Advertising and Branding

TOPIC 1 – Foundations of Brand Management

What is the brand?- the image of a company- way of establishing differences- it provides information and a lot of meaning

Is something designed to identify stuff, is about differentiation, about creating image

A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

From products to brands- Products and services have a “core layer”: all the things you need in order to make the

product- Expected layer: things the product could exists without, but customer expect it (the

phone now has all this extra stuffs)- Augmented layer: customer don’t expect them but there are a powerful way of

differentiation (car: extended warranty)

When the brand is really strong it represent an augmentation, a powerful source of differentiation ex: if you are attracted by iPhone you are going to wait for the next one iPhone 6

Sources of differentiation are typically functional or emotional. Some brands may be differentiated among rational and tangible elements (Gillette); but other brands among emotional elements (Coca-Cola, Chanel)Never take maturity of a market as granted, there is always an opportunity to innovate.

Branding commoditiesBanana product is very little you can do with the product, but yet even in this industry there are company that differentiate itself, such as Chiquita. Even in category that are commodities there are some leaders.

How much would you pay for a toilet?How can you differentiate toilet paper? They repositioned their product as part of a bathroom (colourful) they managed to create a brand that is designed around a very different positioning. In pretty much any industry, if you have a good idea and create a brand that is different from customer you can succeed.

Never take maturity and commodization of a market as granted, there is always an opportunity to innovate.

De Beers: A diamond is forever

They came up with an idea that is the engagement, that a poor guy buys a diamond for this girl in order to make her say yes.“A diamond is forever” people will buy only one, and that is not good with salescreate occasioans is what they did anniversary

Why do brands matter?The customer’s perspective: they benefit customers, we need themThe firm’s perspective: they are useful for the company

The customer perspectiveIs a risk reduction mechanism, they simplify purchases for customers, we like brands because they make things easier for customersSelective attention/retention we filter out all the messages that we don’t like or don’t want to consider. We forget it really quickly, because we don’t care less.

The consumer decision making process1. Need recognition2. Prepurchase search3. Evaluation of alternatives4. Purchase5. Postpurchase evaluation

We have a need, we look around, we evaluate alternatives, we purchase and then we make a post purchase evaluation we need to increase the experience the customer have evoke set: list of acceptable brand minimize the risk

Experience and brandsBecause the brand carries a promise, then what it does is to create a relationship to make customer increasing the experience. In Lugano we say 3000 messages every day, and we don’t pay much attention at them; we also develop the mechanism of selective attention and selective retention. If you will buy a laptop, it happens that then you will see laptop advertising everywhere.Ex: Cobra beer

Purchase risksBrands reduce risks, they tae away some risk associated with the purchase:

- Functional: will the product work? It is performing well? making an assumption on the brand

- Physical: is dangerous? Are you more likely to put something on your face for a known brand or not?

- Financial: how much will cost to me if the products fail or doesn’t work?- Social: the choices of brands is driven by a desire to minimize social risks; choosing

brands that do not exposing to risk - conform within a specific social group, fitting within a social network

- Time: if something goes wrong, then you need the time to rectify it back

Video Apple 1999The brand was about reducing functional risk, very important business situation that is socially exposed Apple was very much about minimizing functional, social an time

Video 10-15 years later – AppleThey are stressing very much on social riskA brand that has consistency over time and within the message is a key element.

Properties of goods and servicesSearch attributes: assess the quality very easily; ex: penExperience attributes:you can’t assess the quality of the product; you first have to buy it and try it; others brands are much more en the experience attributes; ex: a restaurant meal, after the meal I can assess if it was good or notCredence attributes: even after you have experiences the product or services you can not still assess the quality, for example: the doctor you have to believe him. In this case, the brand is the only element of differentiation.

Brands and product qualityBrands become increasingly importance when we move away in these attributes. If we have experience goods or credence goods sometimes the brands is the only assets that is going to differentiate the product. Sometime the brand is the only promise to differentiate.Brands are really important for services.

The firm’s perspectiveIs important for firm’s when they are able to use the brand to differentiate the company. The brand gives unique differentiation, unique features and it is a financial guarantee.

Brand value and market capitalisationValue brands financially. Every year are established the top 100 brands. 2005: Coca Cola valued at 67.5 $billion is the 64 market capitalization

Microsoft valued at 59.9$b McDonald’s valued at 26$b has a 71 market capitalization it’s all about the brand!

What can be branded?Retailers and distributers: retailer and distributors start to brand their own productsOnline products and servicesPeople and organisationsIdeas and causes also can be branded: no-smoking campaigns

The concept of brand equity- The brand equity concept stresses the importance of the brand in marketing strategies.- Brand equity is defined in terms of the marketing effects uniquely attributable to the

brand.o Brand equity relates to the fact that different outcomes result in the marketing of a

product or service because of its brand name, as compared to if the same product or service did not have that name.

Is trying to create a difference in our mind. What is really at the core of a brand strategy is starting with the brand and then using them to add benefits for customers.

Brand equity: Is the differential effect that we create through the brand

For example: the price premium is given by the brand equity. A good example is the Monroe’s dress (right price was 200-300$, but it was sold at a higher price, something like 1.3 mil) this is thanks to brand equity; is the dress didn’t have been associated with Marilyn it wouldn’t not cost so much, that’s the brand equity.

Strategic brand managementIs about building, measuring brand. Brand equity could also be negative.

- Strategic brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity.

- The strategic brand management process involves four key steps:1) Identifying and establishing brand positioning and values2) Planning and implementing brand marketing programs3) Measuring and interpreting brand performance4) Growing and sustaining brand equity

Customer-based brand equityTwo questions often arise:

1. What makes a brand strong?2. How do you build a strong brand?

- To answer these questions, we are going to adopt the Customer-Based Brand Equity model- Customer-based brand equity is the differential effect that brand knowledge has on

consumerresponse to the marketing of that brand.

The value of a brand really resides in the mind of a customer.It’s really about creating the differentiate effect, about creating knowledge.

Example of customer-based brand equity: blind and named product testBrand A has brand equity.

Blind beer taste testsBlind tests: lot of couple of beer, and the second time they drink beer with labels.

When they did know what they are drinking the differences are always very clearly positionedWhen they didn’t know what they are drinking it shows that these products are much more similar and there is no differentiation in this situation you can’t differentiate you product

Video CarltonIt works on:

- increases awareness of the brand (share among social networks maybe)- it creates an image for the brand – young, dynamic…

Case Study: A Rose by Any Other NameWhat’s the best marketing strategy for Rose Partyware?

- relationship with customer allows to brings the strength- branding decision is not a technical decision, branding is a strategic decision

Source of brand equityA brand will not survive when it’s all about knowledge, but there are some exceptions such as ice-cream. Building a strong relationship is fundament, a branding decision is not a technical one, it is a strategic decision instead.

You need two things to make a brand really strong: - high level of awareness and familiarity (they have to know a lot about it)- it is also important to have a strong and unique brand associations the brand must

have a meaning strong enough for customers to care. Typically strong brand need both things

Two key elements for brand awareness: - brand recognition (logo) being recognized as a brand- brand recall (given the product category, does this brand come to mind?)

If we have both, then there will be some advantages, such as learning, evoke set and choice.

If we have recognition and recall we can have all the follow advanatges:- learning advanatage- choice adavantage- evoked set advantage

Outpost.com - VideoMouse being launched against the board not positive association they trying to achieve awareness its purely an ad driven by desire to have recognition

Brand image- Strong, favourable and unique associations with a brand- There are many means through which these associations may be made- There are also many sources of associations

We have to be well known, but we have to be well known for positive association and not negative.there are many means through which these association may be made: advertisement, social media, WOM

Topic 2 – The brand equity pyramid model

The brand equity pyramidThere are some steps to do sequentially in order to have a strong brand:The first step is to build the identity of the company, once customers knows who you are then the second step is to define the meaning (feelings emotions) that the company wants to have in customer minds, the third step is the response and the fourth is to build a relationship.

1. Identity: salience dimensions- Depth of brand awareness: how much I recognize the brand? What brand comes to

mind when you think about this special category- Breath of brand awareness: is not just how much we know the brand, but when the

brand comes to our mind (in the appropriate occasions and on the right time). we need both of these

2. MeaningStart to communicate who you are and the meaning of the brandThe meaning could be:

- Rational - Emotional the fact that we feel in a certain way when we drink coca-cola is not

accidental

Marlboro is a very strong brand, but if you going back in the 40 and 50 you will notice that was a brand that targeted woman after that they reposition the brand for man

Bentley had the last word

3. Response: feelings dimensionsThe brands need to know from the very beginning what kind of feeling to transmit to customer, and this could be:

- warmth- fun- excitement- security- social approval- self-respect

Feelings and Advertisement- Marketers are interested in changing consumers’ perceptions of the usage experience

with the product- Thus, they often use transformational advertising:

o Advertising that associates the experience of using the brand with a unique set of psychological characteristics which would not typically be associated with the brand experience to the same degree without exposure to the advertising

Can leverage the following elements:- User image- Brand image- Use occasion- Generic-transformational

Informational advertising Transformational advertisingUser image: the kind of guy that buys a Bentley is that one on the couch, Generic-transformational: transformational advertising to promote and entire category to promote a specific brand

Twist adv user image advertising; it’s about communicate the kind of personAudi Adv brand image: this is a very valuable modelMilk Adv transformational messages

4. RelationshipBuild resonance, when we build relationship with customerAttitudinal attachment or loyalty don’t switch to another brand because you love the oneSense of community how they connect around the brand the customer

Depending on the business you are in, then you would go for the left/right of the pyramid. For example, in a b2b market you would opt for the left side of the pyramid. In any case the output is always the same: building relationships.

The idea has to be visible and consistent in terms of communication, behaviour, environment and products and services. The idea defines the entire experience of customers.

Beyond brands: lovemarksLovemark there are some brands that are some brands, they connect rationally with customer, but other brand connect with customer in an irrational way that are love marks.

- A different way of looking at strong brands (Saatchi & Saatchi)- Lovemarks are developed through:o Respect: the consumer decides whether something is a Lovemark, and the consumer

needs to respect that ’something’ firsto Mystery: great stories, past, present and future; tapping into dreams, myths, icons,

and inspirationo Sensuality: sound, sight, smell, touch, and tasteo Intimacy: commitment, empathy, and passion

Mere products command neither love nor respect.Fads attract love, but without respect this love is just a passing infatuation.Brands attract enduring respect, but often without love.Lovemarks command both respect and love.

Anatomy of a strong brandThe best brands appeal both to heart and headNeed reason, thinkDesire emotion, thinkCustomer want to be affected by the reason but at the same time it wants to be emotionally affected we compromise on this two sides

LovemarkHigh love brand engage the emotions

How do we appeal to both sides?

The great ideaEvery great brand starts with a great idea.It doesn’t have to be complex, and it doesn’t have to be 100% unique… You just have to own it, and it has to be integrated throughout everything you do!It something that begins with an idea that doesn’t supposed to by sophisticate! Starbucks: third place; is not about coffee but about third place, a place where to go and hang out Orange I always be about optimism; “I have look at all the names in the telecommunication and they were all boring, and then they came up with the idea that future is orangeRitz-Carlton ladies and gentlemen serving ladies and gentleman3M idea of innovation

What matters is the fact that the idea must consistently be implemented around the business

The idea defines the experienceThe idea it has to be visible in the communication strategy (in how we advertise and communicate with customers), it has to be linked to the environment (place in which business takes place), and also in products and services.

Ex: Apple: think different, the communication strategy was all about thinking differently, products and services are different from the others, they actually are boring products, but they turn them around: innovative, design and emotional side of purchase.

Ex: Illy: coffee is not a drink, but the idea of a lifestyle (meetings are done in bars with a coffee) main office: big bar in the office – meetings don’t take place in meeting room but in the bar, over coffee because the idea is that coffee is not just something that you drink! It’s visible in the environment, around the business; is part of educating people about product

Exercise: Ray ban “Never Hide”, stand out from the crowd, it is all related to the coolness and exclusiveness, this is also shown by the fact that the product is often used in movies and they also use famous people to advertise the product. Also the communication strategy is related to the idea of coolness. Also the products are very innovative, they have different designs and models, which are pretty unusual.

Bp reinvented British petroleum intro beyond petroleum – logo has a more friendly image! Offices look really environmentally neutral! take the idea and connect with it once you take the idea is important to integrate it in everything the company does.

Cigarettes it’s toasted; so is not uniqueness of idea, but to integrate the idea in everything you do

Nike Just do it; performance, innovation and not just for professionals but for everyone

New Coke Case Studyo Using the brand equity pyramid, explain how Coca Cola built its brand equity.o What exactly are the meanings associated with Coke? How were they developed?o What was Pepsi’s strategy in competing against Coke’s “meanings”?o What alternative options did Coke have to deal with Pepsi’s challenge? What would you

have done? What do you think Coca-Cola did wrong?

TOPIC 3 – Brand positioning

Brand positioning- The specific image of a company’s offering in the minds of consumers, relative to

competing offerings- Marketers attempt to “position” their products in a particular way in the minds of

target markets- It’s about finding the appropriate “mental location”

Customer have a sort of mental map - What is the perception, the image that we want to associate with our brand?

Positioning examplesWal-Mart – low purchases, one-stop shopStarbucks – quality, menu varietyVolvo – safety is something not casual but it has been built carefullyPositioning goes above the product itself, it can really determine differences in the mind of customers

Patek Philipps something that you buy not because you want to know the time, but it’s something of family heritage; is staying with the family for a long time, it’s a prestigious item!

Rolex the positioning is quite different; it’s for successful people the Rolex watch (Federer) you’re going reward yourself when you achieve something; it’s something you buy to reward yourself because you deserve it !

Positioning and perceptual mapping- A visual tool to portray perceptual differences among brands expressed by consumers- Highlights distinguishing position from the competition- Driven by dimensions valued by customers- Example: the US car market (selected factors and brands)

Used to communicate positioningIt’s useful to identify strategic groups (groups of brands closest)Useful to identify market gapsUseful for repositioning

Establishing brand positioning1. Define the competitive frame of reference clear about who we are against and who

we are going to target2. Define the basis of positioning:

o POF (point-of-difference): things that you want to stand out (safety) dimensions that you truly want to differentiate from competitors

o POP (point-of-parity): we need to establish certain dimension on which we match the competitors category POP: convince that they belong to this category competitive POP: POP you develop, not because you must, but to destroy the competitive POF!

Challenges in establishing POPs and PODs- Many of the attributes or benefits that make up the POPs and PODs are negatively

correlated- But consumers often want to maximise both attributes and benefits- The best approach is to develop a product that performs well on both dimensions

The problem is that when we communicate a POD, automatically we are saying some negative correlation Ex: our food is tasty, but in the meantime we are saying that our food is not very healthy. Another example is that if we say that our product is cheap, we are also saying that our product has not a high quality. The best solution is to develop a product that performs well on both dimensions.Example – Swatch: manage to take two negative correlation: low price and high price / swiss price and low priceOther solutions:1. Different adv. Campaigns → separate the attributes2. Use the brand equity of another source→ borrowing the association that people make

with an entity3. Show customers that they are wrong about the relationship→

Examples:Airlines: is not enough to say that they are safety, because safety is not a POF, is something that airlines must have!

Saabtry to overcome the POD of Volvo, but it didn’t work because it didn’t first establish his own PODVolvo is highly positioned with this idea of safety, and it has no

There is always some kind a negative correlation with one aspect.

Overcoming the problem of negatively correlated POPs and PODs through advertisingThree approaches are available, listed in increasing order of effectiveness (but also difficulty!):

- Separate the attributes ex: use two different marketing campaigns- Leverage equity of another entity ex: link to any entity that possesses the right kind

of equity – borrow the association- Redefine the relationship ex: convince customer that is no negative correlation;

show customers that they are wrong about the relationships

Apple adv - The power to be your best the machine is what allows you to do stuff, and when you do those things to the machine you have real power they trying to redefine power! They trying to reinvent the negative correlation between user friendly (which apple was positioned) and power

If USI were:- a car Audi A1- something to drink: Aperol - an animal: a bee

Usually the more similar are the responses the more clearly is positioned a brand.

The Brand Spirit wheelIf you were a person, who will you be? They using metaphors to think about positioning.They are using metaphors to think about positioning answering some questions about what the brand would be if it was a person, aroma, etc.

Defining and establishing core brand associations and brand mantras- Often, brands span multiple product categories and have multiple positionings- Marketers will thus want to define a set of core brand associations- They may also synthesise the core brand associations to a core brand promise, or

mantra

Establishing core associationAssociations are all those words, concept that we want to associate with a brand, and those has to be very clear

Bran mantras- An articulation of the “heart and soul” of the brand- A short phrase that captures the irrefutable essence or spirit of the brand positioning- Two main audiences:

o Internal marketing partnerso External marketing partners

Three words typically that defines the essence of a brandDisney: fun, family, entertainmentMcDondald’s: food, folks and funYou start by thinking about the ultimate output, the functional side of the brand (food), then the descriptive side (folks) and finally the emotional side(fun).

We start with the last word – Nike is about performance and then we find the other two words – authentic and athletic

Swatch case Study1. The better the swatch the more jewels it contained, it was considered as a financial

investments, quality, status, prestigeSwiss high end watches – Marketing Mix

- Product:- Price: high- Channels. Full pages- Place: jew

is a high involvement purchase decisionTimexProduct: durable, ruggedPrice: cheap

product Price Channels/adv Place What it is?SWISS HIGH END WATCHES

high Full pages jewelry Is a Jewel

TIMEX Durable, rugged

cheap Torture testTraditional low cost ads in magazines

Is a time telling tool low involvement something that you buy infrequently

SWATCH Fashionable design, colours,

LowFixedSimple (50-60)

Non conventional

Unconventional

Fashion accessory Frequency redundant purchases Younger customers

Japanese PreciseAffordable jewel

low Traditional Affordable jewelry maker

Affordable jewel

They completely change the rules of the game. They emotionalized something that was functionalThey achieved the use of the marketing mix in order to create a new category: swatch!It was a combination between the jewellery market and the tool market, squeezing the swatch product in between and therefore filling a gap that was present in this kind of business.

2. Low-cost but Swiss made, new design to watches and not anymore seen as jewels, and the people don’t anymore have one only swatch but multiple, which they can switch as they prefer They managed to combine these two aspects: a relatively cheap watch, but trying to maintain the Swiss quality and tradition, adding the emotional side: they changed the focus from quality materials to design. (rolex vs swatch)

3. In swiss there was no watches below $100 so they firstly positioned their product in a perfect wayPrice: below 100$Product: they hired new designers from Milan to create the design of the swatches, and they carefully choose among these designsThey are selling an emotional product, a product that you can bring all the day with you, it was not a commodityPlace: non-traditional points of purchase Veggie Swatch line was sold in fruit and vegetable marketsPromotion: sponsorship to celebrity endorsement, special events and product placements, Swatch Collector Club – Swatch Street Journal

4. Cruciani bracelets: Italian company that has created low priced bracelets with the made in Italy label high quality. They have changed from rational to emotional product. Zara is another good example, or Ikea and Apple.

Speech – Brand experience“Brand experience is a summary of all touch-points between a brand and its respective mark”

All these touch points have to be consistent with the promise of the brand.

The experience is something that starts before you buy something. Instead of thinking, we try to see them dynamic particulars moving through a certain experience at the company.

MOO CompanyLargest print shop in the world even since the beginning they have something more.Good brand experience starts when something goes wrong.

Box of moo cards very innovative

Two touch points: email and packages (box) we now have bigger amounts of touch point that company have in the 90’s. We can now actually track every information about the brand

Right now is much harder to keep you customer than before! advertising becomes a constant cost of acquiring new customers

Brand touch point matrixAll the touch points have to be consistent about a certain brand

Just-eatStart 9 years ago and today 24% of the food is managed by this company.

ABB created a new experience, but not for customers, but for people that want to rent their flats. PICTURES: the first structure of their proprieties is to make a simple flat a beautiful flat to rent Personality

Growth hacking!

Booking Ad they promise you to find exactly what you want

TOPIC 4

Criteria for choosing brand elementsAll the different elements that we want to communicate about our brand. MemorabilityMeaningfulness does it make sense?Likeability awareness; associations strong, favourable, uniqueTransferabilityit has to be transferable; ex:amazon can be taken in all areas, whereas “book.com” noAdaptability can you increase the relevance, the credibility?Protectability can I protect the brand in two ways: 1)from the competition 2)intellectual – legally trademark the brand

Options and tactics for brand elementsTo satisfy all the criteria just discussed, it is preferable to use multiple brand elements:

1. Brand names2. URLs3. Logos and symbol they are more important than just the name; the swoosh of Nike is

such a powerful visual cues4. Characters Michelin mans increase likeability and memorability5. Slogans good for likeability, the increase the relevance of the brand6. Jingles music, sounds7. Packaging apple does good branding also in its packaging

A good brand name probably helps to sell; it’s also possible that with a bad brand name you can also sell good.

Some Unfortunate URLsThese brand are likely to gain attention but there may lead to negative associations with it.

LogosMore people like Motorola when they are exposed to the logo than only to the name the logo increase the brand equity of the name.Texas instruments: the logo is damaging the brand because less people like the brand when they see the logo of Texas instruments.

Setting communication objectives and tasksOnce we have used all the elements to increase brand equity how do we use communications?All communications try to do three things: inform, persuade or remind or a combination of these elements→ in order to push customers into the adoption process that starts from the recognition of a need to the confirmation stage (did I make the right choice or not?). Why is it important for us? Because I need to be aware in which stage my customers are, and then depending on where they are I will have to adapt in terms of communication (informing, persuading or remanding → each of those elements are used in different stages).

Any advertising we see will remind to:- Inform- Persuade- Remind

Any communication objective tries to push the customer in the adoption process. Cognitive stage: customer are processing information Affective stage: start to develop preference, it becomes more an emotional stage, start to

develop an interest Behavioural stage: customers decide to buy

At what stage of consumer adoption are my customer? Company need to know in what stage they are; and depending on where they are there I will adopt a special communication objective.

AIDA model An important model is the AIDA model, The idea is that depending on the consumer adoption stage where customer are and depending on communication objectives, you will adopt a special communication task.If customer are in the cognitive stage, then the advertising should be an advertising that gains their attention.If customer are in the affective stage, then the advertising should be more persuasive and should gain the interest and the desire of customers.

- Virgin AtlanticBuilding awareness about the fact that soon it will be a virgin Atlantic airline in Dubay.

- ForkFullIt’s a rude gest in a funny contest they trying to achieve interest

- Quick-GripAffective they are taking the old product and comparing it with the new one they trying to persuade

- Car

Combination of affective and cognitive

Designing the message

How do we select a message? There are two ways:

Elaboration likelihood modelWhat are the risks? How do frequently people buy these products?Involvement of customers depending on the process itself. Involvement depends on two things:

1. Purchase risk financial, social, time, physical and functional – The higher the risk, the higher the level of involvement

2. Frequency of purchase – if I buy something frequently level of involvement goes down, if I buy something infrequently than involvement goes up

If customer are highly involved in the process, then use a central route to persuasionIf customer are lowly involved in the process, then use a peripheral route to persuasion

- Central route: is centred around the product more rational- Peripheral: little about the product ( breakfast, there is little about the product, you

rather see kids and families have breakfast together) more emotional

Transformational / informational- Negative purchase motivation: if I buy something to remove a problem; ex: headache

pills central route- Positive purchase motivation: buy something to obtain a pleasure (Ex. perfume

Chanel, car) peripheral route

Transformational advertising is very similar to the peripheral advertisingInformational advertising is very similar to the central advertising

CASE - Mountain Dew What decisions criteria you think are important in evaluating a brand’s advertising?Develop a tool to assess advertisements

Super Bowl Type Advertisng- The Super Bowl is the most widely viewed annual television event- Audience size is typically well in excess of 100-120 millionAmericans- Airtime can cost more than $2 million per 30-second spot- It seems to work for established ads, and for new one it does not work good.

- Advantages:o Extensive reacho Low cost per customer (estimated around $0.01 per person)o Access to a difficult key demographic (males under 35)o Puts the brand “among the top players)o Has worked well in the past (Apple’s 1984 ad)o May improve quality perceptions of the advertisero Some evidence of a link to stock returns

- Disadvantages:o Inefficient: reaches people outside the target marketo Repeated and more targeted advertising may be more efficient ando effectiveo Organisational pressure to win the best ad award (and hence may causeo goal divergence)

Non-traditional marketing approaches- Advertising has traditionally been the centre of marketing campaigns- But current trends suggest that the traditional advertising model is in decline…o Loss of control over traditional advertising mediao Democratisation of content and file sharingo Personalisation of scheduleso Fragmentation of audienceso Rising cost of advertising

- As a consequence, advertisers might need to consider more and more non-traditional marketing strategies and tools

BMWWhat is the strategic significance of the Z3 launch for BMW?They are adopting both push/pull strategies dealersHow can we tell that is a success?

Translating awareness into action

The problem with non-traditional marketing is that is difficult to translate the awareness into action. Non-traditional approaches are good for getting people excited, but then you need to rely on traditional advertising in order to make people purchase (action) → combination of the two. Non-traditional marketing is very much replacing traditional advertising, but it is not replacing completely the traditional one, also because you can’t measure the outcome/results.

Advertising is certainly changing- Brands are increasingly relying on new tools to advertise to customers- 1 in 5 advertising Euros in Europe is now spent online.- Despite the continued weak economic conditions across Europe and globally, Europe’s

online advertising is grew 14.5% year-on-year to a market value of E20.9bn in 2012. By comparison the overall European advertising market - excluding online - grew at just 0.8% in the same time period.

What are brands doing online?Organisations have now a large range of opportunities available to advertise online. These include:1. Display (banners)2. Games3. Mobile4. Social5. Video

1. Display advertising- Online display advertising is the meat and veg of online marketing.- Online displays are useful primarily for three objectives:

o To deliver brand messageso To immerse consumers with interactive experienceso To generate a direct response from consumers

2. Games advertising- One of the most dynamic and fast-growing disciplines within the online landscape.- Placing advertising within a gaming environment and using bespoke games to promote

a product or service.- IAB research shows 80% of the UK population play games regularly.- For advertisers, gaming offers a large, growing and highly engaged audience.

Take a look at this example:http://www.youtube.com/watch?v=4ba1BqJ4S2M

3. Mobile marketing- Fast becoming the central focus of many media plans.- As awareness and understanding grows, advertisers are increasingly waking up to the

potential of mobile.- In 2012, mobile advertising was worth in excess of £200 million, up 157% from 2011.- The range of advertisers using mobile to benefit their brands is also becoming broader

as more mainstream brands from sectors such as finance and consumer goods are investing on mobile.

Smartphones reach a tipping point Today you can not have an internet campaign, but you have to have a mobile campaign too.

Today creating a Fb pages doesn’t work anymore, but is important to engage customer in more sophisticated and creative way, in order to interact, to spend time with the brand.

4. Social media marketing- Social networks now account for a quarter of time spent online in the UK.- Social media encompasses a vast range of activities: social networking, blogging, word

of mouth, content dissemination, user generated content, crowd sourcing, interactive advertising and more.

- Social media is broadly split into three areas:1. Paid, such as advertising on a social network2. Earned, such as a genuine blogger review of a new product or serivce3. Owned, a brand’s official page in a social network

Focus on the exchangeEngaging customers in more sophisticated and creative ways may be the best way to capitalise on networking sites.Any means that allow information and brand elements to be shared by users represent a new powerful opportunity for marketers. let your customer participate!

5. Video marketing- Online video advertising is one of the fastest growing advertising formats in the world

and is becoming a key way to build brands.- The last adspend report shows an explosive growth of 91% year on year meaning that

the sector is now worth nearly £60 million.- A recent survey of over 160 media buyers found almost three quarters expected their

online video advertising spend to increase by 25 per cent before Q4 2012 (WebTVEnterprise: The UK Online Video Advertising Market - 2012).

TOPIC 5 – Corporate brand advertising

Chevron Case StudyShould Chevron invest more money to rectify their brand image problem within groups of people whose attitude seems not to change?

Corporate image advertisingThere are two broad types of advertising:

- Product advertising:Includes pioneering, competitive, comparative and reminder advertising

- Institutional advertising:Corporate image advertising is a type of institutional advertising, where communication concerns the entire business, as opposed to a specific product, and aims to

Value od C.I.A- Evidence has shown that:

o Public opinion can be very effective in determining the success of a company or producto A good public image makes the business more profitable

- Companies invest heavily in C.I.A.:o Sprint and its Plant a Tree initiativeo McDonald’s and its charity programso P&G and anti-drugs campaigns

TOPIC 6 – Leveraging secondary brand associations

Leveraging secondary brand associations- Brands may be linked to other entities that have their own knowledge structures in

consumer’s minds.- Because of these linkages, consumers may assume that the same associations of the

secondary entity apply to the brand- Thus, the brand can borrow some brand knowledge and equity

Secondary sources of brand knowledge

A lot of sources of brandy equity where you can tap into it ex “people” =Steve jobs or “country places” =Swiss design or made in china or “channels” = you use brand equity of another company where you sell your products (example manor or Aldi) or “Causes” = work with a non-profit organization, such as breast cancer foundation

Celebrity endorsement Employees Steve Jobs and connection with AppleOther brands brands in allianceIngredients brand If you have a brand,Extensions Apple iPod was useful to build the equity of the iPhoneCountry iPhone designed in California, Made in Italy about fashion, Swiss for swatchesChannels find the products in some shops (Aldi or elsewhere?) – leveraging the exclusivity of a channelEvents Endorsements sporting events, social events

Creating new brand associationsParticularly important for low involvement products or when products are low in search criteria.It works when three factors are in place:

- Awarenessand knowledge of the entity is important that people knows what the causes are about, events, sporting events and so on

- Meaningfulness of the knowledge of the entityotherwise two things happens: there is no association, and secondly the original source lose meaning

- Transferability of the knowledge of the entity the sources should be transferable to the brand

What may be transferred?For example: if you collaborate with the “Locarno Festival”, you are transferring experience, feelings (excitement for example). Another example if you are engaged in a cause, you are transferring awareness for both the company and the non-profit organization (feelings, thoughts, attributes such as caring) Make sure to know what you are transferring to another brand

Avon – Breast CancerMaking feel good people, is about caring: image, feeling, positive attitude

Environmental marketing: look at the environment where you put the ad – Avon Breast Cancer

Nike and the world cup is doing all this ad that people start thinking that they are involved in the world cup, but they are not. It has more success that Adidas which gave millions to the world cup.

Topic 7 – Measuring and interpreting brand performance

Y&R’s Brand asset valuatorMeasures brands on four fundamental measures of equity value and using a set of perceptual dimensions

The BAV PowerGrid

Unfocused they haven’t have yet the ability to develop differentiationA lot of brands push to eroding potential (ex: Nokia, Blackbarry, Kodak, Casio)

The development of the brand across different countries: Apple in each country has different stage of developments; very useful tool.

The Interbrand approachThe interbrand approach involves three steps:

1.Financial forecasting2.Role of branding3.Brand strength

This approach is useful, partly because it’s a step closer to putting a financial value on the brand

Measure the world major brands it puts a financial amounts next to brands. Financial forecasting; how much profitability will this company generateRole of branding: in some markets the brand is more important than in othersBrand strength: how differentiated is the brand, the consistently

The world’s most valuable brand is Apple, the Google and then Coca-Cola.

Topic 8 – Managing brands over time

Managing brands over timeThe internal and external environments of a brand constantly changeThus, managers must know how to manage brands over timeTwo of the typical thinks we do when we have a strong brand is:

- extend the brand- revitalise the brand

1. Brand extensionsYou have the brand and then you extend it in a new direction.Gillette is a great example of brand extensions; they kill their own brand moving customers to one extension to another one

Allows variety (brand cannibalization problem, can be dangerous but sometimes is the only way to retain customer,)

A fighter brand is an extensions of a brand that is more expensive

May lead to retailer resistance (retailer may resist stocking a product)Opportunity cost of developing a new brand (because to manage more brands)

2. Revitalising the brandThe customer-based brand equity model suggests that there are two ways to refresh old sources of brand equity:

A. Expand the depth or breadth of awarenessDepth: do I really know Coke? Do I recognize it? Recognize the brandBreadth: how often do I think of Coke? When a brand is failing is not a problem of depth, but instead of breadth – the customer will not associate the brand with right things.

B. Improve the strength and uniqueness of brand associations making up the brand image

A. Expanding AwarenessWith a fading brand, often depth of awareness is not the problemBreadth of awareness is more often the problem, which can be dealt by:

1.Identifying additional or new usage opportunities create new business opportunities2.Identifying new and completely different ways to use the brand reinvent what the brand is really about

Ex: chewing gum: is not only about to refresh your mouth but also a substitute for smoking

B.Improving brand imageReposition the brand:

- find points of parity with category leaders- estabilish new points of difference or bring the focus back on the old PoDs

Change brand elements- name and logo updating the logo, website..

Ex: FedEx – people did not call it federal express, and they rename the brand name

In SummaryThe course was concerned with building, measuring and managing brands over time, and with the implications for advertising at each step of the process.

EXAM- write well- introduction, body, conclusion examples at the end (include cases and guest

lectures)