Mkt 440 Class3--Ad Biz-Branding.ppt


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Mkt 440 Class3--Ad Biz-Branding.ppt

  1. 1. Positioning, Branding & The Ad/Promo Industry Structure Mkt 440 Prof. Bill White
  2. 2. The Marketing Mix Step One or Two The Target Market -- Needs, Wants, Expectations Step One or Two The Positioning -- The Story Brand Image & Competitive Advantage Step Three “ The 4 P’s” Product ---- Price ---- Place ---- Promotion
  3. 3. Positioning <ul><li>A Product’s Positioning is </li></ul><ul><ul><li>The place your product occupies in consumers’ minds relative to competing products. Think Brand Image, Benefit Promise, and Competitive Advantage. </li></ul></ul><ul><ul><ul><li>Volvo, Southwest, 7/11, Subway, Atkins, American Express </li></ul></ul></ul><ul><ul><li>It’s how you plan to compete in the marketplace. It’s the reason(s) customers should by your product, and not the competitors’. </li></ul></ul><ul><li>Marketers must: </li></ul><ul><ul><li>Plan positions to give products the greatest advantage. </li></ul></ul><ul><ul><li>Develop marketing mixes (“4 P’s”) to execute planned positioning. </li></ul></ul>
  4. 4. The Positioning Statement <ul><li>The positioning statement guides the execution of the Integrated Marketing Communications message. </li></ul><ul><ul><li>Advertising </li></ul></ul><ul><ul><li>Public relations </li></ul></ul><ul><ul><li>Publicity </li></ul></ul><ul><ul><li>Personal Selling </li></ul></ul><ul><ul><li>Sales Promotions </li></ul></ul><ul><li>What positioning statements led to this advertising slogans: http://advertising. utexas . edu /research/slogans/ </li></ul>
  5. 5. Types of Positioning Strategies <ul><li>Position the brand against its major competitor. </li></ul><ul><ul><li>“ Starbucks doesn’t substitute quality with variety” is a positioning statement that attacks the Diedrich (a competitor) position. </li></ul></ul><ul><li>Position the brand away from the others in the category. </li></ul><ul><ul><li>“ Starbucks isn’t just another coffee house” sets it apart from other coffee houses. </li></ul></ul><ul><li>Position the brand as the category leader. </li></ul><ul><ul><li>“ Starbucks is preferred by more coffee drinkers than any other brand” establishes it as the leader. </li></ul></ul>
  6. 6. Types of Positioning Strategies (Continued) <ul><li>Position the brand to a specific consumer segment. </li></ul><ul><ul><li>“ Starbucks is the business commuter’s favorite” identifies the consumer. </li></ul></ul><ul><li>Position the brand as unique.” </li></ul><ul><ul><li>“ No other coffee house has beans, brew, and brewing machines” identifies Starbucks as one-of-a-kind. </li></ul></ul><ul><li>Position the brand as having: </li></ul><ul><ul><li>A new benefit for the category. </li></ul></ul><ul><ul><li>A better combination of benefits. </li></ul></ul><ul><ul><li>A benefit of increased importance </li></ul></ul><ul><ul><li>Same benefits as competition, but also a unique feature or attribute. </li></ul></ul><ul><ul><li>Value (price/quality) or lower price (Note: Be careful.) </li></ul></ul><ul><li>Position the brand against an entire product class. </li></ul>
  7. 7. Structuring the Positioning Statement <ul><li>“ For (target audience), (brand) is the (superlative: “only, leading, first, best, etc.”) (product category) that (the benefit/does what).” </li></ul><ul><li>Proof/Support/Evidence supporting the statement. </li></ul><ul><ul><li>Features </li></ul></ul><ul><ul><li>Demonstrations </li></ul></ul><ul><ul><li>Research Results </li></ul></ul><ul><ul><li>Seals of Approval </li></ul></ul><ul><ul><li>Guarantees/Warranties </li></ul></ul><ul><ul><li>Trial Offers and Samples </li></ul></ul><ul><ul><li>Reputation </li></ul></ul><ul><ul><li>Testimonials/Endorsements </li></ul></ul>
  8. 8. Positioning and Branding <ul><li>A brand is a name/mark that differentiates the product of one seller or group of sellers from competing products. </li></ul><ul><li>A brand name consists of words, letters, and numbers that can be vocalized. </li></ul><ul><li>A brand mark is the part of the brand that appears in the form of a symbol, design, distinctive color or lettering. </li></ul><ul><li>A trademark is a brand that has been given legal protection. </li></ul>
  9. 9. Positioning and Brand Image/Equity <ul><li>Brand Image/Equity is the extra value that’s inherent in the product and/or the company. </li></ul><ul><li>A strong Brand Image/Equity provides . . . </li></ul><ul><ul><li>Brand awareness/familiarity </li></ul></ul><ul><ul><li>Brand differentiation versus competition </li></ul></ul><ul><ul><li>Brand esteem </li></ul></ul><ul><ul><li>Brand preference </li></ul></ul><ul><ul><li>Brand loyalty </li></ul></ul><ul><ul><li>Product line extensions </li></ul></ul><ul><ul><li>Trademark legal protection </li></ul></ul><ul><ul><li>Trademark licensing </li></ul></ul>
  10. 10. Positioning and Competitive Advantage <ul><li>The most powerful positioning is one where you have a “U.S.P.”– a strong Competitive Advantage: </li></ul><ul><ul><li>U. Unique = Exclusive to you </li></ul></ul><ul><ul><li>S. Selling = Important to the target </li></ul></ul><ul><ul><li>P. Proposition = Benefit Promise and/or Proof </li></ul></ul>
  11. 11. The IMC Message Typology <ul><li>Figure 4-3, p.129 </li></ul>
  12. 12. The IMC Biz <ul><li>Organization is the Foundation of IMC </li></ul><ul><li>Since there are so many partners involved in managing brand relationships, integration is an organizational challenge. </li></ul><ul><li>IMC often involves organizational restructuring. </li></ul><ul><li>A company cannot build relationships externally until it builds them internally. </li></ul>
  13. 13. The Golden Triangle <ul><li>Figure 3-1, p.83 </li></ul>
  14. 14. The Bigger Picture of the Marketing Communication Players <ul><li>Figure 3-2, p.83 </li></ul>
  15. 15. Traditional Corporate Organization <ul><li>Figure 3-3, p.85 </li></ul>
  16. 16. Exhibit 6.5: The communication manager approves or coordinates all communications programs for the entire organization Organization of A Large Advertiser/ Client
  17. 17. Cross-functional Planning and Management <ul><li>A basic principle of IMC: Critical processes that affect customer relationships involve more than one department. </li></ul><ul><li>Thus, Cross-functional planning </li></ul><ul><li>Primary purpose: </li></ul><ul><li>To improve internal communication. </li></ul><ul><li>It involves many departments and functions. </li></ul><ul><li>Benefit of the cross-functional IMC team is to: </li></ul><ul><li>Ensure consistency in all brand messages. </li></ul><ul><li>Make sure the big creative idea is integrated in all messages. </li></ul><ul><li>Coordinate the timing and scheduling of the various MC programs. </li></ul><ul><li>Help employees become less myopic. </li></ul>
  18. 18. Silos <ul><li>Figure 3-6, p.90 </li></ul>
  19. 19. <ul><li>Advertising Agency: an independent business, composed of creative and business people, who develop, prepare, and place advertising in advertising media for clients seeking customers for their products. </li></ul>The Agency
  20. 20. Account Services Creative Dept. Research Dept. Sales Promo Dept. The Media Print Broadcast Internet Production Print Broadcast Internet Research Surveys Focus grps Syndicated Sales Pro Sampling P,O,P Premiums Advertiser Ad Agency Suppliers Client/Account V.P. Marketing Ad Director Brand Manager Media Dept. VP Acct. Svs. VP Marketing President and CEO
  21. 21. The Full-Service Agency <ul><li>Acts as Marketing Partner. </li></ul><ul><li>Diagnoses the Marketing and Brand Problem </li></ul><ul><li>Sets Objectives and Develops Overall Strategic Plan </li></ul><ul><li>Provides All Support Services </li></ul><ul><ul><li>Advertising </li></ul></ul><ul><ul><li>Public relations/publicity </li></ul></ul><ul><ul><li>Sales promotions </li></ul></ul><ul><ul><ul><li>Premiums, contests, sampling, etc. </li></ul></ul></ul><ul><ul><ul><li>Event marketing </li></ul></ul></ul><ul><ul><ul><li>In-store/collateral </li></ul></ul></ul><ul><ul><li>Direct response marketing </li></ul></ul><ul><ul><li>Research </li></ul></ul><ul><ul><li>Internet and new media </li></ul></ul><ul><ul><li>Barter </li></ul></ul>
  22. 22. Exhibit 5.3: One Problem of any campaign is setting objectives that will work.
  23. 23. Exhibit 5.4: Organization of a Typical Full-Service Agency
  24. 24. Other Types of MC Agencies
  25. 25. Media Buying Services <ul><li>Media buying services specialize in buying time and space, that is, placing brand messages in the media. </li></ul>
  26. 26. Public Relation Firms <ul><li>Like advertising, public relation firms may also specialize in certain industries. </li></ul><ul><li>Main function of public relations firm is to counsel companies on how to better manage their relationships with their stakeholders. </li></ul><ul><li>Unlike advertising agencies, most public relation firms do not have a creative or media department. </li></ul><ul><li>One of the most valuable attributes a public relations firm can have is a good relationship with the press. </li></ul>
  27. 27. Direct-Response Agencies <ul><li>Direct-response agencies are structured like advertising agencies. They deal with not only the mass media, but also mail, email and telemarketing services. </li></ul><ul><li>Some agencies may also have specialists who analyze and rent databases. </li></ul><ul><li>Support services include: </li></ul><ul><li>Data shops </li></ul><ul><li>List Brokers </li></ul><ul><li>Printers </li></ul><ul><li>Letter shops </li></ul><ul><li>Creative services </li></ul>
  28. 28. Sales Promotion Agencies <ul><li>Companies that do a lot of promotions, such as premium offers, sweepstakes, in-store special displays, etc. use sales promotion agencies . </li></ul><ul><li>These agencies are made up of three groups: </li></ul><ul><li>Account service managers </li></ul><ul><li>Creatives </li></ul><ul><li>Production people </li></ul>
  29. 29. Some Other MC Agencies <ul><li>Other MC agencies include: </li></ul><ul><li>Corporate identity agencies </li></ul><ul><li>Online Advertising Agencies </li></ul><ul><li>Creative boutiques </li></ul><ul><li>Talent and Production Agencies Creating Creative </li></ul><ul><li>A La Carte Agency </li></ul><ul><li>In-House Agency </li></ul><ul><li>Rolodex Agency </li></ul><ul><li>Event Planners </li></ul><ul><li>In-House Services </li></ul><ul><li>Freelancers </li></ul>
  30. 30. How Some Agencies Specialize <ul><li>Many companies hire MC agencies that specialize in an industry or product category. </li></ul><ul><li>Different types of specialty agencies include: </li></ul><ul><li>Business-to-Business Specialists </li></ul><ul><li>Ethnic Agencies </li></ul><ul><li>High-Tech Agencies </li></ul><ul><li>In-House Agencies </li></ul>
  31. 31. Forms of Agency Compensation <ul><li>Media Commissions (15%) </li></ul><ul><li>Production Commissions or Markups (17.65%) </li></ul><ul><li>Fee/Retainer Arrangements </li></ul><ul><li>Performance Fee </li></ul>
  32. 32. Agency Evaluation <ul><li>Two basic types of evaluations: </li></ul><ul><li>Quantitative audits </li></ul><ul><li>Qualitative surveys </li></ul><ul><li>Evaluations are beneficial for several reasons: </li></ul><ul><li>Company can determine if it is getting its money’s worth </li></ul><ul><li>Agency gets valuable feedback </li></ul><ul><li>Agency and company can determine how to work better together. </li></ul>
  33. 33. Agency Client Relationships <ul><li>Competing Accounts </li></ul><ul><li>Agency/Client Relationship Length </li></ul><ul><li>Agency of Record </li></ul><ul><li>Agency Multiple Offices </li></ul><ul><li>Agency Networks </li></ul><ul><ul><li>Mega-Agency Networks </li></ul></ul>
  34. 34. The Agency/Client Relationship (Continued) <ul><li>The agency/client relationship is critical to the successful functional of an IMC program. </li></ul><ul><li>Client trust can significantly affect the quality of its agency’s work, the smoothness of the working relationship, and the effectiveness of an IMC program. </li></ul><ul><li>A client’s attitude toward its agency – how it sees its agency – often determines the level of trust and respect. </li></ul>
  35. 35. For Profiles of Marketing/Advertising Jobs and Salaries cs / marketingjobs / htm http://www. payscale .com/default.asp
  36. 36. Federal Express Video