspicuous high involvement

    categories

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    FCB Model

    Involvement

    Thinking- Feeling

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    FCB Model

    THINKING FEELING

    Involvement

    H

    I

    G

    H

    INFORMATIVE (thinker)

    Car, House, Furnishing, New Products

    Model:- Learn - Feel Do (Rational)

    Test :- Recall Diagnostics

    Media:- Long Copy Format, Reflective Vehicles

    Creative:- Specific Information, Demonstration

    L

    O

    W

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    FCB ModelTHINKING FEELING

    Involvement

    H

    I

    G

    H

    AFFECTIVE (feeler)

    Jewellery, Cosmetics, Designer Clothing

    Model:- Feel Learn Do (Emotional)

    Test :- Attitude Change, Emotional

    ArousalMedia:- Large Space, Image Specials

    Creative:- Executional Impact

    L

    O

    W

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    FCB ModelTHINKING FEELING

    Involvement

    H

    I

    G

    H

    L

    O

    W

    HABIT FORMATION (doer)

    Food, Household items

    Model:- Do - Learn Feel (Responsive)

    Test :- SalesMedia:- Small Space Ads, 10 sec spots, Radio,

    POP

    Creative:- Reminder

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    FCB Model

    THINKING FEELING

    Involvement

    H

    I

    G

    H

    L

    O

    W

    SELF-SATISFACTION (reactor)

    Cigarettes, Liquor, Candy

    Model:- Do Feel Learn (Social)

    Test :- SalesMedia:- Billboards, Newspapers, POP

    Creative:- Attention

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    FCB ModelTHINKING FEELING

    Involvement

    H

    IG

    H

    INFORMATIVE (thinker)

    Car, House, Furnishing, New ProductsModel:- Learn Feel Do

    (Rational)

    Test :- Recall Diagnostics

    Media:- Long Copy Format, Reflective Vehicles

    Creative:- Specific Information, Demonstration

    AFFECTIVE (feeler)

    Jewellery, Cosmetics,

    Designer ClothingModel:- Feel Learn Do

    (Emotional)

    Test :- Attitude Change,

    Emotional Arousal

    Media:- Large Space,

    Image SpecialsCreative:- Executional

    Impact

    LO

    W

    HABIT FORMATION (doer)Food, Household items

    Model:- Do Learn Feel

    (Responsive)

    Test :- Sales

    Media:- Small Space Ads, 10 sec spots, radio,

    POP-

    SELF-SATISFACTION

    (reactor)Cigarettes, Liquor, Candy

    Model:- Do Feel Learn

    (Social)

    Test :- Sales

    Media:- Billboards,

    Newspapers, POP-

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    Rossiter Percy Grid

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    Model of Feeling Response to Advertising

    Ad evokedAffective

    Response

    Decreases

    Thinking

    Raises ratio of +ve

    to -ve Thoughts

    IncreasesBrand

    Attitude

    Raises

    Attribute

    Valuation

    Transforms

    Use Experience

    Increases Valuation of

    Ad characteristics

    Increases

    Attitudeto Ad

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    Model of Feeling Response to Advertising

    EmotionalResponse

    due to Ad

    Decreases

    Thinking

    Raises ratio of +ve

    to -ve Thoughts

    IncreasesBrand

    Attitude

    Raises

    Attribute

    Valuation

    Transforms

    Use Experience

    Increases Valuation of

    Ad characteristics

    Increases

    Attitudeto Ad

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    Feelings Influence Brand Attitude

    Positive mood Warm feelings puts people in apositive moodto

    build Brand Attitude

    Positive feelings increases positive thoughts Increases the ratio of SA : CA

    Brand attributes are evaluated more positively

    Total number of thoughts decrease

    Attitude is formed on peripheral cues rather thancentral

    Increases Likeability' by reducing thinking

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    Feelings Influence Attitude

    - Transforms the Use Experience

    Feelings can transform the use experience

    By showing positive Use Experience & Users

    the brand experience is transformedto matchthe one shown in the Ad.

    Makes the brand experience richer and more

    enjoyable

    through recall of past experience associated with

    similar feelings

    Creates new brand beliefs - Transformational Advtg

    Influences perceptions about quality of product

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    Transformational Advertising

    Association ProcessInvolves 2 types of associations

    1. Association of feelings with the use

    experience

    2. The association between the brand and the use

    experience / user

    This is done through drama advertising a story with use

    experience action, music etc.

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    Feelings Influence Attitude

    - Transforms theU

    se ExperienceConditions necessary forTransformational Advtg

    The Ad must ring true empathetic, meaningful

    Feelings must be connected tightly with the brand Associations must be created and maintained through

    heavy repetition

    The same association must be sustained through time

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    Requirements for

    Successful Transformational Advertising Adequate budget requires heavy repetition

    (frequency) and reinforcement to build

    associations Consistency the ad must be cohesive,

    supporting the same associations

    Links with the brand must be tight so thatone cannot be recalled without the other make the brand the hero of the story

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    Feelings Influence Attitude

    Attitude towards the Ad

    3. Feelings can create a positive attitude towards the Ad. Affective directly through peripheral mechanisms

    Cognitive indirectly through evaluation of ad characteristics

    A positive attitude to the ad gets transferred to brand & brand

    attributes. Negative attitude to ad may not be transferred to the brand

    because of Attitudes are not deeply formed before the purchase

    sleeper effect

    Positive ad attitude is particularly important when the productis new

    Also important in low involvement categories

    A positive attitude towards the Ad improves Recall, but so dodisliked ads

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    Association Process

    Classical Conditioning

    Classical Conditioning - Ad evoked feelings

    are associated with the brand through repetition

    The link between the brand (US Unconditioned

    Stimulus) with the commercial (CS Conditioned

    Response) must not be broken

    The strength of the association will depend on the

    amount of repetition

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    What Affects Intensity of Feeling

    Believability / realism - suspend disbelief Ring

    true (even if it is not literally true)

    Gain empathy with similar characters as thetarget audience in familiar situations /

    experience

    Use drama form of advertising - rather than lecture

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    Humour

    Gets attention Creates likeability

    May become irritating with repetition

    The key message may be lost May upset some

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    Fear

    Creates emotional response & cognitiveawareness of problem

    An optimal level of fear is necessary

    A solution must be provided

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    Other feelings

    Sadness

    Confidence

    Elegance

    Serenity

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    Advertising and

    Attitude Formation / Change

    Central Route

    Motivation

    &

    Ability to process

    information

    Peripheral Route

    No motivation

    &

    No ability to process

    information

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    Positioning

    It gives the consumer a clear idea

    of what the Brand stands for

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    The Positioning Process

    Positioning ConceptThe desired perception orassociation management wantstarget customers to have for afirm and/or its products

    Positioning EffectivenessThe extent to which managementspositioning objectives are achievedin the market target

    Positioning StrategyThe combination of marketingactions used to portray thepositioning concept to targetedbuyers

    Positioning of the brandThe positioning of the brand bythe buyers in the market target

    Market

    Target

    P iti i St t D l t

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    Positioning Strategy Development

    Process - Background Analysis1. Identify the competitors

    2. Assess perceptions of competitors

    3. Determine their positions

    4. Analyze consumer preferences

    6. Monitor the position

    5. Make the positioning decision

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    Product/Service and Brand

    Positioning

    Al Ries , Jack Trout - BASIC QUESTIONS TO ASK

    1. What position, (if any) do we currently hold in the mind ofcustomers?

    2. What position do we want to hold?

    3. Whom do we have to compete against to establish this position?

    4. Do we have the resources to occupy and hold the position?

    5. Can we stay with one consistent positioning strategy?

    6. Does our marketing and advertising match our positioning strategy?

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    Positioning Strategy Approaches

    Product/Service or Brands can be positioned by single

    or multiple approaches:

    Product attributes or consumer benefit

    Price-quality

    Use or application

    Users

    Product class

    Cultural symbols

    Competitors

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    Positioning Strategy Execution

    A relative concept that must indicate the

    position of the brand vis-a-vis other brands -

    differentiation

    It determines the nature of the elements of the

    marketing mix

    Best communicated through Advertising

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    Product Decisions

    Aproductproductis a bundle of benefits or valuesthat satisfies the needs of consumers

    Product symbolism refers to what a product orbrand means to customers

    Product quality, branding, packaging, andcompany name contribute to product image

    Branding: Brand name communicates attributes and meaning Advertising creates and maintains brand equity which

    results from the image and/or impression of a brand

    Th V l f S C d /

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    The Value of Strong Corporate and /or

    Brand Identity

    Strong corporate/brand equity:

    Creates more options for competing (particularly againstlower-priced competitors)

    Can facilitate brand and line extensions Allows companies to sell products/services at a premium

    price and maintain larger profit margins

    Builds customer loyalty

    Makes it easier to withstand economic fluctuations andmarketing crises

    Makes customer response more inelastic to price increasesand elastic to price decreases

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    B d E i

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    Brand Equity

    A set of assets linked to the Brands name and

    symbols that adds to the value provided by a

    product or service to a firm and customer

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    BrandEquityAvailability

    Preference

    yalty

    Awareness

    a iliarity

    I age &Pers nality

    Ass ciati ns

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    Brand

    Awareness

    Perceived

    Quality

    Brand

    Association

    Brand

    Loyalty

    Brand Equity

    Structure

    Brand name and Symbols

    Other proprietary

    Brand assets

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    Brand

    Equity

    Loyalty

    Awareness

    Perceived

    Quality

    Associations

    ProprietaryBrand Assets

    Enhances

    Customers

    InterpretationConfidence

    Use Satisfaction

    Enhances the

    firms

    Marketing

    efficiency &

    effectiveness

    Brand loyaltyPrices/Margins

    Trade Leverage

    Competitive Adv

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    PriceC K l d b B d

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    Recognitionand Recall

    Type of brand

    associations

    Favourability

    Association

    Attributes

    Benefits

    Attitudes

    Prod related

    Non-prod

    related

    Functional

    Experiential

    Symbolic

    Uniqueness of

    Association

    Strength of

    Association

    Brand

    Knowledge

    Brand

    Image

    Brand

    awareness

    Price

    Packaging

    User imagery

    Usage imagery

    Consumer Knowledge about a Brand

    Kevin Keller

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    Brand Personality

    What it implies

    Why it matters

    When it is more important

    How to create / enhance it

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    Brand Personality Implies

    Brand Personality goes beyond attributes and feelings andincludes the final consequences -

    Associated values

    Relationshipbetween brand & consumer Brand affinity (as comfortable as an old friend)

    OR

    Brand alienation (a liability)

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    Brand Personality Implies

    BP is described in terms of Demographics, and more importantly

    Personality traits, attitudes, lifestyle Extrovertedness

    Agreeableness

    Conscientiousness

    Emotional stability

    Culture

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    Why Brand Personality Matters

    To the Organisation it is important as

    It differentiates the brand from the competition in a

    unique and pre-emptible manner

    Brand Personality enables customers to make theirbrand choice and stay loyal

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    Why Brand Personality Matters

    For consumers

    It provides a self-defining perspective:

    identifies brands that match their self-concept

    defines the groups they belong to and do not

    belong to

    It enables

    Interpretation and processing of information

    Confidence in the purchase decision

    Use satisfaction

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    Brand Personality Entails.

    Desired Personality is associated with the Brand through endorsers

    type of users

    life-styles

    characters Amul Moppet, Air India Maharaja

    Symbols coconut, umbrella

    Ad execution elements music, colours, fonts etc

    Personality is also acquired through other factors

    WOM

    Press reports

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    What Brand Personality Does

    Brand Personality gives the brand a unique and

    defining character -

    As it includes Attributes, Feelings and Values

    the relationship with product - peoples life-style,

    needs and values

    the ultimate consequences of product use - values

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    Brand Personality is important when..

    When a category has social signaling value Purchased or consumed in socially conspicuous

    situations

    Expensive and relatively scarce products

    Helps calibrate quality in otherwise ambiguoussituations

    Target market consists of high self monitors(individuals who are are easily swayed by brandpersonality)

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    Nescafe

    Young

    Upper-middle class

    Professionallyqualified

    Ambitious

    Confident

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    Pepsi

    Young

    Anti-establishment

    Cool Extrovert

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    Levis

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    Revlon

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    Big 5 of Brand Personality

    Sincerity Excitement Competence Sophistication Ruggedness

    Down-to-earth Daring Reliable Upper-class Outdoors

    Honest Spirited Intelligent Charming Tough

    Wholesome Imaginative Successful

    Cheerful Up-to-date

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    5 factor model of personality

    Extroversion

    Instability

    Agreeableness

    Openness to experience

    Conscientiousness

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    Implementing Brand Personality

    Researching the Brand Personality

    Quantitative rating on personality objectives

    Qualitative projection techniques )

    Seek consistency with the functional and psychological benefits the brand

    promises

    Research the symbolic associations that currently exists with the product

    category

    Understand the type of personality the TG is most likely to be responsive

    to - both actual and aspired

    Check how different brands currently rank on different personality

    characteristics

    Implementing Brand Personality

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    Implementing Brand Personality

    cont.

    Targeting Brand Personality is judgmental

    Consider the Brands use settings and context

    Use endorsers / spokes-characters / users life-style

    imagery / symbols Use of appropriate ad. elements, actors, music,

    colour, fonts etc (ad execution)

    Maintaining the Personality over time - to ensure it remains contemporary across

    different elements of the marketing mix

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    Brand Equity: The Role ofBrand Identity Based IMC

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    The Goal

    Brand Equity

    Customer-Based (Keller 1993)

    Strong, highly favorable brand associations

    Brand Awareness & Brand Image

    Image is in the eye of the beholder (i.e., thecustomerowns the image).

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    Brand Equity Strategy I

    A set of processes that include acquiring,

    developing, nurturing, and leveraging an

    effectiveness-enhancing, high-equity brand or

    portfolio of brands.

    (Madhavaram, Badrinarayanan, and McDonald 2005)

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    Brand Equity Strategy II

    Why have a brand equity strategy?

    To achieve competitive advantage

    This in turn leads to superior financial

    performance. (Hunt forthcoming)

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    IMC

    Integrated Marketing Communications

    Not just a collection of promotional tools or a

    budgetary allocation exercise.

    Must be strategically developed (Kitchen et al. 2004)

    Must harness synergy across multiple media.(Naik and Raman 2003)

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    IMC Strategy A set of processes that include the planning,

    development, execution, and evaluation of

    coordinated, measurable, persuasive brand

    communications programs over time withconsumers, customers, prospects, employees,

    associates, and other targeted, relevant external

    and internal audiences. (Madhavaram, Badrinarayanan, andMcDonald 2005)

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    Brand Identity Strategy I

    To have a successful IMC strategy, must first

    have a strong Brand Identity Strategy.

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    Brand Identity Strategy II Brand Identity Strategy is defined as:

    A set of processes that include the coordinated efforts of

    brand strategists in (1) developing, evaluating, and

    maintaining the brand identity/identities, and (2)communicating the brand identity/identities to all

    individuals and groups (internal and external to the

    firms) responsible for the firms marketing

    communication.(Madhavaram, Badrinarayanan, and McDonald 2005)

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    Brand Identity I Before we can achieve brand equity, i.e., a

    positive brand image, we must know the

    brands identity.

    Brand identity is the unique set of brand

    associations that a brand strategist aspires to

    create or maintain. (Aaker 1996)

    The brand ownerdefines the brand identity.

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    Brand Identity II

    Unlike Superman and Spiderman, marketers

    do not want to keep their identities secret.

    Brand owner must understand and clearlyexpress aspirations for the brand.

    These aspirations must be shared with all

    brand stewards, those responsible forcommunicating the brand to others.

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    Brand Identity Contacts All message-carrying interactions concerning

    the brand between the brand strategists and the

    brand stewards. (Madhavaram, Badrinarayanan, and McDonald

    2005)

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    Brand Stewards

    All internal and external entities that have

    responsibility for communicating the brand

    to customers, prospects, and publics. Advertising & PR agencies

    Direct Marketers

    Salespeople Anyone who communicates the brand.

    (Madhavaram, Badrinarayanan, and McDonald 2005)

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    Brand Equity Contacts

    All marketer-sponsored interactions

    concerning the brand between brand

    stewards and customers, prospects, andpublics that are intended to create or

    maintain strong and highly favorable

    associations. (Madhavaram, Badrinarayanan, and McDonald2005)

    Ties back to Kellers definition of brand equity.

    Figure1: Brand Equity Strategy A Schematic

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    IMC

    Strategy

    Brand

    Equity

    Brand

    Identity

    Strategy

    Brand

    Identity

    Contacts

    Brand

    Equity

    Contacts

    Brand Identity

    Interface

    Brand Equity

    Interface

    Environment, competitors brands, and changing customer needs and preferences

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    IMC Brand Equity

    Brand Communication

    The glue that enables the connection

    between the firms efforts and customers

    favorable response.

    Brand Communication

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    Brand Communication

    1. Communication is a crucial (not only) driver ofbrand equity.

    2. Brand Communication is transmitted through a

    combination of vehicles, not just broadcastadvertising.

    3. Brand Communication can be meticulously

    planned or unplanned.

    4. Some important brand contacts are not

    controllable by the brand strategist.

    Brand Identity IMC

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    Brand Identity IMC

    Brand identity helps establish relationship betweenbrand and customer via value propositions.

    Functional, Emotional, Self-Expressive Benefits

    Yet, it is extremely difficult for brand image tomatch perfectly with brand identity due to the

    complex nature of the communications system.(Madhavaram, Badrinarayanan, and McDonald 2005)

    Goal: Brand Image-Identity Congruence.

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    Image Identity

    Per Aaker (1996), brand image should be aninput to brand identity.

    Brand Strategists Carefully analyze own brand image,

    competitors brand images, changing customerpreferences and needs.

    Use to guide creation, management, oradaptation of Brand Identity.

    (Feedback Loop in Model)

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    Identity Communication

    Positioning suitable for identity?

    How is identity to be communicated to

    brand stewards?

    How to guide brand stewards?

    Potential for conflicting messages.

    Brand Identity Strategy MUST guide the

    IMC Strategy.

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    Top

    Management

    Support

    Synergy

    ConsistencyInteractivity

    Compliment-arity

    Brand

    Equity

    AwarenessImage

    Internal

    Market

    Orientation

    Brand

    Identity

    Oriented

    Culture

    IMC

    Effectiveness

    Brand Identity

    Contact Factors

    Brand Equity

    Contact Factors

    Figure 2: AConceptual Framework

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    Brand Equity Contact Factors

    Synergy

    Combined efforts exceed sum of individual

    efforts.

    IMC Effectiveness

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    SYNERGY

    Interactivity

    Processes that link customers to company andits brands

    Strategic Consistency

    Coordination of all messages in the promotionof brands

    Complementarity Reinforcing effects of individual

    communication efforts

    (Madhavaram, Badrinarayanan, and McDonald 2005)

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    Brand Identity Contact Factors Brand Identity-Oriented Culture

    Places high priority on brand identity

    Establishes behavioral norms in support of brand

    identity

    Top Management Support

    Brand Identity is strategic

    TMT sets culture

    Internal Market Orientation

    Apply customer approach internally

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    Conclusion Know your brands identity.

    Communicate that identity to brand stewards.

    Identity guides IMC.

    Compare brand image to brand identity. A match is ideal.

    Look at competitors images, as well as

    customers preferences and needs. Adjust identity.

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    Group Influence&

    Word-of-Mouth

    Advertising

    R f G

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    Reference Groups

    RGs can be actual or imaginary institutions /

    individuals, that have relevance on the

    individuals aspirations, evaluation, behavior.

    RG used as standards for self appraisal theJonesesneighbors, social class

    RG used as a source of norms, standards and

    attitudes - icons

    RG considered to be informative experts /

    opinion leaders

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    Reference Group Association

    Advertising can associate a brand with a

    reference group by making the brand

    an integral part of group norms through explicitor implicit endorsement of role model

    link the brand to the successful performance of

    a certain role

    Nature of Reference Group Influences

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    Nature of Reference Group Influences

    External and explicit (social interaction is involved - WOM)

    or

    Internal and implicit (affected by a mental process, that involves aperson or group)

    and

    Informational (low knowledge consumers seek information from

    those considered to be knowledgeable)or

    Normative (comply with the group to satisfy ego, gain rewards,avoid punishment)

    Factors that Influence

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    the Degree of Group Influence The type ofdecision making unit larger the unit

    greater the influence

    The kind ofconsumption and purchase situation

    more conspicuous the situation greater the influence

    The nature of product category riskier, high

    involvement greater the influence

    Individual differences in susceptibility

    Informational Sources

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    Diffusion and the Success of WOM

    Factors Affecting success of Diffusion / WOM

    1. Motivation of Opinion Leaders

    2. Motivation of Opinion Seekers

    3. And the nature of the innovation

    Informational Sources

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    Diffusion and the Success of WOM

    1. Motivational characteristics for opinion leaders

    Involvement in the product

    Self involvement

    Other involvement

    Message involvement

    Factors Affecting Diffusion and the

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    g

    Success of WOM

    2. Opinion seekers motivation to listen to

    opinion leaders is, he believes that -

    OL is trusted as he is seen as .. Interested in the listeners well being

    Knowledgeable, experienced and convincing

    OL in one category may not work for another

    Factors Affecting Diffusion and Success

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    of WOM

    3. Product characteristics innovation

    Relative advantage

    Compatibility

    Complexity

    Divisibility

    Communicability

    The degree to which the OL is responsive to advertising

    will determine the efficacy of the 2 step communication

    Implementing an

    I f ti l I fl St t

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    Informational Influence Strategy

    It is not practical to single out the innovator and opinion

    leader segment and target communication at them

    Hence -

    Advertising can simulate - designed to appeal to innovators -

    Slice-of-life advertising

    Other promotion tools to stimulate WOM DM, PR, Sales

    Promos can be used

    Normative Influence Become

    I t t

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    Important.

    Influence of reference Group is important with -

    New products determine nature and extent of risk

    Established products that are socially visible products

    (high social risk) use celebrities , slice of life advtg.

    Functionally risky products use experts

    Culturally significant products give cultural meaning

    Normative Influence -

    Ad i i Gi d C l l i

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    Advertising Gives Brands Cultural Meaning

    In a more inclusive way Advertising can give

    cultural meaning to Brands

    Knowing the particular type of cultural meaning

    associated with the category, and

    Transferring a desirable cultural meaning to the brand

    External Influences on

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    Consumers

    Culture

    Subculture

    Social class

    Referencegroups

    Situations

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    Message Strategy

    Determining the Intervening Variable(s)

    that will

    Create a Positive Brand Attitude

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    Packaging

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    Traditional functions of packaging: economy, protection, storage

    Packaging has become increasingly important

    because:

    self service emphasis of many stores

    buying decisions made at point-of-purchase

    often customers first exposure to product

    Packaging is a way to communicate to consumers

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    Pricing Decisions

    Price must be consistent with perceptions of the product

    Higher prices communicate higher product quality

    Lower prices often reflect bargain or value perceptions

    A product positioned as high quality while carrying a lowerprice than competitors may confuse customers

    Price, advertising and distribution must be unified to create

    the position for the product or service.

    i ib i h l i i

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    Distribution Channel Decisions

    Channel decisions involve:Determining the type of channel system:

    Direct channels

    Indirect channels

    Selecting, managing and motivating marketing

    intermediaries such as

    Wholesalers Distributors

    Brokers

    Retailers

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    "Push" Techniques

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    q

    Point of sale displays, racks, stands

    Trade deals, special displays

    Dealer premiums, prizes, gifts

    Cooperative advertising deals

    Advertising materials, mats, inserts

    Push money or"spiffs"

    Collaterals, catalogs, manuals

    Trade shows, conventions, meetings

    "Pull" Techniques

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    q

    Sampling, free trial

    Coupons

    Premiums or gifts

    Contests, sweepstakes

    Price-off deals

    Refunds/rebates

    Frequency/loyalty programs

    Point-of-purchase advertising

    Marketing and Promotions Process Model

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    Competitiveanalysis

    Targetmarketing

    Identifyingmarkets

    Marketsegmentation

    Selecting

    a targetmarket

    Positioningthrough

    marketingstrategies

    Productdecisions

    Pricingdecisions

    Channel of

    distributiondecisions

    Promotionaldecisions

    advertisingdirectmarketinginternet/interactivemarketingsales

    promotionpublicityand publicrelationspersonalselling

    Resellers

    UltimatecustomerConsumersBusinesses

    MarketingStrategy and

    Analysis

    TargetMarketingProcess

    Marketing PlanningProgram Development

    Promotion tofinal buyer

    Target Market

    Purchase

    Promotionto trade

    Awareness/

    f ili i

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    The

    Persuasion

    Process of

    Advertising

    is through

    a variety

    of effects

    familiarity

    Brand Benefits /Attributes Info

    Creating image /

    personality

    Associating feelings

    with Brand

    Linkage of Brand with

    peers/experts/group norms

    Reminder / Brand trial

    inducement

    Positive

    Brand

    Attitude

    Purchase

    Behavior

    These Intervening Variables between Advertising & Action are more

    effective Advertising Objectives than Sales

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    Segmentation and Positioning

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    Segmentation is about deciding

    which consumers theAdvertising should be targeted at

    The Target Marketing Process

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    The Target Marketing Process

    Identify markets with unfulfilled needs

    Determining market segmentation

    Selecting market to target

    Positioning through marketing strategies

    TM d M di R h A h

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    TM and Media Reach Approaches

    Controlled Coverage using niche media to

    reach only the desired segment e.g. trade

    magazines

    Customer Selection using mass media toReach is directed at mass audiences