q n y marketing
DESCRIPTION
TRANSCRIPT
What is a Brand?
“A multi-dimensional consumer value, delivered consistently.”
A name, sign, symbol, or design, tagline or a combination, intended to identify the goods or
services and to differentiate them from competition.
Brand Equity & Promise
Brand EquityThe differential effect that brand
knowledge has on consumerresponse to the
marketing of that brand.
Brand PromiseThe marketer’s vision of whatthe brand must be and do for
Consumers.
What is a Brand?
Attributes Benefits Values
CultureCulture
UserUser
PersonalityPersonality
Brand Equity
No Brand Loyalty(customer will change)
Satisfied Customer(no reason to change)
Satisfied Customer(no reason to change)
Satisfied & Switching Cost
Values the Brand(brand as friend)Values the Brand(brand as friend)
Devoted to Brand
Marketing Advantages of Strong Brands• Improved perceptions of
product performance
• Greater loyalty
• Less vulnerable to competition
• Less vulnerable to crises
• Larger margins
• Inelastic consumer response to price increases
• Elastic consumer response to price
• Licensing opportunities
• Brand extension opportunities
The Role of Brands
• Identify the maker
• Simplify product handling
• Offer legal protection
• Signify quality
• Create barriers to entry
• Serve as a competitive advantage
• Secure price premium
Brand Strategies
BrandExtension
New
Bra
nd
Nam
e
Product Category
LineExtension
LineExtension
ExistingExisting
ExistingExisting
MultibrandsMultibrandsNewNew NewBrands
NewBrands
Brand Element Choice Criteria
• Memorable
• Meaningful
• Likeability
• Transferable
• Adaptable
• Protectible
Devising a Branding Strategy
Develop new brand elementsApply existing brand elementsUse a combination of old and new
Defining Associations
Points-of-difference (PODs)
• Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand
Points-of-parity (POPs)
• Associations that are not necessarily unique to the brand but may be shared with other brands
RelevanceDistinctivenessBelievability
Examples of Negatively Correlated Attributes and Benefits
• Low-price vs. High quality
• Taste vs. Low calories
• Nutritious vs. Good tasting
• Efficacious vs. Mild
• Powerful vs. Safe
• Strong vs. Refined
• Ubiquitous vs. Exclusive
• Varied vs. Simple
Probability of Success
Probabilityof
completion
Overallprobabilityof success= X
Probability ofeconomic
success givencommercialization
XProbability
ofdifferentiation
Marketing Communications
The means by which firms attempt to inform, persuade, and remind
consumers, directly or indirectly, aboutthe products and brands they sell.
Message Problems
Selective Attention
Selective DistortionSelective Distortion
Selective RetentionSelective Retention
Target Audience may not receive the intended message due to:
Message ContentRational Appeals
Emotional AppealsMoral Appeals
Message StructureDraw ConclusionsArgument TypeArgument Order
Message FormatLayout,
Words, & Sounds,Body Language
Message SourceExpertise,
Trustworthiness,Congruity
Message Problems
The Importance of Taglines
Brand Theme Ad Tagline
Our hamburgers are bigger. Where’s the Beef?
Our tissue is softer. Please Don’t Squeeze the Charmin.
No hard sell, just a good car. Drivers Wanted
We don’t rent as many cars, so we have to do more for our customers.
We Try Harder
Personal Communications Channels• Advocate Channels
• Expert Channels
• Social Channels
Stimulating Personal Influence Channels
• Identify influential individuals and devote extra attention to them
• Create opinion leaders
• Use community influentials in testimonial advertising
• Develop advertising with high “conversation value”
• Develop WOM referral channels in Social Media
• Establish a blog
• Use viral marketing
Nonpersonal Communication Channels
• Media
• Sales Promotion
• Events and Experiences
• Public Relations
AdvertisingPublic, Pervasive, Expressive, Impersonal
AdvertisingPublic, Pervasive, Expressive, Impersonal
Sales PromotionCommunication, Incentive, Invitation
Public Relations & PublicityCredibility, Surprise, Dramatization
Personal SellingPersonal Confrontation, Cultivation, Response
Personal SellingPersonal Confrontation, Cultivation, Response
Direct MarketingNonpublic, Customized, Up-to-Date, Interactive
Communications Mix
Public Relations vs MPR
Pubic Relations:
Functions Include:
Press relations
Product publicity
Corporate communication
Lobbying
Counseling
Social Media
Marketing Public Relations (MPR)
MPR assists in the following tasks:
Assisting in the launch of new products
Assisting in repositioning a mature product
Building interest in a product category
Influencing specific target groups
Defending products that have encountered public problems
Building the corporate image in a waythat reflects favorably on its products
Public Relations
Suggestions:
Build marketplace excitement before media advertising breaks
Build a core customer base
Build a one-to-one relationship with consumers
Turn satisfied customers into advocates
Influence the influentials
Choosing Messages and Vehicles
Event Creation
Implementing the Plan and Evaluating Results
Communication Platforms
Events/ Experiences
• Sports
• Entertainment
• Festivals
• Arts
• Causes
• Factory tours
• Company museums
• Street activities
Public Relations
• Press kits
• Speeches
• Seminars
• Annual reports
• Charitable donations
• Publications
• Community relations
• Lobbying
Communication Platforms
Advertising
• Print and broadcast ads
• Packaging inserts
• Motion pictures
• Brochures and booklets
• Posters
• Billboards
• POP displays
• Logos
• Videotapes
Sales Promotion
• Contests, games, sweepstakes
• Premiums
• Sampling
• Trade shows, exhibits
• Coupons
• Rebates
• Entertainment
• Continuity programs
Characteristics of Communications
Public Relations and Publicity
• High credibility
• Ability to catch buyers off guard
• Dramatization
Events and Experiences
• Relevant
• Involving
• Implicit
Designing Competitive Strategies
Market-Leader Strategies
Expanding the Total Market
New Users
Market-penetration strategy
New-market segment strategy
Geographical-expansion strategy
New Uses
More Usage
Defending Market Share
Market-Challenger Strategies
Defining the Strategic Objective and Opponent(s)
It can attack the market leader
It can attack firms of its own size that are not doing the job and are underfinanced
It can attack small local and regional firms
Choosing a General Attack Strategy
Specific Attack Strategies
• Price-discount• Cheaper goods• Prestige goods• Product proliferation• Product innovation• Improved services• Distribution innovation• Manufacturing cost reduction• Intensive advertising promotion
Designing Competitive Strategies
Market-Nicher Strategies - High margin versus high volume
Nicher Specialist Roles
End-user specialist
Value-added
Vertical-level specialist
Customer-size specialist
Specific-customer specialist
Geographic specialist
Product or product-line specialist
Product-feature specialistJob-shop specialist
Quality-price specialistService specialistChannel specialist
Defining Marketing?
Marketing is an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing
customer relationships in ways that benefit the
organization and its stakeholders.- Kotler & Keller
Defining Marketing
Marketing is discovering what the prospect wants and demands and delivering it more efficiently and effectively than competition.
-Anna Urban
What is Marketing Management?
Marketing management is theart and science
of choosing target markets and getting, keeping, and growing
customers throughcreating, delivering, and communicating
superior customer value.
Marketing Management Tasks
• Developing marketing strategies
• Capturing marketing insights
• Connecting with customers
• Building strong brands
• Shaping market offerings
• Delivering value
• Communicating value
• Creating long-term growth
Questions
After spending $100 billion on acquisitions over five years, AT&T’s achieved:
a) Higher Revenues
b) No Gain
c) Lower Revenues
Questions
2. After spending $100 billion on acquisitions over five years, AT&T’s achieved:
a) Higher Revenues
b) No Gain
c) Lower Revenues
Good Mission Statements
• Focus on limited number of goals
• Stress major policies and values
• Define major competitive spheres
eBay
“We help people trade anything on earth.We will continue to enhance the onlinetrading experiences of all – collectors, dealers, small businesses, unique itemseekers, bargain hunters, opportunitysellers, and browsers.”
Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the the target market’s
mind.
A Product is made in a factory.
Positioning is made in the Consumer’s mind.
Examples of Value PropositionsDemand States and Marketing Tasks
A good hot pizza, delivered to your door door within 30 minutes of ordering, at a moderate price
15% premium
Delivery speed and good quality
Convenience-minded pizza lovers
Domino’s (pizza)
The safest, most durable wagon in which your family can ride
20% premium
Durability and safety
Safety-conscious “upscale” families
Volvo(station wagon)
More tender golden chicken at a moderate premium price
10% premium
TendernessQuality-conscious consumers of chicken
Perdue (chicken)
Value PropositionPriceBenefitsTarget Customers
Company and Product
Developing and Communicating a Positioning Strategy
• Positioning According to Ries and Trout
1 Strengthen own current position
1 Grab an unoccupied position
1 De-position
1 Re-position
1 Product ladders
• Positioning: How many ideas to promote?
1 Unique selling proposition
1 Four major positioning errors
1 Underpositioning
1 Overpositioning
1 Confused positioning
1 Doubtful positioning
Developing and Communicating a Positioning Strategy
Writing a Positioning StatementMountain Dew: To young, active
soft-drink consumers who havelittle time for sleep, Mountain Dew
is the soft drink that gives youmore energy than any other brand
because it has the highest level of caffeine.
The Marketing Process
• Analyzing Market Opportunities
• Developing Marketing Strategies
• Planning Marketing Programs
• Managing the Marketing Effort
1 Annual-plan control
1 Profitability control
1 Strategic control
Types of Questions Research Can Address• Customer Profiles
1 Who is our Customer?
• Product Changes
1 Impact of a Product Change
• Competitive Leverage
1 Strengths & Weaknesses
• Tracking
1 Changes over Time
The Marketing Research Process
Defining theDefining theproblem andproblem and
researchresearchobjectivesobjectives
Defining theDefining theproblem andproblem and
researchresearchobjectivesobjectives
DevelopingDevelopingthe researchthe research
planplan
DevelopingDevelopingthe researchthe research
planplanCollect the Collect the informationinformationCollect the Collect the informationinformation
Analyze theAnalyze theinformationinformationAnalyze theAnalyze theinformationinformation
Present thePresent thefindingsfindings
Present thePresent thefindingsfindings
Psychological Factors
Perception LearningLearning
Beliefs &AttitudesBeliefs &Attitudes
Motivation
MotivationPerceptionLearningMemory
Key Psychological Processes
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Our industry is at a crossroads ... We have been challenged by the steady diversification of targets and an explosive proliferation of media channels.
Solutions will come from building new channels and reconfiguring old ones.
Convergence, social media, advergaming, entertainment, and DVR are all part of the next great experiment in communications.
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We are growing
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… and more multi-cultural
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Diverse in lifestage
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What is Media?
3,000+TV Stations
15,000+Radio Stations
15,000+Radio Stations
3,000+Magazines3,000+
Magazines
400,000+Billboards
Product PlacementProduct
Placement
TXT MessagesTXT Messages Direct MailDirect Mail
Telemarketing
Outdoor Media
Movie TheatersMovie
Theaters
1,000,000+Websites
1,000,000+Websites
10,086Newspapers
10,086Newspapers
YouTube
Social MediaSocial Media
PRPR
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Internet | What’s on?
Prime time TV 7:097:09
Internet 12:42
Average Weekly Time Spent(Adults 18+ in hours)
Source: Nielsen TV Audience Report, 2003; Nielsen NetRatings, Combined Home/Work Panel, Dec 2004
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Outdoor Media
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Search: SEM + SEOThe resurrection of the Internet Hype
More than 1 billion searches are conducted online everyday (searchenginewatch.com).
95% of corporate purchasing agents use the web to research products and services before selection.(B2B Magazine 2003 Survey)
Visitors have 60% recall of sites found in search vs. just 20% for banner ads and tiles.(NPD Group Research Report)
Over three-fourths of marketing execs whose companies have used search marketing said they found it more effective than banner advertising.(Jupiter Research)
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Search: The resurrection of the Internet Hype
15% of total
15% of total 42% of
total42% of
total
US Paid Search Ad Spending2001–2006 (in billions)
Source: eMarketer, October 2004; IAB/PwC, 2004
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Where Are We Headed?
AdvertisingAdvertising
Existing CustomersExisting Customers
SponsorshipsSponsorships
Sales ForceSales Force
PRPROne to OneOne to One
OnlineOnline
Social MediaSocial Media
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Case in Point | Budget Trucks
Distribution
Website
PR
WoM
one-to-one
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Case in Point | Budget Trucks
Distribution
Website
PR
WoM
one-to-one
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Case in Point | Budget Trucks
Distribution
Website
PR
WoM
one-to-one
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What do the Media guys do? Traditionally speaking
1 The right message1 Through the right channel1 In the right way1 To the right target
Your Ad
here
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The Functions & Process of Media
PlanningResearchStrategyTactics
BuyingNegotiationPlacementAccounting
MonitoringOptimization
ReportingMaintenance
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Media TacticsMedia Tactics
Media StrategyMedia Strategy
Planning Process
Communications OpportunityCommunications Opportunity
Target AnalysisTarget Analysis Brand/BusinessBackground
Brand/BusinessBackground
Define Goals/Objectives
Define Goals/Objectives
Marketing Objective
Communications Objective
Media Objectives
Target Audience, Competitive Insight, Brand Marketplace, Lessons Learned,
Parameters (Seasonality, Geography, Creative, Retail/Promotions)
Communications Opportunity
Channel Selection/Ideation
Media Strategy
Media Tactics
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What are we talking about?
MARKETINGMARKETING
COMMUNICATIONS(of which advertising is a part)
COMMUNICATIONS(of which advertising is a part)
MEDIA
Process of selling a product or service to a customerProcess of selling a product or service to a customer
Translating that product or service into a brandTranslating that product or service into a brand
The vehicles that carry brand messages
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Example: Objectives
Marketing Objectives
1 Sell 100,000 tickets to a show in 2010
Communications Objectives
1 Increase awareness of artist
Media Objectives
1 Reach 70% of potential concert goers
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Example: Strategy
Marketing Strategy
1 Set price point at $75
Communications Strategy
1 Emphasize experience AND value
Media Strategy
1 Utilize a multi-media mix to reach elusive concert goer
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Defining Brand/Business BackgroundBrand
1 What does the brand stand for? What’s the experience?
Competitive Landscape
1 How much does your competition spend? Where do they spend? What are they trying to communicate?
Industry Best Practice
1 Of the competition, who’s doing it right? Is there an opportunity?
Media Best Practice
1 Is there an advertiser with a similar challenge but not the same category?
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Defining Target
Thorough understanding of target (potential customer) through:
1 Quantitative Research
1 Qualitative Research
1 Google (Anything credible you can get your hands on)
Looking for information that leads to insight:
1 Demographics/Psychographics
1 Values, attitudes, lifestyles, beliefs
1 Affinities
1 Purchasing habits
1 Media usage habits
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Target Overview | Demographics
62% Men/48% WomenMedian Age: 42 years
72% between ages 25-54
Median HHI: $72,922
Professional/Managerial (169)Bachelor's degree (166)
Post-graduate degree (160)
81% County A/B (117/111) 36% in Top 10 markets
MSA Suburban (123)Census Region Northeast (132)
Sub Region NE/MA (172/118)
Went to a concert
paid $50+
In past 12 months
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Target Overview | Media Usage
Magazine Newspaper Radio TV Internet Outdoor
Quintile I (Top 20% ) 136 123 99 69 162 145
Quintile II 94 111 104 75 133 105
Quintile III 102 69 111 110 119 91
Quintile IV 81 119 109 130 47 87
Quintile V (Bottom 20% ) 87 78 78 116 38 72
YES!
ANNOUNCE/NEWS
SELECTIVE
WHERE APPROPRIATE
YES!
RECOMMENDED
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Defining: Communications Opportunity
What are the best channels to reach our target?
When will our target be most receptive to our messages?
What should we communicate at the point of contact?
What new channel can we create?
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Example: Target Receptivity | “Self Moments”
Wake upWake up
breakfastbreakfast
CommuteCommute
GymGym CommuteCommute
LunchLunch
WorkWork
SocializingSocializing Work
Work
FamilyFamily
MeMe
Dream Dream
online
television
magazines
direct
WoM
WoM
WoM
television
radio
OOH
newspapers
roommate
WoM
WoMWo
M
direct
WoM
co-workers
online
radioWoM
newspapers
magazines
OOHWoM
WoM
WoM
WoM
WoM
WoM
WoM
WoM
WoM
sponsorships
WoM
WoM
friendsfriends
6am
6pm
9am9pm
weekend
WoM
selfself
selfself
selfself
selfself
selfself
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Communications Process
MonitoringReportingMonitoringReporting
Research
Social Marketing Design
MessagingMessagingPlanningBuilding
BrandStrategy