BUILDING THE BRAND
Communicating Marketing Strategy in a Changing World
Bases for Segmentation
The currency of business
Establishes competitive advantage
Is key to creating customer value
BRAND
Brands are the set of tangible and intangible attributes
perceived by the consumer
• Brands are more than just images, logos and ads….
• ….they are the culture through which consumers understand, value and experience the product
Brands
• We as consumers “affiliate” with brands because they meet our expectations. Once we affiliate, we are unlikely to seek any new information that would contradict the “brand culture.”
Brands
• As a result, powerful brands
– Leverages market dominance with the channel and retailers
– Protects market share– Builds equity in the company– Facilitates new product entry– Unite consumers around powerful values and
ideals
Brands
• Nike: defined American achievement, dedication and initiative “Just do It”
• Apple: represents the iconoclastic, creative, independent values of the information age
Brands
• Brand identity and value are communicated through:
• Retail channels Management & labor• Pricing Public relations• Packaging Sales force• Product Advertising• Internal corporate culture• Customer service• Warranties and guarantees
Brands
Using Advertising to Communicate Brand
It’s not enough anymore
Advertising: Creates and Reflects Contemporary Culture
• Public health issues
• Economic competition
• Consumerism
• Gap between rich and poor
• Symbolic communication
• Information overload
• Economic health
• Shifting cultural values
• Selling of political candidates
• Globalization of American culture
• Privacy
• Technology advancements
Common Criticisms
• Makes people believe they need things they really don’t
• Promotes stereotypes and poor lifestyles
• Lulls people into thinking that happiness can be achieved through purchasing
• Is crass and annoying
Can it also be…?
• An important tool to solve real business problems
• A social information tool• A driver of capitalism and contributor to GNP• A service to inform consumers • Essential for competitive marketing and
consumer choice• Add value to a company through brand building
How do we create advertising to meet marketing/brand
objectives?
…(and how do we do it in a world that changes
every day?)
Advertising vs. Marketing
• A subset of marketing• Concerned with
promoting and communicating marketing strategy to consumers
• Is the “P” of Promotion
• Defines the art of product strategy
• Focused on 4 “Ps”-– Price– Product– Place– Promotion
Marketing
• “The process of planning and executing the development, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organization objectives.”
» American Marketing Association
Marketing 4Ps
• Product: How do we create a product that satisfies the needs of consumers?
• Price: How do we price the product for consumer benefit (price elasticity of demand)?
• Placement: How do we distribute the product to reach consumers?
• Promotion: How do we communicate our product’s benefits to consumers?
Advertising
• Any paid form of non-personal communication about an organization, product, service or idea by an identified sponsor
• Is a central component of the promotional mix: what combination of media/communication will we use to deliver the message?
Advertising
–Create awareness
–Change attitudes
–Change behavior
The Growth of Advertising and Promotion
Expenditure in Billions of Dollars
$0 $50 $100 $150 $200 $250 $300
AdvertisingOutside U.S.
U.S. SalesPromotion
U.S. Advertising
2002
1980
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Traditional CompensationTraditional Compensation Performance Based Compensation Performance Based Compensation Traditional CompensationTraditional Compensation Performance Based Compensation Performance Based Compensation
Media AdvertisingMedia Advertising Multiple Forms of CommunicationMultiple Forms of Communication
Mass MediaMass Media Specialized MediaSpecialized Media
Manufacturer DominanceManufacturer Dominance Retailer DominanceRetailer Dominance
General FocusGeneral Focus Data Based MarketingData Based Marketing
Low Agency AccountabilityLow Agency Accountability Greater Agency AccountabilityGreater Agency Accountability
Limited Internet AvailabilityLimited Internet Availability Widespread Internet AvailabilityWidespread Internet Availability
Media AdvertisingMedia Advertising Multiple Forms of CommunicationMultiple Forms of Communication
Mass MediaMass Media Specialized MediaSpecialized Media
Manufacturer DominanceManufacturer Dominance Retailer DominanceRetailer Dominance
General FocusGeneral Focus Data Based MarketingData Based Marketing
Low Agency AccountabilityLow Agency Accountability Greater Agency AccountabilityGreater Agency Accountability
Marketing Revolution and Shifting Tides
From Toward
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising in Transition
• Globalization
– More clients demand agencies offer:• Global coverage• Wide range of communication services, i.e.
advertising, PR, events, direct marketing• Total media services: ability to place media in all
channels, globally
Advertising in Transition
• Media Clutter and Fragmentation
– More and more media channels in print, broadcast and even alternative media mean its harder to find a mass audience
– Advertising needs to be more creative, strategic, guerilla-like to stand apart
Advertising in Transition
• Budget fragmentation
– More and more ad dollars are shifting out of traditional advertising into sales promotions,
i.e. coupons, sweepstakes, offers, “deals.”
Advertising in Transition
• New technology
– Internet, cell phones, wireless technology, video games all change the landscape of advertising and change the relationship between the consumer and company
– TIVO and other recording devices make it possible to skip over advertising
Advertising in Transition
• The rise of Integrated Marketing Communications
– IMC refers to building a communications campaign through multiple channels, i.e. advertising, sales promotions, PR, direct mail, sales, internet, etc. to extend and amplify the brand message…to create the “brand culture”
IMC–Audience Contact Points
Marketing Communications
Audience
Marketing Communications
Audience
Point of PurchasePoint of
Purchase PublicityPublicity Public Relations
Public Relations PackagingPackaging
DirectResponse
DirectResponse
Sales Promotion
Sales Promotion
EventsEventsOutdoorOutdoorBroadcast Media
Broadcast MediaPrint MediaPrint Media
Direct MailDirect Mail
Internet/Interactive
Media
Internet/Interactive
Media
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising in Transition
• Consumer fatigue and cynicism
– Consumers are “burnt out” by advertising and tune it out
– Young consumers, in particular, don’t believe advertising and are cynical bout its attempts to “manipulate” consumers
Advertising in Transition
• Drive for quantification
– More and more clients want to see a return on investment…they want to be able to see that advertising had some effect, i.e. increased sales, generated awareness or a response
Advertising in transition
• Growing Importance of the “Brand”
– Brand loyalty is the “holy grail” of advertising. It ensures repeat customers, stabilizes sales
IMC and Branding
Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.
Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.
2003 Brand Value(Billions of Dollars)
1. Coca-Cola$70.5
2. Microsoft$65.1
3. IBM$51.8
4. GE $42.35. Intel
$31.16. Nokia
$29.47. Disney
$28.08. McDonald’s
$24.79. Marlboro
$22.210. Mercedes
$21.4
IMC plays a major role in the process of developing and sustaining brand identity and equity.
IMC plays a major role in the process of developing and sustaining brand identity and equity.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising in Transition
• Customization and Relationship Building
– Consumers demand a more personalized message and relationship with the companies they buy from
Advertising in Transition
• Growing Importance of Retailers
– Large retailers have more control of how the product is presented to the consumer, what products are carried in the stores
– Large retailers now have their own store brands to compete with national brands
Advertising in Transition
• Consolidation of ad agencies
– More than 60% of all advertising revenue is controlled by 4 large ad conglomerates
– Publicis (Paris)– WPP (London)– Interpublic (New York)– Omnicom (new York)
1. A detailed situation analysis1. A detailed situation analysis
2. Specific marketing objectives2. Specific marketing objectives
3. A marketing strategy and program3. A marketing strategy and program
4. A program for implementing the strategy4. A program for implementing the strategy
5. A process for monitoring and evaluating performance5. A process for monitoring and evaluating performance
1. A detailed situation analysis1. A detailed situation analysis
3. A marketing strategy and program3. A marketing strategy and program
4. A program for implementing the strategy4. A program for implementing the strategy
2. Specific marketing objectives2. Specific marketing objectives
The Marketing Plan
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
AdvertisingAdvertising
Direct MarketingDirect Marketing
Interactive/Internet Marketing
Interactive/Internet Marketing
Sales PromotionSales Promotion
Publicity/PublicRelations
Publicity/PublicRelations
Personal SellingPersonal Selling
AdvertisingAdvertising
Direct MarketingDirect Marketing
Interactive/Internet Marketing
Interactive/Internet Marketing
Sales PromotionSales Promotion
Publicity/PublicRelations
Publicity/PublicRelations
Basic Elements of the Promotional Mix
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Primary vs. Selective Demand Advertising
Primary vs. Selective Demand AdvertisingPrimary vs. Selective Demand Advertising
Primary vs. Selective Demand Advertising
Business-to-Business AdvertisingBusiness-to-Business Advertising
Organizations
National AdvertisingNational Advertising
Retail/Local AdvertisingRetail/Local Advertising
Professional AdvertisingProfessional Advertising
Trade AdvertisingTrade Advertising
National AdvertisingNational Advertising
Retail/Local AdvertisingRetail/Local Advertising
Business-to-Business AdvertisingBusiness-to-Business Advertising
Professional AdvertisingProfessional Advertising
Classifications of Advertising
Consumers
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
DirectResponse
Advertising
DirectResponse
Advertising
DirectResponse
Advertising
DirectResponse
Advertising
DirectMail
DirectMail
CatalogingCataloging
TelemarketingTelemarketing
InternetSales
InternetSales
ShoppingChannelsShoppingChannels
DirectMail
DirectMail
TelemarketingTelemarketing
CatalogsCatalogs
ShoppingChannelsShoppingChannels
Direct Marketing is Part of IMC
DirectMarketing
DirectMarketing
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Builds and Maintains Customer
Relationships
Builds and Maintains Customer
Relationships
Obtains Customer Database
Information
Obtains Customer Database
Information
Communicates and Interacts With Buyers
Communicates and Interacts With Buyers
Provides Customer
Service and Support
Provides Customer
Service and Support
Educates or Informs
Customers
Educates or Informs
Customers
A Persuasive Advertising
Medium
A Persuasive Advertising
Medium
A Sales Tool or an Actual Sales Vehicle
A Sales Tool or an Actual Sales Vehicle
Obtains Customer Database
Information
Obtains Customer Database
Information
Communicates and Interacts With Buyers
Communicates and Interacts With Buyers
Provides Customer
Service and Support
Provides Customer
Service and Support
Educates or Informs
Customers
Educates or Informs
Customers
A Persuasive Advertising
Medium
A Persuasive Advertising
Medium
A Sales Tool or an Actual Sales Vehicle
A Sales Tool or an Actual Sales Vehicle
Using the Internet as an IMC Tool
TheInternet
TheInternet
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Consumer-oriented
• [For end-users]
• Trade-oriented• [For resellers]
Sales Promotion Tools
EventsEvents
Loyalty ProgramsLoyalty Programs
Bonus Packs Bonus Packs
Refunds/Rebates Refunds/Rebates
Contests/SweepstakesContests/Sweepstakes
PremiumsPremiums
SamplesSamples
CouponsCoupons
CoopAdvertising
CoopAdvertising
TradeShowsTradeShows
TrainingProgramsTraining
Programs
POP DisplaysPOP Displays
TradeAllowances
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Introduce New Products
Introduce New Products
Get Existing Customers to
Buy More
Get Existing Customers to
Buy More
Attract New Customers
Attract New Customers
Maintain Sales In Off Season
Maintain Sales In Off Season
Increase Retail Inventories
Increase Retail Inventories
Tie In Advertising & Personal
Selling
Tie In Advertising & Personal
Selling
Enhance Personal Selling
Enhance Personal Selling
Combat Competition
Combat Competition
Introduce New Products
Introduce New Products
Get Existing Customers to
Buy More
Get Existing Customers to
Buy More
Attract New Customers
Attract New Customers
Maintain Sales In Off Season
Maintain Sales In Off Season
Increase Retail Inventories
Increase Retail Inventories
Tie In Advertising & Personal
Selling
Tie In Advertising & Personal
Selling
Enhance Personal Selling
Enhance Personal Selling
Various Uses of Sales Promotion
SalesPromotion
SalesPromotion
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
InterviewsInterviewsInterviews Interviews
FeatureArticlesFeatureArticles
SpecialEventsSpecialEvents
PressConferences
PressConferences
NewsReleases
NewsReleases
FeatureArticlesFeatureArticles
SpecialEventsSpecialEvents
NewsReleases
NewsReleases
Publicity Vehicles
PublicityVehiclesPublicityVehicles
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Corporate AdvertisingCorporate
Advertising Cause-related
MarketingCause-related
Marketing
PublicityVehicles
CommunityActivities
Public AffairsActivities
SpecialPublications
Special EventSponsorship
PublicityVehicles
CommunityActivities
Public AffairsActivities
SpecialPublications
Public Relations Tools
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Typical Full-Service Agency Organization
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
WritersArt Directors
Traffic
TVProduciton
Traffic
PrintProduction
VP CreativeServices
AccountExecutive
AccountSupervision
VP AccountServices
Media Research SalesPromotion
VP MarketingServices
Personnel Accounting Finance
OfficeManagement
VP Managementand Finance
President
Board ofDirectors
Services Provided by Agencies
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Agency ServicesAgency Services
The link between agency and client
Managed by the Account Executive
The link between agency and client
Managed by the Account Executive
Research department may design and execute research programs
Media department may analyze, select and contract media resources
Research department may design and execute research programs
Media department may analyze, select and contract media resources
Creation and execution of ads
Copywriters, artists, other specialists
Creation and execution of ads
Copywriters, artists, other specialists
Marketing Services
Marketing Services
Account Service
Account Service
Creative ServicesCreative Services
Marketing Services
Marketing Services
Account Service
Account Service
CommissionsMethod
CommissionsMethod
Cost-PlusAgreementsCost-Plus
Agreements
PercentageCharges
PercentageCharges
FeeArrangements
FeeArrangements
Incentive-BasedPayment
Incentive-BasedPayment
CommissionsMethod
CommissionsMethod
Cost-PlusAgreementsCost-Plus
Agreements
PercentageCharges
PercentageCharges
FeeArrangements
FeeArrangements
Methods of Agency Compensation
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
CompensationMethods
CompensationMethods
Positioning Through Marketing StrategiesPositioning Through Marketing Strategies
Selecting Market To TargetSelecting Market To Target
Determining Market SegmentationDetermining Market Segmentation
Identify Markets With Unfulfilled NeedsIdentify Markets With Unfulfilled Needs
Selecting Market To TargetSelecting Market To Target
Determining Market SegmentationDetermining Market Segmentation
Identify Markets With Unfulfilled NeedsIdentify Markets With Unfulfilled Needs
The Target Marketing Process
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
BehaviorBehavior
BenefitsBenefits
OutletsOutlets
BenefitsBenefits
OutletsOutletsBehaviorBehavior
PsychographicPsychographic
GeographicGeographic
DemographicDemographicPsychographicPsychographic DemographicDemographic
GeographicGeographic
Bases for Segmentation
CustomerCharacteristics
CustomerCharacteristics
SocioeconomicSocioeconomic
BuyingSituationBuying
Situation
UsageUsage
SocioeconomicSocioeconomic
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
What Position Do We Have Now?
What Position Do We Have Now?
Do We Have the Money To Do the
Job?
Do We Have the Money To Do the
Job?
What Position Do We Want To
Own?
What Position Do We Want To
Own?
From Whom Must We Win This Position?
From Whom Must We Win This Position?
Do We Have the Tenacity To Stay
With It?
Do We Have the Tenacity To Stay
With It?
Do We Have the Tenacity To Stay
With It?
Do We Have the Tenacity To Stay
With It?
Do We Have the Money To Do the
Job?
Do We Have the Money To Do the
Job?
From Whom Must We Win This Position?
From Whom Must We Win This Position?
What Position Do We Want To
Own?
What Position Do We Want To
Own?
What Position Do We Have Now?
What Position Do We Have Now?
Does Our Creative Strategy
Match It?
Does Our Creative Strategy
Match It?
Developing a Positioning Strategy
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
ThePosition
ThePosition
By Attributes and Benefits?By Attributes and Benefits?
By Price or Quality?By Price or Quality?
By Use or Application?By Use or Application?
By Product Class?By Product Class?
By Product User?By Product User?
By Competitor?By Competitor?
By Cultural Symbols?By Cultural Symbols?
By Attributes and Benefits?By Attributes and Benefits?
By Price or Quality?By Price or Quality?
By Use or Application?By Use or Application?
By Product Class?By Product Class?
By Product User?By Product User?
By Competitor?By Competitor?
Positioning Strategies
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
How shouldHow shouldwe position?we position?
Top Related