advertising managment ppt part 1
TRANSCRIPT
ADVERTISING MANAGEMENT
Part 1
Eastern Institute of Management2nd Year 1st Semester
The raw material of Advertising, is life….
• It’s the business of inspiring people. Yet, we’re most uninspired.
• Its’ the business of knowing everything about everything.Yet, we know little about just a few things.
• We believe we’re in a borderless world. Yet, we barricade our curiosity.
• We’re in the sensorama business. Yet, we don’t use most of our senses.
• You don’t need wings to fly. Just an open mind. And don’t give me excuses like “Where’s the time?”
• Do you discover one new thing in your life each day?• Enrich By One: Live your life that way…
A step ahead
• We were in the information age. We are now in the knowledge domain.
• The only way you win with colleagues and clients is when you knowas much if not more about their business.
• If you work on real estate, do you know about what is happening inthe Ropponji Hills district in Japan or for that matter Canary Wharfin London or the 50 Gramercy Park project in New York?
• Knowledge is the next battlefront. The soldier on that is the generalof tomorrow.
• Ahead By One: Live your life that way...
Course Content
1. Advertising’s Role in the Marketing Process2. Legal/Ethical/Social Aspects of Advertising3. Process of Communication – Wilbur Schramm Model4. Theory of Cognitive Dissonance/Advertising Strategy5. DAGMAR approach 6. Stimulation of Primary/Selective Demand – Positioning7. Campaign Planning/Brand Management
Copy/Logo/Illustration/Appeal/Layout8. Media Planning, Budgeting and Evaluation Press/TVC
Course Content…Contd
9. Rationale of Testing Opinion and Aptitude Test
10. Recognition/Recall11. Advertising Agency :
Selection/Compensation/Appraisal12. Advertising vs Consumer Behaviour13. Sales Promotions/Tactical vs Thematic/Retail14.
National/Co-operative/Political/International/Public Service Advertising
Expectations from you…ReadSee
ExperienceApply
…as the raw material of advertising is life
Advertising’s Role in the Marketing Process
What is Marketing ?
The American Marketing Association, defines ‘Marketing’ as
• the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods (products ~brands) and services to create exchanges that satisfy individual and organizational objectives’
Marketing Communication Mix
Marketing Objectives & Strategy
Marketing Plans
ProductionDistribution (Place) Promotion
Pricing Planning
The Promotion Mix
Advertising
DirectMarketing
Interactive/InternetMarketing
Publicity/Public Relations
PersonalSelling
Target Audience
SalesPromotion
Advertising
• originates from the Latin Word ‘ad vertere’ which means ‘to turn the mind towards’
• Advertising is the use of media to inform consumers about something and/or to persuade them to do something in effect. It brings products/brands and consumers together and then modulates the relationship between them
Question ?
• If Advertising is a part of Marketing, then is it all about Communicating ?
Example..When I say…
• A Cola• A Photocopier• A Photographic Film
Material• A Microprocessor• An Expensive Swiss Watch• Cartridge Blades for
Shaving• Main Frame Computers• Operating Software
What comes to your mind ?
• Coca Cola• Xerox• Kodak• Intel• Rolex• Gillette• IBM• Microsoft
What do these communicate to you?
The Law of Advertising
• Advertising, today, is all about ‘Building’ brands and ‘Positioning’ brands in the mind of the consumer and not just communicating about it.
What is a Brand ?
• A Brand is not a product : it is the product’s
source and it defines its identity in time.
• The value of a brand lies in its capacity to
generate cash flows.
• A brand is a landmark…it is enduring.
In Effect….
• A Brand is an Identity(like all famous personalities has its distinctiveness)
From a long term point of view,We need to win ‘share of mind’ rather than ‘share of space’
Some quick examples & an exercise…
Brand Positioning Exercise : Category Soap
• Lifebuoy• Liril• Lux• Santoor• Dove• Ayush• Dettol• Hamam• Aramusk
• Hygiene• Freshness• Beauty• Goodness-Sandalwood• Moisturizer• Herbal• Antiseptic• Family• Masculinity
Corporate Advertising
Types of Corporate Advertising
Image AdvertisingEvent sponsorshipAdvocacy advertisingCause-related advertising
Advertising done to promote the interests of the firm by enhancing its
image, assuming a position on a particular issue or promoting a
certain cause
Objectives of Corporate Advertising
Create a positive image for the firmCommunicate the organization’s viewpoint on
various issuesBoost employee moraleSmooth labor relationsHelp newly deregulated industriesHelp diversified companies establish an
identity
Chevron Engages in Image Advertising
Event Sponsorship
Events used for sponsorship:• Sporting events• Music/entertainment• Festivals• Arts/cultural events• Causes
Event Sponsorship is a form of marketing communications whereby an organization
becomes involved with a particular event by developing sponsorship relations.
Advocacy Advertising
Advocacy advertising is the propagation of ideas and elucidation of controversial social issues of public importance in a manner that supports the interests of
the sponsor
The San Diego Zoological Society
Cause Related Marketing
Cause related marketing is a form of marketing whereby companies link with charities or nonprofit organizations as
contributing sponsors
KitchenAid uses cause-related marketing
Try Reading This
Olny srmat poelpe can raed tihs.
cdnuolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdanieg. The
phaonmneal pweor of the hmuan mnid, aoccdrnig to a rscheearch at Cmabrigde Uinervtisy,
it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoatnt tihng is taht the frist and lsat ltteer be in the rghit pclae. The rset can be a taotl mses and you can sitll raed it wouthit a porbelm.
Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Amzanig huh? yaeh and I awlyas tghuhot slpeling was ipmorantt!
Direct Marketing
• When organizations communicate directly with target consumers to generate a response and/or a transaction.
• It’s not just direct mail but a host of activities such as database management, direct selling, telemarketing, multi level marketing, and direct response ads, catalogue selling etc.,
• Eg : L L Bean, Dell, Tupperware, Amway
Interactive/Internet Marketing
• Using the internet and the world wide web as the medium for exchange of information and transactions
• Eg : Amazon.com, ebay.com• Eg : Nike ‘Whatever’ campaingn
Sales Promotion
• Are those activities that provide extra value or incentives to the sales force, the distributors/retailers or the ultimate end consumers and can stimulate immediate sales.
• Consumer Oriented Sales Promotions : Coupining, sampling, Premium, Rebates, Contests, and Point of Purchase Materials
• Trade Oriented Sales Promotions : Merchandising Allowance, Price Deals, Sales Incentives, Trade Shows, Dealer Meets,
Public Relations and Publicity
GeneralPublic
Employees
Suppliers Stockholders
Customers
CLIENT
Public RelationsTo manage relationships with the Public
Public Relations Management Process
Determination and evaluation of public attitudes
Identification of policies and procedures of an organization
Development and execution of the program
Marketing Public Relations (MPR) Functions
Building marketplace excitement before media advertising breaks
Creating advertising news where there is no product news
Introducing a product with little or no advertising
Providing a value-added customer service Building brand-to-customer bonds Influencing the influentials/opinion leaders Defending products at risk and giving
customers a reason to buy
Public Relations Audiences
Employees of the firmStockholders and investorsCommunity membersSuppliers and customersThe mediaEducatorsCivic and business organizationsGovernmentsFinancial groups
Public Relations Tools
Press releases
Press conferences
Exclusives
Interviews
Community involvement
The internet
Example of a Press Release
Reebok Used a Press Conference to Announce the
Sponsorship of Shakira
PR Publications
Inserts Enclosures Annual reports Posters Bulletin boards Exhibits Audiovisuals Position papers Speeches
News releases Media kits Booklets Leaflets Pamphlets Brochures Manuals Books Letters
Advantages of Public Relations
Credibility
Cost
Avoidance of clutter
Lead generation
Selectivity
Image building
Criteria for Measuring PR Effectiveness
Total number of impressions . . . Over time On the target audience On specific target audiences
Percentage of . . . Positive articles over time Negative articles over time
Ratio of positive to negative articlesPercentage of positive and negative
articles by . . Subject Publication Reporter Target audience
Publicity
Key points regarding publicity:
Publicity is generally short-term focused Publicity is not always under the control of
the firm Publicity can be negative as well as
positive
Publicity involves the generation of news about a company, product, service, brand or person in various media. It is a subset of the
public relations effort.
The Power of Publicity
Perceived as more credible
Often perceived as endorsed by the medium in which it appears
Often has high news value
Often generates high frequency of exposure
Responding to Negative Publicity
Using Positive Publicity
Advertising Publicity
Tentative
Low
Unspecified/Low
Undetermined
Advertising Versus Publicity
Great
Lower
Achievable
Schedulable
Specific/High
High
Specifiable
Undetermined
Higher
Little
Factor
Control
Credibility
Reach
Frequency
Cost
Flexibility
Timing
Personal Selling
• A form of person to person communication where a seller attempts to assist and/or persuade prospective buyers to purchase a company’s product or service or to act on an idea.
• Eg. Real Estate/Insurance, NGO cause, PUBLIC
Selection Criteria of the Promotion Mix
0
2
4
6
8
10
12
Awareness Curiosity Trial Purchase Post Purc.
Purchase Decision Sequence
Effec
tiven
ess
Advertising PR DM Prsnl Slng Sales Promo
Advertising RegulationLegal, Moral and Ethical Aspects of Advertising
Federal Trade Commission (US)
• Promotional practices of the Tobacco and Alcohol Industry
• Health Claims in the food Industry• Children’s Advertising : Toy Industry – “Dial A
Santa”• Advertising to the Elderly : Health Safety,
Financial Security• Environment
50 cases in nearly 100 million in judgement
What is Deception ?
• Conceptually Deception exists when as Advertisement is introduced into the perceptual process of some audiences and the output of that perceptual process – Differs from reality of the situation– Affects buying behaviour to the detriment
of the customerThe ad may not be false but the perception
may be
More meaning to Deception
• There is a misinterpretation, omission or practice that is likely to mislead
• The consumer is acting responsibly (or reasonably) in the circumstances
• The practice is material and consumer injury is possible because consumers are likely to have chosen differently if there was no deception
Misrepresentation or Omission5 of the 13 causes
• When an Ad suggests a small difference is important : eg Tar level in cigarettes
• Artificial product demonstrations : • Using an ambiguous or easily confused phrase :
eg “government supported’ meaning ‘government approved’ attorneys claiming to be specialist/certified
• Implying that a benefit that does not fully or partially exist : eg Efficen no Aspirin effect
• Implying that a product benefit is unique to a brand : eg Wonder Bread built bodies
Puffery
• A subjective statement of opinion about a products quality : great/best/ can’t get any closer/better deal etc.,
Neither have been proved true neither false
• Poetic License or allowable exaggeration– BMW : The Ultimate Driving Machine, Bayer
Aspirin – The Wonder Drug• Is an exaggeration extended to the point of
outright spoof that is obviously not true : Snapple – Made from the best stuff on earth
Legal, Ethical, Social Aspects of Advertising
You Judge
The deeper meaning
• Legal: pertaining to, or according to law
• Ethical : moral principles and values that given the actions and decisions of an individual or a group - relating to morales, principles
• Social : pertaining to society, organized community
The Implications
• Conceptually, deception exists when an advertising’s input to the perceptual process of the TG and the output of that process a) differs from the reality of the situation b) affects buying behaviour to the detriment of the consumer
• According to the Ferderal Trade Commission Act (FTC) passed in the US in 1914, deception will be found if there is a misrepresentation or omission that is likely to mislead the consumer to acting responsibly
The Implications
• Misrepresentation or omission can occur when an ad contains the incorrect implication that : a) test conducted scientifically b) a benefit exists c) claim is substantiated
• Puffing, the subjective statement concerning a products quality using terms such as ‘best’ is permissible
• The AAI and the Consumer Forum• Trademark protection/Self Regulations• Social Implications/Ethical Issues• Health and Environment Issues• Politically being correct : Gender/Sexual
Preferences
Legal Issues in Advertising
IPR
• Trade Mark Signs (Word, Colour, Picture etc.,)
• Patents Inventions (Products or Processes)• Designs• Copyright• Trade Secrets• Patents
Ethical Issues in Advertising
Starbucks Case Study
Advertising • Definition : Advertising is a public notice
meant to convey information and invite patronage or some other response.
Advertising Controversy• Information represents a distorted image of
reality• Response is negative
Public relations strategies• Mitigating harm• Responding to stakeholders needs• Repairing image
Ethical principles that apply in handling Advertising controversies
The Starbucks Case
• To some this was clearly offensive after 9/11
• To others this image is innocuous
New York Post, June 18th 2002:
“Starbucks Yanks Ad Mocking 9/11”
"As a New Yorker who watched the whole [Sept. 11] incident outside my window…seeing the poster in Starbucks directly across from Ground Zero adds some resonance that perhaps the people in Seattle did not grasp," fumed customer Gregory Moore, who first complained to the Post.
Starbucks response
"We deeply regret if this ad was in any way misinterpreted to be insensitive or offensive, as this was never our intent. The poster, promoting Tazo Citrus and Tazoberry beverages, was designed to create a magical place using bright colors and whimsical elements such as palm trees and dragonflies."
Starbucks Press Release 6/16/2002
Why Recognizing the Ethical Dilemma Matters
• These are immediate decisions which will forever affect the public's opinion of the company and the value of the world wide brand.
• If the company does not identify or recognize ethical aspects of crisis, it’s too late.
Schemas and Scripts: When Are You in An Ethical
Dilemma?• Starbucks Collapse into Cool:
– Action: Recognize post-9/11 environment & immediately pull the ads
– Result: stakeholders protected
Social Aspects of Advertising
The advertising philosophy of United Colors of Benetton is based on Luciano Benetton's belief that 'communication should not be commissioned from outside the company, but conceived from within its heart.'
“All the colors of the world” was one of the first slogans to appear in Benetton ads, and was later altered to “United Colors of Benetton.” The concept of united colors was such a strong one that for the first time in its history, the company adopted the slogan as its actual logo. Creative Head : Oliviero Toscani
Benetton’s long journey toward its destiny as a subverter of stereotypes began with its cooperation with Oliviero Toscani and the images of the 1986 campaign. Happy groups of multiracial kids were replaced by “couples” representing an all-new interpretation of difference. In this cycle, the word “different” became a close cousin of “controversial.” Benetton learned that dealing with the issue of difference within the process of advertising is not an easy task. Often, an attempt to bring different individuals together can lead to conflict instead of happiness and euphoria.
After equality and the exaltation of differences, Benetton turned to the reality of what is common to all and shared by humankind. The dialogue that Benetton had begun with its “consumers” (whom it had always viewed, above all, as men and women) gained depth.In 1991, during the Gulf War, this image was created, a photo of a war cemetery: To opposition against the irruption of “death” as an advertising subject, Benetton answered with a birth, the famous image of a newborn baby still attached to the umbilical cord.
At this point, the language of Benetton communication changed radically. With the February ’92 campaign came the scandal of planetary proportions. These ads showed news photos of real, high-drama situations: a man dying of AIDS, a soldier gripping a human thigh bone, a man assassinated by the Mafia, a car on fire, a ship being
stormed by emigrants.
The reaction to these real-life photos was sometimes violent. Many publications in several countries refused to print the campaign. By eliminating the product from its ads, violating the taboo of disagreeable themes, associating its name with the representation of conflict and pain and, above all, abandoning the false, comfortable world of advertising stereotypes, Benetton cracked the foundation that held up the culture, language and specificity of the classic advertising message.
King James I counterblaste
• ...a custom lothesome to the eye, hateful to the nose, harmful to the brain, dangerous to the lungs, and in the black and stinking fume thereof, nearest resembling the horrible stygian smoke of the pit that is bottomless (1604)
Tobacco in Society
• Unique consumer product– Kills 1 in 2 – Addictive– Almost unregulated
• Pervasive drug use – Nicotine self-administration– Dirtiest possible delivery system– 10 million dependent on nicotine
Who smokes?• 13m smokers
– 28% men– 26% women– 15% professional– 39% manual unskilled
• 82% start as teenagers• 70% want to quit
– 4m try in any year– c. 300,000 succeed – 10m ex-smokers
Health impacts• Harm to smokers
– 120,000 UK premature deaths per year– over 50 health impacts– addiction c.10m dependent in the UK
• Harm to others– lung cancer, heart disease, asthma– pregnancy complications and cot death – 17,000 hospital cases per year in under-5s– welfare
Some Impacts
• Cancer• Heart & Circulation• Respiratory• 20 fatal illnesses• 50 non-fatal illnesses • Widespread addiction• Cost burden• Productivity
• Deforestation• Indoor air pollution• Waste & Litter• Ozone depletes
Pesticides• Labour exploitation• Fires• Criminal activity
Teenage Smoking
Politics: Two Views
• A legal adult consumer product that people are free to choose if they want to enjoy the pleasure of smoking, knowing and accepting the widely publicised and usually overstated risks.
• A lethal product with over 50 known health impacts - including harm to non-smokers - sold by a predatory industry which nurtures teenage smoking until nicotine addiction takes over.
How it works - part 1
Younger adult smokers are the only source of replacement smokers... If younger adults turn away from smoking, the industry must decline, just as a population which does not give birth will eventually dwindle.
(RJ Reynolds, 1984)
How it works - part 2
A cigarette for the beginner is a symbolic act. I am no longer my mother's child, I'm tough, I am an adventurer, I'm not square …
As the force from the psychological symbolism subsides, the pharmacological effect takes over to sustain the habit.
(Philip Morris,1969)
Responses
• Informed choice v. disinformation• Tobacco promotion• Taxation• Smoking in public and workplaces• Smoking cessation support• Reduce harmfulness of the product
Warning...
“The tobacco industry has succeeded where many health education programs have failed because they capitalize on the deep social needs that most compel adolescents: to fit in, to exert independence from parental control, and to demonstrate physical agility and sexual allure.”
Smoking in public places
Process of Communication Wilbur Schramm Model
Linear Model of Communication
Realms ofUnderstanding
Realms ofUnderstanding
Source Encoding Decoding Receiver
MESSAGE
Noise NoiseFEEDBACK
SENDER RECEIVER
CHANNEL
Linear Model
Wilbur Schramm (1955) – Basic Model of Communication
1. Source : Individual/Organization sending the message
2. Encoding : transferring intended message to symbolic style that can be transmitted
3. Signal : transmission through particular media4. Decoding : understanding and interpreting the
symbolic style5. Receiver : Individual/org receiving the message6. Feedback : Receivers Communication Back to source7. Noise : distortion of the communication message
Realms of Understanding
The concept ‘realms of understanding’ is an important element in the concept of communication process because it recognizes that successful communications are more likely to be achieved if the source and the receiver understand each other. This understanding concerns attitudes, perceptions, behaviour, and experience.
The Other Forms/Role Players
• One Step• Two Step• Multi Step• Word of Mouth• Opinion Leaders• Opinion Formers• Opinion Followers
Process of Adoption
New Product Adoption Theory
• ADOPTION PROCESS - The consumer decision stages that lead to
innovation acceptance/rejection - A micro process process that focuses on
internal forces of the consumer* Intra Personal (Psych) Influences* Inter Personal (Social) Influences* Product Selection Criteria
Process of Adoption
Knowledge ConfirmationImplementationDecisionPersuasion
Communication Channels
Prior ConditionsNeeds/Problems
SocioeconomicPersonalityCommunication
Relative AdvantageCompatibilityTriability
Adoption
Rejection
Contd. AdoptionLater Adoption
Discontinuance
Continued Rejection
Rogers 1983
Example
• Knowledge – Rahul cleans his teeth, begins to notice sensitivity
• Persuasion – Notices that ‘Special Paste’ claim they reduce sensitivity. Friend also confirms
• Decision – Prepared to believe. Given free sample ( or special price deal)
• Implementation – Buys and tests it• Confirmation – Improves. Reads article that
whets it. Continues to buy it
An Example
Reliance India Mobile
Category Need : Knowledge/Persuasion
Awareness
Brand Awareness : Decision
Implementation
Brand Facilitation/Purchase Intention
Web Worlds501 SchemeFree Talk
Process of Diffusion
New Product Diffusion Theory
- the spread of an innovation from its source to the ultimate consumer.
- a macro process that focuses on external forces on the consumer (change agents, channels of information, types of information)
- occurs in a social system (a target audience, community, etc.)
Some Examples for Discussion
Process of Diffusion
Time
2.5% 13.5% 34% 34% 16% 2.5% 13.5% 34% 34% 16%
Innovators
Laggards
Late Majority
Early Majority
Early Adopters
Process of Diffusion
• Innovators : Like new ideas have large disposable incomes
• Early Adopters : Large opinion leaders, important in speeding diffusion, younger and educated. Consult people. Imp to Mktg Comms. As they speed process.
• Early Majority : Usually opinion followers, average age, education, social status and income.
• Late Majority : Skeptical of new ideas, adopt because of social and economic factors
• Laggards : Suspicious of all new ideas. Lowest on rung.
is influenced by…
* Competitive Intensity * Good Supplier Reputation * Standardization of Technology * Vertical Channel Coordination * Resource Commitments
Speed of Diffusion
Categories
• INNOVATORS - are first to buy and typically described as venturesome, younger, well educated, financially stable, and willing to take risks.
• EARLY ADOPTERS - are local opinion leaders
who read magazines and who are integrate into the social system more than the average consumer.
• EARLY MAJORITY - solid, middle-class consumers who are more deliberate and cautious
• LATE MAJORITY - described as older, more conservative, traditional, and skeptical of new products
Categories
• Laggards– Resist change– Conservative– Like tradition– Often older & lower in
socioeconomic status
• Nonadopters– Refuse to change
OK, we will
buy X.If I have to buy it I will.
No way!
Diffusion Process,Adopter Categories
Life-Style Characteristics of Innovators & Non innovators
Characteristics Innovators Non innovators• Product Interest MORE LESS• Opinion Leadership MORE LESS• Personality: Dogmatism OPEN-MINDED CLOSE-MINDED Social Character INNER-DIRECT OTHER-DIRECT Category Width BROAD NARROW• Venturesome ness MORE LESS• Perceived Risk LESS MORE
Life-Style Characteristics of Innovators & Non-innovators
Characteristics Innovators Noninnovators• Purchase and Consumption Traits: Brand Loyalty LESS MORE Deal Proneness MORE LESS Usage MORE LESS• Media Habits:
Magazine Exposure MORE LESS Television LESS MORE Specialized Magazine MORE LESS
Life-Style Characteristics of Innovators and Non-innovators
Characteristics Innovators Non innovators• Demographic Characteristics: Age YOUNGER OLDER
Income MORE LESS Education MORE LESS Occupational Status MORE LESS
• Social Characteristics: Social Integration MORE LESS Group Members MORE LESS
RELATIVE ADVANTAGE - is an enhanced bundle of benefits or clear-cut advantages over existing offerings
COMPATIBILITY – is acceptance with existing habits, values and consumption behavior, similar usage as existing productsTRIAL ABILITY is the experience or see the newnessEasily tested, Low risk, Inexpensive, No special equipmentFree samples or coupons
Some Terminology
OBSERVABILITY - is the opportunity for buyers to see the newness
COMPLEXITY - is a disadvantage for new products which slows diffusion and may be offset by simplifying usage or through extensive education
Why Some New Products Fail and Others Succeed
• Failure to Meet Customer Needs• Poor Timing• Market Conditions• Ineffective or Inconsistent Branding• Technical or Design Problems• Overestimation of Market Size• Poor Promotion• Insufficient Distribution
80 to 90% Fail. Why?
Theory of Cognitive Dissonance
Cognitive Theory
• Mainstream psychology has moved from behaviourist to cognitive orientation.
• Cognitive theory is based upon :– Information processing– Problem solving– Reasoning approach to human behaviour
Individuals use info generated by external sources (advtg) and internal sources (memory). This process is thought, processed, transferred into meanings or patterns and then combined to form judgments about behaviour.
What do these pics tell you ?
Cognitive Theory
• Determinants that are important to understand cognitive orientation – contribute to the way individuals process information.– Personality– Perception– Learning– Attitudes– Environmental Influences
Personality
• Beamish Irish Ale : Is a traditional Irish Ale.• Campaign launched in 1997 presented two
sides of life, the red and the black.• Intended to reflect the two sides of Irish
personality• Beamish Ale available in both red and black
drink allows drinkers to satisfy complementary attitudes, tastes and ocassions.
Perception
• Volvo : regarded as a safe, reliable and environmentally friendly car . For the family.
• New ad ‘The Porche will be along in a couple of seconds’ showed a Volvo 850 estate car outpacing a Ferrari.
• Appeal to new markets, new segments..’boxy and boring’ to ‘safe but sexy’
• Aim was to attract pre family and older post family buyers.
Learning
• Kellogs All Brand a shredded fibre breakfast cereal began to lose market share in the late 1980’s.
• Research revealed that buyers understood the importance of fibre in their diet but assumed that fresh fruit, whole meal bread and vegetables were easier alternatives souces of fibre.
• In 1990 Kellogs launched a campaign that compared the fibre content of All Bran with other natural foods
• Buyers were encouraged to make a judgement about their current diet and the alternative that was being presented as patently superior.
Attitudes
• Skoda the East European car manufacturer has long suffered an inferior reputation in Western Europe
• VW bought shares in 1991• Launched Felicia in ’94 and Octavia in ’96• Unprompted awareness of Skoda was 100%, need to
communicate the change in ownership.• ‘We have changed the car, can you change your mind?’• Challenge to buyers to revisit their attitudes towards
Skoda• ‘Who’s behind the changes at Skoda’ – Oct 1995• ‘Judge for yourself’ – January 1997• VW’s efforts to change attitudes
Environmental Influences
Culture Social ClassSituationalInfluences
Groups CommunicationSituations
Cognitive Dissonance
• Is a state where after any decision has been made a buyer might feel tension about his/her past decision because the product fails to reach expectations or the consumer becomes aware of a superior alternative
• Eg : Car Manufacturers : keep re-emphasizing positive features on and on.
Four Main Paradigms Leon Festinger 1957
• The Free Choice Paradigm – dissonance occurs as the result of the choice being made
• The Belief Disconfirmation Paradigm – dissonance comes from exposure to info inconsistent with one’s belief
• The Effort – Justification Paradigm – dissonace occurs when a person engages in an unpleasant activity with intentions to gain a desirable result
• The Induced – Compliance Paradigm – dissonance is aroused when one does or says something that is contrary to an existing belief or attitude
WHY THIS STRESS ON BRANDING ?
Book Value, 95%
N T, 5%
Book Value, 25%
Non-Tangible,
75%
0%
20%
40%
60%
80%
100%
1980s 1999
Market Capitalisation
THE STAKEHOLDER’S VIEW
Arthur Anderson’s report on Fortune 500 companies:
THE STAKEHOLDER’S VIEW
The VALUE of a Company is increasingly being determined by its
NON-TANGIBLE ASSETSLike “BRAND VALUE”
Arthur Anderson’s report on Fortune 500 companies:
“I would ratherown a MARKETthan a MILL.”
Why?
How?
THE ORGANISATION’S VIEW
WHY DO WE WANT TO OWN A MARKET ?
To influence consumption.
In the future, power will flowonly to those Companies
who can influence consumption,and not to the owners of assets.
WHY DO WE WANT TO INFLUENCE
CONSUMPTION?
than a Mill
I’d rather own a
Market
HOW DO WE INFLUENCE CONSUMPTION?
1. Own or Influence the Environment
2. Own or Influence the Consumerby owning or influencing his MIND his HEART
INFLUENCING THE CONSUMERCompanies that make
and
will inevitably make gains in
Market share and Profitability.
Mind Share
Heart Share
steady gains in
This is the role of
BRANDING
This is the
POWER
MIND SHARE is achieved by
“Burning” the brand into the mind of the consumer through
RepetitiveRelevantMemorable andConsistent Communication of aCredible Promise.
HEART SHARE is achieved by
Delighting the customer!
THE BRAND ICEBERG
THE PRODUCT BRANDING ICEBERG
WHAT YOU CAN SEE
WHAT YOU CANNOT SEE!
Symbol
Brand name Price
Presentation
Advertising
Efficient production
Strong R&D
Strong supply chain
Low cost Effective
sellingHigh quality
High service levels
Source: Even More Aggressive Marketing
Strong HR
BRAND MANAGEMENT - AN AGENCY PERSPECTIVE
WHAT IS A BRAND ?• A Brand is not a product : it is the
product’s source and it defines its
identity in time.
• The value of a brand lies in its capacity
to generate cash flows.
• A brand is a landmark…it is enduring.
WHY IS BRAND MANAGEMENT IMPORTANT ?
• Today, the primary capital of any businesses is their brand.
• For decades, the value of a company was measured in terms of real estate, then tangible assets, plants and equipment's.
• However…. it has been recognized that a company’s real value lies outside the business itself, in the minds of its consumers.
IN EFFECT….
• A Brand is an Identity(like all famous personalities has its distinctiveness)
BRAND IDENTITY VS IMAGE
• Image is on the receivers (consumers) side.
while• Identity is on the senders
(manufacturer/agency) side
FROM AN AGENCY POINT OF VIEW….
• It is important how we build Brand Identity
BRAND POSITIONING
• It has become common to analyze Brands according to their positioning. The term applies to a process of emphasizing the brand’s distinctive and motivating attributes in light of competition.
BRAND POSITIONING
Why ? For Whom ?
When ? Against Whom ?
WHY ?
• What is the specific consumer benefit do we bring to the consumer ?
Sony brings innovationNokia connects peopleIntel brings swiftness,fast
processesPhilips makes things better
FOR WHOM ?
• This indicates the Target Audience
Omega - for those who’ve made it in lifeComplan - for mother’s of growing children
WHEN ?
• This indicates the occasion to use the brandSurf Excel - when you have a front loading washing machineSociety Tea - Anytime
AGAINST WHOM ?
• Points to the main competition
Kissan Vs MaggiColgate Vs PepsodentClinic Vs Head & Shoulders
BRAND POSITIONING
• Positioning is important as it reminds us that it is meaningless unless positioned in the consumers mind versus competitionBut Positioning is more a reflection of a product, and does not exploit its full potentialities
Thus the need for A Brand Identity
BRAND IDENTITY
• To become a power brand & remain so, a brand has a duty to be faithful to its identity.
Brand Image is a volatile and changing notion - it is concerned too much with the appearance of the brand and not enough with its very being.
THE BASIC DIFFERENCE
BRAND IMAGE Vs BRAND IDENTITY
• Idealism Durability• Fickleness
Coherence• Opportunism Realism
THE BRAND IDENTITY PRISM (TOOL)
Physique Personality
Relationship
Self ImageReflection
Culture
IBM - PRISM
All data processingsystems Confident Square
Security, Assurance Big Biz, Ivy LEast C, Wall St.
‘I am a pro’Those who take biz seriously
APPLE - PRISMMicrocomputers
Easy Acess, all purpose Creative, Cool
Liberated, Friendly New Humanism, West C, Change
Self EnhancementYoung Minded, Autonomous
SOURCES OF IDENTITY• The Products (Benetton - colour)
• Power of Name (Apple - Computers)
• Brand Characters & Symbols (Gattu, Amul
Girl)
• Trademark and Logos (Mercedes Emblem)
• Geographical/Historical Roots (Swissair)
• Advertising : Content & Form (Marlboro
Man)
India Kings An Example
THE BRAND IDENTITY PRISM (TOOL)
Physique Personality
Relationship
Self ImageReflection
Culture
THE COMMUNICATION PROCESS
• Communication Effects
• Strategic Planning
• Consumer Insight
• Discriminator/Ad Idea/Executional Idea
• Brand Experience
THE 5 COMMUNICATION EFFECTS
• Category Need• Brand Awareness• Brand Attitude• Brand Purchase Intention• Purchase FacilitationAll Consumers experience these effects before any buying decision
CATEGORY NEED
• Consumers perception of requiring something (a product or service) to remove or satisfy a perceived discrepancy between the current motivational state
and the desired motivational state
BRAND AWARENESS
• Consumers ability to identify (recognize or recall) the brand within the category in sufficient detail to make a purchase
BRAND AWARENESS
• At the product category level, a person won’t buy unless he or she has the need. At the brand level, a person cannot buy unless he or she is made aware of the brand. Thus Brand Awareness always takes precedence over other Brand level communication effects in particular, Brand Attitude
BRAND AWARENESS RECOGNITION VS
RECALL• Brand Recognition
Brand is encountered 1st Buyer then checks need
‘That’s Cherry Blossom’ ‘Do I need to polish’
• Brand Recall
CN encountered Buyer Recalls Brand
‘I need to polish my shoes ‘Cherry Blossom’
BRAND AWARENESS
Brand Identification Communication Obj..At Point of Purchase Brand RecognitionPrior to Purchase Brand Recall
You don’t have to be motivated to be aware of the brand, but you have to be motivated to buy it.
BRAND ATTITUDE
• Consumers overall evaluation of the brand with respect to its perceived ability to meet a currently relevant motivation.
• Brand Attitude consists of an emotional or affective component which energizes the brand and a logical or cognitive belief that directs choice towards a particular brand
BRAND ATTITUDE
• If motivation changes, the evaluation might change, therefore it is important that we identify the motivation that the brand is perceived to meet
• BA = Emotional + Logical
• Emotional - Energizes, Logical - Guides
• If motivation exists then consumer will buy, need to make the best fit
BRAND ATTITUDE
Consumers prior AttitudeCommunication Obj..
No Brand Attitude Create Attitude
Moderately favourable Reinforce or Reposition
Maximally favourable Maintain
Negative Attitude Change
BRAND PURCHASE INTENTION
• Consumers self instruction to purchase the brand or to take purchase related action
BRAND PURCHASE INTENTION
• It is a conscious plan to complete the consumer response sequence
• Low BPI - till the time of purchase• High BPI - at the purchase point initiate Purchase Facilitation
PURCHASE FACILITATION
• Consumers perception of other marketing factors (4P’s) that can hinder or stimulate purchase
PURCHASE FACILITATION
‘You can run a brilliant advertising campaign, and sales go down. Why ?’ -Rosser Reeves
Your Product may not be right Your price may not be right Your distribution may not be right Your sales force may be bad Your competitor may be spending 5:1 Your competitors promotion may be
bleeding you
PURCHASE FACILITATION
Buyer/stateCommunication Obj..
No problems with 4P’s Omit
Perceived Problems Incorporate
ATTRIBUTE VS BENEFIT VS MOTIVATION
• Attributes - what the Brand has
• Benefits - what the consumers want
• Motivation - is what consumers want the benefit for
M is perfect when B match A
AN EXAMPLE
Category : ToothpasteAttribute - AstringentBenefit - Mouth FreshnessMotivation - I like the feeling (sensory gratification), I have a date (social approval), remove a bad taste (problem removal)
ADVERTISING FAILS BECAUSE
A) It’s more execution than idea
B) It’s more idea than execution
Which is the right answer ?
A great Agency delivers both but behind every successful execution lies a
BIG IDEAExamples ??
The importance of Strategic Planing
WHY STRATEGIC PLANNING ?
• Client wants Creativity– Creativity that sells, adds value to their
brand and even more to their bottom line
• Consumers are Experts– Not empty vessels, knowledgeable,
know when they are patronized, bored or uninvolved
– Reject advertising that does not appeal
ADVERTISING STATISTICS
500 messages per day
76 get noticed
12 remembered
9 remembered and liked (1.8%)
ADVERTISING MUST MAKE THE CONSUMER...
S : SimpleM : MemorableI : InterestingL : Linked to the BrandE : Emotionally Involving
e.g. : Fevicol/Kelvinator/Centre
Shock/Pepsi/Cadbury
WHAT DOES STRATEGIC PLANNING DO ?
• It helps discover the Big Idea
WHAT MAKES AN IDEA A BIG ONE ?
• It’s always fresh, involving or surprising
• It is insightful and pertinent to the audience
• It may change the way the consumer sees
the Brand, or even the category it comes
from
• It often triggers a positive response ‘Ah !’
SOME OBSERVATIONS
• Great Brands have brand ideas (discriminators) before they have creative ideas (Advertising/ execution ideas)
• Great Creative ideas are based on great consumer insights
• No one gets big ideas thinking in a straight line
• An idea can come from anyone
WHAT IS A BRAND IDEA ?
• Simple idea of our brand that people
have in their minds
• Who the brand is for ?
• Idea that is both motivating and
differentiating
• Combination of need, benefit and
personality
BRAND IDEAS
• Olivio - Longer lives
• British Automobile Association - 4th
emergency service
• Haagen Daz - ultimate sensual pleasure
• Coca Cola - Alternative to Water
BRAND IDEAS ARE ALWAYS FOR SOMEONE
• Burger King is for Burger lovers
• BMW is for people who love to drive
• Pepsodent is for family that knows no
pain
• Surf Excelmatic - for the house with the front
loader
• Liril is for those who want freshness
THE BIRTH OF BIG IDEAS
• Behind every big idea is a very big Consumer Insight
WHAT IS A CONSUMER INSIGHT ?
• A simple universal human truth that will connect your consumer to your brand
• It resonates with people, touches a nerve, cuts through
OUR BELIEFS ABOUT INSIGHT
• The insight sets the brand apart by focussing on a desirable difference which forms a closer relationship with the consumer
• Consumer Insight inspires great creative ideas which deeply connect with the consumer
SOME EXAMPLES
• Axe - Every man dreams of a woman making the first move
• Cup-a-soup - By 4 o’clock you are tired of tea and coffee
• Rolo - when you have something delicious to share, you have to think hard what to do with the last one
CAVEAT
• There is no right or wrong insight• There can be many insights• One should use the best insight that is
relevant to the brand and offers greatest competitive advantage
INSIGHTS PROVIDE NEEDS
Insights NeedIf you do not let your children Clean clothes
get dirty and play they won’t Dirt & stains be well roundedremoved
Every man dreams of a woman To successfullymaking the first move seduce
girls
GREAT CONSUMER INSIGHTS
• Solves Business Issues• Builds Brands• Inspires Creative Ideas• Involves Consumers• Delivers Competitive Advantage• CREATES GROWTH How do we find them ?
THE INSIGHT MINE
People do not give you insights, they have to
be discoveredStart in the right placeFrom knowledge & understanding comes inspirationAsk smart questionsLook outside the box
VOLKSWAGEN PASSAT
• On a trip to Germany it was discovered that engineers were such perfectionists that they were obsessed. One even said that when he was on holiday he made ‘sand cars and not sand castles’ with his kids.
‘Perfection is born out of obsession’
ROLO
• Rolo can be shared. But when when you
have something delicious to share, you
have to think hard what to do with the
last one
‘You better think twice’
OLYMPUS
• In many categories, people do not know which brand is the best to buy. They look at someone they can trust. When the camera market exploded, new brands hit the market Olympus endorsed theirs with David Bailey.
‘You’d trust a famous photographer what camera to buy’
PEPSODENT
• All mothers want their children to have
strong and healthy teeth. There is
nothing more painful for a mother than
to see her child in pain.
‘Pepsodent families know no pain’
WHAT IS A DISCRIMINATOR ?
The single most compelling reason for a consumer to buy your brand
DISCRIMINATORS
Can be based in Benefit Reason to believe Emotional Value
Must be important & credible
AXE
• Insight : Woman making the first move
• Discriminator : Irresistibility to women with an irreverent attitude
• Advertising Idea : Seduction : Women can’t control their passion when a man’s wearing Axe (whoever it is)
• Executional Idea : Lift TVC
BRAND EXPERIENCE
Make the consumer experience your brand
EXAMPLES...
• Washing Liquid - South America
• Deodorant - Overhead Handle Bars in
Trains/Buses
• Detergents - Stain Ambulance
• Pril – Washing Train Windows