adv 435 ch 5 strategy
TRANSCRIPT
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Marketing
Communication
Strategy
Chapter 5
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Strategy
= Actions that will
give brand a
competitive edge
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Strategy
Actions tend to be
broaderin scope as
opposed to specific
tactics
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Strategy•Anticipates consumer
responses
•Anticipates competitive
reactions
•Message content
• Tone
• Benefits
• Features
• Models/Menu Items/Biz
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Strategy•Media
• Mainstream vs. Alternative
• Day Part Focus
• Interactive
• Social
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Building Strategic
FoundationElements
•Determine Selling Focus
•Managing Brand Equity
•Positioning the Message
•Funding Comm. program
•Targeting/Delivering
Message
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Building Strategic
Foundation
Each element has
strategic focal point
derived from
research
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Building Strategic
Foundation
Sometimes the elements
are at odds…..
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Building Strategic
FoundationSelling Focus/Brand
Equity/Positioning/Target
•Fashion: Style vs. Comfort
•Food: Taste vs. Nutrition/Health
•Image vs. Product
Characteristics
•Time: Short term vs. Long term• Stimulate Sales vs. Building Brand
Equity
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Building Strategic
FoundationSelling Focus/Brand
Equity/Positioning/Target
Name some others
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Building Strategic
FoundationSelling Focus/Brand
Equity/Positioning/Target
•Beverages: Taste vs. Calories
•Life Insurance: Term vs. Whole Life
•Electronics: Speed vs. Capacity
•Gems: Weight vs. Clarity
•Colleges: Cost vs. Proximity vs. Programs
vs. Value of Degree
•Housing: Location vs. Amenities
•Job: Salary vs. Potential
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Building Strategic
FoundationElement: Selling Focus
Better than Competition?
= Basis for Message
Parity?
= Build Brand is the message
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Building Strategic
Foundation
Element: Brand Equity
•Without it, Brand does NOT
survive!• Company sells it or discontinues it.
• EF Hutton - Compaq
• Pontiac - Enron
• Oldsmobile - Circuit City
• TWA - Borders ?
• RCA - Crocs ?
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Building Strategic
Foundation
Element: Brand Equity• Short Term focus on sales ties brand
image to that goal. Ex: Pizza Hut and
Boston Market to coupons.
• Elimination of coupons and short term
discounts strengthened Denny’s
• Live by the coupon, die by the coupon
• Roy Rogers - Tire and auto repair
• Little Caesars - Weight loss and exercise
• Many mom and pop stores
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Building Strategic
FoundationElement: Positioning
•How brand is presented in
various messages
• Create an image or identity
in consumers mind
• Can achieve Short & Long
Term Goals
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Building Strategic
FoundationElement: Funding
•Investment Spending
• % Sales
• Task/Objective
• Allocation per Unit
• Cars with $ by model
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Building Strategic
FoundationElement: Targeting
•Right Demo?
•Right Lifestyle?
• Right Geography?
• Right Psychographic?
• Right Message?
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Building Strategic
FoundationElement: Targeting
• Right Message?
• Believable?
• Not Believable? (This is not
your father’s Oldsmobile)
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Determining Selling Focus
Managing Demand
• Controlling Thoughts &
Feelings about
Brand
- What is Perception of Brand
- What is Image of Brand
- How important are the facts
(Taco Bell meat)
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Determining Selling Focus
Managing Demand
• Attempt to avoid price
competition
• Allows for:
• Product Improvements
• Line Extensions (New Users)
• New Products
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Determining Selling Focus
Advertising Can Shape Image
•Thru Message
•Media Selection
•Can Change Both Quickly• LTO’s
• Specials
• Coupons
• Media Opportunities
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Determining Selling Focus
Advertising Can Shape Image
•Thru Message
•Media Selection
•Can Change Both Quickly• But may need to sell-in distribution
pipeline (Packaged Goods)
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Managing Brand Equity
Brand Equity = Value in Brand’s
•Name
•Logo
• Icons
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Managing Brand Equity
Brand Equity =Intangibles
•Positive Association
•Positive Feeling
•Sense of Connection
•Sense of Self Esteem
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Managing Brand Equity
Examples:
Which is more important
Beechwood Aged or
King of Beers?
Triple Hopped or
Tastes Great, Less Filling
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Managing Brand Equity
Examples:
Which is more important
What can Brown Do for
You, or
When it Absolutely,
Positively HAS to be
There Overnight!
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Brand Equity
Components:
•Brand Loyalty
•Name Awareness
•Perceived Quality
•Brand Associations
•Other Assets
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Brand Equity
Components:
•Other Assets
–Patents
–Trademarks
–Characters
–Channel Relationships
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Brand Loyalty
•Less expensive to
keep customers than
find new ones.
•Takes less time
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Brand Loyalty
•Customers & prospects
have routines.
–Comfortable
–Have acceptable degree of
satisfaction
–Require less mental effort
–Boring?
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Brand Loyalty
Taking customers or
market for granted can
lead to:
•Ennui
•Loss of Leadership
•Elimination
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Brand Loyalty
•Plymouth - MGM
•Eastern Airlines -
Pontiac
•Kinko’s -
Gino’s
•White Cloud - Loew’s
•General Cinema - Atari
•Prentice-Hall - Borders
•Blockbuster - T Mobile
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Cultivating Brand Loyalty
Get Customers
Emotionally attached
to Brand
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Cultivating Brand Loyalty
Emotionally attached:
• I want my MTV
• Absurd connections
• Add Value
–More Attention
–Better Service
–Greater Satisfaction
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Cultivating Brand Loyalty
Greater Satisfaction
Examples?
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Cultivating Brand Loyalty
Greater Satisfaction
Examples?
–Southwest
–Publix
–Lexus
–Apple
–Vanguard
–Home Depot
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Name Awareness•Without Awareness there
is NO Loyalty
•Name is the anchor for
other brand associations
–Slogan or tagline without
name is meaningless
•Name provides familiarity
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Name Awareness•Name Signals Commitment
and Substance
•Name Suggests Others Feel
it Worthy
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Name AwarenessName Associations:
Disney
Oprah
Bose
Cancun
Dr Pepper
Garnier
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Name AwarenessName Associations:
Axe
Nike
DKNY
GAP
Sony
Old Navy
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Name AwarenessName Associations:
Pepsi
Coke
Rutgers
Rider
Princeton
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Stages of Awareness–NONE
–SLIGHT
–GENERALLY AWARE
–VERY
–EXTREME AWARENESS
–UNAWARE
–RECOGNITION
–RECALL
–TOP OF MIND
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Stages of Awareness
Key 3
–Top of Mind = First Said
–Unaided = No prompt
–Aided = With prompt
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Stages of Awareness
Increasing TOP OF MIND
awareness is an…
Advertising GOAL
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Perceived Quality
First isn’t Best but MAY be
so perceived
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Perceived Quality
Does it matter?
–Sony vs. Panasonic
-HDTV, 3D TV
–Hybrid Cars
-Who was first?
-Who sells most?
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Brand Associations
•Celebrities – Michael Jordan
•Places – Old El Paso
•Characters – Dutch Boy
• Ideas –Everywhere you want
to be
•Words - Priceless
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Brand Associations
Associations built on
Products
Physical Qualities tend to be
Fleeting!
•Technology
•Software
•Cars
•Clothes
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Brand Associations
Associations with Qualities
must make sense to
consumer
•Miller Lite: “It’s it and that’s
that!” Made no sense.
•Huh? Factor
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Brand Associations
Strategy must focus on
which associations are
worth:
• Keeping
• Reinforcing
• Intensifying
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Other Proprietary Brand
Assets
•Patents and trademarks
–Tylenol (Acetaminophen)
–Equal (Aspartame) packets
And NutriSweet (bulk),
Though patent expired 18
years ago
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Other Proprietary Brand
Assets
•Characters
–Green Giant started as ogre
but ad agency made him Jolly
–The Burger King started out
friendly then got weird.
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Other Proprietary Brand
Assets
•Channel relationships
–7 Up was leading citrus
soda
–Coke had most ext. distrib
»Coke created Sprite
»Pepsi created Sierra Mist
»Where is 7 Up today?
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Protecting Brand Equity
•Short vs. Long Term
–Bonus vs. Investment
–Technology provides oppts. For
short term bumps. Scanners at
checkout enable quick local
response
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Protecting Brand Equity
•Depends on product
–Generic (water) minimal loyalty
–Prestige (Rolex, Rolls, LV) high
–Ad Strategy MUST relate to
LIKELIHOOD OF LOYALTY
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Protecting Brand Equity
–If Campbell’s Soup is an average
(not great) product…
–BUT, Campbell’s and Soup are
closely associated
–Then ad focus should be on soup
–“Soup is Good Food”
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POSITIONING
• Defining the market in which the product or brand
will compete (who relevant buyers are i.e. the
target)
• Identifying the attributes (dimensions) that define
the product space.
• Collecting information from sample of customers
on their perceptions of each product re: relevant
attributes
• Determine each product's share of mind (degree of
consumer awareness or popularity)
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POSITIONING• Determine each product's current location
in the product space (attributes).
• Determine the target market's preferred
combination of attributes (referred to as an
ideal vector)
• Examine the fit between:
• The position of your product
• The position of the ideal vector
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EXAMPLE
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More on Positioning
• Using Messages to create/revise
perception about a brand relative to
others.
–Pepsi = Younger – sweeter drink
–Coke = Older but youthful, playful
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More on Positioning
• Using Messages to create/revise
perception about a brand relative to
others.
–Cars:
»Chevy- Young Families
»Buick – School Principal
»Cadillac – Grandparents
»BMW – Yuppies
»Mercedes – Successful Pros
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More on Positioning
Wrong Positioning:
–Denny’s as America’s Kitchen»Was really Low Price Alternative
–New Coke
–Gerber’s Baby Food for Adults
–Bic Disposable……underwear
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Types of Positioning
• Product Characteristics
–Rolaids Spells Relief
• Price Quality
–Target, WalMart
• Use or Application
–Beano
• Product Class
–Dove Soap
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Types of Positioning
•User
–Secret: Strong enough for a
man, but made for a woman
•Cultural Symbol
–Harley Davidson
•Competitors
–TD Bank: Most Convenient
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Positioning Exercise
•Find two examples of poorly
positioned products.
–What is position?
–Who is competition & position
–How would you change
position?
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Funding the MC program
Goal:
Meet/Exceed Competitive
•Share of Voice
•Share of Market
•Unit Appropriation
•Share of Sales
Appropriation
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Funding the MC program
Task Method
•National
•Regional
•Local
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Targeting & Delivering
Message
•Mass Media/Message
•Niche Media/Message
•Both
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Targeting & Delivering
Message
Media and Message Mix
– Budget Considerations
– Target Considerations
– Strengths of Media
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Targeting & Delivering
Message
• Network TV: Strong Brand Identity
• Magazines: More copy & detail
• Newspaper: Immediacy, local
• Internet: Interaction, more info
• Brochures: specifics, saved
• Radio: frequency, reminder
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Targeting & Delivering
Message
•Outdoor: Location, creativity
•PR: Credibility
• Infomercials: In depth, direct
response
•POP: point of sale stimulus