4. REMARKABLE
Apple Retail 2001
Sorry Steve, Apple Stores Won‟t Work
(Business Week)
Apple Retail 2004:
Fastest retailer ever to reach the
$1 billion mark a year
Apple Retail 2006
Fastest retailer ever to reach
$1 billion/quarter mark
Apple Retail 2007
Sales per sq.meter = $ 30,176
(as comparison: BestBuy = $10,643)
5. •
Careful segmentation and focus on students, educators
and creative professionals (even now consumer appeal
broadens)
•
A retail experience differentiated by service before,
during and after sales (Genius bar)
•
Scenario or lifestyle Marketing & Sales vs. Product « What
do you want to do ? »
•
Style & design
THE RESPONSE
6. BREAKING ALL THE RULES
•No commissions
•Team bonuses
•Focus on experience
•Fashion & design people to run computer retail
Ron Johnson
Target
•Hire for personality, attitude and customer fit …
train the rest
•High identification: Tshirts, iPod, discounts, …
•3 week immersion at start of job ONLY on
customerrelationshipskills and
understandingcustomerneeds/lifestyle
•
MickeyDrexler
The Gap
•
All product training is online
(exceptgeniuses)
Training on store computers or
borrowedlaptop
FUTURELAB
7. RESULTS
Apple: 2007 Net Promoter Performance and 5 Year Trend vs.
Overall B2C High Tech Computer Hardware Manufacturers
FUTURELAB
Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008
8. Revenue Growth % 2007 vs 2008
Source: Fortune Magazine, May 5,2008
24,3
13,8
8,4
6,5
6,2
5,5
0,8
HP
FUTURELAB
Dell
Apple
Xerox
Sun
NCR
Pitney
Bowes
RESULTS
9. When both sides work together, you can build a
charismatic brand.
But first,
you have to master the FIVE DISCIPLINES
OF BRAND-BUILDING
4
FOCUS
2
1
IS THIS HOW YOUR CUSTOMERS SEE
YOU?
DIFFERENTIATE
Who are you?
What do you do?
Why does it matter?
CREATIVITY IS WHAT GIVES
BRANDS THEIR TRACTION IN
THE MARKETPLACE.
Because creativity is rightbrained,
Unless you have compelling answers to
these questions, you need Focus
SOLUTION:
BE DIFFERENT
3
COLLABORATE
BUILDING A BRAND IS A
COLLABORATIVE PROJECT.
INNOVATE
and strategy is left-brained.
4
VALIDATE
A sustainable competitive advantage.
19. Summary of market positioning of mobile operators [1 of 2]
Functional
Functional
Emotional
Value
Emotional
Value
GHS
On-net
Off-net
GHS
On-net
Off-net
Domestic calls
0.10
0.10
Domestic calls
0.08
0.08
Domestic SMS
0.04
0.05
Domestic SMS
0.04
0.0424
Mass market player with the largest community of
subscribers
Large network investment (greatest coverage) - 73% of
population in June 2010
“MTN, Ghana's most reliable voice and data
network has variety of services tailored to suit your
specific needs, lifestyle and economic situations”
Strong focus on corporate customers
In November 2010, it launched Blackberry services
However, it only has a WCDMA network hence its data
services are inferior to those of MTN and Zain
20. Summary of market positioning of mobile operators [2 of
2]
Functional
Functional
Emotional
Value
Emotional
Value
GHS
On-net
Off-net
GHS
On-net
Off-net
Domestic calls
0.09
0.1620
Domestic calls
0.08
0.08
Domestic SMS
0.0403
0.0477
Domestic SMS
0.04
0.05
Tigo targets primarily the consumer segment
Zain was rebranding to Airtel in November 2010
Bharti Airtel, the parent company of Airtel is renown for
aggressive pricing approach
Airtel operates an HSPA network
21. Zain and Sudani are in the position to base their value
proposition on quality & value for money
Good value for money
Zain has the highest association
with attributes that mobile users
consider important (call quality,
value for money and good
network coverage)
Great value
brand
Basic brand
High Quality (call quality &
network coverage)
Low Quality
Expensive
brand
Over-rated brand
Poor value for money
Sudani is considered to have
good network coverage
The company does also have a
good local connection to the
Sudanese people and is referred
to as the “proudly Sudanese”
operator
MTN‟s strongest association is
with convenience (easy to
recharge)
Call quality, network coverage and value for
money are the most important attributes for mobile
owners when selecting an operator in Sudan
High quality & value for money are also the most appreciated attributes
22. Brand Atlas
Brand
association
Brand
promise
Brand
activation
Brand
awareness
Brand Call
and re-call
Brand
extension
Brand value
Brand
Identity
Brand
contact
Perceptiona
l map
Brand
insight
Brand Touch
Points
Brand
image
Brand
Attribute
Brand
Essence
Brand
personality
Brand
engagemen
t
Branded
recognition
Brand Equity
Brand
perception
Brand
Aartuchuers
Brand Vision
Brand
loyalty
Grow the
core
Brand story
23. Introduction
The market is crowded
with Nokia, Motorola, and
Ericsson fighting it out at
the top.
The world of the mobile
phone market is crowded.
The diverse products
available range from the
simple to the complex and
every manufacturer offers the
latest features.
However, Nokia replaced all its
competitors and it is now the number
one brand in many markets around
the world, effectively dislodging
Motorola from that position.
Also, several less
successful brands like
Samsung, Philips, Siemens
and Panasonic are trying
hard to make it into the
top competitors' market
share.
So what made Nokia
special from others? Why
did customers choose
Nokia? The answer lies in
what the „brand Nokia‟
means to customers.
24. What is the brand
So what exactly is a brand?
FIRST
A brand is not a logo.
SECOND
A BRAND IS A PERSON‟S
GUT FEELING ABOUT A
PRODUCT, SERVICE, OR
ORGANIZATION.
It is a PERSON‟S gut
feeling, because brands
are defined by
individuals, not
companies, markets, or
publics.
FINALL
Y
A brand is not a product.
IT‟S NOT WHAT YOU SAY IT IS.
IT‟S WHAT THEY SAY IT IS.
25. WHY IS BRANDING SO HOT?
People have too
many choices and
too little time
We tend to base
our buying choices
on trust
Most offerings have
similar quality and
features
26. What is a Brand?
Nokia brand promises „trust‟ and „strong
technology‟
The popular Starbucks has earned its brand image
from the opinions of its customers.
The brand Starbucks stands for bolder,
flavorful coffee.
more
Thus, you can see that Brands are “what the
consumers buy”, while products are “what
concern/companies make”.
Brand is a promise that the product will perform as per
customer‟s expectations.
It is a name, term, sign, symbol or a
combination of all these which differentiate the
goods/services of one seller or group of sellers from those
of competitors.
Some examples of well known brands are
Wrangler, Audi, Samsung, Coca Cola, etc.
27. What is a Brand?
On the other hand a name becomes a
brand when consumers associate it with a
set of tangible and intangible benefits that
they obtain from the product or service.
Brand is the seller’s promise to
deliver the same bundle of
benefits/services consistently
to buyers.
A product is any offering by a
company to a market that serves
to satisfy customer needs and
wants. A product can be an
object, service, idea, etc.
Brands are not
the same as
Products.
Brand differences are
often related to
attributes or benefits of
product itself.
Brand name selecting
process may you find
trivial but it is not.
Some brand names
are so good that
contribute to the
success of product.
28. Brand Elements
Brand Element Choice Criteria
Brand
names
Promise
Slogans
Memorable
Elements
Characters
Meaningful
Likeability
Logos
Personality
Transferable
Adaptable
Protectable
29. Why do Brands Matter?
Brands have become
important drivers of
growth for any
organization, good
or service.
B
The main reason
consumers flock to
some brands and
ignore others is that
behind the brand
stands an unspoken
promise of value.
R
A Brand is a
promise that the
product will
perform as per
customer’s
expectations.
A
A brand helps make
a mark and
differentiate a good
or service from
others in
marketplace.
A strong brand
makes people
aware of what
the company
represents and
about the
different
offerings of the
company.
N
D
Brands help
customers to
connect to the
product or
service on an
emotional level.
S
31. Brands for Consumers and Sellers
Source of
product
Lower risk
Consumers
Less cost of
searching for
a choice
Symbol of
Quality
Symbolic
device
The word „Brand‟ signifies different things to consumers and sellers.
32. Brands for Consumers and Sellers
Source of
product
Lower risk
Consumers
Less cost of
searching for
a choice
Symbol of
Quality
Symbolic
device
Consumers can easily make a purchase decision based on
brands. Consumers usually find brands which satisfy their
need.
33. Brands for Consumers and Sellers
Source of
product
Lower risk
Consumers
Brands mean lower purchase risk to consumers as they are
dealing with a product or organization that they trust.
Less cost of
searching for
a choice
Symbol of
Quality
Symbolic
device
The word „Brand‟ signifies different things to consumers and sellers.
34. Brands for Consumers and Sellers
Source of
product
Lower risk
Consumers
Less cost of
searching for
a choice
If the consumers recognize a particular brand and have
knowledge about it, they make quick purchase decision
and save lot of time. Also, they save search costs for
product.
Symbol of
Quality
Symbolic
device
The word „Brand‟ signifies different things to consumers and sellers.
35. Brands for Consumers and Sellers
Source of
product
Lower risk
Consumers
Less cost of
searching for
a choice
Symbol of
Quality
Consumers see ‘brands’ as a symbol of quality and remain committed
and loyal to a brand as long as they believe that the brand will continue
meeting their expectations and perform in the desired manner
consistently.
Symbolic
device
The word „Brand‟ signifies different things to consumers and sellers.
36. Brands for Consumers and Sellers
Source of
product
Lower risk
Consumers
Less cost of
searching for
a choice
Symbol of
Quality
Symbolic
device
Brands play a significant role in signifying certain product
features to consumers.
The word „Brand‟ signifies different things to consumers and sellers.
37. Brands for Consumers and Sellers
Means of
Competitive
Advantage
Seller
A brand helps the firms to provide consistently a unique set
of characteristics, advantages, and services to the
buyers/consumers.
Legal
protection of
products‟
features
Satisfied
customer
Means of
Profits
The word „Brand‟ signifies different things to consumers and sellers.
38. Brands for Consumers and Sellers
Means of
Competitive
Advantage
Seller
Legal
protection of
products‟
features
Brands help to protect the unique features/traits of
products by legal copyrights.
Satisfied
customer
Means of
Profits
The word „Brand‟ signifies different things to consumers and sellers.
39. Brands for Consumers and Sellers
Means of
Competitive
Advantage
Seller
Legal
protection of
products‟
features
Satisfied
customer
Brand represents values, ideas and even personality and
hence leads to an assortment of memories in customers’
mind and hence satisfied customers.
Means of
Profits
The word „Brand‟ signifies different things to consumers and sellers.
40. Brands for Consumers and Sellers
Means of
Competitive
Advantage
Seller
Legal
protection of
products‟
features
Satisfied
customer
Means of
Profits
Brands form the basis of purchase decision among
consumers and thus are a means of financial profits.
The word „Brand‟ signifies different things to consumers and sellers.
41. Brandpositioning
BRAND PROMISE
1)It is the heart of marketing
strategy.
2. It is the act of designing the
company‟s offer and image so
that it occupies a distinct and
value place in the target
customer minds.
3.How it is unique and how it is
similar to competitive
brands, and why consumer buy
and use it.
Redfern is a special place in Sydney and the
world. Building on our foundation as the heart of
urban Aboriginal Australia, we are alive with
art, music, culture and ideas.
BRAND ESSENCE
Our brand essence is ―Welcoming Spirit‖
Welcoming Means
BRAND VALUES
Vibrant
Diverse
Living culture
Forward thinking
BRAND PURPOSE
To champion Redfern as a
landmark destination
demonstrating respectful and
positive transformation;
Unique place to
live , work , play
and learn
Open to all –
current and
future residents
Socially
responsible
Embracing the
future with an
understanding of
the past
Addressing
fragmentation
42. Increasing advertising spending during
economic expansion often yields no
improvement in market share
Because 80% of your competitors are
also increasing their spending
Pull back
and let the
competition
eat your
brand
Stand firm be
aggressive eat your
competition lunch
We're toast :
go home
and save
every penny
A soft media market
means your ad dollars will
go further
43. The Role of Brands
Identify the maker
Simplify product handling
Organize accounting
Offer legal protection
Signify quality
Create barriers to entry
Serve as a competitive
advantage
Secure price premium
44. What is a Brand Promise?
A brand promise sets an expectation
of an experience.
It answers the question – What‟s in
it for the customer?
An effective promise is
concise, relevant, sells a benefit
(not just a feature), and is
backed up by the product /
service.
In the best case, your brand IS a
promise.
Southwest Airlines
Nordstrom‟s
Disney
How Are Brand Promises Delivered?
Advertising
◦ Controlled messaging
◦ Aligned messaging
Horizontally - Across media types
Vertically – Up/Down thru Tier 1, II &
III
Experiential
◦ Branded Lifestyle / Off-line content
and programming
◦ Retailer / On-site transaction-based
experience
◦ 1 to 1 issue resolution via Consumer
Affairs / Help desk
45. Does Nissan Deliver its Brand Promise?
Nissan‟s Brand Promise is – “Innovation that Excites”
Key Product proof points
Nissan LEAF – the world‟s first mass produced 100% electric, zero-emissions car.
370Z / GT-R
Key Marketing proof points
GT-Academy
Heisman partnership
Pathfinder Kinect
Prod & Mktg Innovation Labs
Key Organizational proof points
French-owned, Japanese company where US is largest player… with a Brit as our Chairman of the
Americas and a Spaniard is our SVP, Sales & Mktg
Key Operational proof points
Dedicated Social Engagement / CRM team and Agencies
47. What is Brand Management?
Now, that you have learnt about
‘brands’, let us see what is brand
management.
Brand management is the process of
building, managing and improving a
brand.
It begins by having a thorough
knowledge of the term “brand”.
Hence, brand management includes
developing a promise, making that
promise and maintaining it.
It means defining the brand, positioning the brand, and
delivering the brand. It is an art of creating and sustaining
the brand.
48. What is Brand Management?
The tangibles for product brands
include the product itself, its
The intangibles are made up of
characteristics, features, price, p the emotional connections with
ackaging, etc.
the product / service.
The tangible and
intangible characteristics
of brand are managed
through Brand
management.
Whereas, in case of
service brands, the
customers‟ experience
forms the tangibles.
Branding is assembling of various
marketing mix medium into a
whole so as to give the product
an identity.
Thus, you can see that
brand management is all
about Branding.
It is building a
brand name
that captures
the customer‟s
mind.
49. Purpose of Brand Management
The main aim of branding is to differentiate a company’s products and
services from its competitors.
Branding aims to convey a brand message vividly, create customer
loyalty, persuade the buyer for the product, and establish an emotional
connectivity with the customers and form customer perceptions about
the product.
Brand management plays a crucial role to form brands. The brand
management strategies also provide good support to the brand so that
it can sustain itself in long run.
Also, through brand management, brands are managed and brand
equity is built over a period of time. It helps in building a corporate
image. Thus, only a competent brand management system can create a
successful brand.
50. Strategic Brand Management Process
The Strategic Brand Management Process consistsof the following four
steps:
Strategic Brand
Management Process
51. Step 1: Identifying & Establishing Brand Position
Identifying
and Establishing
Brand Position
Customer
Based Brand
Equity
Brand
Positioning
Positioning
Guidelines
Building a Strong
Brand: Four Steps of
Brand Building
Identify and
Establishing
Brand Position
52. Step 1: Identifying & Establishing Brand Position
Identifying and Based Brand Equity
Customer
Establishing
Brand Position
The Brand position can be identified and established by
Customer
Based Brand
Equity
determining the customer-based brand equity using the
pyramid.
Identify and
•
Brand
Establishing
Positioning relates to aspects of awareness of
Brand Position
Brand Salience: This
the brand.
•
Brand Performance: This relates to ways in which
product/ service meets customers‟ needs.
Positioning
•
Building aBrand Imagery: It‟s how customers visualize a brand
Guidelines
abstractly, with no relevance to what the brand
Strong Brand:
actually does.
Four Steps of
•
Brand Judgments: The customers‟ personal opinions
Brand Building
and evaluations with regard to the brand.
•
Brand Feelings: The customers‟ emotional responses
and reactions with respect to the brand.
•
Brand Resonance: The ultimate relationship &level of
identification that the customer has with the brand.
53. Step 1: Identifying & Establishing Brand Position
Customer
Based Brand
Equity
Building a Strong Brand: Four Steps of Brand Building
The Four Steps of Brand Building are as follows:
Identifying (Who are you?)
• Identity
• and
Meaning (What are you?)
Establishing (What about you?)
• Response
• Position
Brand Relationship (What about you & me?)
Brand
Positioning
Building a
Strong Brand:
Four Steps of
Brand Building
Positioning
Guidelines
Identify and
Establishing
Brand Position
54. Step 1: Identifying & Establishing Brand Position
Identifying
and
Establishing
Brand Position
Customer Based
Brand Equity
Brand Positioning
The Brand Positioning is further
divided into two parts –
• Identify and Establishing Brand
Position
• Positioning Guidelines
Brand
Positioning
Building a
Strong Brand:
Four Steps of
Brand Building
Positioning
Guidelines
Identify and
Establishing
Let us look at
Brand Position
each one in detail.
55. Brand Positioning - Identify and Establishing Brand Position
Identify and Establishing Brand Position:
Basic Concepts
It is necessary to decide:
• Who the target consumer is
• Who the main competitors are
• How the brand is similar to these competitors
• How the brand is different from these
competitors
Target Market
The Target Market can be decided based on two
considerations:
• Segmentation Bases: a) Behavioral b)
Demographic c) Psychographic d) Geographic
• Segmentation Criteria: a) Identifiability b) Size c)
Accessibility d) Responsiveness
56. Brand Positioning - Positioning Guidelines
Positioning Guidelines:
The following are some of the positioning
guidelines that firms should follow for an effective
brand positioning:
•
•
•
•
Defining and Communicating the
Competitive Frame of Reference
Choosing Points of Parity and Points of
Difference
Establishing Points of Parity and Points of
Difference
Updating Positioning Over Time
57. Step 2: Planning & Implementing Brand Marketing Programs
Planning &
Implementing
Brand Marketing
Programs
Co-branding
Leveraging
Secondary Brand
Associations to
Build Brand Equity
Licensing
Celebrity
Endorsement
Choosing
Brand
Elements to
Build Brand
Equity
Options and
Tactics for
Brand
Elements
Designing
Marketing
Programs to Build
Brand Equity
Channel
Strategy
Product
Strategy
Pricing
Strategy
Criteria for
Choosing
Brand
Elements
58. Step 2: Planning & Implementing Brand Marketing Programs
Co-branding
Leveraging
Secondary
Brand
Associations to
Build Brand
Equity
Licensing
Celebrity
Endorsement
Choosing Brand Elements to Build Brand Equity
Planning & Elements are sometimes called „Brand
Brand
Identities‟. They are the trademark devices that
Implementing
help
Brand to identify and differentiate brands.
Choosing
Marketing
For example, the logo of tick mark of Nike, the
Criteria for
Brand
Programs
Choosing
Elements to
Indian Maharaja of Air India, the rings of Audi etc.
Brand
Build Brand
are brand elements.
Elements
Equity
Choosing Brand Elements to Build Brand Equity is further
Options and
Designing
Tactics for
divided into two parts:
Brand
Marketing
• Criteria for Choosing Brand Elements
Elements
Programs to
• Options and Tactics for Brand Elements
Build Brand
Equity
Product
Strategy
Let us look at each one in detail.
Channel
Strategy
Pricing
Strategy
59. Choosing Brand Elements to Build Brand Equity Choosing Brand Elements
Criteria for
Criteria for Choosing Brand Elements :
The following criteria should be met to choose relevant brand elements such as:
•Memorability – Easily Recognized, Easily Recalled
• Meaningfulness – Descriptive, Persuasive
• Likability – Fun and Interesting, Aesthetically Pleasing
• Transferability – Within Cross Product Categories, Across Geographical Boundaries and
Cultures
• Adaptability – Flexible, Updateable
•Protectability – Legally Protected, Competitively Protected
60. Choosing Brand Elements to Build Brand Equity Tactics for Brand Elements
Options and
Options and Tactics for Brand Elements:
The following are few options and tactics for Brand Elements:
Brand Names:
Descriptive brand names in
which the function is described
literally in brand name.
Suggestive brand names in
which the name is
suggestive of a benefit
provided by the brand to
the customer.
URLs:
• Keep the URLs as simple as
possible,
• Avoid clichés,
• Use a new term for the
real word
•Use catchy phrases
Logos and Symbols:
Various kinds that can be used
• are:
Family Shields
• Fonts
• Symbols
• Abstract – shapes and image
61. Choosing Brand Elements to Build Brand Equity Tactics for Brand Elements
Options and
Options and Tactics for Brand Elements:
The following are few options and tactics for Brand Elements:
Characters:
Characters can also
be used as brand
elements.
Slogans:
Slogans are short
phrases that are
descriptive or
persuasive in nature
and provide more
info about the
brands.
Jingles:
These are musical
slogans that help in
reminding by
repetition.
Examples: The axe
song and
O Fortuna, the Old
Spice Theme Song.
Packaging:
Packaging is an important
brand element. It helps to
identify the brand, convey
descriptive and persuasive
information through
labelling, allows
protection, transportation, st
orage and consumption of
product .
62. Step 2: Planning & Implementing Brand Marketing Programs
Designing Marketing Programs to Build Brand Equity
Brand Equity can be built by focussing on designing effective marketing
Planning &
programs keeping the following in consideration:
• Implementing
Product Strategy
Brand
• Pricing Strategy
Leveraging
• Marketing
Channel Strategy Choosing
Co-branding
Secondary
Brand
Programs
Brand
Elements to
Let us look at each one Build Brand
in detail.
Associations to
Build Brand
Equity
Equity
Licensing
Celebrity
Endorsement
Designing
Marketing
Programs to
Build Brand
Equity
Product
Strategy
Pricing
Strategy
Options and
Tactics for
Brand
Elements
Channel
Strategy
Criteria for
Choosing
Brand
Elements
63. Designing Marketing Programs to Build Brand Equity
Designing Marketing Programs to Build Brand Equity
Planning &
Implementing
Brand
Marketing
Programs
Product Strategy
Businesses should ensure that they have an effective product strategy
to remain competitive in the cutting edge markets. An efficient
product strategy would ensure that the product remains updated
with the latest features, technology and enhancements and has
something extra to offer to the customers.
Pricing Strategy
Businesses can ensure profitability and longevity by paying close
attention to their pricing strategy. An efficient pricing strategy helps
companies to best position themselves within the market.
Designing
Marketing
Programs to Build
Brand Equity
Channel Strategy
Channel
Strategy
Product
Strategy
Pricing
Strategy
Channel Marketing is the practice of applying appropriate marketing
methods to distribution channels to reach customers. It involves
developing go-to-market plans, educating channel marketers or
middlemen about products or services, and motivating the members
of the marketing channel to promote products and services.
Hence, marketing and sales alignment is critical to an effective
channel strategy.
64. Step 2: Planning & Implementing Brand Marketing Programs
Co-branding
Leveraging
Secondary
Brand
Associations to
Build Brand
Equity
Licensing
Celebrity
Endorsement
Planning &
Implementing
Brand
Marketing
Programs
Designing
Marketing
Programs to
Build Brand
Equity
Product
Strategy
Pricing
Strategy
Choosing
Brand
Elements to
Build Brand
Equity
Options and
Tactics for
Brand
Elements
Channel
Strategy
Criteria for
Choosing
Brand
Elements
Leveraging
Secondary Brand
Associations to
Build Brand Equity
The Leveraging
Secondary Brand
Associations to
Build Brand Equity is
further divided into
three parts –
• Co-branding
• Licensing
• Celebrity
Endorsement
65. Leveraging Secondary Brand
Associations to Build Brand
Equity
Planning &
Implementing
Brand Marketing
Programs
Co-branding
Leveraging
Secondary Brand
Associations to
Build Brand Equity
Licensing
Celebrity
Endorsement
Leveraging Secondary Brand Associations to
Build Brand Equity
Co-branding
Co-branding occurs when two or more existing brands are
combined into a joint product or are marketed together
in some fashion. A few examples are: Sony
Ericsson, Yoplait Trix Yogurt, Nestle‟s Cheerios Cookie Bars
Licensing
Licensing involves contractual arrangements whereby
firms can use the names, logos, characters, and so forth of
other brands for some fixed fee. A few examples are:
Entertainment (The Matrix, Shrek, etc.), Television and
cartoon characters (Mickey Mouse), Designer apparel
and accessories (Gucci, Armani, etc.)
Celebrity Endorsement
Firms can also use a celebrity to endorse their brands to
help build brand equity. Celebrity endorsement helps to
draw attention to the brand and to shape the
perceptions of the brand. A celebrity should be greatly
popular and have a high level of visibility. He or she should
also have a rich set of useful associations, judgments, and
feelings associated with him/her by the general public.
66. Step 3: Measuring & Interpreting Performance
Measuring &
Interpreting Brand
Performance
Qualitative
Research
Techniques
Measuring
Sources of
Brand Equity
Quantitative
Research
Techniques
Brand Value
Chain
Measuring
Outcomes of
Brand Equity
Developing
Brand Equity
Measurement
&
Management Establishing a
System
Brand Equity
Designing
Brand
Tracking
Studies
Management
System
Holistic
Methods
Comparative
Methods
67. Step 3: Measuring & Interpreting Performance
Developing a Brand Equity Measurement & Management System
Qualitative
Research
Techniques
Measuring &
The Developing a Brand Equity Measurement and Management System
Interpreting
is further divided into three parts –
Brand
• Brand Value Chain
• Performance Tracking Studies
Designing Brand
Measuring
Measuring
• Establishing a Brand Equity Management System
Comparative
Sources of
Outcomes of
Brand Equity
Brand Equity
Let us look at each one in detail.
Quantitative
Research
Techniques
Brand Value
Chain
Developing
Brand Equity
Measurement
&
Management Establishing a
System
Brand Equity
Designing
Brand
Tracking
Studies
Management
System
Holistic
Methods
Methods
68. Step 3: Measuring & Interpreting Performance
Qualitative
Research
Techniques
Measuring
Sources of
Brand Equity
Measuring Sources of Brand Equity: Capturing
Customer Mind-Set
There
Measuring &are two methods that are used for
measuring the sources of brand equity or to
Interpreting
capture the customer‟s mind-set, which are as
Brand
follows:
Performance
Measuring
• Qualitative Research Techniques
Comparative
Outcomes of
Methods
• Quantitative Research Techniques
Brand Equity
Let us look at each one in detail.
Quantitative
Research
Techniques
Brand Value
Chain
Developing
Brand Equity
Measurement
&
Management Establishing a
System
Brand Equity
Designing
Brand
Tracking
Studies
Management
System
Holistic
Methods
69. Measuring Sources of Brand Equity –
Quantitative Research Techniques
Awareness
Brand awareness is related to the strength of the brand in
memory. Brand awareness is reflected by consumers‟ ability to
identify various brand elements.
The following factors must be taken into consideration while
measuring brand awareness:
• Recognition: This relates to consumers‟ ability to identify the
brand under different circumstances.
•
Recall: „Unaided recall‟ means the identification with
minimal cues. „Aided recall‟ means various cues were used
to assist recall.
•
Corrections for Guessing: The research data collected for
measure must consider the issue of consumers „making up‟
responses or „guessing‟. These may affect strategic brand
decisions.
•
Strategic Implications: It is important that researchers
understand that recognition and recall is essential in
analyzing formation of consideration sets and product
decisions made by consumers.
70. Step 3: Measuring & Interpreting Performance
Qualitative
Research
Techniques
Measuring
Sources of
Brand Equity
Measuring Outcomes of Brand Equity: Capturing Market
Performance
There are
Measuring & two methods that are used for measuring the
outcomes
Interpreting of brand equity or to capture the market
performance, which are as follows:
Brand
• Comparative methods
Performance
Measuring
• Holistic methods
Comparative
Outcomes of
Brand Equity
Let us look at each one in detail.
Quantitative
Research
Techniques
Brand Value
Chain
Developing
Brand Equity
Measurement
&
Management Establishing a
System
Brand Equity
Designing
Brand
Tracking
Studies
Management
System
Holistic
Methods
Methods
71. Step 4: Growing and Sustaining Brand Equity
Brand
Architecture
Designing and
Implementing
Branding
Strategies
Growing and
Sustaining
Brand Equity
Brand
Hierarchy
New Products
and Brand
Extensions
Managing
Brands over
Time
Introducing
& Naming
Products and
Brand
Extensions
Advantages
of Extensions
Revitalising
Brands
Disadvantage
s of Extensions
Reinforcing
Brands
72. Step 4: Growing and Sustaining Brand Equity
Brand
Architecture
Designing and Implementing Branding Strategies
Most brands are part of a wider organization. The
Growing and
Designing and Implementing Branding Strategies is further
Sustaining
divided
Brand Equity into two parts –
Designing and
• Brand Architecture
Managing
Reinforcing
Implementing
• Brand hierarchy over
Brands
Branding
Strategies
Brand
Hierarchy
New Products
and Brand
Extensions
Brands
Time
Introducing
& Naming
Products and
Brand
Extensions
Advantages
of Extensions
Revitalising
Brands
Disadvantage
s of Extensions
73. Designing and Implementing Branding Strategies –
Brand Architecture
Brand Architecture
It is the structure and organization of brands.
Breadth of a Branding Strategy
Breadth of Product Mix: Three factors determine the inherent attractiveness of a product
category:
1. Aggregate market factors
2. Category factors
3. Environmental factors
Depth of Product Mix: An important rule to remember to decide the depth of the product
mix is: “A product line is too short if the manager can increase long-term profits by adding
items; the line is too long if the manager can increase profits by dropping items”.
Depth of a Branding Strategy:
Flankers: Flanker brands are used to create stronger points of parity with
competitors‟ brands.
Cash Cows: In firms, there are some brands that retain loyal customers and
generate healthy profits with virtually no market support.
Low-end Entry-level / High-end Prestige Brands: The first category low-end entrylevel are called “traffic builders” and they are able to “trade up” customers to the
higher-priced brands.
74. Designing and Implementing Branding Strategies –
Brand Hierarchy
Brand Hierarchy
It is a means of summarizing the branding strategy by displaying the number and nature of common and
distinctive brand elements across the firm‟s products. It helps to reveal the explicit ordering of brand
elements.
Potential Levels of Brand Hierarchy:
A simple representation of possible brand elements and thus, potential levels of a brand
hierarchy might be as follows:
1. Corporate brand e.g. Chrysler-Daimler
2. Family brand e.g. Mercedes-Benz
3. Individual Brand e.g. 1000 SEL
4. Modifier (designating item or model) LX / VX
Brand Hierarchy Built within a Firm:
Brand hierarchy is a means of summarizing the branding strategy by displaying the number and
nature of common and distinctive brand elements across the firm‟s products. It helps to reveal
the explicit ordering of brand elements.
Let us now look at how brand hierarchy can be built within a firm. This can be done in two ways:
By Building Equity at Different Hierarchy Levels
By Creating Corporate Image Dimensions
75. Step 4: Growing and Sustaining Brand Equity
Brand
Architecture
Introducing and Naming New Products and Brand Extensions
The Introducing and Naming New Products and Brand Extensions is
Growing and
further divided into three parts –
Sustaining
• New Products and Brand Extensions
Brand Equity
• Advantages of Extensions
Designing and
Managing
Reinforcing
Implementing • Disadvantages of Brand Extensions
Brands over
Time
Branding
Strategies
Brand
Hierarchy
New Products
and Brand
Extensions
Introducing
& Naming
Products and
Brand
Extensions
Advantages
of Extensions
Revitalising
Brands
Disadvantage
s of Extensions
Brands
76. Step 4: Growing and Sustaining Brand Equity
Managing Brands over Time
Brand
Architecture
Designing and
Implementing
Branding
Strategies
Growing is very important to understand the long term effects of
It and
Sustaining
marketing activities on the brand equity. Firms should
Brand Equity consider the consumer response to past
carefully
Brand
Hierarchy
New Products
and Brand
Extensions
Managing
marketing activities, the brand awareness and image, as
Reinforcing
Brands over
well as the customer response to current marketing
Brands
activities and toTime the response to future activities.
predict
Analyzing this information will help firms to manage the
brands over a long period of time. There are various
Revitalising
Introducing
strategies that are used to manage the brands over a long
Brands
& Naming of time which are as follows:
period
Products Reinforcing Brands
• and
Brand
• Re-vitalising Brands
Extensions
Advantages
of Extensions
Disadvantage
s of Extensions
77. Brand Management Guidelines
8
Affix Products & Services
An effective strategy of brand management is
to ensure that the brand is associated to the
most popular products and services offered by
the licensee’s products and services.
7
6
Decide about License Agreements:
The decision of whether the license agreement should be
exclusive or non–exclusive will have important
implications for all of the business.
Establish and Maintain the Brand
It is necessary that for establishing and maintaining a brand, a
holistic approach, or an “overall brand strategy” is used.
Enforce Key Provisions through License agreements
Enforcing various important concerns such as quality
control standards and reporting standards can be done
through a properly charted out license agreements.
5
4
Select Proper License Partners
The profile of the ideal license partner should be developed and
the focus should be to ensure long-term relationships with the
licensors and licensees.
Actively Integrate the Brand Management Strategy
into Product Development and Launch Activities
It is important that the Companies actively integrate
the brand strategy into product development and
launch activities by using a clear and proactive
strategy.
Maximize the Strategic Advantage of the Brand
It is important that organizations focus on maximizing
the leverage of the brand.
3
2
1
Maintain Consistency between the Brand Strategy and
Overall Business Goals
The brand strategy should be in line with the overall
business goals of the organization.
The following key points provide some strategic brand management guidelines that should be
78. Brand Strategy Defined
The brand strategy should influence the total operation of a business to
ensure consistent brand behavior in the marketplace and consistent brand
experiences for the customer.
Trends
Motivations/”Sweet spots”
The purpose of a brand
Decision-making process/criteria
strategy is to provide a plan
Higher level benefits
for the systematic
Image/Identity gaps
development of a strong
New Segments
coherent brand in order to
Unmet needs
enhance revenue and profits.
The strategy should be driven
Where to Find Insights
by the principles of
differentiation and sustained
The purpose of a target insight is to
consumer appeal.
describe how a meaningful connection
can be established between what the
brand offers and the target‟s explicit or
implicit needs in order to help identify a
relevant brand promise.
79. Branding
Core
Brand
Internal
Living the brand
Operations
Who are you
Core values, core
purpose, core
attributesand business
model
Positioning
Definition of your
customers, competitors
, differentiationand
brand touch points
Product/service design,
Systems and procedures and
brand culture maintenance
Identity
Your brand name,
Brand design
standards,
and key touch point
concepts
Communication
External
Marketing plan
Marketing
Core
Brand
Website, Collateral, Packag
ing, PR, Advertising, Environ
ments, Interactive, Media,
etc.
80. 80
Brand Strategy and Marketing Strategy
Brand Strategy is an integral part of the overall strategic
marketing process. It helps to bridge the gap between business
strategy and marketing strategy.
Brand Strategy is separate from the
4P‟s. It guides and inform decisions
about every aspect of the
marketing mix.
Strategic Marketing Process
I. Corporate Objectives & Brand Portfolio
II. Marketing Objectives
III. Brand Strategy
Communications Strategy
Product and Pricing Strategy
Channel and Distribution Strategy
IV. Marketing Execution & Monitoring
81. Brand Strategy Process
The process of creating a brand strategy begins with a brand audit and ends with
a plan for executing the brand across all touch points. It can be generally thought
of as having three stages..
Brand Audit
Competitive
Brand
Assessment
Inventory
Points of Parity and Difference
Target & Insight
Brand Strategy
Equity
Pyramid
Positioning
Personality
Objectives & Metrics
Brand Execution
Brand
Elements
Communications
Strategy
Brand Experience Map
CRM &
Community
Building
82. Insights Examples
Mastercard “Priceless” campaign
“What we found was that people buy things because of how those
things make them feel… So the idea is that the item allows you to get
to some other place in your life that makes you feel good.”
National Youth Anti-Drug Program “Above the
Influence” campaign
“We wanted to elevate the conversation to make it more „pro-me‟
than anti-drug. We know teens are very sensitive to
influences, positive and negative, from peers and the media. That‟s
why we positioned it so teens would see influence as the enemy and
marijuana as one of the influences that gets in their way. It‟s a way of
empowering them so they can stand on their own at a key moment
of choice – seeing that they could be above the influence.”
83. Points of Parity and Difference
Potential Brand Differences
Wants and Needs
Consumers
Our
Brand
PODs
Competitive Brand Differences
POPs
• Points of Parity (Category Benefits)
Their
PODs
Competition
The purpose of a POD‟s analysis
is to identify what ideas from
our brand and competitive
brands are most meaningful
and potentially differentiating.
The purpose of a POP‟s analysis
is to identify which category
benefits are critical for
84. Brand Pyramid
The purpose of the brand equity pyramid is to outline the basic building blocks of a what the brand
should stand for in order to guide the process of building brand equity. It is the basis for determining key
elements of the brand strategy – brand vision, brand positioning, and brand personality and brand
measurement.
Brand Equity Pyramid
Relationship
Resonance
Response
Consumer Judgments
Consumer
Feelings
The model was developed by Kevin Keller, professor
of brand strategy at Dartmouth, based on his
„Customer Based Brand Equity Model‟ (CBBE). Keller
is the author of two definitive texts on brand
building. The pyramid is just one of 4-5 leading
representations of the components of brand equity.
Other models include Y&R‟s Brand Asset
Valuator, Millward Brown‟s BrandDynamics
model, etc. While each model has its
adherents, upon closer scrutiny, they are all very
similar in their content and purpose. Whichever is
selected, what is important is that it provide a
shared basis for understanding what is meant by
„brand equity‟ and how this construct applies to
your brand.
Meaning
Brand Imagery
Brand Performance
Identity
Salience
85. Brand Positioning
The purpose of brand positioning is to explain how the brand will create a sustainable competitive
advantage in the minds of prospects & customers in order to win loyal customers and ensure revenue and
profits.
For (Target), (Brand/Company) is the only/best (consumer frame of
reference) that (statement of key benefit or guiding value), because/by
(reason to believe, key credibility point).
Evaluation Criteria: Brand Fit, Customer Relevance, Uniqueness, Sustainability, Credibilit
86. Positioning Building Blocks
Homeowners/Business owners
Adults 35+; HHI $50,000+
Experiencing -----
BENEFIT
SUPPORT
Product quality or value
Most Reputable Company
Service or delivery difference
Category definition
Aware of ------
Need state or problem
88. Branding and Stage Gate Process
3. Analyze
competition and
environment to
identify branding
opportunity
1. Identify goals
that branding
can address
Ideation
Gate
1
5. Preliminary
evaluation of
brand
Detailed
Preliminary Gate
Gate Development Gate
investigation 3
investigation
2
4
Testing and
validation
6. Full evaluation
of brand
Gate
5
Full product
and market
launch
PIR
Postimplementation
review
Initial
screen
Second
screen
2. Map existing
brand culture
Decision on
business
case
Postdevelopment
review
4. Design
brand strategy
Precommunication
business analysis
Advertising public
relations
corporate
communications
pricing
promotions
personal selling
channels/ retail
Your
89. Branding and Stage Gate Process
3. Analyze
competition and
environment to
identify branding
opportunity
1. Identify goals
that branding
can address
Ideation
Gate
1
5. Preliminary
evaluation of
brand
Detailed
Preliminary Gate
Gate Development Gate
investigation 3
investigation
2
4
Testing and
validation
6. Full evaluation
of brand
Gate
5
Full product
and market
launch
PIR
Postimplementation
review
Initial
screen
Second
screen
2. Map existing
brand culture
Decision on
business
case
Postdevelopment
review
4. Design
brand strategy
Precommunication
business analysis
Advertising public
relations
corporate
communications
pricing
promotions
personal selling
channels/ retail
Your
90. An “Inside Out”
Look At Brand
Opportunities and
Vulnerabilities
Strategic Brand Assessment
91. Most marketers have a good “Outside In” perspective on their
brands.
Awareness
Trial
Penetration
Consumer
Attitudes
Brand
Ratings
Preference
Scores
All important measures of marketing
effectiveness.
An “Inside Out” Perspective
The Strategic Brand Assessment delivers
an “Inside Out” perspective by providing
insights and perceptions
From three critical audiences:
Executives, Employees, Channel Partners
Increasingly, the success of a brand is not
just the result of well crafted marketing
But… programs.
Strong brands are those that have
achieved alignment of values with both
internal and external audiences.
Think: Starbucks, Southwest
Airlines, Google, Nordtrom’s.
A strong brand is the result of effective
marketing plus:
Corporate vision.
Culture and
Structure.
Internal
Communications.
Management.
Customer
Services…
92. BRAND EQUITY
A brand is a name or symbol used to
identity the source of the product. The
brand can add significant value when it
is well recognized and has positive
associations in the mind of the
consumer. This concept is known as
brand equity.
PERSPECTIVES OF BRAND EQUITY
Financial
Brand extension
Consumer based
Brand is an intangible asset that
produces added benefits for the
business. This is the domain of
strategic brand management : how
to create value with brand
management.
•Loyalty (price premium, satisfaction).
•
•
NEED FOR BRAND EQUITY
Values of brand equity ?
Value to the customer ?
Value to the firm ?
Perceived quality (popularity).
Association (brand personality, organizational
association).
•
Awareness (brand awareness).
•
Market behavior (market share).
93. Brand equity is
a set of brand assets and liabilities
linked to a brand
Earning wealth and recognized through the power of
brand name or symbol.
NEED FOR BRAND EQUITY
A brand is a name or
Values of brand equity ?
symbol used to identity
the source of the
Value to the customer ?
product. The brand can
add significant value
when it is well recognized Value to the firm ?
and has positive
associations in the mind
of the consumer. This
concept is known as
brand equity.
PERSPECTIVES OF BRAND
EQUITY
Financial
Brand extension
Consumer based
94. Elements of Brand Equity:
Brand Strategy
Brand Loyalty
Brand Awareness
Developing Brand Vision
Perceived Quality
Establishing Brand Position
Brand Associations
Fulfilling Brand Contract
Measuring Brand Loyalty
Communicating Brand Position
•
Purchase Behavior Patterns
•
Switching Cost Analysis
•
Satisfaction Measurement
Strategic Value of Brand Loyalty
•
•
•
Reduce marketing cost
Trade (channel distribution)
leverage
Attracting new customers
95. ASPECTS OF BRAND EQUITY
Brand
MEASURING BRAND EQUITY
Brand awareness
Brand association
Brand loyalty
Brand position
Brand proposition
Brand equity
Loyalty (price
premium, satisfaction).
Perceived quality
(popularity).
Association (brand
personality,
organizational
association).
Awareness (brand
awareness).
Market behavior
(market share).
96. What are the respective brand images?
Healthy, rejuvenating “miracle elixir”, for
people on the go, status symbol (you want to
be seen with Vitamin Water)
What perceptions does the brand seek to
establish?
What does the brand stand for? (brand
essence)
•
•
Health, vitality, enhanced water, enhanced
lifestyle, trendy
“Not your ordinary bottled water” “Hydration
for every occasion” – tagline
There is a new kid on the block – a
delicious, nutritious, flavoured water – one for
every “need”
97. Brand Equity Concept
Brand Equity is the value, both tangible and
intangible, that a brand adds to a product/service; the
added value a brand name identity brings to a product
or service beyond the functional benefits provided.
Brand Equity
Customerbased
The customer – based brand equity
focuses exclusively on the
relationship customers have with the
brand
The concept of brand equity is measured in
two terms:
Market based
The market – based brand
equity aims at producing
measures in dollars, euros or
yen.
98. Brand Equity Concept
You can see that when a
commodity becomes a
brand, it is said to have
equity. Brand equity is the
premium a brand can
command in the market
or the difference
between the perceived
value and the intrinsic
value.
Brand equity can be
thought of as the "added
value" endowed to a
product in the
thoughts, words, and
actions of consumers.
There are many different
ways that this added
value can be created for
a brand.
Therefore, it is important
that Brand Equity should
be nourished and
replenished.
99. Brand Equity Concept
Companies must take
care of its brands so that
the brand equity is not
diluted or dissipated.
A few examples of
products with excellent
brand equity include
Google, Nike and
Starbucks.
Let us now look at the
process of building
brands.
100. Measuring Brand Equity
Steps in Calculating Brand Equity
Brand Audits
Brand Tracking
Market
segmentation
Financial
analysis
Brand strength
Role of
branding
Brand Valuation
Brand value
calculation
101. WHAT IS BRAND EQUITY
Awareness
Loyalty
Preference
Availability
Familiarity
Image and
personality
Associations
112. Measuring Brand Equity
Strength
Differentiation
The Brand's
unique points
of difference
relates to
premium
margins
Strength
Relevance
How
appropriate
the brand to
you relates to
market
penetration
Esteem
Knowledge
How well
regarded the
brand is relates
to its delivery
on promise
A deep
understanding
of the brand
relates to
overall
customer
experience
113. What makes a Brand Strong?
It is important that in order to make a strong impact, a brand should be strong.
There are a few characteristics that make a „strong‟ brand, which are as follows:
A strong brand is a major driver of shareholder value.
A strong brand is like an asset. It can be used as collateral for financial loans , buying and
selling as an asset.
A strong brand has strong attributes, values and personality that the consumers associate
with the brand.
A strong brand is a means of attaining higher customer loyalty.
A strong brand always delivers the benefits that customers truly desire.
A strong brand makes use of and coordinates full range of marketing activities to build
equity.
A strong brand has the right blend of product quality, design, features, costs and prices.
A strong brand is properly positioned and occupies a particular niche in consumers'
minds.
A strong brand compels consumers to willingly pay a substantial and consistent premium
price for the brand versus a competing product and service.
114. Gillette as a Strong Brand
Gillette is one of the strongest brands in the market of men‟s personal care
products. It has tied the actual quality of its products to various intangible
factors such as:
User Imagery
The type of person who uses Gillette, the type of situations in which the
brand is used, the type of personality Gillette portrays etc.
Technology
Its razor blades are as technologically advanced as possible through
continuously spending millions of dollars in R&D.
Sub-branding
It has developed several sub brands such as Trac
II, Altra, Sensor, Mach3 to remain on top of its competitors.
Enhancements
It makes constant improvements with modifiers like Altra Plus, Sensor
Excel.
115. Insight about branding
Your brand represents
your future earnings
Successful companies
both innovate and
build brands
Branding is about
customer perceptions
Strong brands are
worth a lot of money
Keep your brand
consistent
A brand is not just a
name or Logo
The Customer is
anyone involved in
the purchase decision
Perceived value is the
maximum your
customer will pay – all
marketing is the
management of
perceived value
A brand with multiple
positioning may
confused
117. Some Metrics to Measure Return
on Brand Investment:
•
•
Brand name
knowledge, awareness, recog
nition, recall: measures
strength of the brand as
reflected by customer's ability
to identify the brand under
varying conditions
Contract fulfillment: measures
the degree to which your
brand is upholding its Brand
Contract
Some Metrics to Measure
Return on Brand Investment:
Acquired customers: counts customers claiming
they have come to your company based on
the strength of the brand
•
Customer loyalty: measures the degree to
which customers continue to purchase your
brand and how long that loyalty has lasted
•
Financial value: reports the financial value
of your brand in the marketplace
•
Price premium: finds the percentage of
price premium your brand is able to
command over private-label brands, as well
as key competitor brands
118.
119.
120.
121.
122.
123.
124. Definition
The Marketing Communications
Mix
The specific mix of
advertising, personal
selling, sales promotion, and
public relations a company
uses to pursue its advertising
and marketing objectives.
Introduction to Marketing Communications
(Marcom)
Integrated Marketing
Communication (IMC)
Programs
Business-to-Consumer
(B2C)
Business-to-Business
(B2B)
Integrated Marcom
B2C&B
125. Table 1.1
The Tools of Marketing Communications
1. Media Advertising
• TV
• Radio
• Magazines
• Newspapers
2. Direct Response and Interactive
Advertising
• Direct mail
• Telephone solicitation
• Online advertising
3. Place Advertising
• Billboards and bulletins
• Posters
• Transit ads
• Cinema ads
4. Store Signage and Point-ofPurchase Advertising
• External store signs
• In-store shelf signs
• Shopping cart ads
• In-store radio and TV
5. Trade- and Consumer-Oriented
Promotions
• Trade deals and buying
allowances
• Display and advertising
allowances
• Trade shows
• Cooperative advertising
• Samples
• Coupons
• Premiums
• Refunds/rebates
• Contests/sweepstakes
• Promotional games
• Bonus packs
• Price-off deals
6. Event Marketing and
Sponsorships
• Sponsorship of sporting events
• Sponsorship of arts, fairs, and
festivals
• Sponsorship of causes
7. Marketing-Oriented Public
Relations and Publicity
8. Personal Selling
127. Integrated Marketing Communications
Clarity
Consistency
Maximum Impact
Advertising
Direct Response
Integrated
Marketing
Communications
Sales Force
Events and Experiences
A planning process designed to assure that all brand
contacts received by a customer or prospect for a
product, service or organization are relevant to that
person and consistent over time.
130. Precondition for promotion: communication
Source
Medium
of
Transmission
Encoding
Process
Decoding
Process
Receiver
or
Audience
Feedback
NOISE
Source/Sender
Ad agency
Intends to share
meaning
NOISE
anything decreases
clarity
translating
meaning of
message into
some form
(Got Milk?)
Means of
reaching
target (print
ad, T.V., sales
person)
(different markets
see same message
differently
Target makes
sense of
message
131. Fragility of Communication Process
Probability
Awareness
50%
Knowledge
50%
Liking
50%
.5 X .5 X .5 X .5 X .5 X .5 = 1.56%
Preference
50%
Conviction
50%
Purchase
50%
133. Identify the Target Audience
Category
Needs
Potential Buyers
Deciders or Influencers
Determine Objectives
Brand Attitude
Positive
Brand Purchase Intention
Current Users
Brand
Awareness
Negative
134. Design Communications
What to say?
(Message Strategy)
Select Channels
Personal Communications
How to say it?
(Creative Strategy)
Who should say it?
(Message source)
NonPersonal (Mass)
Communications
140. Promotion Mix Over The PLC
Introduction
Industry
Sales
Maturity
Decline
Advertising
PR; Selling
Advertising
PR; Selling;
Promotions
Publicity
Advertising
Dollars
Growth
0
Time
Advertising
Promotions;
Selling
141. Objectives of communication
PROVIDE INFORMATION
• Goal is informing the market about the availability of a
product.
INCREASE DEMAND
• May increase primary demand, or desire for a
particular product category.
• May increase selective demand, or desire for a
specific brand.
ACCENTUATE THE PRODUCT’S
VALUE
• Greater value helps justify a higher
price in the marketplace.
• Marketers advise staying away from
these words—
quality, value, service, caring, and
integrity—because they are overused
and vague.
DIFFERENTIATE THE PRODUCT
STABILIZE SALES
• Differentiation allows firms more control over
marketing variables such as price.
• Can help make demand more
consistent throughout the year.
143. Steps in Developing Communication Program
1. Identifying the
Target Audience
2. Determining the
Response Sought
3. Designing a
Message
4. Choosing Media
5. Selecting the
Message Source
6. Collecting
Feedback
144. Integrated Marketing Communications Planning Model
Review of Marketing Plan
Promotional Program Situation Analysis
Analysis of the Communications Process
Budget Determination
Develop Integrated Marketing Communications Programs
Advertising
Advertising
Objectives
Message
Strategy
Sales
Promotion
Sales
Promotion
Objectives
Sales
Promotion
Strategy
PR/
Publicity
Personal
Selling
Direct
Marketing
Internet/
Interactive
PR/
Publicity
Objectives
Personal
Selling
Objectives
Direct
Marketing
Objectives
Internet/
Interactive
Objectives
PR/
Publicity
Strategy
Personal
Selling
Strategy
Direct
Marketing
Strategy
Internet/
Interactive
Strategy
Integration & Implementation of Marketing Communications Strategies
Monitor, Evaluate & Control Promotional Program
145. IMC Program Situation Analysis
External Factors
Environmental analysis
– Technological
Political/Legal
– Demographic
Socio/Cultural
– Economic
Competitive Analysis
– Direct and indirect competitors
– Position relative to competitors
– Size of competitors’ advertising/
promotional budgets
– IMC strategies being used by competitors
Analyze best combination of
source,
message and channel
factors for
communicating with target
audience.
Establish communication goals
and objectives.
Potential Communications
Objectives
Sales
Customer loyalty
Company image
Brand image
Store patronage
Service contract
An inquiry
A visit by a prospect
Product trial
Recommendation
Adoption of the product
146. AIDA: Attention?
Attention-> Interest-> Desire ->ACTION!!!
It gets harder as you go….
Attention (e.g., sign-flippers, clowns)
AIDA: Interest?
Keep Interest – difficult in ―our ADD
world‖
Tactics:
Headline (New York Post; only part read)
Drama/story (Dos Equiss )
Visuals (sex)
Cartoons (M&Ms)
Layout
Dialog (it’s a Diet Coke Thing;
Colors
Size (Times Square)
Electronic: sound; music; animation
Gross images (this nasty eyeball gets your
attention!)
Wusssssup?)
147. AIDA: Desire?
Arouse desire
Tactics:
USP: Unique selling proposition
(Gillette razor; clear
deodorant, clear soda)
Provide a rationale (―I’m worth it‖)
Address ―you‖ with their
needs/problems
(―Do you want to make more $?‖;
―Have you been injured in an
accident?‖)
Federal Express: When it
absolutely, positively has to be
there overnight.
AIDA: Action?
Action – if consumers’ desire, hope action is natural
(and realistic for them):
Ask consumers to do something (log on to…; call..)
Imperative: ―Drink Coke,‖ ―Fly the Friendly Skies‖
Facilitate: 1-800 or web
Direct competitive: supplies are limited!!
Do you view ads after purchasing that product?: Why?
148. Marketing - Communication Instruments
Comparisson of the classical (above the line) and the “non-classical”
(below the line) communication instruments
Above The Line (ATL)
Classical marketingrecognizable for everybody
Below The Line (BTL)
Alternative marketingmainly visible only for
targeted groups
Classical advertisement
Print media
Radio / TV / Movies
Outdoor advertisement / Billboard
advertisement
Public relations
Sponsoring
Event marketing
Exhibitions / Trade fair
Product placement
Promotions
Direct marketing
Mobile marketing
Online marketing / Search engines
Viral marketing / Guerilla marketing
149. Word of Mouth Communication
HOW TO USE WORD-OF-MOUTH MARKETING
(WOMM) TECHNIQUES AND SOCIAL MEDIA TO
DRIVE GROWTH BY CREATING A POSITIOVE
BUZZ AROUND YOUR PRODUCT OR SERVICE.
ONLY 14% TRUST ADS
ONLY 18% OF TV ADS
GENERATE POSITIVE ROI
84% OF B2B CAMPAIGNS
RESULTED IN LOWER SALES
100% INCREASE IN AD
SPENDING
JUST TO ADD 1% - 2% IN
SALES
…the
JESUS
PHONE
rocks!
..I got to
have an
phone
150. LAW OF FEW
10% INFLUENCE PURCHASING BEHAVIOR OF
OTHER 90%
BRAND ADVOCATES
AVERAGE
CUSTOMERS,
CLIENTS,
CONSUMERS
WOMM = C2C CONVERSATION
91% LIKELY TO BUY ON RECOMMENDATION
Consumer-to-consumer conversation
151. 76% of consumers don‟t believe that
companies tell the truth in
advertisements
Yankelowich,2006
152. Multi-Channel-Marketing
Display of different marketing channels
Personal Sales
E-Mail Marketing
Search Engine Marketing
Database Marketing
Multi-Channel
Marketing
Online Advertising
Direct Mail Marketing
Telemarketing
Social Media
153.
154.
155.
156.
157.
158.
159.
160. Mapping Customer experience
Customer
experienc
e elements
Customer
expectation
s
Functional
areas
Getting to
know
Buying
Activa
ting
Using
Paying
Contacti
ng
Leaving
•Brand
awareness
•Offer
availability
•What ?
And where
•Offer
Availability
•Value of
money
•Acquisitio
n
•Speed
•Convinced
•Getting
started
•Usability
•Coverage
•Reliability
• Quality
•Roaming
•Accuracy
• Control
•Choice
•Convinced
•Responsive
ness
•Friendly
Consistency
•Helpfulness
•Resource
fullness
•Flexibility
•Loyalty
•MAKT
•Sales
•Customer
service
•MAKT
•Logistic
•Sales
•Customer
service
•IT
•MAKT
•Sales
•Customer
service
•Network
•IT
•Portals
•Network
•IT
•Customer
service
•Sales
•IT
•Customer
service
•Customer
service
•Sales
•IT
•Portals
•MAKT
•Sales
•Customer
service
•IT
161. Branded Customer experience
Tow routes to create branded customer
experience
Experiencing the brand
Brand essence
Translates
into
•What you
communicate to the
marketplace
Market
Opportunity
Experiencing the brand
Branding the experience
Brand promise
•The value you commit
to deliver to customers
Conceived
customer
VP
Create
customer
experience
Develop the
route to
market
Translates
into
Different in
starting point
Branded Customer
experience (BCE)
•Delivery of your brand promise
through every interaction your
customer have with your people
, processes and products
Design the
brand to
communicate
Customer realization
of the BCE
162. Branded Customer experience
Branding the experience
Branded customer
experience
•Creating a unique
experience through
every interaction your
customers have with
your people
, processes and
product
Translates
into
Brand value
•The value your
customers come to
expect and rely on
Is powerful driver of
customer loyalty
Translates
into
Brand image
•What you become
known for in the
marketplace
165. Flipchart Time
Which are the steps in the
customer journey when
booking a holiday?
How could you innovate
on them?
THE CUSTOMER JOURNEY
CUSTOMER PERSPECTIVE
166. THE CUSTOMER JOURNEY
CUSTOMER PERSPECTIVE
1.
2.
3.
4.
5.
6.
I dream of going on holiday
I research my holiday
I plan my holiday
I select my holiday
I purchase my holiday
I receive travel documents &
tickets
7. I anticipate departure
8. I prepare my trip
9. I travel to my destination
10.I discover my destination
11.I experience my destination
12.I record my memories
13.I share my experience
14.I travel back home
15.I share my memories
How Can You Innovate Now?
168. WHAT DO YOUR CUSTOMERS
REALLY CARE ABOUT?
WHICH EMOTIONS ?
ARE ALL EMOTIONS EQUALLY
STRONG?
1.
2.
3.
4.
5.
6.
I dream of going on holiday
I research my holiday
I plan my holiday
I select my holiday
I purchase my holiday
I receive travel documents &
tickets
7. I anticipate departure
8. I prepare my trip
9. I travel to my destination
10.I discover my destination
11.I experience my destination
12.I record my memories
13.I share my experience
14.I travel back home
15.I share my memories
169. Customer Relationship Management
Suspect
• Mass Email
• Website Hosting
• Search Engine
Optimization
Lead
Repurchase
•
• Lead
Dashboard
• Intranet Sales &
• Marketing Tools
Upsell/ Cross-sell
Prospect
Service
Delivery
• Customer Portal
• Advanced
• Forecasting
• Project Tracking
• Time & Expense
Order
• Integrated Order
Mgmt.
• Bookings Dashboard
• Incentive
Management
Quote
• Integrated
Quotes/Proposals
• Document Management
• Document Publishing
Quality
Your Text Goes here.
Dow nload this
aweso me dia gra m.
Bring your presentation
t o
l i f e .
• Product Catalog
• Service Catalog
Get
Quote
Meet
• Group Calendaring
• Resource Availability
Your Logo
As a result, the number of Apple Advocates trends well above that of the B2C technology companies
As a result, in spite of already being the third largest computer and office equipment company in the Fortune 500, Apple still captures growth rates will in excess of any of its competitors.
The marketing communications mix consists of eight major modes of communication.
Subaru wants to insure that the messages being sent from its advertising, direct response, sales people, and events and experiences provide clarity, consistency, and deliver the maximum impact.
The way brand associations are formed does not matter. Marketing communications activities must be integrated to deliver a consistent message and achieve the strategic positioning. The starting point in planning marketing communications is a communication audit that profiles all interactions customers in the target market may have with the company and all its products and services. To implement the right communications programs and allocate dollars efficiently, marketers need to assess which experiences and impressions will have the most influence at each stage of the buying process.In building brand equity, marketers should be “media neutral” and evaluate all communication options on effectiveness (how well does it work?) and efficiency (how much does it cost?).
In the hierarchy-of-effects model (the second column of Figure 17.2), there are six steps involved in a marketing communications campaign. Assume each of the six steps has a 50% of chance of being successfully accomplished, the likelihood of all six steps occurring successfully is .5 × .5 × .5 × .5 × .5 × .5, which equals 1.5625 percent. If the probability of each step’s occurring were 10 percent, then the joint probability of all six events occurring is .0001 percent—or only 1 chance in 1,000,000!To increase the odds for a successful marketing communications campaign, marketers must ensure that:1. The right consumer is exposed to the right message at the right place and at the right time.2. The ad causes the consumer to pay attention but does not distract from the intended message.3. The ad properly reflects the consumer’s level of understanding of and behaviors with the product and the brand.4. The ad correctly positions the brand in terms of desirable and deliverable points-of-difference and points-of-parity.5. The ad motivates consumers to consider purchase of the brand.6. The ad creates strong brand associations with all these stored communications effects so they can have an impact when consumers are considering making a purchase.
The target audience is a critical influence on the communicator’s decisions about what to say, how, when, where, and to whom.Target audience can be profiled in terms of market segmentsusage and loyaltybrand knowledgeCategory Need—Establishing a product or service category as necessary to remove or satisfy a perceived discrepancy between a current motivational state and a desired motivational state. Brand Awareness—Fostering the consumer’s ability to recognize or recall the brand within the category, in sufficient detail to make a purchase. Brand Attitude—Helping consumers evaluate the brand’s perceived ability to meet a currently relevant need.Brand Purchase Intention—Moving consumers to decide to purchase the brand or take purchase-related action.
Message strategy: buyers expected one of four types of reward from a product: rational, sensory, social, or ego satisfaction. Management searches for appeals, themes, or ideas that will tie in to the brand positioning and help establish points-of-parity or points-of-difference.Creative strategy are the way marketers translate their messages into a specific communication. They can be classified as either an informational appeal that elaborates on product or service attributes or benefits or a transformational appeal thatelaborates on a nonproduct-related benefit or image.Message source: messages delivered by attractive or popular sources can achieve higher attention and recall, which is why advertisers often use celebrities as spokespeople.Personal communications channels let two or more persons communicate face-to-face or person-to-audience through a phone, surface email, or e-mail. They derive their effectiveness from individualized presentation and feedback and include direct and interactive marketing, word-of-mouth marketing, and personal selling.Nonpersonal channels are communications directed to more than one person and include advertising, sales promotions, events and experiences, and public relations.
Competitive-parity method: set budget to achieve share-of-voice parity with competitors.Affordable method: set budget at what the company can afford. Percentage-of-sales method: set expenditures at a specified percentage of current or anticipated sales or of the sales price.Objective-and-task method: develop budgets by defining specific objectives, determining the tasks that must be performed to achieve these objectives, and estimating the costs of performing them. The sum of these costs is the proposed communication budget.
Companies must allocate budget over various modes of communication. Within the same industry, companies can differ considerably in their media and channel choices. The substitutability among communications tools requires marketing functions to be coordinated.Type of product market - Consumer marketers tend to spend more on sales promotion and advertising; business marketers tend to spend more on personal selling.Buyer readiness stage - Advertising and publicity play the most important roles in the awareness-building stage. Customer comprehension is primarily affected by advertising and personal selling. Customer conviction is influenced mostly by personal selling. Closing the sale is influenced mostly by personal selling and sales promotion. Reordering is also affected mostly by personal selling and sales promotion, and somewhat by reminder advertising.product life cycle stage - In the introduction stage, advertising, events and experiences, and publicity have the highest cost-effectiveness, followed by personal selling to gain distribution coverage and sales promotion and direct marketing to induce trial. In the growth stage, demand has its own momentum through word of mouth and interactive marketing. Advertising, events and experiences, and personal selling all become more important in the maturity stage. In the decline stage, sales promotion continues strong, other communication tools are reduced, and salespeople give the product only minimal attention.
Figure 17.4 shows the relative cost-effectiveness of three communication tools.
Communications input need to be translated into intermediate outputs such as reach and frequency (the percentage of target market exposed to a communication and the number of exposures), recall and recognition scores, persuasion changes, and cost-per-thousand calculations. Ultimately, behavior-change measures capture the real payoff.Communications impact is measured by the target audience response as to whether they recognize or recall the message, how many times they saw it, what points they recall, how they felt about the message, and what are their previous and current attitudes toward the product and the company. It could also be measured by audience behaviors such as how many people bought the product, liked it, and talked to others about it.
Figure 17.5 provides an example of good feedback measurement.