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Awareness The ability to recognize/recall the identity
of a product/brand within the given product
category
Recall Recognition
Interesting ads double the recall, increase
the recognition
Creative ads (rather than size of ad) help
create perceptions and help recall
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Consumer Attitude towards a
ProductLike or not
Yes No
Yes Neutral No
7 point scale
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Consumer Attitudes
Learned predispositions to respond toward an objectan individuals overall feelings toward or evaluation ofan object.
Consumers may hold attitudes toward:
Individuals Brands
Companies
Organizations
Product categories Retailers
Advertisements
Media
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Understanding Attitude
Attitude Structure 3 components Learn - Cognitive (awareness, comprehension, knowledge)
Feel - Affective (evaluation, liking, preference)
Do - Conative (possibility of action e.g. trial, purchase)
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Attitude -Advertising Objective
Negative
Attitude
Positive
AttitudeNeutralAttitude
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Benefit Based Attitudes
Formation / Change
Central Route
Motivation
&
Ability to process
information
Peripheral Route
No motivation
&
No ability to process
information
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Attitude ResearchDirect Overall Measures to know the overall market
attitude to the brand
Questioning or observation of behavior No specific attribute criterion is mentioned
Yield no diagnostic information
Derived measures to know the reasons for the attitude
Overall attitude is derived from responses to attributes Attitude models are based on these
Provides useful diagnostic information
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Attitude in Advertising
Attitude Segmentation
Segmentation specific to the above mentioned objectives
Segment on the basis of - Attribute importance and
weightage
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The Importance of Attributes
Attributes explains the Attitude composition
the cause of brands strengths / weaknesses
Attributes are important in a choice situation
Important attributes (set) category attributes that
satisfy needs & wants
Determinant attributes the brand choice attribute
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Study of AttributesThe Study of Attributes is at 2 levels
Physical and pseudo-physical characteristics / benefits
Means-end chain model:
product attributes consumer consequences personal
values
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Applications of Values to
Consumer Behavior
Applications of Values to
Consumer Behavior
Research has tended to classify values asbeing:
Cultural such as security or happiness,
Consumption-specific such as convenientshopping or prompt service,
Product-specific such as ease of use or durability.
The Rokeach Value Survey identified:Terminal Values - desired end-states that apply to
many cultures,
Instrumental Values - composed of actions needed
to achieve these terminal values.
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Applications of Values to
Consumer Behavior
Applications of Values to
Consumer Behavior
Means-End Chain Model
Message
Elements
Consumer
BenefitExecutional
Framework
Leverage
Point
Driving
Force
List of Values (LOV)Identifies Nine Consumer Segments Based on Values They Endorse
Syndicated Surveys - VALS 2http://future.sri.com/VALS/VALSindex.shtml
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Means-End Chain ModelMeans-End Chain Model
Suggests that consumers define product attributesin personal, subjective terms What does this
attribute do for me? In other words, consumers see a product attribute
as a means to some end, which could be aconsequence or a value.
That is, consumers create knowledge structures oflinked meanings that connect tangible product attributesto more abstract attributes and consequences, which inturn are associated with more subjective, self-relevantvalues and goals.
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Means-End Chain ModelMeans-End Chain Model
Attributes Consequences Values
Concrete AbstractAbstract FunctionalFunctional PsychosocialPsychosocial InstrumentalInstrumental TerminalTerminal
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Example of Means-End Chain Model
Hair
SprayPump
Dispenser
Concrete AbstractAbstract FunctionalFunctional PsychosocialPsychosocial InstrumentalInstrumental TerminalTerminal
Hair Not
Sticky
Feel More
Attractive
Impress
Others
Self
Esteem
Light
Mist
Mouth
Wash
Fluoride Avoid
Bad Breath
Feel Confident
In Social Situation
Perform
Better
Social
Recognition
(Product class level)
(Brand level)
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Multi-Attribute Attitude ModelAttitudes are a function of:
A = Bi X wi
A = Attitude
wi = Importance attached to attribute i
Bi = Beliefs about brands performance on attribute i
N = Number of salient attributes considered by theconsumer
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Eg Multi-Attribute Attitude
ModelFord Escort Space (S), KPL (K), Price
(P)
Attribute Weightage Score
Space 2 2
KPL 5 1
Price 3 1
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Study of the Brands Attributes
Important set of attributes by which brands are
perceived & evaluated
Identify the important attribute (list)
Determine importance weightage of eachAttribute
Identify Determinant & Leverage Attributes
these have greatest impact on attitude structure
and are purchase /choice driversEvaluative beliefs about the Brands level of
attributes and benefits
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Attribute ResearchDerived Multi-attribute Measures
Ranking & Ratingindicates
importance of attributesbut does not
give insights into the trade off customers
make - the importance weightage
Conjoint analysis derives theimportance weights of attributes and
attribute levels
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Evaluative belief model
Effect of Beliefs on Attitude
importance weight of Attribute
Attitude = +
Evaluative beliefs about theBrands attribute scores
The importance weightage of attributes, combineswith the individuals beliefs about the extent towhich the brand has these attributes, which createsbrand attitude
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Integration Processes & Decision Rules
Types of decision making rules:
Heuristics simple rule of thumb rules that are easy touse and apply
Buy least expensive brand
Buy brand on sale or for which I have a coupon
Affect referral rule make decision on basis of overall
affective impression or feelings about the brand
Compensatory rules evaluate the strengths and
weaknesses of each brand
Integration processes are the way product knowledge,meaning, and beliefs are combined to evaluate alternatives
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Ways to Influence or Change
Attitudes (Message Strategy)Compensatory Model
Increase or change the strength or beliefrating of abrand on an important attribute
Change consumers perceptions of the importance orvalue of an attribute
Add a new attribute to the attitude formation process
Change perceptions of belief ratings for a competing
brand
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Ways to Influence or Change Attitudes(Message Strategy)
Non-compensatory models - low involvement products Conjunctive model (acceptable standard rating on all
attributes) advertising must mention all important attributes
Disjunctive model (one or more attributes rated high)
advertising must prominently display those attributes that itscores high
Lexicographic model (evaluation on the most salientbenefit) salient attribute should be highlighted
Non-compensatory models are often used inconjunction with Compensatory models
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Category Evaluation Model (MessageStrategy)
The established attitude to the category can berecalled and applied to the new stimulus thatis placed in the category
category attitudes is applied to the object withoutexplicitly mentioning them
Advertising based on this model - Positions the object with respect to the category
prototype /exemplar
Attributes are not explicitly specified
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Segmentation Based on
Attitude StructureFor advertising campaigns and marketing
strategy Segmentation Analysis can be done
on 2 central constructs of the Attitude Model Evaluative beliefs
Importance weights
Consumers can be classified by these criteria
Benefit segments
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Advertising and
Attitude Formation / Change
Central Route
Motivation
&
Ability to process
information
Peripheral Route
No motivation
&
No ability to process
information
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Consumers Feelinginfluences
attitude / behavior Affective Response - Emotive bonding
Feeling ads - execution focused - little or no
information
Some of the feelings can lead to brand imagery
& personality
Symbolic & cultural meaning of the brand canbe affected
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Consumers Feelings Informative ads can also develop emotional
(affective) response
Feeling ads also have a cognitive
(knowledge) element
Good ads have both an emotional and a
rational appeal
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When are Feelings Important?
When consumers do not have deeply
considered attitudes towards the brand.
In low involvement situations / categories Mature brands - when there is little or no new
information to be conveyed
In socially conspicuous high involvement
categories
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FCB Model
Involvement
Thinking- Feeling
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FCB Model
THINKING FEELING
Involvement
H
I
G
H
INFORMATIVE (thinker)
Car, House, Furnishing, New Products
Model:- Learn - Feel Do (Rational)
Test :- Recall Diagnostics
Media:- Long Copy Format, Reflective Vehicles
Creative:- Specific Information, Demonstration
L
O
W
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FCB ModelTHINKING FEELING
Involvement
H
I
G
H
AFFECTIVE (feeler)
Jewellery, Cosmetics, Designer Clothing
Model:- Feel Learn Do (Emotional)
Test :- Attitude Change, Emotional
ArousalMedia:- Large Space, Image Specials
Creative:- Executional Impact
L
O
W
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FCB ModelTHINKING FEELING
Involvement
H
I
G
H
L
O
W
HABIT FORMATION (doer)
Food, Household items
Model:- Do - Learn Feel (Responsive)
Test :- SalesMedia:- Small Space Ads, 10 sec spots, Radio,
POP
Creative:- Reminder
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FCB Model
THINKING FEELING
Involvement
H
I
G
H
L
O
W
SELF-SATISFACTION (reactor)
Cigarettes, Liquor, Candy
Model:- Do Feel Learn (Social)
Test :- SalesMedia:- Billboards, Newspapers, POP
Creative:- Attention
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FCB ModelTHINKING FEELING
Involvement
H
IG
H
INFORMATIVE (thinker)
Car, House, Furnishing, New ProductsModel:- Learn Feel Do
(Rational)
Test :- Recall Diagnostics
Media:- Long Copy Format, Reflective Vehicles
Creative:- Specific Information, Demonstration
AFFECTIVE (feeler)
Jewellery, Cosmetics,
Designer ClothingModel:- Feel Learn Do
(Emotional)
Test :- Attitude Change,
Emotional Arousal
Media:- Large Space,
Image SpecialsCreative:- Executional
Impact
LO
W
HABIT FORMATION (doer)Food, Household items
Model:- Do Learn Feel
(Responsive)
Test :- Sales
Media:- Small Space Ads, 10 sec spots, radio,
POP-
SELF-SATISFACTION
(reactor)Cigarettes, Liquor, Candy
Model:- Do Feel Learn
(Social)
Test :- Sales
Media:- Billboards,
Newspapers, POP-
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Rossiter Percy Grid
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Model of Feeling Response to Advertising
Ad evokedAffective
Response
Decreases
Thinking
Raises ratio of +ve
to -ve Thoughts
IncreasesBrand
Attitude
Raises
Attribute
Valuation
Transforms
Use Experience
Increases Valuation of
Ad characteristics
Increases
Attitudeto Ad
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Model of Feeling Response to Advertising
EmotionalResponse
due to Ad
Decreases
Thinking
Raises ratio of +ve
to -ve Thoughts
IncreasesBrand
Attitude
Raises
Attribute
Valuation
Transforms
Use Experience
Increases Valuation of
Ad characteristics
Increases
Attitudeto Ad
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Feelings Influence Brand Attitude
Positive mood Warm feelings puts people in apositive moodto
build Brand Attitude
Positive feelings increases positive thoughts Increases the ratio of SA : CA
Brand attributes are evaluated more positively
Total number of thoughts decrease
Attitude is formed on peripheral cues rather thancentral
Increases Likeability' by reducing thinking
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Feelings Influence Attitude
- Transforms the Use Experience
Feelings can transform the use experience
By showing positive Use Experience & Users
the brand experience is transformedto matchthe one shown in the Ad.
Makes the brand experience richer and more
enjoyable
through recall of past experience associated with
similar feelings
Creates new brand beliefs - Transformational Advtg
Influences perceptions about quality of product
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Transformational Advertising
Association ProcessInvolves 2 types of associations
1. Association of feelings with the use
experience
2. The association between the brand and the use
experience / user
This is done through drama advertising a story with use
experience action, music etc.
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Feelings Influence Attitude
- Transforms theU
se ExperienceConditions necessary forTransformational Advtg
The Ad must ring true empathetic, meaningful
Feelings must be connected tightly with the brand Associations must be created and maintained through
heavy repetition
The same association must be sustained through time
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Requirements for
Successful Transformational Advertising Adequate budget requires heavy repetition
(frequency) and reinforcement to build
associations Consistency the ad must be cohesive,
supporting the same associations
Links with the brand must be tight so thatone cannot be recalled without the other make the brand the hero of the story
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Feelings Influence Attitude
Attitude towards the Ad
3. Feelings can create a positive attitude towards the Ad. Affective directly through peripheral mechanisms
Cognitive indirectly through evaluation of ad characteristics
A positive attitude to the ad gets transferred to brand & brand
attributes. Negative attitude to ad may not be transferred to the brand
because of Attitudes are not deeply formed before the purchase
sleeper effect
Positive ad attitude is particularly important when the productis new
Also important in low involvement categories
A positive attitude towards the Ad improves Recall, but so dodisliked ads
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Association Process
Classical Conditioning
Classical Conditioning - Ad evoked feelings
are associated with the brand through repetition
The link between the brand (US Unconditioned
Stimulus) with the commercial (CS Conditioned
Response) must not be broken
The strength of the association will depend on the
amount of repetition
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What Affects Intensity of Feeling
Believability / realism - suspend disbelief Ring
true (even if it is not literally true)
Gain empathy with similar characters as thetarget audience in familiar situations /
experience
Use drama form of advertising - rather than lecture
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Humour
Gets attention Creates likeability
May become irritating with repetition
The key message may be lost May upset some
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Fear
Creates emotional response & cognitiveawareness of problem
An optimal level of fear is necessary
A solution must be provided
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Other feelings
Sadness
Confidence
Elegance
Serenity
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Advertising and
Attitude Formation / Change
Central Route
Motivation
&
Ability to process
information
Peripheral Route
No motivation
&
No ability to process
information
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Positioning
It gives the consumer a clear idea
of what the Brand stands for
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The Positioning Process
Positioning ConceptThe desired perception orassociation management wantstarget customers to have for afirm and/or its products
Positioning EffectivenessThe extent to which managementspositioning objectives are achievedin the market target
Positioning StrategyThe combination of marketingactions used to portray thepositioning concept to targetedbuyers
Positioning of the brandThe positioning of the brand bythe buyers in the market target
Market
Target
P iti i St t D l t
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Positioning Strategy Development
Process - Background Analysis1. Identify the competitors
2. Assess perceptions of competitors
3. Determine their positions
4. Analyze consumer preferences
6. Monitor the position
5. Make the positioning decision
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Product/Service and Brand
Positioning
Al Ries , Jack Trout - BASIC QUESTIONS TO ASK
1. What position, (if any) do we currently hold in the mind ofcustomers?
2. What position do we want to hold?
3. Whom do we have to compete against to establish this position?
4. Do we have the resources to occupy and hold the position?
5. Can we stay with one consistent positioning strategy?
6. Does our marketing and advertising match our positioning strategy?
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Positioning Strategy Approaches
Product/Service or Brands can be positioned by single
or multiple approaches:
Product attributes or consumer benefit
Price-quality
Use or application
Users
Product class
Cultural symbols
Competitors
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Positioning Strategy Execution
A relative concept that must indicate the
position of the brand vis-a-vis other brands -
differentiation
It determines the nature of the elements of the
marketing mix
Best communicated through Advertising
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Product Decisions
Aproductproductis a bundle of benefits or valuesthat satisfies the needs of consumers
Product symbolism refers to what a product orbrand means to customers
Product quality, branding, packaging, andcompany name contribute to product image
Branding: Brand name communicates attributes and meaning Advertising creates and maintains brand equity which
results from the image and/or impression of a brand
Th V l f S C d /
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The Value of Strong Corporate and /or
Brand Identity
Strong corporate/brand equity:
Creates more options for competing (particularly againstlower-priced competitors)
Can facilitate brand and line extensions Allows companies to sell products/services at a premium
price and maintain larger profit margins
Builds customer loyalty
Makes it easier to withstand economic fluctuations andmarketing crises
Makes customer response more inelastic to price increasesand elastic to price decreases
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B d E i
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Brand Equity
A set of assets linked to the Brands name and
symbols that adds to the value provided by a
product or service to a firm and customer
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BrandEquityAvailability
Preference
yalty
Awareness
a iliarity
I age &Pers nality
Ass ciati ns
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Brand
Awareness
Perceived
Quality
Brand
Association
Brand
Loyalty
Brand Equity
Structure
Brand name and Symbols
Other proprietary
Brand assets
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Brand
Equity
Loyalty
Awareness
Perceived
Quality
Associations
ProprietaryBrand Assets
Enhances
Customers
InterpretationConfidence
Use Satisfaction
Enhances the
firms
Marketing
efficiency &
effectiveness
Brand loyaltyPrices/Margins
Trade Leverage
Competitive Adv
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PriceC K l d b B d
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Recognitionand Recall
Type of brand
associations
Favourability
Association
Attributes
Benefits
Attitudes
Prod related
Non-prod
related
Functional
Experiential
Symbolic
Uniqueness of
Association
Strength of
Association
Brand
Knowledge
Brand
Image
Brand
awareness
Price
Packaging
User imagery
Usage imagery
Consumer Knowledge about a Brand
Kevin Keller
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Brand Personality
What it implies
Why it matters
When it is more important
How to create / enhance it
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Brand Personality Implies
Brand Personality goes beyond attributes and feelings andincludes the final consequences -
Associated values
Relationshipbetween brand & consumer Brand affinity (as comfortable as an old friend)
OR
Brand alienation (a liability)
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Brand Personality Implies
BP is described in terms of Demographics, and more importantly
Personality traits, attitudes, lifestyle Extrovertedness
Agreeableness
Conscientiousness
Emotional stability
Culture
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Why Brand Personality Matters
To the Organisation it is important as
It differentiates the brand from the competition in a
unique and pre-emptible manner
Brand Personality enables customers to make theirbrand choice and stay loyal
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Why Brand Personality Matters
For consumers
It provides a self-defining perspective:
identifies brands that match their self-concept
defines the groups they belong to and do not
belong to
It enables
Interpretation and processing of information
Confidence in the purchase decision
Use satisfaction
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Brand Personality Entails.
Desired Personality is associated with the Brand through endorsers
type of users
life-styles
characters Amul Moppet, Air India Maharaja
Symbols coconut, umbrella
Ad execution elements music, colours, fonts etc
Personality is also acquired through other factors
WOM
Press reports
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What Brand Personality Does
Brand Personality gives the brand a unique and
defining character -
As it includes Attributes, Feelings and Values
the relationship with product - peoples life-style,
needs and values
the ultimate consequences of product use - values
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Brand Personality is important when..
When a category has social signaling value Purchased or consumed in socially conspicuous
situations
Expensive and relatively scarce products
Helps calibrate quality in otherwise ambiguoussituations
Target market consists of high self monitors(individuals who are are easily swayed by brandpersonality)
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Nescafe
Young
Upper-middle class
Professionallyqualified
Ambitious
Confident
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Pepsi
Young
Anti-establishment
Cool Extrovert
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Levis
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Revlon
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Big 5 of Brand Personality
Sincerity Excitement Competence Sophistication Ruggedness
Down-to-earth Daring Reliable Upper-class Outdoors
Honest Spirited Intelligent Charming Tough
Wholesome Imaginative Successful
Cheerful Up-to-date
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5 factor model of personality
Extroversion
Instability
Agreeableness
Openness to experience
Conscientiousness
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Implementing Brand Personality
Researching the Brand Personality
Quantitative rating on personality objectives
Qualitative projection techniques )
Seek consistency with the functional and psychological benefits the brand
promises
Research the symbolic associations that currently exists with the product
category
Understand the type of personality the TG is most likely to be responsive
to - both actual and aspired
Check how different brands currently rank on different personality
characteristics
Implementing Brand Personality
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Implementing Brand Personality
cont.
Targeting Brand Personality is judgmental
Consider the Brands use settings and context
Use endorsers / spokes-characters / users life-style
imagery / symbols Use of appropriate ad. elements, actors, music,
colour, fonts etc (ad execution)
Maintaining the Personality over time - to ensure it remains contemporary across
different elements of the marketing mix
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94
Brand Equity: The Role ofBrand Identity Based IMC
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95
The Goal
Brand Equity
Customer-Based (Keller 1993)
Strong, highly favorable brand associations
Brand Awareness & Brand Image
Image is in the eye of the beholder (i.e., thecustomerowns the image).
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96
Brand Equity Strategy I
A set of processes that include acquiring,
developing, nurturing, and leveraging an
effectiveness-enhancing, high-equity brand or
portfolio of brands.
(Madhavaram, Badrinarayanan, and McDonald 2005)
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Brand Equity Strategy II
Why have a brand equity strategy?
To achieve competitive advantage
This in turn leads to superior financial
performance. (Hunt forthcoming)
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99
IMC
Integrated Marketing Communications
Not just a collection of promotional tools or a
budgetary allocation exercise.
Must be strategically developed (Kitchen et al. 2004)
Must harness synergy across multiple media.(Naik and Raman 2003)
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100
IMC Strategy A set of processes that include the planning,
development, execution, and evaluation of
coordinated, measurable, persuasive brand
communications programs over time withconsumers, customers, prospects, employees,
associates, and other targeted, relevant external
and internal audiences. (Madhavaram, Badrinarayanan, andMcDonald 2005)
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Brand Identity Strategy I
To have a successful IMC strategy, must first
have a strong Brand Identity Strategy.
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102
Brand Identity Strategy II Brand Identity Strategy is defined as:
A set of processes that include the coordinated efforts of
brand strategists in (1) developing, evaluating, and
maintaining the brand identity/identities, and (2)communicating the brand identity/identities to all
individuals and groups (internal and external to the
firms) responsible for the firms marketing
communication.(Madhavaram, Badrinarayanan, and McDonald 2005)
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103
Brand Identity I Before we can achieve brand equity, i.e., a
positive brand image, we must know the
brands identity.
Brand identity is the unique set of brand
associations that a brand strategist aspires to
create or maintain. (Aaker 1996)
The brand ownerdefines the brand identity.
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Brand Identity II
Unlike Superman and Spiderman, marketers
do not want to keep their identities secret.
Brand owner must understand and clearlyexpress aspirations for the brand.
These aspirations must be shared with all
brand stewards, those responsible forcommunicating the brand to others.
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Brand Identity Contacts All message-carrying interactions concerning
the brand between the brand strategists and the
brand stewards. (Madhavaram, Badrinarayanan, and McDonald
2005)
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Brand Stewards
All internal and external entities that have
responsibility for communicating the brand
to customers, prospects, and publics. Advertising & PR agencies
Direct Marketers
Salespeople Anyone who communicates the brand.
(Madhavaram, Badrinarayanan, and McDonald 2005)
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Brand Equity Contacts
All marketer-sponsored interactions
concerning the brand between brand
stewards and customers, prospects, andpublics that are intended to create or
maintain strong and highly favorable
associations. (Madhavaram, Badrinarayanan, and McDonald2005)
Ties back to Kellers definition of brand equity.
Figure1: Brand Equity Strategy A Schematic
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IMC
Strategy
Brand
Equity
Brand
Identity
Strategy
Brand
Identity
Contacts
Brand
Equity
Contacts
Brand Identity
Interface
Brand Equity
Interface
Environment, competitors brands, and changing customer needs and preferences
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111
IMC Brand Equity
Brand Communication
The glue that enables the connection
between the firms efforts and customers
favorable response.
Brand Communication
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Brand Communication
1. Communication is a crucial (not only) driver ofbrand equity.
2. Brand Communication is transmitted through a
combination of vehicles, not just broadcastadvertising.
3. Brand Communication can be meticulously
planned or unplanned.
4. Some important brand contacts are not
controllable by the brand strategist.
Brand Identity IMC
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Brand Identity IMC
Brand identity helps establish relationship betweenbrand and customer via value propositions.
Functional, Emotional, Self-Expressive Benefits
Yet, it is extremely difficult for brand image tomatch perfectly with brand identity due to the
complex nature of the communications system.(Madhavaram, Badrinarayanan, and McDonald 2005)
Goal: Brand Image-Identity Congruence.
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Image Identity
Per Aaker (1996), brand image should be aninput to brand identity.
Brand Strategists Carefully analyze own brand image,
competitors brand images, changing customerpreferences and needs.
Use to guide creation, management, oradaptation of Brand Identity.
(Feedback Loop in Model)
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Identity Communication
Positioning suitable for identity?
How is identity to be communicated to
brand stewards?
How to guide brand stewards?
Potential for conflicting messages.
Brand Identity Strategy MUST guide the
IMC Strategy.
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Top
Management
Support
Synergy
ConsistencyInteractivity
Compliment-arity
Brand
Equity
AwarenessImage
Internal
Market
Orientation
Brand
Identity
Oriented
Culture
IMC
Effectiveness
Brand Identity
Contact Factors
Brand Equity
Contact Factors
Figure 2: AConceptual Framework
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Brand Equity Contact Factors
Synergy
Combined efforts exceed sum of individual
efforts.
IMC Effectiveness
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SYNERGY
Interactivity
Processes that link customers to company andits brands
Strategic Consistency
Coordination of all messages in the promotionof brands
Complementarity Reinforcing effects of individual
communication efforts
(Madhavaram, Badrinarayanan, and McDonald 2005)
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Brand Identity Contact Factors Brand Identity-Oriented Culture
Places high priority on brand identity
Establishes behavioral norms in support of brand
identity
Top Management Support
Brand Identity is strategic
TMT sets culture
Internal Market Orientation
Apply customer approach internally
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Conclusion Know your brands identity.
Communicate that identity to brand stewards.
Identity guides IMC.
Compare brand image to brand identity. A match is ideal.
Look at competitors images, as well as
customers preferences and needs. Adjust identity.
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Group Influence&
Word-of-Mouth
Advertising
R f G
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Reference Groups
RGs can be actual or imaginary institutions /
individuals, that have relevance on the
individuals aspirations, evaluation, behavior.
RG used as standards for self appraisal theJonesesneighbors, social class
RG used as a source of norms, standards and
attitudes - icons
RG considered to be informative experts /
opinion leaders
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Reference Group Association
Advertising can associate a brand with a
reference group by making the brand
an integral part of group norms through explicitor implicit endorsement of role model
link the brand to the successful performance of
a certain role
Nature of Reference Group Influences
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Nature of Reference Group Influences
External and explicit (social interaction is involved - WOM)
or
Internal and implicit (affected by a mental process, that involves aperson or group)
and
Informational (low knowledge consumers seek information from
those considered to be knowledgeable)or
Normative (comply with the group to satisfy ego, gain rewards,avoid punishment)
Factors that Influence
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the Degree of Group Influence The type ofdecision making unit larger the unit
greater the influence
The kind ofconsumption and purchase situation
more conspicuous the situation greater the influence
The nature of product category riskier, high
involvement greater the influence
Individual differences in susceptibility
Informational Sources
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Diffusion and the Success of WOM
Factors Affecting success of Diffusion / WOM
1. Motivation of Opinion Leaders
2. Motivation of Opinion Seekers
3. And the nature of the innovation
Informational Sources
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Diffusion and the Success of WOM
1. Motivational characteristics for opinion leaders
Involvement in the product
Self involvement
Other involvement
Message involvement
Factors Affecting Diffusion and the
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g
Success of WOM
2. Opinion seekers motivation to listen to
opinion leaders is, he believes that -
OL is trusted as he is seen as .. Interested in the listeners well being
Knowledgeable, experienced and convincing
OL in one category may not work for another
Factors Affecting Diffusion and Success
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of WOM
3. Product characteristics innovation
Relative advantage
Compatibility
Complexity
Divisibility
Communicability
The degree to which the OL is responsive to advertising
will determine the efficacy of the 2 step communication
Implementing an
I f ti l I fl St t
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Informational Influence Strategy
It is not practical to single out the innovator and opinion
leader segment and target communication at them
Hence -
Advertising can simulate - designed to appeal to innovators -
Slice-of-life advertising
Other promotion tools to stimulate WOM DM, PR, Sales
Promos can be used
Normative Influence Become
I t t
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Important.
Influence of reference Group is important with -
New products determine nature and extent of risk
Established products that are socially visible products
(high social risk) use celebrities , slice of life advtg.
Functionally risky products use experts
Culturally significant products give cultural meaning
Normative Influence -
Ad i i Gi d C l l i
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Advertising Gives Brands Cultural Meaning
In a more inclusive way Advertising can give
cultural meaning to Brands
Knowing the particular type of cultural meaning
associated with the category, and
Transferring a desirable cultural meaning to the brand
External Influences on
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Consumers
Culture
Subculture
Social class
Referencegroups
Situations
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Message Strategy
Determining the Intervening Variable(s)
that will
Create a Positive Brand Attitude
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Packaging
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Traditional functions of packaging: economy, protection, storage
Packaging has become increasingly important
because:
self service emphasis of many stores
buying decisions made at point-of-purchase
often customers first exposure to product
Packaging is a way to communicate to consumers
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Pricing Decisions
Price must be consistent with perceptions of the product
Higher prices communicate higher product quality
Lower prices often reflect bargain or value perceptions
A product positioned as high quality while carrying a lowerprice than competitors may confuse customers
Price, advertising and distribution must be unified to create
the position for the product or service.
i ib i h l i i
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Distribution Channel Decisions
Channel decisions involve:Determining the type of channel system:
Direct channels
Indirect channels
Selecting, managing and motivating marketing
intermediaries such as
Wholesalers Distributors
Brokers
Retailers
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"Push" Techniques
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q
Point of sale displays, racks, stands
Trade deals, special displays
Dealer premiums, prizes, gifts
Cooperative advertising deals
Advertising materials, mats, inserts
Push money or"spiffs"
Collaterals, catalogs, manuals
Trade shows, conventions, meetings
"Pull" Techniques
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q
Sampling, free trial
Coupons
Premiums or gifts
Contests, sweepstakes
Price-off deals
Refunds/rebates
Frequency/loyalty programs
Point-of-purchase advertising
Marketing and Promotions Process Model
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Competitiveanalysis
Targetmarketing
Identifyingmarkets
Marketsegmentation
Selecting
a targetmarket
Positioningthrough
marketingstrategies
Productdecisions
Pricingdecisions
Channel of
distributiondecisions
Promotionaldecisions
advertisingdirectmarketinginternet/interactivemarketingsales
promotionpublicityand publicrelationspersonalselling
Resellers
UltimatecustomerConsumersBusinesses
MarketingStrategy and
Analysis
TargetMarketingProcess
Marketing PlanningProgram Development
Promotion tofinal buyer
Target Market
Purchase
Promotionto trade
Awareness/
f ili i
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The
Persuasion
Process of
Advertising
is through
a variety
of effects
familiarity
Brand Benefits /Attributes Info
Creating image /
personality
Associating feelings
with Brand
Linkage of Brand with
peers/experts/group norms
Reminder / Brand trial
inducement
Positive
Brand
Attitude
Purchase
Behavior
These Intervening Variables between Advertising & Action are more
effective Advertising Objectives than Sales
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Segmentation and Positioning
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Segmentation is about deciding
which consumers theAdvertising should be targeted at
The Target Marketing Process
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The Target Marketing Process
Identify markets with unfulfilled needs
Determining market segmentation
Selecting market to target
Positioning through marketing strategies
TM d M di R h A h
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TM and Media Reach Approaches
Controlled Coverage using niche media to
reach only the desired segment e.g. trade
magazines
Customer Selection using mass media toReach is directed at mass audiences