Branding Basic

8/8/2019 Branding Basic

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Marketing CommunicationMarketing Communications Framework

Marketing communications are all the

communications between the organization and

all other parties Part of the wider academic

research area of marketing, it encompasses all

the traditional forms of promotion including

advertising, sales promotion, personal selling,

publicity and public relations But it aims to be

broader than this. It includes all points of contact between the organization and other parties. It includes everything

from the way the telephone is answered, to the way the fleet of vehicles is maintained and used, to the quality of

envelopes used.

It is commonly accepted that Integrated Marketing Communications should be the goal of such a marketing

communications strategy. All points of contact with the organization should present the same corporate image.

(Multiple Touch Points)

Integrated Marketing Communication is more than the coordination of a companys outgoing message between

different media and the consistency of the message throughout. It is an aggressive marketing plan that captures and

uses an extensive amount of customer information in setting and tracking marketing strategy.

Steps in an Integrated Marketing system are:

1) Customer Database - An essential element to implementing Integrated Marketing that helps to segment and

analyze customer buying habits

2) (a) Strategies - Insight from analysis of customer data is used to shape marketing, sales, and communications

strategies

(b)Tactics - Once the basic strategy is determined the appropriate marketing tactics can be specified which best

targets the specific markets

3) Evaluate Results Customer responses and new information about buying habits are collected and analyzed to

determine the effectiveness of the strategy and tactics

Complete the loop; start again at #1
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Modern and Urban Advertising

Non Sales Revenue in Modern Retail

Non Sales Revenue form a good percentage of the revenue generated for organized retailers This concept is ever

prevalent in the US where in-store advertising and the fight for best visible shelf space has been around for a

whileThe non sales revenue earn upto 45% of the operating profits in the case of big retailers like Big Bazaar and

even smaller ones like ITCs Choupal Saagar

In Store:Shop in Shop

Gondola advertising

Glow Signs

Display Signage

Store Impulse bins / Product Display space

Outside Store:Show Window

Store front-facia

Kiosk - All these modes bring in money in the form of non-core activities. The leveraging power of the Retailer kicks

in here.

There are certain brands which are strong enough to be placed where they want to be placed and still pay minimal if

any to the Retailer.

A simple example is Cadburys:

Majority of the retailers place

Cadbury coolers at impulse

points and near the cashier

without the company having to

pay retailer for that space.

An example of a Shop-in-Shop

is shown here, where Music

World has set up a counter

inside a bigger Retail outlet.
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Brand Building

THE BRAND EXPERIENCE &SUSTENANCE MODEL

This model has been built to

better understand the various

parameters that are involved in

the road to the creation of brand

sustenance. Every parameter is

influenced by the consumers and

their experience acts as the

bridge between building a brand

from inception to its sustenance

through brand loyalty.

The variables influence each of the parameters and determine the success and future of the brand. The major drivers

of the model; Brand Experience and Brand Ambassador are determined by brand usage, indirect experience, brand

performance; and Viral Marketing, B2B-B2C-C2C, Relationships respectively. Relationships for instance are the

collaborations and partnerships that firms have with their clients and other complementary businesses.

BRAND BUILDING

Brand Awareness Points of Difference Points of Parity Competitive Advantage Associations Image Identity

Brand Experience

Usage Indirect Performance

Brand Loyalty

Repeat Business Recall Resonance

Brand Ambassadors

B2B B2C & C2C Relationships Viral Marketing

Brand Sustenance

Continuous Augmentation Equity Consistency
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Ads Effectiveness

Increasing Ad Effectiveness

Magazines (Print Media)Increase Readership of Your Message Run Two Ads in the Same Issue.Repetition is the foundation of communications.

Studies have shown that more readers see ads when they are repeated over time, but how do readers respond when

an advertiser runs two different ads with the same sales message in the same issue?

Logic would say that adding a second advertisement to an issue would bring additional readers to the message. Some

readers who read the first ad would pass on the second, and some who didnt read the first ad would stop and read

the second. If the unduplicated readership of both ads is higher than the readership of the first ad, then the second

ad brings incremental readers to the message. In the case above, taken from two 1-page, 4-color ads running in a

single issue, 46% of respondents read the first ad and 38% read the second. The unduplicated readership though,

shows that 63% of respondents read at least one of the ads. Running the second ad increased readership of the

message by more than one third over the first ad.

Running two ads in an issue can help maximize readership of a sales message.

Utilizing this strategy is ideal for:New product introductions (Dove, Zero Damage)

Immediate release information about product improvements or updates

To support a sales push or promotion (Airtel)

Indian Context: Billboards

The Dove Zero Damage campaign has been running throughout India,

especially in the metros. It follows a similar concept to the magazine example

given above.

Marine Drive in Mumbai is filled continuously at a space of about 100-200 m with repetitive, but different Dove ads.Each commun icates the same product, yet is hits the consumer again and again. Thus the cumulative unduplicatedviewing percentage among consumers would be very high.

The 5 Ms ofAdvertising
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Co Branding

Co-branding is a marketing arrangement that associates a single product or service with more than one brand name,

or otherwise associates a product with someone other than the principal producer. The typical co-branding

agreement involves two or more companies acting in cooperation to associate any of various logos, color schemes, or

brand identifiers to a specific product that is contractually designated for this purpose. The object for this is to

combine the strength of two brands.

The marketing of Gillette M3 Power shaving equipment with Duracell batteries both brands owned by P&G

Many online companies think they are pursuing co-branding when in fact they are pursuing strategic partnerships.

Partnerships, which have different goals than co-brands, are a way of leveraging a corporations own strengths and

softening its weaknesses via a joint effort with another firm.

Umbrella Branding

As with all effective brand strategy, umbrella brands require a single message, an expression of a commonsense

benefit grounded in human emotion that opens the way to own the conversation within a business category.

With an umbrella brand, the number of interactions the consumer has with the brand increase significantly, thereby

reinforcing the brand values, and it helps transfer the goodwill to new products and categories. But the umbrella

brand needs to be focused: It must stand for the same values across the category or range of products, and have the

same emotional link.

Generally, consumer durables and services brands have used umbrella branding, while FMCGs have not, but even they

have resorted to brand extensions rather than new launches.

Independent brands only make sense when the product clearly has a different proposition from the company brand;

like Lexus from Toyota and Swatch from Omega.

In the case of Asian Paints, there were so many sub-brands, there was a reduction of media weights for advertising

each entity. Then, the company shifted to a brand-centric portfolio, which involved a change of logo, product names,

packaging and advertising. But the response from the trade and consumers has been positive, overall brand synergy

and shop presence have increased, and the advertising is more effective, he added.

So unless the product is clearly different in the mind of the consumer, umbrella branding is the way to go. NIVEA is a

great international example of an Umbrella Brand.
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Push and Pull Marketing

What is pull marketing?

Pull marketing is where you develop advertising and promotional strategies that are meant to entice the prospect to

buy your product or service. Some classic examples are half off! or bring in this coupon to save 25% or buy one

get one free, etc.

With pull marketing, you are trying to create a sense of increased, time limited value so that the customer will come

into your store to buy.

An example of this is a perfume product. Women do not request to smell a fragrance they never smelled before; it is

simply pushed at them, through the right advertisement.

Applied to that portion of the supply chain where demand uncertainty is relatively small Production & distribution decisions are based on long term forecasts Based on past orders received from retailers warehouse (may lead to Bullwhip effect) Inability to meet changing demand patterns Large and variable production batches Unacceptable service levels Excessive inventories due to the need

for large safety stocks

What is push marketing?

Push marketing is where you develop

advertising and promotional strategies geared

toward your marketing and distribution

channels to entice them in promoting your

product. As consumers, you rarely see this

type of marketing when it is directed to the

distributors. It might include wholesale discounts, kickbacks, bonuses, and other types ofsupport. Its all designed to

have the retailer promote your product to the end users over a different product.

In recent years, Ive seen a nearly exponential increase in the past decade another type of push marketing is taking

over. Its the referral and word of mouth marketing. When companies encourage happy customers to spread the word

to their friends and families, thats a type of push marketing. Or, when companies make ads that are controversial,

cheeky, or downright shocking, they create a little buzz thats another type of push marketing.

An example of this is the car manufacturing companyToyota.Toyota only produces cars when they have been

ordered by the customers.

Applied to that portion of the supply chain where demand uncertainty is high Production and distribution are demand driven No inventory, response to specific orders Point of sale(POS) data comes in handy when shared with supply chain partners Decrease in lead time Difficult to implement
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Above the Line, Below the Line, Through the Line Advertising

Above the Line and Below the Line

These terms may have simple definitions as will be given below, but constantly one tends to misinterpret the different

forms of promotions and advertising as above-the-line or below-the-line.

In an attempt to try and solve the confusion, let us look at a few different angles.

Above the line-advertisingis allocated to television, radio, press, outdoor and cinema advertising

Below the line-advertisingpromotions, direct marketing, sponsorship and public relations

Origins of the term refer back to the balance sheetAbove the Line advertising costs are part of costs of sales and

are deducted before Gross Profit is determined, non-commission baring advertising is part of the operating expenses

and is deducted before Net Profit is determined.

Another way to view it is concept delivery versus tactile delivery.

So a concept media is one where you transmit ideas but nothing concrete ever passes to your audience radio, tv,

billboards and even most newspaper ads.

Tactile delivery is giving the audience something they can actually touch so coupons, direct mail, product samples.

ATL tends to be visual/auditory where as BTL usually excludes auditory but includes sight, smell, touch, and even

taste.

Through the line (TTL) refers to an advertising strategy involving both above and below the line communications inwhich one form of advertising points the target to another form of advertising thereby crossing the line. An example

would be a TV commercial that says come into the store to sample XYZ product. In t his example, the TV commercial

is a form of above the line advertising and once in the store, the target customer is presented with below the line

promotional material such as store banners, competition entry forms etc.
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Branding Basic