F6.0 advertising sales_promotion_and_public_relations

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  • We have been doing a lot of research in the last 12 yeras.
    The limbic approach involves the newest knowledge of neuroscience/neurobiology.
    We analysed about 1.200 studies concerning brain – emotion - behavior
    It involes psychoendocrinology
    Psychology
    And evolutionary biology and psychology.
  • W´hat´s the result?
    All the things we do, we do it for at least 70 % unconcsiously.
    Even if we think we are rational and we can decide what we think and do.
    Our limbic system decides for us before we think.
    Why ist this that way?
    To understand that, we have to look back in the evolution.
  • Now we have a look at the limbic instructions an their structure.
    In the middle there are the progarammed vital desires Vitalbedürfnisse sexuality, sleep and food.
    The 3 instuctions / forces balance, dominance and stimulance tell uns uncounsciously what to do and not.
    There are some more moduels that affect our behavior. They have been developped in the evolution .
    It´s the modul of game, we all have,
    it´s tussling (escessially important for little boys), hunting.
    Bonding and care are 2 more important moduels belonging to balance force
    Sometimes we have to have a seperate look at these special moduels but to make it easier we will look at the 3 important instructions.
  • The Balance instruction, please have a look at the direction, is responsible for security, persitence, tradition. This force tries to keep status quo.
    The dominance instruction is the expansive force.
    The stimalance instruction is responsible for new ideas and innovation.
    Dominance and stimulance are responsible for progress and change.
    Pulling direction is up.
  • Balance means:
    Social security, living in a family, having friends
    Physical security
    The health system, hospitals, pharmacies
    Beliving in a religion
  • Dominance means:
    Physical dominance (being stronger)
    Competitiveness
    Carrer
    Fighting
    Winning
    But also Social dominance
  • The stimulance instruktion is the most symphatic force.
    It means:
    Variety in food
    Vacationin dirfferent countries
    Social life
    Art & culture
    Science
    Curiosity
    Sensation seekeing
  • This is the limbic map.
    The limbic map shows a structure of all values of human beeing. It´s structure is valid in all cultures.
    It is proofed in over 20 cultures all over the world.
    But the cultures differ in the strongs of the limbic forces/instructions.
    For example in the USA there are more values in adventure. This is also based in evolution. Remeber the first settlers ...
    In Germany and Austria diszipline and control is more important.
    In Italy there are is is more fantasy
    If you mix for example balance and dominance you will get: discipline and control.
  • If brands are made by advertising agencies are not leaded by the companies identity you can see what can happen.
    We see the camel campagn
    They started with Adventure: For my camel I go miles.
    In 1990 they changed the campaing in humoruous comics
    And now another limbic brand core: you see it mooved to the real opposite of the value map.
  • In reality the information gets into our mind,
    The limbic system analyses the information automatically and evaluates tthe meaning.
    This makes the direfference. The limbic system evaluates everything by using the 3 instructions, we have already seen.
    Balance, dominance and stimulance. The limbic system proofs every information if the new information satisfies or disturbs the instructions.
    At least 70 % happens unconsciously.
  • We have 2 parts of the brain.
    Left and right. They are responsible for different things but the limbic system plays again an important role.
  • One individuum has a high level of dominance, another is high stimulant.
    This person is high dominance.
    The three instructions are pretty autonom. There are people with charateristic in all three instructions at the same time.
  • Here you can see the different limbic consumer types for germany.
    This map shows the general consumer types which means female and male, including all ages.
    To proof this we made different empirical studies (1500) concerning consumer Insights.
    If you ask people they classify themenselves in these kind of consumer types.
  • There are differences according sex.
    The balance instruction is much stronger at women
    The dominance is stronger at men.
    Stimulance is almost the same for the two sexes.
  • Strong changes with age
    Domincane decreases
    Balance increases the older we get.
  • This is an overview of german female consumers.
    You can find mostly Preservers (balance part)
    Almost no adventurer and performer
  • The opposite concerning men:
    Here we have 15 % of adventurer and 11 % performer
  • You can also seperate the results in age.
    In general young people are more stimulant and dominant. We find them in the upper part of this chart.
  • At the over 60 year old people the balance force gains.
    58% preserver. But this is an overviews about all types.
  • To have a look again at the limbic Map
    you can see that the important psychological target groups can be presented at the map as well.
    The upper part is the younger part, women are more affected by the fantasy and pleasure values, men lean more to dominance values.
  • This is an example for different milk brands in germany.
    Wheihenstehan stands for dicziplin
    Landliebe shows signals of care and security
    And so on.
  • The milk in its generic position is balance.
    It is a basic food
    But you see the difference
  • F6.0 advertising sales_promotion_and_public_relations

    1. 1. International Seminar Advertising, Sales Promotion and Public Relations © Heinz G. Zenk – International Advertising Seminar
    2. 2. 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
    3. 3. Environmental Factors affecting Strategy © Heinz G. Zenk – International Basic Seminar
    4. 4. © Heinz G. Zenk – International Basic Seminar
    5. 5. © Heinz G. Zenk – International Basic Seminar
    6. 6. © Heinz G. Zenk – International Basic Seminar
    7. 7. © Heinz G. Zenk – International Basic Seminar
    8. 8. © Heinz G. Zenk – International Basic Seminar
    9. 9. © Heinz G. Zenk – International Basic Seminar
    10. 10. © Heinz G. Zenk – International Basic Seminar
    11. 11. © Heinz G. Zenk – International Basic Seminar
    12. 12. 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. © Heinz G. Zenk – International Basic Seminar
    13. 13. The New Marketing The Four P´s (the old marketing mix) are no longer relevant! © Heinz G. Zenk – International Basic Seminar
    14. 14. 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 © Heinz G. Zenk – International Basic Seminar
    15. 15. Neuromarketing Desire! © Heinz G. Zenk – International Basic Seminar
    16. 16. 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 © Heinz G. Zenk – International Basic Seminar
    17. 17. 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. © Heinz G. Zenk – International Basic Seminar
    18. 18. 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) © Heinz G. Zenk – International Basic Seminar
    19. 19. Limbic® Buying descisions are made unconsciously 70 % unconscious © Heinz G. Zenk – International Basic Seminar
    20. 20. 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 © Heinz G. Zenk – International Basic Seminar
    21. 21. Limbic® The human behavior program Dominance Stimulance Sexuality Food Sleep / Breath Balance © Heinz G. Zenk – International Advertising Seminar
    22. 22. Limbic® The Balance-Instruction Balance © Heinz G. Zenk – International Advertising Seminar
    23. 23. Limbic® The Dominance-Instruction Do mi na nc e © Heinz G. Zenk – International Advertising Seminar
    24. 24. Limbic® The Stimulance-Instruction e= mc2 tim S ce lan u © Heinz G. Zenk – International Advertising Seminar
    25. 25. 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 © Heinz G. Zenk – International Advertising Seminar
    26. 26. Limbic® Map Flops regarded with the limbic eye Camel 1960 Camel 1990 Camel 2002 © Heinz G. Zenk – International Basic Seminar
    27. 27. Limbic® Map New thinking predominance of the limbic system Consciousness Emotions Cognitions Information Unconscious Evaluation by Limbic System 70% © Heinz G. Zenk – International Basic Seminar
    28. 28. 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 © Heinz G. Zenk – International Basic Seminar
    29. 29. Personality Emerges From the Limbic System © Heinz G. Zenk – International Basic Seminar
    30. 30. Limbic Consumer (Male and Female) Adventurer 9% Hedonist Performer 16 % 6% Epicure Disciplined 22 % 12% Preserver 35 % © Heinz G. Zenk – International Basic Seminar
    31. 31. Differences Between Men and Women © Heinz G. Zenk – International Basic Seminar
    32. 32. Modifications According to Age 20-35 years 65+++ years © Heinz G. Zenk – International Basic Seminar
    33. 33. Limbic® Consumers (Female) Adventurer 3% Hedonist Performer 17 % 2% Epicure Disciplined 25 % 7% Preserver 46 % © Heinz G. Zenk – International Basic Seminar
    34. 34. Limbic® Consumers (Male) Adventurer 15 % Hedonist Performer 15 % 11 % Epicure Disciplined 18 % 18% Preserver 23 % © Heinz G. Zenk – International Basic Seminar
    35. 35. Limbic® Youth 20 - 30 Adventurer 20 % Hedonist Performer 25 % 10 % Epicure Disciplined 22 % 5% Preserver 18 % © Heinz G. Zenk – International Basic Seminar
    36. 36. Limbic® Age 60 + Adventurer 1% Hedonist Performer 4% 4% Epicure Disciplined 19 % 14% Preserver 58 % © Heinz G. Zenk – International Basic Seminar
    37. 37. Limbic ® Map The human motives and values 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 © Heinz G. Zenk – International Advertising Seminar
    38. 38. 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 © Heinz G. Zenk – International Basic Seminar
    39. 39. Limbic® Map The human motives and values 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 © Heinz G. Zenk – International Advertising Seminar
    40. 40. 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 © Heinz G. Zenk – International Basic Seminar
    41. 41. Positioning of a Brand © Heinz G. Zenk – International Basic Seminar
    42. 42. Practice Seminar - Brand Leading 42 Brand appearance and tonality „The brand lives on the inner picture“ © Heinz G. Zenk
    43. 43. Practice Seminar - Brand Leading 43 © Heinz G. Zenk
    44. 44. 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 © Heinz G. Zenk – International Basic Seminar
    45. 45. Practice Seminar - Brand Leading 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. 46. Practice Seminar - Brand Leading 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. 47. Practice Seminar - Brand Leading 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. 48. Practice Seminar - Brand Leading 48 Positioning of a brand © Heinz G. Zenk
    49. 49. Practice Seminar - Brand Leading 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. 50. Practice Seminar - Brand Leading 50 McDonald´ s brand identity © Heinz G. Zenk
    51. 51. Practice Seminar - Brand Leading 51 BMW´ s brand identity © Heinz G. Zenk
    52. 52. Practice Seminar - Brand Leading 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. 53. Practice Seminar - Brand Leading 53 What kind of brand aesthetic has a packing to have ? Harmony Modernity Emotionality Culture BRAND AESTHETIC Familiarity Feasibility Complexibility © Heinz G. Zenk
    54. 54. Practice Seminar - Brand Leading 54 Basic brand strategies © Heinz G. Zenk
    55. 55. Practice Seminar - Brand Leading 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. 56. Practice Seminar - Brand Leading 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
    57. 57. Practice Seminar - Brand Leading 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. 58. Practice Seminar - Brand Leading 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. 59. Practice Seminar - Brand Leading 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. 60. Practice Seminar - Brand Leading 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. 61. Practice Seminar - Brand Leading 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. 62. Practice Seminar - Brand Leading 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. 63. Practice Seminar - Brand Leading 63 © Heinz G. Zenk
    64. 64. Practice Seminar - Brand Leading 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. 65. Practice Seminar - Brand Leading 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. 66. Practice Seminar - Brand Leading 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. 67. Practice Seminar - Brand Leading 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
    68. 68. 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. © Heinz G. Zenk – International Basic Seminar
    69. 69. 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 © Heinz G. Zenk – International Basic Seminar
    70. 70. Practice Seminar - Brand Leading 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. 71. Practice Seminar - Brand Leading 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. 72. Practice Seminar - Brand Leading 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. 73. Practice Seminar - Brand Leading 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. 74. Practice Seminar - Brand Leading 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. 75. Practice Seminar - Brand Leading 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. 76. Practice Seminar - Brand Leading 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. 77. Practice Seminar - Brand Leading 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. 78. Practice Seminar - Brand Leading 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. 79. Practice Seminar - Brand Leading 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. 80. Practice Seminar - Brand Leading 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. 81. Practice Seminar - Brand Leading 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. 82. Practice Seminar - Brand Leading 82 Brand controlling © Heinz G. Zenk
    83. 83. Practice Seminar - Brand Leading 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. 84. Practice Seminar - Brand Leading 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. 85. Practice Seminar - Brand Leading 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. 86. Practice Seminar - Brand Leading 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. 87. Practice Seminar - Brand Leading 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. 88. Practice Seminar - Brand Leading 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. 89. Practice Seminar - Brand Leading 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. 90. Practice Seminar - Brand Leading 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. 91. Practice Seminar - Brand Leading 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
    92. 92. 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. © Heinz G. Zenk – International Basic Seminar
    93. 93. 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). © Heinz G. Zenk – International Basic Seminar
    94. 94. 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 © Heinz G. Zenk – International Basic Seminar
    95. 95. 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 © Heinz G. Zenk – International Basic Seminar
    96. 96. „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 © Heinz G. Zenk – International Basic Seminar
    97. 97. 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 © Heinz G. Zenk – International Basic Seminar
    98. 98. 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. © Heinz G. Zenk – International Basic Seminar
    99. 99. 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 © Heinz G. Zenk – International Basic Seminar
    100. 100. 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. Specific fixation of the problem, which is mainly to solve by Advertising. Specific fixation of the problem, 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, emotionally and rationally. Definition and formulation of the specific PR target group, emotionally and rationally. Mission concept: Learning effect Design concept: Media concept: AL - Message Design concept: Media concept: Learning effectAdvertising Message Learning effect Design concept: PR - Message © Heinz G. Zenk – International Basic Seminar
    101. 101. Criteria for Selecting an Advertising Agency Relative size Type of help required Specialism Agency selection Business ability Location/ Accessibility Track record Compatibility/ Empathy © Heinz G. Zenk – International Basic Seminar
    102. 102. Types of Agencies Full Service Agencies Specialized Agencies Industry-Focused Agencies Minority Agencies Creative Boutiques Media Buying Services Virtual Agencies © Heinz G. Zenk – International Basic Seminar
    103. 103. 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. © Heinz G. Zenk – International Basic Seminar
    104. 104. 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.” © Heinz G. Zenk – International Basic Seminar
    105. 105. 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 © Heinz G. Zenk – International Basic Seminar
    106. 106. 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 © Heinz G. Zenk – International Basic Seminar
    107. 107. 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. © Heinz G. Zenk – International Basic Seminar
    108. 108. 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 © Heinz G. Zenk – International Basic Seminar
    109. 109. 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. © Heinz G. Zenk – International Basic Seminar
    110. 110. Sales Promotion Techniques Major consumer – promotional tools 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). © Heinz G. Zenk – International Basic Seminar
    111. 111. Sales Promotion Techniques Major consumer – promotional tools 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. © Heinz G. Zenk – International Basic Seminar
    112. 112. Sales Promotion Techniques Major consumer – promotional tools 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. © Heinz G. Zenk – International Basic Seminar
    113. 113. Sales Promotion Techniques Major consumer – promotional tools 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. © Heinz G. Zenk – International Basic Seminar
    114. 114. Sales Promotion Techniques Major consumer – promotional tools 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. © Heinz G. Zenk – International Basic Seminar
    115. 115. 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. © Heinz G. Zenk – International Basic Seminar
    116. 116. Major Business - and Sales-Force-Promotion Tools 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. © Heinz G. Zenk – International Basic Seminar
    117. 117. Major Business - and Sales-Force-Promotion Tools 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. © Heinz G. Zenk – International Basic Seminar
    118. 118. 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 © Heinz G. Zenk – International Basic Seminar
    119. 119. 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 © Heinz G. Zenk – International Basic Seminar
    120. 120. 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! © Heinz G. Zenk – International Basic Seminar
    121. 121. Promotional Objective Promotional briefing 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. © Heinz G. Zenk – International Basic Seminar
    122. 122. Promotional Objective Promotional briefing 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? © Heinz G. Zenk – International Basic Seminar
    123. 123. 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 © Heinz G. Zenk – International Basic Seminar
    124. 124. The Brief to the Result 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 © Heinz G. Zenk – International Basic Seminar
    125. 125. The Brief to the Result 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 © Heinz G. Zenk – International Basic Seminar
    126. 126. Who Holds the Key to the Business Problem? Wholesaler Factory Retail showroom Retail showroom Shop counter Depot Buyer End-users © Heinz G. Zenk – International Basic Seminar
    127. 127. 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: © Heinz G. Zenk – International Basic Seminar
    128. 128. The Nature of Internet Marketing 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. © Heinz G. Zenk – International Basic Seminar
    129. 129. The Nature of Internet Marketing 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. © Heinz G. Zenk – International Basic Seminar
    130. 130. The Nature of Internet Marketing 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. © Heinz G. Zenk – International Basic Seminar
    131. 131. 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. © Heinz G. Zenk – International Basic Seminar
    132. 132. 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 © Heinz G. Zenk – International Basic Seminar
    133. 133. 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 © Heinz G. Zenk – International Basic Seminar
    134. 134. 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 © Heinz G. Zenk – International Basic Seminar
    135. 135. Types of Service Suited to Fixed and Mobile E-Commerce © Heinz G. Zenk – International Basic Seminar
    136. 136. 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
    137. 137. © Heinz G. Zenk – International Basic Seminar
    138. 138. © Heinz G. Zenk – International Basic Seminar
    139. 139. © Heinz G. Zenk – International Basic Seminar
    140. 140. 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) © Heinz G. Zenk – International Basic Seminar
    141. 141. Future of the Brand/Communication 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 ) © Heinz G. Zenk – International Basic Seminar
    142. 142. Future of the Brand/Communication 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: © Heinz G. Zenk – International Basic Seminar

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