What Are the Factors Affecting Brand Image

What are the factors affecting Brand Image?By BMS Team on June 6, 2012 in Special Studies in Marketing

BRAND IMAGE &VARIOUS FACTORS AFFECTING IT

 Brand Relationship = Brand Image + Brand Attitude

Brand Image  = Brand Associations + Brand Personality

Brand Associations = Link up in memory with brands attributes benefits and looks

Brand Looks = Brand Symbol + Brand Name

Brand Symbol = Brand Character + Brand Logo

Brand  image  is  one  of  the  two  critical  elements  of  brand  relationship.  It  is  a combination of association  and  personality  of a  brand.  Brand  image includes  a set of BAs usually structured in a logical fashion. For example- Sunsilk helps one have good  healthy hair and  good  knight helps  one ensure a good sleep for the family. One or more BAs can generate a brand image and while reading a brand image  statement   based  on  BA  quite often  one  may  feel  like  reading  a  BA statement as both are closely linked.

Associations   can   exist   on   a   host  of  parameters/aspects   such   as-   provides immediate relief, relief does not last long is affordable, is easy to get has no side effects it is okay for children doesn’t have a bad taste its smell is somewhat floral etc.  similarly  image based  on  BA  can  exist  on  a  range  of  factors  like  quality, effectiveness, value for money etc.

BRAND IMAGE = Brand Associations + Brand Personality

What factors should be considered for selecting an Ad Agency?By BMS Team on June 6, 2012 in Special Studies in Marketing

SELECTION OF AN ADVERTISING AGENCY

First and foremost, the agency must be known. Previously unknown agencies are not preferred.

Secondly, the agency must have creativity. Creative people are a little crazy, non- conformists. Creativity does  not  follow any logical pattern. Creative people are like naughty children. The secret of creativity is simplicity.

Thirdly, the agency must have a sound track record, a good deal of experience. Fourthly,  the accounts  executive  must  have ability  to  understand  the client’s problems.

Fifthly,  you  may  look t  the accounts  they  handle, and  the accounts  they  have gained and lost. In other words, the work they have produced  for other clients does matter.

Sixthly, the personal equation of the client with the agency also matters. If you know them personally, they are compatible with you.

Seventhly,  their ability  and  presentation  may  make  you  opt  for  them.  Premier Auto (the company that makes Fiat cars) was shopping around for an agency to launch its 118 NE. It invited presentations from various agencies and then shifted its account  from  its  old agency Sistas to Ulka. More and more clients  prefer to invite   presentations   for  campaigns   of   new   products   and   then   award   the campaign to the agency who they think has made the best presentations.

Lastly,  there  are  some  unique  considerations,  some  prefer  a  small,  some  a medium, some  a  large  agency.  Increasingly,  clients  prefer  to  fragment  their business, giving different products to different agencies.

Other factors that need consideration is the staff of the agency and its caliber, its flexibility, practical and consumer oriented approach, the use it makes of MR, its media  understanding, the attention it gives to the client, its growth, the ability to handle below-the-line publicity and its international tie-ups.

So creativity, commitment to client and  the quality of its  top management go a long  way in the selection of an agency. Unfortunately many think ‘Creativity’ is just another way of saying, ‘I like the agency.’

EVALUATION OF AN ADVERTISING AGENCY

The agency is evaluated on the past performance.

The number of clients it holds. (For e.g. O & M works on 240 brands at a time) The reputation the agency has  in advertising  circles  (JWT is renowned for its reputation)

The particular USP of the agency (on what areas the agency is specialized in, for e.g.  O&M is known for creativity. R.K Swamy BBDO is renowned for print; Leo Burnett is renowned for consumer insights.

Timely delivery of advertising materials (especially for Cola ads)

Explain the Functions of an Advertising AgencyBy BMS Team on June 6, 2012 in Special Studies in Marketing

FUNCTIONS OF AN ADVERTISING AGENCY

Big  agencies  like  JWT,  O&M,  and  LOWE  are  called  full  service  advertising agencies because they are ONE STOP SHOP for all services that are offered to the clients.  Today’s agencies  are  providing  total  communications  packages  for  the client brands. They are acting as the custodians of the brands of the clients.

1.   CLIENT  SERVICING:  Also  called  as  “Accounts  executives”.  He  is  link between the agency and clients. He suggests what the client exactly wants to  his advertising agency. He is the one who carries the client brief and is also responsible for approvals.

2.    THE CREATIVE DEPARTMENT: Under the Creative Director there are a team   of Copywriters  and  Visualisers   who  arrive  at  the  “BIG  IDEA”. Accordingly the storyboard is prepared and script work is done. The final layout is sent to the client for approval.

3.   THE   PRODUCTION   DEPARTMENT:   The   production   department   is responsible to  convert  the  storyboard  in  to  a  finished  layout  (technical storyboard  if  it’s  for  print medium  or  outdoor.  However,  the  television commercial  will  be  outsourced  to  a production  house  (like  Prasoon Pandey’s   CORCOISE   FILMS).   The   final  storyboard is  made  into  a technical storyboard, before it goes for shooting.

4.   THE  MEDIA  DEPT.: The  Media  Planner along with  the Media  manager and  brand manager/media  dept  of  the  client  prepares  the  final  media budget   and   purchases  Insertions   for   print   media   (space   buying)   or purchases  radio  spots  if  it’s  for  Radio or  purchases  TV  time  if  it’s  on television. Appropriate media mix is developed.

5.   RESEARCH  DEPT.:  In  fact  Research  dept  functions  before  and  after  a commercial is made; for pre-testing and post-testing of media respectively consumer insights and brand usages are also tested at times according to client in many situations

6.  THE   FINANCE   DEPT   (ACCOUNTING):   This   dept   looks   after   the accounts (financial records) for the agency.

7.   STRATEGIC  PLANNING:  Strategic  planning  is  a  heart  of  an  advertising agency.  It will  be  headed  by  VP  Strategic  Planning  and  assisted  by strategic   planners.   These  days   the   clients   require   a   well   prepared advertising  strategy  before  the  design  of the  advertisement  and  hence strategic  planning has  grown  past 4  years. Usually  MBA’s from  reputed management  institutes  are  recruited  in  these  dept.  big  agencies  have  a strong Strategic Planning dept whereas  in small and medium agencies, it is handled by the creative dept itself.

DEFINITION OF AN ADVERTISING AGENCY

It is the core of advertising profession and industry. An advertising agency is:

a)  An independent business organization

b)  Composed of creative and business people

c)  Who develop, prepare and place advertising on advertising media

d)  For sellers seeking to find customers for their goods and services

-American Advertising Agency Association (AAA) There  are  an  estimated  200 advertising  agencies  in  India  accredited  to  INS

(Indian Newspaper Society- to be eligible for 15 percent commission) and 8000 odd agencies which are unregistered. Together they serve 6000 clients in India.

Four Key Functions of an Ad agency

ACCOUNT  MANAGEMENT

Account Management is  the pivot on  which  the entire agency’s  work revolves. Also  called as  Client  Servicing  or  suits,  it  is  the  agency’s  big  window  to  the outside  world. The ‘suits’ are the agency’s  face to the client. They interact with the clients, take briefs and understand the marketing issues involved.

Internally, they brief the creative and  media  on  the jobs  and  co-ordinate the entire ‘work processes ‘inside the agency. They evaluate the ad campaign and media plan internally and often present these to the clients.

ACCOUNT  PLANNING

It is  the  second  core  function  in  the  agency.  It  is  also  referred  to  as  ‘strategic planning’.  However,  all  agencies  do  not  necessarily  have  a  separate  unit  for planning. In  some  agencies  account  management  takes  care  of  the  strategic planning involved in their respective brands. Whether as a separate unit or not, planning  is  the  research  face  of the  agency.  However  they  rarely  conduct research themselves, though sometimes they may co-ordinate it through research agencies if required.

CREATIVES

Creative form the third core function of the agency. They are also at the core of the  production  process  of  the  agency  as  they  are  the  ones  who  create  ads. Generally,  the copywriters  write the headline and copy and the art directors do the   visualizations   and layouts.  But  often  they  ideate  and  work  together.  A headline   may  come  from  the  art

person  and visualizations  from  the  writer. Creatives are the agencies lifeline the one who can make or break the agency.

 What are the Key Functions of an Ad agency?By BMS Team on June 6, 2012 in Special Studies in Marketing

INTRODUCTION TO ADVERTISING AGENCY

Media forms the fourth and the last core function of an agency. With increased media fragmentations, media planning and media buying have emerged as two specialized functions  within  media.  Sometimes  the  planners  may  also  extend expertise to the both.

Media    planning     involves     a   lot    of    number     crunching     and   good

‘quantitative’  abilities  are  a  critical  requirement.  Media  Buyers  not  only  look other  media   relations   and   negotiate   rates   but   also   supervise   the   media operational  word like  sending  release  order  and  ad  material  to  the  respective media. They also monitor releases.

THE WORLD’S TOP TEN ADVERTISING AGENCIES

WPP GROUP, LONDON (18485.3 BILLION)

INTERPUBLIC GROUP, NEW YORK ( US $ 13,967 BILLION)

OMNICOM GROUP, NEW YORK (US $ 13,839 BILLION) DENTSU, TOKYO (US $10846.3 BILLION)

SAATCHI    &     SAATCHI   COMPETITORS     ,    LONDON(US     $    10809

BILLION)

YOUNG & RUBICAM, NEW YORK( US $ 7559 BILLION)                   EURO RSCG, FRANCE (US $ 6508 BILLION)

GREY ADVERTISING , NEW YORK( US $ 5171 BILLION) HAKUHODO, TOKYO (US $ 4938 BILLION)

FOOTE, CONE AND BELDING (FCB),CHICAGO ( US $5336 BILLION) SOURCE: THE ASIAN AGE

INDIA’S TOP 5 ADVERTISING AGENCIES

O & M, BANGLORE (RS.2500 CRORE) JWT, MUMBAI (RS 1800 CRORE)

LOWE LINTAS & PARTNERS, MUMBAI( RS 1500 CRORE)

MUDRA, DDB NEEDHAM, AHMEDABAD (RS1200 CRORE)

FCB ULKA, NEW DELHI (RS.800 CRORE)

SOURCE: BRAND  EQUITY,  ECONOMICS TIMES

Explain the Five M’s of AdvertisingBy BMS Team on June 6, 2012 in Special Studies in Marketing

INTRODUCTION

An outsider’s perception of the work in an ad agency is one of glamour and glitz. It is  often assumed  that  working  in  an  ad  agency  means  being  surrounded  by glam dolls and hunks. That it is a profession of high profile and high living with a lot  of   showmanship, socializing  and  partying.  Till  a   few  years  ago  people would  have   ranked  it  second only  to  the  world  of  films  in  terms  of  the “glamour” co-efficient. But ‘politics’ and ‘fashions’ world have pushed it down the ladder a bit since.

Well, the real world of advertising is most certainly a world of high and intensity but  in a different way. Though at a first glances  an ad agency would seem like any other  corporate office, often the similarity would end at the office reception. Once inside, you are in the battle zone.

The  decibel  levels  and  chaos  is  often  striking  arguably  second  only  to  the commodity and stock exchange pits. So is the pressure  of deadlines, client calls and  chasing of work and people both  inside and outside the agency. Usually a working   day  in   the  agency  for

most   people  is  long,  hectic,  unpredictable, stressful, full of drama, yet loads of fun, often including the weekends.

FIVE M’s OF ADVERTISING

Advertising  is  an  important  promotional  tool  for  any  marketing  campaign.  So much so that whenever we think of marketing we think of advertising although it is  just  one  of the marketing  tools. Today  government  bodies  as  well  as  non- government   organizations  go   for   high   profile   advertising   campaigns.   The purpose here is  not  to increase the sales figure but to increase the awareness of people regarding the  relevant topics. Today the marketing manager has a range of  advertising  options  to   choose  from-  from interpersonal  communication  to Internet.  Deciding  on  a  correct  option  calls  for  detailed analysis  aspects  like objective  behind  advertising  (Mission),  company’s  earmarked budget  (Money), content  of communication  through  advertising  (Message),  advertising vehicle (Media)  and   impact  of  advertising   (Measurement).   These  can  be  broadly classified as the five M’s of advertising.

MISSION

First of all the marketing manager must be clear on  the company’s  purpose for advertising. “Increase  in  sales  figure”  will  be  a  very  broad  and  to  a  certain context a vague objective. According to Mr. Philip Kotler, a renowned authority in this field, there can be three possible objectives behind advertising:

Information- when a new product is launched, the purpose should only be to inform people about the product

Persuasion-  Persuading  people  to  actually  go  out  and  buy  the  product. This   objective   is   of   paramount           importance     because    of    cutthroat competition.  Any advertisement  must  be  persuasive  in  nature, attracting consumers towards the brand

Reminder: This objective is relevant for well-established companies. These types  of  advertisements  only  try  to  remind  the  consumers  of  the  brand existence.  For  instance whenever  we hear or read  yeh  dil maange  more, we  tend  to   think  about  Pepsi.  Same way  we  tend  to  associate  “two minutes” with Maggie noodles. The marketing manager

should establish a clear  goal  as  on  the  purpose  of  advertising,  information,  persuasion or reminder.

MONEY

After the objective has  been decided upon,  the next step is to  decide upon  the budget. There are several methods  for deciding on  the advertising budget. The most   common among  them  is  the  percentage  of  sales  method.  Under  this method,  a  certain percentage  of  sales  are  allotted  for  advertising  expenditure. Though this  method is used widely, there are some problems with this method. The first issue is  what percentage the company should take? Even if a company somehow decides a  percentage  figure, this would mean  increase  in advertising expenditure when sales  are  up and less spending when sales are down. This in some ways is quite paradoxical, because logically the reverse should happen. The company  needs  to  spend  more  on  advertising  when  sales  are  down.  But this method uses  circular reasoning  and views  sales as  cause for promotion. In fact sales are a result of promotion. Another method suggests that a company should spend as much as its competitors are spending. This method claims that it would prevent promotional wars. But  then  like  each  individual each  company  is also different. It  may  not  make any sense in  spending like your competitor because competitor might be on a different footing.

MESSAGE

As  a  common  experience,  we  love  some  advertisements,  while  the  others  just irritate us. An appealing advertising will win consumers  and  will consequently induce  them  to purchase  the product. On  the  other hand, irritating advertising will  create an adverse effect. This is why many companies hand over this task to advertising  agencies,  which  has professionals to make impact  -making ads.  The message  that  company  wants  to  convey should  be  put  in  a  manner  that  will arouse  interest.  Moreover  it  should  convincingly highlight  upon  the  products USP. What is said is definitely important but what is more important is how it is said. The  tone should be appealing. Words used should be catchy and retentive. These  days  both  electronic  as  well  as  print  media  are  overflowing  with  ads. People have no time to read or see them, and therefore they have to be attractive enough to target audience’s attention. This is the job of message.

MEDIA

Selecting the proper media vehicle for communicating the message goes a long way in the success of any kind of advertising. Each media vehicle has its positive and  negative points with a different reach and impact. Therefore a company has to  be  very  clear  about  its target  audience.  Choices  available  are  Internet,  TV, newspapers,  magazines, direct mails,  radio and hoardings. Everyone of this has its  advantages  and  disadvantages. Companies  often  go  in  for a  media  mix, i.e. they select more than  one of the available choices. Timing is of great significance here.   Many   industries   face   seasonal  fluctuations   and   pass   through   cycles. Therefore advertising should be timed that way to

take care of these fluctuations. A limited budget should be prudently allotted among these media vehicles.

MEASUREMENT

It is necessary that effectiveness of any advertising be judged. Only on the basis of this measurement, can further decisions regarding continuation or termination of  the  particular advertising  campaign  be  taken.  An  ad  can  be  judged  on  the basis  of  its  reach  and impact  on  sales.  Good  advertising  is  one  that  generates brand awareness  and consequently brand preference. How much of sales can be attributed to advertising, is a difficult question to answer. Sales are influenced by many   factors   besides   advertising.   It  is   not   easy   to   isolate   the   impact   of advertising on sales.  Nonetheless  there are some advanced statistical  techniques available that can be used with the help of computer software’s like SPSS. Thus a systematic and balanced  understanding of these five Ms of advertising will help in designing better advertising  campaigns  that create a favorable impact on the target audience.

Explain the Advertising Model and Mc Cann Erickson ModelBy BMS Team on June 6, 2012 in Special Studies in Marketing

ADVERTISING EXPOSURE MODEL

First,  exposure  to the advertisement can create awareness about brand, leading to a feeling of familiarity with it. Second, information about the brand’s benefits

& the attributes on which the benefits are based can register with the consumer can  also result from exposure to the ad. Third, advertisements can also generate feelings   in  an audience  that  they  begin  to  associate  with  the  brand  or  its consumption.  Fourth, through  the  choice  of  the  spokesperson  &  image for  the brand, often called “brand personality”. Fifth, the advertisements can create the impression  that  the  brand  is  favored by  the  consumer’s   peers,  or  experts- individuals & group the consumer likes to emulate. This is often how products & brands are presented as being fashionable. These five effects can create favorable liking,  or attitude, towards  the brand, which in  turn should  lead to purchasing action. Sometimes the advertisers will attempt to spur purchasing action directly by  providing  a  reminder  or  by  attacking  reasons  why  the  consumer  may  be postponing that action.

Mc CANN ERICKSON MODEL FOR COMMUNICATION

Mc CANN PULSE: Technique of transforming consumer information into consumer insight.

+ Mc FOOTPRINT: Method of transforming brands from one market

opportunities into expanded multinational platforms.

^ Mc CANN SELLING: Transforming Consumer Insight into effective advertising.

These two models help us to understand how & why consumers acquire process &use advertising  information.  It  is  also  important  to  at  the  planning  stage  to develop a  good  understanding  of  where  advertising  fits  into  the  total  pool  of information  & influence sources to  which consumer is  exposed. Understanding information  processing  invariably leads  to  the  need  for  understanding  a  wide range  of other  important  psychological constructs,  such  as  perception,  learning attitude formation & change, source of effects, brand personality & image.

Explain Integrated Marketing Communication (IMC)By BMS Team on June 6, 2012 in Special Studies in Marketing

INTEGRATED MARKETING COMMUNICATION (IMC)

DEFINITION

 “The process of managing all sources of information about a product service to which a customer or prospect is exposed which behaviorally moves the customer towards a sale and maintains customer loyalty.”

-Northwestern University, Medill School of Journalism

Review of Marketing Plan

Examine overall marketing plan & objectives Role of advertising & promotions Competitive analysis

Assess environmental influence

Analysis of Promotional Program Situation

Internal  analysis

Promotional department Organization

External analysis

Market Segmentation & Target

MarketingFirm’s ability to implement Consumer Behavior AnalysisPromotional program  Review of previous program result  

ANALYSIS OF COMMUNICATION PROCESS

Analyze receiver’s response processes Analyze source, message, channel factors Establish communications goals & objectives

BUDGET DETERMINATION

Set tentative marketing communications budget

Allocate tentative budget

DEVELOP INTEGRATED MARKETING COMMUNICATION PROGRAM

Advertising:

Set advertising objectives Determine

advertising budget Develop advertising message Develop advertising media strategy

DIRECT MARKETING

Set direct marketing objectives Determine direct marketing budget Develop direct marketing message Develop direct marketing media strategy

INTERACTIVE/INTERNET MARKETING

Set interactive/internet marketing objectives Determine interactive/internet marketing budget Develop interactive/internet message

Develop interactive/internet media strategy

SALES  PROMOTION

Set sales promotion objectives

Determine sales promotion budget

Develop sales promotion tools & develop messages

Develop sales promotion media strategy

PUBLIC  RELATION/PUBLICITY

Set PR/publicity objectives Determine PR/publicity budget Develop PR/publicity messages Develop PR/publicity media strategy

PERSONAL SELLING

Set personal selling & sales objectives

Determine personal selling & sales budget

Develop sales messages

Develop selling roles & responsibilities

INTEGRATE       &      IMPLEMENT       MARKETING        COMMUNICATIONS STRATEGIES

Integrate promotional mix strategies

Create & produce ads

Purchase media time, space, etc.

Design & implement direct marketing programs

Design & distribute sales promotion materials

Design & implement PR/publicity programs

Design & implement interactive/internet marketing programs MONITOR,

EVALUATE  &     CONTROL  INTEGRATED  MARKETING COMMUNICATIONS PROGRAM

Evaluate promotional program results/effectives

Take measures to control & adjust promotional strategies

TOOLS OF IMC

ADVERTISING SALES

PROMOTION

PUBLIC

RELATIONS

PERSONAL

SELLING

DIRECT

MARKETINGPrint and

Broadcast Ads

Contests,

Games, Sweepstakes, Lotteries

Press Kits Sales

Presentations

Catalogues

Packaging –

Outer

Premiums and

gifts

Speeches Sales

Meetings

Mailings

Packaging

Inserts

Sampling Seminars Incentive

Programmes

Telemarketing

Motion Pictures Fairs and trade

shows

Annual

Report

Samples Electronic

ShoppingBrochures and Exhibits Charitable Fair & Trade  

Booklets Posters and Leaflets

Demonstrations

Donations

Sponsorships

Shows

Directories Coupons Publications    Reprints of Ads Rebates Community

Relations

Billboards Low interest

Financing

Lobbying    

Display Signs Entertainment Identity

Media

Point-of-

purchase

Trade in

allowances

Company

Magazine

Displays Continuity

Programmes

Events    

Audio –Visual

Material

Tie – ins      

Symbols and

logos

Video Tapes        

Write a note on Advertising Communication SystemBy BMS Team on June 6, 2012 in Special Studies in Marketing

INTRODUCTION TO ADVERTISING

Advertising    is   the   backbone    for   any   business.    It   is   a    form   of   mass communication, a powerful marketing tool.

When a market or a firm has developed a product to satisfy market demand after thoroughly analyzing the market, there is a need for establishing contact with the target  market to eventually sell the product. Advertising helps in reaching to the target market.

Advertising     can     thus     aptly     be     called     as     the     MOTHER      OF     ALL COMMUNICATION. Advertising is all around us. We are bombarded with ads (commercials) over TV, radio &in the print. When we go to our colleges, offices we are expose to many bill boards, which tell us to drink more milk, donate are eyes,  gives  you more  information,  tells  you  to  do  family  planning  etc.  On  an average, an Indian citizen is exposed to more than 20 commercials per day.

In  modern  times,  advertising  prevails  in  all  walks  of  life.  It  has  acquired  the distinction   of   being   the   most   visible   &   glamorous   method   of   marketing communication.   It   is   the   world’s   fifth   largest   industry.   Oil,   Automobiles, Computers & Agriculture follow advertising in that order. Today it is a million dollar business.

“Advertising” = “means to inform” COMMUNICATION DEFINED

The steps  between source  and  a  resource  that  result  in  the  transference  and

understanding of meaning

- STEPHEN R. ROBINS

ADVERTISING COMMUNICATION SYSTEM

Advertising communication always involves a perception process and four of the elements shown in the model: the source, a message, a communication channel & a receiver.  In addition,  the   receiver   will  sometimes   become  a   source   of information by talking to friends or associates.  This type of communication is termed  word-of  mouth  communication  and   it   involves   social  interactions between two or more people & the important ideas of group influence & the diffusion of information.

The source of a message in the advertising communication system is the point of which the message originates. There are many types of “sources” in the context of advertising, such as the company offering the product, the particular brand or the spokesperson used.

MESSAGE:

The message refers to both the content and execution of the advertisement. It is  the totality of what is perceived by the receiver of the message. The message can be executed in great variety of ways for e.g. the use of humor & fear

CHANNEL:

The  message  is  transmitted  through  some  channel  from  the  source  to  the receiver. The channel in an advertising communication system consist  of one or more   kinds  of  media, such  as  radio,  TV,  newspaper,  magazines,  billboards, point-of-purchase  display,  &so on.  The  impact  of  the  communication  can  be different for different media.

RECEIVER:

The receiver in an advertising communication system is also called the target audience. Thus, the receiver can be described in terms of audience segmentation variables, lifestyle, benefits sought, demographics, & so on. Of particular interest might be the receiver’s involvement in the product & the extent to which he/she is willing to  search for and/or process information. It is the characteristics of the receiver-the   demographics,  psychological,  &  social characteristics-that   provide the basis for understanding communication, persuasion & market processes.

DESTINATION:

The communication model in above diagram does not stop at the receiver but allows for the possibility that the initial receiver might engage in word-of mouth communication  to  the ultimate  destination  of  the  message.  The  receiver  then becomes an interim source & the destination becomes another receiver. Word-of- mouth   communication  resulting  from advertising  can  be  a  critical  part  of  a campaign. The  reality  is  that for  some products the absence  of word-of-mouth communication  can  be  fatal.  It  is  only  the word-of-mouth communication  that has  credibility, comprehensiveness, & impact of affect the ultimate behavior of a portion   of  the   audience.   Advertising   can   actually   stimulate  word-of-mouth activity, even  when it cannot stimulate it, knowledge of its appropriateness and power can be very helpful.

An advertising message can have a variety of effects upon the receiver. It can: Create awareness

Communicate information about attributes & benefits Develop or change an image or personality Associate a  brand with feelings & emotions

Create group norms

Precipitate behavior

 Write a note on Brand EquityBy BMS Team on June 6, 2012 in Special Studies in Marketing

BRAND EQUITY

In today’s environment, building strong brands and establishing brand equity is becoming more and more challenging. A strong brand acts as a promise, leading faithful  customers  to pay  a  premium  over  competitive  products.  The  most important  assets  of  any  business  are  intangible:  its  company   name,  brand, symbols,   perceived   quality,   name awareness,   patents,   trademarks   etc.  these assets comprise brand equity, a primary source of competitive advantage.

MEASURING BRAND EQUITY

Most  evaluations of brand equity involve utility estimations. Value (utility) of a product features  and  price  level  and  also  measuring  the  overall  utility  of  a product, including brand name. The difference between total utility and utility of product  features  is  the  value of  the  brand.  Monetary  value,  intangibles  and perceived quality are also used in the brand equity measurement.

Brand Equity can provide strategic advantages by: Use leverage when introducing new products.

Brand can be linked to a quality image that buyers want to be associated with

Can lead to greater loyalty from customers. Offer a strong defence against new products and new competitors.

Can lead to higher  product trails and repeat purchasing,  due to  buyer awareness of the brand.

Example: BPL brand has been valued at Rs. 600 Crores

HLL brand has been valued at Rs. 900 Crores

Special Studies in Marketing Concept TestingBy BMS Team on September 21, 2010 in Exam fundas

1) 5 Ms of Advertising = Media, message, money, mission and measurement

2) Corporate image = mental representation or a conception of a company

3) Communication = act, process involving transmission of information, ideas, emotions, skills by the use of verbal or non verbal means i.e. words, pictures, figures, graphs, gestures and facial expressions

4) Communication objective v/s marketing objective = communication is the act of carrying a message whereas marketing is a total system of interacting business activities designed to plan price, promote and distribute want satisfying products and services to the present and potential customers

5) Rational and emotional appeal = rational appeal are directed towards thinking faculty of the audience. Emotional appeal could stir up positive or negative emotions which leads to an interest in the purchase of the products

6) Advertising = any paid form of non- personal presentation and promotion of ideas, goods and services by an identified sponsor.

7) Consumer products = products of daily use such as soaps, detergents, toothpaste, and so on which have direct, regular and elastic demand

8 ) Account for advertising agency = advertising agency is an independent business organization, composed of creative and business minded people, who develop, prepare and place advertising media for sellers seeking to find customers for their goods and services. Account means a client

9) DAGMAR = Defining Advertising Goals for Measuring Advertising Results/Effectiveness. It states advertising has to perform a particular communication task and the task has to be accomplished among a well-defined audience within a specified period of time

10) AIDA = Attention , Interest, Desire, Action. Advertising as a tool of marketing communication is especially meant for a group of users of product called target audience

11) Components of attitude = cognitive (knowledge, awareness and comprehension), Affective component (linking, evaluation), Conative (Action and tendency)

12) Advertising objectives based on attitude = use of persuasive process of communication as attitude change constantly and exact knowledge of consumer behavior as consumer behavior is the result of consumer attitudes

13) Steps required for developing an advertising programme = advertising objectives, prepare creative personnel and product offer-target audience, copy and layout design, copy/layout test, creative strategy and tactics

14) Public relations = philosophy and function of management expressed in policies and practices which serve the public to serve its understanding and goodwill

15) Corporate advertising = aims at creating market reputation and good image of the company among all social groups

16) Pre-testing methods for measuring effectiveness of advertising = checklist method, consumer-jury survey, sales-area test, portfolio test, mechanical/lab test

17) Post-testing methods = inquiry and coupon response, readership survey test, recall test, attitude measurement test method, sales-test method

18) Brand equity = incremental value of a business above the value of its physical assets due to the market position, achieved by its brands and the extension potential of the brand

19) Brand personality = brand develops a specific personality to the product and the brand personalities correspond to their target market personalities

20) Brand image = opinion/impression which the consumers cultivate about a particular brand provided by a manufacturer

21) Unique selling proposition = technique of differentiating quality of a product, which is easily recognizable and distinguishable from its competitors

22) Brand positioning strategies = positioning by – price and quality, product use strategy, users category, product benefits

23) Pulsing strategy = regular advertising would be made for 2 or 3 weeks followed by low advertising for a short period

24) GRP = reach * average frequency. It describes the total weight of the media effort

25) CPM = process of measuring the target audience size against the cost of that audience is called efficiency or Cost Per Thousand (CPM) and Cost Per Rating (CPR)

26) Media vehicle = instrument of the media for carrying the message to the target audience

27) Promotion mix = advertising and publicity of the product, personnel selling, sales promotion measures, public relations techniques

28) TRP = Television Rating Points. Indicates the popularity of TV programmes and enables selection for spot advertisement

29) Objectives of sales promotion = to introduce new products, attract new customers, induce present customers to buy more, help the firm remain competitive, increase sales in off season, add to the stock of the dealers

30) Consumer sales promotion tools = free samples of the product, distribution of gifts to customers, consumer contest, door to door demonstration, free trial offer