ADVERTISING MANAGEMENT

BBA -301
UNIT-2

Prof. Sudheer Kumar (DIMS)

SYLLABUS UNIT-2
 Unit – II: Public Relation and Publicity: Meaning of
Public Relation, Difference between public relations and
advertising, Role of Public Relations, Process of Public
Relation, Advantages and disadvantages of Public
Relations, Publicity, Advantages and disadvantages of
publicity.
PUBLIC RELATIONS
MEANING OF PUBLIC RELATIONS(PR)
 Public relations (PR) is the process of maintaining a
favorable image and building beneficial relationships
between an organization and the public communities,
groups, and people it serves. ... For this reason, PR is
often referred to as “free advertising.” In fact, PR is not a
costless form of promotion.
PUBLIC RELATIONS
 Public image makes up 63% of the value of most
companies today. When there’s a mishap or when the
company’s reputation breaks down, it affects the
company’s entire corporate existence and its affiliates. It
takes around 4 to 7 years to overcome a negative
reputation. Hence it has become important for 
a company to invest in good public relations strategies to
maintain a beneficial relationship with the public.
WHAT IS PUBLIC RELATIONS?
 Public relations is a strategic communication process
companies, individuals, and organisations use to build
mutually beneficial relationships with the public.

 A public relations specialist drafts a specialised

communication plan and uses media and other direct and
indirect mediums to create and maintain a positive 
brand image and a strong relationship with the target
audience.
 In simple terms, public relations is a strategised process
of managing the release and spread of organisation-
related information to the public to maintain a favourable
reputation of the organisation and its brands. This
process focuses on –
 What information should be released,

 How it should be drafted,

 How it should be released, and

 What media should be used to release the information

(usually earned or free media is used for the same).
OBJECTIVE OF PUBLIC RELATIONS

 The main objective of public relations is to maintain a

positive reputation of the brand and maintain a strategic
relationship with the public, prospective customers,
partners, investors, employees and other stakeholders
which leads to a positive image of the brand and makes
it seem honest, successful, important, and relevant.
FUNCTIONS OF PUBLIC RELATIONS

 Public relations is different from advertising. Public

relations agencies don’t buy ads, they don’t write stories
for reporters, and they don’t focus on attractive paid
promotions. The main role of public relations is to
promote the brand by using editorial content appearing
on magazines, newspapers, news channels, websites,
blogs, and TV programs.
 Using earned or free media for promotion has its own
benefits as information on these mediums aren’t bought.
It has a third-party validation and hence isn’t viewed
with scepticism by the public.
THE FUNCTIONS OF PUBLIC RELATIONS MANAGER
AND PUBLIC RELATIONS AGENCIES INCLUDE:
 Anticipating, analysing, and interpreting the public opinion
and attitudes of the public towards the brand and drafting
strategies which use free or earned media to influence them.
 Drafting strategies to support the brand’s every campaign
and new move through editorial content.
 Writing and distributing press releases.

 Speechwriting.

 Planning and executing special public outreach and media

relations events.
 Writing content for the web (internal and external websites).

 Developing a crisis public relations strategy.

 Handling the social media presence of the brand and
responding to public reviews on social media websites.
 Counselling the employees of the organisation with
regard to policies, course of action, organisation’s
responsibility and their responsibility.
 Dealing with government and legislative agencies on
behalf of the organisation.
 Dealing with public groups and other organisations with
regard to social and other policies of the organisation and
legislation of the government.
 Handling investor relations.
TYPES OF PUBLIC RELATIONS
 TYPES OF PUBLIC RELATIONS

 According to the functions of the public relations

department/agencies, public relations can be divided into 7
types. These are:
 Media Relations: Establishing a good relationship with
the media organisations and acting as their content source.
 Investor Relations: Handling investors events, releasing
financial reports and regulatory filings, and handling
investors, analysts and media queries and complaints.
 Government Relations: Representing the brand to the
government with regard to the fulfilment of policies like
corporate social responsibility, fair competition, consumer
protection, employee protection, etc.
 Community Relations: Handling the social aspect of the
brand and establishing a positive reputation in the social
niche like environment protection, education, etc.
 Internal Relations: Counselling the employees of the
organisation with regard to policies, course of action,
organisation’s responsibility and their responsibility.
Cooperating with them during special product launches and
events.
 Customer Relations: Handling relationships with the 
target market and lead consumers. Conducting 
market research to know more about interests, attitudes,
and priorities of the customers and crafting strategies to
influence the same using earned media.
 Marketing Communications: Supporting marketing efforts
relating to product launch, special campaigns, 
brand awareness, image, and positioning.
 Public Relations Examples

 Google's Fight Ebola Campaign.

 Paramount Pictures The Ring Publicity Stunt.

 Just Eat & A Sick Customer.

 Facebook Paris Support Profile Pictures.

 Builds Up The Brand Image.

 It's Opportunistic.

 Promote Brand Values.

 Strengthen Community Relations.

PUBLIC RELATIONS VS MARKETING VS ADVERTISING

 Public relations deals in communicating expertly drafted

messages using non-paid/earned media to build mutually
beneficial relationships with the public.
 Advertising, on the other hand, is a paid communication
message intended to inform people about something or
to influence them to buy or try something.
 Marketing is the umbrella under which all the divisions
dealing with creating, communicating, delivering, and
exchanging dwells. That is, PR is the subset of
marketing. Everything a PR department does is
determined by the marketing goals set by the
organisation.
 DIFFERENCE BETWEEN PR ,ADVERTISING ,MARKETING
Definition
Public Relations Advertising Marketing

Public relations is a marketing Advertising is the action of Marketing refers to activities a

tool of communicating expertly calling public attention to an idea, company undertakes to create,
drafted messages using non- good, or service through paid communicate promote, deliver,
paid/earned media to build announcements by an identified and exchange the offerings that
mutually beneficial relationships sponsor. have value for the customers. 
with the public.  

Driven by
Relationship driven Communication driven Company/Brand growth driven

Communication Two-way One-way Two-way

To communicate to the target

Identify and cater to the
To build a favourable relationship audience about a certain offering,
Importance customers’ needs to survive and
with the target audience. action, work, or other brand
thrive.
related information
ADVANTAGES OF PUBLIC RELATIONS

 Credibility: Public trusts the message coming from a

trusted third party more than the advertised content.
 Reach: A good public relations strategy can attract many
news outlets, exposing the content to a large audience.
Moreover, this medium can help the company utilise certain
organic touchpoints that are hard to capitalise on otherwise.
 Cost effectiveness: Public relations is a cost effective
technique to reach large audience as compared to paid
promotion.
 Better Communication: Public relations help the company
to communicate more information to the public than other
forms of communication media.
DISADVANTAGES OF PUBLIC RELATIONS

 No Direct Control: Unlike paid media, there isn’t a

direct control over the content distributed through the
earned media. This is the biggest risk of investing in
public relations.
 Hard To Measure Success: It is really hard to measure
and evaluate the effectiveness of a PR campaign.
 No Guaranteed Results: Publishing of a press release
isn’t guaranteed as the brand doesn’t pay for it. The
media outlet publishes it only if it feels that it’ll attract
its target audience.
IMPORTANCE OF PUBLIC RELATIONS

 With over 63% of the value of most companies

dependent on their public image, public relations has
become a very important topic today for numerous
reasons:
 Builds Up The Brand Image

 The brand image gets a boost when the target customers

get to know about it through a third party media outlet. A
good public relations strategy help the brand builds up
its image in a way it wants to.
 It’s Opportunistic
 Public relations strategies make the brand capitalise on
the opportunities. Google was in the news for donating
to Ebola. Facebook promoted LGBTQ rights. Coca-Cola
did a PR stunt against obesity.
 These opportunities even attract many influencers to
share the brand story to their followers.
 Promote Brand Values
 PR is used to send out positive messages which are in line
with the brand’s value and its image. This builds up the
brand’s reputation.
 Strengthen Community Relations

 PR strategies are used to convey that the brand is as much

part of the society as the target audience. This builds up a
strong relationship of the brand with the public.
PROCESS OF PUBLIC RELATIONS
Step 1: OBJECTIVES

Step 2: GOALS

Step 3: TARGET AUDIENCE

Step 4: CREATE A TIMELINE

Step 5: PLAN OF ACTION

Step 6: THE CAMPAIGN

PROCESS OF PUBLIC RELATIONS
 Step 1: OBJECTIVES
 Step 2: GOALS
 Step 3: TARGET AUDIENCE
 Step 4: CREATE A TIMELINE
 Step 5: PLAN OF ACTION
 STEP 6: THE CAMPAIGN
 Step 1: OBJECTIVES
 It is essential that you define and write out your objectives for
the public relations campaign or marketing plan. This will
allow you to determine how you will design the campaign and
the components that will make it successful. Objectives such
as creating and reinforcing the brands’ image, and informing
potential customers on the services the brand has to offer are
effective. Or, your objective may be to generate more sales or
even to get rid of negative publicity associated with the
company. Whatever the objectives are, it is important that they
are clear and achievable!
 Step 2: GOALS
 Goals assist in achieving the objectives that were set at the
beginning. In order for goals to be successful they need to be
S.M.A.R.T:
 Specific

 Measurable

 Achievable

 Realistic

 Time- bound

 Note: It is also important that the goals you have selected

align with the overall business and sales objectives of the
client.
 Step 3: TARGET AUDIENCE
 They key to any public relations campaign or marketing plan is to
clearly define who the target audience of the business is. This
consists of determining who you want the campaign to reach, and
what key messages you want to deliver to them. When defining
the target audience, it is best to be as specific as possible, such as
working out their gender, age, location and likes/dislikes.
 Step 4: CREATE A TIMELINE

 Creating a timeline for the public relations campaign or marketing

plan allows you to determine when each stage of the campaign
will be completed and how long each stage should take you to
complete. A timeline also gives the client an idea of what to
expect and how the campaign will be carried out. Your timeline
should also link with other marketing, business or sales efforts
that are being carried out by the client at the time of the campaign.
 Step 5: PLAN OF ACTION
 This includes developing and understanding the communication vehicles
you will use to send the key messages of the campaign to the target
audience. Delivering these key messages can be achieved through:
 Press releases

 Press conferences

 Interviews

 Newspaper or magazines articles

 Customer testimonials

 Television

 Radio

 Press interviews

 Events

 Note: It is a good idea to select more than one communication vehicle in

order to appeal to a wider audience.
 STEP 6: THE CAMPAIGN
 Once you have put everything in place, the campaign can
begin. The results of the campaign should be tracked
constantly to see whether goals and objectives are being
achieved and to determine whether the target audience are
receiving the key messages of the campaign.
 At the completion of the campaign, you should
communicate with the client and determine whether their
desired results have been achieved. This will also allow you
to determine whether the campaign was a success or not.
Evaluating the results will also provide an indication for
further campaign ideas and will allow you to consider
whether the original plan needs to be modified in any way.
 PUBLICITY
• Publicity
– Less effective than advertising because it offers limited
control of the message, timing and the media
– cannot be used to send a repetitive message
– But, Cheaper than advertising
– Often more credible to buyers
– Most useful in establishing credibility for providers of
professional services
– Can be used as a low cost alternative to advertising
WHAT IS PUBLICITY?

 What is Publicity?
 Publicity is the phenomenon of increased awareness and
coverage about a person, product or a service through media
leading to increased or decreased sales and revenue
depending upon the effect on the potential customers. It is
mostly a way to project your company or a brand in front of
the potential customer in a planned and structured manner
but publicity can be unplanned also and may lead to
expected or unexpected outcomes.
 Publicity generally gives the authority of an independent
voice. It may turn helpful in increasing the sales from the
potential customers. Publicity is not restricted to products or
services only but can be attributed to politics, entertainment,
arts, artists, documentaries etc.
 The cost associated with publicity is usually less as compared
to the other marketing activities like promotion and
advertising which cost sums of money for the people. Public
relations is the field which organizes the process of publicity
in a controlled way.
PUBLICITY CATEGORIES

 Publicity can be both positive as well as negative.

 Positive

 If a publicity event reinforces and improves the brand image,

it can be termed as positive publicity. Positive publicity
events are mostly planned and works in favor of the product
or service.
 Negative

 If it causes loss to the organization through increased

coverage and awareness, it can be termed as negative.
Negative publicity can be a result of some news or event
which didn't result in expected outcome. Many times, if a
person or company are in news for wrong reasons, the other
brands and products associated with them can suffer.
OTHER WAY TO LOOK AT PUBLICITY IS :

 Planned Publicity
 Publicists and PR teams plan proper publicity partnerships and
tie ups through interviews, product placements, campaigns etc.
 Unplanned Publicity

 Sometimes publicity can happen without the company

planning the same. It can be triggered through some news
article or something said in an interview. These days with
social media, there is a lot of information available and many a
times we hear that a certain thing has gone viral. There can be
multiple triggers leading to publicity of a person, company or
an event. These again can be positive or negative.
TYPES OF PUBLICITY
TYPES OF PUBLICITY

 Publicity can be of different types depending on the channels and methods

used. Below are the few types:
 1. News

 News coverage can help a brand a lot in increasing awareness.

 2. Press Release

 A press release published across various channels can again help in publicity.

 PR departments of organizations normally do timely press releases to inform

about various offerings by a company.
 3. Product Release

 New Product Release is an opportunity for an organization to do publicity. We

see a lot of stalls in exhibitions and trade events where people can see the
brand or the product and form an impression. If they like it, they may buy it.
In the modern world, people can create buzz on the social media through posts
and pictures.
 4. Emergency
 In an emergency event, a company can use its product
offering for publicity but they should be careful as being an
emergency event it is very critical for the product to be
beneficial to the public else can result in negative publicity for
the organization.
 5. Conferences

 Conferences can be used for publicity by organizations on

some particular theme or topic. Conferences can be good way
to do publicity given it gets good news coverage along with it.
 6. Events

 Events like conferences are used by companies to do Publicity

around a product or a service.
 7. Offers

 Various offers can be floated to publicize product or a service.

 8. Social Media
 With the rise in internet and smart phones, social media
has become one of the most obvious platforms for
publicity. Companies may do a planned publicity event
or there can be many instances of publicity done by fans
and followers. It may again be positive or negative.
IMPORTANCE OF PUBLICITY

 Importance of Publicity
 Publicity is quite important in gaining awareness about a
product, service or a person. It is similar to marketing
but the difference is that marketing focuses on selling but
it is only about awareness. It can prove to be very critical
in success of brands especially in the initial phase of
launch. We see lot of publicity happening during early
days of a brand or a product.
ADVANTAGES OF PUBLICITY

 Advantages of Publicity
 1. The cost of publicity is very less i.e. coming from an
unsolicited newspaper or through social media doesn’t cost
anything to the company.
 2. It ensures credibility as the consumers expect a significant
level of bias or exaggeration in the advertisements a
company produces about its services or products. However,
third-party sources, such as blogs, online reviews and
magazines are often considered less biased. This is
specifically true with trusted sources, such as longstanding
publication houses or well-regarded professional reviewers.
Publicity from non-affiliated parties can often seem more
trustworthy in the eyes of your targeted customers.
 3. Consistent publicity helps a company strengthen its
brand as it gives a company a way to prove its customers its
worth.
 4. Innovation is very important in increasing your reach and
building loyalty among the customers. If good reviews start
coming up for a brand it often build the other public
relations companies interested in the company.
 5. It open doors for more opportunities and help build
relationships with more number of high net worth
companies.
 6. It helps you go viral. Ads don’t go viral on their own
publicity help them. Word of mouth is a successful tool that
drives more business for a company.
DISADVANTAGES OF PUBLICITY

 1. Damage brand equity in long term because of bad publicity. It is

applicable for companies with health hazards and safety issues.
 2. Brand association will be damaged as changing the customer’s
perception is very difficult.
 3. Loss of trust

 Publicity Examples

 1. When new movies are about to be released, we see a rise of

publicity in the news about the movie and the star cast. There is a lot of
social media activity by the movie cast and crew. The objective is to do
publicity of the movie so that more people are aware of the release and
watch the movie.
 2. When a new car is launched in the market, we see the car in various
trade events and exhibitions available for test drive. This is also a way
through which publicity is done as this may lead to increased activity
on social media about the car which is good for the brand.
SALES PROMOTIONS
• Sales Promotions
– Good short term competitive tactic
– Help clear slow-moving or seasonal inventory
– Help generate quick cash flow, if required
– SP such as “Sweepstakes” or “Contests” can
be used to add excitement to advertising
– Not much value in terms of communication
– Do not build a long term image for the brand
 PUSH VS. PULL
STRATEGIES
• Push Strategy
– Spending major part of promotional expenses on
distributors and retailers

• Pull Strategy
– Spending major part of promotional expenses on
the consumer
 A COMPARISON OF PUSH AND PULL
PROMOTIONAL STRATEGIES
A. Push strategy B. Pull strategy

Manufacturer Manufacturer
Flow of
promotion;
Flow of mainly Flow of
demand personal demand
stimulation selling stimulation Flow of
directed to promotion;
intermediaries mainly
Wholesaler Wholesaler advertising
directed to
consumers

Retailer Retailer

Consumer Consumer
 PROMOTION
OBJECTIVES
• Communication Objectives
– To inform
– To remind
– To persuade

• Behavior Objectives
– To sell
– To take some action
 SETTING ADVERTISING
BUDGETS
• Percent of Sales
What is the percent of present or forecasted sales?
• Competitive Parity
Are we in line with our competition?
• Affordable Method
What can we afford to spend on advertising this year?
• Objective and Task
 MESSAGE
DECISIONS
• Message Execution
Theme and types of messages
• Message Structure
One-sided vs. two-sided, types of arguments
• Message Generation
Creative process of developing different message
ideas
THE LANGUAGE OF THE
MEDIA BUYER

 What It Means
 The number of different people or households
Term Reach exposed to an advertisement.
 The percentage of households in a market that
Rating are tuned to a particular TV show or radio
station.
 The average number of times an individual is
Frequency
 exposed to an advertisement.

Reach (expressed as a percentage of the total

Gross rating points(GRPs) market) multiplied by frequency.
The cost of advertising divided by the number
Cost per thousands (CPM) of thousands of individuals or households who
are exposed.
 SCHEDULING THE
ADVERTISING
Steady (“drip”) Schedule
-- Steady schedule throughout the year.

Flighting (“intermittent”) Schedule

-- Advertising reflects seasonal demand

Blitzing
Pulse (“burst”) Schedule
-- Steady and flighting schedules are combined
THE MEANING OF
BRANDS
 Brands are a means of differentiating a
company’s products and services from those
of its competitors.
 There is plenty of evidence to prove that
customers will pay a substantial price premium
for a good brand and remain loyal to that
brand. It is important, therefore, to understand
what brands are and why they are important.
 THE IMPORTANCE OF BRANDS
 McDonalds sums this up nicely in the following
quote emphasizing the importance of brands:
 “…it is not factories that make profits, but relationships
with customers, and it is company and brand names
which secure those relationships”
 Businesses that invest in and sustain leading brands
prosper whereas those that fail are left to fight for the
lower profits available in commodity markets.
COCA-COLA
 “If Coca-Cola were to lose all of its production-related
assets in a disaster, the company would survive. By
contrast, if all consumers were to have a sudden lapse
of memory and forget everything related to Coca-Cola
the company would go out of business.”

 Coca-Cola
 WHAT IS A BRAND?
 One definition of a brand is as follows:
 “A name, term, sign, symbol or design, or a
combination of these, that is intended to identify
the goods and services of one business or group
of businesses and to differentiate them from
those of competitors”.
 Interbrand - a leading branding consultancy - define
a brand in this way:
 “A mixture of tangible and intangible attributes
symbolized in a trademark, which, if properly
managed, creates influence and generates
value”.
 BRAND EQUITY

 “Brand equity” refers to the value of a brand. Brand equity

is based on the extent to which the brand has high brand
loyalty, name awareness, perceived quality and strong product
associations. Brand equity also includes other “intangible”
assets
such as patents, trademarks and channel relationships.
BRAND
IMAGE

 “Brand image” refers to the set of beliefs that

customers hold about a particular brand. These
are important to develop well since a negative
brand image can be very difficult to shake off.
BRAND
EXTENSION
 “Brand extension” refers to the use of a successful
brand name to launch a new or modified product in a
new market. Virgin is perhaps the best example of how
brand extension can be applied into quite diverse and
distinct markets.
BRANDING GIVES THE SELLER
SEVERAL ADVANTAGES

 Seller’s brand name and trademark provide

legal protection of unique product features
 Branding gives the seller the opportunity to attract a
loyal and profitable set of customers.
 Branding helps the seller segment markets.
 Strong brands help build corporate image, making it
easier to launch new brands and gain acceptance by
distributors and consumers.
IMPORTANCE OF BRANDING IN
ADVERTISING

BENEFITS OF BRANDING TO A BUYER

 Help buyers identify the product that they like/dislike.
 Identify marketer
 Helps reduce the time needed for purchase.
 Helps buyers evaluate quality of products especially if
unable to judge a products characteristics.
 Helps reduce buyers perceived risk of purchase.
 Buyer may derive a psychological reward from owning the
brand, IE Rolex or Mercedes.
BRANDS - BUILDING A BRAND

 What factors are important in building brand

value?
 Professor David Jobber identifies seven main
factors in building successful brands, as given next:
 QUALITY

 Quality is a vital ingredient of a good brand. Remember the

“core benefits” – the things consumers expect. These
must be delivered well and consistently. The branded
washing machine that leaks, or the training shoe that often
falls apart when wet, or a watch which needs frequent
adjustments will never develop brand equity.
 Research confirms that, statistically, higher quality brands
achieve a higher market share and higher profitability than
that of their inferior competitors.
POSITIONING

 Positioning is about the position a brand occupies in a

market in the minds of consumers. Strong brands have a
clear, often unique position in the target market.
 Positioning can be achieved through several means,
including brand name, image, service standards, product
guarantees, packaging and the way in which it is
delivered. In fact, successful positioning usually requires a
combination of these things.
 REPOSITIONING

 Repositioning occurs when a brand tries to

change its market position to reflect a
change in consumer’s tastes. This is
often required when a brand has
become
tired, perhaps because its original market
has matured or has gone into decline.
 COMMUNICATIONS
 Communications also play a key role in building a
successful brand. We suggested that brand
positioning is essentially about customer
perceptions – with the objective to build a clearly
defined position in the minds of the target
audience.
 All elements of the promotional mix need to be
used to develop and sustain customer perceptions.
Initially, the challenge is to build awareness, then to
develop the brand personality and reinforce the
perception.
FIRST-MOVER
ADVANTAGE

 Business strategists often talk about first-

mover advantage. In terms of brand
development, by “first-mover” they mean
that it is possible for the first successful
brand in a market to create a clear
positioning in the minds of target customers
before the competition enters the market.
There is plenty of evidence to support this.
LONG-TERM
PERSPECTIVE
 The need to invest in the brand over the long-
term is utmost essential. Building customer
awareness, communicating the brand’s
message and creating customer loyalty takes
time. This means that management must
“invest” in a brand, perhaps at the expense
of short-term profitability.
 INTERNAL
MARKETING
 Finally, management should ensure that the brand is
marketed “internally” as well as externally. By this we
mean that the whole business should understand the
brand values and positioning. This is particularly
important in service businesses where a critical part of
the brand value is the type and quality of service that a
customer receives.
 Think of the brands that you value in the
restaurant, hotel and retail sectors. It is likely that your
favorite brands invest heavily in staff training so that the
face-to-face contact that you have with the brand helps
secure your loyalty.
AN EFFECTIVE BRAND NAME
● Is easy to pronounce
● Is easy to recognize and remember
● Is short, distinctive, and unique
● Has a positive connotation
● Reinforces the product image
● Is legally protectable
 BRANDING STRATEGIES
Brand No Brand

Manufacturer
Private Brand
’s Brand

Individual
Individual Combination
Family Brand Family Combi-
Brand
Brand Brand nation
MANUFACTURERS’ BRANDS
VERSUS PRIVATE BRANDS

Manufacturer The brand name of a manufacturer.

s’ Brand

A brand name owned by a

Privat
wholesaler or a retailer. Also
e known as a private label or store
Brand brand.
TYPES OF BRAND
 There are two main types of brand – manufacturer
brands and own-label brands.
 Manufacturer brands
 Manufacturer brands are created by producers
and
bear their chosen brand name. The producer is
responsible for marketing the brand. The brand is
owned by the producer.
 By building their brand names, manufacturers
can
gain widespread distribution (for example by
retailers who want to sell the brand) and build
customer loyalty (think about the manufacturer
brands that you feel “loyal” to).
 PRIVATE LABEL
BRANDS
 Own-label brands are created and owned by businesses
that operate in the distribution channel – often referred
to as “distributors”.
 Often these distributors are retailers, but not exclusively.
Sometimes the retailer’s entire product range will be
own- label. Own-label branding – if well carried out – can
often offer the consumer excellent value for money and
provide the distributor with additional bargaining power
when it comes to negotiating prices and terms with
manufacturer brands.
ADVANTAGES OF PRIVATE BRANDS
 Earn higher profits
 Less pressure to mark down prices
 Ties customer to wholesaler or
retailer
ADVANTAGES OF
MANUFACTURERS’ BRANDS

 Develop customer loyalty

 Attract new customers
 Enhance prestige
 Ensure dealer loyalty
INDIVIDUAL BRANDS VERSUS FAMILY BRANDS

Individual Using different brand names for

Brand different products.

Marketing several different

Family
products under the same
Brand brand name.
 BRANDING POLICIES
 First question is whether to brand or not to brand.
Homogenous products are difficult to brand Branding policies
are:
 Individual Branding: Naming each product differently P&G,
facilitates market segmentation and no overlap.
 Overall Family Branding: All products are branded with the same
name, or part of a name, IE Nokia, promotion of one item also
promotes other items.
 Line Family Branding: Within one product line.
 Brand Extension Branding: Use one of its existing brand names as
part of a brand for an improved or new product, usually in the
same product category.
75% new products are brand extensions!!
 1. COCA-COLA

 $67,000 million
 Based in U.S.
 Flagging appetite for soda has cut demand for Coke, but the beverage
giant has a raft of new products in the pipeline that could reverse its
recent slide.
2.MICROSOFT

 $56,926 million
 Based in U.S.
 Threats from Google and Apple haven't yet offset the power of its
Windows and Office monopolies.
 3 IBM

 $56,201 million
 Based in U.S. Having off-loaded its low-profit PC business
to Lenovo, IBM is marketing on the strategic level to
corporate leaders.
4.GE

 $48,907 million
 Based in U.S. The brand Edison built has extended its reach from ovens
to credit cards, and the "Ecomagination" push is making GE look like a
protector of the planet.
5.INTEL

 $32,319 million
 Based in U.S. Profits and market share weren't the only things
slammed by rival AMD. Intel's brand value tumbled 9%, as it
loss business from high-profile customers.
6.NOKIA

 $30,131 million
 Based in Finland .Fashionable designs and low-cost models
for the developing world enabled the mobile phone
maker to regain ground against competitors.
7.TOYOTA

 $27,941 million
 Based in Japan. Toyota is closing in on GM to become the world's
biggest automaker. A slated 10% increase in U.S. sales this year will
help even more.
8. DISNEY

 $27,848 million
 Based in U.S. New CEO Robert Iger expanded the brand by buying
animation hit-maker Pixar and beefing up digital distribution of TV shows
through the Internet and iPods.
SUGGESTED READINGS
 1. Advertising and Promotion George E. Beich &
Michael A. Belch. T.M.H.
 2. Advertising Management, Concept and Cases
Manendra Mohan,
 TMH

 3. Advertising Management Rajeev Batra, PHI