Mkt 440 Class3--Ad Biz-Branding.ppt

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Positioning, Branding & The Ad/Promo Industry Structure

Mkt 440

Prof. Bill White


Step One or TwoThe Target Market -- Needs, Wants, Expectations

Step One or TwoThe Positioning -- The Story

Brand Image & Competitive Advantage

Step Three“The 4 P’s”

Product ---- Price ---- Place ---- Promotion

The Marketing Mix


PositioningPositioning

A Product’s Positioning is The place your product occupies in consumers’ minds

relative to competing products. Think Brand Image, Benefit Promise, and Competitive Advantage.

Volvo, Southwest, 7/11, Subway, Atkins, American Express

It’s how you plan to compete in the marketplace. It’s the reason(s) customers should by your product, and not the competitors’.

Marketers must: Plan positions to give products the greatest advantage. Develop marketing mixes (“4 P’s”) to execute planned

positioning.


The Positioning Statement

The positioning statement guides the execution of the Integrated Marketing Communications message. Advertising Public relations Publicity Personal Selling Sales Promotions

What positioning statements led to this advertising slogans: http://advertising.utexas.edu/research/slogans/


Types of Positioning Strategies

Position the brand against its major competitor. “Starbucks doesn’t substitute quality with variety” is a

positioning statement that attacks the Diedrich (a competitor) position.

Position the brand away from the others in the category. “Starbucks isn’t just another coffee house” sets it apart

from other coffee houses. Position the brand as the category leader.

“Starbucks is preferred by more coffee drinkers than any other brand” establishes it as the leader.


Types of Positioning Strategies(Continued)

Position the brand to a specific consumer segment. “Starbucks is the business commuter’s favorite” identifies

the consumer. Position the brand as unique.”

“No other coffee house has beans, brew, and brewing machines” identifies Starbucks as one-of-a-kind.

Position the brand as having: A new benefit for the category. A better combination of benefits. A benefit of increased importance Same benefits as competition, but also a unique feature or

attribute. Value (price/quality) or lower price (Note: Be careful.)

Position the brand against an entire product class.


Structuring the Positioning Statement

“For (target audience), (brand) is the (superlative: “only, leading, first, best, etc.”) (product category) that (the benefit/does what).”

Proof/Support/Evidence supporting the statement. Features Demonstrations Research Results Seals of Approval Guarantees/Warranties Trial Offers and Samples Reputation Testimonials/Endorsements


Positioning and Branding

A brand is a name/mark that differentiates the product of one seller or group of sellers from competing products.

A brand name consists of words, letters, and numbers that can be vocalized.

A brand mark is the part of the brand that appears in the form of a symbol, design, distinctive color or lettering.

A trademark is a brand that has been given legal protection.


Positioning and Brand Image/Equity

Brand Image/Equity is the extra value that’s inherent in the product and/or the company.

A strong Brand Image/Equity provides . . . Brand awareness/familiarity Brand differentiation versus competition Brand esteem Brand preference Brand loyalty Product line extensions Trademark legal protection Trademark licensing


Positioning and Competitive Advantage

The most powerful positioning is one where you have a “U.S.P.”– a strong Competitive Advantage: U. Unique = Exclusive to you S. Selling = Important to the target P. Proposition = Benefit Promise and/or Proof


The IMC Message Typology

Figure 4-3, p.129


The IMC Biz

Organization is the Foundation of IMC Since there are so many partners involved in managing

brand relationships, integration is an organizational challenge.

IMC often involves organizational restructuring. A company cannot build relationships externally until it

builds them internally.


The Golden Triangle

Figure 3-1, p.83


The Bigger Picture of theMarketing Communication Players

Figure 3-2, p.83


Traditional Corporate Organization

Figure 3-3, p.85


Exhibit 6.5: The communication manager approves or coordinates all communications programs for the entire organization

Organization of A Large Advertiser/ Client


Cross-functionalPlanning and Management

A basic principle of IMC: Critical processes that affect customer relationships involve more than one department.

Thus, Cross-functional planning Primary purpose:

To improve internal communication.It involves many departments and functions.

Benefit of the cross-functional IMC team is to: Ensure consistency in all brand messages. Make sure the big creative idea is integrated in all messages. Coordinate the timing and scheduling of the various MC

programs. Help employees become less myopic.


Silos

Figure 3-6, p.90


Advertising Agency: an independent business, composed of creative and business people, who develop, prepare, and place advertising in advertising media for clients seeking customers for their products.

The Agency


MediaDept.

VPAcct. Svs.

VPMarketing

Presidentand CEO

AccountServices

CreativeDept.

ResearchDept.

Sales PromoDept.

The MediaPrintBroadcastInternet

ProductionPrintBroadcastInternet

ResearchSurveysFocus grpsSyndicated

Sales ProSamplingP,O,PPremiums

Advertise

r

Ad Agency

Supp

liers

Client/AccountV.P. Marketing Ad DirectorBrand Manager


The Full-Service Agency Acts as Marketing Partner. Diagnoses the Marketing and Brand Problem Sets Objectives and Develops Overall Strategic

Plan Provides All Support Services

Advertising Public relations/publicity Sales promotions

Premiums, contests, sampling, etc.Event marketingIn-store/collateral

Direct response marketing Research Internet and new media Barter


Exhibit 5.3: One Problem of any campaign is setting objectives that will work.


Exhibit 5.4: Organization of a Typical Full-Service Agency


Other Types of MC Agencies


Media Buying Services

Media buying services specialize in buying time and space, that is, placing brand messages in the media.


Public Relation Firms

Like advertising, public relation firms may also specialize in certain industries.

Main function of public relations firm is to counsel companies on how to better manage their relationships with their stakeholders.

Unlike advertising agencies, most public relation firms do not have a creative or media department.

One of the most valuable attributes a public relations firm can have is a good relationship with the press.


Direct-Response Agencies

Direct-response agencies are structured like advertising agencies. They deal with not only the mass media, but also mail, email and telemarketing services.

Some agencies may also have specialists who analyze and rent databases.

Support services include: Data shops List Brokers Printers Letter shops Creative services


Sales Promotion Agencies

Companies that do a lot of promotions, such as premium offers, sweepstakes, in-store special displays, etc. use sales promotion agencies.

These agencies are made up of three groups: Account service managers Creatives Production people


Some Other MC Agencies

Other MC agencies include: Corporate identity agencies Online Advertising Agencies Creative boutiques Talent and Production Agencies Creating Creative A La Carte Agency In-House Agency Rolodex Agency Event Planners In-House Services Freelancers


How Some Agencies Specialize

Many companies hire MC agencies that specialize in an industry or product category.

Different types of specialty agencies include: Business-to-Business Specialists Ethnic Agencies High-Tech Agencies In-House Agencies


Forms of Agency Compensation

Media Commissions (15%) Production Commissions or Markups

(17.65%) Fee/Retainer Arrangements Performance Fee


Agency Evaluation

Two basic types of evaluations: Quantitative audits Qualitative surveys

Evaluations are beneficial for several reasons: Company can determine if it is getting its money’s worth Agency gets valuable feedback Agency and company can determine how to work better

together.


Agency Client Relationships

Competing Accounts Agency/Client

Relationship Length Agency of Record Agency Multiple Offices Agency Networks

Mega-Agency Networks


The Agency/Client Relationship (Continued)

The agency/client relationship is critical to the successful functional of an IMC program.

Client trust can significantly affect the quality of its agency’s work, the smoothness of the working relationship, and the effectiveness of an IMC program.

A client’s attitude toward its agency – how it sees its agency – often determines the level of trust and respect.


For Profiles of Marketing/Advertising Jobs and Salaries

http://marketing.about.com/cs/marketingjobs/

http://www.ad-freaks.com/salaries.htm

http://www.payscale.com/default.asp


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