Day 1

So, what are brands?

 

Definition 1: A brand is an ensemble of images and ideas that represent a producer. Brands refer to concrete symbols, name, logo, slogan, design. The brands are identified through the direct product or service experience or though the influence of advertising, publicity and other media comments.

What are brands?

  

Definition 2: The sum of perceptions of a product or service A sum of MENTAL associations

The power of brands

  

Coca-Cola, no 1 brand in the world Brand Value: 70 billion USD Brand contribution: 51% McDonalds Brand Value: 31 billion USD Brand contribution: 71% Disney Brand Value: 29 billion USD Brand contribution: 68%

  

  

In short

BRAND is the IDEA

BRANDING is the TRANSMISSION of the IDEA

ADVERTISING just one BRANDING SIGNAL

1
No consumer = no sales No sales = no income No income = no business

People buy categories before they buy brands

Communication is a means to an end

Business Objectives

Marketing Objectives

Advertising Objectives>

Each stage adds value or its worthless

Execution Selling Idea

Advertising Proposition

Business idea Brand Positioning

Add Value - Kellogg's

GOES TO YOUR HEAD NOT YOUR HIPS YOU CAN SHOW OFF HOW GREAT YOU FEEL ABOUT YOUR SHAPE TASTY FOOD WHICH DOES NOT PUT ON WEIGHT BREAKFAST CEREAL THAT HELPS WOMEN CONTROL THEIR WEIGHT

Advertising is something that happens in someones head



Its only a means to an end It is only advertising when it appears, paid for It is not a brochure, a piece of celluloid, or a page in a publication


It is a reaction in someones head Which makes a connection between both parties Which results in change>

NOTE: even no change = movement

You cannot control what comes out

Communication paradise!
Convinced me the product is better

Did not touch me

Touched me

Did not convince me the product is better

5
All strategy is sacrifice

Brand Positioning

Positioning

 

Definition: Creating a credible and profitable position in consumers minds. (UNIQUE) It provides a guide for sub-strategies and marketing & communication activities

What is Positioning?

It defines the reason for the brands existence

 

It optimises appeal through strategic choice It defines in strategic language the competitive reason for selection

It provides a guide for sub-strategies and activity

Positioning
PROPOSITION

PRODUCT INTERROGATION

TARGET AUDIENCE UNDERSTANDING

True to the Product

Motivating to the Consumer

Distinctive from the Competition

COMPETITIVE ANALYSIS

The format
To (Brand)
(Competitive Framework)
______________ is the brand of _________________________________

(Target Group/Need)

______________________________________________________

(Benefit) That
_______________________________________________________

(Reason Why/Reason To Believe)

The reason why is

______________________________________________

(Brand Character)

The brand character is

__________________________________________

Gatorade example

[Target/need] Active athletes of all ages and performance levels who

see themselves as really competitive & rely heavily on liquid refreshment to stay at their competitive best Gatorade is [the brand of] liquid athletic equipment [perceptual competitive framework] competing mainly with other isotonics, fruit juices, water & soft drinks That best satisfies your thirst and replenishes you so you can keep achieving your personal best [brand benefit] Because 1. only brand endorsed/used by all major US professional sports (NBA, NFL, NHL, MLBB) [RTB], 2. Gatorades 6% carbo science of sweat formula [RW] [The Brand Character is] fiercely competitive, athletic, intense, unstoppable, popular; Michael Jordan

Some Notes


Note the need/perception; see themselves as really competitive Note the competitive framework; stated in a way which makes the brand more competitive
 

Goes beyond simple category or class definition Changes and broadens perception vs. competing brands [remember Seven-Up; the un-cola?]

Note the brand character;

 

Emotional resonance Context and clarity; Michael Jordan

To young, single urban women, Victorias Secret is the brand of alluring lingerie that will make them feel secretly sexy To married women over fifty, Victorias Secret is the brand of alluring lingerie that will re-ignite their marriages

BIG Difference?
Same category definition Different consumer Different need

To Masters of the Universe Iridium is the brand of global telephone network that allows you to call anywhere from anywhere To people who must get in touch no matter what, Iridium is the brand of telephone network that allows you to get in touch when its mission critical

BIG Difference?
Same category definition Different consumer Different need; 1st ends up bankrupt...

Positioning: One word

 

Positioning has to be easy to express and single minded In the end you have to have ONE WORD in consumers minds

Positioning: One word

    

Mercedez Benz BMW VW Audi Lexus

Prestige Driving Practical Technology Luxury

Differentiate or die

  

Differentiation is the essence of one brand Look for what is different in your product Communicate it from product pov (product attributes) or consumer pov (product benefits)

USP, ESP

USP - Unique Selling Proposition

but the product categories are crowded, differences diminish and the thinking and choice processes tend to be more emotional that rational


ESP - Emotional Selling Proposition

Exercise 3

Position the following competitive brands in the full positioning format + one word format Coca-Cola vs Pepsi Apple vs Microsoft Timisoreana vs Bergenbier BMW vs Volvo Kandia vs Poiana

    

Consumer

The eternal triangle

YOU

THE OBJECT OF YOUR DESIRES

THE EVIL COMPETITOR

Triangles in Business Speak

BRAND PROPOSITION PRODUCT INTERROGATION TARGET AUDIENCE UNDERSTANDING

True to the Product

Motivating to the Consumer

Distinctive from the Competition

COMPETITIVE ANALYSIS

So

Or, if you must be marketing people

Think 2 Cs

Consumer

Competitor

Consumer s are complex creatures...

Who buys?  Why buy?  What think now?  What helps change mind?  Why need?  User perception  Target; values/have/do


Who not?  Why not?  What think in the future?  What gets in the way?  Why not  Non user perception  Not target; values/have/do>


What do you want them to do?

What are they currently doing? What perceptions, emotions, beliefs or prejudices are helping/harming?

What do they need to do for you to meet your objectives? What would they need to think, feel or believe to change what theyre doing?

To achieve the desired consumer behaviour what attitudes do we need to change or reinforce?

Who?.....

.is she really?

          

 

Name, sex, age, marital status, kids Husband; name & a few details Education, occupation What does she do, current projects? Last book/movie, tv show/paper? Favorite song, holiday destination? Leisure time? Last time she had a romantic dinner with her husband? Retail therapy, where & why? Whats her indulgence/dream luxury? Whats a good night out/where would she go with the girls? Reasons she uses our product group, how does she choose, how does she shop? Why us or why not us? If not us, what might change her mind?

We take in 11 million bits of information per second Consciousness can only process 10 60 bits per second

Approximately 90% of all thought & emotion occurs in the unconscious

The value of precise targeting



Whats the use of 35+ men with large disposable incomes as the target for your Porsche When they include:
    

Bill Clinton Michael Jackson Donald Trump 50 Cent and a large number of successful drug barons... Or divorce lawyers

In this case because you quite obviously and almost literally.... feel their pain

Some ways to think about people

Who they might be and How they might be buying and What might they need or want

Their life
         

Needs Lifestyles Passions Fears, vulnerabilities Values Attitudes Beliefs Benefits looked for Ways of doing/using Ways of spending time/rituals... and many others

Physiological needs

      

Food Health Shelter Survival Strength Hygiene Comfort

      

Wealth Possessions Appearance Indulgence Pleasure Self restraint Pain>

Psychological needs
         

Success Self esteem Luck Authority Status Novelty Meaningfulness Curiosity Hope Realism

         

Justice Patience Love Passion Creativity Ambition Celebration Solitude Companionship Wisdom>

Societal values
         

Honesty Patriotism Equality Freedom Fear Self Reliance Trust Respect Tolerance Generosity

         

Modesty Diligence Experience Teamwork Leadership Competition Progress Environment Culture Family>

of type of Person or Consumer

         

Father Mother Parent Child Teenager Family Elder Student Housewife Manager Worker

         

Shareholder Homeowner Fresh market shopper Charity worker Car driver PC owner Sportsman Wine drinker Artist Business traveller

Fit : one person, many self images

      

woman wife & lover mother photographer skier music buff and hiker

  

daring and adventurous with Salomon sexy with ID Sarrieri hip with Converse frugal and unpretentious shopping at Carrefour competent using Apple / Microsoft Office

Look at people first then buyers

Examine How People Buy

Some purchase parameters to get you thinking
        

Frequent Regular Rational High Involvement Impulse Brand loyal Voluntary Constrained Individual

Infrequent Irregular Emotional Low involvement Pre-planned Fickle Involuntary Free choice Consultative

How can we see consumers



Empathy - feel others experiences, see through other peoples eyes Empathy through: Learning (books, films) Conversation Experience (go with them shopping, take the kids to school, in-home visits etc)

An incomplete summary of How Consumers Think

1. Descartes' Error
1. Consumers dont think in a well-reasoned rational, linear way 2. Discarding Freudian pan sexuality, his subconscious is being legitimised 3. Emotion works in partnership with reason 4. We are unlikely to store impressions with no emotional significance 5. Emotions give alternatives value Joseph Turner On the Origins of Human Emotions 6. The lowly orders of emotions are in the loop of high reason Antonio Damasio

2. Consumers cant readily explain their thinking or behaviour

1. 90% of thinking happens in the unconscious mind AND 2. Emotions are difficult to articulate

3. Consumers do not operate in limbo

1. Its not what happens separately in minds, brains, bodies & surrounding culture that counts BUT 2. The interaction between them

4. Consumers minds do not accurately represent their experiences

1. Memories are creative AND 2. Change in time & according to circumstance

5. Consumers do not think in words

1. Experts calculate as much as 80% of communication is non-verbal 2. Spoken language has been with us for hour of a 24 hour day 3. Paralanguage is hugely important; tone and manner of speech 4. Thought and retrieval is stimulated by all the senses

What do we do with this?

Where are we?

Are we getting there?

Discover

Question

Why are we there?

Measure

Think

Execute

Hypothesise

How could we get there?

Develop

Explore

Where could we be?

Market definitions

Market background THE MARKET CONTEXT

Social & other trends

Outside

MARKET CONSIDERATIONS Size/direction Seasonality/ regionality Segmentation THE CONSUMER CONTEXT Consumer profiles/ penetrations Consumer attitudes/ behaviour Category buying/ usage patterns/motivations Brand selection/ motivations Reasons for non use of brand

BRAND CONSIDERATIONS Competitive line up Market share/ stature Marketing activity

Inside

Reasons for non use of category