Transcript this brand is

Issues in Marketing
& Branding
4/8/2017
1
Marketing: Introduction
2
Role of Marketing
in a Business
Must first ask:
“What is the purpose of a business?”
4/8/2017
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Marketing’s role
(Cont’d)
Peter Drucker:
“If we want to know what a business is we have to start with
its purpose. There is only one valid definition of a
business purpose: to create a customer. ...
Because it is (the purpose of a business) to create a
customer, the business enterprise has two --- and only
these two ---functions:
marketing and innovation.”
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Why Marketing is More
Important than Ever

Consumer heterogeneity

Competition

Information explosion

Media proliferation

Product maturity

Increasing commoditization
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Stanford Business Magazine, (May, 2006)
Commoditization is the “cancer of the 21st
century.”
Peter Georgescu,
Chairman Emeritus,
Young & Rubicam
Goal of marketing is to prevent commoditization.
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Marketing Orientation

Determine needs and wants of customers

Deliver this more effectively and efficiently than
competitors
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Market Orientation, Customer
Satisfaction, and Profitability
Business
Profitability
The market orientation
of a business is the
bedrock of marketbased management
and profitable growth.
Customer
Satisfaction and Retention
Market-Based Strategy
and Strategy Implementation
Customer/Market Orientation
of a Business
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Marketing's 4 Ps
Brands and Brand
Positioning
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Brand Positioning
•
Market Segmentation =
•
•
Brand Differentiation =
•
•
benefits desired by customer segment
superiority / uniqueness relative to competition
Brand Positioning =
•
•
Intersection of product differentiation with market
segmentation
designing the product to fit in predetermined position in
market and mind of targeted consumer
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Positioning is Important
“The two most fundamental decisions that have
to be made are the targeting decision and the
positioning decision.
If (these) decisions are made correctly, the other
things will follow. If they’re made incorrectly,
nothing good will follow.”
Philip Kotler, Northwestern Univ.
Quoted in Counter Intuitive Marketing
by Clancy and Krieg, 2000
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Format of a Proper
Positioning Statement
For …
(target market),
this brand is … (key differentiating claims)
because … (rationale for claims).
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Example: Avis



For:
business people who rent cars,
Avis is:
the company who gives the best service
Because: the employees own the company.
Previously:



For:
Avis:
Because:
business people who rent cars,
tries harder (to give good service)
we are (only) #2.
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Hyundai
Positioning Statement
For
consumers looking for value when
purchasing automobiles,
Hyundai
delivers more for the dollar
because
with Hyundai, you don’t pay extra just
for a name.
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Acuvue
Advance Brand Contact Lenses

For people who want to see well yet still feel
comfortable,

Acuvue Advance lenses are the most
comfortable (“feel nothing, yet see everything”)

Because they are the only lenses made of
HYDRACLEAR, a moisture rich material that is
more like your own eye
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Extended
Positioning Statement
For …
this brand is a
that is …
(target market)
(type of product;
frame of reference)
(key differentiating claims)
because … (rationale for claims)
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Example #1 of Extended
Positioning Statement
For …
Dijourno is
(people who love pizza)
,
It’s not delivery;
it’s Dijourno!
(the pizza)
(Not the frozen pizza)
that …
(tastes like home-delivered or
store-bought pizza)
because … (it tastes great)
.
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The CRUDE Test for
Effective Positioning
Brand’s position must be:
Credible
Relevant / Resonating
Unique
Durable / Defendable
Easy to
communicate
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Summary


Good positioning is key to good marketing
Proper positioning statement should include
at least:



Target segment
Key claim
Rationale to believe the claim
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Other Common
Ways to Position Brands

Use or application


Gatorade is for football games or for after
tough workouts
Dove is for your face or hands
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Common Bases for
Positioning (Cont’d.)

Against another brand
(either direct competition or as a reference point for
comparison)

Avis (vs. Hertz)

Pepsi (vs. Coke)

Blockbuster vs. Netflix

Miller vs. Bud
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Competitive Positioning Example:
Billboard in Mumbai
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Next …
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Then …
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Finally ….
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Questions about Positioning
Within Your Company
(to be answered in your Brand Audit)



How well are brands managed in your firm?
How well have you dealt with the threat of
commoditization?
How is your brand positioned?

Is it properly positioned?
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Communicating
Brand Benefits
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An Attitude Model to Analyze
Consumers’ Brand Perceptions
Aj =  (bij) (wi)
Aj = Attitude toward Brand j (a product or service)
bij = belief about brand j on attribute I
 = summation over n attributes
wi = the goodness/importance of the attribute
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Strategies
Suggested By Multi-Attribute Model
1. Change beliefs (bij) :
1-1. Modify the
product’s actual attributes
1-2. Alter consumers’
beliefs about your brand
1-3. Alter consumers’ beliefs about competitors
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Change Beliefs
1-1. Modify the product’s actual attributes
“Now with blue bleach tabs for even better
brightening of your clothes ..”
“ Your Ford can now allow you to speak to your CD
player (Ipod meets …”
“With this new material, our new chips are faster than
ever before.”
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Change Beliefs
(cont’d)
1-2. Alter consumers’ beliefs about your brand
- Most common ad message strategy
“Oscar Meyer is the hot dog kids love to eat. .”
“LIFE is the most healthy cereal that kids like to eat.”
“Even Mikey likes it!!!”
“Your telecommunications system is safe with Cisco.”
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Message:
M-Tech
Plasma HID
Lights are
300%
brighter
than
regular
headlights.
The burn effect
sticker from the
headlight makes
an impression.
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(Malaysia)
Changing Belief Strategies
1-3. Alter beliefs about competitors’
- “Competitive Repositioning”
a. direct attacks
b. direct comparisons
c. indirect comparisons
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(cont’d)
brands
Direct Attacks
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A bit more subtle
…
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Direct Attack
Miller Beer:
“How can they say
they are the ‘King of
Beers’? I’m here to
announce that Miller
is the President of
Beers! This is
America --- not some
kingdom. Didn’t they
get the memo? … “
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Direct Comparison
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Or we can use
Implied Comparisons
The ad (from the Netherlands) implies implicitly that Burger King
‘tastes better’ than McDonalds. It doesn’t mention McDonalds
directly but McDonalds jumps out as soon as you recognize the feet
of Ronald McDonald waiting in the Burger King line.

Not only is it clever, cheeky, and entertaining, ads like this one have
good ‘pass-along’ value. People draw other people’s attention to

them and word-of-mouth40relays the effect.
Criticism #1:
Nothing about Social Influence
(Cont’d.)
Opinion Leadership (and other social
cues):
Choose the alternative recommended by:
- a friend
- an expert
- an attractive spokesperson.
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Can add a Social Norms
Component to Model
Aj =  (wi) (bij) +  (Kpj) (pm)
Where p = other persons (e.g., boss, engineer,
spouse, friends, kid)
K = importance of pleasing/not pleasing
m = number of significant other persons
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Criticism #2:
Too Cognitive;
Must Recognize Role of Emotion

Recognizes only the piece-by-piece pieces of
perceptions

Customers may not be able to articulate
why they like a brand

Goal of many brands is to make an emotional
connection as well as or instead of cognitive logical
argument.
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For Many Products, Overall Emotion
May Drive Preference





(“I don’t know why, but), I just LOVE this brand!”
I buy this because it gives me memories of when
we used to date.
Pillsbury doughboy, Campbell’s Soup, Coke (>
Pepsi)
My Motorola phone is my best friend. Don’t know
what I’d do without it.
Johnson and Johnson
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Criticism #3:
Need to Consider Situation
Perceptions of benefits and importance may
vary by situation
Can add another subscript and measure for different situations.
Aj =  (bijk) wi
where k is the kth situation
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Importance of the Situation
Example: Different Situations for Lunch
1.
2.
3.
4.
5.
6.
lunch with kids
lunch with friend
lunch by self
when really hungry
when I want to treat myself
when I need to relax
Does the importance vary by the above
situations for:
price?
speed of service?
atmosphere?
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