Q N Y Marketing

What is a Brand?

“A multi-dimensional consumer value, delivered consistently.”

A name, sign, symbol, or design, tagline or a combination, intended to identify the goods or

services and to differentiate them from competition.

Brand Equity & Promise

Brand EquityThe differential effect that brand

knowledge has on consumerresponse to the

marketing of that brand.

Brand PromiseThe marketer’s vision of whatthe brand must be and do for

Consumers.

What is a Brand?

Attributes Benefits Values

CultureCulture

UserUser

PersonalityPersonality

Brand Equity

No Brand Loyalty(customer will change)

Satisfied Customer(no reason to change)

Satisfied Customer(no reason to change)

Satisfied & Switching Cost

Values the Brand(brand as friend)Values the Brand(brand as friend)

Devoted to Brand

Marketing Advantages of Strong Brands• Improved perceptions of

product performance

• Greater loyalty

• Less vulnerable to competition

• Less vulnerable to crises

• Larger margins

• Inelastic consumer response to price increases

• Elastic consumer response to price

• Licensing opportunities

• Brand extension opportunities

The Role of Brands

• Identify the maker

• Simplify product handling

• Offer legal protection

• Signify quality

• Create barriers to entry

• Serve as a competitive advantage

• Secure price premium

Brand Strategies

BrandExtension

New

Bra

nd

Nam

e

Product Category

LineExtension

LineExtension

ExistingExisting

ExistingExisting

MultibrandsMultibrandsNewNew NewBrands

NewBrands

Brand Element Choice Criteria

• Memorable

• Meaningful

• Likeability

• Transferable

• Adaptable

• Protectible

Devising a Branding Strategy

Develop new brand elementsApply existing brand elementsUse a combination of old and new

Defining Associations

Points-of-difference (PODs)

• Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand

Points-of-parity (POPs)

• Associations that are not necessarily unique to the brand but may be shared with other brands

RelevanceDistinctivenessBelievability

Examples of Negatively Correlated Attributes and Benefits

• Low-price vs. High quality

• Taste vs. Low calories

• Nutritious vs. Good tasting

• Efficacious vs. Mild

• Powerful vs. Safe

• Strong vs. Refined

• Ubiquitous vs. Exclusive

• Varied vs. Simple

Probability of Success

Probabilityof

completion

Overallprobabilityof success= X

Probability ofeconomic

success givencommercialization

XProbability

ofdifferentiation

Marketing Communications

The means by which firms attempt to inform, persuade, and remind

consumers, directly or indirectly, aboutthe products and brands they sell.

Message Problems

Selective Attention

Selective DistortionSelective Distortion

Selective RetentionSelective Retention

Target Audience may not receive the intended message due to:

Message ContentRational Appeals

Emotional AppealsMoral Appeals

Message StructureDraw ConclusionsArgument TypeArgument Order

Message FormatLayout,

Words, & Sounds,Body Language

Message SourceExpertise,

Trustworthiness,Congruity

Message Problems

The Importance of Taglines

Brand Theme Ad Tagline

Our hamburgers are bigger. Where’s the Beef?

Our tissue is softer. Please Don’t Squeeze the Charmin.

No hard sell, just a good car. Drivers Wanted

We don’t rent as many cars, so we have to do more for our customers.

We Try Harder

Personal Communications Channels• Advocate Channels

• Expert Channels

• Social Channels

Stimulating Personal Influence Channels

• Identify influential individuals and devote extra attention to them

• Create opinion leaders

• Use community influentials in testimonial advertising

• Develop advertising with high “conversation value”

• Develop WOM referral channels in Social Media

• Establish a blog

• Use viral marketing

Nonpersonal Communication Channels

• Media

• Sales Promotion

• Events and Experiences

• Public Relations

AdvertisingPublic, Pervasive, Expressive, Impersonal

AdvertisingPublic, Pervasive, Expressive, Impersonal

Sales PromotionCommunication, Incentive, Invitation

Public Relations & PublicityCredibility, Surprise, Dramatization

Personal SellingPersonal Confrontation, Cultivation, Response

Personal SellingPersonal Confrontation, Cultivation, Response

Direct MarketingNonpublic, Customized, Up-to-Date, Interactive

Communications Mix

Public Relations vs MPR

Pubic Relations:

Functions Include:

Press relations

Product publicity

Corporate communication

Lobbying

Counseling

Social Media

Marketing Public Relations (MPR)

MPR assists in the following tasks:

Assisting in the launch of new products

Assisting in repositioning a mature product

Building interest in a product category

Influencing specific target groups

Defending products that have encountered public problems

Building the corporate image in a waythat reflects favorably on its products

Public Relations

Suggestions:

Build marketplace excitement before media advertising breaks

Build a core customer base

Build a one-to-one relationship with consumers

Turn satisfied customers into advocates

Influence the influentials

Choosing Messages and Vehicles

Event Creation

Implementing the Plan and Evaluating Results

Communication Platforms

Events/ Experiences

• Sports

• Entertainment

• Festivals

• Arts

• Causes

• Factory tours

• Company museums

• Street activities

Public Relations

• Press kits

• Speeches

• Seminars

• Annual reports

• Charitable donations

• Publications

• Community relations

• Lobbying

Communication Platforms

Advertising

• Print and broadcast ads

• Packaging inserts

• Motion pictures

• Brochures and booklets

• Posters

• Billboards

• POP displays

• Logos

• Videotapes

Sales Promotion

• Contests, games, sweepstakes

• Premiums

• Sampling

• Trade shows, exhibits

• Coupons

• Rebates

• Entertainment

• Continuity programs

Characteristics of Communications

Public Relations and Publicity

• High credibility

• Ability to catch buyers off guard

• Dramatization

Events and Experiences

• Relevant

• Involving

• Implicit

Designing Competitive Strategies

Market-Leader Strategies

Expanding the Total Market

New Users

Market-penetration strategy

New-market segment strategy

Geographical-expansion strategy

New Uses

More Usage

Defending Market Share

Market-Challenger Strategies

Defining the Strategic Objective and Opponent(s)

It can attack the market leader

It can attack firms of its own size that are not doing the job and are underfinanced

It can attack small local and regional firms

Choosing a General Attack Strategy

Specific Attack Strategies

• Price-discount• Cheaper goods• Prestige goods• Product proliferation• Product innovation• Improved services• Distribution innovation• Manufacturing cost reduction• Intensive advertising promotion

Designing Competitive Strategies

Market-Nicher Strategies - High margin versus high volume

Nicher Specialist Roles

End-user specialist

Value-added

Vertical-level specialist

Customer-size specialist

Specific-customer specialist

Geographic specialist

Product or product-line specialist

Product-feature specialistJob-shop specialist

Quality-price specialistService specialistChannel specialist

Defining Marketing?

Marketing is an organizational function and a set of processes for creating,

communicating, and delivering value to customers and for managing

customer relationships in ways that benefit the

organization and its stakeholders.- Kotler & Keller

Defining Marketing

Marketing is discovering what the prospect wants and demands and delivering it more efficiently and effectively than competition.

-Anna Urban

What is Marketing Management?

Marketing management is theart and science

of choosing target markets and getting, keeping, and growing

customers throughcreating, delivering, and communicating

superior customer value.

Marketing Management Tasks

• Developing marketing strategies

• Capturing marketing insights

• Connecting with customers

• Building strong brands

• Shaping market offerings

• Delivering value

• Communicating value

• Creating long-term growth

Questions

After spending $100 billion on acquisitions over five years, AT&T’s achieved:

a) Higher Revenues

b) No Gain

c) Lower Revenues

Questions

2. After spending $100 billion on acquisitions over five years, AT&T’s achieved:

a) Higher Revenues

b) No Gain

c) Lower Revenues

Good Mission Statements

• Focus on limited number of goals

• Stress major policies and values

• Define major competitive spheres

eBay

“We help people trade anything on earth.We will continue to enhance the onlinetrading experiences of all – collectors, dealers, small businesses, unique itemseekers, bargain hunters, opportunitysellers, and browsers.”

Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the the target market’s

mind.

A Product is made in a factory.

Positioning is made in the Consumer’s mind.

Examples of Value PropositionsDemand States and Marketing Tasks

A good hot pizza, delivered to your door door within 30 minutes of ordering, at a moderate price

15% premium

Delivery speed and good quality

Convenience-minded pizza lovers

Domino’s (pizza)

The safest, most durable wagon in which your family can ride

20% premium

Durability and safety

Safety-conscious “upscale” families

Volvo(station wagon)

More tender golden chicken at a moderate premium price

10% premium

TendernessQuality-conscious consumers of chicken

Perdue (chicken)

Value PropositionPriceBenefitsTarget Customers

Company and Product

Developing and Communicating a Positioning Strategy

• Positioning According to Ries and Trout

1 Strengthen own current position

1 Grab an unoccupied position

1 De-position

1 Re-position

1 Product ladders

• Positioning: How many ideas to promote?

1 Unique selling proposition

1 Four major positioning errors

1 Underpositioning

1 Overpositioning

1 Confused positioning

1 Doubtful positioning

Developing and Communicating a Positioning Strategy

Writing a Positioning StatementMountain Dew: To young, active

soft-drink consumers who havelittle time for sleep, Mountain Dew

is the soft drink that gives youmore energy than any other brand

because it has the highest level of caffeine.

The Marketing Process

• Analyzing Market Opportunities

• Developing Marketing Strategies

• Planning Marketing Programs

• Managing the Marketing Effort

1 Annual-plan control

1 Profitability control

1 Strategic control

Types of Questions Research Can Address• Customer Profiles

1 Who is our Customer?

• Product Changes

1 Impact of a Product Change

• Competitive Leverage

1 Strengths & Weaknesses

• Tracking

1 Changes over Time

The Marketing Research Process

Defining theDefining theproblem andproblem and

researchresearchobjectivesobjectives

Defining theDefining theproblem andproblem and

researchresearchobjectivesobjectives

DevelopingDevelopingthe researchthe research

planplan

DevelopingDevelopingthe researchthe research

planplanCollect the Collect the informationinformationCollect the Collect the informationinformation

Analyze theAnalyze theinformationinformationAnalyze theAnalyze theinformationinformation

Present thePresent thefindingsfindings

Present thePresent thefindingsfindings

Psychological Factors

Perception LearningLearning

Beliefs &AttitudesBeliefs &Attitudes

Motivation

MotivationPerceptionLearningMemory

Key Psychological Processes

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Our industry is at a crossroads ... We have been challenged by the steady diversification of targets and an explosive proliferation of media channels.

Solutions will come from building new channels and reconfiguring old ones.

Convergence, social media, advergaming, entertainment, and DVR are all part of the next great experiment in communications.

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We are growing

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… and more multi-cultural

50

Diverse in lifestage

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What is Media?

3,000+TV Stations

15,000+Radio Stations

15,000+Radio Stations

3,000+Magazines3,000+

Magazines

400,000+Billboards

Product PlacementProduct

Placement

TXT MessagesTXT Messages Direct MailDirect Mail

Telemarketing

Outdoor Media

Movie TheatersMovie

Theaters

1,000,000+Websites

1,000,000+Websites

10,086Newspapers

10,086Newspapers

YouTube

Social MediaSocial Media

PRPR

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Internet | What’s on?

Prime time TV 7:097:09

Internet 12:42

Average Weekly Time Spent(Adults 18+ in hours)

Source: Nielsen TV Audience Report, 2003; Nielsen NetRatings, Combined Home/Work Panel, Dec 2004

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Outdoor Media

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Search: SEM + SEOThe resurrection of the Internet Hype

More than 1 billion searches are conducted online everyday (searchenginewatch.com).

95% of corporate purchasing agents use the web to research products and services before selection.(B2B Magazine 2003 Survey)

Visitors have 60% recall of sites found in search vs. just 20% for banner ads and tiles.(NPD Group Research Report)

Over three-fourths of marketing execs whose companies have used search marketing said they found it more effective than banner advertising.(Jupiter Research)

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Search: The resurrection of the Internet Hype

15% of total

15% of total 42% of

total42% of

total

US Paid Search Ad Spending2001–2006 (in billions)

Source: eMarketer, October 2004; IAB/PwC, 2004

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Where Are We Headed?

AdvertisingAdvertising

Existing CustomersExisting Customers

SponsorshipsSponsorships

Sales ForceSales Force

PRPROne to OneOne to One

OnlineOnline

Social MediaSocial Media

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Case in Point | Budget Trucks

Distribution

Website

PR

WoM

one-to-one

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Case in Point | Budget Trucks

Distribution

Website

PR

WoM

one-to-one

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Case in Point | Budget Trucks

Distribution

Website

PR

WoM

one-to-one

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What do the Media guys do? Traditionally speaking

1 The right message1 Through the right channel1 In the right way1 To the right target

Your Ad

here

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The Functions & Process of Media

PlanningResearchStrategyTactics

BuyingNegotiationPlacementAccounting

MonitoringOptimization

ReportingMaintenance

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Media TacticsMedia Tactics

Media StrategyMedia Strategy

Planning Process

Communications OpportunityCommunications Opportunity

Target AnalysisTarget Analysis Brand/BusinessBackground

Brand/BusinessBackground

Define Goals/Objectives

Define Goals/Objectives

Marketing Objective

Communications Objective

Media Objectives

Target Audience, Competitive Insight, Brand Marketplace, Lessons Learned,

Parameters (Seasonality, Geography, Creative, Retail/Promotions)

Communications Opportunity

Channel Selection/Ideation

Media Strategy

Media Tactics

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What are we talking about?

MARKETINGMARKETING

COMMUNICATIONS(of which advertising is a part)

COMMUNICATIONS(of which advertising is a part)

MEDIA

Process of selling a product or service to a customerProcess of selling a product or service to a customer

Translating that product or service into a brandTranslating that product or service into a brand

The vehicles that carry brand messages

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Example: Objectives

Marketing Objectives

1 Sell 100,000 tickets to a show in 2010

Communications Objectives

1 Increase awareness of artist

Media Objectives

1 Reach 70% of potential concert goers

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Example: Strategy

Marketing Strategy

1 Set price point at $75

Communications Strategy

1 Emphasize experience AND value

Media Strategy

1 Utilize a multi-media mix to reach elusive concert goer

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Defining Brand/Business BackgroundBrand

1 What does the brand stand for? What’s the experience?

Competitive Landscape

1 How much does your competition spend? Where do they spend? What are they trying to communicate?

Industry Best Practice

1 Of the competition, who’s doing it right? Is there an opportunity?

Media Best Practice

1 Is there an advertiser with a similar challenge but not the same category?

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Defining Target

Thorough understanding of target (potential customer) through:

1 Quantitative Research

1 Qualitative Research

1 Google (Anything credible you can get your hands on)

Looking for information that leads to insight:

1 Demographics/Psychographics

1 Values, attitudes, lifestyles, beliefs

1 Affinities

1 Purchasing habits

1 Media usage habits

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Target Overview | Demographics

62% Men/48% WomenMedian Age: 42 years

72% between ages 25-54

Median HHI: $72,922

Professional/Managerial (169)Bachelor's degree (166)

Post-graduate degree (160)

81% County A/B (117/111) 36% in Top 10 markets

MSA Suburban (123)Census Region Northeast (132)

Sub Region NE/MA (172/118)

Went to a concert

paid $50+

In past 12 months

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Target Overview | Media Usage

Magazine Newspaper Radio TV Internet Outdoor

Quintile I (Top 20% ) 136 123 99 69 162 145

Quintile II 94 111 104 75 133 105

Quintile III 102 69 111 110 119 91

Quintile IV 81 119 109 130 47 87

Quintile V (Bottom 20% ) 87 78 78 116 38 72

YES!

ANNOUNCE/NEWS

SELECTIVE

WHERE APPROPRIATE

YES!

RECOMMENDED

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Defining: Communications Opportunity

What are the best channels to reach our target?

When will our target be most receptive to our messages?

What should we communicate at the point of contact?

What new channel can we create?

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Example: Target Receptivity | “Self Moments”

Wake upWake up

breakfastbreakfast

CommuteCommute

GymGym CommuteCommute

LunchLunch

WorkWork

SocializingSocializing Work

Work

FamilyFamily

MeMe

Dream Dream

online

television

magazines

direct

WoM

WoM

WoM

television

radio

OOH

newspapers

roommate

WoM

WoMWo

M

direct

WoM

co-workers

online

radioWoM

newspapers

magazines

OOHWoM

WoM

WoM

WoM

WoM

WoM

WoM

WoM

WoM

sponsorships

WoM

WoM

friendsfriends

6am

6pm

9am9pm

weekend

WoM

selfself

selfself

selfself

selfself

selfself

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Communications Process

MonitoringReportingMonitoringReporting

Research

Social Marketing Design

MessagingMessagingPlanningBuilding

BrandStrategy