F6.0 advertising sales_promotion_and_public_relations

© Heinz G. Zenk – International Advertising Seminar

International Seminar

Advertising,

Sales Promotion

and

Public Relations

© Heinz G. Zenk – International Basic Seminar

The New Generation of Strategical Brand Management

Speedto Market-Marketing

Brands are fighting for value added

2

Markets are changingovernight

1

Conventional mediaare no longer

sufficient

6 Increasing competition leads to an increase

in concentration

5

Trading firms are developing their own

marketing intelligence

4

Consumers are getting blunt and

price sensitive

3


Environmental Factors affecting Strategy


The Four Tools of Marketing

Distribution: Includes the channels used in moving and storing the product from the manufactures to the buyer. Market coverage, storage.

Communication: Includes personal selling, advertising, public relations, sales promotion, direct marketing, point-of-sale, and packaging.

Price: Includes the price at which the product or service is offered for sale and establishes the level of profitability. Price copying, psychological pricing

Product: Includes product design and development, branding, maintenance and packaging.

1.1.

2.2.

3.3.

4.4.


The Four P´s (the old marketing mix)

areno longer relevant!

The New Marketing


The Customer expectation

The New Marketing

Cost Cost – a customer considers cost within a value perception.1

Convenience of buyingConvenience of buying – a mix of lace/location, opening hours, cash/credit card, etc. Customers are lazy

2

ConceptConcept – a mix of product and service products which offer after care service.

3

CommunicationCommunication – how well the service or the product is communicated to the customer?

4

Customer relationshipCustomer relationship – CRM principles apply customers expectations to be treated with respect at all times and that all reasonable questions will be answered and problems resolved.

5

ConsistencyConsistency – the reassurance of ongoing quality and reliability of the other five C´s

6


Neuromarketing

Desire!


Limbic® Branding

Consulting tool for successful brand positioning and brand leading

Copyright: Dr.Hans-Georg Häusel, Gruppe Nymphenburg, München

Seidlstrasse 25, 80335 München, 089-549021-0


FAZ-INSTITUT AND BUSINESS BESTSELLER SUMMARIES

Limbic® Branding

Worldwide, the limbic approach might be the best and scientifically most founded motive- and personality-system for marketing and brand appliance.


Limbic® The scientific base

Neuroscience / Neurobiology(analysis of about 2000 studies: brain – emotion – behavior)

Psycho-Endocrinology(analysis of about 600 studies: hormones – neurotransmitter)

Psychology(Large research project and extensive empiric studies in cooperation with Prof.Dr.Dr. Brengelmann, Max-Planck-Institut for Psychiatry: Money / Consum / Personality

Evolutionary Biology & Psychology(analysis of about 600 studies)


Limbic® Buying descisions are made unconsciously

unconscious

70 %


Limbic® The real motives in the human brain

sexuality

carebonding

hunt

Play tussle

sleepfood

Stimulanceexploration

discover

Dominancecompetitionrepression

Balancesecuritystability


Limbic® The human behavior program

Stimulance

Balance

SexualityFood

Sleep / Breath

Dominance


Balance

Limbic® The Balance-Instruction


Dominance

Limbic® The Dominance-Instruction


Stimulance

e= mc2

Limbic® The Stimulance-Instruction


Limbic® MapThe human motives and values

BalanceBalance

Dominance

DominanceStimulance

Stimulance

AdventureThrill

Fantasy

Pleasure Disciplin

e

Control

power

family

prestige

creativity

nature

healthtrust securityBonding

home

loyality

asceticism

victory

moral

openess

risk

economy

impulsivness

rebellionextravagance

spontaneity

cordiality

Care

reliability

quality

individualism

autonomyfun varietyart

poetry

fame

orderliness

elite

pleasure

ambition

honourhumor

sensualitydutifulness

precision

justice

diligence

friendship

tenacity

equilibrium

pridecuriosity

fantasy

flexibility

tolerance

playfulness

diciplin

dreaming

courage

tradition

bondage

logic

fight


Camel 1960 Camel 2002Camel 1990

Limbic® MapFlops regarded with the limbic eye


Consciousness

Unconscious Evaluation

by Limbic System

70%

EmotionsCognitions

Information

Limbic® MapNew thinking predominance of the limbic system


Rightspecial thinking

patternsunknown

things

Leftlanguagesem. structurewell-known things

PessimisticOptimistic

Limbic® MapLeft half of the brain, right half of the brain


Personality Emerges From the Limbic System


Adventurer

9 %Hedonist

16 %

Epicure

22 %Preserver

35 %

Disciplined

12%

Performer

6 %

Limbic Consumer (Male and Female)


Differences Between Men and Women


20-35 years 20-35 years 65+++ years65+++ years

Modifications According to Age


Adventurer

3 %Hedonist

17 %

Epicure

25 %Preserver

46 %

Disciplined

7%

Performer

2 %

Limbic® Consumers (Female)


Adventurer

15 %Hedonist

15 %

Epicure

18 %Preserver

23 %

Disciplined

18%

Performer

11 %

Limbic® Consumers (Male)


Adventurer

20 %Hedonist

25 %

Epicure

22 %Preserver

18 %

Disciplined

5 %

Performer

10 %

Limbic® Youth 20 - 30


Adventurer

1 %Hedonist

4 %

Epicure

19 %Preserver

58 %

Disciplined

14%

Performer

4 %

Limbic® Age 60 +


Limbic ® MapThe human motives and values

BalanceBalance

Dominance

DominanceStimulance

Stimulance

power

family

prestige

creativity

nature


home

loyality

asceticism

victory

moral

openess

risk

economy

impulsivness


spontaneity

cordiality

Care

reliability

quality

individualism


poetry

fame

orderliness

elite

pleasure

ambition

honourhumor


precision

justice

diligence

friendship

tenacity

equilibrium

pridecuriosity

fantasy

flexibility

tolerance

playfulness

diciplin

dreaming

courage

tradition

bondage

logic

fight

Older women

Older

men

Younger men

You

nger

w

omen

Adventurethrill

Disciplin

e

Control

Fantasy

Pleasure


Milk Brands and Their Differences

discipline, control, purity, freshness

care, security, trust, home

creativity, pleasure, discover, fun, humor, hedonism

consciously pleasure, care, well-being, nature,openess, harmony


Limbic® MapThe human motives and values

BalanceBalance

Dominance

DominanceStimulance

Stimulance

AdventureThrill

Fantasy

Pleasure Disciplin

e

Control

power

family

prestige

creativity

nature


home

loyality

asceticism

victory

moral

openess

risk

economy

impulsivness


spontaneity

cordiality

Care

reliability

quality

individualism


poetry

fame

orderliness

elite

pleasure

ambition

honourhumor


precision

justice

diligence

friendship

tenacity

equilibrium

pridecuriosity

fantasy

flexibility

tolerance

playfulness

diciplin

dreaming

courage

tradition

bondage

logic

fight

Generic milk Brand Core„Weihenstephan“

Brand Core„Müller“

Brand Core„Onken“ Brand Core

„Landliebe“


Please notice

Limbic® and the connected instruments and procedures are protectedby copyright and patent law. This presentation is for your information and may be used for teaching purposes with reference to the copyright.

Any commercial use needs a written agreement.

In case you wish to use Limbic® we look forward to hear from you:

Gruppe NymphenburgDr. Hans-Georg HäuselSeidlstrasse 25D-80335 München+49 / 89 / 54 90 [email protected]


Positioning of a Brand

Practice Seminar - Brand Leading

© Heinz G. Zenk

42

„The brand lives on the inner picture“

Brand appearance and tonality


© Heinz G. Zenk

43


World´s Top 20 Most Valuable Brands

Rank2005

Rank2004 Brand

Brand value 2005 in bn. Euro

Change to 2004 in %

Countryof origin

*Revaluation because of an extended data basisSource: Interbrand / Business Week


© Heinz G. Zenk

45

Brand value and brand confidence

The consumers meaning of „trustworthy brands“ is to reduce risks at buying decisions. Brand confidence amplifies the buyingloyalty compared to these brands.

Confidence is a psychological condition, while consumers are ready to accept troubles.

First of all, the continuousrelationship to the consumerand the factors productquality, value / benefitratio and brand identityare main parts to the brand confidence.


© Heinz G. Zenk

46

Testing the brand confidence

The question to the election of the most confident brands in 30 product categories:

„Tell us the brands you trust the most.“

Quality:The brand offers high quality by excellent products / services.

Price / Equivalent Value:The brand offers a high equivalent value to the customer for its money.

Undisputed Image:The brand has a unique brand identity - expressing something related to its consumers.

Knowledge of the customers needs:A brand, whereby the company knows the consumers wishes and manufactures products,due to the consumers needs.


© Heinz G. Zenk

47

Real U.S.P.´s are not expectable ofconsumer goods and services.

Brand appearance and tonality

+Product- / Offer - Standalones are copied often.

=The more important is a unique brand character, that

separates you from your competitors:a brand character that adds psychological benefit.


© Heinz G. Zenk

48

Positioning of a brand


© Heinz G. Zenk

49

„The key for bracing the brands in the heads of the consumers, requires many years of planing and positioning, as well as continuity within all communications and measures.“

Positioning of brand identity

„Every brand has its own, unique face.“( Domizlaff )

Target objective and strategies


© Heinz G. Zenk

50

McDonald´s brand identity


© Heinz G. Zenk

51

BMW´s brand identity


© Heinz G. Zenk

52

Packaging and Design„Branding bestrides all specific measures for developing a brand, which are qualified for elicitating an offer from the opulence of other, equivalent offers and realizing an unique allocation to a specific brand.“

The expression „Branding“ is based likely on the history of the american settlers, who stigmatized / branded their cattle. With a unique sign for every cow, they knew who its owner was.

„Branding must not be realized fragmented, because it is more than the sum of all of its parts: Branding has to be realized / designed within the rules of the magic branding triangle !“


© Heinz G. Zenk

53

What kind of brand aesthetic has a packing to have ?

Harmony Modernity Emotionality Culture

BRAND AESTHETIC

Familiarity Feasibility Complexibility


© Heinz G. Zenk

54

Basic brand strategies


© Heinz G. Zenk

55

1. Single brand strategies

At a single brand strategy, own specific brands are created for the single products of a company and enforced into the market.

One brand = One product = One promise


© Heinz G. Zenk

56

1. Single brand strategies

-Single brands are of importance, if a company orients its heterogeneous products to different customer target groups and segments.

- Single brands are qualified for innovative products that open the gates for new marketing sectors.

- Single brands offer a variety of advantages by clear and top positionings.

- On the other side, the risks of single brands expose more and more because the investments into leading brands in fact increase, but this fact is often unseen by the consumer.

- You can find single brands primary within the industry of consumers goods. In other branches

- for example the attendance / service sector - most of the time there is no need of profiling single products.New trend : Single brand strategies are reconsidered

Causes :

1.) Single brands are more and more completed in form of an umbrella brand as despatcher: Standing for Trustworthiness and Competence

Nestlé, Unilever, Procter + Gamble


© Heinz G. Zenk

57

2.) On the other side, more and more stretchings by single brands and product line extensions occure.

For example: Coca Cola, Coca Cola Light, Cherry Coke etc...

Umbrella brand strategies

The umbrella brand strategy is the opposite to the single brand strategy. An umbrella brand covers all products a company offers.

Examples: Siemens, IBM, Axa, Yahoo, BMW, Mercedes etc...

Umbrella brands are chosen, if :

- a product´s or service extent is too large for a useful single brand strategy (e.g. Siemens)

- the target group / positioning do not vary or vary little (e.g. IBM)

- the product´s programme or essential parts are subject of modical changes (e.g. Gucci, Amani, Jilsander )


© Heinz G. Zenk

58

Advantages of umbrella brand strategies

Advantages of umbrella brand strategies are based on the distribution of expenditures to brands, profiling (e.g. advertising expenditures ) and all offered products. As well, an established umbrella brand offers a jump-start for the introduction of new products, because there is already a „brand goodwill“ at the trade / consumer.

Disadvantages of umbrella brand strategies

The wider and heterogeneous the product / service range within an umbrella brand is, the less the brand is able to position itself on the market.

Familiarity, competence and faith are the reasonable attributes !


© Heinz G. Zenk

59

Family brand strategies

At the family brand strategy, a integrative brand is chosen for a product group or product line. Within the company, several product lines may exist with various brands. Aim of this strategy is to let all products of one product line take profit of the product group specific brand image, if an integrative need (USP) is conceivable.


© Heinz G. Zenk

60

Advantage of a family brand strategy

A family strategy is the combination of the profiling advantage of a single brand together with the economical advantage of an umbrella brand

Disadvantage of a family brand strategy

When profiling single products, the base positioning of the brand core has to be considered always. Apart from that, the risk of discolouration of the brand image exists.


© Heinz G. Zenk

61

Facets of the brand potential

Strong brands have a great brand potential for a brand stretching.

Adaption of the brand positioning

The adaption of the brand positioning is a matter of changing the perception of the brand by the customer. Possible adaptions within the brand positioning are based on two aspects:

- on the already existing brand positioning within the perception of the customer

- on the ideal, which customers have from a product within the category

Further development of the brand structure

A further development of the brand structure might be necessary, if a company sees potentials for new products or if a company´s product range increases as time passes by.

Two approaches:

- Stretching the brand structure for further products

- New structure of the brand portfolio without integrating new products into the range


© Heinz G. Zenk

62

Stretching the brand structure

Besides the complete new development of a brand, companies have the possibility to change an existing brand, even for additional products.

Well known trade options are:

-Line extension

-Brand extension


© Heinz G. Zenk

63


© Heinz G. Zenk

64

Advantages of successful line extension

- Starting with a well known base brand

- Setting up on a more emotional / symbolic brand image

- Intensive support by advertising and above the line promotion

- Basically to be earlier on the market than the competitors products

- To depend on the company´s size and its marketing capabilities

- To participate at a market extension for the brand

Brand extension

At the alternative solution to the further development of the brand structure brand extension, positive image aspects are being assigned from products to another product. An important factor for successful market extension is the image affinity between the outgoing brand and the extended product.

The classical arrangement of single- family- and umbrella brands is not the actual stat, according to the complexity of our time.

As well, the demand for the design of brand architecture gets more and more complex by:

- an increasing offer and brand portfolio

- mergers and acquisitions

- aggrevated requirements in different markets


© Heinz G. Zenk

65

The more important a brand stretches its operating sector, the more appropriately is the addition of subbrands to the brand.

Caution of negative reactions of the brand extension for the main brand !

Results of potential brand extensions show up, that no hastily expectation without a detailed analysis of concept and realization should be made. Only with positive acceptance, image transfer comes up and disburses itself into the main factors.

Brand licensing

If a potential for extending the brand has come up when making the stretching analysis , and the company has not the capabilities to produce a new product itself, a „licensing“ has to be checked.

When licensing a brand, the owner of the brand grants another company

to use his brand for their own products.

(Böll)


© Heinz G. Zenk

66

The „right to use“ refers to:

- new products, that the owner does not trade itself (e.g. Joop perfume)

- to regions, in which the brands owner is not present with own products.

As return for the right to use, the licensee commits himself to abide the contractial demands and to pay a licensing fee.

Originally, licenses are known from the marketing with cartoons and movies. The marketing with licenses is increasing rapidly !

Well known german licensing brands refer to the areas of fashion. ( Boss, Joop, Jilsander, Porsche )

French licensing: Pierre Cardin, Yves Saint Laurent, Louis Ferrand etc...


© Heinz G. Zenk

67

The assignment of brand licenses is a lucrative source of income for companies. With the assignment of brand licenses, you can enter new markets flexible and without a big risk.

Ingredient Brand

Ingredient branding defines the marking of materials, components and parts that are used in other products and its achievements are percepted by the customer as independent part of those products.

( Keller, Baumgarten)


It is the aim of that brand strategy, to improve the international competitive ability. Integration of all company activities in an overall system. Instead of responding to wishes and needs, the education of advantages followed by a standardized mass production comes in first place.

Global brands


„Global branding“ must not be understood in a way, that a brand is present worldwide with the same marketing - mix. You can define a global brand as unique and consistent combined with the brands core, its brand world and its positioning that separates a global brand from the other brand types.

Global Brands

„As standardized as possible, as differentiated as necessary“

...is the device of a company´s practice.

Trend notion: GLOCAL MARKETING


© Heinz G. Zenk

70

Learnings for the new „Speed to Market“ - brand leading

- Rapid marketing as a tactical weapon

- Single brands are leaving - Umbrella brands are approaching

- Successful brands need ratio and emotion

- Brand value signals and its quality are important factors for creation of value

- Brand synergy is more effective for less input / money

- Economy of Scale within the european market is reached by the strategy of the calculated inexactness

- The two - class - society of the brands clarifys potentials : Global or Local Brand

- The trade and media as brands have to be calculated in the future

- Extension marketing dominates the competition

- Experience marketing creates make a good mind to brands

For many decades, the advertising agency Grey has developed and perfected - in a very evolutional process - important instruments and techniques for the future. These instruments have been categorized into a system. The architecture of successful brands


© Heinz G. Zenk

71

The new world of strategic brand leading

Marketing has reached a new level. Before, there was speed, nowadays it is turbo. Yesterday, there was think big. Today it is called think fast. The rapid development forces one to reorient the opinion. New instruments have to update and make the well known marketing rules futurable.


© Heinz G. Zenk

72

Summary and Outlook

- The importance of global brands will increase

- The future belongs to the global „Mega Brands“

- Especially company brands, umbrella brands and brand families will extrude single brands

- Big umbrella brands may trade more product lines parallel, that offer cover all needs like „well being“ or „personal hygiene“

- Huge umbrella brands increase the possibilites of useing synergies. The tendency of extending already existing umbrella brands might be endangered by the growing importance of the Internet and E-Commerce.

Within this new, basically very global and virtual world, marketing has become a lot easier with wide spreading ranges within an umbrella brand.

- You can increase the familiarity of domains, web sites etc... by combining classical communication.


© Heinz G. Zenk

73

Trade- and Service brands and their meaning for the future

What are trade- and service brands ?

The difference between trade and manufacturer brands refers solely to the owner:

„Trade brands are brands, that are legal holdings of a trading company.“

( Müller / Hagedorn)

Targets:

-Increase of Income - Influence to the trade margin

-Profiling and differentation of competitive trading companies / Detachment of direct comparison of price and effort

- Optimization of range / Replacement of slight manufacturer brands by trade brands

- Reducing the power of manufacturers and improving the own negotiation position / Inflated pricing and conditions of the manufacturer are not realizable

- Stronger bonding of group members to the central office / Organizational bonding tools for improving the team-feeling / cooperative partners.


© Heinz G. Zenk

74

Trade- and Service brands and their meaning for the future

Approaches of brand leading differentiate by:

- The trading company itself works as a brand by all meaning of a store brand !

- The trading company is leading own brands in different levels and product sectors.

Successful store brands dispose of a high level of brand awareness.

Aldi Germany - 96 %

OBI - 90%

IKEA - 70%

H & M - 37%


© Heinz G. Zenk

75

Example

For example, IKEA stands for a unconventional, swedish furniture store, that provides a lot of ideas for the own home. This fact reflects itself within the slogan „Discover the possibilities“. Also, you have the visual imagination of a moose and the colors yellow and blue, and almost everybody knows, that IKEA provides furniture to pick up for self assembly. Ikea is considered as a friendly furniture store.

The central eye of a needle at the development of a store brand, is the transfer of the communicated positioning message into a integrative and independent realization in place.


© Heinz G. Zenk

76

Attributes of the Service Brands

The specific characteristics of services lead to a special „necessity of the marking of services“ and on the other side to the consideration of specific „porblems of the marking politics“ of service companies.

The development and relative meaning of service brands is intended by different influences of the market and the acting of market participants. Trespassing are thereby:

1.) General increase of classical services within the consumer- ( consumer services ) and business - to - business market ( investive services )

2.) Arise of new service markets e.g. by technological developments ( Internet )

3.) Increase of the service contingent at special goods ( so called „product accompanying services ) by increased service need at the customers


© Heinz G. Zenk

77

Internationalization of service brands

The trend to the international service offer is enormously.

1990 Two service brands to the 20 image strongest brands of the world

1999 Five international service brands AOL - Time Warner, Amazon etc...

German Internet Warehouses

Regarding the enormous meaning of the competitive factor service quality, the service brand

has the task to realize the intension. Coming from the atomization of the media and the

information overload, the demand of a concise structure of service brands is inevitable.


© Heinz G. Zenk

78

Different types of franchising

Within the last years, a significant change in the franchise - area is recognizable. Beside the goods orientated system concepts, a huge amount of service partners arised. Franchise may also stand for that the franchiser offers a service concept with a specific advertising- and financing concept.

According to that, the following types of franchising exist:

Trade franchising

The franchise taker obliges himself to sell only selected goods in his store. The store of the franchise taker does not wear his name, it wears the brand name of the franchiser. (e.g. building market )

Service franchising

The franchise taker offers services in the name of the franchiser, and obliges himself to meet determined rules and demands. (e.g. musician school, hotels )

Production franchising

According to instructions and the production concept of the franchiser, the franchise taker manufactures a specific product himself, and sells it in the name of the

franchiser. (e.g. beverage filling company)


© Heinz G. Zenk

79

Media as brands

Within the modern media society, the familiarity of brands is communicated mainly through mass media. By far, you can say:

„Media create brands“

But, not solely media create brands, sometimes media are brands itself, which means that they may be umbrella brands as senders and produce at the same tame single program brands.

A lasting and successful costumer- and competitor orientation implifys within the media sector a „profiling of the provider“, the unique, good reputation within the customer- and acquisition sector, as well as within the relevant parts of the publicity.

The good image helps the media to get well known faster and better.


© Heinz G. Zenk

80

The Media as medial and producer

When we think of media, we think of „institutions“:

- Publishers

- Radio stations

- TV stations

as well as „technical end applications“:

- Distribution channels

- Cable channels

- Telecommunication systems

at the demand of Music, Images, Movies and TV programs.


© Heinz G. Zenk

81

The Media as will and imagination

The media brand stands for an offer, that indicates its comparable content and provides quality in larger dimensions, by showing up its origin. The brand is inasmuch a „will“, because, just with a good product and marking, a success is not guaranteed. After the introduction of pay tv, the profiling of the regular tv stations has become more important.

The audience wants to have a quality - warantee for its money.

The entry into the TV and online business

The entry into the TV and online business provides its own chances. The forecasts of the future meaning of online media tell us, that the appearance within the classical TV is a „push - media“, and the visit on a website is a „pull - media“. These online visits are within the interactive TV of the future very easy to realize, as well as on a mobile phone with internet access.

On the other side, the internet is capable to communicate just like a magazine in the tv program or print media.

Cross selling, media group, integrated communication.


© Heinz G. Zenk

82

Brand controlling


© Heinz G. Zenk

83

Brand controlling

Factural basics:

Brands indicate material economy goods to mark other economy goods. In case of commercial purchase of the right of disposal. They belong to activation obliged economy goods of the fixed assets.

Brands never cover only one performance category, (e.g. goods ) they always cover a package of achievements (e.g. goods and services), which „packaging“ is essential for the user.

Inasmuch, a separation of the value evaluation is necessary, that may be realized for:

- the brand as „trademark“ or

- the good, that is marked with the brand or

- for both ( but separated ).


© Heinz G. Zenk

84

The brand is an achievement package, that consists of the following components:

- Images

- Letters

- Numbers

- Sounds

- Three dimensional design (including the „brand - carrier“ or its packaging )

- Any other presentations (including the colors and color composings )

By marking, a combination of two achievement packages is created:

Brands and Good- / Service achievements

Task of the use is the ability to differentiate of the marked „brand - carriers“ within the competition of the economy units, that provide / create the marked achievement attributes.


© Heinz G. Zenk

85

Brand controlling means:

- Leading

- Supervision

- Control

.. of brands. Divided into:

- strategic ( which means preservation and increase of success potential) controlling of an

- operative controlling ( which its task is to refer to the supervision and controlling the realization of measures )


© Heinz G. Zenk

86

Instruments of brand controlling:

Instruments of brand controlling are known as the entirety of the process for realizing:

- tasks of forecast, rating and decision.

- tasks of documentation and report

The use of these instruments is based on the effort of the target objective and the efficiency. The perception of the controlling function needs marketing - brand managers.

Strategic

- Brand „early“ warning systems

- Analyses of the brand- and brand product portfolio

- Brand benchmarking

- Analysis of the future usability possibilities of the brands

- Strategic planning of the brand budget


© Heinz G. Zenk

87

Trademark laws and trademark protection

The signification of a brand within the legal linguistic usage is used in an other way, than in the economally. Economists differentiate between un-branded and branded objects and basically define a brand:

- Milka brand

- Pit Stop brand for services

- Walmart brand as a brand for an enterprise

On the other side, the legal language - e.g. within the brand law - provides the expression „Label“ for branded objects. The brand law unites different issues, i.e. brands for goods and services, business significations, as well as geographical origin. Inasmuch, it is understandable, that the full title of the brand law is called „Law of the security of brands and other labels“.


© Heinz G. Zenk

88

Legal basis of the security of brands

The relevant legal order for the security of brands is marked by high complexity and dynamics. You can recognize the „complexity“ because, in principle several legal sets of rules take up the security of brands.

National area ( brand law )

- Law against the mean competition

- Civil law book

- Commercial code

International area

- Madrid brand agreement

- Paris federation agreement for the security of mental property

- Community brand agreement


© Heinz G. Zenk

89

Legal basis of the security of brands

At international brand strategies, all national brand strategies have to be considered. There do not yet exist identically rules within the EU member states.

Trademark law Brand law

Goods- and Services marks Brands

Collective marks Collective brand

Equipment By use and acquisition of brand law, caused by traffic validity

Indication-rolls Brand register

Homogenity Similarity

Free mark Usual signification

Annoyance exciting representation Offences against the public order or against the good customs


© Heinz G. Zenk

90

Information about the security of brands by enrollment

The security of brands may developed by three causes: (brand law) By enrollment into the brand register at the patent office or by using a sign and acquisition of traffic validity or by notorius familiarity due to the rules of the paris federation agreement.

Brand form Example

Sound accustical announcement of a tv show

three dimensional sign granini bottle

color magenta

color combination magenta / grey

smell character freshly cut lawn for tennis balls

taste character stamp, that tastes like flowers

movement sign movement of the right forefinger up to the nose wing


© Heinz G. Zenk

91

Brand Communication

The brands value is formed by the relations of the consumers according to measures for designing

the „marketing - mix“.

The brands value is the indicator for the increase of the marketing productivity, and its the erection

of faith into the brand. That´s why the positioning of the brand has to be clear and independent.


The corporate brand Nestlé has three functions:1. The corporate logo of the group2. The umbrella brand name for the products mentioned (40 % of total sales)3. The quality label that does not only stand for the membership to the group, but also for

the corporate responsibility as well as for the quality and reliability of the products

For the future brand management Nestlé states two objectives:1. The dimensions of experience for the single brands should become more rich and

manifold in the perception of their target group2. The partially very tight relationship between a brand and its customers and the resulting

knowledge are to be used in future for other brands

Success factors in bringing together corporate strategy and corporate brand managementThe group management is responsible for a continuously strategic planning process. The

main and most important results will be communicated to all employees by the „Blueprint for theFuture“.Although Nestlé concentrates its attention to the six global brands, its overall strategy and brand management aims – in contrast to its competitors Kraft and Unilever – at a balance between global and local brands. The local anchoring of the brand management enables acommunication that considers the needs of the target group much better. Thus long-termcustomer relationships are built whích go far beyond rational purchase decisions, having the cost-benefit in mind. They rather bring out an emotional surplus value.

Best Practice Nestlé


Advertising is a Top-Level Matter

Advertising is too important to be delegated too far down the management structure, so there needs to be regular top-level contact between Nestlé and its agencies.

In particular, decisions on advertising strategy and creativity must be made at a high level.

It is also important that not too many levels are involved (it is awkward if seven levels can say no and one level can say yes).


Types of Advertising

Advertising

Product Institutional

Remind/ reinforce

•Remind a product

•Reinforce benefits

•Encourage repeat purchase

Competitive

•Emphasise unique benefits

•Compare with competition

Pioneering

•Information on new developments

Image building

•Reinforce image

•Create/ maintain character of organisation

Advocacy

•Communicate a view on an issue

Pioneering

•Explain a new product


The Five Ms of Advertising

Mission

•Sales goals•Advertising objectives

Money

Factors to consider:•Stage in PLC•Market share and consumer base•Competition and clutter•Advertising frequency•Product substitutability

Message

•Message generation•Message evaluation•Message execution•Social-responsibility review

Media

•Reach, frequency, impact•Major media types•Specific media vehicles•Media timing•Geographical media allocation

Measurement

•Communication impact•Sales impact


GradeTotal scoreCompanyRank2005

Rank2004

„Aldi“ is in FrontMarket check of trading firms

Explanation: The jury gives school-grades for seven equivalent categories. In order to improve graphicrepresentation the grades are transferred into scores. A grade of 1.0 transfers into 50 points, 2.0 transfers into 40 points etc. (6.0 = 0 points)

Source: bestseller


Roles of Advertising

Advertising also can be explained in terms of the four roles it plays in business and in society

Marketing

Communication

Economic

Societal


Integrated Marketing Communication

Marketing communication tools include advertising, sales promotion, direct marketing, public relations, packaging, and personal selling. In companies that use IMC, marketers coordinate all marketing communication messages to create synergy, which means each individual message has more impact working jointly to promote a product than it would be working on its own.


big

small big

Leading instruments ofintegrated communication

TV advertising

Print advertising

Poster advertising

Broadcast advertising

Cinema advertising

Instruments ofintegration

Above the line measures

Trade fairs

Event marketingFollowing instruments

Internet - CommunicationSponsoring

Personal tradeMultimedia - Communication

Direct mails

freedom order of communication design

meaning for theintegrated

communication


What is the company´s basic target ?What is the special marketing target ?

Summary of problems and chances

Confrontation of possible strategic options and decision out of that, whichwill be the most successful solution for a user / customer problem

Fixation of the communication platform

Above the line promotions ( AL )

Specific fixation of the problem,which is mainly to solve by AL promotions.

Out of that, the target of AL promotion results.

Definition and formulation of the specific PR target group, emotionally and rationally.

Mission concept: Design concept:

Learning effect AL - Message

Advertising

Specific fixation of the problem,which is mainly to solve byAdvertising.

Out of that, the Advertising target results.


Media concept: Design concept:

Learning effect Advertising Message

Public Relations ( PR )

Specific fixation of the problem,which is mainly to solve byPublic Relations.

Out of that, the PR target results.


Media concept: Design concept:

Learning effect PR - Message

Convenient Communication Model


Criteria for Selecting an Advertising Agency

Agencyselection

Specialism

Location/Accessibility

Track record

Type of helprequired

Relative size

Business ability

Compatibility/Empathy


Types of Agencies

Full Service Agencies

Specialized Agencies

Industry-Focused Agencies

Minority Agencies

Creative Boutiques

Media Buying Services

Virtual Agencies


What is Creative Advertising?

Benefits Strategy

The promotion emphasizes what the product can do for the user by translating the product feature or attribute into something that benefits the consumer. For example, a GM electric car ad focuses on the product feature (the car doesn’t use gas) and translates it into a benefit: lack of noise (no pistons, valves, exhaust).

Promise

A benefit statement looks to the future and predicts that something good will happen if you use the product. For example, Dial soap has promised for decades that if you use Dial, you will feel more confident.


What is Creative Advertising?

Reason Why

A type of a benefit statement that gives you the reason why you should buy something, although the reason sometimes is implied or assumed. The word “because” is the key to a reason-why statement. For example, an Amtrak ad tells you that travel on Amtrak is more comfortable than on a plane because Amtrak is a more civilized, a less dehumanising way to travel.

Unique Selling Proposition (USP)

A benefit statement that is both unique to the product and important to the user. The USP is a promise that consumers will get this unique benefit by using this product only. For example, an ad for a camera states, “this camera is the only one that lets you zoom in and out automatically to follow the action.”


Carefully blended mix of promotion tools

Integrated Marketing Communications

Consistent, clear and

compelling company

and product messages

Consistent, clear and

compelling company

and product messages

Advertising PersonalSelling

PublicRelations

SalesPromotion

DirectMarketing


Common Communication Platforms

Print and broadcast ads Contests, games, Press kits Sales presentations CataloguesPackaging-outer sweepstakes, lotteries Speechers Sales meetings MailingsPackaging-inserts Premiums and gifts Seminars Incentive programs TelemarketingMotion Pictures Sampling Annual reports Samples Electronic shopBrochures and booklets Fairs and trade shows Charitable donations Fairs and trade TV shoppingPosters and leaflets Exhibits Sponsorships Shows Fax mailDirectories Demonstrations Publications E-MailReprints of ads Coupons Community relations Voice mailBillboards Rebates LobbyingDisplay signs Low-interest financing Identity mediaPoint-of-purchase displaysEntertainment Company magazineAudiovisual material Trade-in allowances EventsSymbols and logos Continuity programsVideotapes Tie-ins

Advertising Sales Promotion Public Relations Personal Selling Direct Marketing


Sales promotion is a tool that cuts across all the components of the brand.

That is why the balance of tactics and strategy is so important in using Sales promotion effectively.

Sales promotion is a range of price and value techniques designed within a stratic frame work to achieve specific objectives by changing any part of the marketing mix, normally for a defined time period.

Marketing Tactics and Strategies


10 core promotional objectives

What Sales Promotion can Do?

Increasing VolumeIncreasing trial

Increasing repeat purchase

Increasing loyaltyWidening usageCreating interest

Creating awarenessDeflecting attentions from

priceGaining intermediary

supportDiscriminating among users


Samples:Samples: Offer of a free amount of a product or service delivered door to door, sent in the mail, picked up in a store, attached to another product, or featured in an advertising offer.

Coupons:Coupons: Certificates entitling the bearer to a stated saving on the purchase of a specific product: Mailed, enclosed in other products or attached to them, or inserted in magazine and newspaper ads.

Major consumer – promotional tools

Sales Promotion Techniques


Cash Refund Offers (rebates):Cash Refund Offers (rebates): Provide a price reduction after purchase rather than at the retail shop: consumer sends a specified “proof of purchase” to the manufacturer who “refunds” part of the purchase price by mail.

Price Packs (cents-off deals):Price Packs (cents-off deals): Offers to consumers of savings off the regular price of a product, flagged on the label or package. A reduced-price pack is a single package sold at a reduced price (such as two for the price of one). A banded pack is two related products banded together (such as a toothbrush and toothpaste).




Premiums (gifts):Premiums (gifts): Merchandise offered at a relatively low cost or free as an incentive to purchase a particular product. A with-pack premium accompanies the product inside or on the package. A free in-the-mail premium is mailed to consumers who send in a proof of purchase, such as a box top or UPC code. A self-liquidating premium is sold below its normal retail price to consumers who request it.

Frequency Programs:Frequency Programs: Programs providing rewards related to the consumer’s frequency and intensity in purchasing the company’s products or services.




Prizes (contests, sweepstages, games):Prizes (contests, sweepstages, games): Prizes are offers on the chance to win cash, trips, or merchandise as a result of purchasing something. A contest calls for consumers to submit an entry to be examined by a panel of judges who will select the best entries. A sweepstake asks consumers to submit their names in a drawing. A game presents consumers with something every time they buy- bingo numbers, missing letters – which might help them win a prize.




Patronage Awards:Patronage Awards: Values in cash or in other forms that are proportional to patronage of a certain vendor or group of vendors.

Free Trials:Free Trials: Inviting prospective purchasers to try the product without cost in the hope that they will buy.

Product Warranties:Product Warranties: Explicit or implicit promises by sellers that the product will perform as specified or that the seller will fix it or refund the customer’s money during a specified period.




Tie-in Promotions:Tie-in Promotions: Two or more brands or companies team up on coupons, refunds, and contests to increase pulling power.

Cross-Promotions:Cross-Promotions: Using one brand to advertise another noncompeting brand.

Point-of-Purchase (POP) Displays and Point-of-Purchase (POP) Displays and Demonstrations:Demonstrations: POP displays and demonstrations take place at the point-of-purchase or sale.




Major Business - and Sales-Force-Promotion Tools

Trade shows and conventions:

Industry associations organize annual trade shows and conventions. Business marketers may spend as much as 35 percent of their annual promotion budget on trade shows. Over 5,600 trade shows take place every year, drawing approximately 80 million visitors. Trade show attendance can range from a few thousand people to over 70,000 for large shows held by the restaurant or hotel-motel industries. Participating vendors expect several benefits, including generating new sales leads, maintaining customer contacts, introducing new products, meeting new customers, selling more to present customers, and educating customers with publications, videos, and other audiovisual material.



Sales contests:

A sales contest aims at inducing the sales force or dealers to increase their sales results over a stated period, with prizes (money, trips, gifts, or points) going to those who succeed.



Specialty advertising:

Specialty advertising consists of useful, low-cost items bearing the company’s name and address, and sometimes an advertising message that sales people give to prospects and customers.

Common items are ballpoint pens, calendars, key chains, flashlights, bags, and memo pads.


Promotional Mechanics

Classification of promotion mechanics

Promotional type Immediate Delayed

Value

Price

Free in-pack

Reusable container

Instant win

Home sampling

Free on-pack

Pence-off flash

Buy one, get one free

Extra-fill packs

In-store coupon

Finance offer

Free mail-in

Competition

Free draw

Self-liquidator

Charity promotion

Next purchase coupon

Cash refund

Cash share-out

Buy-back offer


Choosing the Right Agency!

A relationship with a sales promotion agency

normally starts with a pitchpitch!

Prepare the background information properly Don’t ask more than three agencies to pitch Write a proper sales promotion briefing and

allow time for it to be responded to. Decide quickly and objectively. Give the losers the chance to learn how they

could have done better


Promotional Objective

The business and marketing objectives are

established and it is known what sales promotions

you are going to do as marketing activities within a

campaign; so write a short promotional Briefing (two pages of A4).

The most important document!

Promotional briefing




What is the strategicstrategic nature of the brand – its positioning and differential advantage?ComingComing from six C´s and the marketing mix-offer.

1

What is the promotional objective – only oneonly one –2

Define how you will know it has been a success. Find the particular KKey PPerformance IIndicator (KPIKPI) that you need to measure whether you have achieved success.

3




Who are the peoplepeople whose behavior you want to influence? What are they like and what interest them?

4

What behavior behavior do you want them to reinforce or change – what exactly do you want them to do?

5

What are the operational constraintsoperational constraints of the promotion – budget, timing, location, product coverage and logistics?

6


The Brief to the Result

Possible concepts

Timings Communications

Brief

Short-list and check against objectives

Short-listed concepts

Budget Logistics Legalities

ST

AG

E 1

FE

AS

IBIL

TY

STAGE 1 FEASIBILITY



Timings Communications

Outline plans, visuals and copy

Check back to brief, evaluate and select

Budget Logistics Legalities

ST

AG

E 2

CH

EC

KIN

G

Top concept

Define success

STAGE 2 CHECKING



Finalize communication

materials

Finalizeadministration

Check all legalities

Make detailed operational plan

Finalize copy and

design

Finalize offer

materials

Establishevaluation

ST

AG

E 3

IMP

LE

ME

NT

Run the promotion

Evaluate results against success criterion and brief

STAGE 3 IMPLEMENT


Who Holds the Key to the Business Problem?

Factory Depot

Buyer

Shop counter

End-users

Wholesaler

Retail showroom

Retail showroom


The Nature of Internet Marketing

As more and more homes and businesses either get connected with or develop their own web-sites, the Internet has become an increasingly important tool of marketing.

Smith and Chaffey (2001) and Smith and Taylor (2002) summarise the main benefits of

investing in e-marketing as the 5Ss:



Sell. Selling goods and services online, potentially to a global market.

Serve. Using the website as a way of providingadditional customer service or of streamlining service delivery.

Save. Saving money in terms of the overheads associated with more traditional forms of doingbusiness.

Speak. Websites offer companies a chance to enter into one-to-one dialogue with customers more easily than ever before. As well as providing valuable feedback, with good database management, that dialogue can be the basis for fruitful customer relationship management.



Sizzle. A website that is well designed, both in terms of its content and its visual impact, can add an extra‘something’ to a brand or corporate image throughengaging, educating, and/or entertaining the visitorto the site.

Increasingly, organisations are introducingan element of fun into their websites to grab andretain attention. Interactive games, webcams and video feeds, cartoons, free downloads and relaxedinformality have all been introduced to keep theviewer’s attention and to make company andproduct information more interesting.



Whatever its purpose, and however much is spenton it, a website should provide a powerful supplementary marketing tool.

It should have all the creative flair of an advertisement, the style and information of a company brochure, the personal touch and tailored presentation of face-to-face interaction and, not least, always leave the visitor clear as to what action should be taken next.

For some small businesses, the internet can becomea valuable means of communicating with a potentiallyglobal audience easily and cost-effectively, freeingthem from the constraints of geographic catchmentareas.


E-Mail Marketing Evolution

First GenerationBroadcast/SPAM

•High volume/low cost•Send and forget•Generally not relevant

Second GenerationPermission marketing

•Responsible•Poorly segmented•Minimal personalisation•Approaching bulk mail

Third GenerationPrecision marketing

•Focus on individual•Dialog-based•Utilises reply button•Minimised opt-out•Builds brand affinity•Mail worth opening

Rizzi (2001), Copyright 2002 e-Dialog Inc.


The Principal Characteristics of the Internet asan Advertising Medium

Message can be changed quickly and easily Interactivity possible Can create own pages cheaply

Can advertise on others’ web pages Very low cost possible Very large audience potential

Direct sales possible High information content possible on own web pages

Limited visual presentation Audience not guaranteed ‘Hits’ may not represent interest – casual browsers Relies on browsers finding page Can create irritation Large numbers of target groups my not use Internet yet Creative limitations

Advantages Disadvantages


Marketing Uses of the Internet

Research and planning tool

Obtain market information Conduct primary research Analyse customer feedback and response

Distribution and customer service

Take orders Update product offerings frequently Help the customer buy online Process payments securely Raise customer service levels Reduce marketing and distribution costs Distribute digital products


Marketing Uses of the Internet

Communication and promotion Generate inquiries Enable low cost direct communication Reinforce corporate identity Produce and display product catalogues Entertain, amuse and build goodwill Inform investors Detail current and old press releases Provide basic product and location information Present company in a favourable light – history, mission, achievements, views, etc. Educate customers on the products, processes, etc. Inform suppliers of developments Communicate with employees Attract new jobs recruits Answer questions about the company and its products


Types of Service Suited to Fixed and Mobile E-Commerce

© Heinz G. Zenk – International Basic Seminar© Heinz G. Zenk – The Powerhouse of Marketing

A Promising Future – Until 2010 the Technical Problems are Solved

The cost of smart tags still limits its usage


Future of the Brand/Communication

Within the global capitalism, entertainment is the „opium for the people“, the meaning of moral is resulting by the new interaction of capitalism and entertainment. (Bosshart)



The society disintegrates into „choice communities“.

Individual rules replace the traditional social moral.

Faith will become the base of the living together.

Self obligation on time is the new moral norm. Instant

faith becomes an offer. ( Klippermann )



Will brands become a substitute religion for a new leisure time- and fun community ?

Brands replace increasingly cultural values:

In the USA, the symbolism of a Nike- or a McDonald´s sign, is better understood by young people than the symbolism of a curch cross

F6.0 advertising sales_promotion_and_public_relations

Marketing

Transcript of F6.0 advertising sales_promotion_and_public_relations