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Advertising Managment PPT Part 1

Advertising is the business of inspiring people. Yet, we re most uninspired. It s the business of knowing everything about everything. The only way you win with colleagues and clients is when you know as much if not more about their business.

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Subhadeep Paul
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100% found this document useful (1 vote)
5K views225 pages

Advertising Managment PPT Part 1

Advertising is the business of inspiring people. Yet, we re most uninspired. It s the business of knowing everything about everything. The only way you win with colleagues and clients is when you know as much if not more about their business.

Uploaded by

Subhadeep Paul
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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| 

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Eastern Institute of Management


2nd Year 1st Semester
m e raw material of Advertising, is life«.
‡ It·s t e business of inspiring people. Yet, we·re most uninspiredð
‡ Its· t e business of knowing everyt ing about everyt ing.
Yet, we know little about just a few t ings.
‡ We believe we·re in a borderless world. Yet, we barricade our
curiosity.
‡ We·re in t e sensorama business. Yet, we don·t use most of our
senses.
‡ You don·t need wings to fly. Just an open mind. And don·t give me
excuses like ´W ere·s t e time?µ
‡ Do you discover one new t ing in your life eac day?
‡    D Live your life t at way«
A step a ead
‡ We were in t e information age. We are now in t e knowledge
domain.
‡ m e only way you win wit colleagues and clients is w en you know
as muc if not more about t eir business.
‡ If you work on real estate, do you know about w at is appening in
t e Ropponji Hills district in Japan or for t at matter Canary W arf
in London or t e 50 Gramercy Park project in New York?
‡ Knowledge is t e next battlefront. m e soldier on t at is t e general
of tomorrow.
‡ |   D Live your life t at way...
Course Content

1. Advertising·s Role in t e Marketing Process


2. Legal/Et ical/Social Aspects of Advertising
3. Process of Communication ² Wilbur Sc ramm Model
4. m eory of Cognitive Dissonance/Advertising Strategy
5. DAGMAR approac
6. Stimulation of Primary/Selective Demand ² Positioning
7. Campaign Planning/Brand Management
Copy/Logo/Illustration/Appeal/Layout
8. Media Planning, Budgeting and Evaluation Press/mC
Course Content«Contd

9. Rationale of mesting Opinion and Aptitude mest


10. Recognition/Recall
11. Advertising Agency D Selection/Compensation/Appraisal
12. Advertising vs Consumer Be aviour
13. Sales Promotions/mactical vs m ematic/Retail
14. National/Co-operative/Political/International/Public
Service Advertising
Expectations from you«
Read
See
Experience
Apply

«as the raw material of advertising is life


Advertising·s Role in t e Marketing
Process
W at is Marketing ?

m e American Marketing Association, defines ¶Marketing· as

‡ t e process of planning and executing t e conception,


pricing, promotion and distribution of ideas, goods (products
~brands) and services to create exc anges t at satisfy
individual and organizational objectives·
Marketing Communication Mix

Marketing Objectives & Strategy

Marketing Plans

Production
Distribution (Place) Promotion

Pricing Planning
m e Promotion Mix

Personal
Advertising Selling

Publicity/
Direct Public
Marketing
marget Audience Relations

Sales
Interactive/ Promotion
Internet
Marketing
Advertising
‡ originates from t e Latin Word Ëad vertere· w ic means Ëto
turn t e mind towards·

‡ Advertising is t e use of media to inform consumers about


somet ing and/or to persuade t em to do somet ing in
effect. It brings products/brands and consumers toget er
and t en modulates t e relations ip between t em
Uuestion ?
‡ If Advertising is a part of Marketing, t en is it all about
Communicating ?
Example..W en I say«
‡ A Cola ‡ Coca Cola
‡ A P otocopier ‡ Xerox
‡ A P otograp ic Film Material ‡ Kodak
‡ A Microprocessor ‡ Intel
‡ An Expensive Swiss Watc ‡ Rolex
‡ Cartridge Blades for S aving ‡ Gillette
‡ Main Frame Computers ‡ IBM
‡ Operating Software ‡ Microsoft

W at comes to your mind ? W at do t ese communicate to you?


m e Law of Advertising
‡ Advertising, today, is all about ¶Building· brands and
¶Positioning· brands in t e mind of t e consumer and not
just communicating about it.
W at is a Brand ?

‡ A Brand is not a product D it is t e product·s source and it


defines its identity in time.

‡ m e value of a brand lies in its capacity to generate cas flows.

‡ A brand is a landmark«it is enduring.


In Effect«.
‡ A Brand is an Identity
(like all famous personalities as its distinctiveness)

From a long term point of view,


We need to win Ë     rat er t an ¶s are of space·
Some quick examples & an exercise«
Brand Positioning
Exercise D Category Soap
‡ Lifebuoy ‡ Hygiene
‡ Liril ‡ Fres ness
‡ Lux ‡ Beauty
‡ Santoor ‡ Goodness-Sandalwood
‡ Dove ‡ Moisturizer
‡ Ayus ‡ Herbal
‡ Dettol ‡ Antiseptic
‡ Hamam ‡ Family
‡ Aramusk ‡ Masculinity
Corporate Advertising
Advertising done to promote t e interests of t e
firm by en ancing its image, assuming a position
on a particular issue or promoting a certain cause

mypes of Corporate Advertising

mImage Advertising
mEvent sponsors ip
mAdvocacy advertising
mCause-related advertising
Objectives of Corporate Advertising
m Create a positive image for t e firm
m Communicate t e organization·s viewpoint on various issues
m Boost employee morale
m Smoot labor relations
m Help newly deregulated industries
m Help diversified companies establis an identity
C evron Engages in Image Advertising
Event Sponsors ip
Event Sponsors ip is a form of marketing communications
w ereby an organization becomes involved wit a particular
event by developing sponsors ip relations.

Events used for sponsors ipD


‡ Sporting events
‡ Music/entertainment
‡ Festivals
‡ Arts/cultural events
‡ Causes
Advocacy Advertising

Advocacy advertising is t e propagation of ideas and


elucidation of controversial social issues of public
importance in a manner t at supports t e interests
of t e sponsor
m e San Diego Zoological Society
Cause Related Marketing

Cause related marketing is a form of marketing


w ereby companies link wit c arities or nonprofit
organizations as contributing sponsors
Kitc enAid uses cause-related marketing
mry Reading m is
        

cdnuolt blveiee ta t I cluod aulaclty uesdnatnrd wa t I was rdanieg. m e


p aonmneal pweor of t e muan mnid, aoccdrnig to a rsc eearc at
Cmabrigde Uinervtisy,
it deosn't mttaer in wa t oredr t e ltteers in a wrod are, t e olny iprmoatnt
ti ng is ta t t e frist and lsat ltteer be in t e rg it pclae. m e rset can be a
taotl mses and you can sitll raed it wout it a porbelm.
mi s is bcuseae t e uamn mnid deos not raed ervey lteter by istlef, but t e
wrod as a wlo e. Amzanig u ? yae and I awlyas tg u ot slpeling was
ipmorantt!
Direct Marketing
‡ W en organizations communicate directly wit target
consumers to generate a response and/or a transaction.
‡ It·s not just direct mail but a ost of activities suc as
database management, direct selling, telemarketing, multi
level marketing, and direct response ads, catalogue selling
etc.,
‡ Eg D L L Bean, Dell, mupperware, Amway
Interactive/Internet Marketing
‡ Using t e internet and t e world wide web as t e medium
for exc ange of information and transactions
‡ Eg D Amazon.com, ebay.com
‡ Eg D Nike ¶W atever· campaingn
Sales Promotion
‡ Are t ose activities t at provide extra value or incentives to
t e sales force, t e distributors/retailers or t e ultimate end
consumers and can stimulate immediate sales.
‡ Consumer Oriented Sales Promotions D Coupining, sampling,
Premium, Rebates, Contests, and Point of Purc ase Materials
‡ mrade Oriented Sales Promotions D Merc andising
Allowance, Price Deals, Sales Incentives, mrade S ows,
Dealer Meets,
Public Relations and Publicity
Public Relations
mo manage relations ips wit t e Public

 
 

  


 !
Public Relations Management Process

m Determination and evaluation of public


attitudes
m Identification of policies and procedures of an
organization
m Development and execution of t e program
Marketing Public Relations (MPR) Functions

§ Building marketplace excitement before media advertising


breaks
§ Creating advertising news w ere t ere is no product news
§ Introducing a product wit little or no advertising
§ Providing a value-added customer service
§ Building brand-to-customer bonds
§ Influencing t e influentials/opinion leaders
§ Defending products at risk and giving customers a reason to
buy
Public Relations Audiences
m Employees of t e firm
m Stock olders and investors
m Community members
m Suppliers and customers
m m e media
m Educators
m Civic and business organizations
m Governments
m Financial groups
Public Relations mools
m Press releases
m Press conferences
m Exclusives
m Interviews
m Community involvement
m m e internet
Example of a Press Release
Reebok Used a Press Conference to
Announce t e Sponsors ip of S akira
PR Publications
§ Inserts § News releases
§ Enclosures § Media kits
§ Annual reports § Booklets
§ Posters § Leaflets
§ Bulletin boards § Pamp lets
§ Ex ibits § Broc ures
§ Audiovisuals § Manuals
§ Position papers § Books
§ Speec es § Letters
Advantages of Public Relations
m Credibility
m Cost
m Avoidance of clutter
m Lead generation
m Selectivity
m Image building
Criteria for Measuring PR Effectiveness
m          
§ Over time
§ On t e target audience
§ On specific target audiences
m   "    
§ Positive articles over time
§ Negative articles over time
m    #  " # 
m   "   #  " #    
§ Subject
§ Publication
§ Reporter
§ marget audience
Publicity
Publicity involves t e generation of news about a company,
product, service, brand or person in various media. It is a
subset of t e public relations effort.

Key points regarding publicityD


m Publicity is generally s ort-term focused
m Publicity is not always under t e control of t e
firm
m Publicity can be negative as well as positive
m e Power of Publicity
mPerceived as more credible
mOften perceived as endorsed by t e medium in
w ic it appears
mOften as ig news value
mOften generates ig frequency of exposure
Responding to Negative Publicity
Using Positive Publicity
Advertising ersus Publicity
$  |#  "  

Control Great Little

Credibility Lower Hig er

Reac Ac ievable Undetermined

Frequency Sc edulable Undetermined

Cost Specific/Hig Unspecified/Low

Flexibility Hig Low

miming Specifiable mentative


Personal Selling
‡ A form of person to person communication w ere a seller
attempts to assist and/or persuade prospective buyers to
purc ase a company·s product or service or to act on an idea.
‡ Eg. Real Estate/Insurance, NGO cause, PUBLIC
Selection Criteria of t e Promotion Mix


 

·

       

    
 

  
! " 

 #
Advertising Regulation
Legal, Moral and Et ical Aspects of
Advertising
Federal mrade Commission (US)
‡ Promotional practices of t e mobacco and Alco ol Industry
‡ Healt Claims in t e food Industry
‡ C ildren·s Advertising D moy Industry ² ´Dial A Santaµ
‡ Advertising to t e Elderly D Healt Safety, Financial Security
‡ Environment

50 cases in nearly 100 million in judgement


W at is Deception ?
‡ Conceptually Deception exists w en as Advertisement is
introduced into t e perceptual process of some audiences
and t e output of t at perceptual process
² Differs from reality of t e situation
² Affects buying be aviour to t e detriment of t e
customer
m e ad may not be false but t e perception may be
More meaning to Deception
‡ m ere is a misinterpretation, omission or practice t at is
likely to mislead
‡ m e consumer is acting responsibly (or reasonably) in t e
circumstances
‡ m e practice is material and consumer injury is possible
because consumers are likely to ave c osen differently if
t ere was no deception
Misrepresentation or Omission
5 of t e 13 causes
‡ W en an Ad suggests a small difference is important D eg mar
level in cigarettes
‡ Artificial product demonstrations D
‡ Using an ambiguous or easily confused p rase D eg
´government supported· meaning ¶government approved·
attorneys claiming to be specialist/certified
‡ Implying t at a benefit t at does not fully or partially exist D
eg Efficen no Aspirin effect
‡ Implying t at a product benefit is unique to a brand D eg
Wonder Bread built bodies
Puffery
‡ A subjective statement of opinion about a products quality D
great/best/ can·t get any closer/better deal etc.,
Neit er ave been proved true neit er false

‡ Poetic License or allowable exaggeration


² BMW D m e Ultimate Driving Mac ine, Bayer Aspirin ²
m e Wonder Drug
‡ Is an exaggeration extended to t e point of outrig t spoof
t at is obviously not true D Snapple ² Made from t e best
stuff on eart
Legal, Et ical, Social Aspects of
Advertising
You Judge
m e deeper meaning
‡ LegalD pertaining to, or according to law

‡ Et ical D moral principles and values t at given t e actions


and decisions of an individual or a group - relating to
morales, principles

‡ Social D pertaining to society, organized community


m e Implications
‡ Conceptually, deception exists w en an advertising·s input
to t e perceptual process of t e mG and t e output of t at
process a) differs from t e reality of t e situation b) affects
buying be aviour to t e detriment of t e consumer
‡ According to t e Ferderal mrade Commission Act (FmC)
passed in t e US in 1914, deception will be found if t ere is a
misrepresentation or omission t at is likely to mislead t e
consumer to acting responsibly
m e Implications
‡ Misrepresentation or omission can occur w en an ad
contains t e incorrect implication t at D a) test conducted
scientifically b) a benefit exists c) claim is substantiated
‡ Puffing, t e subjective statement concerning a products
quality using terms suc as ¶best· is permissible
‡ m e AAI and t e Consumer Forum
‡ mrademark protection/Self Regulations
‡ Social Implications/Et ical Issues
‡ Healt and Environment Issues
‡ Politically being correct D Gender/Sexual Preferences
Legal Issues in Advertising
IPR
‡ mrade Mark Signs (Word, Colour, Picture etc.,)
‡ Patents Inventions (Products or Processes)
‡ Designs
‡ Copyrig t
‡ mrade Secrets
‡ Patents
Et ical Issues in Advertising
Starbucks Case Study
|#  "
‡ Definition D Advertising is a public notice meant to
convey information and invite patronage or some ot er
response.

|#  "  # 


‡ Information represents a distorted image of reality
‡ Response is negative

     "


‡ Mitigating arm
‡ Responding to stake olders needs
‡ Repairing image

         " |#  "


 # 
m e Starbucks Case

‡ mo some t is was clearly offensive after 9/11


‡ mo ot ers t is image is innocuous
New York Post, June 18t 2002D

´Starbucks Yanks Ad
  9/11µ

"As a New Yorker w o watc ed t e w ole [Sept. 11]


incident outside my window«seeing t e poster in
Starbucks directly across from Ground Zero adds some
resonance t at per aps t e people in Seattle did not
grasp," fumed customer Gregory Moore, w o first
complained to t e Post.
Starbucks response

"We deeply regret if t is ad was in any way misinterpreted to


be insensitive or offensive, as t is was never our intent. m e
poster, promoting mazo Citrus and mazoberry beverages, was
designed to create a magical place using brig t colors and
w imsical elements suc as palm trees and dragonflies."

Starbucks Press Release 6/16/2002


W y Recognizing t e Et ical
Dilemma Matters

‡ m ese are immediate decisions w ic will forever affect t e


public's opinion of t e company and t e value of t e world
wide brand.

‡ If t e company does not identify or recognize et ical aspects


of crisis, it·s too late.
Sc emas and ScriptsD W en Are You
in An Et ical Dilemma?
‡ Starbucks Collapse into CoolD
² ActionD Recognize post-9/11 environment &
immediately pull t e ads
² ResultD stake olders protected
Social Aspects of Advertising
m e advertising p ilosop y of United Colors of Benetton is
based on Luciano Benetton's belief t at 'communication
s ould not be commissioned from outside t e company, but
conceived from wit in its eart.'

´All t e colors of t e worldµ was one of t e first slogans to


appear in Benetton ads, and was later altered to ´United Colors
of Benetton.µ m e concept of united colors was suc a strong
one t at for t e first time in its istory, t e company adopted
t e slogan as its actual logo. Creative Head D Oliviero moscani
Benetton·s long journey toward its destiny as a subverter of stereotypes began wit its
cooperation wit Oliviero moscani and t e images of t e 1986 campaign. Happy groups
of multiracial kids were replaced by ´couplesµ representing an all-new interpretation of
difference. In t is cycle, t e word ´differentµ became a close cousin of ´controversial.µ
Benetton learned t at dealing wit t e issue of difference wit in t e process of
advertising is not an easy task. Often, an attempt to bring different individuals toget er
can lead to conflict instead of appiness and eup oria.
After equality and t e exaltation of differences, Benetton turned to t e
reality of w at is common to all and s ared by umankind. m e dialogue
t at Benetton ad begun wit its ´consumersµ (w om it ad always viewed,
above all, as men and women) gained dept .In 1991, during t e Gulf War,
t is image was created, a p oto of a war cemeteryD mo opposition against t e
irruption of ´deat µ as an advertising subject, Benetton answered wit a
birt , t e famous image of a newborn baby still attac ed to t e umbilical
cord.
At t is point, t e language of Benetton communication c anged radically. Wit t e February
·92 campaign came t e scandal of planetary proportions. m ese ads s owed news p otos of
real, ig -drama situationsD a man dying of AIDS, a soldier gripping a uman t ig bone, a
man assassinated by t e Mafia, a car on fire, a s ip being stormed by emigrantsð
m e reaction to t ese real-life p otos was sometimes violent. Many publications in
several countries refused to print t e campaign. By eliminating t e product from its
ads, violating t e taboo of disagreeable t emes, associating its name wit t e
representation of conflict and pain and, above all, abandoning t e false, comfortable
world of advertising stereotypes, Benetton cracked t e foundation t at eld up t e
culture, language and specificity of t e classic advertising message.
King James I  

‡ ...a custom lot esome to t e
eye, ateful to t e nose,
armful to t e brain, dangerous
to t e lungs, and in t e black
and stinking fume t ereof,
nearest resembling t e orrible
stygian smoke of t e pit t at is
bottomless (1604)
mobacco in Society
‡ Unique consumer product
² Kills 1 in 2
² Addictive
² Almost unregulated
‡ Pervasive drug use
² Nicotine self-administration
² Dirtiest possible delivery system
² 10 million dependent on nicotine
W o smokes?
‡ 13m smokers
² 28% men
² 26% women
² 15% professional
² 39% manual unskilled
‡ 82% start as teenagers
‡ 70% want to quit
² 4m try in any year
² c. 300,000 succeed
² 10m ex-smokers
Healt impacts
‡ Harm to smokers
² 120,000 UK premature deat s per year
² over 50 ealt impacts
² addiction c.10m dependent in t e UK
‡ Harm to ot ers
² lung cancer, eart disease, ast ma
² pregnancy complications and cot deat
² 17,000 ospital cases per year in under-5s
² welfare
Some Impacts
‡ Cancer ‡ Deforestation
‡ Heart & Circulation ‡ Indoor air pollution
‡ Respiratory ‡ Waste & Litter
‡ 20 fatal illnesses ‡ Ozone depletes Pesticides
‡ 50 non-fatal illnesses ‡ Labour exploitation
‡ Widespread addiction ‡ Fires
‡ Cost burden ‡ Criminal activity
‡ Productivity
meenage Smoking
PoliticsD mwo iews
‡ A legal adult consumer ‡ A let al product wit over 50
product t at people are free known ealt impacts -
to c oose if t ey want to including arm to non-
enjoy t e pleasure of smokers - sold by a predatory
smoking, knowing and industry w ic nurtures
accepting t e widely teenage smoking until
publicised and usually nicotine addiction takes over.
overstated risks.
How it works - part 1

Younger adult smokers are t e only source of


replacement smokers... If younger adults turn away from
smoking, t e industry must decline, just as a population
w ic does not give birt will eventually dwindle.

(RJ Reynolds, 1984)


How it works - part 2
A cigarette for t e beginner is a symbolic act. I am no
longer my mot er's c ild, I'm toug , I am an
adventurer, I'm not square «

As t e force from t e psyc ological symbolism


subsides, t e p armacological effect takes over to
sustain t e abit.

(P ilip Morris,1969)
Responses
‡ Informed c oice v. disinformation
‡ mobacco promotion
‡ maxation
‡ Smoking in public and workplaces
‡ Smoking cessation support
‡ Reduce armfulness of t e product
Warning...

´m e tobacco industry as succeeded w ere many


ealt education programs ave failed because
t ey capitalize on t e deep social needs t at most
compel adolescentsD to fit in, to exert
independence from parental control, and to
demonstrate p ysical agility and sexual allure.µ
Smoking in public places
Process of Communication
Wilbur Sc ramm Model
Linear Model of Communication

Realms of Realms of
Understanding Understanding

  " | " #

  


|

Noise Noise
$ |
Linear Model
ã    %&''( )  
   
1. Source D Individual/Organization sending t e message
2. Encoding D transferring intended message to symbolic style
t at can be transmitted
3. Signal D transmission t roug particular media
4. Decoding D understanding and interpreting t e symbolic
style
5. Receiver D Individual/org receiving t e message
6. Feedback D Receivers Communication Back to source
7. Noise D distortion of t e communication message
Realms of Understanding
m e concept ¶realms of understanding· is an important element
in t e concept of communication process because it
recognizes t at successful communications are more likely to
be ac ieved if t e source and t e receiver understand eac
ot er. m is understanding concerns attitudes, perceptions,
be aviour, and experience.
m e Ot er Forms/Role Players
‡ One Step
‡ mwo Step
‡ Multi Step
‡ Word of Mout
‡ Opinion Leaders
‡ Opinion Formers
‡ Opinion Followers
Process of Adoption
New Product Adoption m eory

‡ ADOPmION PROCESS
- m e consumer decision stages t at lead to innovation
acceptance/rejection
- A micro process process t at focuses on
internal forces of t e consumer
* Intra Personal (Psyc ) Influences
* Inter Personal (Social) Influences
* Product Selection Criteria
Process of Adoption
Prior Conditions
Needs/Problems

Communication C annels

Knowledge Persuasion Decision Implementation Confirmation

Adoption Contd. Adoption


Later Adoption
Socioeconomic Relative Advantage
Discontinuance
Personality Compatibility
Communication mriability Rejection Continued Rejection

Rogers 1983
Example
‡ Knowledge ² Ra ul cleans is teet , begins to notice
sensitivity
‡ Persuasion ² Notices t at ¶Special Paste· claim t ey reduce
sensitivity. Friend also confirms
‡ Decision ² Prepared to believe. Given free sample ( or
special price deal)
‡ Implementation ² Buys and tests it
‡ Confirmation ² Improves. Reads article t at w ets it.
Continues to buy it
An Example
Reliance India Mobile
Category Need D Knowledge/Persuasion
Awareness
Brand Awareness D Decision
Implementation
Brand Facilitation/Purc ase Intention

Web Worlds
501 Sc eme
Free malk
Process of Diffusion
New Product Diffusion m eory
- t e spread of an innovation from its source to t e ultimate
consumer.

- a macro process t at focuses on external forces on t e consumer


(c ange agents, c annels of information, types of information)

- occurs in a social system (a target audience, community, etc.)


›  
  
Process of Diffusion

Early Majority
Early Adopters Late Majority

Laggards

Innovators

2.5% 13.5% 34% 34% 16% 2.5% 13.5% 34% 34% 16%

mime
Process of Diffusion
‡ Innovators D Like new ideas ave large disposable incomes
‡ Early Adopters D Large opinion leaders, important in
speeding diffusion, younger and educated. Consult people.
Imp to Mktg Comms. As t ey speed process.
‡ Early Majority D Usually opinion followers, average age,
education, social status and income.
‡ Late Majority D Skeptical of new ideas, adopt because of
social and economic factors
‡ Laggards D Suspicious of all new ideas. Lowest on rung.
Speed of Diffusion

is influenced by«

* Competitive Intensity
* Good Supplier Reputation
* Standardization of mec nology
* ertical C annel Coordination
* Resource Commitments
Categories

‡ INNOAmORS - are first to buy and typically described as


venturesome, younger, well educated, financially stable, and
willing to take risks.

‡ EARLY ADOPmERS - are local opinion leaders w o read


magazines and w o are integrate into t e social system more
t an t e average consumer.
Categories

‡ EARLY MAJORImY - solid, middle-class consumers w o


are more deliberate and cautious

‡ LAmE MAJORImY - described as older, more conservative,


traditional, and skeptical of new products
Diffusion Process,
Adopter Categories
‡ Laggards  * *
² Resist c ange
 +
² Conservative
   #
² Like tradition    
² Often older & lower in *
socioeconomic status

‡ Nonadopters
² Refuse to c ange

 * ,
Life-Style C aracteristics of Innovators &
Non innovators
    #   # 
‡ Product Interest MORE LESS
‡ Opinion Leaders ip MORE LESS
‡ PersonalityD
Dogmatism OPEN-MINDED CLOSE-MINDED
Social C aracter INNER-DIRECm OmHER-DIRECm
Category Widt BROAD NARROW
‡ enturesome ness MORE LESS
‡ Perceived Risk LESS MORE
Life-Style C aracteristics of Innovators &
Non-innovators
    #  # 
‡ Purc ase and Consumption mraitsD
Brand Loyalty LESS MORE
Deal Proneness MORE LESS
Usage MORE LESS
‡ Media HabitsD
Magazine Exposure MORE LESS
melevision LESS MORE
Specialized Magazine MORE LESS
Life-Style C aracteristics of Innovators and
Non-innovators
    #   # 
‡ Demograp ic C aracteristicsD
Age YOUNGER OLDER
Income MORE LESS
Education MORE LESS
Occupational Status MORE LESS
‡ Social C aracteristicsD
Social Integration MORE LESS
Group Members MORE LESS
Some merminology
RELAmIE ADANmAGE - is an en anced bundle of benefits or
clear-cut advantages over existing offerings
COMPAmIBILImY ² is acceptance wit existing abits, values
and consumption be avior, similar usage as existing products
mRIAL ABILImY is t e experience or see t e newness
Easily tested, Low risk, Inexpensive, No special equipment
Free samples or coupons
OBSERABILImY - is t e opportunity for buyers to see t e
newness
COMPLEXImY - is a disadvantage for new products w ic slows
diffusion and may be offset by simplifying usage or t roug
extensive education
W y Some New Products Fail and
Ot ers Succeed

o  &  $  ã-


‡ Failure to Meet Customer Needs
‡ Poor miming
‡ Market Conditions
‡ Ineffective or Inconsistent Branding
‡ mec nical or Design Problems
‡ Overestimation of Market Size
‡ Poor Promotion
‡ Insufficient Distribution
m eory of Cognitive Dissonance
Cognitive m eory
‡ Mainstream psyc ology as moved from be aviourist to cognitive
orientation.
‡ Cognitive t eory is based upon D
² Information processing
² Problem solving
² Reasoning approac to uman be aviour

Individuals use info generated by external sources (advtg) and internal


sources (memory). m is process is t oug t, processed, transferred
into meanings or patterns and t en combined to form judgments
about be aviour.
W at do t ese pics tell you ?
Cognitive m eory
‡ Determinants t at are important to understand cognitive
orientation ² contribute to t e way individuals process
information.
² Personality
² Perception
² Learning
² Attitudes
² Environmental Influences
Personality
‡ Beamis Iris Ale D Is a traditional Iris Ale.
‡ Campaign launc ed in 1997 presented two sides of life, t e
red and t e black.
‡ Intended to reflect t e two sides of Iris personality
‡ Beamis Ale available in bot red and black drink allows
drinkers to satisfy complementary attitudes, tastes and
ocassions.
Perception
‡ olvo D regarded as a safe, reliable and environmentally
friendly car . For t e family.
‡ New ad ¶m e Porc e will be along in a couple of seconds·
s owed a olvo 850 estate car outpacing a Ferrari.
‡ Appeal to new markets, new segments..·boxy and boring· to
¶safe but sexy·
‡ Aim was to attract pre family and older post family buyers.
Learning
‡ Kellogs All Brand a s redded fibre breakfast cereal began to
lose market s are in t e late 1980·s.
‡ Researc revealed t at buyers understood t e importance of
fibre in t eir diet but assumed t at fres fruit, w ole meal
bread and vegetables were easier alternatives souces of fibre.
‡ In 1990 Kellogs launc ed a campaign t at compared t e
fibre content of All Bran wit ot er natural foods
‡ Buyers were encouraged to make a judgement about t eir
current diet and t e alternative t at was being presented as
patently superior.
Attitudes
‡ Skoda t e East European car manufacturer as long suffered an inferior
reputation in Western Europe
‡ W boug t s ares in 1991
‡ Launc ed Felicia in ·94 and Octavia in ·96
‡ Unprompted awareness of Skoda was 100%, need to communicate t e
c ange in owners ip.
‡ ¶We ave c anged t e car, can you c ange your mind?·
‡ C allenge to buyers to revisit t eir attitudes towards Skoda
‡ ¶W o·s be ind t e c anges at Skoda· ² Oct 1995
‡ ¶Judge for yourself· ² January 1997
‡ W·s efforts to c ange attitudes
Environmental Influences

Situational
Culture Social Class
Influences

Communication
Groups
Situations
Cognitive Dissonance
‡ Is a state w ere after any decision as been made a buyer
mig t feel tension about is/ er past decision because t e
product fails to reac expectations or t e consumer becomes
aware of a superior alternative

‡ Eg D Car Manufacturers D keep re-emp asizing positive


features on and on.
Four Main Paradigms
Leon Festinger 1957
‡ m e Free C oice Paradigm ² dissonance occurs as t e result
of t e c oice being made
‡ m e Belief Disconfirmation Paradigm ² dissonance comes
from exposure to info inconsistent wit one·s belief
‡ m e Effort ² Justification Paradigm ² dissonace occurs w en
a person engages in an unpleasant activity wit intentions to
gain a desirable result
‡ m e Induced ² Compliance Paradigm ² dissonance is
aroused w en one does or says somet ing t at is contrary to
an existing belief or attitude
WHY mHIS SmRESS ON
BRANDING ?
 |  ã
Art ur Anderson·s report on Fortune 500 companiesD

Market Capitalisation

N T , 5%
100%

80% Non-
Tangible,
60% 75%
Book Value,
95%
40%

20% Book Value,


25%

0%
1980s 1999
 |  ã
Art ur Anderson·s report on Fortune 500 companiesD

m e | of a Company
is increasingly being determined by its
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Repetitive
Relevant
Memorable and
Consistent Communication of a
Credible Promise.
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Delig ting t e customer!


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SourceD Even More Aggressive Marketing


BRAND MANAGEMENm -
AN AGENCY PERSPECmIE
WHAm IS A BRAND ?
‡ A Brand is not a product D it is t e product·s source
and it defines its identity in time.

‡ m e value of a brand lies in its capacity to generate


cas flows.

‡ A brand is a landmark«it is enduring.


WHY IS BRAND
MANAGEMENm IMPORmANm ?

‡ moday, t e primary capital of any businesses is t eir brand.


‡ For decades, t e value of a company was measured in terms of
real estate, t en tangible assets, plants and equipment's.
‡ However«. it as been recognized t at a company·s real value
lies outside t e business itself, in t e  of its   
IN EFFECm«.
‡ A Brand is an Identity
(like all famous personalities as its distinctiveness)
BRAND IDENmImY S IMAGE

‡ Image is on t e receivers (consumers) side.


*
‡ Identity is on t e senders (manufacturer/agency)
side
FROM AN AGENCY POINm OF
IEW«.
‡ It is important ow we build Brand Identity
BRAND POSImIONING
‡ It as become common to analyze Brands according
to t eir positioning. m e term applies to a process of
emp asizing t e brand·s distinctive and motivating
attributes in lig t of competition.
BRAND POSImIONING
W y? For W om ?

W en ? Against W om ?
WHY ?
‡ W at is t e specific consumer benefit do we bring to
t e consumer ?
Sony brings innovation
Nokia connects people
Intel brings swiftness,fast processes
P ilips makes t ings better
FOR WHOM ?
‡ m is indicates t e marget Audience

Omega - for t ose w o·ve made it in life


Complan - for mot er·s of growing c ildren
WHEN ?
‡ m is indicates t e occasion to use t e brand
Surf Excel - w en you ave a front loading was ing
mac ine
Society mea - Anytime
AGAINSm WHOM ?
‡ Points to t e main competition

Kissan s Maggi
Colgate s Pepsodent
Clinic s Head & S oulders
BRAND POSImIONING
‡ Positioning is important as it reminds us t at it is
meaningless unless positioned in t e consumers
mind versus competition
But Positioning is more a reflection of a product,
and does not exploit its full potentialities
m us t e need for
A Brand Identity
BRAND IDENmImY
‡ mo become a power brand & remain so, a brand as
a duty to be fait ful to its identity.

Brand Image is a volatile and c anging notion - it is


concerned too muc wit t e appearance of t e
brand and not enoug wit its very being.
mHE BASIC DIFFERENCE

| 
|  |  

‡ Idealism Durability
‡ Fickleness Co erence
‡ Opportunism Realism
mHE BRAND IDENmImY PRISM
(mOOL)

P ysique Personality

Relations ip Culture

Reflection Self Image


IBM - PRISM

All data processing


systems Confident Square

Security, Assurance Big Biz, Ivy L


East C, Wall St.

m ose w o take biz ¶I am a pro·


seriously
APPLE - PRISM
Microcomputers
Easy Acess, all purpose Creative, Cool

Liberated, Friendly New Humanism,


West C, C ange

Young Minded,
Self En ancement
Autonomous
SOURCES OF IDENmImY
‡ m e Products (Benetton - colour)
‡ Power of Name (Apple - Computers)
‡ Brand C aracters & Symbols (Gattu, Amul Girl)
‡ mrademark and Logos (Mercedes Emblem)
‡ Geograp ical/Historical Roots (Swissair)
‡ Advertising D Content & Form (Marlboro Man)
India Kings
An Example
mHE BRAND IDENmImY PRISM
(mOOL)

P ysique Personality

Relations ip Culture

Reflection Self Image


mHE COMMUNICAmION
PROCESS
‡ Communication Effects
‡ Strategic Planning
‡ Consumer Insig t
‡ Discriminator/Ad Idea/Executional Idea
‡ Brand Experience
mHE 5 COMMUNICAmION
EFFECmS
‡ CategoryNeed
‡ Brand Awareness
‡ Brand Attitude
‡ Brand Purc ase Intention
‡ Purc ase Facilitation
All Consumers experience t ese effects before any
buying decision
CAmEGORY NEED
‡ Consumers Ä Ä of requiring somet ing (a product
or service) to      a perceived discrepancy
between t e current motivational state
and t e desired motivational state
BRAND AWARENESS
‡ Consumers ability to  (     ) t e
brand t e category in sufficient   to make
a purc ase
BRAND AWARENESS
‡ At t e product category level, a person won·t buy
unless e or s e  t e need. At t e brand level, a
person cannot buy unless e or s e is     of
t e brand. m us Brand Awareness     
Ä  over ot er Brand level communication
effects Ä   
BRAND AWARENESS
RECOGNImION S RECALL
‡ Brand Recognition
Brand is encountered 1st Buyer t en c ecks need
Ë     Ë  Ä  
‡ Brand Recall
CN encountered Buyer Recalls Brand
Ë Ä     Ë  
BRAND AWARENESS

Brand Identification    3.


At Point of Purc ase Brand Recognition
Prior to Purc ase Brand Recall

You    


   to be aware of t e brand, but
you   
   to buy it.
BRAND AmmImUDE

‡ Consumers      of t e brand wit respect


to its perceived ability to meet a      
   .

‡ Brand Attitude consists of an    or affective


component w ic   t e brand and a  or
cognitive belief t at     towards a particular
brand
BRAND AmmImUDE
‡ If motivation c anges, t e evaluation mig t c ange,
t erefore it is important t at we    
t at t e brand is perceived to meet
‡ BA = Emotional + Logical
‡ Emotional -   , Logical - 
‡ If motivation exists t en consumer will buy, need to
make t e best fit
BRAND AmmImUDE

    |    3.


No Brand Attitude Create Attitude
Moderately favourable Reinforce or
Reposition
Maximally favourable Maintain
Negative Attitude C ange
BRAND PURCHASE
INmENmION
‡ Consumers      to purc ase t e brand or to
take purc ase related action
BRAND PURCHASE
INmENmION
‡ It is a conscious plan to  Ä t e consumer
response sequence
‡ Low BPI - till t e time of purc ase
‡ Hig BPI - at t e purc ase point
 !  "    
PURCHASE FACILImAmION

‡ Consumers perception of     (4P·s)


t at can inder or stimulate purc ase
PURCHASE FACILImAmION
¶You can run a brilliant advertising campaign, and sales
go down. W y ?· -Rosser Reeves

È Your Product may not be rig t


È Your price may not be rig t
È Your distribution may not be rig t
È Your sales force may be bad
È Your competitor may be spending 5D1
È Your competitors promotion may be bleeding
you
PURCHASE FACILImAmION

 4      3.


No problems wit 4P·s Omit

Perceived Problems Incorporate


AmmRIBUmE S BENEFIm S
MOmIAmION

‡ Attributes - w at t e Brand as
‡ Benefits - w at t e consumers want
‡ Motivation - is w at consumers want t e benefit for
 Ä  
AN EXAMPLE

Category D moot paste


Attribute - Astringent
Benefit - Mout Fres ness
Motivation - I like t e feeling (sensory gratification), I ave
a date (social approval), remove a bad taste (problem
removal)
ADERmISING FAILS
BECAUSE
A) It·s more execution t an idea

B) It·s more idea t an execution

W ic is t e rig t answer ?
A great Agency delivers bot but be ind every
successful execution lies a
  |
Examples ??
m e importance of
Strategic Planing
WHY SmRAmEGIC PLANNING
?
‡ Client wants Creativity
² Creativity t at sells, adds value to t eir brand and
even more to t eir bottom line
‡ Consumers are Experts
² Not empty vessels, knowledgeable, know w en
t ey are patronized, bored or uninvolved
² Reject advertising t at does not appeal
ADERmISING SmAmISmICS

500 messages per day

76 get noticed

12 remembered

9 remembered and liked (1.8%)


ADERmISING MUSm MAKE
mHE CONSUMER...
S D Simple
M D Memorable
I D Interesting
L D Linked to t e Brand
E D Emotionally Involving

ðð D " #$   # 


% #!Ä # 
 
WHAm DOES SmRAmEGIC
PLANNING DO ?
‡ It elps discover t e Big Idea
WHAm MAKES AN IDEA A BIG
ONE ?
‡ It·s always fres , involving or surprising
‡ It is insig tful and pertinent to t e audience
‡ It may c ange t e way t e consumer sees t e Brand, or
even t e category it comes from
‡ It often triggers a positive response ¶A !·
SOME OBSERAmIONS

‡ Great Brands ave brand ideas â    & before


t ey ave creative ideas â  #'  &
‡ Great Creative ideas are based on       
‡ ( one gets big ideas  in a   
‡ An idea can come from  
WHAm IS A BRAND IDEA ?

‡ Simple idea of our brand t at people ave in t eir


minds
‡ W o t e brand is for ?
‡ Idea t at is bot motivating and differentiating
‡ Combination of need, benefit and personality
BRAND IDEAS

‡ Olivio - Longer lives


‡ Britis Automobile Association - 4t emergency
service
‡ Haagen Daz - ultimate sensual pleasure
‡ Coca Cola - Alternative to Water
BRAND IDEAS ARE ALWAYS FOR
SOMEONE

‡ Burger King is for Burger lovers

‡ BMW is for people w o love to drive

‡         !*   

‡ Surf Excelmatic - for t e ouse wit t e front loader

‡       * *    


mHE BIRmH OF BIG IDEAS

‡ Be ind every big idea is a  


 Consumer Insig t
WHAm IS A CONSUMER
INSIGHm ?
‡ A simple universal uman trut t at will connect
your consumer to your brand

‡ It resonates wit people, touc es a nerve, cuts


t roug
OUR BELIEFS ABOUm INSIGHm

‡ m e insig t sets t e brand apart by focussing on a


desirable difference w ic forms a closer
relations ip wit t e consumer

‡ Consumer Insig t inspires great creative ideas w ic


deeply connect wit t e consumer
SOME EXAMPLES

‡ Axe - Every man dreams of a woman making t e first


move
‡ Cup-a-soup - By 4 o·clock you are tired of tea and coffee
‡ Rolo - w en you ave somet ing delicious to s are, you
ave to t ink ard w at to do wit t e last one
CAEAm

‡ m ere is no rig t or wrong insig t


‡ m ere can be many insig ts
‡ One s ould  
  insig t t at is    to t e
brand and offers     Ä   
INSIGHmS PROIDE
NEEDS
Insig ts Need
If you do not let your c ildren Clean clot es get dirty and play
t ey won·t Dirt & stains be well rounded
removed

Every man dreams of a woman mo successfully


making t e first move seduce girls
GREAm CONSUMER
INSIGHmS

‡ Solves Business Issues


‡ Builds Brands
‡ Inspires Creative Ideas
‡ Involves Consumers
‡ Delivers Competitive Advantage
‡ CREAmES GROWmH
r  )
mHE INSIGHm MINE

People do not give you insig ts, t ey ave to


be    
Start in t e rig t place
From knowledge & understanding comes
inspiration
Ask smart questions
Look outside t e box
OLKSWAGEN PASSAm

‡ On a trip to Germany it was discovered t at


engineers were suc perfectionists t at t ey were
obsessed. One even said t at w en e was on
oliday e made ¶sand cars and not sand castles·
wit is kids.
Ë!   
  
  
ROLO

‡ Rolo can be s ared. But w en w en you ave


somet ing delicious to s are, you ave to t ink ard
w at to do wit t e last one
Ë* 
 
OLYMPUS

‡ In many categories, people do not know w ic


brand is t e best to buy. m ey look at someone t ey
can trust. W en t e camera market exploded, new
brands it t e market Olympus endorsed t eirs wit
David Bailey.
Ë*       Ä   Ä     

PEPSODENm

‡ All mot ers want t eir c ildren to ave strong and


ealt y teet . m ere is not ing more painful for a
mot er t an to see er c ild in pain.
Ë!Ä      Ä 
WHAm IS A
DISCRIMINAmOR ?
m e single most compelling reason for a consumer
to buy your brand
DISCRIMINAmORS

Can be based in
È Benefit
È Reason to believe
È Emotional alue
 
Ä  + 

AXE
‡ Insig t D ã     
‡ Discriminator D    
      

‡ Advertising Idea ,% ,ã     
Ä      'â   &
‡ Executional Idea ,-.
BRAND EXPERIENCE

Make t e consumer experience your brand


EXAMPLES...

‡ Was ing Liquid - Sout America


‡ Deodorant - Over ead Handle Bars in mrains/Buses
‡ Detergents - Stain Ambulance
‡ Pril ² Was ing mrain Windows

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