Recommended
More Related Content
Similar to Brand Management, Advertising and IMC Concepts
Similar to Brand Management, Advertising and IMC Concepts (20)
Recently uploaded
Recently uploaded (20)
Brand Management, Advertising and IMC Concepts
- 1. Intro to the concept of Brand Management, Advertising and IMC Session-1
- 3. What is a Brand? • ‘A brand is a set of mental associations, held by the consumer, which add to the perceived value of a product or service’ • These associations should be unique (exclusivity), strong (saliency) and positive (desirable) • Modern brand management starts with the product and service as the prime vector of perceived value, while communication is there to structure, to orient tangible perceptions and to add intangible ones.
- 4. Branding • Increases awareness and provides a way to differentiate from competitors.
- 5. What Makes a Brand?
- 6. What really makes a Brand? Brand names and symbols, semiotic invariants Product or service experience Brand concept (value proposition) Tangible and Intangible A brand exists when it has acquired power to influence the market
- 7. Why do BRANDS matter? • Brands reduce risks in product decisions: • Functional risk • Physical risk • Financial risk • Social risk • Psychological risk • Time risk • Role of branding increases in Credence over experience good and search goods • The brand is a sign (therefore external) whose function is to disclose the hidden qualities of the product which are inaccessible to contact (sight, touch, hearing, smell) and possibly those which are accessible through experience but where the consumer does not want to take the risk of trying the product.
- 8. Functions A Brand Serves For Consumer Function Consumer Benefit Identification To be clearly seen, to quickly identify the sought-after products, to structure the shelf perception. Practicality To allow savings of time and energy through identical repurchasing and loyalty. Guarantee To be sure of finding the same quality no matter where or when you buy the product or service. Optimization To be sure of buying the best product in its category, the best performer for a particular purpose. Badge To have confirmation of your self-image or the image that you present to others. Continuity Satisfaction created by a relationship of familiarity and intimacy with the brand that you have been consuming for years. Hedonistic Enchantment linked to the attractiveness of the brand, to its logo, to its communication and its experiential rewards. Ethical Satisfaction linked to the responsible behaviour of the brand in its relationship with society (ecology, employment, citizenship, advertising which doesn’t shock).
- 9. Can Anything be Branded? There are brand names based on people (Estee Lauder cosmetics), Places (British Airways), animals/birds (Dove Soap) or other things (Apple) Brand names themselves can have inherent product meaning or which suggests their key attribute It’s YOUR choice how you want your brand elements to be in the Brand
- 10. When a Brand Becomes Iconic? A brand is formed Identity value and iconic brands To gain market share and leadership, the brand must be: • able to conjure up a big idea, and attractive; • experienced by people at contact points; activated by deeds and behaviours; communicated; distributed. JFK, Elvis Presley, Oprah, Steve Jobs, Apple, Nike, Harley, Coke Reebok, Pepsi, IBM Identity brands Iconic brands Cultural icons Identity value
- 11. Value of Branding for the Customer and the Firm
- 12. Levers of Brand Profitability
- 13. Brand asset, Brand strength and Brand value Brand Value Brand Strength Brand Asset Net discounted cashflow attributable to the brand after paying the cost of capital invested to produce and run the business and the cost of marketing Market share Market leadership Market penetration Share of requirements Growth rate Loyalty rate Price premium Percentage of products the trade cannot delist Brand awareness Brand reputation (attributes, benefits, competence, know- how, etc) Perceived brand personality Perceived brand values Reflected customer imagery Brand preference or attachment Patents and rights Time Dimension
- 14. Indicators of Brand Equity Aided Brand awareness Spontaneous brand awareness Evoked set Has the brand been already consumed?
- 15. Brand vs Product Product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want Product can be a physical good (a cereal, tennis racquet), service (airline), retail store (specialty store), Person (athlete), organization (Non profit/trade), or idea 5 levels of product •Core benefit level •Generic product level •Expected product level •Augmented product level •Potential product level A brand is a product; one that adds other dimensions that differentiate it in some way from other products designed to satisfy the same need
- 16. Brand Equity Concept • First, brands are intangible assets, posted eventually in the balance sheet as one of several types of intangible asset (a category that also includes patents, databases and the like) • Second, brands are conditional assets • The legal perspective • ‘A sign or set of signs certifying the origin of a product or service and differentiating it from the competition’. • Brand registration • For us, in essence, a brand is a name that influences buyers, becoming a purchase criterion.
- 17. Strategic Brand Management Process
- 18. Brand building tools and objectives Consumer Knowledge Effects Branding Benefits
- 20. Introduction • Evolution of IMC • Contemporary Perspective on IMC: • IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communications programs over time with consumers, customers, prospects, employees, associates and other targeted relevant external and internal audiences. The goal is to generate both short term financial returns and build long term brand and stakeholder’s value
- 21. Why IMC Is Important? • Strategic integration rather than operating autonomously • Avoids duplication • Takes advantage of the synergy among professional tools • Develop more effective and efficient marketing campaigns • Audience becoming fragmented with new technologies • Evolution of mass to micro
- 22. The Role of IMC in Branding • Helps develop and sustain brand identity and equity. • Relationship era: Recognizes need for companies to connect with consumers based on trust, transparency, and authenticity. • Sustainability: development that meets needs of current generation without compromising ability of future generations to meet their needs. • Companies are addressing sustainability by carefully examining social and environmental impacts of their marketing strategies.
- 23. Factors Accelerating the Growth of IMC • Shift in media advertising -----consumer and trade oriented sales promotion • Movement away from mass media • Rapid growth of database marketing • Demands for greater accountability from media agencies • Rapid growth of internet
- 24. Top 10 Most valuable brands 2021 Rank 2021 Brand Brand Value 2021 ($Mil) % Increase 2021 vs 2020 1 Amazon 683,852 64% 2 Apple 611,997 74% 3 Google 457,998 42% 4 Microsoft 410,271 26% 5 Tencent 240,931 60% 6 Facebook 226,744 54% 7 Alibaba 196,912 29% 8 Visa 191,285 2% 9 McDonald’s 154,921 20% 10 MasterCard 112,876 4%
- 25. Elements of Promotional Mix Advertising Direct Marketing Interactive/Internet Marketing Sales Promotion Publicity/Public Relations Personal selling
- 26. Advertising • Cost –effective to reach mass audience • Valuable tool for building brand equity (provides info, influences perception, brand image, association) National Advertising Retail/Local Advertising Primary vs selective demand advertising B to B Advertising Professional advertising Trade Advertising
- 27. Week 9, 2022, India
- 28. Distribution of expenditure in the advertising industry across India from 2016 to 2021, with estimates until 2023, by channel
- 29. Distribution of advertising spending in India in 2020 by Category
- 30. • Direct Marketing • Communicating directly with target customers to generate a response and/or transaction. • Involves: • Database management. • Direct selling. • Telemarketing. • Direct-response advertising. • Encourages consumer to purchase directly from the manufacturer. • Through direct mail, online, and various broadcast and print media. • Increased use due to rapid growth of mobile devices to access the Internet. • Companies use omnichannel retailing. • Extensive databases of customer names and information. 30 Direct Marketing
- 31. Digital/Internet Marketing • Interactive media: • Allow users to participate in and modify the form and content of information they receive in real time. • Social media: • Online means of communication and interactions used to create, share, and exchange content. • Mobile marketing: • Messages delivered are specific to consumer’s location or consumption situation. 31
- 32. • Advantages of Digital/Internet Marketing • Interactive nature. • Capability to precisely measure the effects of advertising and other forms of promotion. • The ShopSavvy app allows shoppers to make price comparisons before making a purchase. • Source: ShopSavvy, Inc 32
- 33. Sales Promotion • Sampling • Coupons • Premium • Rebate • Contest • Sweepstake Consumer oriented • Promotional and merchandising allowances • Price deals • Sales contest • Trade show Trade oriented
- 34. Sales Promotion • Reasons for Increased Emphasis of Sales Promotion • Declining brand loyalty. • Increased consumer sensitivity to promotional deals. • Retailers’ demand for more trade promotion support from vendors. 34
- 35. Publicity/Public relations Publicity- nonpersonal communications regarding an organization, product, service or idea not directly paid for or run under identified sponsorship. Usually news story, editorial or announcement Advantage: Credibility, Low cost Public relations- Systematically planned, controlled and manages the image. Has broader objective than publicity. E.g. Special publication, community activities, fund raising, Sponsorships etc.
- 36. Public Relations • Evaluates public attitudes. • Identifies policies and procedures of an individual or organization with the public interest. • Goal is to establish and maintain positive image among various publics. • Source: Honda of America Manufacturing, Inc • Honda uses advertising to enhance its corporate image by showing its commitment to building products and creating jobs in America. 36
- 37. Personal Selling • Person-to-person communication in which seller attempts to assist and/or persuade prospective buyers to: • Purchase a company’s product. • Act on an idea. • Allows seller to tailor messages to customer’s specific needs or situation. • Involves immediate and precise feedback. 37
- 38. IMC Involves Audience Contacts • Touch Point • Every opportunity customer has to see or hear about a company and/or its brands or have an encounter or experience with it. • Categories: • Company-created. • Unexpected. • Customer-initiated.
- 39. IMC Audience Contact Tools 39
- 40. IMC Touch Points: Control vs. Impact 40
- 41. IMC Involves Audience Contacts • Paid, Owned, and Earned Media • Paid media: • Channels marketers pay to leverage. • Includes traditional advertising media (TV, radio, print, etc.). • Owned media: • Channels of marketing communication that a company controls. • Websites, blogs, apps, social media channels. • Earned media: • Exposure for a company (free). • Viral marketing. 41
- 42. Paid, Owned, and Earned Media 42
- 43. The IMC Planning Process1 • Integrated Marketing Communications Management • Planning, executing, evaluating, and controlling use of promotional-mix elements to effectively communicate with target audiences. • Integrated Marketing Communications Plan • Developing, implementing, and controlling the organization’s IMC program. 43
- 45. Think out of the box!!
Editor's Notes
- Brand identification takes many forms. Ask students: How many of you can sing the Oscar Meyer jingle? Students will get a kick out of the YouTube ad (always check before class), which is the one of the original 1965 Oscar Meyer ads. YouTube link: http://www.youtube.com/watch?v=aNddW2xmZp8
- Group activity: Identify a brand that you recognize primarily by each of these elements. Brand Name: Most brands URLs: www.eBay.com Logos & Symbols: TAG Heuer Characters: Toucan Sam Slogans: State Farm—Like a Good Neighbor Sound: Law & Order “Doink “
- Group activity: Have students pick a well-established brand. Have them provide examples of how the brand provides value. For example, consider eBay. The brand facilitates instant recognition, consumers are avidly loyal, which reduces competition from other online auctions and reduces expensive marketing ads. The brand is a valuable asset that they protect through copyrights and directly affects their profits.
- Summary Overview: This slide presents the role of IMC in branding. Use of this slide: This slide can be used to discuss the role of IMC in branding. One of the major reasons for the growing importance of integrated marketing communications over the past decade is that it plays a major role in the process of developing and sustaining brand identity and equity. Brand identity is a combination of many factors, including the name, logo, symbols, design, packaging, and performance of a product or service as well as the image or type of associations that come to mind when consumers think about a brand. Marketing is entering the relationship era and the need for companies to connect with consumers based on trust, transparency, engagement, and authenticity. A successful IMC program requires that marketers find the right combination of communication tools and techniques, define their role and the extent to which they can or should be used, and coordinate their use. The value chain of companies has become increasingly visible, and consumers often select brands based on the social, economic, and environmental records and policies of the companies that make them.
- Summary Overview: This slide defines and discusses about direct marketing and its tools. Use of this slide: This slide can be used to give the definition of direct marketing and list its tools. One of the fastest-growing sectors is direct marketing, in which organizations communicate directly with target customers to generate a response and/or a transaction. Direct marketing involves a variety of activities, including direct mail and mail-order catalogs, database management, direct selling, telemarketing, and direct-response ads through direct mail, the Internet, and various broadcast and print media. One of the major tools of direct marketing is direct-response advertising, whereby a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer.
- Summary Overview: This slide discusses and defines digital/Internet marketing tools. Use of this slide: This slide can be used to discuss and understand digital/Internet marketing tools. Interactive media allow for a two-way flow of communication whereby users can participate in and modify the form and content of the information they receive in real time. Social media refers to online means of communication and interactions among people that are used to create, share, and exchange content. Mobile marketing can be used to deliver messages that are specific to a consumer’s location or consumption situation.
- Summary Overview: This slide discusses the advantages of using digital/Internet marketing. The interactive nature of the Internet and social media enables marketers to gather valuable personal information from customers and prospects and to adjust their offers accordingly. Also, Internet provides marketers with the capability to more closely and precisely measure the effects of their advertising and other forms of promotion. Use of this slide: This slide can be used to discuss ways that the Internet can be used as a marketing tool. Students should be very familiar with this medium, so you may want to ask such things as: Which search engine do you use most often, and why? Do you ever enroll in online contests or sweepstakes? Do you have your own website? If so, do you sell anything? How much traffic does your site get, and how do you drive traffic there?
- Summary Overview: This slide discusses the reasons for the increased emphasis on sales promotion. Use of this slide: This slide can be used to discuss and understand the reasons for the increased emphasis on sales promotion. The reasons include declining brand loyalty and increased consumer sensitivity to promotional deals. Another major reason is that retailers have become larger and more powerful and are demanding more trade promotion support from companies.
- Summary Overview: This slide presents the definition of public relations. Public relations is defined as the management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance. Use of this slide: This slide can be used to explain that public relations has a broader objective than publicity; its purpose is to establish and maintain a positive image of the company among its various publics. Exhibit 1–12 is part of the American Honda Motor Co.’s corporate social responsibility campaign which communicates the company’s stance on important issues such as social values, business ethics, diversity, environmental stewardship, and community involvement. The ad promotes Honda’s commitment to building fuel efficient products, such as the Honda Jet, and innovating and creating jobs in America.
- Summary Overview: This slide presents the final element or an organization’s promotional mix—personal selling. Use of this slide: This slide can be used to give the definition and a general understanding of personal selling. Personal selling is a form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company’s product or service or to act on an idea. It allows the seller to tailor the message to the customer’s specific needs or situation. It also involves immediate and precise feedback.
- Summary Overview: This slide discusses the audience contact or touch point perspective of companies. A contact (or touch) point refers to each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it. Use of this slide: This slide can be used to discuss and understand the categories of contact or touch point. Company-created touch points are planned marketing communication messages created by the company. Intrinsic touch points are interactions that occur with a company or brand during the process of buying or using the product or service. Unexpected touch points are unanticipated references or information about a company or brand that a customer or prospect receives that is beyond the control of the organization. Customer-initiated touch points are interactions that occur whenever a customer or prospect contacts a company.
- Summary Overview: This figure illustrates various IMC audience contact tools. Use of this slide: This slide can be used to illustrate that there are additional ways companies communicate with current and prospective customer that extend beyond the traditional promotional mix. Product placements, word-of-mouth, and point-of-purchase displays are a few of those ways. Each and every opportunity a customer has to see or hear about a company and/or its brands, or has an encounter or experience with it, is a contact (touch) point.
- Summary Overview: This figure plots the four categories of touch points in terms of their relative impact and the marketer’s ability to control them. Use of this slide: This slide can be used to discuss and compare the four basic contact or touch points. Company-planned touch points are the easiest to control but are lowest in terms of impact. Marketers can control the nature and type of advertising and other forms of promotion that they send to their target audiences, but consumers often discount these messages since they receive so many of them and they recognize the persuasive intent that underlies them. At the other extreme, unexpected messages are often the most impactful but are the most difficult to control. Customer-initiated and intrinsic messages fall in between unexpected and company-created messages with respect to impact as well as the ability of the marketer to control them.
- Summary Overview: This slide provides the definitions of paid, owned, and earned media. Use of this slide: This slide can be used to discuss the three different types of media, examples of each, and what each one is most effective for. You can note that marketers making effective use of integrated marketing communications today will use a combination of all three forms of media. Marketers must determine how valuable each of the various forms of media and contact tools are for communicating with their current and prospective customers and how they can be combined to form an effective IMC program. This is generally done by starting with the target audience and determining which IMC tools will be most effective in reaching, informing, and persuading them and ultimately influencing their behavior.
- Summary Overview: This slide breaks down paid, owned, and earned media by channel, offers examples of each one, and shows how they work together.
- Summary Overview: This slide provides the definition of integrated marketing communications management and the integrated marketing communications plan. Use of this slide: This slide can be used to give the definition of integrated marketing communications management and the integrated marketing communications plan. Integrated marketing communications management involves the process of planning, executing, evaluating, and controlling the use of the various promotional-mix elements to effectively communicate with target audiences. This process is guided by an integrated marketing communications plan that provides the framework for developing, implementing, and controlling the organization’s IMC program.