00 Advtg Mgmt

8/7/2019 00 Advtg Mgmt

1/132


2/132

Market / Consumer Behavior

Government

Competition

Ad Agency

Media

Research

Agency

Advertiser

Control Inst. Facilitating Inst.

Institutions Involved in the Field of Advertising


3/132

Research Suppliers

Advertiser Ad agency Media

Role of the Facilitating Institutions


4/132

Management is about :

- Planning- Decision Making

- Control


5/132

Advertising Management Analysis, Planning, & Decision Making

activities of the advertiser

Overall managerial direction & financial

support for

development of advertising

purchase of media time and space


6/132

5 - 6

Advertising Management

Evaluate role of advertising in IMC program.

Select in-house or external agency. Develop advertising management strategy.

Develop creative brief.


7/132

Framework of Advertising Planning &

Decision Making

Situation Analysis

Marketing Programme

Integrated Mar. Com. Plan

Advertising Plan

Implementation


8/132


9/132


10/132

The Advertising Plan Includes

Situation Analysis

Marketing Programme Setting Objectives -(Segmentation-positioning)

Media strategy & tactics

Message strategy & tactics

Implementation

Implementation and

Coordination (synergy

with other IMC tools)


11/132

Framework of Advertising & Decision Making

Situation Analysis

Marketing Programme

IMC /Advertising Plan

Facilitating Agencies

Social, legal & other

constraints


12/132


13/132

The Communications MixAudience Contact Points

Marketing

Communication

Point of

PurchasePublicity

Public

RelationsPackaging

Direct

Response

Sales

Promotion

EventsOutdoorBroadcast

MediaPrintMedia

DirectMail

Internet/

InteractiveMedia


14/132

Point of

Purchase

Publicity

Public

Relations

Direct

Marketing

Interactive

Marketing

Special

Events

Packaging

Sales

Promotion

Direct

Response

Earlier Approach to Marketing Communications

MediaAdver-

tising


15/132

Integrated Approach to Marketing Communications

Point ofPurchase

Publicity

Interactive

Marketing

Public

Relations

Direct

MarketingSpecial

Events

PackagingSales

Promotion

Direct

Response

M

ediaAdver-

tising


16/132

MARKETING COMMUNICATIONS PLANNING

Marketing Plan Review

Situation Analysis

Communications ProcessAnalysis

Budget Development

Program Development

In nIntegration & Implementation

Monitoring, Evaluating,Controlling

METHODS


17/132



Situation Analysis

Communications ProcessAnalysis

Budget Development

Program Development



METHODS

PUSH vs.

PULL


18/132

Integrated Marketing Communications Planning Model

Promotional Program Situation Analysis

Analysis of the Communications Process

Budget Determination

Develop IntegratedMarketing Communications Programs

Review ofMarketing Plan

AdvertisingSales

Promotion

PR/

Publicity

Personal

Selling

Direct

Marketing

Advertising

Objectives

SalesPromotionObjectives

PR/PublicityObjectives

PersonalSellingObjectives

DirectMarketingObjectives

Message

Strategy

SalesPromotionStrategy

PR/PublicityStrategy

PersonalSellingStrategy

DirectMarketingStrategy

Integration & Implementation ofMarketing Communications Strategies

Monitor, Evaluate & Control Promotional Program

Internet/

Interactive

Internet/InteractiveObjectives

Internet/InteractiveStrategy


19/132

Major Components of an

Advertising Plan Objectives

Target Selection

Message Strategy

Message Tactics

Media Strategy Media Tactics


20/132

The Role of Advertising.

Advertising plan in context of the Marketing Plan

The Advertising Plan must support and synergize with:

the elements of the Marketing Mix

and other elements of the Communication Mix


21/132


22/132

How does Advertising work ?

Advertising is

persuasive communication


23/132

The Advertisement Communication Process

Message

Source Receiver Destination

Media Word

Of

Mouth

Perception Process

Message


24/132

Throughvariousadvertisingeffects

Awareness/

familiarity

Brand Benefit

/ Information

Creating Image

/ Personality

Associating Feelings

with Brand

Linkage of Brand withpeers/experts/group

norms /culture

Reminder / Brand trial

inducement

BrandAttitude

PurchaseBehavior

The Persuasion

Process of

Advertising(The Advertising

Exposure Model)


25/132


26/132

ProblemRecognition

DECISION PROCESS

RELEVANT PSYCHOLOGICAL PROCESS

InformationSearch

Evaluation ofAlternatives

PurchaseDecision

Post Purchase

Evaluation

M

otivation Perception AttitudeFormation IntegrationProcess

Learning

Process


27/132

Cognitive Stage

Cognition = Knowledge Knowing

Perceiving

Conceiving ideas about the product.

basic information a consumer needs toknow

LEARN


28/132

Affective Stage

Affections/Emotions

likes or dislike

preference liking / dislike

Attitude towards the product - for / against

FEEL


29/132

BehaviorStage

Try the product / Reject outright

Purchase / Reject

Develop Loyalty / Just a trial / Remain

neutral

DO


30/132

LEARN FEEL

DO


31/132

Consumer ResponseM

odels Exposure and Familiarity Model (Repeated

Exposure Model

AIDA Model

Hierarchy of Effects


32/132

Consumer ResponseModels

AIDA Hierarchy InnovationofEffects Adoption

AttentionAwareness

Knowledge

Awareness

Interest

Desire

Liking

Preference

Conviction

Interest

Evaluation

Cognitive

Stage

LEARN

Affective

Stage

FEEL

Action

Stage

DO

Action Purchase

Trial

Adoption


33/132

CONSUMER RESPONSEMODELS


34/132


35/132

Hierarchy Of EffectsModel

6 steps towards purchase

Awareness & Knowledge Cognition

Liking & Preference - Affection

Conviction & Purchase- Behavioral


36/132

Hierarchy of Effects ModelUnaware

Aware

Comprehension & Image

Attitude

Action

Cognitive

Affective

Behavioral


37/132


38/132

Awareness

Knowledge

Liking

Preference

Conviction

Purchase

Teaser campaigns, Pioneering ads,

Jingles/ slogans

Internet banners

AnnouncementsInformative ads

Descriptive ads

Image/ celebrity

Demonstration of benefits

Competitive ads

Persuasive copy

Comparative ads, Testimonials

Direct-action retail ads

Point-of-purchase ads

Price deal offers

Reminder ads

Informative why ads


39/132

Advertising and Movement Toward Action

Teaser campaigns

AffectiveRealm of emotions.

Ads change attitudes and

feelings

CognitiveRealm of thoughts.

Ads provide information

and facts.

ConativeRealm of motives.

Ads stimulate or direct

desires.

Image copyStatus, glamour appeals

AnnouncementsDescriptive copyClassified adsSlogans, jingles, skywriting

Competitive adsArgumentative copy

Point of purchaseRetail store ads, DealsLast-chance offersPrice appeals, Testimonials

Purchase

Conviction

Preference

Liking

Knowledge

Awareness


40/132

Information Processing Model Cognitive Stage

Presentation

Attention

Comprehension

Affective Stage

Yielding

Retention

Behavior Stage - Behavior


41/132


42/132

Standard Learning Hierarchy

Learn(Cognitive)

Feel(Affective)

Do(Behavioral)


43/132

Low Involvement Learning

Learn(Cognitive)

Do(Behavioral)

Feel(Affective)


44/132

Three Orders Model of

Information Processing Degree of Involvement

Differentiation of Product


45/132

Three Orders Model of

Information ProcessingLevel of Involvement

HIGH LOW

Perceived

Level OfProduct

Differentiatio

n

H

I

G

H

Standard Learning Model

LEARN FEEL - DO

Low Involvement Model

LEARN DO FEEL

L

O

W

DO FEEL - LEARN


46/132

FCB Model

Involvement

Thinking- Feeling


47/132

FCB Model

TH

INKING FEELING

Involvement

H

I

G

H

INFORMATIVE (thinker)

Car, House, Furnishing, New Products

Model:- Learn - Feel Do (Rational)

Test :- Recall Diagnostics

Media:- Long Copy Format, Reflective Vehicles

Creative:- Specific Information, Demonstration

L

O

W


48/132

FCB ModelTHINKING FEELING

Involvement

H

I

G

H

AFFECTIVE (feeler)

Jewellery, Cosmetics, Designer Clothing

Model:- Feel Learn Do (Emotional)

Test :- Attitude Change, Emotional

ArousalMedia:- Large Space, Image Specials

Creative:- Executional Impact

L

O

W


49/132

FCB ModelTHINKING FEELING

Involvement

H

I

G

H

L

O

W

HABIT FORMATION (doer)

Food, Household items

Model:- Do - Learn Feel (Responsive)

Test :- Sales

Media:- Small Space Ads, 10 sec spots, Radio,

POP

Creative:- Reminder


50/132

FCB Model

THINKING FEELING

Involvement

H

I

G

H

L

O

W

SELF-SATISFACTION (reactor)

Cigarettes, Liquor, Candy

Model:- Do Feel Learn (Social)

Test :- SalesMedia:- Billboards, Newspapers, POP

Creative:- Attention


51/132

FCB Model

THINKING FEELING

Involvement

H

I

G

H

INFORMATIVE (thinker)Car, House, Furnishing, New Products

Model:- Learn Feel Do

(Rational)

Test :- Recall Diagnostics

Media:- Long Copy Format, Reflective Vehicles

Creative:- Specific Information, Demonstration

AFFECTIVE (feeler)

Jewellery, Cosmetics,Designer Clothing

Model:- Feel Learn Do

(Emotional)

Test :- Attitude Change,

Emotional Arousal

Media:- Large Space,

Image Specials

Creative:- Executional

Impact

L HABIT FORMATION (doer) SELF-SATISFACTION(reactor)

FCB M d l


52/132

FCB Model


53/132

Elaboration Likelihood Model

Routes to attitude change

Central Route

Consciously & diligently

consider the information

Careful consideration

Thinking about pros and

cons

Peripheral Route

Attitudes are changed

without active thinking

Associate the brand withpositive or negative aspects

or executional cues from the

ad

Accept shortcuts toconclude brand is superior


54/132

Elaboration Likelihood ModelAdvertisement

Motivated to

Process

Information ?

No

Yes

Ability to

Process

Information ?

Peripheralcue present?

No

Central Route of Processing

Yes

Yes

Peripheral Route of

Processing


55/132

ELM Implications

Ad Medium broadcast media P

Involvement or Motivation less P

Knowledge level less P

Comprehension

Distraction

Emotion

Need for cognition


56/132

Take-away

In low involvement situations, it may be

more appropriate to create ads that raise

awareness and change brand attitudesthrough executional liking and credibility

In high involvement situations it may be

better for ads to provide strong reasonswhy brand is superior


57/132

Cognitive Response Approach

Cognitive Thoughts

Counter Arguments vs. Support Arguments

Managing CA and SA Repetition

Difference from previously held belief

Strength of argument

Nature of emotion being felt


58/132

Recall & Persuasion

Recall leads to persuasion in a low

involvement situation

Recall - necessary but not sufficient

condition for persuasion

Recall -Awareness message content -

persuasion


59/132


60/132


61/132



Situation Analysis

Communications Process

Analysis

Budget Development

Program Development



METHODS


62/132

Integrated Marketing Communications Planning Model

Promotional Program Situation Analysis

Analysis of the Communications Process

Budget Determination

Develop IntegratedMarketing Communications Programs

Review ofMarketing Plan

AdvertisingSales

Promotion

PR/

Publicity

Personal

Selling

Direct

Marketing

Advertising

Objectives

SalesPromotionObjectives

PR/PublicityObjectives

PersonalSellingObjectives

DirectMarketingObjectives

Message

Strategy

SalesPromotionStrategy

PR/PublicityStrategy

PersonalSellingStrategy

DirectMarketingStrategy

Integration & Implementation ofMarketing Communications Strategies

Monitor, Evaluate & Control Promotional Program

Internet/

Interactive

Internet/InteractiveObjectives

Internet/InteractiveStrategy


63/132

Process starts with an analysis of the

Brands external & internal environment

Marketing Programme

Market analysis

Competitor analysis

Brand Analysis- SWOT

Advertising Plan

Implementation


64/132

The Role of Advertising emerges from the

Marketing Programme

Situation Analysis Determines the role of each

elements of the marketing

mix including MarketingCommunications

Indicates how all elements

will be coordinated to

support and synergise witheach otherIMC & Advertising plan

Implementation


65/132

The Advertising Plan Includes

Situation Analysis

Marketing ProgrammeSetting Objectives -

(Segmentation-positioning)

Media strategy & tactics

Message strategy & tactics

Implementation

Implementation and

Coordination (synergy

with other IMC tools)


66/132

Framework of Advertising & Decision Making

Situation Analysis

Marketing Programme

IMC /Advertising Plan

Facilitating Agencies

Social, legal & other

constraints


67/132

Executive Summary


68/132

Situation Analysis

Historical context

Demographic trends

Market Analysis

Competitor analysis

Product characteristics

Characteristics of firm

Brand SWOT


69/132


70/132

Objectives

Types of objectives

Promotional objectives

Brand image objectives

Awareness objectives

Attitude shifts

Purchase intent trial, repeats, more usage,loyalty


71/132

Objectives

Quantitative benchmarks

Measurement methods

Criteria for success

Time frame


72/132

Budgeting

Methods

Amount

Justification

Break up for advtg, sales pro, DM, website

ads, PR, events, etc


73/132

Strategy

Clear and concise articulation of how the

plan will achieve its objectives

Creative strategy

Message strategy

Media strategy


74/132

Execution

Copy Strategy

Media Plan

Integrated Marketing Communications used


75/132

Evaluation

Criteria

Methods

Consequences & contingencies


76/132

Marketing Versus Communications Objectives


77/132

MarketingObjectives

Stated in the firms

marketing plan

Through the overall

marketing plan

Quantifiable - sales,

market share, ROI

Accomplished in a

given period of time

Realistic & attainable

MarketingObjectives

Marketing Versus Communications Objectives

CommunicationsObjectives

Derived from the

overall marketing plan

More narrow than

marketing objectives

Based on particular

communications tasks

Designed to deliver

appropriate messages

Focused on a specific

target audience

Vs.Vs.

Many Different Factors Affect Sales


78/132

Theeconomy

Distribution

Technology Price

Advertisin

g andpromotion

Competition

Productquality

PriceTechnologyDistribution

Productquality

CompetitionAdvertising

&promotion

Many Different Factors Affect Sales

SALES


79/132

Sales- A Meaningful Advertising

Objective??

Difficult to identify the impact of

Advtg.onSales

Advtg. impact is felt over time

Isolating ad impact from other

elements of the marketing mix is

difficult


80/132

Advertising

New Customers

Change Attitude /

Improve Image

Future SalesImmediateSales


81/132

The Basis for Advertising

ObjectivesSales growth comes from

New customers buying

Old customers staying loyal

Old customers consuming more


82/132

Objective of Advertising

Communication Association

Persuasion

Behavior Dynamics


83/132

Behavior Dynamics

Old customers staying loyal Increase Share of Requirements - more & frequent

usage

Reducing Attrition & Price elasticity (price

sensitivity) New Customers

Customers of other brands / categories

NNot buying product

EExisting

customers

OBuying

Other brands

Marketing / Sales Strategies & Behavioral Objectives


84/132

Secondary Demand-

New customers using

other brands

Primary Demand -

Customers trying

the category for the

first time

Existing customers

Loyalty

More consumption new

uses, more usage

Behavioral

Responses

that drive

Purchase

Trial

Purchase

Trial

Purchase

Loyalty

Increased

usage / SOR


85/132

Persuasion

Process of

Advertising

Awareness/

familiarity

Brand Benefit

Information

Creating image /

personality

Associating feelings

with Brand

Linkage of Brand with

peers/experts/group norms


inducement

BrandAttitude

Purchase

Behavior

These Intervening Variables between Advertising & Action are more

effective Operational Advertising Objectives than Sales


86/132

Persuasion

Process of

Advertising

Awareness /

Familiarity

Brand Benefit

Information

Creating image -

personality / users

Associating feelings

with Brand use

Linkage with peers /

experts/group norms


inducement

Purchase

These Intervening Variables have a causal relationship between

Advertising & Sales

Trial Purchase

& Loyalty

Trial Purchase &

Increased usage

Loyalty

Loyalty

Loyalty

Advertising Objectives


87/132

Advertising Objectives

Reflect the Target Segment

The segment and sub-segment can be defined by

Behavioral measures non-users, other brand users,

heavy / light / loyal users etc.

Advertising response measures unaware, not

convinced of key benefit, diffused / sharp image, etc

Lifestyle - attitude & opinions, interests

Benefits sought

Demographic, psychographics, geographic basis -

more relevant for media decisions

Characteristics of Objectives


88/132

Attainable

Measurable

Specific

Realistic

Specific

Measurable

Attainable

Realistic

Not MutuallyExclusive

Characteristics of Objectives

Objectives

MARKETING COMMUNICATIONS


89/132

MARKETING COMMUNICATIONSOBJECTIVES

Establish a ProductImage

Stimulate Interest

Differentiate the Product

Establish CustomerRelationships

Establish,Modify, or

Reinforce Attitudes

Establish Understanding Build Support &

Acceptance

IncreaseMarketPenetration

Stimulate Demand

Stimulate Impulse

Buying Encourage Product Trial

Develop Repeat

Purchase Behavior

Increase Rate ofConsumption

Influence Sales Volume

Develop Sales Leads


90/132

Hierarchy of Effects Model - DAGMAR

Unaware

Aware

Comprehension & image

Attitude

Action

Cognitive

Affective

Behavioral

DAGMAR Approach A communication task to be accomplished

amongst a defined audience, in a specified period of time


91/132

Awareness

Knowledge

Liking

Preference

Conviction

Purchase

Teaser campaigns, Pioneering ads,

Jingles/ slogans

Internet banners

Announcements

Informative ads

Descriptive ads

Image/ celebrity

Demonstration of benefits

Competitive ads

Persuasive copy

Comparative ads, Testimonials

Direct-action retail ads

Point-of-purchase ads

Price deal offers

Reminder ads

Informative why ads


92/132

Defining Advertising Goals for

Measured Advertising Results A specific taskindicated clearly to be

measurable

A starting point set Benchmarkagainstwhich goal achievement can be measured

A Target Segment specified precisely

The Time Period for achieving the desiredresponse indicated

Written Goal

Inverted Pyramid of Communications


93/132

Inverted Pyramid of Communications

Effects

90% Awareness

70% Knowledge

40% Liking

25% Preference

20% Trial

5% Use


94/132

Setting Objectives Using the

Communications Effects Pyramid Product: BKC Shampoo - Period: 6 months

Obj 1: create Awareness in 90% target audience

(TA) Obj 2: create Interest in 70% of TA

Obj 3: Positive feelings in 40% TA and

preference in 25%

Obj 4: trial use from 20%

Obj 5: 5% main regular use


95/132

Examples of Advertising

Objectives Consumer Product

target market: 100,000 prospects in the

northern sales region

marketing objective: achieve high level of

product understanding in the target market

advertising objective: persuade 15% oftargeted prospects to request a free sample


96/132

Examples of Advertising

Objectives Business Product

target market: 2,000 manufacturers who use

electrostatic coating processes

marketing objective: increase market share

to 20%

advertising objective: persuade 40% ofprospects to request product fact file


97/132

Common Promotional Objectives

Create & Maintain Brand Image

Increase consumer awareness, curiosity

Change consumer beliefs & attitudes

Influence purchase decision

Stimulate trial purchase

Convert one-time product users to repeat

purchasers


98/132

Common Promotional Objectives

Switch consumers from competing brands

Encourage brand loyalty

Stimulate more frequent use

Increase sales

Communication Objectives: Are stated in three parts:


99/132

Target Audience

Customers brand loyal, favourable brand switchers

Non-customers new category users, other brand switchers, other

brand loyals Behavioural Objectives what is the behaviour that you want this

communication to cause in your target audience

Trial

Repeat purchase

Purchase related behaviour

Repeat consumption

Application

Communications the effect that you want your communication to haveon the target audience

Create category need

Brand awareness Brand attitude

Brand purchase intention

Purchase facilitation

DAGMAR Difficulties


100/132

DAGMAR Difficulties

Response Hierarchy Problems

Doesn't always define theprocess people use to reach

purchase/use.

Attitude - BehaviorRelationship

Attitude change doesn't always

lead to change in actions orbehavior.

Sales Objectives Are Needed

Sales are all that really counts,

not communications objectives.

Costly and Impractical The research and efforts cost

more then the results are worth.

Inhibition of Creativity

Too many rules and structure

curb genius.

Legitimate ProblemsLegitimate Problems Questionable ObjectionsQuestionable Objections


101/132

Challenges to DAGMAR

Does not measure Sales

Broad outline does not give enough details(which hierarchical level)

Measurement is a problem

System noise other factors affecting goal

Model may not hold good in every situation


102/132

Unawareness/Awareness

Comprehension

Conviction

Action

IMC Objectives


103/132

IMC Objectives

1. To create & maintain an image for abrand

2. To increase consumer awareness of and

curiosity about a brand3. To change consumers beliefs or

attitudes about a brand

4. To influence the purchase intention for a

brand

5. To stimulate trial use of a brand

IMC Objectives


104/132

IMC Objectives

6. To convert one-time product users intorepeat purchasers

7. To switch consumers from a competing

brand8. To encourage brand loyalty

9. To stimulate more frequent use

10.To increase sales


105/132

Segmentation and Positioning


106/132

Segmentation is about deciding

which consumers the

Advertising should be targeted at


107/132

The Target Marketing Process

Identify markets with unfulfilled needs

Determining market segmentation

Selecting market to target

Positioning through marketing strategies


108/132

Five-Step Segmentation Process

1. Group consumers according to their needs.

2. Group marketing actions, usually the products offered,

available to the organization.

3. Develop a market/product grid - relate the marketsegments to the firms products and actions.

4. Select the product segments toward which the firm directs

its marketing actions.

5. Taking marketing actions to reach target segments.

B f S t ti


109/132

Bases for Segmentation

Geographic Segmentation State - region - country - climate

Demographic Segmentation

Age, sex, income, education, occupation, social class

Psychographic Segmentation AIOs, (Activities, Interests, Opinions)

VALS (Values and Lifestyles)

Personality traits

Behavioristic Segmentation

Usage, loyalties, use occasions

Benefit Segmentation

Types of specific needs or wants to be satisfied.

Segmentation Approaches


110/132

Segmentation Approaches

A Priori basis : the market is segmented before any data on the

market place is examined

Age

Income

Usage

Loyalty

Geo-location

Empirical Segmentation : created on the basis of differences in

Attitude and benefits sought

life-style - AIO

culture


111/132

Approach Implementation

Both are used together but in different order

A priori segmentation starts with variables such as

income etc and then examines attitudes and benefits

Empirical segmentation starts with benefit

segmentation and then see how these clusters are

different in terms of demographics

Selecting a Target Market


112/132

Segmentation Strategies

Determining how many segments to enter

Undifferentiated Marketing offering one product or service to the

entire market

Differentiated marketing competing in a number of segments with

separate marketing strategies for each

Concentrated Marketing focusing on one market segment

Determining Which Market


113/132

e e g W c e

Segments Offer the Most Potential

Identify the group that is most likely to respond to thebrand offering

Determine sales potential of the segment

Determine opportunities for growth of the market segment.

Analyze the competition in the segment (segments notbeing served well by competition)

Analyze the companys ability to compete in the market

segment

Decide how to compete in the market segment


114/132

Segmentation Decision Check List

Can the size of the market segment bemeasured?

Is the market segment large and profitable

enough to serve? (large and growing in size)

Is the segment identified accessible? Can itbe reached effectively and efficiently?

Can effective marketing programs bedeveloped to attract and serve the segmentidentified?


115/132

TM and Media Reach Approaches

Controlled Coverage using niche media to

reach only the desired segment e.g. trademagazines

Customer Selection using mass media to

Reach is directed at mass audiences


116/132

The Positioning Process


117/132

Positioning ConceptThe desired perception or

association management wants

target customers to have for a

firm and/or its products

Positioning EffectivenessThe extent to which managements

positioning objectives are achieved

in the market target

Positioning StrategyThe combination of marketing

actions used to portray the

positioning concept to targeted

buyers

Positioning of the brandThe positioning of the brand by

the buyers in the market target

Market

Target

Positioning Strategy Development

B k d A l i


118/132

Process - Background Analysis

1. Identify the competitors

2. Assess perceptions of competitors

3. Determine their positions

4. Analyze consumer preferences

6. Monitor the position

5. Make the positioning decision

Product/Service and Brand


119/132

Positioning

Al Ries , Jack Trout - BASIC QUESTIONS TO ASK

1. What position, (if any) do we currently hold in the mind ofcustomers?

2. What position do we want to hold?

3. Whom do we have to compete against to establish this position?

4. Do we have the resources to occupy and hold the position?

5. Can we stay with one consistent positioning strategy?

6. Does our marketing and advertising match our positioning strategy?

Positioning Strategy Approaches


120/132

Positioning Strategy Approaches

Product/Service or Brands can be positioned by singleor multiple approaches:

Product attributes or consumer benefit

Price-quality

Use or application

Users

Product class

Cultural symbols

Competitors


121/132

Positioning Decision Check Points

Select and Evaluate the position

An economic analysis

Appeals to a large and growing segment

Penetration possibilities competitive edge to attack

competition

Dont be what you are not Monitor the position

Positioning Decision


122/132

Positioning Decision -

Imperatives Segmentation commitment

Stick with the Advertising that works

Consider using symbols


123/132

Positioning Strategy Execution

A relative concept that must indicate the

position of the brand vis-a-vis other brands -

differentiation

It determines the nature of the elements of the

marketing mix

Best communicated through Advertising


124/132

Product Decisions

A productproductis a bundle of benefits or valuesthat satisfies the needs of consumers

Product symbolism refers to what a product or

brand means to customers Product quality, branding, packaging, and

company name contribute to product image

Branding:

Brand name communicates attributes and meaning

Advertising creates and maintains brand equity whichresults from the image and/or impression of a brand


125/132

Packaging


126/132

g g

Traditional functions of packaging: economy, protection, storage

Packaging has become increasingly important

because:

self service emphasis of many stores

buying decisions made at point-of-purchase

often customers first exposure to product

Packaging is a way to communicate to consumers


127/132

Pricing Decisions

Price must be consistent with perceptions of the product

Higher prices communicate higher product quality

Lower prices often reflect bargain or value perceptions

A product positioned as high quality while carrying a lowerprice than competitors may confuse customers

Price, advertising and distribution must be unified to create

the position for the product or service.


128/132

Distribution Channel Decisions

Channel decisions involve:

Determining the type of channel system: Direct channels

Indirect channels

Selecting, managing and motivating marketing

intermediaries such as

Wholesalers Distributors

Brokers

Retailers


129/132

"Push" Techniques


130/132

Push Techniques

Point of sale displays, racks, stands

Trade deals, special displays

Dealer premiums, prizes, gifts

Cooperative advertising deals

Advertising materials, mats, inserts

Push money or"spiffs"

Collaterals, catalogs, manuals

Trade shows, conventions, meetings

"Pull" Techniques


131/132

Pull Techniques

Sampling, free trial

Coupons

Premiums or gifts

Contests, sweepstakes

Price-off deals

Refunds/rebates

Frequency/loyalty programs

Point-of-purchase advertising

Marketing and Promotions Process Model


132/132

g

Competitiveanalysis

Targetmarketing

Identifyingmarkets

Marketsegmentation

Selecting

a targetmarket

Positioning

Productdecisions

Pricingdecisions

Channel of

distributiondecisions

Promotionaldecisions

advertisingdirectmarketinginternet/interactivemarketingsales

promotionpublicityand publicrelations

Resellers

UltimatecustomerConsumersBusinesses

MarketingStrategy and

Analysis

TargetMarketingProcess

Marketing PlanningProgram Development

Promotion tofinal buyer

Target Market

Promotionto trade

Documents

00 Advtg Mgmt