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Advertising & Brand Management UNIT I

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Positioning

Advertising & Brand ManagementUNIT I

SyllabusUnit IRole of Integrated Marketing Communication; Process of Marketing Communication; Definition and Scope of Advertising Management; Determination of Target Audience, Advertising and Consumer Behavior; Setting Advertising Objectives, DAGMAR; Determining Advertising Budgets; Advertising Strategy and Planning, Creative Strategy Development and Implementation. (10 Hours)Unit IIMedia Planning: Setting Media Objectives; Developing Media Strategies, Evaluation of Different Media and Media Selection; Media Buying; Measuring Advertising Effectiveness; The Organization for Advertising; Social, Ethical and Legal Aspect of Advertising. (10 Hours)Unit III Brand-concept: Nature and Importance of Brand; Types of brands , Strategic Brand Management Process; Brand Identity perspectives , Brand identity prism, Identity levels, Concepts and Measures of Brand Equity, Brand Assets and liabilities, Aaker Model of Brand Equity, Designing marketing programs to build brand Equity, customer based brand equity ,Brand Loyalty, Measures of Loyalty;, ,Branding strategies product, line , range and umbrella branding , Brand Personality: Definition, Measures and, Formulation of Brand Personality; Brand Image dimensions, Stages of Concept Management for functional ,symbolic and experiential brands. (10 Hours)Unit IVBrand Positioning: Concepts and Definitions, 3 Cs of positioning ,Brand positioning and differentiation strategies, Repositioning, Celebrity Endorsements, Brand Extension; Managing brands over time, Brand reinforcement , brand revitalization, managing global brands ,Branding in different sectors Case studies (12 Hours)2Role of Integrated Marketing CommunicationIntegrated Marketing Communication.. is a process for planning, executing & monitoring the brand messages that create customer relationshipsIntegrated marketing communications is an approach to planning communications that gives your small business the potential to get better results from your campaigns and reduce marketing costs.The traditional role of marketing communications has been to develop marketing material that supports the company's sales activities. The integrated marketing communications manager continues to provide this service, but the other activities under his integrated management function influence the production of marketing material.With marketing communications integrated under one management function, all events go through the integrated communications function. It means that the company's profile and the image it projects at such events is consistent and in keeping with overall company goals.

Role of Integrated Marketing CommunicationPublic RelationsUnder integrated marketing communications management, companies no longer maintain a separate public relations operation whose activities may not support the efforts of marketing. The public relations function becomes part of the integrated strategy and supports the marketing function. Published information, even if not directly relevant to the marketing of the company's products, helps create an image of the company that supports the ability to market them. Companies and their products become more tightly identified in the minds of the public.MediaInstead of separate media relations, the integrated marketing communications concept groups this responsibility with all the other company communications. The integrated marketing communication operations review and manage the image of the company in the media. Marketing personnel release targeted information to support the image they want to see. When the company is in the news, they shape the information coming out of the company to support the company's overall goals and a positive media image.Role of Integrated Marketing CommunicationPublicityA company often has various people authorized to create press releases. Under the integrated concept, integrated marketing communications management handles all such publicity. Others may want to publicize some newsworthy items, but the press release itself goes through the integrated management function. The manager can decide how to structure the release of the news so that it has the desired effect, or he can decide that the release of a particular news item is not in the interests of the company.CustomersUnder integrated communications, the marketing function handles direct customer contact. This arrangement has a two-fold advantage. Marketing management can shape the responses to complaints to maximize customer satisfaction while protecting the company. Marketing management also becomes aware first hand of issues with the company's products. When marketing is placed on the front lines, the function becomes more responsive to customer concerns, and the influence of customers increases.

Role of Integrated Marketing CommunicationIMC plays a role in all:Business-to-business (B2B) interactions.Marketing channel communications.Customer-focused communications.Internally directed communications.IMC provides greater:Brand differentiation.Accountability within a firm.Trust among consumers.Levels of effectiveness in cutting through message clutter than single strategies.Role of Integrated Marketing CommunicationImportance of Integration:Integration begins with the way a company and its agencies organise the process for creating and delivering brand messages.All participants involved in creating and delivering brand messages must work together:The company,Company agencies,The media,Channel members, andMarketing Communication support services.The 8 Key Functions of Marketing Communication: AdvertisingDirect marketingPublicity (public relations)Sales promotionPersonal sellingInternet/ Social mediaEvents and sponsorshipsPackagingProcess of Marketing CommunicationIt is important to understand the process of Marketing Communications. The process is as follows: Sender, Encoding, Transfer Mechanism, Feedback, Response and Decoding. The SENDER is typically the company that produces the product.ENCODING involves communicating the message in understandable terms for the consumer. In some companies, this person is identified as the Marketing Manager.TRANSFER MECHANISM is the medium that will be used to transfer the message.DECODING is how the customer interprets the message.RESPONSE is how the customer reacts to the message. Will the customer purchase the product?FEEDBACK measures how successful the advertising campaign was.Example of a Marketing Communications Strategy: SENDER Clothing manufacturer ENCODING Marketing Manager at the clothing manufacturer TRANSFER MECHANISM Television ad DECODING Customer sees the television ad and keeps it in mind RESPONSE Customer goes to the store and purchases the new product (item of clothing) FEEDBACK Information that customers are responding positively to the message Definition and Scope of Advertising ManagementAdvertising simply put is telling and selling the product. Advertising Management though is a complex process of employing various media to sell a product or service.This process begins quite early from the marketing research and encompasses the media campaigns that help sell the product.While advertising management is an inseparable part of the marketing department, the marketing department of an organization is often concerned more with market research and evaluation of results, and some parts of the advertising management can be outsourced to specialized advertising agencies.Hence, companies that believe in an effective advertising management process are always a step ahead in terms of selling their goods and services.Advertising management process in fact helps in defining the outline of the media campaign and in deciding which type of advertising would be used before the launch of the product.Definition and Scope of Advertising ManagementAdvertising has a wide scope in marketing and in the social system. The scope has been described on the basis of activitiesincluded in advertising, its objective and functions.Its scope lies in:Effectiveness of Messages: Advertising carries a message of the product. The message may be visual (or) oral. It is designed in a systematic manner to influence the prospective customer and formulated on the basis of need, environment and objective. Is should be a true representative of the product. Appropriate Media: The selection of a medium should be made on the basis of the type of customer to be approached; and the capacity of the organisation to bear the cost.Merchandise: Advertising covers the attributes of the products. the merchandise, i.e., theproduct (or) service to be sold.Fulfilment of Objectives: Advertising has certain objective. They are increased sales, creation of awareness and interest, sustaining the already established product, introducing a new product, helping middlemen and helping the public at large. These objectives are fulfilled by advertisers.Determination of Target AudienceDetermining your target audience isjust as important as defining your goal. For communication to be effective, it needs to be delivered to the right people.Inmarketingandadvertising, atarget audienceis a specific group of people within thetarget marketat which aproductor the marketing message of a product is aimed at.Your target market is the profile of the typical customers who utilize your business. Narrowing down your target audience is key in cost-effective and useful marketing, because it allows you to tailor the marketing to appeal to those customers. A general target audience without any specific demographics is less likely to increase sales because you fail to reach the people who will actually use your product or service. Take time before you begin your next marketing campaign to figure out to whom exactly you are trying to sell.Step1: Review the products and services you have available. Consider the features and benefits to a consumer who uses your products so you are able to narrow down exactly who would benefit from them. For example, a residential cleaning service benefits customers by saving them time; thus the target audience may be busy professionals or moms who need more time to balance home and family responsibilities.Determination of Target AudienceStep2: Evaluate your own skills and areas of expertise to help choose a target audience. For example, a caterer with experience in large corporate events may choose to target that section of the market.Step3: Analyze your current customer files to determine who already utilizes your products or services. Look for similarities among your customers in terms of factors such as age, gender, income, education, job and ethnicity. Use this information to narrow down your target audience.Step4: Research to whom your competitors are marketing in their advertising. Look at the type of people who utilize those services and to which groups the marketing materials may appeal. Identify ways to look for slightly different target customers to attract a different segment of the market. Step5: Write a basic profile of the type of customers you want to target using your research. Determine the lifestyle, values, background, occupations, age and location of your ideal customers. If you offer different types of services or products, determine if a second or third target audience is a possibility for those specific items.Step6: Evaluate your target audience periodically to determine if your products or services are still best focused on that type of people. As you add new products or services, determine if you need to develop a new profile for that core audience.

Determination of Target AudienceVarious Factors to be considered while determining target audience:Age: Products we use when we are young are sometimes no longer desirable or relevant when we are older. Age segmentation groups might include teen, young adult, middle-age and retired categories.Income: Income segmentation classifies individuals into categories according to monthly or annual earnings. Marketers choose how to define high income, mid income and low income and can also choose to create a message for each income level or to focus on one tier.Location: Where you live can dictate the need for products. Climate, hobbies and activities correlate with your geographic location.Other Factors: Education, occupation and number of children offer additional demographic distinctions.

Advertising and Consumer BehaviourMarketers need to understand the buying behaviour of consumers while designing their advertisements for the desired impact. Advertisements play an essential role in creating an image of a product in the minds of consumers. Advertisements must be catchy and communicate relevant information to consumers.Understanding the needs of the consumer is really important when it comes to creating the right advertisement for the right audience.Advertising and promotion offer a news function to consumers. Viewers of ads learn about new products and services available to them, much like they learn about events in the news. This information function has a neutral role. It provides facts without approval or disapproval from consumers. Customer behaviour at this stage encompasses expressions of curiosity.Consumers have a rational response to advertising when they look at the features of a product or service. This response focuses on a logical listing of all the functional aspects of the offering. This is an intellectual response, rather than an emotional one.When customers weigh benefits, they become emotionally involved with advertising and promotion. Consumers identify ways the product or service can make them happier, improve their lives or give them pleasure. This part of the consumer response is irrational and can lead to impulse buying and competition to obtain the product.Advertising and Consumer BehaviourRepeated advertising messages affect consumer behavior. This repetition serves as a reminder to the consumer. Behavior that stems from reminders includes suddenly thinking of a product while shopping and making a decision to buy it, as if it had been on the consumers "to-do" list.Consumer behavior splits between loyalty and alienation depending on how well the product lives up to its advertised benefits. Corporate behavior such as scandals or charity work can also affect alienation and loyalty responses. Once the consumer makes this choice, advertising and promotion are not likely to undo that decision.

Setting Advertising ObjectivesThere are two basic questions that advertising objectives should address. Who are the people we are trying to inuence? and What specic benets or information are we trying to communicate to them?Various Objectives of Advertising:To make attitudes more favourable to a particular product.To build an image for the product.To create a brand leader to help the launch of additional products at a future date.To win back previous product users who have defected to a competitive product.To expand the whole market.To reduce existing negative attitudesTo keep building loyalty.To establish the brand and position it in a particular way, e.g. as warm and friendly.To create a brand leader in a particular market.To improve the frequency of purchase.To keep new entrants out of the market.To convey the idea that the product is value for money.To improve market share compared with competitors.To maintain brand distribution.

Setting Advertising ObjectivesBehind all effective advertising there lies a lot of careful thought and planning, and much of it goes into ensuring that the advertising objectives are the right ones.An advertising objective is a specific communication task and achievement level to be accomplished with a specific audience in a specific period of time.Advertising can be used to address several broad objectives including: building product awareness, creating interest, providing information, stimulating demand and reinforcing the brand.Message About Product Details about the product play a prominent role in advertising for new and existing products. In fact, a very large percentage of product-oriented advertising includes some mention of features and benefits offered by the marketers product.Message About Price Companies that regularly engage in price adjustments, such as running short term sales, can use advertising to let the market know of price reductions.Message About Other Promotions Advertising often works hand-in-hand with other promotional mix items. For instance, special sales promotions, such as contests, may be announced within an advertisement.Message About Distribution Within distribution channels, advertising can help expand channel options for a marketer by making distributors aware of the marketers offerings.

DAGMARDefining Advertising Goals for Measured Advertising Results (DAGMAR) was anadvertisingmodel proposed by Russel H. Colley in 1961. Collay proposed that the real goal of advertising was to communicate, not to sell specifically.

By determining if the consumer had sufficient knowledge of a product and its benefits by creating clear, specific objectives that are discussed within an advertisement, advertisers would be able to tell if their selling points made a difference in the consumer's decision-making process.

According to DAGMAR, each purchase prospect goes through 4 steps:1. Awareness2. Comprehension3. Conviction4. ActionThese steps are also known as ACCA advertising formula. ACCA/DAGMAR is a descendant ofAIDA (Attention Interest Desire Action) advertising formula and considered to be more popular and comprehensive than AIDA. Developed for the measurement of advertising effectiveness it maps the states of mind that a consumer passes through.DAGMARDAGMAR model suggests that the ultimate objective of advertising must carry a consumer through four levels of understanding: from unawareness to Awarenessthe consumer must first be aware of a brand or company Comprehensionhe or she must have a comprehension of what the product is and its benefits; Convictionhe or she must arrive at the mental disposition or conviction to buys the brand; Actionfinally, he or she actually buy that product.AwarenessAwareness of the existence of a product or organization is necessary before the purchase behaviour can be expected. Once the awareness has been created in the target audience, it should not be neglected. If there is neglect, the audience may become distracted by competing messages and the level of awareness of focus product or organization will decline.Awareness needs to be created, developed, refined or sustained, according to the characteristics of the market and the particular situation facing an organization at any one point of time.Comprehension Awareness on its own may not be sufficient to stimulate a purchase. Knowledge about the product or the organization is necessary. This can be achieved by providing specific information about key brand attributes.

DAGMARConviction The next step is to establish a sense of conviction. By creating interest and preference, buyers are moved to a position where they are convinced that a particular product in the class should be tried at the next opportunity. To do this, audiences beliefs about the product have to be moulded and this is often done through messages that demonstrate the products superiority over a rival or by talking about the rewards as a result of using the product.ActionCommunication must finally encourage buyers to engage in purchase activity. Advertising can be directive and guide the buyers into certain behavioural outcomes,Use of toll free numbers, direct mail activities and reply cards and coupons.For high involvement decisions, the most effective tool in the communication mix at this stage in the hierarchy is personal selling. Through the use of interpersonal skills, buyers are more likely to want to buy a product than if personal prompting is absent.DAGMARA major contribution of DAGMAR was Colleys specification of what constitutes a good objective. Four requirements or characteristics of good objectives were noted:Concrete and measurablethe communications task or objective should be a precise statement of what appeal or message the advertiser wants to communicate to the target audience. Furthermore the specification should include a description of the measurement procedureTarget audience a key tenet to DAGMAR is that the target audience be well defined. For example if the goal was to increase awareness, it is essential to know the target audience precisely. The benchmark measure cannot be developed without a specification of the target segmentSpecified time perioda final characteristic of good objectives is the specification of the time period during which the objective is to be accomplished, e.g. 6months, 1 year etc. With a time period specified a survey to generate a set if measures can be planned and anticipated.Written Goal - finally goals should be committed to paper. When the goals are clearly written, basic shortcomings and misunderstandings become exposed and it becomes easy to determine whether the goal contains the crucial aspects of the DAGMAR approach

Determining Advertising BudgetsOne key factor affecting the strategy used to achieve advertising objectives is how much money an organization has to spend. The funds designated for advertising make up the advertising budget and it reflects the amount an organization is willing (i.e., approved by high-level management) to commit to achieve its advertising objectives.Organizations use several methods for determining advertising budgets including:Percentage of Sales Under this approach advertising spending is set based on either a percentage of previous sales or a percentage of forecasted sales. Alternatively, companies may consider allocating advertising funds based on a percentage of forecasted sales. In this way advertising is viewed as a driver of future sales and spending on advertising is linked directly to meeting future sales forecasts. However, since future sales are not guaranteed, the actual percentage spent may be considerably higher than expected if the sales forecast is greater than what actually occurs.What is Affordable Many smaller companies find spending of any kind to be constraining. In this situation, advertising may be just one of several tightly allocated spending areas and, thus, the level spent on advertising may vary over time. For these companies, advertising may only occur when extra funds are available.Determining Advertising BudgetsBest Guess Companies entering new markets often lack knowledge of how much advertising is needed to achieve their objectives. In cases where the market is not well understood, marketers may rely on their best judgment (i.e., executives experience) of what the advertising budget should be.How do marketers decide on their advertising budget?Set a preliminary budget based on chosen tasks.Estimate the budget of competitors and adjust accordingly.Prepare a budget document with the rationale of expenses.Use a percentage of sales.Marketers tend to use several techniques to determine an advertising budget.Affordability - Anticipatedpromotioncosts are the basis for this method with the upper limit of the budget based on the availability of company resources.Ratio-to-sales - The amount budgeted is based on some portion of past or forecasted sales.Competitive comparisons - The budget is based on the amount spent by major competitors.Experimental approach - The budget is based on test market results.Objective-task method - The budget is determined by calculating the costs of reaching specific promotional objectives and sum amounts.

Advertising Strategy and PlanningAn advertising strategy is a plan to reach and persuade a customer to buy a product or a service. The basic elements of the plan are The product itself and its advantagesThe customer and his or her characteristicsThe relative advantages of alternative routes whereby the customer can be informed of the product and The optimization of resulting choices given budgetary constraints.

Effective product assessment, market definition, media analysis, and budgetary choices result in an optimum plannever the perfect plan because resources are always limited.

DEVELOPING THE STRATEGYPositioning StatementFormal advertising strategies are based on a "positioning statement," a technical term the meaning of which, simply, is what the company's product or serviceis, how it is differentiated from competing products and services, and by which means it will reach the customer.The positioning statement must also implicitly include the profile of the targeted customer and the reasons why he or she would buy this product or this service. At a later stage, more data on the "target consumer" is then developed as the strategy is fleshed out.

Advertising Strategy and PlanningDEVELOPING THE STRATEGYTarget ConsumerThe target consumer is a complex combination of persons. First of all, it includes the person who ultimately buys the product. Next it includes those who, in certain circumstances, decide what product will be bought (but do not physically buy it). Finally, it includes those who influence product purchases (children, spouse, and friends). In practice the small business owner, being close to his or her customers, probably knows exactly how to advise the advertising agency on the target consumer.

Communication MediaOnce the product and its environment are understood and the target consumer has been specified, the routes of reaching the consumer must be assessedthe media of communication. Five major channels are available to the business owner:PrintPrimarily newspapers (both weekly and daily) and magazines.AudioFM and AM radio.VideoPromotional videos, infomercials.World Wide Web.Direct mail.Outdoor advertisingBillboards, advertisements on public transportation (cabs, buses).Advertising Strategy and PlanningDEVELOPING THE STRATEGYImplementationThe advertising campaign itself is distinct from the strategy, but the strategy is meant to guide implementation. Therefore across-the-board consistency is highly desirable. Copy, artwork, images, musicindeed all aspects of the campaignshould reflect the strategy throughout. This is especially important when multiple channels are used: print, television, and direct mail, for instance. To achieve a maximum coherence, many effective advertisers develop a unifying thematic expressed as an image, a slogan, or a combination which is central to all the elements that ultimately reach the consumer.

Advertising PlanDetailed outline of a firm's or a product's advertising campaign which shows what are the advertising objectives, how they will be achieved, and what commitment of resources is required..Need for an Advertising Plan:Effective advertising lowers your cost of doing business.Minimal, limited duration, or random advertising equals wasted money.Advertising is not creative if it does not bring in clients.With consumer goods and services, marketing and advertising affects the market share more than price does.

Advertising Strategy and PlanningCreating an effective advertising plan:Define Your CustomersPoorly targeted advertisement hinders affectivityAdvertising for whole world would make it monotonousMake no mistake your advertising plan needs a clear, concise, written definition of who your customers are. Age, sex, marital status, economic status, geographic location, what they read, think, trust, value, desire, and any and all other relevant information should be included in your definition. Define What Makes You Unique:Finding the USPMake a list of the benefits you offerWhat benefit is most important to your customers? [Ask them]. What benefit is hard for your competitors to copy? What benefit can be clearly communicated to your customers? Is it easy to understand? Is the benefit really desirable to the customer?

Creative Strategy Development and ImplementationThe creative development and execution of the advertising message are a crucial part of a firms integrated marketing communications program and is often the key to the success of a marketing campaign. Marketers generally turn to ad agencies to develop, prepare, and implement their creative strategy since these agencies are specialists in the creative function of advertising. The creative specialist or team is responsible for developing an effective way to communicate the marketers message to the customer. Other individuals on both the client and the agency sides work with the creative specialists to develop the creative strategy, implement it, and evaluate its effectiveness.Creativity in advertising is a process of several stages, including preparation, incubation, illumination, verification, and revision.Creative strategy development is guided by specific goals and objectives and is based on a number of factors, including the target audience, the basic problem the advertising must address, the objectives the message seeks to accomplish, and the major selling idea or key benefit the advertiser wants to communicate.There are several approaches to doing this, including using a unique selling proposition, creating a brand image, looking for inherent drama in the brand, and positioning.

Creative Strategy Development and ImplementationThecreative executionstyleis the way a particular appeal is turned into an advertising message presented tothe consumer.When we talk about the appeal of an ad, it can be majorly classified into two types Rationaland emotional.

Informational/Rational AppealInformational/rational appeals focuson the consumers practical, functional, or utilitarian need for the product or serviceand emphasize features of a product or service and/or the benets or reasons for owningor using a particular brand. Rational-based appeals tend to be informative, andadvertisers using them generally attempt to convince consumers that their product orservice has a particular attribute(s) or provides a specific benefit that satisfies theirneeds. Informational appeal has other categories.Competitive advantage appealis where an indirect comparison with a competitor is made.Favourable price appealis where the price is the focal point of the communication.News appealconcentrates on some news or announcement about the product.

Creative Strategy Development and ImplementationEmotional AppealEmotional appeals relate to the customers social and/orpsychological needs for purchasing a product or service. Many consumers motives fortheir purchase decisions are emotional, and their feelings about a brand can be moreimportant than knowledge of its features or attributes.The Kelloggs Respectyourself campaign has been very effective in positioning Nutri-Grain as a healthyalternative for those who dont take time to eat breakfast. Another example is whereMcDonalds changed its advertising strategy recently and is now putting more emotionin its commercials to evoke a feel-good connection with consumers. Combining Rational and Emotional AppealsIn many advertising situations,the decision facing the creative specialist is not whether to choose an emotionalora rational appeal but, rather,determining how to combine the two approaches.Consumer purchase decisions are often made on the basis of both emotional andrational motives, and attention must be given to both elements in developing effectiveadvertising.There are other kinds of appeals as well. some brands follow the concept ofreminder advertising. The main objective is to build the brand in such a way that the customer sees the brand name in front of them all the time. Other ads includeteaser adswhere when a new product is about to be introduced ads are designed in such a way that they build up the curiosity and interest of the consumers.

Creative Strategy Development and ImplementationAn advertising message can be presented or executed in numerousways. Few of them are:

Straight Sell-One of the most basic typesof creative executions is the straight sell or factual message. This type ofad relies on a straightforward presentation of information concerning theproduct or service. They are usually used in print ads.

Scientific evidence-Advertisers often cite technical information,results of scientic or laboratory studies, or endorsements by scientic bodies or agenciesto support their advertising claims.

Demonstration-Demonstration advertising is designed to illustrate the keyadvantages of the product/service by showing it in actual use or in some staged situation.Demonstration executions can be very effectivein convincing consumers of aproductsutility or quality and of the benefits of owning or using the brand.

Comparison-Brand comparisons can also be the basis for the advertisingexecution. Thecomparison execution approach is increasingly popularamongadvertisers, since it offersa direct way of communicating a brandsparticularadvantage over its competitors or positioning a new or lesser knownbrand with industry leaders.Creative Strategy Development and ImplementationAn advertising message can be presented or executed in numerousways. Few of them are:

Slice of Life A widely used advertising format, particularly for packaged-goodsproducts, is the slice-of-life execution, which is generally basedona problem/solution approach. Thistype of ad portrays a problem or conflictthat consumers might face in their daily lives andthen shows howtheadvertisersproduct or service can resolve the problem.

The components of a print adinclude headlines, body copy, illustrations,and layout. The production of an actual commercial goes through three main stages:

In all, making creative ideas come to life and seeing the execution of the strategy in the marketplace is what the entire process is all about.