adv 435 ch 5 strategy

Marketing

Communication

Strategy

Chapter 5

Strategy

= Actions that will

give brand a

competitive edge

Strategy

Actions tend to be

broaderin scope as

opposed to specific

tactics

Strategy•Anticipates consumer

responses

•Anticipates competitive

reactions

•Message content

• Tone

• Benefits

• Features

• Models/Menu Items/Biz

Strategy•Media

• Mainstream vs. Alternative

• Day Part Focus

• Interactive

• Social

Building Strategic

FoundationElements

•Determine Selling Focus

•Managing Brand Equity

•Positioning the Message

•Funding Comm. program

•Targeting/Delivering

Message

Building Strategic

Foundation

Each element has

strategic focal point

derived from

research

Building Strategic

Foundation

Sometimes the elements

are at odds…..

Building Strategic

FoundationSelling Focus/Brand

Equity/Positioning/Target

•Fashion: Style vs. Comfort

•Food: Taste vs. Nutrition/Health

•Image vs. Product

Characteristics

•Time: Short term vs. Long term• Stimulate Sales vs. Building Brand

Equity

Building Strategic

FoundationSelling Focus/Brand

Equity/Positioning/Target

Name some others

Building Strategic

FoundationSelling Focus/Brand

Equity/Positioning/Target

•Beverages: Taste vs. Calories

•Life Insurance: Term vs. Whole Life

•Electronics: Speed vs. Capacity

•Gems: Weight vs. Clarity

•Colleges: Cost vs. Proximity vs. Programs

vs. Value of Degree

•Housing: Location vs. Amenities

•Job: Salary vs. Potential

Building Strategic

FoundationElement: Selling Focus

Better than Competition?

= Basis for Message

Parity?

= Build Brand is the message

Building Strategic

Foundation

Element: Brand Equity

•Without it, Brand does NOT

survive!• Company sells it or discontinues it.

• EF Hutton - Compaq

• Pontiac - Enron

• Oldsmobile - Circuit City

• TWA - Borders ?

• RCA - Crocs ?

Building Strategic

Foundation

Element: Brand Equity• Short Term focus on sales ties brand

image to that goal. Ex: Pizza Hut and

Boston Market to coupons.

• Elimination of coupons and short term

discounts strengthened Denny’s

• Live by the coupon, die by the coupon

• Roy Rogers - Tire and auto repair

• Little Caesars - Weight loss and exercise

• Many mom and pop stores

Building Strategic

FoundationElement: Positioning

•How brand is presented in

various messages

• Create an image or identity

in consumers mind

• Can achieve Short & Long

Term Goals

Building Strategic

FoundationElement: Funding

•Investment Spending

• % Sales

• Task/Objective

• Allocation per Unit

• Cars with $ by model

Building Strategic

FoundationElement: Targeting

•Right Demo?

•Right Lifestyle?

• Right Geography?

• Right Psychographic?

• Right Message?

Building Strategic

FoundationElement: Targeting

• Right Message?

• Believable?

• Not Believable? (This is not

your father’s Oldsmobile)

Determining Selling Focus

Managing Demand

• Controlling Thoughts &

Feelings about

Brand

- What is Perception of Brand

- What is Image of Brand

- How important are the facts

(Taco Bell meat)

Determining Selling Focus

Managing Demand

• Attempt to avoid price

competition

• Allows for:

• Product Improvements

• Line Extensions (New Users)

• New Products

Determining Selling Focus

Advertising Can Shape Image

•Thru Message

•Media Selection

•Can Change Both Quickly• LTO’s

• Specials

• Coupons

• Media Opportunities

Determining Selling Focus

Advertising Can Shape Image

•Thru Message

•Media Selection

•Can Change Both Quickly• But may need to sell-in distribution

pipeline (Packaged Goods)

Managing Brand Equity

Brand Equity = Value in Brand’s

•Name

•Logo

• Icons

Managing Brand Equity

Brand Equity =Intangibles

•Positive Association

•Positive Feeling

•Sense of Connection

•Sense of Self Esteem

Managing Brand Equity

Examples:

Which is more important

Beechwood Aged or

King of Beers?

Triple Hopped or

Tastes Great, Less Filling

Managing Brand Equity

Examples:

Which is more important

What can Brown Do for

You, or

When it Absolutely,

Positively HAS to be

There Overnight!

Brand Equity

Components:

•Brand Loyalty

•Name Awareness

•Perceived Quality

•Brand Associations

•Other Assets

Brand Equity

Components:

•Other Assets

–Patents

–Trademarks

–Characters

–Channel Relationships

Brand Loyalty

•Less expensive to

keep customers than

find new ones.

•Takes less time

Brand Loyalty

•Customers & prospects

have routines.

–Comfortable

–Have acceptable degree of

satisfaction

–Require less mental effort

–Boring?

Brand Loyalty

Taking customers or

market for granted can

lead to:

•Ennui

•Loss of Leadership

•Elimination

Brand Loyalty

•Plymouth - MGM

•Eastern Airlines -

Pontiac

•Kinko’s -

Gino’s

•White Cloud - Loew’s

•General Cinema - Atari

•Prentice-Hall - Borders

•Blockbuster - T Mobile

Cultivating Brand Loyalty

Get Customers

Emotionally attached

to Brand

Cultivating Brand Loyalty

Emotionally attached:

• I want my MTV

• Absurd connections

• Add Value

–More Attention

–Better Service

–Greater Satisfaction

Cultivating Brand Loyalty

Greater Satisfaction

Examples?

Cultivating Brand Loyalty

Greater Satisfaction

Examples?

–Southwest

–Publix

–Lexus

–Apple

–Vanguard

–Home Depot

Name Awareness•Without Awareness there

is NO Loyalty

•Name is the anchor for

other brand associations

–Slogan or tagline without

name is meaningless

•Name provides familiarity

Name Awareness•Name Signals Commitment

and Substance

•Name Suggests Others Feel

it Worthy

Name AwarenessName Associations:

Disney

Oprah

Bose

Cancun

Dr Pepper

Garnier

Name AwarenessName Associations:

Axe

Nike

DKNY

GAP

Sony

Old Navy

Name AwarenessName Associations:

Pepsi

Coke

Rutgers

Rider

Princeton

Stages of Awareness–NONE

–SLIGHT

–GENERALLY AWARE

–VERY

–EXTREME AWARENESS

–UNAWARE

–RECOGNITION

–RECALL

–TOP OF MIND

Stages of Awareness

Key 3

–Top of Mind = First Said

–Unaided = No prompt

–Aided = With prompt

Stages of Awareness

Increasing TOP OF MIND

awareness is an…

Advertising GOAL

Perceived Quality

First isn’t Best but MAY be

so perceived

Perceived Quality

Does it matter?

–Sony vs. Panasonic

-HDTV, 3D TV

–Hybrid Cars

-Who was first?

-Who sells most?

Brand Associations

•Celebrities – Michael Jordan

•Places – Old El Paso

•Characters – Dutch Boy

• Ideas –Everywhere you want

to be

•Words - Priceless

Brand Associations

Associations built on

Products

Physical Qualities tend to be

Fleeting!

•Technology

•Software

•Cars

•Clothes

Brand Associations

Associations with Qualities

must make sense to

consumer

•Miller Lite: “It’s it and that’s

that!” Made no sense.

•Huh? Factor

Brand Associations

Strategy must focus on

which associations are

worth:

• Keeping

• Reinforcing

• Intensifying

Other Proprietary Brand

Assets

•Patents and trademarks

–Tylenol (Acetaminophen)

–Equal (Aspartame) packets

And NutriSweet (bulk),

Though patent expired 18

years ago

Other Proprietary Brand

Assets

•Characters

–Green Giant started as ogre

but ad agency made him Jolly

–The Burger King started out

friendly then got weird.

Other Proprietary Brand

Assets

•Channel relationships

–7 Up was leading citrus

soda

–Coke had most ext. distrib

»Coke created Sprite

»Pepsi created Sierra Mist

»Where is 7 Up today?

Protecting Brand Equity

•Short vs. Long Term

–Bonus vs. Investment

–Technology provides oppts. For

short term bumps. Scanners at

checkout enable quick local

response

Protecting Brand Equity

•Depends on product

–Generic (water) minimal loyalty

–Prestige (Rolex, Rolls, LV) high

–Ad Strategy MUST relate to

LIKELIHOOD OF LOYALTY

Protecting Brand Equity

–If Campbell’s Soup is an average

(not great) product…

–BUT, Campbell’s and Soup are

closely associated

–Then ad focus should be on soup

–“Soup is Good Food”

POSITIONING

• Defining the market in which the product or brand

will compete (who relevant buyers are i.e. the

target)

• Identifying the attributes (dimensions) that define

the product space.

• Collecting information from sample of customers

on their perceptions of each product re: relevant

attributes

• Determine each product's share of mind (degree of

consumer awareness or popularity)

POSITIONING• Determine each product's current location

in the product space (attributes).

• Determine the target market's preferred

combination of attributes (referred to as an

ideal vector)

• Examine the fit between:

• The position of your product

• The position of the ideal vector

EXAMPLE

More on Positioning

• Using Messages to create/revise

perception about a brand relative to

others.

–Pepsi = Younger – sweeter drink

–Coke = Older but youthful, playful

More on Positioning

• Using Messages to create/revise

perception about a brand relative to

others.

–Cars:

»Chevy- Young Families

»Buick – School Principal

»Cadillac – Grandparents

»BMW – Yuppies

»Mercedes – Successful Pros

More on Positioning

Wrong Positioning:

–Denny’s as America’s Kitchen»Was really Low Price Alternative

–New Coke

–Gerber’s Baby Food for Adults

–Bic Disposable……underwear

Types of Positioning

• Product Characteristics

–Rolaids Spells Relief

• Price Quality

–Target, WalMart

• Use or Application

–Beano

• Product Class

–Dove Soap

Types of Positioning

•User

–Secret: Strong enough for a

man, but made for a woman

•Cultural Symbol

–Harley Davidson

•Competitors

–TD Bank: Most Convenient

Positioning Exercise

•Find two examples of poorly

positioned products.

–What is position?

–Who is competition & position

–How would you change

position?

Funding the MC program

Goal:

Meet/Exceed Competitive

•Share of Voice

•Share of Market

•Unit Appropriation

•Share of Sales

Appropriation

Funding the MC program

Task Method

•National

•Regional

•Local

Targeting & Delivering

Message

•Mass Media/Message

•Niche Media/Message

•Both

Targeting & Delivering

Message

Media and Message Mix

– Budget Considerations

– Target Considerations

– Strengths of Media

Targeting & Delivering

Message

• Network TV: Strong Brand Identity

• Magazines: More copy & detail

• Newspaper: Immediacy, local

• Internet: Interaction, more info

• Brochures: specifics, saved

• Radio: frequency, reminder

Targeting & Delivering

Message

•Outdoor: Location, creativity

•PR: Credibility

• Infomercials: In depth, direct

response

•POP: point of sale stimulus