Advertising and Branding

TOPIC 1 Foundations of Brand Management

What is the brand?
- the image of a company
- way of establishing differences
- it provides information and a lot of meaning
Is something designed to identify stuff, is about differentiation, about creating
image
A brand is a name, term, sign, symbol, or design which is intended to identify
the goods or services of one seller or group of sellers and to differentiate them
from those of competitors.

From products to brands

-

Products and services have a core layer: all the things you need in
order to make the product
Expected layer: things the product could exists without, but customer
expect it (the phone now has all this extra stuffs)
Augmented layer: customer dont expect them but there are a powerful
way of differentiation (car: extended warranty)

When the brand is really strong it represent an augmentation, a powerful

source of differentiation ex: if you are attracted by iPhone you are going to
wait for the next one iPhone 6
Sources of differentiation are typically functional or emotional. Some brands
may be differentiated among rational and tangible elements (Gillette); but
other brands among emotional elements (Coca-Cola, Chanel)
Never take maturity of a market as granted, there is always an opportunity to
innovate.

Branding commodities

Banana product is very little you can do with the product, but yet even in
this industry there are company that differentiate itself, such as Chiquita. Even
in category that are commodities there are some leaders.

How much would you pay for a toilet?

How can you differentiate toilet paper? They repositioned their product as part
of a bathroom (colourful) they managed to create a brand that is designed
around a very different positioning. In pretty much any industry, if you have a
good idea and create a brand that is different from customer you can succeed.
Never take maturity and commodization of a market as granted, there is
always an opportunity to innovate.

De Beers: A diamond is forever

They came up with an idea that is the engagement, that a poor guy buys a
diamond for this girl in order to make her say yes.
A diamond is forever people will buy only one, and that is not good with
sales
create occasioans is what they did anniversary

Why do brands matter?

The customers perspective: they benefit customers, we need them
The firms perspective: they are useful for the company
The customer perspective
Is a risk reduction mechanism, they simplify purchases for customers, we like
brands because they make things easier for customers
Selective attention/retention we filter out all the messages that we dont like
or dont want to consider. We forget it really quickly, because we dont care
less.
The consumer decision making process
1. Need recognition
2. Prepurchase search
3. Evaluation of alternatives
4. Purchase
5. Postpurchase evaluation
We have a need, we look around, we evaluate alternatives, we purchase and
then we make a post purchase evaluation
we need to increase the experience the customer have
evoke set: list of acceptable brand
minimize the risk
Experience and brands
Because the brand carries a promise, then what it does is to create a
relationship to make customer increasing the experience.
In Lugano we say 3000 messages every day, and we dont pay much attention
at them; we also develop the mechanism of selective attention and selective
retention. If you will buy a laptop, it happens that then you will see laptop
advertising everywhere.
Ex: Cobra beer
Purchase risks
Brands reduce risks, they tae away some risk associated with the purchase:
- Functional: will the product work? It is performing well? making an
assumption on the brand
- Physical: is dangerous? Are you more likely to put something on your face
for a known brand or not?
- Financial: how much will cost to me if the products fail or doesnt work?
- Social: the choices of brands is driven by a desire to minimize social
risks; choosing brands that do not exposing to risk - conform within a
specific social group, fitting within a social network

Time: if something goes wrong, then you need the time to rectify it back

Video Apple 1999

The brand was about reducing functional risk, very important business situation
that is socially exposed Apple was very much about minimizing functional,
social an time
Video 10-15 years later Apple
They are stressing very much on social risk
A brand that has consistency over time and within the message is a key
element.
Properties of goods and services
Search attributes: assess the quality very easily; ex: pen
Experience attributes:you cant assess the quality of the product; you first
have to buy it and try it; others brands are much more en the experience
attributes; ex: a restaurant meal, after the meal I can assess if it was good or
not
Credence attributes: even after you have experiences the product or services
you can not still assess the quality, for example: the doctor you have to
believe him. In this case, the brand is the only element of differentiation.
Brands and product quality
Brands become increasingly importance when we move away in these
attributes. If we have experience goods or credence goods sometimes the
brands is the only assets that is going to differentiate the product. Sometime
the brand is the only promise to differentiate.
Brands are really important for services.
The firms perspective
Is important for firms when they are able to use the brand to differentiate the
company. The brand gives unique differentiation, unique features and it is a
financial guarantee.
Brand value and market capitalisation
Value brands financially. Every year are established the top 100 brands.
2005: Coca Cola valued at 67.5 $billion is the 64 market capitalization
Microsoft valued at 59.9$b
McDonalds valued at 26$b has a 71 market capitalization its all
about the brand!
What can be branded?
Retailers and distributers: retailer and distributors start to brand their own
products
Online products and services
People and organisations
Ideas and causes also can be branded: no-smoking campaigns

The concept of brand equity

-

The brand equity concept stresses the importance of the brand in

marketing strategies.
- Brand equity is defined in terms of the marketing effects uniquely
attributable to the brand.
o Brand equity relates to the fact that different outcomes result in the
marketing of a product or service because of its brand name, as
compared to if the same product or service did not have that name.
Is trying to create a difference in our mind. What is really at the core of a brand
strategy is starting with the brand and then using them to add benefits for
customers.
Brand equity: Is the differential effect that we create through the brand
For example: the price premium is given by the brand equity. A good example
is the Monroes dress (right price was 200-300$, but it was sold at a higher
price, something like 1.3 mil) this is thanks to brand equity; is the dress
didnt have been associated with Marilyn it wouldnt not cost so much, thats
the brand equity.

Strategic brand management

Is about building, measuring brand. Brand equity could also be negative.

- Strategic brand management involves the design and implementation of
marketing programs and activities to build, measure, and manage brand
equity.
- The strategic brand management process involves four key steps:
1) Identifying and establishing brand positioning and values
2) Planning and implementing brand marketing programs
3) Measuring and interpreting brand performance
4) Growing and sustaining brand equity

Customer-based brand equity

Two questions often arise:
1. What makes a brand strong?
2. How do you build a strong brand?
- To answer these questions, we are going to adopt the Customer-Based Brand
Equity model
- Customer-based brand equity is the differential effect that brand knowledge
has on consumerresponse to the marketing of that brand.

The value of a brand really resides in the mind of a customer.

Its really about creating the differentiate effect, about creating knowledge.
Example of customer-based brand equity: blind and named product
test
Brand A has brand equity.
Blind beer taste tests
Blind tests: lot of couple of beer, and the second time they drink beer with
labels.
When they did know what they are drinking the differences are always very
clearly positioned
When they didnt know what they are drinking it shows that these products are
much more similar and there is no differentiation in this situation you cant
differentiate you product
Video Carlton
It works on:
- increases awareness of the brand (share among social networks maybe)
- it creates an image for the brand young, dynamic

Case Study: A Rose by Any Other Name

Whats the best marketing strategy for Rose Partyware?
- relationship with customer allows to brings the strength
- branding decision is not a technical decision, branding is a strategic
decision

Source of brand equity

A brand will not survive when its all about knowledge, but there are some
exceptions such as ice-cream.
Building a strong relationship is fundament, a branding decision is not a
technical one, it is a strategic decision instead.
You need two things to make a brand really strong:
- high level of awareness and familiarity (they have to know a lot about it)
- it is also important to have a strong and unique brand associations the
brand must have a meaning strong enough for customers to care.
Typically strong brand need both things
Two key elements for brand awareness:
- brand recognition (logo) being recognized as a brand
- brand recall (given the product category, does this brand come to mind?)
If we have both, then there will be some advantages, such as learning,
evoke set and choice.
If we have recognition and recall we can have all the follow advanatges:
- learning advanatage
- choice adavantage

evoked set advantage

Outpost.com - Video
Mouse being launched against the board not positive association
they trying to achieve awareness
its purely an ad driven by desire to have recognition

Brand image
- Strong, favourable and unique associations with a brand
- There are many means through which these associations may be made
- There are also many sources of associations
We have to be well known, but we have to be well known for positive
association and not negative.
there are many means through which these association may be made:
advertisement, social media, WOM

Topic 2 The brand equity pyramid model

The brand equity pyramid
There are some steps to do sequentially in order to have a strong brand:
The first step is to build the identity of the company, once customers knows
who you are then the second step is to define the meaning (feelings emotions)
that the company wants to have in customer minds, the third step is the
response and the fourth is to build a relationship.

1. Identity: salience dimensions

- Depth of brand awareness: how much I recognize the brand? What brand
comes to mind when you think about this special category
- Breath of brand awareness: is not just how much we know the brand, but
when the brand comes to our mind (in the appropriate occasions and on
the right time).
we need both of these
2. Meaning
Start to communicate who you are and the meaning of the brand
The meaning could be:
- Rational
- Emotional the fact that we feel in a certain way when we drink cocacola is not accidental

Marlboro is a very strong brand, but if you going back in the 40 and 50 you
will notice that was a brand that targeted woman after that they reposition
the brand for man
Bentley had the last word
3. Response: feelings dimensions
The brands need to know from the very beginning what kind of feeling to
transmit to customer, and this could be:
- warmth
- fun
- excitement
- security
- social approval
- self-respect
Feelings and Advertisement
- Marketers are interested in changing consumers perceptions of the
usage experience with the product
- Thus, they often use transformational advertising:
o Advertising that associates the experience of using the brand with a
unique set of psychological characteristics which would not typically
be associated with the brand experience to the same degree without
exposure to the advertising
Can leverage the following elements:
- User image
- Brand image
- Use occasion
- Generic-transformational
Informational advertising
Transformational advertising
User image: the kind of guy that buys a Bentley is that one on the couch,
Generic-transformational: transformational advertising to promote and entire
category to promote a specific brand
Twist adv user image advertising; its about communicate the kind of person
Audi Adv brand image: this is a very valuable model
Milk Adv transformational messages
4. Relationship
Build resonance, when we build relationship with customer
Attitudinal attachment or loyalty dont switch to another brand because you
love the one
Sense of community how they connect around the brand the customer
Depending on the business you are in, then you would go for the left/right of
the pyramid. For example, in a b2b market you would opt for the left side of the
pyramid. In any case the output is always the same: building relationships.

The idea has to be visible and consistent in terms of communication,

behaviour, environment and products and services. The idea defines the entire
experience of customers.

Beyond brands: lovemarks

Lovemark there are some brands that are some brands, they connect
rationally with customer, but other brand connect with customer in an irrational
way that are love marks.
-

A different way of looking at strong brands (Saatchi & Saatchi)

Lovemarks are developed through:
o Respect: the consumer decides whether something is a Lovemark, and
the consumer needs to respect that something first
o Mystery: great stories, past, present and future; tapping into dreams,
myths, icons, and inspiration
o Sensuality: sound, sight, smell, touch, and taste
o Intimacy: commitment, empathy, and passion

Mere products command neither love nor respect.

Fads attract love, but without respect this love is just a passing infatuation.
Brands attract enduring respect, but often without love.
Lovemarks command both respect and love.

Anatomy of a strong brand

The best brands appeal both to heart and head
Need reason, think
Desire emotion, think
Customer want to be affected by the reason but at the same time it wants to
be emotionally affected we compromise on this two sides

Lovemark

High love brand engage the emotions

How do we appeal to both sides?

The great idea

Every great brand starts with a great idea.
It doesnt have to be complex, and it doesnt have to be 100% unique You
just have to own it, and it has to be integrated throughout everything you do!
It something that begins with an idea that doesnt supposed to by sophisticate!
Starbucks: third place; is not about coffee but about third place, a place
where to go and hang out
Orange I always be about optimism; I have look at all the names in the
telecommunication and they were all boring, and then they came up with the
idea that future is orange
Ritz-Carlton ladies and gentlemen serving ladies and gentleman
3M idea of innovation

What matters is the fact that the idea must consistently be implemented
around the business

The idea defines the experience

The idea it has to be visible in the communication strategy (in how we
advertise and communicate with customers), it has to be linked to the
environment (place in which business takes place), and also in products and
services.

Ex: Apple: think different, the communication strategy was all about thinking
differently, products and services are different from the others, they actually
are boring products, but they turn them around: innovative, design and
emotional side of purchase.
Ex: Illy: coffee is not a drink, but the idea of a lifestyle (meetings are done in
bars with a coffee) main office: big bar in the office meetings dont take
place in meeting room but in the bar, over coffee because the idea is that
coffee is not just something that you drink! Its visible in the environment,
around the business; is part of educating people about product
Exercise: Ray ban Never Hide, stand out from the crowd, it is all related to
the coolness and exclusiveness, this is also shown by the fact that the product
is often used in movies and they also use famous people to advertise the
product. Also the communication strategy is related to the idea of coolness.
Also the products are very innovative, they have different designs and models,
which are pretty unusual.
Bp reinvented British petroleum intro beyond petroleum logo has a more
friendly image! Offices look really environmentally neutral!
take the idea and connect with it once you take the idea is important to
integrate it in everything the company does.
Cigarettes its toasted; so is not uniqueness of idea, but to integrate the idea
in everything you do
Nike Just do it; performance, innovation and not just for professionals but for
everyone
New Coke Case Study
o Using the brand equity pyramid, explain how Coca Cola built its brand
equity.
o What exactly are the meanings associated with Coke? How were they
developed?
o What was Pepsis strategy in competing against Cokes meanings?

o What alternative options did Coke have to deal with Pepsis challenge?
What would you have done? What do you think Coca-Cola did wrong?

TOPIC 3 Brand positioning

Brand positioning
-

The specific image of a companys offering in the minds of consumers,

relative to competing offerings
- Marketers attempt to position their products in a particular way in the
minds of target markets
- Its about finding the appropriate mental location
Customer have a sort of mental map - What is the perception, the image that
we want to associate with our brand?

Positioning examples
Wal-Mart low purchases, one-stop shop
Starbucks quality, menu variety
Volvo safety is something not casual but it has been built carefully
Positioning goes above the product itself, it can really determine differences
in the mind of customers
Patek Philipps something that you buy not because you want to know the
time, but its something of family heritage; is staying with the family for a long
time, its a prestigious item!
Rolex the positioning is quite different; its for successful people the Rolex
watch (Federer) youre going reward yourself when you achieve something;
its something you buy to reward yourself because you deserve it !

Positioning and perceptual mapping

-

A visual tool to portray perceptual differences among brands expressed

by consumers
Highlights distinguishing position from the competition
Driven by dimensions valued by customers
Example: the US car market (selected factors and brands)

Used to communicate positioning

Its useful to identify strategic groups (groups of brands closest)
Useful to identify market gaps
Useful for repositioning

Establishing brand positioning

1. Define the competitive frame of reference clear about who we are

against and who we are going to target
2. Define the basis of positioning:
o POF (point-of-difference): things that you want to stand out
(safety) dimensions that you truly want to differentiate from
competitors
o POP (point-of-parity): we need to establish certain dimension on
which we match the competitors
category POP: convince that they belong to this category

 competitive POP: POP you develop, not because you must, but to
destroy the competitive POF!

Challenges in establishing POPs and PODs

-

Many of the attributes or benefits that make up the POPs and PODs are
negatively correlated
But consumers often want to maximise both attributes and benefits
The best approach is to develop a product that performs well on both
dimensions

The problem is that when we communicate a POD, automatically we are saying

some negative correlation Ex: our food is tasty, but in the meantime we are
saying that our food is not very healthy. Another example is that if we say that
our product is cheap, we are also saying that our product has not a high quality.
The best solution is to develop a product that performs well on both
dimensions.
Example Swatch: manage to take two negative correlation: low price and high
price / swiss price and low price
Other solutions:
1.
Different adv. Campaigns separate the attributes
2.
Use the brand equity of another source borrowing the association that
people make with an entity
3.
Show customers that they are wrong about the relationship
Examples:
Airlines: is not enough to say that they are safety, because safety is not a POF,
is something that airlines must have!
Saabtry to overcome the POD of Volvo, but it didnt work because it didnt first
establish his own POD
Volvo is highly positioned with this idea of safety, and it has no
There is always some kind a negative correlation with one aspect.

Overcoming the problem of negatively correlated POPs and PODs

through advertising
Three approaches are available, listed in increasing order of effectiveness (but
also difficulty!):
- Separate the attributes ex: use two different marketing campaigns
- Leverage equity of another entity ex: link to any entity that possesses
the right kind of equity borrow the association
- Redefine the relationship ex: convince customer that is no negative
correlation; show customers that they are wrong about the relationships
Apple adv - The power to be your best
the machine is what allows you to do stuff, and when you do those things to
the machine you have real power they trying to redefine power! They trying

to reinvent the negative correlation between user friendly (which apple was
positioned) and power
If USI
-

were:
a car Audi A1
something to drink: Aperol
an animal: a bee

Usually the more similar are the responses the more clearly is positioned a
brand.

The Brand Spirit wheel

If you were a person, who will you be? They using metaphors to think about
positioning.
They are using metaphors to think about positioning answering some questions
about what the brand would be if it was a person, aroma, etc.

Defining and establishing core brand associations and brand

mantras
-

Often, brands span multiple product categories and have multiple

positionings
Marketers will thus want to define a set of core brand associations
They may also synthesise the core brand associations to a core brand
promise, or mantra

Establishing core association

Associations are all those words, concept that we want to associate with a
brand, and those has to be very clear
Bran mantras
- An articulation of the heart and soul of the brand
- A short phrase that captures the irrefutable essence or spirit of the brand
positioning
- Two main audiences:
o Internal marketing partners
o External marketing partners
Three words typically that defines the essence of a brand
Disney: fun, family, entertainment
McDondalds: food, folks and fun
You start by thinking about the ultimate output, the functional side of the brand
(food), then the descriptive side (folks) and finally the emotional side(fun).
We start with the last word Nike is about performance and then we find the
other two words authentic and athletic

Swatch case Study

1. The better the swatch the more jewels it contained, it was considered as
a financial investments, quality, status, prestige

Swiss high end watches Marketing Mix

- Product:
- Price: high
- Channels. Full pages
- Place: jew
is a high involvement purchase decision
Timex
Product: durable, rugged
Price: cheap

product
SWISS
HIGH END
WATCHES
TIMEX

Price
high

Channels/ad
v
Full pages

Place

What it is?

jewelry

Is a Jewel

Durable,
rugged

cheap

Torture test
Traditional
low cost ads
in
magazines

SWATCH

Fashionab
le design,
colours,

Low
Fixed
Simple
(50-60)

Non
convention
al

Unconventio
nal

Japanese

Precise
Affordable
jewel

low

Traditional

Affordable
jewelry maker

Is a time
telling tool
low
involveme
nt

something
that you
buy
infrequentl
y
Fashion
accessor
y

Frequenc
y
redundan
t
purchase
s

Younger
customer
s
Affordable
jewel

They completely change the rules of the game. They emotionalized something
that was functional
They achieved the use of the marketing mix in order to create a new category:
swatch!
It was a combination between the jewellery market and the tool market,
squeezing the swatch product in between and therefore filling a gap that was
present in this kind of business.
2. Low-cost but Swiss made, new design to watches and not anymore seen
as jewels, and the people dont anymore have one only swatch but
multiple, which they can switch as they prefer They managed to
combine these two aspects: a relatively cheap watch, but trying to
maintain the Swiss quality and tradition, adding the emotional side: they
changed the focus from quality materials to design. (rolex vs swatch)
3. In swiss there was no watches below $100 so they firstly positioned
their product in a perfect way
Price: below 100$
Product: they hired new designers from Milan to create the design of the
swatches, and they carefully choose among these designs
They are selling an emotional product, a product that you can bring all
the day with you, it was not a commodity
Place: non-traditional points of purchase Veggie Swatch line was sold
in fruit and vegetable markets
Promotion: sponsorship to celebrity endorsement, special events and
product placements, Swatch Collector Club Swatch Street Journal
4. Cruciani bracelets: Italian company that has created low priced bracelets
with the made in Italy label high quality. They have changed from
rational to emotional product. Zara is another good example, or Ikea and
Apple.

Speech Brand experience

Brand experience is a summary of all touch-points between a brand and its
respective mark
All these touch points have to be consistent with the promise of the brand.
The experience is something that starts before you buy something.
Instead of thinking, we try to see them dynamic particulars moving through a
certain experience at the company.
MOO Company
Largest print shop in the world even since the beginning they have
something more.
Good brand experience starts when something goes wrong.
Box of moo cards very innovative
Two touch points: email and packages (box)
we now have bigger amounts of touch point that company have in the 90s.
We can now actually track every information about the brand

Right now is much harder to keep you customer than before!

advertising becomes a constant cost of acquiring new customers
Brand touch point matrix
All the touch points have to be consistent about a certain brand
Just-eat
Start 9 years ago and today 24% of the food is managed by this company.
ABB created a new experience, but not for customers, but for people that want
to rent their flats.
PICTURES: the first structure of their proprieties is to make a simple flat a
beautiful flat to rent
Personality
Growth hacking!
Booking Ad they promise you to find exactly what you want

TOPIC 4
Criteria for choosing brand elements
All the different elements that we want to communicate about our brand.
Memorability
Meaningfulness does it make sense?
Likeability awareness; associations strong, favourable, unique
Transferabilityit has to be transferable; ex:amazon can be taken in all areas,
whereas book.com no
Adaptability can you increase the relevance, the credibility?
Protectability can I protect the brand in two ways: 1)from the competition
2)intellectual legally trademark the brand

Options and tactics for brand elements

To satisfy all the criteria just discussed, it is preferable to use multiple brand
elements:
1. Brand names
2. URLs
3. Logos and symbol they are more important than just the name; the
swoosh of Nike is such a powerful visual cues
4. Characters Michelin mans increase likeability and memorability
5. Slogans good for likeability, the increase the relevance of the brand
6. Jingles music, sounds
7. Packaging apple does good branding also in its packaging
A good brand name probably helps to sell; its also possible that with a bad
brand name you can also sell good.

Some Unfortunate URLs

These brand are likely to gain attention but there may lead to negative
associations with it.

Logos
More people like Motorola when they are exposed to the logo than only to the
name the logo increase the brand equity of the name.
Texas instruments: the logo is damaging the brand because less people like the
brand when they see the logo of Texas instruments.

Setting communication objectives and tasks

Once we have used all the elements to increase brand equity how do we use
communications?
All communications try to do three things: inform, persuade or remind or a
combination of these elements in order to push customers into the adoption
process that starts from the recognition of a need to the confirmation stage
(did I make the right choice or not?). Why is it important for us? Because I need
to be aware in which stage my customers are, and then depending on where

they are I will have to adapt in terms of communication (informing, persuading

or remanding each of those elements are used in different stages).

Any advertising we see will remind to:

- Inform
- Persuade
- Remind
Any communication objective tries to push the customer in the adoption
process.
Cognitive stage: customer are processing information
Affective stage: start to develop preference, it becomes more an
emotional stage, start to develop an interest
Behavioural stage: customers decide to buy
At what stage of consumer adoption are my customer? Company need to know
in what stage they are; and depending on where they are there I will adopt a
special communication objective.

AIDA model
An important model is the AIDA model, The idea is that depending on the
consumer adoption stage where customer are and depending on
communication objectives, you will adopt a special communication task.
If customer are in the cognitive stage, then the advertising should be an
advertising that gains their attention.
If customer are in the affective stage, then the advertising should be more
persuasive and should gain the interest and the desire of customers.
-

Virgin Atlantic
Building awareness about the fact that soon it will be a virgin Atlantic
airline in Dubay.

ForkFull
Its a rude gest in a funny contest they trying to achieve interest
Quick-Grip
Affective they are taking the old product and comparing it with the
new one they trying to persuade
Car
Combination of affective and cognitive

Designing the message

How do we select a message? There are two ways:

Elaboration likelihood model
What are the risks? How do frequently people buy these products?
Involvement of customers depending on the process itself. Involvement
depends on two things:
1. Purchase risk financial, social, time, physical and functional The higher
the risk, the higher the level of involvement
2. Frequency of purchase if I buy something frequently level of involvement
goes down, if I buy something infrequently than involvement goes up
If customer are highly involved in the process, then use a central route to
persuasion
If customer are lowly involved in the process, then use a peripheral route to
persuasion
-

Central route: is centred around the product more rational

Peripheral: little about the product ( breakfast, there is little about the
product, you rather see kids and families have breakfast together)
more emotional

Transformational / informational

Negative purchase motivation: if I buy something to remove a

problem; ex: headache pills central route
Positive purchase motivation: buy something to obtain a pleasure
(Ex. perfume Chanel, car) peripheral route

Transformational advertising is very similar to the peripheral

advertising
Informational advertising is very similar to the central advertising

CASE - Mountain Dew

What decisions criteria you think are important in evaluating a brands
advertising?
Develop a tool to assess advertisements

Super Bowl Type Advertisng

-

The Super Bowl is the most widely viewed annual television event
Audience size is typically well in excess of 100-120 millionAmericans
Airtime can cost more than $2 million per 30-second spot
It seems to work for established ads, and for new one it does not work
good.

o
o
o
o
o
o
o

Advantages:
Extensive reach
Low cost per customer (estimated around $0.01 per person)
Access to a difficult key demographic (males under 35)
Puts the brand among the top players)
Has worked well in the past (Apples 1984 ad)
May improve quality perceptions of the advertiser
Some evidence of a link to stock returns

o
o
o
o
o

Disadvantages:
Inefficient: reaches people outside the target market
Repeated and more targeted advertising may be more efficient and
effective
Organisational pressure to win the best ad award (and hence may cause
goal divergence)

Non-traditional marketing approaches

-

Advertising has traditionally been the centre of marketing campaigns

But current trends suggest that the traditional advertising model is in
decline
o Loss of control over traditional advertising media
o Democratisation of content and file sharing
o Personalisation of schedules
o Fragmentation of audiences
o Rising cost of advertising
- As a consequence, advertisers might need to consider more and more
non-traditional marketing strategies and tools

BMW
What is the strategic significance of the Z3 launch for BMW?
They are adopting both push/pull strategies dealers
How can we tell that is a success?

Translating awareness into action

The problem with non-traditional marketing is that is difficult to translate the

awareness into action. Non-traditional approaches are good for getting people
excited, but then you need to rely on traditional advertising in order to make
people purchase (action) combination of the two. Non-traditional marketing
is very much replacing traditional advertising, but it is not replacing completely
the traditional one, also because you cant measure the outcome/results.

Advertising is certainly changing

-

Brands are increasingly relying on new tools to advertise to customers

1 in 5 advertising Euros in Europe is now spent online.
Despite the continued weak economic conditions across Europe and
globally, Europes online advertising is grew 14.5% year-on-year to a
market value of E20.9bn in 2012. By comparison the overall European

advertising market - excluding online - grew at just 0.8% in the same

time period.

What are brands doing online?

Organisations have now a large range of opportunities available to advertise
online. These include:
1.
Display (banners)
2.
Games
3.
Mobile
4.
Social
5.
Video
1. Display advertising
- Online display advertising is the meat and veg of online marketing.
- Online displays are useful primarily for three objectives:
o To deliver brand messages
o To immerse consumers with interactive experiences
o To generate a direct response from consumers
2. Games advertising
- One of the most dynamic and fast-growing disciplines within the online
landscape.
- Placing advertising within a gaming environment and using bespoke
games to promote a product or service.
- IAB research shows 80% of the UK population play games regularly.
- For advertisers, gaming offers a large, growing and highly engaged
audience.
Take a look at this example:
http://www.youtube.com/watch?v=4ba1BqJ4S2M
3. Mobile marketing
- Fast becoming the central focus of many media plans.
- As awareness and understanding grows, advertisers are increasingly
waking up to the potential of mobile.
- In 2012, mobile advertising was worth in excess of 200 million, up 157%
from 2011.
- The range of advertisers using mobile to benefit their brands is also
becoming broader as more mainstream brands from sectors such as
finance and consumer goods are investing on mobile.
Smartphones reach a tipping point
Today you can not have an internet campaign, but you have to have a mobile
campaign too.
Today creating a Fb pages doesnt work anymore, but is important to engage
customer in more sophisticated and creative way, in order to interact, to spend
time with the brand.

4. Social media marketing

- Social networks now account for a quarter of time spent online in the UK.
- Social media encompasses a vast range of activities: social networking,
blogging, word of mouth, content dissemination, user generated content,
crowd sourcing, interactive advertising and more.
- Social media is broadly split into three areas:
1. Paid, such as advertising on a social network
2. Earned, such as a genuine blogger review of a new product or serivce
3. Owned, a brands official page in a social network
Focus on the exchange
Engaging customers in more sophisticated and creative ways may be the best
way to capitalise on networking sites.
Any means that allow information and brand elements to be shared by users
represent a new powerful opportunity for marketers.
let your customer participate!
5. Video marketing
- Online video advertising is one of the fastest growing advertising formats
in the world and is becoming a key way to build brands.
- The last adspend report shows an explosive growth of 91% year on year
meaning that the sector is now worth nearly 60 million.
- A recent survey of over 160 media buyers found almost three quarters
expected their online video advertising spend to increase by 25 per cent
before Q4 2012 (WebTVEnterprise: The UK Online Video Advertising
Market - 2012).

TOPIC 5 Corporate brand advertising

Chevron Case Study
Should Chevron invest more money to rectify their brand image problem within
groups of people whose attitude seems not to change?

Corporate image advertising

There are two broad types of advertising:
- Product advertising:
Includes pioneering, competitive, comparative and reminder advertising
- Institutional advertising:
Corporate image advertising is a type of institutional advertising, where
communication concerns the entire business, as opposed to a specific
product, and aims to

Value od C.I.A
-

Evidence has shown that:

o
o

Public opinion can be very effective in determining the success of a

company or product
A good public image makes the business more profitable

Companies invest heavily in C.I.A.:

o
o
o

Sprint and its Plant a Tree initiative

McDonalds and its charity programs
P&G and anti-drugs campaigns

TOPIC 6 Leveraging secondary brand associations

Leveraging secondary brand associations
-

Brands may be linked to other entities that have their own knowledge
structures in consumers minds.
Because of these linkages, consumers may assume that the same
associations of the secondary entity apply to the brand
Thus, the brand can borrow some brand knowledge and equity

Secondary sources of brand knowledge

A lot of sources of brandy equity where you can tap into it ex people
=Steve jobs or country places =Swiss design or made in china or channels
= you use brand equity of another company where you sell your products
(example manor or Aldi) or Causes = work with a non-profit organization,
such as breast cancer foundation
Celebrity endorsement
Employees Steve Jobs and connection with Apple
Other brands brands in alliance
Ingredients brand If you have a brand,
Extensions Apple iPod was useful to build the equity of the iPhone
Country iPhone designed in California, Made in Italy about fashion, Swiss for
swatches
Channels find the products in some shops (Aldi or elsewhere?) leveraging
the exclusivity of a channel
Events
Endorsements sporting events, social events

Creating new brand associations

Particularly important for low involvement products or when products are low in
search criteria.
It works when three factors are in place:
- Awarenessand knowledge of the entity is important that people knows
what the causes are about, events, sporting events and so on
- Meaningfulness of the knowledge of the entityotherwise two things
happens: there is no association, and secondly the original source lose
meaning
- Transferability of the knowledge of the entity the sources should be
transferable to the brand

What may be transferred?

For example: if you collaborate with the Locarno Festival, you are transferring
experience, feelings (excitement for example). Another example if you are
engaged in a cause, you are transferring awareness for both the company and
the non-profit organization (feelings, thoughts, attributes such as caring)
Make sure to know what you are transferring to another brand
Avon Breast Cancer
Making feel good people, is about caring: image, feeling, positive attitude
Environmental marketing: look at the environment where you put the ad
Avon Breast Cancer
Nike and the world cup is doing all this ad that people start thinking that
they are involved in the world cup, but they are not. It has more success that
Adidas which gave millions to the world cup.

Topic 7 Measuring and interpreting brand

performance
Y&Rs Brand asset valuator
Measures brands on four fundamental measures of equity value and using a set
of perceptual dimensions

The BAV PowerGrid

Unfocused they havent have yet the ability to develop differentiation

A lot of brands push to eroding potential (ex: Nokia, Blackbarry, Kodak, Casio)
The development of the brand across different countries: Apple in each
country has different stage of developments; very useful tool.

The
Interbrand
approach
The interbrand approach involves three steps:
1.Financial forecasting
2.Role of branding
3.Brand strength
This approach is useful, partly because its a step closer to putting a financial
value on the brand
Measure the world major brands it puts a financial amounts next to brands.
Financial forecasting; how much profitability will this company generate
Role of branding: in some markets the brand is more important than in others
Brand strength: how differentiated is the brand, the consistently
The worlds most valuable brand is Apple, the Google and then Coca-Cola.

Topic 8 Managing brands over time

Managing brands over time
The internal and external environments of a brand constantly change
Thus, managers must know how to manage brands over time
Two of the typical thinks we do when we have a strong brand is:
- extend the brand
- revitalise the brand

1. Brand extensions
You have the brand and then you extend it in a new direction.
Gillette is a great example of brand extensions; they kill their own brand
moving customers to one extension to another one

Allows variety (brand cannibalization problem, can be dangerous but

sometimes is the only way to retain customer,)
A fighter brand is an extensions of a brand that is more expensive

May lead to retailer resistance (retailer may resist stocking a product)

Opportunity cost of developing a new brand (because to manage more brands)

2. Revitalising the brand

The customer-based brand equity model suggests that there are two ways to
refresh old sources of brand equity:
A. Expand the depth or breadth of awareness
Depth: do I really know Coke? Do I recognize it? Recognize the brand
Breadth: how often do I think of Coke?
When a brand is failing is not a problem of depth, but instead of
breadth the customer will not associate the brand with right things.
B. Improve the strength and uniqueness of brand associations
making up the brand image
A. Expanding Awareness
With a fading brand, often depth of
awareness is not the problem
Breadth of awareness is more often the
problem, which can be dealt by:
1.Identifying additional or new usage
opportunities create new business
opportunities
2.Identifying new and completely different
ways to use the brand reinvent what the
brand is really about
Ex: chewing gum: is not only about to refresh
your mouth but also a substitute for smoking
B.Improving brand image
Reposition the brand:
- find points of parity with category leaders
- estabilish new points of difference or bring the focus back on the old
PoDs
Change brand elements
- name and logo updating the logo, website..
Ex: FedEx people did not call it federal express, and they rename the
brand name

In Summary
The course was concerned with building, measuring and managing brands over
time, and with the implications for advertising at each step of the process.

EXAM
- write well
- introduction, body, conclusion examples at the end (include cases and
guest lectures)