class notes - weeks 1-3

8/10/2019 Class Notes - Weeks 1-3

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Week 1 - BRANDING:

Marketing Strategy and Brand

Positioning


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Strategic Marketing:

Market Driven Principles:

Know your market: know what your customers want and how your competitors provide it Customers have the final say: they are going to chose what they want. They classify product

attributes into 3 bundles: Operational, Design and Useful for them. It's the way customerschose what they buy.

Commit to being the first in the markets you serve Deliver total quality to guarantee customer satisfaction

Value map: Try to give fair value in 2 bundles, but premium in 1. Fair value line is constantly movingafter competitors reactions!

Operational Excellence: Price,customer service...

Performance Superiority: Style,technology, design...

Customer Intimacy

=> Agree on what these 3dimensions are for your business.They change overtime! Theseindicators are used to determinefair value!=> You can set ST/MT/LTstrategies to beat the competition.

In mature markets, Performance superiority is high and the operational excellence tends to be high too(prices go down...). Competitors will move on the axes too.


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Segmentation and Targeting:

Segmenting allows you to deliver the best value to each segment, which is better than to deliver anaverage value to every segment.

Market Segmentation is the process of dividing a market into distinct subsets, where any subset mayconceivably be selected as a marketing target to be reached with a distinct marketing mix.

Segmentation Methods:

Characteristics of the customer: Male/Female, Old/young... Benefits sought: Comfort, Technology, Price...

Systematic, product-related behaviors : purchasing behavior, by channel Geographic segmentation (Zip Code, PRIZM..): where you live physically affects your online

behavior !


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Then you need to choose a segment:

What makes a segment attractive? Monitor if the segment match with the product you sell

Segment Selection Criterias:


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Brand Positioning:

Positioning is positioning your brand to meet the needs of the targeted segment.

What is a brand ?

Traditional: It's a promise of quality Modern: It's whatever the customer thinks it is !


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Brand Mantra: The Elevator Speech:

How can you define your brand in 30 seconds?

You can define a mental map

Brand associations and responses for a specific target. Shows how your brand is perceived. Ask consumers "What comes to your mind when thinking about...?" Then you group brand associations into categories.

Then you take the 5 to 10 concepts or phrases of your brand (Core brand values) and relate them topoints of parity + points of difference

Mental Map => Core Brand values => Brand Mantra

Brand Mantra = heart and soul of the brand / essence of the brand / 3 to 5 words phrases that capturethe irrefutable essence or spirit of the brand positioning and brand values

Communicate + Simplify + Inspire Used internally to guide decisions = what the brand should or shouldn't be associated with

Designing the Brand Mantra! Brand functiondescribes the nature of the product or service or the type of experiences or

benefits the brand provides The Descriptive modifierclarifies its nature

The Emotional modifier: how does the brand provide benefits, and in what way

Emotional

Modifier

Descriptive

Modifier

Brand

Functions

Nike Authentic Athletic Performance

Disney Fun Family Entertainment

Macdonald Fun Family Food


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Experiential Branding:

Redefining what a brand is: Differenciation => Experience Promise => Relationship

Attributes => Personality Static => Dynamic Mass => individual

Awareness => Relevance

Connecting experience to the brand:Experiential Brand Positioning

What does the brand stand for

Multisensory strategy Different from the competitors

Experiential Brand Value Promise Describes what customer gets in

experiential terms: Sense Feel ThinkAct Relate

Experiential components:

Fivesenses

Consistent experience across senses, create sensory experience that extends acress channels

Emotions

Appeal to customers inner feelings and emotions, connect mild to strong positive feelings

with the brandCognitive

Appeal to the intellect, engage customers creatively, problem-solving experiences, use ofsurprise, intrigue and provocation

Behave

Affect bodily experiences, lifestyles, enrich customer lives, show them ways of doing things,alternative lifestyles, can be rational, but can ne motivational, inspirational and spontaneous

Social

Create feeling of community or belonging; the future ideal self that consumer wants to

relate to; broader social system, culture

Experience within the 4 P's:

Productbuilt in experiential features Marriott: personal luxury, style, edge, pulse Apple: design, beauty, elegance

Place: design, music, fragrance, type of salespeople Sephora, Victoria Secret

Promotion: Noteworthy, experiential brand personalityPrice: auctions (ebay), promotions bags...

Strong Brands Weak Brands

Make clear promises that are kept overtime Make vague promises that change

Have rich, unique brand equity...strong thoughtsand feelings

Very general equity and low emotionalcommitments

Are dependable and deliver consistently Have spotty reputations, create doubt

Have a loyal franchise Little loyalty, rely on pricing andshort-term promotional incentives

Superior products and processes

Distinctive positioning and customer experience

Alignment of internal and external commitment

to the brand


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Week 2 - BRANDING:

Customer Decision Making and the

Role of Brand


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Shopper Marketing:

Brands need to understand the shopping experience from a shopper POV.

People make decisions 24/7 in an omni channel world.

Shoppers make:

Impulse purchase decisions

Decisions on habit, intuition and emotion

Decisions based on what they see and miss

Shoppers think in terms of personal relevance:

Who is it for?

When do you use it?

You need to be in their lives.Shopping process is multi-staged/multi-channel.

Stages of the buying process:

Decision making often proceeds in

stages. Although real decisions are

more complex, simple stage models are

useful to understand customer behavior

and the marketing actions that are

likely to be successful?

YES

YES

NO?

NO?

Awareness

of Need

Identify

Products

Get Information

about Products

Evaluate

Products

Purchase

Product

Use

Product(s)

Post-Purchase

Positive Evaluation

Word of

Mouth


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The customer journey has become more complex:

The shopping process happens 24/7!


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Shopping Process:

Trigger: Need recognition

When the prospective customer enters the market (when the toaster breaks)

If not a natural need, the marketer needs to create that need

THEN people pay attention to the products/brands related to the category

Implication: know what the trigger events are and when they might occur or CREATE triggerevents!

You can

Create shopper goals: Halloween, Back to school time, Easter, Christmas

Create Email lists: welcome email with promotion

Create Urgency: flash sales, one time offers, special promotions Create reminders: help people remember when they have to purchase something

Create New Products: iPad for Apple

Create New Events: Fashion show for fashion, charity, tastings

Create News/Dialogue: Social media.

The goal of all these actions is to TRIGGER THE SHOPPING PROCESS!


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Information Search Stage:

Consideration set:

After they have decided to purchase, consumers come up with different items they could buy, its aconsideration set.

Consumers often search for limited amount of information.Evoked set:number of products you can name without help in a specific category.

Ask yourself: How much information will people search for?

Formation of Consideration Set:

Connect Online with Offline Experience:

A customer looking at a dress on the website would be shown the dress on interactive displays whenshe enters the store

New technology allows retailers to follow customers in the store as they browse (as they can now doonline) or when they pick up products.

Using online-data, in-store data, location information and predictive analytics: In-Store Personalized

Recommendations on displays or through salespeople

Traditional advertising creates brand awareness:

Purpose: to create top of mind awareness so brand comes readily to mind and is included toconsideration set.

Example: Big ads in the street: Nike

Create Brands through Flagship stores: Offline

External SearchIn Store:

What drives attention?

Nature of the set: goal driven (Ill buy ketchup VS Ill find something for dinner)


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Choice Overload:

Jam Experiment:

More people came to taste the 24 jams, but more people bought jams after the test of the 6 jams. Theconversion was better. It shows that choice overload can lead to no choice!

Perceived Variety VS Actual Variety:

6 jelly beans flavors: Organized < Disorganized => Disorganized gave the impression of more choice

so students picked more jelly beans

24 jelly beans flavors: Organized > Disorganized => Choice overload for disorganized because 24

jelly beans flavors was confusing, or too complex to decide

Reconciling the Paradox:

Decision process is staged

At the assortment stage, variety is good

At the choice stage, variety can become complex

How to solve that:

You can have salespeople, experts, who explain the product: for cheese, wine, computers

The more alignable you make the attributes, the easier it is for the consumer to choose!


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It can be done thanks to applications on smartphones

The best way to put products is to put it in a way that is natural for the consumer. If you choose yourwine by color of grape, you will appreciate the bottles to be assorted by color of grape.

It has to be simple for the consumer to choose so that he is not overwhelmed!


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Post-Purchase:

What does customer satisfaction mean?

F (Actual performanceExpectations)

F (Perceived performance, Will expectations)Should expectations

If

Perceived performance equals expectations, they will stay neutral and eventually buy the

product again

Perceived performance is lower or higher than expectations, they will actively react: socialMedias, word of mouth

How does it work?

You have to have high expectations so that customers want to buy, and then to have higher perceivedperformance so that they are satisfied.

Word of mouth:

Person to person: 9 to 1 rule

Social Media:

Social commerce: Pinterest, Facebook

Conversation: Twitter, Facebook, Tumblr

Images: Instagram, Vine

C to C Review Websites: Yelp, Tripadvisor

More than ever, customer satisfaction is essential so that customers spread positive word of mouth.


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Messages that Catch on and Get Shared: from Contagious, by Jonah BERGER (2013)

Social Currency: We share what makes us look good

Triggers: we reminded, we share

Emotion:emotional messages are more powerful

Public:making behavior public makes it more catching

Practical value:we like to be useful and informative

Stories:effectiveness depends on celebritys expertness

Shopper Marketing

Need to understand the shopping experience for customers POV Shoppers make impulse purchase decisions Shoppers make decisions on habit, intuition and emotion

Shoppers make decisions based on what they see (and miss)

Shoppers think in term of personal relevance (who is it for? When do I use it?)

Shopping process is multi-staged/multi-channel


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Week 3 - BRANDING:

Effective Brand Communications

Strategies and Repositioning

Strategies


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Brand Messaging & Communication:

What is Perception?

Its the process of developing an interpretation of a stimulus, or in other words, deciding what astimulus means.

Its the most crucial process in customer behavior for two reasons:

What customers perceive is what affects their actions

What is perceived is not necessarily what is True

Process of Perception:

Perception is constructive; people construct interpretations as a function of context

The meanings are constructed as needed and are based upon two major factors:

The actual stimulus or event: Exposure and Attention (what is salient)

Our prior expectations and what we know (perceptual interpretation)

Overview of Perceptual Process:

The Stroop Test:

At the beginning its hard to tell the color of the font, but then you get the pattern. However, its still

uncomfortable because our subconscient wants to read the word.

We are also sensible to visual illusions:

is perceived to be shorter than >--


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Customers give importance to proximity. They think two things are similar if they are shown together.

Similarity is very important too. If 2 products look the same, customers will think they are of the same

quality.

Studies have shown that people think that a product is better, just by putting the name of a brand on it.

Everybody responses to that phenomenon.

Thats why Coca Cola is estimated to be worth 70 billion dollars as an asset.


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Brand Elements: Choosing a Brand Name:

Brand elements

A variety of brand elements can be chosen that inherently enhance brand awareness or facilitate theformation of strong, favorable and unique brand associations:

Brand name

Logo

Symbol

Color

Character

Packaging

Slogan

You have to ask yourself questions about brand elements:

How well do the brand elements work together to provide an identity for the product or service?

What would customers think about the product if they only saw the brand elements?

Brand elements choice criteria:

Memorable

Easily recognized

Easily recalled

Meaningful

Descriptive

Persuasive

Appealing

Fun and interesting

Aesthetically

Rich visual and verbal imagery

Protectable

Legally

Competitively

Adaptable

Flexible

Updateable

Transferable

Within and across product categories

Across geographical boundaries and

cultures

Brand elements choice:

Each brand element plays a different role in creating the overall perception: different strengths and

weaknesses

Brand elements should be used strategically to achieve a balance and impact.

Need consistency and integration.


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Effect of Brand Names:

The brand name is very important and affects the behavior of different people:

Consumers: affects likelihood of purchase

Employees: affects moral and productivity

Firm: can limit opportunities; new products, new regions

Investors: can cause subconscious judgments about the companys merits/strengths

Type of names:

Value of a Good Name:


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Names for New Start-Ups:

New businesses need their own websites and most recognizable URLs have already been taken.

Solution: invent words (Mibblio, Kaggle, Shodogg, Zaarly)

Picking Brand Names in China:

Its a huge market so many brands try to adapt their name to Chinese languagevia specialized

agencies:


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Brand Elements: Color & Taglines:

Rules about Color:

Ultimate goal is to own a color Tiffanys light blue, Mary Kays pink

Color can be used to separate product lines

Different viewers experience color differently

Ensuring consistency of color across platforms/media is difficult

Colors can create very strong perceptions: luxury (gold, silver, black, white), gender color (blue, pink)

The appreciation of colors depends on the culture! Orange is less appreciated in the US than in India

for example.

Colors have different meanings:

Red: stimulate the appetite, also love

(passion), excitement

Blue: most preferred color by men,

productive color, lower appetite

Green: tranquility and health, money,

nature, fertility (M&Ms)

Brown: reliability, boredom,

practicality, earth

White: purity, innocence, empty,

spacious (creates the illusion of space)

Black: evil, death, mourning,

slimming

Yellow:bright, gives you energy, been

shown to make babies cry, causes eye

fatigue

Orange: excitement, enthusiasm,

warmth, caution

Lavender: calms the nerves,

relaxation

Purple: loyalty, wealth, success,

wisdom

Pink: girls color, calming, warm


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Role of Symbols:

Beware, they can become outdated!


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Slogans/Taglines:

Can be tailored to a positioning strategy

Can remove some of the ambiguity associated with brand and/or symbol

Can generate its own equity/emotion (reach out and touch someone)

Can reinforce the name or symbol (from sharp minds come sharp products)

Tagline basics:

Must be short

Must be differentiated from competition

Must be unique

Must be easy to say and remember

Cannot have any negative connotations

Can be protected and trademarked Evokes an emotional response

Types of taglines:

Imperative: Just Do It (Nike), Invent (HP), Think Different (Apple)

Descriptive: Moving at the Speed of Business (UPS), Bullish on America (Merrill Lynch),

Youre in good hands (Allstate)

Superlative: The ultimate driving machine (BMW), There is no better way to fly (Lufthansa)

Provocative: Got Milk? (Dairy Council)

Clever: Drivers Wanted (VW)


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Brand Elements: Packaging:

Packaging:

Packaging is very important to sell. A lot of researches were done in the 30s, when self-servicesupermarkets started becoming popular.

Experiment: detergent with circles on the package VS triangles. It went out that people preferred the

package with circles, but also believed that it was a better detergent!

Packaging can:

Influence at the point of purchase

Have a continuing influence at the point of consumption

Packaging has multiple objectives:

Identify

Present information (descriptive and persuasive)

Protect and allow transportation

Store

Aid consumption

Creating Impactful Packaging:

Understand that package aesthetics and function are both critical

The package has to grab consumers attention in a sea of competing messages

But it also has to work well so that consumers will buy again

Know your distribution channels

How do retailers view your package?

How are channels changing?

Which retailers like which package configuration?

Packaging shapes:

Very famous packaging: CK One by Calvin KLEIN which was made for both men and women.

We can notice that the logo is symmetric,


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These two packages both increased consumption and so the number of sales for Coca-Cola and Heinz.

They made it easier for the consumer to consume the last units of the product.


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Brand Elements: Persuasion:

Persuasion:

Definition: Active attempt to change belief and attitude. Its difficult because customers have priorbeliefs.

Elaboration likelihood model: Two routes to persuasion

Systematic (central)

Superficial (peripheral) processing

Use of celebrity spokespeople

Elaboration likelihood model:

Central Route to Persuasion:

When motivation (involvement), opportunity and ability to process marketing messages are

high

Focus mainly on central cues in the message

Peripheral Route to Persuasion:

When motivation, opportunity, ability and elaboration likelihood are low

Focus primarily on peripheral cues in the message

Peripheral cues:

Classical conditioning: PAVLOV experiment, or hamburger and coke

Reciprocity: you owe me (Robert CIALDINI)

Consistency: weve always done it that way


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Social proof: everybodys doing it

Liking: love me, love my ideas

Authority: just because I say so

Scarcity:quick, before theyre all gone(Lulu lemon)

What makes a good celebrity endorser?

General considerations:

Celebrity/audience fit

Celebrity/brand fit

Celebrity attractiveness

Practical consideration (cost, celebrity exposure, risk)

Social network

High Q-Rating

How appealing is this celebrity among those who do know him/her?

Ratio of popularity/familiarity

Conducted by Marketing Evaluations, Inc.

Transfer of Meaning Model:

Celebrities = individuals charged with detailed and powerful meanings

Advertising firm chooses celebrity that best represents the appropriate symbolic properties of the

product.

Consumers derive meaning from celebrities and transfer same meaning to product

fMRI scans show that there is more brain activation when products are presented with images of

celebritiesa visceral reaction to celebrity


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Source Models:

Source Credibility:Effectiveness depends on celebritys expertness and trustworthiness

Source Attractiveness: Effectiveness depends on familiarity, likability and/or similarity

Familiarity: knowledge of the source through exposure

Likability: affection for the source as a result of the sources physical appearance and behavior

Similarity: supposed resemblance between the source and receiver of the message

Example: Tiger WOODS with Nike. He is an expert in golf, so people trust him. Recently he lost

some attractiveness, but he still has a lot of Credibility.

Celebs and Models

How are celebrities used in advertisements?

Explicit mode: I endorse this product

Implicit mode: I use this product

Imperative mode: You should use this product

Co-present mode: celebrity appears with product


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Repositioning a Brand:

Repositioning a Brand:

How can you keep the brand fresh?

Brand equity MUST be actively managed over time!

Brand meaning must be reinforced

Sometimes brand meaning must be adjusted

Branding program will need to be changed and new sources of equity identified and built

5 Rationales for Brand Change:

1. The identity/execution was poorly conceived: can by identified by measures of consumer

interest, brand associations, sales2. The target for the identity/execution is limited: may need to change to reach a broader

market

3. The identity/execution has become out of date: markets change such that a working position

may become obsolete

4. The identity/execution loses its edge, becomes old-fashioned: consumers and markets

change such that positions/executions that were once contemporary become less so

5. The identity/execution has just become tired:same over time may become boring to

consumers, losing ability to attract attention. Change can generate news.

When you reposition a brand, the most important word is CONSISTENCY. You have to stay close to

the brands DNA.

Potential Cognitive Inconsistency:

Consistency Theories: the basic idea is that there is a drive to maintain consistency within cognitivesystems. Thus, cognitive structures may change in order to increase consistency among elements.


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Managing Brand Equity: Changing Minds?

Finally, Oldsmobile cars went out of market, because the new marketing strategy wasn t consistent

with the brands DNA. Dads arent exciting.

Evolving Brand Associations:

A brand can evolve more gradually to gain more contemporary associations while maintaining

familiarity

Symbols: can update without changing meaning

Brand name: can change to reflect evolving identity

Slogans: easier to change than the name

New Products: Can be true to the core identity, but add a modern, innovative element

Some companies use what we call a Just noticeable difference, year after year.

Evolving Trademarks:


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Change Brand Names to Eliminate Constraints:

Boston ChickenBoston Market: because they sold more than chicken

Weather ChannelWeather Companies

StarbucksImage

Example of Evolving Brand Image:

A brand image is a mental aggregation of cognitive associations, many subliminal.

Budweiser did the same thanks to cool advertisements, sponsorshipsTo seduce fathers and young

people too.

Major Points

Consistency over time is very valuable in building strong brands

All brand elements should work in harmony to communicate brand identity

Change is sometimes necessary, but be cautious!

Begin by understanding sources of equity and the current contributions to POP and POD,strength, favorability and uniqueness

class notes - weeks 1-3

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