Importance Of Brand Value


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Brand Value Paper for MKTG 5000, Webster University Communications Management Graduate Program

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Importance Of Brand Value

  1. 1.   Morales-Neufeld 1Fran Morales-NeufeldProfessor Drew StevensMKT 5000 Marketing29 November 2011 The Importance of Brand Value to the U.S. Hispanic Market Gary Armstrong and Philip Kotler, authors of “Marketing: An Introduction,” remind usthat branding should be the key element in the company’s relationship with consumers — orrather it’s a kind of promise a company makes to a consumer (228). Branding is a company’s face to the world. Whether it’s a name or how that name isvirtually expressed through a logo, branding is the quickest way for one’s company to expresswhat it is and what it has to offer (Varallo, Michael. Increase Brand Value Through PositiveMarketing.). In keeping with Telemundo’s original mission — or positioning statement — to enrichthe lives of Hispanics in the United States and audiences worldwide through content thatinforms, empowers, inspires, and entertains, the Spanish-language network has continued toreinvent itself to keep up with the times and with the growing and changing Hispanicdemographic (Telemundo Original Content Drives Growth. Telemundo’s commitment — or value proposition — to producing high-qualitymultimedia content for U.S. Hispanics is delivering powerful results for marketers and leadingbrands like JP Morgan Chase (Telemundo Original Content Drives Growth. Withmultiple platforms — or product mix — to reach the nation’s fastest-growing demographicsegment, Telemundo has a robust source of entertainment, news and sports that reaches 93percent of U.S. Hispanic viewers in 210 markets through 16 owned and operated stations, 45broadcast affiliates and 800 cable affiliates (Telemundo Original Content Drives Growth.
  2. 2.   Morales-Neufeld The network also offers its services in 35 languages, reaching audiences in 104countries around the world (Telemundo Original Content Drives Growth. Value to Company Telemundo is recognized and differentiated as a Spanish-language network that developsoriginal content that is colorful but also provocative, smart, traditional, fresh, and dynamic —qualities that speak to the U.S. Hispanic market. It is one of two Spanish-language networks inthe country, holding number two rank alongside Univision. U.S. Hispanic viewers who prefer towatch Telemundo prefer it because it provides more variety in Television programming andcaters to the rainbow of different ethnic Hispanics as compared to Univision, whichpredominately caters to Mexicans. Those who insist on watching the network programming havecrossed over into the threshold of brand loyalty. In November, Telemundo delivered more than1.2 million total viewers (persons 2+) and 656,000 adults 18-49 during weekly primetime, whichwas the best November primetime performance in the networks history among total viewers,according to Nielsen (“Telemundo scores best November viewership,” Brand value is extremely important as it draws viewers and advertisers — key elementsthat help to increase profitability in the company. In order to build on its equity, Telemundo hasbegun to adapt to the explosion of social media channels and technologies, to speak to a newgeneration of consumers. They’ve even gone bilingual.Brand Value to Consumers Telemundo is more than just a cable network. To viewers it is linked with memories offamily gatherings and cultural identity. According to the Hispanic Advertisement Agency,
  3. 3.   Morales-Neufeld 3Hispanics are more prone to watch TV with their families — that includes their Spanish-speaking abuelos (grandparents) and their predominately English-speaking nietos (grandkids)(Chozick, Amy. Telemundo Blends English Into a Mostly Spanish Lineup). But while there hasalways been a strategy to develop telenovelas and programming for multigenerational families, ithas been static and in the past has not identified with acculturated Millenials who embraceEnglish and Spanish markets equally. The network has embraced a new strategy to speak to the growing number of second- andthird-generation Hispanic-American viewers with money to spend and the advertisers who wantthem using English-language subtitles and Spanglish (Chozick, Amy. Telemundo Blends EnglishInto a Mostly Spanish Lineup). To reflect the sensibilities of the cultural hybrids the network hascreated a crop of new telenovelas and debuted Cuban-born television personality and formerUnivision star Cristina Saralegui’s new variety show, which airs Sundays. (Chozick, Amy.Telemundo Blends English Into a Mostly Spanish Lineup). Without losing sight on its coreSpanish-dominant viewers, the network is rebranding itself to cater to the acculturated and morebilingual audience, said Telemundo’s president, Emilio Romano, after joining the network inOctober (Chozick, Amy. Telemundo Blends English Into a Mostly Spanish Lineup). More than 82 percent of Hispanics are bilingual, meaning they speak English more thanSpanish or Spanish and English equally, according to a report released this year by ScarboroughResearch, a consumer research firm (Chozick, Amy. Telemundo Blends English Into a MostlySpanish Lineup). The study also found that this demographic had more disposable income thanthe more Spanish-speaking recent immigrants, with 12 percent of acculturated Hispanic familiesyearly earnings of $75,000 to $100,000 (Chozick, Amy. Telemundo Blends English Into a MostlySpanish Lineup).
  4. 4.   Morales-Neufeld 4 Comcast Corp., the nation’s largest cable provider and owner of NBC Universal in partbring this macro level effort. Telemundo is part of the mega umbrella. The cable and broadbandprovider sees the investment. The 2010 Census revealed that more than half the total populationgrowth in the U.S. from 2000 to 2010 was because of the increase in the Hispanic population(Chozick, Amy. Telemundo Blends English Into a Mostly Spanish Lineup). In 2010, Hispanicsaccounted for 50.5 million people residing in the U.S. — a significant increase from 35.3 milliona decade ago (Chozick, Amy. Telemundo Blends English Into a Mostly Spanish Lineup). Advertisers have seen the change in the cultural landscape and have thus flocked toSpanish television in growing numbers. In the upcoming 2011-12 season, advanced advertisingsales at Telemundo have spiked 25 percent from the previous year to more than $400 million,and the price that advertisers pay per 1,000 viewers have doubled, according NBCUniversal(Chozick, Amy. Telemundo Blends English Into a Mostly Spanish Lineup). In addition to “Pa’lante con Cristina,” the network recently began airing “Una Maid enManhattan,” a telenovela based on the 2002 Jennifer Lopez movie and will be available withEnglish subtitles (Chozick, Amy. Telemundo Blends English Into a Mostly Spanish Lineup).“Más Sabe el Diablo” (“The Devil Knows Best”), which concluded in early 2010, also tookplace in New York and was available with English captions. In next year’s lineup of telenovelas,there will be “Caidas del Cielo” — a “Charlie’s Angels” inspired drama — and “Físico oQuímica” — about the complicated relationships at an urban high school (Chozick, Amy.Telemundo Blends English Into a Mostly Spanish Lineup). In addition, Telemundo’s bilingualcrossover Web site targets English-dominant Hispanics. As proof of performance, in July, ranked as one of the top three most
  5. 5.   Morales-Neufeld 5“engaged” video experiences among all television networks and ranked highest for “viewer”engagement among other Spanish-language websites, as measured by the number of videos pervisitor and minutes per viewer, according to comScore ( ranks top three mostengaged video experiences among all TV Networks in July. The site reports anaverage of 21.5 videos per viewer and 67.6 minutes per viewer. The network’s website deliveredtwice as many videos per viewer and minutes per viewer than (Telemundo.comranks top three most engaged video experiences among all TV Networks in It also recently delivered its best quarter ever, reporting a record in videostreaming with nearly 31 million streams delivered for the quarter, +128 percent in year-over-year growth ( ranks top three most engaged video experiences among all TVNetworks in July. In addition, delivered record uniquevisitors for the quarter, attracting nearly 3.5 million uniques ( ranks top threemost engaged video experiences among all TV Networks in July. A recent study from the Pew Internet & American Life Project reported that U.S.Hispanic Millenials and Gen X’ers are the most active demographic with regard to broadbandInternet use for watching videos online ( ranks top three most engaged videoexperiences among all TV Networks in July. The study found that 81 percentof Hispanic adults watched videos online in May 2011, compared to 76 percent of AfricanAmerican adults and 69 percent of white adults ( ranks top three most engagedvideo experiences among all TV Networks in July. In this approach,Telemundo is targeting people with demographic and psychographic characteristics similar tothose that are known to respond to their messages. These multiplatform approaches to target thisaudience are word of mouth techniques, which help to spark a viral reaction, which starts with
  6. 6.   Morales-Neufeld 6one friends and spreads so on to. The use of promotional mixes in the form of promotions, sales,events, new products, television, print and social media, along with sponsored stories ad units,can start this viral reaction and cause a shift in viewer behavior based on friends and familysocial graph influence (Williams, Dave. How Word of Mouth Marketing Will Pump Up HolidaySales.). Telemundo has also incorporated product placements in its telenovelas (TelemundoOriginal Content Drives Growth. While the idea of branded entertainment is not new, the promotional campaigns arebecoming increasingly clever with elements that take the products from the telenovela to the weband mobile devices. It’s a subtle, organic, conscientious effort for the product and its advertisersto be part of the viewer’s world (Telemundo Original Content Drives Growth. For instance, Telemundo has integrated marketing communications efforts to incorporatetheir advertisers in all their multiple platforms. JP Morgan Chase is an example. Viewers canalso visit a Chase microsite for the show, follow the series on Facebook, watch it on their mobilephones and get text messages prompting them to tune in to the show or to go online. (Vega,Tanzina. Product Placement Rises in Networks’ Telenovelas.) In addition, they can downloadmusic from the Chase commercials and enter a contest to win a behind-the- scenes tour of theTelemundo studios (Vega, Tanzina. Product Placement Rises in Networks’ Telenovelas.). Telemundo’s refreshed branding has been fruitful in building its relationship with itsviewers and expanding its services to a new generation. In adapting to a changing market, thenetwork has proven its ability to keep its promise — to enrich the lives of U.S. Hispanics andaudiences worldwide through content that informs, empowers, inspires, and entertains. Works Cited
  7. 7.   Morales-Neufeld 7 Armstrong, Gary, and Kotler, Philip. Marketing: An Introduction. Upper Saddle River,New Jersey: Pearson Prentice Hall, 2011. Print. Chozick, Amy. Telemundo Blends English Into a Mostly Spanish Lineup. New York Times.25. October 2011. Web. 26 November 2011. Telemundo Scores Best November Viewership. Web. 1 December 2011. Telemundo launches YouTube Telemundo and mun2 Channels. 5October 2011. Web. 28 November 2011. ranks top three most engaged video experiences among all TV Networksin July. 24 August 2011. Web. 27 November. 2011. Williams, Dave. How Word of Mouth Marketing Will Pump Up Holiday 28 November 2011. Web. 28 November. 2011. Telemundo Original Content Drives Growth. 27 April 2011. Web. 28November 2011. Vega, Tanzina. Product Placement Rises in Networks’ Telenovelas. August 2011. Web. 29 November 2011. Varallo, Michael. Increase Brand Value Through Positive 16 November 2011. Web. 28 November 2011.