Advertising Nike

Marketing Communications
Prof. Sumitro Banerjee

Introduction to Marketing MBA Berlin, 12 March 2013
Session 13 & 14: Creative Brief for Advertising
Marketing Communications: Creative Brief for Advertising
Session 13 & 14

Case: Nike Football: World Cup 2010 South Africa
12 March 2013
Product Positioning
Two aspects of positioning How is your company/product/service perceived. The process of choosing a positioning for a product (that the marketer does) The perceived position can be a function of chance
12 March 2013
What is the make of car in these photos?
12 March 2013
Product Positioning
Two aspects of positioning How is your company/product/service perceived. The process of choosing a positioning for a product (that the marketer does) The perceived position can be a function of chance 1997 Princess Diana crash in Mercedes (not a safe car) The perceived position can be a function of competitor actions
New entrant Losec in beta blocker category: maximum acidity control Zantacs response only use Losec as a last resort
12 March 2013
Product Positioning
What do we mean? Positioning relative to other products Duracell lasts longer than Eveready Positioning relative to market needs Raid kills bugs dead Strategy behind it Is the promise clear? Should the promise be clear? Can it be delivered?
vs
12 March 2013
Singapore Airlines
Singapore Girl, what a great way to fly
12 March 2013
The Singapore Girl: A great way to fly
http://www.youtube.com/watch?v=_ecVPlKg56k&list=PL4E3749C1BC438A53
12 March 2013
Cathay Pacific
Arrive in Better Shape
12 March 2013
Swissair
Time is everything
12 March 2013
Time is Everything
http://www.youtube.com/watch?v=c4oRjQkceEU&playnext=1 &list=PL9208C5A349502752&feature=results_video
12 March 2013
10
Clarity of Promise versus Confidence in delivery

Singapore Airlines has had the same campaign for more than 30 years.
Emotional campaign Cannot be measured Intangible
The Singapore Girl
What's the benefit? Is it attractive? Is the benefit clear? Can it be measured? What type of benefit is it? Emotional vs. Functional (Show ads) Did it work? Comfort, service, (sex?) Yes for the target mkt (men) Not really Hard Emotional
Cathay Pacific
Feel better than other airlines? Yes Yes Yes with a survey Functional
Swiss Air
Cathay Pacific had to change campaigns

With Arrive in Better Shape
Better than competitors or better than when you boarded the plane? Any competitor becomes a benchmark External pressure from customers Internal pressure from employees Warmth We are a hub.. Asia is dynamic and successful
Arrive on time Yes Yes Yes Functional
New campaign Heart of Asia (mid 1990s)
Swissairs Time is everything had to change

Being on time is a fantastic benefit
You dont control it If you dont deliver, customer wont believe anything you say
Yes, touches you Running since 80s
No because too many ref. points.
Time not in their control
12 March 2013
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Product Positioning
What do we mean? Positioning relative to other products Duracell lasts longer than Eveready Positioning relative to market needs Raid kills bugs dead Strategy behind it Is the promise clear? Should the promise be clear? Can it be delivered? Singapore Airlines, Cathay Pacific, Swissair Emotional or functional
12 March 2013 Prof. Sumitro Banerjee
vs
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Where does positioning have an impact during decision-making?

Are you in the category?
Potential customer
Extensive problem solving
Limited / routinized / habitual decisionmaking

Quick and easy
Activated need(s) / goal(s)
Slow and difficult
Generation of potential solutions
internal & external search larger number of options
internal search (memory) small number of options generated
Solution evaluation:
consideration value preference
internal and external search for product & supplier information more complex decision rules: e.g., weighted multi-attribute score
internal search (memory) simple decision rules (heuristics): habit (routine) "works best": best overall evaluation or performance on most important benefit price: lowest ("all the same") or highest (price=quality) price affect: best liked brand familiarity: best known others' preferences: e.g., opinion leader
Brand Choice
Utilization
Post purchase / utilization evaluation

Where are you in the category
12 March 2013 Prof. Sumitro Banerjee 13
GENERATING POTENTIAL SOLUTIONS
The Awareness Pyramid
Dominant Brand Top of Mind Brand Recall Brand Recognition Unaware of Brand
based on Aaker, 1991, p. 62
Dominant brand:
a brand that is the only brand recalled
Top-of-mind awareness
the first-named brand in an unaided recall task
Brand recall: unaided awareness Brand recognition: aided awareness

respondents are given a set of brand names from a given product class and asked to identify those that they have heard of before
Prof. Sumitro Banerjee 14
12 March 2013
Solution Evaluation: Brands have links (emotional, to characteristics, and to behaviors)

Behavior (Habits, Routines)
Brand
Beliefs, thoughts (Cognition) Availability vs Accessibility of associations: available: present in the customer's mind accessible (association strength): how quickly and reliably do the associations come to mind? Breadth: does the customer have all three types of associations?
Affect (Emotion, Feelings)
Think about Apples iPod

Jason: an iPod fanatic who lives in Syracuse, NY
http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html
12 March 2013
16
Solution Evaluation: Brands have links (emotional, to characteristics, and to behaviors)

Every night Jason plugs in the iPod to recharge it & hes listening to it before he walks outside in the morning.
Brand
On my 40 MB iPod I have 3514 songs
Beliefs, thoughts (Cognition) Affect (Emotion, Feelings)
I love my iPod. Its great
12 March 2013
17
MANAGING ASSOCIATIONS
DEFINING TARGET ASSOCIATIONS Existing brand GAP?
small gap between actual and target associations: brand rebuilding big gap between current and target associations: low awareness: brand rebuilding high awareness: rebranding?
OTHER: competitors regulators researchers customers' experience media, etc.
MEASURING ACTUAL ASSOCIATIONS
BUILDING ASSOCIATIONS POSITIONING, CONDITIONING, PRACTICING MARKETING MIX Brand elements Product Price Communication Distribution
Prof. Sumitro Banerjee 18
12 March 2013
BUILDING ASSOCIATIONS
Develop Over time
Positioning
Brand
Conditioning
Beliefs, thoughts (Cognition)
Affect (Emotion, Feelings)
12 March 2013
19
DEFINING TARGET BELIEFS: THE POSITIONING STATEMENT(S)
To
__________________________ __________________________
(Target customer) (Brand) (Category: WHAT is it? Suggests POPs = Points-of-Parity) (Purchase/use situations: WHEN to use?) (Customer/user positioning: for WHOM?) (PODs = Point(s)-of-Difference: WHY to prefer?) (Support for PODs: REASON WHY)
is a which is suitable/ appropriate for used by and offers because
__________________________
__________________________ __________________________ __________________________ __________________________
12 March 2013
20
Example from NFLD: Dominion Ale
To: Traditional Newfoundland (males 30-50): distrustful of mainlanders and proud of being from the Rock What: Dominion Ale Category: Regular lager beer (POP) When to use With good friends, in bars and at home Used by Beer drinkers who value both quality and Newfoundland tradition when they choose a beer And offers Quality and tradition like no other beer on the market Support one of only two major Newfoundland brands that are still available (POD) Carries name of original brewer (Bennett) and brewed continuously since 1827 (POD)
12 March 2013
21
Dominion Ale Positioning
12 March 2013
22
Generating and Evaluating Positioning Options
Customers
Valuable to customers? Across segments? Identify potential benefits and costs of product, by segment
Identify needs & their importance, by segment Identify unmet needs (GAPS)
Options
Deliverable? technically perceptually (believable/credible) Profitable?
Identify: PODs: Points-of-difference: +, POPs: Points-of-parity
Distinctive? POD? Sustainable?
Company
Product (& company) characteristics & perception (technical & perceptual position)
Competitors
Identify competitors, by segment Characteristics & perception (technical & perceptual position)
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Result of Positioning Efforts
12 March 2013
24
Building Associations
Law of self-persuasion Law of consistency Law of force Law of focus Law of novel redundancy
12 March 2013
25
The Law of Self-persuasion Persuasion is strongest when customers make favorable elaborations/inferences on the basis of the information presented, or draw their own favorable conclusions inference: the customer forms a belief that goes beyond the information which is presented category:
Japanese SLR cameras Attitude toward category J SLR cameras are very good
The Rolls-Royce of cameras
PENTAX N5
halo-effect (evaluation-based inference)
similaritybased inference (analogy) high quality, prestigious

12 March 2013
optical quality
functional (causal) inference
autofocus good pictures
The Pentax N5 is very good

26
The Law of Consistency
All marketing mix elements must contribute to the target associations.
TARGET ASSOCIATION(s)
Product Price Place
Promotion
12 March 2013
27
The Law of Force Intense promotion builds strong associations (accessibility - high probability and speed of retrieval; top-of-mind presence) amount of repetition (power function) recency of repetition (exponential decay)
Accessibility (Strength)
PRACTICE
NO PRACTICE
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The Law of Focus
Brand
Attrib. 1
Attrib. 2 Brand Attrib. 1 Attrib. 3
THE LAW OF FOCUS: concentrate on a small number of associations focus builds strength focus avoids interference ("fan effect")
12 March 2013
29
The Law of Novel Redundancy
Attitude
Frequency of exposure
THE LAW OF NOVEL REDUNDANCY: avoid wear out by finding new ways of communicating the associations Different executions Different contexts Different media
12 March 2013
30
Questions for Nike before World Cup 2010
What is the positioning of Nike before the World Cup? What does Nike want to achieve at the World Cup? What should Nike do ahead of the World Cup about
1. 2. 3. 4. Advertising Digital marketing Sustainability and Social responsibility?
12 March 2013
31
Nike Revenues 1994-2006/8
2006/8: $1.4 billion 1994: $40 million

Performance, Conservative Adidas
Nike
Fun, Creative
12 March 2013
32
Timeline of Nikes World Cup related efforts
November 30, 2009
February 24-25, 2010
May 20
May 22
June 9
June 10
June 11
June 21
July 11
Release of Write the Grand opening Launch of The World Cup kicks Nike announces Nike partnership with Innovation Write the Future of Nike Soweto Chance digital off (RED), Lace Event: Future released on TV Community based global Up. Save Lives Launch of commercial on during UEFA Football soccer talent Facebook Champions Training Centre search Nike League Final Mercurial Vapor Superfly II Roll out and exhibition of Nike Football+ Launch of Nike 2010 World Cup jerseys made from 100% recycled material
Nike Life World Cup Final Center, a Spain vs gigantic LEC Holland screen in downtown Joburg user submitted messages
12 March 2013
33
Nike for a Better World Recycled Jersey
Source: Nike Website
12 March 2013
34
Nike for a Better World Life Center Joburg
Source: Nike Website
12 March 2013
35
Brand rehab
The Economist, Apr 8th 2010
12 March 2013
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A Creative Brief: A document created by an Ad Agency for its client

Topic
1. Problem definition what is the problem or situation leading to the creation of the new ad campaign? 2. Marketing objectives 3. Target audience 4. Communication objectives
Detailed Examples
Market or consumer changes? Competition? Environmental factors? A change in strategy? Is the advertising designed to drive sales, share, profit or something else? Who is the target customer? How do they make decisions? How does communication affect behavior? Is it through brand awareness? Information gathering? Changing brand perceptions? Key customer benefit? How can we support the benefit? What should be the ads tone and manner?
5. Creative strategy
12 March 2013
37
Internet Advertising The ultimate marketing machine

Half the money I spend on advertising is wasted. The trouble is, I don't know which half. John Wanamaker
The worldwide advertising industry is likely to be worth $428 billion in revenues in 2006, according to ZenithOptimedia, a market-research firm. They send messages that reach the wrong audience or none at all$112 billion a year in America and $220 billion worldwide, or just over half of their total spending!
The Economist, 6 July 2006.
The Power of Social Networks as a means of communication.

The Economist, Jan 30- Feb 5, 2010.
38
Source: Evans (2009) JEP



Thank you!
Photo
Sumitro Banerjee Associate Professor and the Ferrero Chair in International Marketing Sumitro.Banerjee@esmt.org +49 (0) 30 21231-1520
ESMT European School of Management and Technology Schlossplatz 1 10178 Berlin
3/12/13
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Advertising Nike

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Advertising Nike

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Marketing Communications

Prof. Sumitro Banerjee

Session 13 & 14: Creative Brief for Advertising

Marketing Communications: Creative Brief for Advertising

Marketing Communications: Creative Brief for Advertising

Prof. Sumitro Banerjee

Marketing Communications: Creative Brief for Advertising

Prof. Sumitro Banerjee

Marketing Communications: Creative Brief for Advertising

What is the make of car in these photos?

Prof. Sumitro Banerjee

Marketing Communications: Creative Brief for Advertising

Prof. Sumitro Banerjee

Marketing Communications: Creative Brief for Advertising

Prof. Sumitro Banerjee

Marketing Communications: Creative Brief for Advertising

Singapore Girl, what a great way to fly

Prof. Sumitro Banerjee

Marketing Communications: Creative Brief for Advertising

The Singapore Girl: A great way to fly

Prof. Sumitro Banerjee

Marketing Communications: Creative Brief for Advertising

Arrive in Better Shape

Prof. Sumitro Banerjee

Marketing Communications: Creative Brief for Advertising

Prof. Sumitro Banerjee

Marketing Communications: Creative Brief for Advertising

Prof. Sumitro Banerjee

Marketing Communications: Creative Brief for Advertising

Clarity of Promise versus Confidence in delivery

Cathay Pacific had to change campaigns

Arrive on time Yes Yes Yes Functional

New campaign Heart of Asia (mid 1990s)

Swissairs Time is everything had to change

Yes, touches you Running since 80s

No because too many ref. points.

Time not in their control

Prof. Sumitro Banerjee

Marketing Communications: Creative Brief for Advertising

Marketing Communications: Creative Brief for Advertising

Where does positioning have an impact during decision-making?

Extensive problem solving

Limited / routinized / habitual decisionmaking

Activated need(s) / goal(s)

Slow and difficult

Generation of potential solutions

internal & external search larger number of options

internal search (memory) small number of options generated

Post purchase / utilization evaluation

Marketing Communications: Creative Brief for Advertising

GENERATING POTENTIAL SOLUTIONS

The Awareness Pyramid

Brand recall: unaided awareness Brand recognition: aided awareness

Marketing Communications: Creative Brief for Advertising

Solution Evaluation: Brands have links (emotional, to characteristics, and to behaviors)

Affect (Emotion, Feelings)

Marketing Communications: Creative Brief for Advertising

Think about Apples iPod

Prof. Sumitro Banerjee

Marketing Communications: Creative Brief for Advertising

Solution Evaluation: Brands have links (emotional, to characteristics, and to behaviors)

I love my iPod. Its great

Prof. Sumitro Banerjee

Marketing Communications: Creative Brief for Advertising