3. Brand Equity & Promise Brand Equity The differential effect that brand knowledge has on consumer response to the marketing of that brand. Brand Promise The marketer’s vision of what the brand must be and do for Consumers.
4. What is a Brand? Culture User Personality Attributes Benefits Values
5. Brand Equity Satisfied Customer (no reason to change) Values the Brand (brand as friend) No Brand Loyalty (customer will change) Satisfied & Switching Cost Devoted to Brand
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8. Brand Strategies New Brands Brand Extension New Brand Name Product Category Line Extension Existing Existing Multibrands New
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12. Probability of Success Probability of completion X Probability of differentiation Overall probability of success = Probability of economic success given commercialization X
13. Marketing Communications The means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell.
14. Message Problems Target Audience may not receive the intended message due to: Selective Attention Selective Distortion Selective Retention
15. Message Problems Message Content Rational Appeals Emotional Appeals Moral Appeals Message Structure Draw Conclusions Argument Type Argument Order Message Format Layout, Words, & Sounds, Body Language Message Source Expertise, Trustworthiness, Congruity
16. 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
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20. Advertising Public, Pervasive, Expressive, Impersonal Personal Selling Personal Confrontation, Cultivation, Response Communications Mix Sales Promotion Communication, Incentive, Invitation Public Relations & Publicity Credibility, Surprise, Dramatization Direct Marketing Nonpublic, Customized, Up-to-Date, Interactive
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29. 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
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31. What is Marketing Management? Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
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36. eBay “ We help people trade anything on earth. We will continue to enhance the online trading experiences of all – collectors, dealers, small businesses, unique item seekers, bargain hunters, opportunity sellers, and browsers .”
37. Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the the target market’s mind.
38. A Product is made in a factory. Positioning is made in the Consumer’s mind.
39. Examples of Value Propositions Demand 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 Tenderness Quality-conscious consumers of chicken Perdue (chicken) Value Proposition Price Benefits Target Customers Company and Product
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42. Writing a Positioning Statement Mountain Dew: To young, active soft-drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine.
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45. The Marketing Research Process Defining the problem and research objectives Developing the research plan Collect the information Analyze the information Present the findings
47. 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.
51. What is Media? 15,000+ Radio Stations 3,000+ Magazines Product Placement TXT Messages Direct Mail Outdoor Media Movie Theaters 1,000,000+ Websites 10,086 Newspapers YouTube Social Media PR 3,000+ TV Stations 400,000+ Billboards Telemarketing
52. Internet | What’s on? Prime time TV 7:09 Internet Average Weekly Time Spent (Adults 18+ in hours) Source: Nielsen TV Audience Report, 2003; Nielsen NetRatings, Combined Home/Work Panel, Dec 2004 12:42
55. Search: The resurrection of the Internet Hype 15% of total 42% of total US Paid Search Ad Spending 2001–2006 (in billions) Source: eMarketer, October 2004; IAB/PwC, 2004
56. Where Are We Headed? Advertising Existing Customers Sponsorships Sales Force PR One to One Online Social Media
57. Case in Point | Budget Trucks Distribution Website PR WoM one-to-one
58. Case in Point | Budget Trucks Distribution Website PR WoM one-to-one
59. Case in Point | Budget Trucks Distribution Website PR WoM one-to-one
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61. The Functions & Process of Media Planning Research Strategy Tactics Buying Negotiation Placement Accounting Monitoring Optimization Reporting Maintenance
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63. What are we talking about? MARKETING COMMUNICATIONS (of which advertising is a part) Process of selling a product or service to a customer Translating that product or service into a brand MEDIA The vehicles that carry brand messages
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68. Target Overview | Demographics 62% Men/48% Women Median 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
69. Target Overview | Media Usage YES! ANNOUNCE/ NEWS SELECTIVE WHERE APPROPRIATE YES! RECOMMENDED
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71. Example: Target Receptivity | “Self Moments” Wake up breakfast Commute Gym Commute Lunch Work Socializing Work Family Me Dream online television magazines direct WoM WoM WoM television radio OOH newspapers roommate WoM WoM WoM direct WoM co-workers online radio WoM newspapers magazines OOH WoM WoM WoM WoM WoM WoM WoM WoM WoM sponsorships WoM WoM friends 6am 6pm 9am 9pm weekend WoM self self self self self
Attributes: Brand brings to mind certain attributes (well-built, reliable, cheap) Benefits: Attributes that have been translated into functional and/or emotional benefits Values: The producer’s values Culture: Could represent a specific culture (Family company, country of production) Personality: User: The kind of person who will use the product Discuss Amex approach to visualizing the User
Goal is to have customer walk out of the store if the specific Brand is not available. The Financial community has embraced Brand equity as a major measure of a company’s value Measuring Brand Equity: Brand audits Brand tracking Brand valuation
Attention : Bombarded with 1,600 commercial messages a day; 80 consciously noticed; 12 provoke some reaction Distortion : People hear what fits into their belief system. It is consistent with theories of learning (associations) Retention : Long-term memory will retain only a small % of what is presented. If the message elicits a thought process (acceptance or rejection) it is likely to be retained.
Content Rational - engages self-interest Emotional - stir up emotions (positive or negative) that will drive purchase Moral - sense of what is right or proper Structure Much research has been done. Much depends on the specific situation and environment Format Headline, layout, etc. Body language Color Source Celebrity presenters, authority figures, etc.
Advertising: often utilizes mass media and may be adapted to take advantages of a given mediums strengths to convey information. Public presentation; Pervasiveness; Amplified expressiveness; Impersonality Sales Promotion: Limited time offers or dated coupons are common sales promotions. Communication; Incentive; Invitation Public Relations and Publicity: Public relations is an on-going process of building good relations with the various publics of the company. High credibility; Ability to catch buyers off guard; Dramatization Personal Selling: Combines product information and benefits with the interpersonal dynamics of the sales person. Personal confrontation; Cultivation; Response Direct Marketing: Directed communications with carefully targeted individual consumers to obtain an immediate response. Nonpublic; Customized; Up-to-date; Interactive
New Users: market penetration; geographic expansion New Uses: Arm & Hammer More Usage: use up (shampoo- lather, rinse, repeat)
A market nicher is a smaller firm that chooses to operate in some part of the market that is specialized and not likely to attract the larger firms. Market nichers often become specialists in some end use, vertical level, customer size, specific customer, geographic area, product or product line, product feature job shop approach, quality/price level, service, or channel. Multiple-niching is preferable to single niching in order to reduce risk. Many of the most profitable small and medium size firms owe their success to a niching strategy. Because niches can weaken, the firm must continually create new niches.
Popularized by Ries & Trout
USP : generally 1 but can be 2 or 3 Under : Consumers only have a vague idea Over : Too Narrow Confused : Too many claims Doubtful : Unbelievable
These are the Key steps in conducting a Research study. We will look at each of them individually.
Motivation: Multiple Theories Perception: How person selects, organizes & interpurts information Learning : Changes due to experience Beliefs & Attitudes : Thought a person holds about something Freud Forces are largely unconscious Consumer may express motivation on a conscious, practical level Actually feel it on a deeper level Be moved to purchase on a deeper unconscious level
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