F6.0 advertising sales_promotion_and_public_relations

International Seminar

Advertising,
Sales Promotion
and
Public Relations

© Heinz G. Zenk – International Advertising Seminar

The New Generation of Strategical Brand
Management
2 Brands are fighting

3 Consumers are
getting blunt and
price sensitive

for value added

1

Markets are
changing
overnight

6 Conventional media
are no longer
sufficient

Speed
to MarketMarketing

4

Trading firms
are developing their own
marketing intelligence

5 Increasing competition
leads to an increase
in concentration

© Heinz G. Zenk – International Basic Seminar

Environmental Factors affecting Strategy


The Four Tools of Marketing

1. Product: Includes product design and development,
branding, maintenance and packaging.

2. Distribution: Includes the channels used in moving and
storing the product from the manufactures to the buyer.
Market coverage, storage.

3. Price: Includes the price at which the product or service is
offered for sale and establishes the level of profitability.
Price copying, psychological pricing

4. Communication: Includes personal selling, advertising,

public relations, sales promotion, direct marketing, point-ofsale, and packaging.


The New Marketing

The Four P´s
(the old marketing mix)
are
no longer relevant!


The New Marketing
The Customer expectation

1 Cost – a customer considers cost within a value perception.
2 Convenience of buying – a mix of lace/location, opening hours,
cash/credit card, etc. Customers are lazy
3 Concept – a mix of product and service products which offer after care
service.
4 Communication – how well the service or the product is communicated
to the customer?
5 Customer relationship – CRM principles apply customers expectations
to be treated with respect at all times and that all reasonable questions
will be answered and problems resolved.
6 Consistency – the reassurance of ongoing quality and reliability of the
other five C´s


Neuromarketing

Desire!


Limbic® Branding
Consulting tool for successful
brand positioning
and brand leading

Copyright:
Dr.Hans-Georg Häusel, Gruppe Nymphenburg, München
Seidlstrasse 25, 80335 München, 089-549021-0


Limbic® Branding
FAZ-INSTITUT AND BUSINESS BESTSELLER SUMMARIES

Worldwide, the limbic approach might be the
best and scientifically most founded motiveand personality-system for marketing and
brand appliance.


Limbic®
The scientific base
Neuroscience / Neurobiology
(analysis of about 2000 studies:
brain – emotion – behavior)

Psycho-Endocrinology

(analysis of about 600 studies:
hormones – neurotransmitter)
Psychology
(Large research project and extensive
empiric studies in cooperation with
Prof.Dr.Dr. Brengelmann, Max-PlanckInstitut for Psychiatry: Money / Consum /
Personality

Evolutionary Biology &
Psychology
(analysis of about 600 studies)


Limbic®
Buying descisions are made unconsciously

70 %

unconscious

Limbic®
The real motives in the human brain

Stimulance

Dominance

exploration
discover

competition
repression

hunt

Play

tussle

sleep
food

xuality
se
care

bonding

Balance
security
stability

Limbic®
The human behavior program

Dominance

Stimulance

Sexuality
Food
Sleep / Breath

Balance

Limbic®
The Balance-Instruction

Balance


Limbic®
The Dominance-Instruction

Do
mi
na
nc
e

Limbic®
The Stimulance-Instruction

e= mc2

tim
S

ce
lan
u

Limbic® Map
The human motives and values
extravagance

e
nc
ula
tim
S
fun

Adventure
Thrill
impulsivness

individualism

art

courage

risk

creativity

rebellion
victory
fight

spontaneity
autonomy

variety

fame

curiosity
playfulness

elite
prestige
pride

ambition

honour

humor
pleasure

Do
m
in
an
ce
power

fantasy

diligence

equilibrium

dreaming

Fa openess
poetry
Pl nt
ea as sensuality
su y tolerance
re

orderliness

flexibility

Bonding
nature

friendship
family
trust

Care

loyality

security

logic
diciplin

precision

e
in
l
moral
asceticism
dutifulness
ip rol
c
economy
is nt
D o
reliability
C
justice

cordiality

tenacity

health

bondage

quality

tradition

home

Balance


Limbic® Map
Flops regarded with the limbic eye

Camel 1960

Camel 1990

Camel 2002

Limbic® Map
New thinking predominance of the limbic system

Consciousness
Emotions
Cognitions

Information

Unconscious
Evaluation
by Limbic System

70%


Limbic® Map
Left half of the brain, right half of the brain

Left
language
sem. structure
well-known
things

Optimistic

Right
special thinking
patterns
unknown
things

Pessimistic

Personality Emerges From the
Limbic System


Limbic Consumer (Male and Female)

Adventurer

9%
Hedonist

Performer

16 %

6%

Epicure

Disciplined

22 %

12%
Preserver

35 %

Differences Between Men and Women


Modifications According to Age

20-35 years

65+++ years


Limbic® Consumers (Female)

Adventurer

3%
Hedonist

Performer

17 %

2%

Epicure

Disciplined

25 %

7%
Preserver

46 %

Limbic® Consumers (Male)

Adventurer

15 %
Hedonist

Performer

15 %

11 %

Epicure

Disciplined

18 %

18%
Preserver

23 %

Limbic® Youth 20 - 30

Adventurer

20 %
Hedonist

Performer

25 %

10 %

Epicure

Disciplined

22 %

5%
Preserver

18 %

Limbic® Age 60 +

Adventurer

1%
Hedonist

Performer

4%

4%

Epicure

Disciplined

19 %

14%
Preserver

58 %

Limbic ® Map
extravagance

e
nc
ul a
tim
S

impulsivness

playfulness

fight

spontaneity

autonomy

variety

curiosity

fame

fantasy

prestige
pride

ambition

r
e

Older
women

Bonding
nature

friendship
family

trust

Care

justice
dutifulness

loyality

security

ld n
O e e
m ciplinrol
orderliness

flexibility
cordiality

tenacity

diligence

equilibrium

dreaming

Fa openess
poetry
Pl nt
ea as sensuality
su y tolerance
re

elite

honour

humor

pleasure

Do
m
in
an
ce
power

victory

Younger
men

individualism

art

rebellion
courage

risk

creativity

Yo
un
wo ge
me r
n
fun

Adventure
thrill

precision

bondage

moral

asceticism

economy

reliability
health

logic
diciplin

quality

is
D

nt
Co

tradition

home

Balance


Milk Brands and Their Differences

discipline, control, purity, freshness

care, security, trust, home

creativity, pleasure, discover, fun,
humor, hedonism

consciously pleasure, care, well-being, nature,
openess, harmony

Limbic® Map
extravagance

e
nc
ula
creativity
im
St
individualism
Brand Core variety
fun
art
curiosity
„Müller“

Adventure
Thrill
impulsivness

rebellion
courage

risk

victory
fight

spontaneity
autonomy

playfulness

fame

elite
prestige
pride

ambition

honour

humor
pleasure

Do
m
in
an
ce
power

fantasy

equilibrium

tenacity

diligence

dreaming

logic
diciplin

precision

Fa openess
Bra poetry
flexibility
justice
bondage
e
Pl nt
in
nd
l
moral
ea as sensuality C
asceticism
dutifulness
„O
ip rol
cordiality
friendship
su y tolerance ore
c
economy
nk e
loyality
is nt
re
family
n“
Brand Core
D o
reliability
Generic milk Brand Core
trust
Bonding
C
security
„Landliebe“
health
quality
„Weihenstephan“
orderliness

nature

Care

tradition

home

Balance


Please notice
Limbic® and the connected instruments and procedures are protected
by copyright and patent law. This presentation is for your information
and may be used for teaching purposes with reference to the copyright.
Any commercial use needs a written agreement.
In case you wish to use Limbic® we look forward to hear from you:
Gruppe Nymphenburg
Dr. Hans-Georg Häusel
Seidlstrasse 25
D-80335 München
+49 / 89 / 54 90 21-0
hg.haeusel@nymphenburg.de
www.nymphenburg.de


Positioning of a Brand


Practice Seminar - Brand Leading

42

Brand appearance and tonality

„The brand lives on the inner picture“

© Heinz G. Zenk


43

© Heinz G. Zenk

World´s Top 20 Most Valuable Brands
Rank Rank
2005 2004

Brand

Brand value 2005
in bn. Euro

Change to
2004 in %

Country
of origin

*Revaluation because of an extended data basis
Source: Interbrand / Business Week


45

Brand value and brand confidence
The consumers meaning of „trustworthy brands“
is to reduce risks at buying decisions.
Brand confidence amplifies the buying
loyalty compared to these brands.
Confidence is a psychological
condition, while consumers are
ready to accept troubles.
First of all, the continuous
relationship to the consumer
and the factors product
quality, value / benefit
ratio and brand identity
are main parts to
the brand confidence.

© Heinz G. Zenk


46

Testing the brand confidence
The question to the election of the most confident brands in 30 product categories:
„Tell us the brands you trust the most.“
Quality:
The brand offers high quality by excellent products / services.
Price / Equivalent Value:
The brand offers a high equivalent value to the customer for its money.
Undisputed Image:
The brand has a unique brand identity - expressing something related to its consumers.
Knowledge of the customers needs:
A brand, whereby the company knows the consumers wishes and manufactures products,
due to the consumers needs.

© Heinz G. Zenk


47

Brand appearance and tonality
Real U.S.P.´ s are not expectable of
consumer goods and services.

+
=

Product- / Offer - Standalones are copied often.

The more important is a unique brand character, that
separates you from your competitors:
a brand character that adds psychological benefit.
© Heinz G. Zenk


48

Positioning of a brand

© Heinz G. Zenk


49

Target objective and strategies
„The key for bracing the brands in the heads of the consumers, requires many years of planing
and positioning, as well as continuity within all communications and measures.“

Positioning of brand identity

„Every brand has its own, unique face.“
( Domizlaff )

© Heinz G. Zenk


50

McDonald´ s brand identity

© Heinz G. Zenk


51

BMW´ s brand identity

© Heinz G. Zenk


52

Packaging and Design
„Branding bestrides all specific measures for developing a brand, which are qualified for
elicitating an offer from the opulence of other, equivalent offers and realizing an unique
allocation to a specific brand.“
The expression „Branding“ is based likely on the history of the american settlers, who
stigmatized / branded their cattle. With a unique sign for every cow, they knew who its owner
was.
„Branding must not be realized fragmented, because it is more than the sum of all of its parts:
Branding has to be realized / designed within the rules of the magic branding triangle !“

© Heinz G. Zenk


53

What kind of brand aesthetic has a packing to have ?

Harmony

Modernity

Emotionality

Culture

BRAND AESTHETIC

Familiarity

Feasibility

Complexibility
© Heinz G. Zenk


54

Basic brand strategies

© Heinz G. Zenk


55

1. Single brand strategies
At a single brand strategy, own specific brands are created for the single products of a
company and enforced into the market.

One brand = One product = One promise

© Heinz G. Zenk


56

1. Single brand strategies
-Single brands are of importance, if a company orients its heterogeneous products to different
customer target groups and segments.
- Single brands are qualified for innovative products that open the gates for new marketing
sectors.
- Single brands offer a variety of advantages by clear and top positionings.
- On the other side, the risks of single brands expose more and more because the
investments into leading brands in fact increase, but this fact is often unseen by the
consumer.
- You can find single brands primary within the industry of consumers goods. In other
branches
- for example the attendance / service sector - most of the time there is no need of profiling
singletrend : Single brand strategies are reconsidered
New products.

Causes :
1.)

Single brands are more and more completed in form of an umbrella brand as
despatcher: Standing for Trustworthiness and Competence

Nestlé , Unilever, Procter + Gamble
© Heinz G. Zenk


2.)

57

On the other side, more and more stretchings by single brands and product line
extensions occure.
For example: Coca Cola, Coca Cola Light, Cherry Coke etc...

Umbrella brand strategies
The umbrella brand strategy is the opposite to the single brand strategy. An umbrella
brand covers all products a company offers.

Examples: Siemens, IBM, Axa, Yahoo, BMW, Mercedes etc...

Umbrella brands are chosen, if :

- a product´ s or service extent is too large for a useful single brand strategy (e.g. Siemens)
- the target group / positioning do not vary or vary little (e.g. IBM)
- the product´ s programme or essential parts are subject of modical changes (e.g. Gucci,
Amani, Jilsander )
© Heinz G. Zenk


58

Advantages of umbrella brand strategies
Advantages of umbrella brand strategies are based on the distribution of expenditures to brands, profiling (e.g.
advertising expenditures ) and all offered products. As well, an established umbrella brand offers a jump-start
for the introduction of new products, because there is already a „brand goodwill“ at the trade / consumer.

Disadvantages of umbrella brand strategies
The wider and heterogeneous the product / service range within an umbrella brand is, the less the brand is
able to position itself on the market.
Familiarity, competence and faith are the reasonable attributes !

© Heinz G. Zenk


59

Family brand strategies
At the family brand strategy, a integrative brand is chosen for a product group or product
line. Within the company, several product lines may exist with various brands. Aim of this
strategy is to let all products of one product line take profit of the product group specific brand
image, if an integrative need (USP) is conceivable.

© Heinz G. Zenk


60

Advantage of a family brand strategy
A family strategy is the combination of the profiling advantage of a single brand together with
the economical advantage of an umbrella brand

Disadvantage of a family brand strategy
When profiling single products, the base positioning of the brand core has to be considered
always. Apart from that, the risk of discolouration of the brand image exists.

© Heinz G. Zenk


61

Facets of the brand potential
Strong brands have a great brand potential for a brand stretching.

Adaption of the brand positioning
The adaption of the brand positioning is a matter of changing the perception of the brand by
the customer. Possible adaptions within the brand positioning are based on two aspects:

- on the already existing brand positioning within the perception of the customer
- on the ideal, which customers have from a product within the category

Further development of the brand structure
A further development of the brand structure might be necessary, if a company sees
potentials for new products or if a company´ s product range increases as time passes by.

Two approaches:
- Stretching the brand structure for further products
- New structure of the brand portfolio without integrating new products into the range
© Heinz G. Zenk


62

Stretching the brand structure
Besides the complete new development of a brand, companies have the possibility to change
an existing brand, even for additional products.

Well known trade options are:

-Line extension
-Brand extension

© Heinz G. Zenk


63

© Heinz G. Zenk


64

Advantages of successful line extension
- Starting with a well known base brand
- Setting up on a more emotional / symbolic brand image
- Intensive support by advertising and above the line promotion
- Basically to be earlier on the market than the competitors products
- To depend on the company´ s size and its marketing capabilities
- To participate at a market extension for the brand

Brand extension
At the alternative solution to the further development of the brand structure brand extension,
positive image aspects are being assigned from products to another product. An important
factor for successful market extension is the image affinity between the outgoing brand and
the extended product.
The classical arrangement of single- family- and umbrella brands is not the actual stat,
according to the complexity of our time.
As well, the demand for the design of brand architecture gets more and more complex by:
- an increasing offer and brand portfolio
- mergers and acquisitions
- aggrevated requirements in different markets
© Heinz G. Zenk


65

The more important a brand stretches its operating sector, the more appropriately is the
addition of subbrands to the brand.

Caution of negative reactions of the brand extension for the main brand !

Results of potential brand extensions show up, that no hastily expectation without a detailed
analysis of concept and realization should be made. Only with positive acceptance, image
transfer comes up and disburses itself into the main factors.

Brand licensing
If a potential for extending the brand has come up when making the stretching analysis , and
the company has not the capabilities to produce a new product itself, a „licensing“ has to be
checked.

When licensing a brand, the owner of the brand grants another company
to use his brand for their own products.

(Bö
ll)

© Heinz G. Zenk


66

The „right to use“ refers to:

- new products, that the owner does not trade itself (e.g. Joop perfume)
- to regions, in which the brands owner is not present with own products.

As return for the right to use, the licensee commits himself to abide the contractial demands
and to pay a licensing fee.

Originally, licenses are known from the marketing with cartoons and movies. The marketing
with licenses is increasing rapidly !
Well known german licensing brands refer to the areas of fashion. ( Boss, Joop, Jilsander,
Porsche )
French licensing: Pierre Cardin, Yves Saint Laurent, Louis Ferrand etc...

© Heinz G. Zenk


67

The assignment of brand licenses is a lucrative source of income for companies. With the
assignment of brand licenses, you can enter new markets flexible and without a big risk.

Ingredient Brand
Ingredient branding defines the marking of materials, components and parts that are used in
other products and its achievements are percepted by the customer as independent part of
those products.
( Keller, Baumgarten)

© Heinz G. Zenk

Global brands

It is the aim of that brand strategy, to improve the international
competitive ability. Integration of all company activities in an
overall system. Instead of responding to wishes and needs, the
education of advantages followed by a standardized mass
production comes in first place.


Global Brands

„Global branding“ must not be understood in a way, that a brand
is present worldwide with the same marketing - mix. You can
define a global brand as unique and consistent combined with the
brands core, its brand world and its positioning that separates a
global brand from the other brand types.

„As standardized as possible, as differentiated as
necessary“
...is the device of a company´ s practice.
Trend notion: GLOCAL MARKETING


70

Learnings for the new „Speed to Market“ - brand leading
- Rapid marketing as a tactical weapon
- Single brands are leaving - Umbrella brands are approaching
- Successful brands need ratio and emotion
- Brand value signals and its quality are important factors for creation of value
- Brand synergy is more effective for less input / money
- Economy of Scale within the european market is reached by the strategy of
the
calculated inexactness
- The two - class - society of the brands clarifys potentials : Global or Local
Brand
- The trade and media as brands have to be calculated in the future
- Extension marketing dominates the competition
- Experience marketing creates make a good mind to brands

For many decades, the advertising agency Grey has developed and perfected - in a very
evolutional process - important instruments and techniques for the future. These instruments
have been categorized into a system. The architecture of successful brands

© Heinz G. Zenk


71

The new world of strategic brand leading
Marketing has reached a new level. Before, there was speed, nowadays it is turbo.
Yesterday, there was think big. Today it is called think fast. The rapid development forces
one to reorient the opinion. New instruments have to update and make the well known
marketing rules futurable.

© Heinz G. Zenk


72

Summary and Outlook

- The importance of global brands will increase
- The future belongs to the global „Mega Brands“
- Especially company brands, umbrella brands and brand families will extrude
single brands
- Big umbrella brands may trade more product lines parallel, that offer cover all
needs like „well being“ or „personal hygiene“

- Huge umbrella brands increase the possibilites of useing synergies. The
tendency of extending already existing umbrella brands might be endangered
by the growing importance of the Internet and E-Commerce.

Within this new, basically very global and virtual world, marketing has become
a lot easier with wide spreading ranges within an umbrella brand.

- You can increase the familiarity of domains, web sites etc... by combining
classical communication.

© Heinz G. Zenk


73

Trade- and Service brands and their meaning for the future
What are trade- and service brands ?
The difference between trade and manufacturer brands refers solely to the owner:

„Trade brands are brands, that are legal holdings of a trading company.“
( Mü / Hagedorn)
ller
Targets:
-Increase of Income - Influence to the trade margin
-Profiling and differentation of competitive trading companies / Detachment of direct
comparison of price and effort
- Optimization of range / Replacement of slight manufacturer brands by trade brands
- Reducing the power of manufacturers and improving the own negotiation position / Inflated
pricing and conditions of the manufacturer are not realizable
- Stronger bonding of group members to the central office / Organizational bonding tools for
improving the team-feeling / cooperative partners.

© Heinz G. Zenk


74

Trade- and Service brands and their meaning for the future
Approaches of brand leading differentiate by:

- The trading company itself works as a brand by all meaning of a store brand !
- The trading company is leading own brands in different levels and product sectors.

Successful store brands dispose of a high level of brand awareness.

Aldi Germany - 96 %

OBI - 90%

IKEA - 70%

H & M - 37%

© Heinz G. Zenk


75

Example
For example, IKEA stands for a unconventional, swedish furniture store,
that provides a lot of ideas for the own home. This fact reflects itself within
the slogan „Discover the possibilities“. Also, you have the visual
imagination of a moose and the colors yellow and blue, and almost
everybody knows, that IKEA provides furniture to pick up for self assembly.
Ikea is considered as a friendly furniture store.

The central eye of a needle at the development of a store brand, is the
transfer of the communicated positioning message into a integrative and
independent realization in place.

© Heinz G. Zenk


76

Attributes of the Service Brands

The specific characteristics of services lead to a special „necessity of the marking of services“
and on the other side to the consideration of specific „porblems of the marking politics“ of
service companies.

The development and relative meaning of service brands is intended by different influences of
the market and the acting of market participants. Trespassing are thereby:

1.)

General increase of classical services within the consumer- ( consumer services )
and business - to - business market ( investive services )

2.)

Arise of new service markets e.g. by technological developments ( Internet )

3.)

Increase of the service contingent at special goods ( so called „product
accompanying services ) by increased service need at the customers

© Heinz G. Zenk


77

Internationalization of service brands
The trend to the international service offer is enormously.

1990 Two service brands to the 20 image strongest brands of the world

1999 Five international service brands AOL - Time Warner, Amazon etc...

German Internet Warehouses
Regarding the enormous meaning of the competitive factor service quality, the service brand
has the task to realize the intension. Coming from the atomization of the media and the
information overload, the demand of a concise structure of service brands is inevitable.

© Heinz G. Zenk


78

Different types of franchising
Within the last years, a significant change in the franchise - area is recognizable. Beside the
goods orientated system concepts, a huge amount of service partners arised. Franchise may
also stand for that the franchiser offers a service concept with a specific advertising- and
financing concept.
According to that, the following types of franchising exist:

Trade franchising
The franchise taker obliges himself to sell only selected goods in his store. The
store of the franchise taker does not wear his name, it wears the brand name of the
franchiser. (e.g. building market )

Service franchising
The franchise taker offers services in the name of the franchiser, and obliges
himself to meet determined rules and demands. (e.g. musician school, hotels )

Production franchising
According to instructions and the production concept of the franchiser, the franchise
taker manufactures a specific product himself, and sells it in the name of the
franchiser. (e.g. beverage filling company)
© Heinz G. Zenk


79

Media as brands
Within the modern media society, the familiarity of brands is
communicated mainly through mass media. By far, you can say:

„Media create brands“

But, not solely media create brands, sometimes media are brands
itself, which means that they may be umbrella brands as senders
and produce at the same tame single program brands.
A lasting and successful costumer- and competitor orientation
implifys within the media sector a „profiling of the provider“, the
unique, good reputation within the customer- and acquisition sector,
as well as within the relevant parts of the publicity.
The good image helps the media to get well known faster and
better.

© Heinz G. Zenk


80

The Media as medial and producer
When we think of media, we think of „institutions“:

- Publishers
- Radio stations
- TV stations

as well as „technical end applications“:

- Distribution channels
- Cable channels
- Telecommunication systems

at the demand of Music, Images, Movies and TV programs.

© Heinz G. Zenk


81

The Media as will and imagination
The media brand stands for an offer, that indicates its comparable content and provides quality
in larger dimensions, by showing up its origin. The brand is inasmuch a „will“, because, just
with a good product and marking, a success is not guaranteed. After the introduction of pay tv,
the profiling of the regular tv stations has become more important.
The audience wants to have a quality - warantee for its money.

The entry into the TV and online business
The entry into the TV and online business provides its own chances. The forecasts of the
future meaning of online media tell us, that the appearance within the classical TV is a „push media“, and the visit on a website is a „pull - media“. These online visits are within the
interactive TV of the future very easy to realize, as well as on a mobile phone with internet
access.
On the other side, the internet is capable to communicate just like a magazine in the tv
program or print media.

Cross selling, media group, integrated communication.

© Heinz G. Zenk


82

Brand controlling

© Heinz G. Zenk


83

Brand controlling
Factural basics:
Brands indicate material economy goods to mark other economy goods. In case of commercial
purchase of the right of disposal. They belong to activation obliged economy goods of the fixed
assets.

Brands never cover only one performance category, (e.g. goods ) they always cover a package
of achievements (e.g. goods and services), which „packaging“ is essential for the user.

Inasmuch, a separation of the value evaluation is necessary, that may be realized for:

- the brand as „trademark“ or
- the good, that is marked with the brand or
- for both ( but separated ).

© Heinz G. Zenk


84

The brand is an achievement package, that consists of the following components:

- Images
- Letters
- Numbers
- Sounds
- Three dimensional design (including the „brand - carrier“ or its packaging )
- Any other presentations (including the colors and color composings )

By marking, a combination of two achievement packages is created:

Brands and Good- / Service achievements

Task of the use is the ability to differentiate of the marked „brand - carriers“ within the
competition of the economy units, that provide / create the marked achievement attributes.

© Heinz G. Zenk


85

Brand controlling means:
- Leading
- Supervision
- Control

.. of brands. Divided into:

- strategic ( which means preservation and increase of success potential) controlling of an
- operative controlling ( which its task is to refer to the supervision and controlling the
realization of measures )

© Heinz G. Zenk


86

Instruments of brand controlling:
Instruments of brand controlling are known as the entirety of the process for realizing:

- tasks of forecast, rating and decision.
- tasks of documentation and report

The use of these instruments is based on the effort of the target objective and the efficiency.
The perception of the controlling function needs marketing - brand managers.

Strategic
- Brand „early“ warning systems
- Analyses of the brand- and brand product portfolio
- Brand benchmarking
- Analysis of the future usability possibilities of the brands
- Strategic planning of the brand budget

© Heinz G. Zenk


87

Trademark laws and trademark protection

The signification of a brand within the legal linguistic usage is used in an other way, than in the
economally. Economists differentiate between un-branded and branded objects and basically
define a brand:

- Milka brand
- Pit Stop brand for services
- Walmart brand as a brand for an enterprise

On the other side, the legal language - e.g. within the brand law - provides the expression
„Label“ for branded objects. The brand law unites different issues, i.e. brands for goods and
services, business significations, as well as geographical origin. Inasmuch, it is
understandable, that the full title of the brand law is called „Law of the security of brands
and other labels“.

© Heinz G. Zenk


88

Legal basis of the security of brands

The relevant legal order for the security of brands is marked by high complexity and dynamics.
You can recognize the „complexity“ because, in principle several legal sets of rules take up the
security of brands.

National area ( brand law )

- Law against the mean competition
- Civil law book
- Commercial code

International area

- Madrid brand agreement
- Paris federation agreement for the security of mental property
- Community brand agreement
© Heinz G. Zenk


89

Legal basis of the security of brands
At international brand strategies, all national brand strategies have to be considered. There do
not yet exist identically rules within the EU member states.

Trademark law

Brand law

Goods- and Services marks

Brands

Collective marks

Collective brand

Equipment

By use and acquisition of brand law, caused by traffic validity

Indication-rolls

Brand register

Homogenity

Similarity

Free mark

Usual signification

Annoyance exciting representation

Offences against the public order or against the good customs

© Heinz G. Zenk


90

Information about the security of brands by enrollment
The security of brands may developed by three causes: (brand law) By enrollment into the
brand register at the patent office or by using a sign and acquisition of traffic validity or by
notorius familiarity due to the rules of the paris federation agreement.

Brand form

Example

Sound

accustical announcement of a tv show

three dimensional sign

granini bottle

color

magenta

color combination

magenta / grey

smell character

freshly cut lawn for tennis balls

taste character

stamp, that tastes like flowers

movement sign

movement of the right forefinger up to the nose wing

© Heinz G. Zenk


91

Brand Communication
The brands value is formed by the relations of the consumers according to measures for designing
the „marketing - mix“.

The brands value is the indicator for the increase of the marketing productivity, and its the erection
of faith into the brand. That´ s why the positioning of the brand has to be clear and independent.
© Heinz G. Zenk

Best Practice Nestlé

The corporate brand Nestlé has three functions:
1.
The corporate logo of the group
2.
The umbrella brand name for the products mentioned (40 % of total sales)
3.
The quality label that does not only stand for the membership to the group, but also for
the corporate responsibility as well as for the quality and reliability of the products
For the future brand management Nestlé states two objectives:
1.
The dimensions of experience for the single brands should become more rich and
manifold in the perception of their target group
2.
The partially very tight relationship between a brand and its customers and the resulting
knowledge are to be used in future for other brands
Success factors in bringing together corporate strategy and corporate brand
management
The group management is responsible for a continuously strategic planning process. The
main
and most important results will be communicated to all employees by the „Blueprint for the
Future“.
Although Nestlé concentrates its attention to the six global brands, its overall strategy and
brand management aims – in contrast to its competitors Kraft and Unilever – at a balance
between global and local brands. The local anchoring of the brand management enables a
communication that considers the needs of the target group much better. Thus long-term
customer relationships are built whích go far beyond rational purchase decisions, having the
cost-benefit in mind. They rather bring out an emotional surplus value.

Advertising is a Top-Level Matter

Advertising is too important to be delegated too far down
the management structure, so there needs to be regular
top-level contact between Nestlé and its agencies.
In particular, decisions on advertising strategy and
creativity must be made at a high level.
It is also important that not too many levels are involved (it
is awkward if seven levels can say no and one level can
say yes).


Types of Advertising

Advertising
Product

Pioneering

Competitive

•Explain
a new
product

•Emphasise
unique
benefits
•Compare
with
competition

Institutional

Remind/
reinforce
•Remind
a product
•Reinforce
benefits
•Encourage
repeat
purchase

Advocacy

Image
building
•Information •Communicate
a view on an •Reinforce
on new
image
developments issue
Pioneering

•Create/
maintain
character
of
organisation


The Five Ms of Advertising
Message
Money
Mission
•Sales goals
•Advertising
objectives

Factors to consider:
•Stage in PLC
•Market share and
consumer base
•Competition and
clutter
•Advertising
frequency
•Product
substitutability

•Message generation
•Message evaluation
•Message execution
•Social-responsibility
review

Media

Measurement
•Communication
impact
•Sales impact

•Reach, frequency,
impact
•Major media types
•Specific media
vehicles
•Media timing
•Geographical
media allocation

„Aldi“ is in Front
Market check of trading firms
Rank
2005

Rank
2004

Company

Grade

Total score

Explanation: The jury gives school-grades for seven equivalent categories. In order to improve graphic
representation the grades are transferred into scores. A grade of 1.0 transfers into 50 points, 2.0 transfers
into 40 points etc. (6.0 = 0 points)
Source: bestseller


Roles of Advertising

Advertising also can be explained in terms of the four roles it
plays in business and in society
Marketing
Communication
Economic
Societal


Integrated Marketing Communication

Marketing communication tools include advertising, sales
promotion, direct marketing, public relations, packaging, and
personal selling. In companies that use IMC, marketers
coordinate all marketing communication messages to create
synergy, which means each individual message has more
impact working jointly to promote a product than it would be
working on its own.


big

Leading instruments of
integrated communication

TV advertising
Print advertising
Poster advertising
Broadcast advertising
meaning for the
integrated
communication

Cinema advertising
Instruments of
integration
Above the line measures
Trade fairs
Following instruments

Event marketing
Sponsoring

Internet - Communication
Personal trade
Multimedia - Communication
Direct mails

small

freedom order of communication design

big


Convenient Communication Model
What is the company´ s basic target ?
What is the special marketing target ?
Summary of problems and chances
Confrontation of possible strategic options and decision out of that, which
will be the most successful solution for a user / customer problem
Fixation of the communication platform
Above the line promotions ( AL )

Advertising

Public Relations ( PR )

Specific fixation of the problem,
which is mainly to solve by AL
promotions.

which is mainly to solve by
Advertising.

which is mainly to solve by
Public Relations.

Out of that, the target of AL
promotion results.

Out of that, the Advertising target
results.

Out of that, the PR target
results.

Definition and formulation of the
specific PR target group,
emotionally and rationally.

Definition and formulation
of the specific PR target group,

Definition and formulation
of the specific PR target group,

Mission concept:
Learning effect

Design concept: Media concept:
AL - Message

Design concept:

Media concept:

Learning effectAdvertising Message Learning effect

Design concept:

PR - Message


Criteria for Selecting an Advertising Agency

Relative size

Type of help
required

Specialism

Agency
selection

Business ability

Location/
Accessibility

Track record

Compatibility/
Empathy

Types of Agencies

Full Service Agencies
Specialized Agencies
Industry-Focused Agencies
Minority Agencies
Creative Boutiques
Media Buying Services
Virtual Agencies


What is Creative Advertising?

Benefits Strategy
The promotion emphasizes what the product can do for the
user by translating the product feature or attribute into
something that benefits the consumer. For example, a GM
electric car ad focuses on the product feature (the car doesn’t
use gas) and translates it into a benefit: lack of noise (no
pistons, valves, exhaust).
Promise
A benefit statement looks to the future and predicts that
something good will happen if you use the product. For
example, Dial soap has promised for decades that if you use
Dial, you will feel more confident.


What is Creative Advertising?

Reason Why
A type of a benefit statement that gives you the reason why you
should buy something, although the reason sometimes is
implied or assumed. The word “because” is the key to a reasonwhy statement. For example, an Amtrak ad tells you that travel
on Amtrak is more comfortable than on a plane because Amtrak
is a more civilized, a less dehumanising way to travel.
Unique Selling Proposition (USP)
A benefit statement that is both unique to the product and
important to the user. The USP is a promise that consumers will
get this unique benefit by using this product only. For example,
an ad for a camera states, “this camera is the only one that lets
you zoom in and out automatically to follow the action.”


Integrated Marketing Communications
Carefully blended mix of promotion tools

Personal
Selling

Advertising

Sales
Promotion

Public
Relations

Consistent, clear and
compelling company
and product messages

Direct
Marketing


Common Communication Platforms
Advertising

Sales Promotion

Print and broadcast ads Contests, games,
Packaging-outer
sweepstakes, lotteries
Packaging-inserts
Premiums and gifts
Motion Pictures
Sampling
Brochures and booklets Fairs and trade shows
Posters and leaflets
Exhibits
Directories
Demonstrations
Reprints of ads
Coupons
Billboards
Rebates
Display signs
Low-interest financing
Point-of-purchase displaysEntertainment
Audiovisual material
Trade-in allowances
Symbols and logos
Continuity programs
Videotapes
Tie-ins

Public Relations Personal Selling Direct Marketing
Press kits
Speechers
Seminars
Annual reports
Charitable donations
Sponsorships
Publications
Community relations
Lobbying
Identity media
Company magazine
Events

Sales presentations
Sales meetings
Incentive programs
Samples
Fairs and trade
Shows

Catalogues
Mailings
Telemarketing
Electronic shop
TV shopping
Fax mail
E-Mail
Voice mail


Marketing Tactics and Strategies

Sales promotion is a tool that cuts across all the
components of the brand.
That is why the balance of tactics and strategy is
so important in using Sales promotion effectively.
Sales promotion is a range of price and value
techniques designed within a stratic frame work to
achieve specific objectives
by changing any part of the marketing mix,
normally for a defined time period.


What Sales Promotion can Do?
10 core promotional objectives
Increasing Volume
Increasing trial

Widening usage
Creating interest

Increasing repeat
purchase
Increasing loyalty

Gaining intermediary
support
Discriminating among users

Creating awareness
Deflecting attentions from
price


Sales Promotion Techniques
Major consumer – promotional tools

Samples:
Offer of a free amount of a product or service
delivered door to door, sent in the mail, picked
up in a store, attached to another product,
or featured in an advertising offer.
Coupons:
Certificates entitling the bearer to a
stated saving on the purchase of a specific
product: Mailed, enclosed in other products or
attached to them, or inserted in magazine and
newspaper ads.



Cash Refund Offers (rebates):
Provide a price reduction after purchase rather
than at the retail shop: consumer sends a
specified “proof of purchase” to the manufacturer
who “refunds” part of the purchase price by mail.
Price Packs (cents-off deals):
Offers to consumers of savings off the regular
price of a product, flagged on the label or
package. A reduced-price pack is a single
package sold at a reduced price (such as two
for the price of one). A banded pack is two
related products banded together (such as a
toothbrush and toothpaste).



Premiums (gifts):
Merchandise offered at a relatively low cost or
free as an incentive to purchase a particular
product. A with-pack premium accompanies the
product inside or on the package. A free in-themail premium is mailed to consumers who send
in a proof of purchase, such as a box top or UPC
code. A self-liquidating premium is sold below its
normal retail price to consumers who request it.
Frequency Programs:
Programs providing rewards related to the
consumer’s frequency and intensity in
purchasing the company’s products or services.



Prizes (contests, sweepstages, games):
Prizes are offers on the chance to win cash,
trips, or merchandise as a result of purchasing
something. A contest calls for consumers to
submit an entry to be examined by a panel of
judges who will select the best entries. A
sweepstake asks consumers to submit their
names in a drawing. A game presents
consumers with something every time they buybingo numbers, missing letters – which might
help them win a prize.



Patronage Awards:
Values in cash or in other forms that are
proportional to patronage of a certain vendor or
group of vendors.
Free Trials:
Inviting prospective purchasers to try the
product without cost in the hope that they will
buy.
Product Warranties:
Explicit or implicit promises by sellers that the
product will perform as specified or that the
seller will fix it or refund the customer’s money
during a specified period.



Tie-in Promotions:
Two or more brands or companies team up on
coupons, refunds, and contests to increase
pulling power.
Cross-Promotions:
Using one brand to advertise another
noncompeting brand.
Point-of-Purchase (POP) Displays and
Demonstrations:
POP displays and demonstrations take place at
the point-of-purchase or sale.


Major Business - and Sales-Force-Promotion Tools
Trade shows and conventions:

Industry associations organize annual trade shows and
conventions. Business marketers may spend as much as
35 percent of their annual promotion budget on trade
shows. Over 5,600 trade shows take place every year,
drawing approximately 80 million visitors. Trade show
attendance can range from a few thousand people to over
70,000 for large shows held by the restaurant or hotelmotel industries.
Participating vendors expect several benefits, including
generating new sales leads, maintaining customer
contacts, introducing new products, meeting new
customers, selling more to present customers, and
educating customers with publications, videos, and other
audiovisual material.


Sales contests:

A sales contest aims at inducing the sales force or
dealers to increase their sales results over a stated
period, with prizes (money, trips, gifts, or points) going to
those who succeed.


Specialty advertising:

Specialty advertising consists of useful, low-cost items
bearing the company’s name and address, and
sometimes an advertising message that sales people give
to prospects and customers.
Common items are ballpoint pens, calendars, key chains,
flashlights, bags, and memo pads.


Promotional Mechanics
Classification of promotion mechanics
Promotional type

Immediate

Delayed

Value

Free in-pack

Free mail-in

Reusable container

Competition

Instant win

Free draw

Home sampling

Self-liquidator

Free on-pack

Charity promotion

Pence-off flash

Next purchase coupon

Buy one, get one free

Cash refund

Extra-fill packs

Cash share-out

In-store coupon

Buy-back offer

Price

Finance offer


Choosing the Right Agency!

A relationship with a sales promotion agency
normally starts with a pitch!
pitch
Prepare the background information properly
Don’t ask more than three agencies to pitch
Write a proper sales promotion briefing and
allow time for it to be responded to.
Decide quickly and objectively.
Give the losers the chance to learn how they
could have done better


Promotional Objective
Promotional briefing

The business and marketing objectives are
established and it is known what sales promotions
you are going to do as marketing activities within a
campaign; so write a short promotional Briefing
(two pages of A4).

The most important document!


1 What is the strategic nature of the brand – its positioning

and differential advantage?
Coming from six C´s and the marketing mix-offer.

2 What is the promotional objective – only one –

3 Define how you will know it has been a success. Find the

particular Key Performance Indicator (KPI) that you need to
KPI
measure whether you have achieved success.


4 Who are the people whose behavior you want to influence?

What are they like and what interest them?

5 What behavior do you want them to reinforce or change – what

exactly do you want them to do?
6 What are the operational constraints of the promotion –

budget, timing, location, product coverage and logistics?


The Brief to the Result
STAGE 1 FEASIBILITY
Brief

STAGE 1
FEASIBILTY

Possible concepts

Budget

Timings

Communications

Logistics

Legalities

Short-list and check against objectives

Short-listed concepts


STAGE 2 CHECKING

STAGE 2
CHECKING

Budget

Timings

Communications

Logistics

Legalities

Outline plans, visuals and copy
Check back to brief, evaluate and select
Top concept
Define success


STAGE 3 IMPLEMENT

STAGE 3
IMPLEMENT

Finalize
copy and
design

Finalize
communication
materials

Finalize
administration

Finalize
offer
materials

Establish
evaluation

Check all legalities
Make detailed operational plan
Run the promotion
Evaluate results against success criterion and brief


Who Holds the Key to the Business Problem?

Wholesaler

Factory

Retail showroom

Retail showroom

Shop counter

Depot

Buyer

End-users


The Nature of Internet Marketing

As more and more homes and businesses either
get connected with or develop their own websites, the Internet has become an increasingly
important tool of marketing.
Smith and Chaffey (2001) and Smith
and Taylor (2002) summarise the main benefits of
investing in e-marketing as the 5Ss:


Sell. Selling goods and services online, potentially
to a global market.
Serve. Using the website as a way of providing
additional customer service or of streamlining
service delivery.
Save. Saving money in terms of the overheads
associated with more traditional forms of doing
business.
Speak. Websites offer companies a chance to
enter into one-to-one dialogue with customers more
easily than ever before. As well as providing valuable
feedback, with good database management, that
dialogue can be the basis for fruitful customer
relationship management.

Sizzle. A website that is well designed, both in terms
of its content and its visual impact, can add an extra
‘something’ to a brand or corporate image through
engaging, educating, and/or entertaining the visitor
to the site.
Increasingly, organisations are introducing
an element of fun into their websites to grab and
retain attention. Interactive games, webcams and
video feeds, cartoons, free downloads and relaxed
informality have all been introduced to keep the
viewer’s attention and to make company and
product information more interesting.


Whatever its purpose, and however much is spent
on it, a website should provide a powerful
supplementary marketing tool.
It should have all the creative flair of an advertisement,
the style and information of a company brochure, the
personal touch and tailored presentation of face-toface interaction and, not least, always leave the visitor
clear as to what action should be taken next.

For some small businesses, the internet can become
a valuable means of communicating with a potentially
global audience easily and cost-effectively, freeing
them from the constraints of geographic catchment
areas.


E-Mail Marketing Evolution

First Generation
Broadcast/SPAM
•High volume/low cost
•Send and forget
•Generally not relevant

Second Generation
Permission marketing
•Responsible
•Poorly segmented
•Minimal personalisation
•Approaching bulk mail

Third Generation
Precision marketing
•Focus on individual
•Dialog-based
•Utilises reply button
•Minimised opt-out
•Builds brand affinity
•Mail worth opening

Rizzi (2001), Copyright 2002 e-Dialog Inc.


The Principal Characteristics of the Internet as
an Advertising Medium

Advantages

Disadvantages

 Message can be changed quickly and
easily
 Interactivity possible
 Can create own pages cheaply

 Limited visual presentation
 Audience not guaranteed
 ‘Hits’ may not represent interest
– casual browsers
 Relies on browsers finding page
 Can create irritation
 Large numbers of target groups
my not use Internet yet
 Creative limitations

 Can advertise on others’ web pages
 Very low cost possible
 Very large audience potential
 Direct sales possible
 High information content possible on
own web pages


Marketing Uses of the Internet

Research and planning tool
 Obtain market information
 Conduct primary research
 Analyse customer feedback and response
Distribution and customer service
 Take orders
 Update product offerings frequently
 Help the customer buy online
 Process payments securely
 Raise customer service levels
 Reduce marketing and distribution costs
 Distribute digital products

Marketing Uses of the Internet
Communication and promotion
 Generate inquiries
 Enable low cost direct communication
 Reinforce corporate identity
 Produce and display product catalogues
 Entertain, amuse and build goodwill
 Inform investors
 Detail current and old press releases
 Provide basic product and location information
 Present company in a favourable light – history,
mission, achievements, views, etc.
 Educate customers on the products, processes, etc.
 Inform suppliers of developments
 Communicate with employees
 Attract new jobs recruits
 Answer questions about the company and its products

Types of Service Suited to Fixed and Mobile
E-Commerce


A Promising Future – Until 2010 the Technical
Problems are Solved
The cost of smart tags still limits its usage

© © Heinz G. Zenk The Powerhouse of Marketing
Heinz G. Zenk – – International Basic Seminar

Future of the Brand/Communication

Within the global capitalism,
entertainment is the „opium
for the people“, the meaning
of moral is resulting by the
new interaction of capitalism
and entertainment.
(Bosshart)



The society disintegrates into „choice communities“.
Individual rules replace the traditional social moral.
Faith will become the base of the living together.
Self obligation on time is the new moral norm. Instant
faith becomes an offer. ( Klippermann )



Will brands become a substitute religion for a new leisure timeand fun community ?
In the USA, the symbolism of a Nike- or a McDonald´s
sign, is better understood by young people than the
symbolism of a curch cross
Brands replace increasingly cultural values:


F6.0 advertising sales_promotion_and_public_relations

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