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Eastern Institute of Management


2nd Year 1st Semester
m e raw material of Advertising, is life«.
‡ It·s t e business of inspiring people. Yet, we·re most uninspiredð
‡ Its· t e business of knowing everyt ing about everyt ing.
Yet, we know little about just a few t ings.
‡ We believe we·re in a borderless world. Yet, we barricade our
curiosity.
‡ We·re in t e sensorama business. Yet, we don·t use most of our
senses.
‡ You don·t need wings to fly. Just an open mind. And don·t give me
excuses like ´W ere·s t e time?µ
‡ Do you discover one new t ing in your life eac day?
‡    D Live your life t at way«
A step a ead
‡ We were in t e information age. We are now in t e knowledge
domain.
‡ m e only way you win wit colleagues and clients is w en you know
as muc if not more about t eir business.
‡ If you work on real estate, do you know about w at is appening in
t e Ropponji Hills district in Japan or for t at matter Canary W arf
in London or t e 50 Gramercy Park project in New York?
‡ Knowledge is t e next battlefront. m e soldier on t at is t e general
of tomorrow.
‡ |   D Live your life t at way...
Course Content

1. Advertising·s Role in t e Marketing Process


2. Legal/Et ical/Social Aspects of Advertising
3. Process of Communication ² Wilbur Sc ramm Model
4. m eory of Cognitive Dissonance/Advertising Strategy
5. DAGMAR approac
6. Stimulation of Primary/Selective Demand ² Positioning
7. Campaign Planning/Brand Management
Copy/Logo/Illustration/Appeal/Layout
8. Media Planning, Budgeting and Evaluation Press/mC
Course Content«Contd

9. Rationale of mesting Opinion and Aptitude mest


10. Recognition/Recall
11. Advertising Agency D Selection/Compensation/Appraisal
12. Advertising vs Consumer Be aviour
13. Sales Promotions/mactical vs m ematic/Retail
14. National/Co-operative/Political/International/Public
Service Advertising
Expectations from you«
Read
See
Experience
Apply

«as the raw material of advertising is life


Advertising·s Role in t e Marketing
Process
W at is Marketing ?

m e American Marketing Association, defines ¶Marketing· as

‡ t e process of planning and executing t e conception,


pricing, promotion and distribution of ideas, goods (products
~brands) and services to create exc anges t at satisfy
individual and organizational objectives·
Marketing Communication Mix

Marketing Objectives & Strategy

Marketing Plans

Production
Distribution (Place) Promotion

Pricing Planning
m e Promotion Mix

Personal
Advertising Selling

Publicity/
Direct Public
Marketing
marget Audience Relations

Sales
Interactive/ Promotion
Internet
Marketing
Advertising
‡ originates from t e Latin Word Ëad vertere· w ic means Ëto
turn t e mind towards·

‡ Advertising is t e use of media to inform consumers about


somet ing and/or to persuade t em to do somet ing in
effect. It brings products/brands and consumers toget er
and t en modulates t e relations ip between t em
Uuestion ?
‡ If Advertising is a part of Marketing, t en is it all about
Communicating ?
Example..W en I say«
‡ A Cola ‡ Coca Cola
‡ A P otocopier ‡ Xerox
‡ A P otograp ic Film Material ‡ Kodak
‡ A Microprocessor ‡ Intel
‡ An Expensive Swiss Watc ‡ Rolex
‡ Cartridge Blades for S aving ‡ Gillette
‡ Main Frame Computers ‡ IBM
‡ Operating Software ‡ Microsoft

W at comes to your mind ? W at do t ese communicate to you?


m e Law of Advertising
‡ Advertising, today, is all about ¶Building· brands and
¶Positioning· brands in t e mind of t e consumer and not
just communicating about it.
W at is a Brand ?

‡ A Brand is not a product D it is t e product·s source and it


defines its identity in time.

‡ m e value of a brand lies in its capacity to generate cas flows.

‡ A brand is a landmark«it is enduring.


In Effect«.
‡ A Brand is an Identity
(like all famous personalities as its distinctiveness)

From a long term point of view,


We need to win Ë     rat er t an ¶s are of space·
Some quick examples & an exercise«
Brand Positioning
Exercise D Category Soap
‡ Lifebuoy ‡ Hygiene
‡ Liril ‡ Fres ness
‡ Lux ‡ Beauty
‡ Santoor ‡ Goodness-Sandalwood
‡ Dove ‡ Moisturizer
‡ Ayus ‡ Herbal
‡ Dettol ‡ Antiseptic
‡ Hamam ‡ Family
‡ Aramusk ‡ Masculinity
Corporate Advertising
Advertising done to promote t e interests of t e
firm by en ancing its image, assuming a position
on a particular issue or promoting a certain cause

mypes of Corporate Advertising

mImage Advertising
mEvent sponsors ip
mAdvocacy advertising
mCause-related advertising
Objectives of Corporate Advertising
m Create a positive image for t e firm
m Communicate t e organization·s viewpoint on various issues
m Boost employee morale
m Smoot labor relations
m Help newly deregulated industries
m Help diversified companies establis an identity
C evron Engages in Image Advertising
Event Sponsors ip
Event Sponsors ip is a form of marketing communications
w ereby an organization becomes involved wit a particular
event by developing sponsors ip relations.

Events used for sponsors ipD


‡ Sporting events
‡ Music/entertainment
‡ Festivals
‡ Arts/cultural events
‡ Causes
Advocacy Advertising

Advocacy advertising is t e propagation of ideas and


elucidation of controversial social issues of public
importance in a manner t at supports t e interests
of t e sponsor
m e San Diego Zoological Society
Cause Related Marketing

Cause related marketing is a form of marketing


w ereby companies link wit c arities or nonprofit
organizations as contributing sponsors
Kitc enAid uses cause-related marketing
mry Reading m is
        

cdnuolt blveiee ta t I cluod aulaclty uesdnatnrd wa t I was rdanieg. m e


p aonmneal pweor of t e muan mnid, aoccdrnig to a rsc eearc at
Cmabrigde Uinervtisy,
it deosn't mttaer in wa t oredr t e ltteers in a wrod are, t e olny iprmoatnt
ti ng is ta t t e frist and lsat ltteer be in t e rg it pclae. m e rset can be a
taotl mses and you can sitll raed it wout it a porbelm.
mi s is bcuseae t e uamn mnid deos not raed ervey lteter by istlef, but t e
wrod as a wlo e. Amzanig u ? yae and I awlyas tg u ot slpeling was
ipmorantt!
Direct Marketing
‡ W en organizations communicate directly wit target
consumers to generate a response and/or a transaction.
‡ It·s not just direct mail but a ost of activities suc as
database management, direct selling, telemarketing, multi
level marketing, and direct response ads, catalogue selling
etc.,
‡ Eg D L L Bean, Dell, mupperware, Amway
Interactive/Internet Marketing
‡ Using t e internet and t e world wide web as t e medium
for exc ange of information and transactions
‡ Eg D Amazon.com, ebay.com
‡ Eg D Nike ¶W atever· campaingn
Sales Promotion
‡ Are t ose activities t at provide extra value or incentives to
t e sales force, t e distributors/retailers or t e ultimate end
consumers and can stimulate immediate sales.
‡ Consumer Oriented Sales Promotions D Coupining, sampling,
Premium, Rebates, Contests, and Point of Purc ase Materials
‡ mrade Oriented Sales Promotions D Merc andising
Allowance, Price Deals, Sales Incentives, mrade S ows,
Dealer Meets,
Public Relations and Publicity
Public Relations
mo manage relations ips wit t e Public

 
 

  


 !
Public Relations Management Process

m Determination and evaluation of public


attitudes
m Identification of policies and procedures of an
organization
m Development and execution of t e program
Marketing Public Relations (MPR) Functions

§ Building marketplace excitement before media advertising


breaks
§ Creating advertising news w ere t ere is no product news
§ Introducing a product wit little or no advertising
§ Providing a value-added customer service
§ Building brand-to-customer bonds
§ Influencing t e influentials/opinion leaders
§ Defending products at risk and giving customers a reason to
buy
Public Relations Audiences
m Employees of t e firm
m Stock olders and investors
m Community members
m Suppliers and customers
m m e media
m Educators
m Civic and business organizations
m Governments
m Financial groups
Public Relations mools
m Press releases
m Press conferences
m Exclusives
m Interviews
m Community involvement
m m e internet
Example of a Press Release
Reebok Used a Press Conference to
Announce t e Sponsors ip of S akira
PR Publications
§ Inserts § News releases
§ Enclosures § Media kits
§ Annual reports § Booklets
§ Posters § Leaflets
§ Bulletin boards § Pamp lets
§ Ex ibits § Broc ures
§ Audiovisuals § Manuals
§ Position papers § Books
§ Speec es § Letters
Advantages of Public Relations
m Credibility
m Cost
m Avoidance of clutter
m Lead generation
m Selectivity
m Image building
Criteria for Measuring PR Effectiveness
m          
§ Over time
§ On t e target audience
§ On specific target audiences
m   "    
§ Positive articles over time
§ Negative articles over time
m    #  " # 
m   "   #  " #    
§ Subject
§ Publication
§ Reporter
§ marget audience
Publicity
Publicity involves t e generation of news about a company,
product, service, brand or person in various media. It is a
subset of t e public relations effort.

Key points regarding publicityD


m Publicity is generally s ort-term focused
m Publicity is not always under t e control of t e
firm
m Publicity can be negative as well as positive
m e Power of Publicity
mPerceived as more credible
mOften perceived as endorsed by t e medium in
w ic it appears
mOften as ig news value
mOften generates ig frequency of exposure
Responding to Negative Publicity
Using Positive Publicity
Advertising ersus Publicity
$  |#  "  

Control Great Little

Credibility Lower Hig er

Reac Ac ievable Undetermined

Frequency Sc edulable Undetermined

Cost Specific/Hig Unspecified/Low

Flexibility Hig Low

miming Specifiable mentative


Personal Selling
‡ A form of person to person communication w ere a seller
attempts to assist and/or persuade prospective buyers to
purc ase a company·s product or service or to act on an idea.
‡ Eg. Real Estate/Insurance, NGO cause, PUBLIC
Selection Criteria of t e Promotion Mix


 

·

       

    
 

  
! " 

 #
Advertising Regulation
Legal, Moral and Et ical Aspects of
Advertising
Federal mrade Commission (US)
‡ Promotional practices of t e mobacco and Alco ol Industry
‡ Healt Claims in t e food Industry
‡ C ildren·s Advertising D moy Industry ² ´Dial A Santaµ
‡ Advertising to t e Elderly D Healt Safety, Financial Security
‡ Environment

50 cases in nearly 100 million in judgement


W at is Deception ?
‡ Conceptually Deception exists w en as Advertisement is
introduced into t e perceptual process of some audiences
and t e output of t at perceptual process
² Differs from reality of t e situation
² Affects buying be aviour to t e detriment of t e
customer
m e ad may not be false but t e perception may be
More meaning to Deception
‡ m ere is a misinterpretation, omission or practice t at is
likely to mislead
‡ m e consumer is acting responsibly (or reasonably) in t e
circumstances
‡ m e practice is material and consumer injury is possible
because consumers are likely to ave c osen differently if
t ere was no deception
Misrepresentation or Omission
5 of t e 13 causes
‡ W en an Ad suggests a small difference is important D eg mar
level in cigarettes
‡ Artificial product demonstrations D
‡ Using an ambiguous or easily confused p rase D eg
´government supported· meaning ¶government approved·
attorneys claiming to be specialist/certified
‡ Implying t at a benefit t at does not fully or partially exist D
eg Efficen no Aspirin effect
‡ Implying t at a product benefit is unique to a brand D eg
Wonder Bread built bodies
Puffery
‡ A subjective statement of opinion about a products quality D
great/best/ can·t get any closer/better deal etc.,
Neit er ave been proved true neit er false

‡ Poetic License or allowable exaggeration


² BMW D m e Ultimate Driving Mac ine, Bayer Aspirin ²
m e Wonder Drug
‡ Is an exaggeration extended to t e point of outrig t spoof
t at is obviously not true D Snapple ² Made from t e best
stuff on eart
Legal, Et ical, Social Aspects of
Advertising
You Judge
m e deeper meaning
‡ LegalD pertaining to, or according to law

‡ Et ical D moral principles and values t at given t e actions


and decisions of an individual or a group - relating to
morales, principles

‡ Social D pertaining to society, organized community


m e Implications
‡ Conceptually, deception exists w en an advertising·s input
to t e perceptual process of t e mG and t e output of t at
process a) differs from t e reality of t e situation b) affects
buying be aviour to t e detriment of t e consumer
‡ According to t e Ferderal mrade Commission Act (FmC)
passed in t e US in 1914, deception will be found if t ere is a
misrepresentation or omission t at is likely to mislead t e
consumer to acting responsibly
m e Implications
‡ Misrepresentation or omission can occur w en an ad
contains t e incorrect implication t at D a) test conducted
scientifically b) a benefit exists c) claim is substantiated
‡ Puffing, t e subjective statement concerning a products
quality using terms suc as ¶best· is permissible
‡ m e AAI and t e Consumer Forum
‡ mrademark protection/Self Regulations
‡ Social Implications/Et ical Issues
‡ Healt and Environment Issues
‡ Politically being correct D Gender/Sexual Preferences
Legal Issues in Advertising
IPR
‡ mrade Mark Signs (Word, Colour, Picture etc.,)
‡ Patents Inventions (Products or Processes)
‡ Designs
‡ Copyrig t
‡ mrade Secrets
‡ Patents
Et ical Issues in Advertising
Starbucks Case Study
|#  "
‡ Definition D Advertising is a public notice meant to
convey information and invite patronage or some ot er
response.

|#  "  # 


‡ Information represents a distorted image of reality
‡ Response is negative

     "


‡ Mitigating arm
‡ Responding to stake olders needs
‡ Repairing image

         " |#  "


 # 
m e Starbucks Case

‡ mo some t is was clearly offensive after 9/11


‡ mo ot ers t is image is innocuous
New York Post, June 18t 2002D

´Starbucks Yanks Ad
  9/11µ

"As a New Yorker w o watc ed t e w ole [Sept. 11]


incident outside my window«seeing t e poster in
Starbucks directly across from Ground Zero adds some
resonance t at per aps t e people in Seattle did not
grasp," fumed customer Gregory Moore, w o first
complained to t e Post.
Starbucks response

"We deeply regret if t is ad was in any way misinterpreted to


be insensitive or offensive, as t is was never our intent. m e
poster, promoting mazo Citrus and mazoberry beverages, was
designed to create a magical place using brig t colors and
w imsical elements suc as palm trees and dragonflies."

Starbucks Press Release 6/16/2002


W y Recognizing t e Et ical
Dilemma Matters

‡ m ese are immediate decisions w ic will forever affect t e


public's opinion of t e company and t e value of t e world
wide brand.

‡ If t e company does not identify or recognize et ical aspects


of crisis, it·s too late.
Sc emas and ScriptsD W en Are You
in An Et ical Dilemma?
‡ Starbucks Collapse into CoolD
² ActionD Recognize post-9/11 environment &
immediately pull t e ads
² ResultD stake olders protected
Social Aspects of Advertising
m e advertising p ilosop y of United Colors of Benetton is
based on Luciano Benetton's belief t at 'communication
s ould not be commissioned from outside t e company, but
conceived from wit in its eart.'

´All t e colors of t e worldµ was one of t e first slogans to


appear in Benetton ads, and was later altered to ´United Colors
of Benetton.µ m e concept of united colors was suc a strong
one t at for t e first time in its istory, t e company adopted
t e slogan as its actual logo. Creative Head D Oliviero moscani
Benetton·s long journey toward its destiny as a subverter of stereotypes began wit its
cooperation wit Oliviero moscani and t e images of t e 1986 campaign. Happy groups
of multiracial kids were replaced by ´couplesµ representing an all-new interpretation of
difference. In t is cycle, t e word ´differentµ became a close cousin of ´controversial.µ
Benetton learned t at dealing wit t e issue of difference wit in t e process of
advertising is not an easy task. Often, an attempt to bring different individuals toget er
can lead to conflict instead of appiness and eup oria.
After equality and t e exaltation of differences, Benetton turned to t e
reality of w at is common to all and s ared by umankind. m e dialogue
t at Benetton ad begun wit its ´consumersµ (w om it ad always viewed,
above all, as men and women) gained dept .In 1991, during t e Gulf War,
t is image was created, a p oto of a war cemeteryD mo opposition against t e
irruption of ´deat µ as an advertising subject, Benetton answered wit a
birt , t e famous image of a newborn baby still attac ed to t e umbilical
cord.
At t is point, t e language of Benetton communication c anged radically. Wit t e February
·92 campaign came t e scandal of planetary proportions. m ese ads s owed news p otos of
real, ig -drama situationsD a man dying of AIDS, a soldier gripping a uman t ig bone, a
man assassinated by t e Mafia, a car on fire, a s ip being stormed by emigrantsð
m e reaction to t ese real-life p otos was sometimes violent. Many publications in
several countries refused to print t e campaign. By eliminating t e product from its
ads, violating t e taboo of disagreeable t emes, associating its name wit t e
representation of conflict and pain and, above all, abandoning t e false, comfortable
world of advertising stereotypes, Benetton cracked t e foundation t at eld up t e
culture, language and specificity of t e classic advertising message.
King James I  

‡ ...a custom lot esome to t e
eye, ateful to t e nose,
armful to t e brain, dangerous
to t e lungs, and in t e black
and stinking fume t ereof,
nearest resembling t e orrible
stygian smoke of t e pit t at is
bottomless (1604)
mobacco in Society
‡ Unique consumer product
² Kills 1 in 2
² Addictive
² Almost unregulated
‡ Pervasive drug use
² Nicotine self-administration
² Dirtiest possible delivery system
² 10 million dependent on nicotine
W o smokes?
‡ 13m smokers
² 28% men
² 26% women
² 15% professional
² 39% manual unskilled
‡ 82% start as teenagers
‡ 70% want to quit
² 4m try in any year
² c. 300,000 succeed
² 10m ex-smokers
Healt impacts
‡ Harm to smokers
² 120,000 UK premature deat s per year
² over 50 ealt impacts
² addiction c.10m dependent in t e UK
‡ Harm to ot ers
² lung cancer, eart disease, ast ma
² pregnancy complications and cot deat
² 17,000 ospital cases per year in under-5s
² welfare
Some Impacts
‡ Cancer ‡ Deforestation
‡ Heart & Circulation ‡ Indoor air pollution
‡ Respiratory ‡ Waste & Litter
‡ 20 fatal illnesses ‡ Ozone depletes Pesticides
‡ 50 non-fatal illnesses ‡ Labour exploitation
‡ Widespread addiction ‡ Fires
‡ Cost burden ‡ Criminal activity
‡ Productivity
meenage Smoking
PoliticsD mwo iews
‡ A legal adult consumer ‡ A let al product wit over 50
product t at people are free known ealt impacts -
to c oose if t ey want to including arm to non-
enjoy t e pleasure of smokers - sold by a predatory
smoking, knowing and industry w ic nurtures
accepting t e widely teenage smoking until
publicised and usually nicotine addiction takes over.
overstated risks.
How it works - part 1

Younger adult smokers are t e only source of


replacement smokers... If younger adults turn away from
smoking, t e industry must decline, just as a population
w ic does not give birt will eventually dwindle.

(RJ Reynolds, 1984)


How it works - part 2
A cigarette for t e beginner is a symbolic act. I am no
longer my mot er's c ild, I'm toug , I am an
adventurer, I'm not square «

As t e force from t e psyc ological symbolism


subsides, t e p armacological effect takes over to
sustain t e abit.

(P ilip Morris,1969)
Responses
‡ Informed c oice v. disinformation
‡ mobacco promotion
‡ maxation
‡ Smoking in public and workplaces
‡ Smoking cessation support
‡ Reduce armfulness of t e product
Warning...

´m e tobacco industry as succeeded w ere many


ealt education programs ave failed because
t ey capitalize on t e deep social needs t at most
compel adolescentsD to fit in, to exert
independence from parental control, and to
demonstrate p ysical agility and sexual allure.µ
Smoking in public places
Process of Communication
Wilbur Sc ramm Model
Linear Model of Communication

Realms of Realms of
Understanding Understanding

  " | " #

  


|

Noise Noise
$ |
Linear Model
ã    %&''( )  
   
1. Source D Individual/Organization sending t e message
2. Encoding D transferring intended message to symbolic style
t at can be transmitted
3. Signal D transmission t roug particular media
4. Decoding D understanding and interpreting t e symbolic
style
5. Receiver D Individual/org receiving t e message
6. Feedback D Receivers Communication Back to source
7. Noise D distortion of t e communication message
Realms of Understanding
m e concept ¶realms of understanding· is an important element
in t e concept of communication process because it
recognizes t at successful communications are more likely to
be ac ieved if t e source and t e receiver understand eac
ot er. m is understanding concerns attitudes, perceptions,
be aviour, and experience.
m e Ot er Forms/Role Players
‡ One Step
‡ mwo Step
‡ Multi Step
‡ Word of Mout
‡ Opinion Leaders
‡ Opinion Formers
‡ Opinion Followers
Process of Adoption
New Product Adoption m eory

‡ ADOPmION PROCESS
- m e consumer decision stages t at lead to innovation
acceptance/rejection
- A micro process process t at focuses on
internal forces of t e consumer
* Intra Personal (Psyc ) Influences
* Inter Personal (Social) Influences
* Product Selection Criteria
Process of Adoption
Prior Conditions
Needs/Problems

Communication C annels

Knowledge Persuasion Decision Implementation Confirmation

Adoption Contd. Adoption


Later Adoption
Socioeconomic Relative Advantage
Discontinuance
Personality Compatibility
Communication mriability Rejection Continued Rejection

Rogers 1983
Example
‡ Knowledge ² Ra ul cleans is teet , begins to notice
sensitivity
‡ Persuasion ² Notices t at ¶Special Paste· claim t ey reduce
sensitivity. Friend also confirms
‡ Decision ² Prepared to believe. Given free sample ( or
special price deal)
‡ Implementation ² Buys and tests it
‡ Confirmation ² Improves. Reads article t at w ets it.
Continues to buy it
An Example
Reliance India Mobile
Category Need D Knowledge/Persuasion
Awareness
Brand Awareness D Decision
Implementation
Brand Facilitation/Purc ase Intention

Web Worlds
501 Sc eme
Free malk
Process of Diffusion
New Product Diffusion m eory
- t e spread of an innovation from its source to t e ultimate
consumer.

- a macro process t at focuses on external forces on t e consumer


(c ange agents, c annels of information, types of information)

- occurs in a social system (a target audience, community, etc.)


›  
  
Process of Diffusion

Early Majority
Early Adopters Late Majority

Laggards

Innovators

2.5% 13.5% 34% 34% 16% 2.5% 13.5% 34% 34% 16%

mime
Process of Diffusion
‡ Innovators D Like new ideas ave large disposable incomes
‡ Early Adopters D Large opinion leaders, important in
speeding diffusion, younger and educated. Consult people.
Imp to Mktg Comms. As t ey speed process.
‡ Early Majority D Usually opinion followers, average age,
education, social status and income.
‡ Late Majority D Skeptical of new ideas, adopt because of
social and economic factors
‡ Laggards D Suspicious of all new ideas. Lowest on rung.
Speed of Diffusion

is influenced by«

* Competitive Intensity
* Good Supplier Reputation
* Standardization of mec nology
* ertical C annel Coordination
* Resource Commitments
Categories

‡ INNOAmORS - are first to buy and typically described as


venturesome, younger, well educated, financially stable, and
willing to take risks.

‡ EARLY ADOPmERS - are local opinion leaders w o read


magazines and w o are integrate into t e social system more
t an t e average consumer.
Categories

‡ EARLY MAJORImY - solid, middle-class consumers w o


are more deliberate and cautious

‡ LAmE MAJORImY - described as older, more conservative,


traditional, and skeptical of new products
Diffusion Process,
Adopter Categories
‡ Laggards  * *
² Resist c ange
 +
² Conservative
   #
² Like tradition    
² Often older & lower in *
socioeconomic status

‡ Nonadopters
² Refuse to c ange

 * ,
Life-Style C aracteristics of Innovators &
Non innovators
    #   # 
‡ Product Interest MORE LESS
‡ Opinion Leaders ip MORE LESS
‡ PersonalityD
Dogmatism OPEN-MINDED CLOSE-MINDED
Social C aracter INNER-DIRECm OmHER-DIRECm
Category Widt BROAD NARROW
‡ enturesome ness MORE LESS
‡ Perceived Risk LESS MORE
Life-Style C aracteristics of Innovators &
Non-innovators
    #  # 
‡ Purc ase and Consumption mraitsD
Brand Loyalty LESS MORE
Deal Proneness MORE LESS
Usage MORE LESS
‡ Media HabitsD
Magazine Exposure MORE LESS
melevision LESS MORE
Specialized Magazine MORE LESS
Life-Style C aracteristics of Innovators and
Non-innovators
    #   # 
‡ Demograp ic C aracteristicsD
Age YOUNGER OLDER
Income MORE LESS
Education MORE LESS
Occupational Status MORE LESS
‡ Social C aracteristicsD
Social Integration MORE LESS
Group Members MORE LESS
Some merminology
RELAmIE ADANmAGE - is an en anced bundle of benefits or
clear-cut advantages over existing offerings
COMPAmIBILImY ² is acceptance wit existing abits, values
and consumption be avior, similar usage as existing products
mRIAL ABILImY is t e experience or see t e newness
Easily tested, Low risk, Inexpensive, No special equipment
Free samples or coupons
OBSERABILImY - is t e opportunity for buyers to see t e
newness
COMPLEXImY - is a disadvantage for new products w ic slows
diffusion and may be offset by simplifying usage or t roug
extensive education
W y Some New Products Fail and
Ot ers Succeed

o  &  $  ã-


‡ Failure to Meet Customer Needs
‡ Poor miming
‡ Market Conditions
‡ Ineffective or Inconsistent Branding
‡ mec nical or Design Problems
‡ Overestimation of Market Size
‡ Poor Promotion
‡ Insufficient Distribution
m eory of Cognitive Dissonance
Cognitive m eory
‡ Mainstream psyc ology as moved from be aviourist to cognitive
orientation.
‡ Cognitive t eory is based upon D
² Information processing
² Problem solving
² Reasoning approac to uman be aviour

Individuals use info generated by external sources (advtg) and internal


sources (memory). m is process is t oug t, processed, transferred
into meanings or patterns and t en combined to form judgments
about be aviour.
W at do t ese pics tell you ?
Cognitive m eory
‡ Determinants t at are important to understand cognitive
orientation ² contribute to t e way individuals process
information.
² Personality
² Perception
² Learning
² Attitudes
² Environmental Influences
Personality
‡ Beamis Iris Ale D Is a traditional Iris Ale.
‡ Campaign launc ed in 1997 presented two sides of life, t e
red and t e black.
‡ Intended to reflect t e two sides of Iris personality
‡ Beamis Ale available in bot red and black drink allows
drinkers to satisfy complementary attitudes, tastes and
ocassions.
Perception
‡ olvo D regarded as a safe, reliable and environmentally
friendly car . For t e family.
‡ New ad ¶m e Porc e will be along in a couple of seconds·
s owed a olvo 850 estate car outpacing a Ferrari.
‡ Appeal to new markets, new segments..·boxy and boring· to
¶safe but sexy·
‡ Aim was to attract pre family and older post family buyers.
Learning
‡ Kellogs All Brand a s redded fibre breakfast cereal began to
lose market s are in t e late 1980·s.
‡ Researc revealed t at buyers understood t e importance of
fibre in t eir diet but assumed t at fres fruit, w ole meal
bread and vegetables were easier alternatives souces of fibre.
‡ In 1990 Kellogs launc ed a campaign t at compared t e
fibre content of All Bran wit ot er natural foods
‡ Buyers were encouraged to make a judgement about t eir
current diet and t e alternative t at was being presented as
patently superior.
Attitudes
‡ Skoda t e East European car manufacturer as long suffered an inferior
reputation in Western Europe
‡ W boug t s ares in 1991
‡ Launc ed Felicia in ·94 and Octavia in ·96
‡ Unprompted awareness of Skoda was 100%, need to communicate t e
c ange in owners ip.
‡ ¶We ave c anged t e car, can you c ange your mind?·
‡ C allenge to buyers to revisit t eir attitudes towards Skoda
‡ ¶W o·s be ind t e c anges at Skoda· ² Oct 1995
‡ ¶Judge for yourself· ² January 1997
‡ W·s efforts to c ange attitudes
Environmental Influences

Situational
Culture Social Class
Influences

Communication
Groups
Situations
Cognitive Dissonance
‡ Is a state w ere after any decision as been made a buyer
mig t feel tension about is/ er past decision because t e
product fails to reac expectations or t e consumer becomes
aware of a superior alternative

‡ Eg D Car Manufacturers D keep re-emp asizing positive


features on and on.
Four Main Paradigms
Leon Festinger 1957
‡ m e Free C oice Paradigm ² dissonance occurs as t e result
of t e c oice being made
‡ m e Belief Disconfirmation Paradigm ² dissonance comes
from exposure to info inconsistent wit one·s belief
‡ m e Effort ² Justification Paradigm ² dissonace occurs w en
a person engages in an unpleasant activity wit intentions to
gain a desirable result
‡ m e Induced ² Compliance Paradigm ² dissonance is
aroused w en one does or says somet ing t at is contrary to
an existing belief or attitude
WHY mHIS SmRESS ON
BRANDING ?
 |  ã
Art ur Anderson·s report on Fortune 500 companiesD

Market Capitalisation

N T , 5%
100%

80% Non-
Tangible,
60% 75%
Book Value,
95%
40%

20% Book Value,


25%

0%
1980s 1999
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Art ur Anderson·s report on Fortune 500 companiesD

m e | of a Company
is increasingly being determined by its
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SourceD Even More Aggressive Marketing


BRAND MANAGEMENm -
AN AGENCY PERSPECmIE
WHAm IS A BRAND ?
‡ A Brand is not a product D it is t e product·s source
and it defines its identity in time.

‡ m e value of a brand lies in its capacity to generate


cas flows.

‡ A brand is a landmark«it is enduring.


WHY IS BRAND
MANAGEMENm IMPORmANm ?

‡ moday, t e primary capital of any businesses is t eir brand.


‡ For decades, t e value of a company was measured in terms of
real estate, t en tangible assets, plants and equipment's.
‡ However«. it as been recognized t at a company·s real value
lies outside t e business itself, in t e  of its   
IN EFFECm«.
‡ A Brand is an Identity
(like all famous personalities as its distinctiveness)
BRAND IDENmImY S IMAGE

‡ Image is on t e receivers (consumers) side.


*
‡ Identity is on t e senders (manufacturer/agency)
side
FROM AN AGENCY POINm OF
IEW«.
‡ It is important ow we build Brand Identity
BRAND POSImIONING
‡ It as become common to analyze Brands according
to t eir positioning. m e term applies to a process of
emp asizing t e brand·s distinctive and motivating
attributes in lig t of competition.
BRAND POSImIONING
W y? For W om ?

W en ? Against W om ?
WHY ?
‡ W at is t e specific consumer benefit do we bring to
t e consumer ?
Sony brings innovation
Nokia connects people
Intel brings swiftness,fast processes
P ilips makes t ings better
FOR WHOM ?
‡ m is indicates t e marget Audience

Omega - for t ose w o·ve made it in life


Complan - for mot er·s of growing c ildren
WHEN ?
‡ m is indicates t e occasion to use t e brand
Surf Excel - w en you ave a front loading was ing
mac ine
Society mea - Anytime
AGAINSm WHOM ?
‡ Points to t e main competition

Kissan s Maggi
Colgate s Pepsodent
Clinic s Head & S oulders
BRAND POSImIONING
‡ Positioning is important as it reminds us t at it is
meaningless unless positioned in t e consumers
mind versus competition
But Positioning is more a reflection of a product,
and does not exploit its full potentialities
m us t e need for
A Brand Identity
BRAND IDENmImY
‡ mo become a power brand & remain so, a brand as
a duty to be fait ful to its identity.

Brand Image is a volatile and c anging notion - it is


concerned too muc wit t e appearance of t e
brand and not enoug wit its very being.
mHE BASIC DIFFERENCE

| 
|  |  

‡ Idealism Durability
‡ Fickleness Co erence
‡ Opportunism Realism
mHE BRAND IDENmImY PRISM
(mOOL)

P ysique Personality

Relations ip Culture

Reflection Self Image


IBM - PRISM

All data processing


systems Confident Square

Security, Assurance Big Biz, Ivy L


East C, Wall St.

m ose w o take biz ¶I am a pro·


seriously
APPLE - PRISM
Microcomputers
Easy Acess, all purpose Creative, Cool

Liberated, Friendly New Humanism,


West C, C ange

Young Minded,
Self En ancement
Autonomous
SOURCES OF IDENmImY
‡ m e Products (Benetton - colour)
‡ Power of Name (Apple - Computers)
‡ Brand C aracters & Symbols (Gattu, Amul Girl)
‡ mrademark and Logos (Mercedes Emblem)
‡ Geograp ical/Historical Roots (Swissair)
‡ Advertising D Content & Form (Marlboro Man)
India Kings
An Example
mHE BRAND IDENmImY PRISM
(mOOL)

P ysique Personality

Relations ip Culture

Reflection Self Image


mHE COMMUNICAmION
PROCESS
‡ Communication Effects
‡ Strategic Planning
‡ Consumer Insig t
‡ Discriminator/Ad Idea/Executional Idea
‡ Brand Experience
mHE 5 COMMUNICAmION
EFFECmS
‡ CategoryNeed
‡ Brand Awareness
‡ Brand Attitude
‡ Brand Purc ase Intention
‡ Purc ase Facilitation
All Consumers experience t ese effects before any
buying decision
CAmEGORY NEED
‡ Consumers Ä Ä of requiring somet ing (a product
or service) to      a perceived discrepancy
between t e current motivational state
and t e desired motivational state
BRAND AWARENESS
‡ Consumers ability to  (     ) t e
brand t e category in sufficient   to make
a purc ase
BRAND AWARENESS
‡ At t e product category level, a person won·t buy
unless e or s e  t e need. At t e brand level, a
person cannot buy unless e or s e is     of
t e brand. m us Brand Awareness     
Ä  over ot er Brand level communication
effects Ä   
BRAND AWARENESS
RECOGNImION S RECALL
‡ Brand Recognition
Brand is encountered 1st Buyer t en c ecks need
Ë     Ë  Ä  
‡ Brand Recall
CN encountered Buyer Recalls Brand
Ë Ä     Ë  
BRAND AWARENESS

Brand Identification    3.


At Point of Purc ase Brand Recognition
Prior to Purc ase Brand Recall

You    


   to be aware of t e brand, but
you   
   to buy it.
BRAND AmmImUDE

‡ Consumers      of t e brand wit respect


to its perceived ability to meet a      
   .

‡ Brand Attitude consists of an    or affective


component w ic   t e brand and a  or
cognitive belief t at     towards a particular
brand
BRAND AmmImUDE
‡ If motivation c anges, t e evaluation mig t c ange,
t erefore it is important t at we    
t at t e brand is perceived to meet
‡ BA = Emotional + Logical
‡ Emotional -   , Logical - 
‡ If motivation exists t en consumer will buy, need to
make t e best fit
BRAND AmmImUDE

    |    3.


No Brand Attitude Create Attitude
Moderately favourable Reinforce or
Reposition
Maximally favourable Maintain
Negative Attitude C ange
BRAND PURCHASE
INmENmION
‡ Consumers      to purc ase t e brand or to
take purc ase related action
BRAND PURCHASE
INmENmION
‡ It is a conscious plan to  Ä t e consumer
response sequence
‡ Low BPI - till t e time of purc ase
‡ Hig BPI - at t e purc ase point
 !  "    
PURCHASE FACILImAmION

‡ Consumers perception of     (4P·s)


t at can inder or stimulate purc ase
PURCHASE FACILImAmION
¶You can run a brilliant advertising campaign, and sales
go down. W y ?· -Rosser Reeves

È Your Product may not be rig t


È Your price may not be rig t
È Your distribution may not be rig t
È Your sales force may be bad
È Your competitor may be spending 5D1
È Your competitors promotion may be bleeding
you
PURCHASE FACILImAmION

 4      3.


No problems wit 4P·s Omit

Perceived Problems Incorporate


AmmRIBUmE S BENEFIm S
MOmIAmION

‡ Attributes - w at t e Brand as
‡ Benefits - w at t e consumers want
‡ Motivation - is w at consumers want t e benefit for
 Ä  
AN EXAMPLE

Category D moot paste


Attribute - Astringent
Benefit - Mout Fres ness
Motivation - I like t e feeling (sensory gratification), I ave
a date (social approval), remove a bad taste (problem
removal)
ADERmISING FAILS
BECAUSE
A) It·s more execution t an idea

B) It·s more idea t an execution

W ic is t e rig t answer ?
A great Agency delivers bot but be ind every
successful execution lies a
  |
Examples ??
m e importance of
Strategic Planing
WHY SmRAmEGIC PLANNING
?
‡ Client wants Creativity
² Creativity t at sells, adds value to t eir brand and
even more to t eir bottom line
‡ Consumers are Experts
² Not empty vessels, knowledgeable, know w en
t ey are patronized, bored or uninvolved
² Reject advertising t at does not appeal
ADERmISING SmAmISmICS

500 messages per day

76 get noticed

12 remembered

9 remembered and liked (1.8%)


ADERmISING MUSm MAKE
mHE CONSUMER...
S D Simple
M D Memorable
I D Interesting
L D Linked to t e Brand
E D Emotionally Involving

ðð D " #$   # 


% #!Ä # 
 
WHAm DOES SmRAmEGIC
PLANNING DO ?
‡ It elps discover t e Big Idea
WHAm MAKES AN IDEA A BIG
ONE ?
‡ It·s always fres , involving or surprising
‡ It is insig tful and pertinent to t e audience
‡ It may c ange t e way t e consumer sees t e Brand, or
even t e category it comes from
‡ It often triggers a positive response ¶A !·
SOME OBSERAmIONS

‡ Great Brands ave brand ideas â    & before


t ey ave creative ideas â  #'  &
‡ Great Creative ideas are based on       
‡ ( one gets big ideas  in a   
‡ An idea can come from  
WHAm IS A BRAND IDEA ?

‡ Simple idea of our brand t at people ave in t eir


minds
‡ W o t e brand is for ?
‡ Idea t at is bot motivating and differentiating
‡ Combination of need, benefit and personality
BRAND IDEAS

‡ Olivio - Longer lives


‡ Britis Automobile Association - 4t emergency
service
‡ Haagen Daz - ultimate sensual pleasure
‡ Coca Cola - Alternative to Water
BRAND IDEAS ARE ALWAYS FOR
SOMEONE

‡ Burger King is for Burger lovers

‡ BMW is for people w o love to drive

‡         !*   

‡ Surf Excelmatic - for t e ouse wit t e front loader

‡       * *    


mHE BIRmH OF BIG IDEAS

‡ Be ind every big idea is a  


 Consumer Insig t
WHAm IS A CONSUMER
INSIGHm ?
‡ A simple universal uman trut t at will connect
your consumer to your brand

‡ It resonates wit people, touc es a nerve, cuts


t roug
OUR BELIEFS ABOUm INSIGHm

‡ m e insig t sets t e brand apart by focussing on a


desirable difference w ic forms a closer
relations ip wit t e consumer

‡ Consumer Insig t inspires great creative ideas w ic


deeply connect wit t e consumer
SOME EXAMPLES

‡ Axe - Every man dreams of a woman making t e first


move
‡ Cup-a-soup - By 4 o·clock you are tired of tea and coffee
‡ Rolo - w en you ave somet ing delicious to s are, you
ave to t ink ard w at to do wit t e last one
CAEAm

‡ m ere is no rig t or wrong insig t


‡ m ere can be many insig ts
‡ One s ould  
  insig t t at is    to t e
brand and offers     Ä   
INSIGHmS PROIDE
NEEDS
Insig ts Need
If you do not let your c ildren Clean clot es get dirty and play
t ey won·t Dirt & stains be well rounded
removed

Every man dreams of a woman mo successfully


making t e first move seduce girls
GREAm CONSUMER
INSIGHmS

‡ Solves Business Issues


‡ Builds Brands
‡ Inspires Creative Ideas
‡ Involves Consumers
‡ Delivers Competitive Advantage
‡ CREAmES GROWmH
r  )
mHE INSIGHm MINE

People do not give you insig ts, t ey ave to


be    
Start in t e rig t place
From knowledge & understanding comes
inspiration
Ask smart questions
Look outside t e box
OLKSWAGEN PASSAm

‡ On a trip to Germany it was discovered t at


engineers were suc perfectionists t at t ey were
obsessed. One even said t at w en e was on
oliday e made ¶sand cars and not sand castles·
wit is kids.
Ë!   
  
  
ROLO

‡ Rolo can be s ared. But w en w en you ave


somet ing delicious to s are, you ave to t ink ard
w at to do wit t e last one
Ë* 
 
OLYMPUS

‡ In many categories, people do not know w ic


brand is t e best to buy. m ey look at someone t ey
can trust. W en t e camera market exploded, new
brands it t e market Olympus endorsed t eirs wit
David Bailey.
Ë*       Ä   Ä     

PEPSODENm

‡ All mot ers want t eir c ildren to ave strong and


ealt y teet . m ere is not ing more painful for a
mot er t an to see er c ild in pain.
Ë!Ä      Ä 
WHAm IS A
DISCRIMINAmOR ?
m e single most compelling reason for a consumer
to buy your brand
DISCRIMINAmORS

Can be based in
È Benefit
È Reason to believe
È Emotional alue
 
Ä  + 

AXE
‡ Insig t D ã     
‡ Discriminator D    
      

‡ Advertising Idea ,% ,ã     
Ä      'â   &
‡ Executional Idea ,-.
BRAND EXPERIENCE

Make t e consumer experience your brand


EXAMPLES...

‡ Was ing Liquid - Sout America


‡ Deodorant - Over ead Handle Bars in mrains/Buses
‡ Detergents - Stain Ambulance
‡ Pril ² Was ing mrain Windows