Adv 435 ch 5 strategy
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Transcript of Adv 435 ch 5 strategy
Marketing
Communication
Strategy
Chapter 5
Strategy
= Actions that will
give brand a
competitive edge
Strategy
Actions tend to be
broaderin scope as
opposed to specific
tactics
Strategy•Anticipates consumer
responses
•Anticipates competitive
reactions
•Message content
• Tone
• Benefits
• Features
• Models/Menu Items/Biz
Strategy•Media
• Mainstream vs. Alternative
• Day Part Focus
• Interactive
• Social
Building Strategic
FoundationElements
•Determine Selling Focus
•Managing Brand Equity
•Positioning the Message
•Funding Comm. program
•Targeting/Delivering
Message
Building Strategic
Foundation
Each element has
strategic focal point
derived from
research
Building Strategic
Foundation
Sometimes the elements
are at odds…..
Building Strategic
FoundationSelling Focus/Brand
Equity/Positioning/Target
•Fashion: Style vs. Comfort
•Food: Taste vs. Nutrition/Health
•Image vs. Product
Characteristics
•Time: Short term vs. Long term• Stimulate Sales vs. Building Brand
Equity
Building Strategic
FoundationSelling Focus/Brand
Equity/Positioning/Target
Name some others
Building Strategic
FoundationSelling Focus/Brand
Equity/Positioning/Target
•Beverages: Taste vs. Calories
•Life Insurance: Term vs. Whole Life
•Electronics: Speed vs. Capacity
•Gems: Weight vs. Clarity
•Colleges: Cost vs. Proximity vs. Programs
vs. Value of Degree
•Housing: Location vs. Amenities
•Job: Salary vs. Potential
Building Strategic
FoundationElement: Selling Focus
Better than Competition?
= Basis for Message
Parity?
= Build Brand is the message
Building Strategic
Foundation
Element: Brand Equity
•Without it, Brand does NOT
survive!• Company sells it or discontinues it.
• EF Hutton - Compaq
• Pontiac - Enron
• Oldsmobile - Circuit City
• TWA - Borders ?
• RCA - Crocs ?
Building Strategic
Foundation
Element: Brand Equity• Short Term focus on sales ties brand
image to that goal. Ex: Pizza Hut and
Boston Market to coupons.
• Elimination of coupons and short term
discounts strengthened Denny’s
• Live by the coupon, die by the coupon
• Roy Rogers - Tire and auto repair
• Little Caesars - Weight loss and exercise
• Many mom and pop stores
Building Strategic
FoundationElement: Positioning
•How brand is presented in
various messages
• Create an image or identity
in consumers mind
• Can achieve Short & Long
Term Goals
Building Strategic
FoundationElement: Funding
•Investment Spending
• % Sales
• Task/Objective
• Allocation per Unit
• Cars with $ by model
Building Strategic
FoundationElement: Targeting
•Right Demo?
•Right Lifestyle?
• Right Geography?
• Right Psychographic?
• Right Message?
Building Strategic
FoundationElement: Targeting
• Right Message?
• Believable?
• Not Believable? (This is not
your father’s Oldsmobile)
Determining Selling Focus
Managing Demand
• Controlling Thoughts &
Feelings about
Brand
- What is Perception of Brand
- What is Image of Brand
- How important are the facts
(Taco Bell meat)
Determining Selling Focus
Managing Demand
• Attempt to avoid price
competition
• Allows for:
• Product Improvements
• Line Extensions (New Users)
• New Products
Determining Selling Focus
Advertising Can Shape Image
•Thru Message
•Media Selection
•Can Change Both Quickly• LTO’s
• Specials
• Coupons
• Media Opportunities
Determining Selling Focus
Advertising Can Shape Image
•Thru Message
•Media Selection
•Can Change Both Quickly• But may need to sell-in distribution
pipeline (Packaged Goods)
Managing Brand Equity
Brand Equity = Value in Brand’s
•Name
•Logo
• Icons
Managing Brand Equity
Brand Equity =Intangibles
•Positive Association
•Positive Feeling
•Sense of Connection
•Sense of Self Esteem
Managing Brand Equity
Examples:
Which is more important
Beechwood Aged or
King of Beers?
Triple Hopped or
Tastes Great, Less Filling
Managing Brand Equity
Examples:
Which is more important
What can Brown Do for
You, or
When it Absolutely,
Positively HAS to be
There Overnight!
Brand Equity
Components:
•Brand Loyalty
•Name Awareness
•Perceived Quality
•Brand Associations
•Other Assets
Brand Equity
Components:
•Other Assets
–Patents
–Trademarks
–Characters
–Channel Relationships
Brand Loyalty
•Less expensive to
keep customers than
find new ones.
•Takes less time
Brand Loyalty
•Customers & prospects
have routines.
–Comfortable
–Have acceptable degree of
satisfaction
–Require less mental effort
–Boring?
Brand Loyalty
Taking customers or
market for granted can
lead to:
•Ennui
•Loss of Leadership
•Elimination
Brand Loyalty
•Plymouth - MGM
•Eastern Airlines -
Pontiac
•Kinko’s -
Gino’s
•White Cloud - Loew’s
•General Cinema - Atari
•Prentice-Hall - Borders
•Blockbuster - T Mobile
Cultivating Brand Loyalty
Get Customers
Emotionally attached
to Brand
Cultivating Brand Loyalty
Emotionally attached:
• I want my MTV
• Absurd connections
• Add Value
–More Attention
–Better Service
–Greater Satisfaction
Cultivating Brand Loyalty
Greater Satisfaction
Examples?
Cultivating Brand Loyalty
Greater Satisfaction
Examples?
–Southwest
–Publix
–Lexus
–Apple
–Vanguard
–Home Depot
Name Awareness•Without Awareness there
is NO Loyalty
•Name is the anchor for
other brand associations
–Slogan or tagline without
name is meaningless
•Name provides familiarity
Name Awareness•Name Signals Commitment
and Substance
•Name Suggests Others Feel
it Worthy
Name AwarenessName Associations:
Disney
Oprah
Bose
Cancun
Dr Pepper
Garnier
Name AwarenessName Associations:
Axe
Nike
DKNY
GAP
Sony
Old Navy
Name AwarenessName Associations:
Pepsi
Coke
Rutgers
Rider
Princeton
Stages of Awareness–NONE
–SLIGHT
–GENERALLY AWARE
–VERY
–EXTREME AWARENESS
–UNAWARE
–RECOGNITION
–RECALL
–TOP OF MIND
Stages of Awareness
Key 3
–Top of Mind = First Said
–Unaided = No prompt
–Aided = With prompt
Stages of Awareness
Increasing TOP OF MIND
awareness is an…
Advertising GOAL
Perceived Quality
First isn’t Best but MAY be
so perceived
Perceived Quality
Does it matter?
–Sony vs. Panasonic
-HDTV, 3D TV
–Hybrid Cars
-Who was first?
-Who sells most?
Brand Associations
•Celebrities – Michael Jordan
•Places – Old El Paso
•Characters – Dutch Boy
• Ideas –Everywhere you want
to be
•Words - Priceless
Brand Associations
Associations built on
Products
Physical Qualities tend to be
Fleeting!
•Technology
•Software
•Cars
•Clothes
Brand Associations
Associations with Qualities
must make sense to
consumer
•Miller Lite: “It’s it and that’s
that!” Made no sense.
•Huh? Factor
Brand Associations
Strategy must focus on
which associations are
worth:
• Keeping
• Reinforcing
• Intensifying
Other Proprietary Brand
Assets
•Patents and trademarks
–Tylenol (Acetaminophen)
–Equal (Aspartame) packets
And NutriSweet (bulk),
Though patent expired 18
years ago
Other Proprietary Brand
Assets
•Characters
–Green Giant started as ogre
but ad agency made him Jolly
–The Burger King started out
friendly then got weird.
Other Proprietary Brand
Assets
•Channel relationships
–7 Up was leading citrus
soda
–Coke had most ext. distrib
»Coke created Sprite
»Pepsi created Sierra Mist
»Where is 7 Up today?
Protecting Brand Equity
•Short vs. Long Term
–Bonus vs. Investment
–Technology provides oppts. For
short term bumps. Scanners at
checkout enable quick local
response
Protecting Brand Equity
•Depends on product
–Generic (water) minimal loyalty
–Prestige (Rolex, Rolls, LV) high
–Ad Strategy MUST relate to
LIKELIHOOD OF LOYALTY
Protecting Brand Equity
–If Campbell’s Soup is an average
(not great) product…
–BUT, Campbell’s and Soup are
closely associated
–Then ad focus should be on soup
–“Soup is Good Food”
POSITIONING
• Defining the market in which the product or brand
will compete (who relevant buyers are i.e. the
target)
• Identifying the attributes (dimensions) that define
the product space.
• Collecting information from sample of customers
on their perceptions of each product re: relevant
attributes
• Determine each product's share of mind (degree of
consumer awareness or popularity)
POSITIONING• Determine each product's current location
in the product space (attributes).
• Determine the target market's preferred
combination of attributes (referred to as an
ideal vector)
• Examine the fit between:
• The position of your product
• The position of the ideal vector
EXAMPLE
More on Positioning
• Using Messages to create/revise
perception about a brand relative to
others.
–Pepsi = Younger – sweeter drink
–Coke = Older but youthful, playful
More on Positioning
• Using Messages to create/revise
perception about a brand relative to
others.
–Cars:
»Chevy- Young Families
»Buick – School Principal
»Cadillac – Grandparents
»BMW – Yuppies
»Mercedes – Successful Pros
More on Positioning
Wrong Positioning:
–Denny’s as America’s Kitchen»Was really Low Price Alternative
–New Coke
–Gerber’s Baby Food for Adults
–Bic Disposable……underwear
Types of Positioning
• Product Characteristics
–Rolaids Spells Relief
• Price Quality
–Target, WalMart
• Use or Application
–Beano
• Product Class
–Dove Soap
Types of Positioning
•User
–Secret: Strong enough for a
man, but made for a woman
•Cultural Symbol
–Harley Davidson
•Competitors
–TD Bank: Most Convenient
Positioning Exercise
•Find two examples of poorly
positioned products.
–What is position?
–Who is competition & position
–How would you change
position?
Funding the MC program
Goal:
Meet/Exceed Competitive
•Share of Voice
•Share of Market
•Unit Appropriation
•Share of Sales
Appropriation
Funding the MC program
Task Method
•National
•Regional
•Local
Targeting & Delivering
Message
•Mass Media/Message
•Niche Media/Message
•Both
Targeting & Delivering
Message
Media and Message Mix
– Budget Considerations
– Target Considerations
– Strengths of Media
Targeting & Delivering
Message
• Network TV: Strong Brand Identity
• Magazines: More copy & detail
• Newspaper: Immediacy, local
• Internet: Interaction, more info
• Brochures: specifics, saved
• Radio: frequency, reminder
Targeting & Delivering
Message
•Outdoor: Location, creativity
•PR: Credibility
• Infomercials: In depth, direct
response
•POP: point of sale stimulus