promo mix Flashcards
is endowing products with the power of a brand. It’s all about
creating differences between products. A brand answers the question:
Who is the product?
Branding
is the added value endowed on products. It may be reflected in customers’ brand knowledge as well as in the prices, market share, and profitability the brand commands.
Brand equity
pertains to all the thoughts, feelings, images, experiences, and beliefs associated with the brand.
brand knowledge
is the marketer’s vision of what the brand must be
and do for consumers
brand promise
4 Key concepts of Brand Equity
Differentiation
Relevance
Esteem
Knowledge
measures the degree to which a brand is seen as different from others, and its perceived momentum and leadership
Differentiation
measures the appropriateness and breadth
of a brand’s appeal
Relevance
measures perceptions of quality and loyalty, or how well the brand is regarded and respected
Esteem
measures how aware and familiar consumers are with the brand.
Knowledge
Stages of Brand Development
- Identity
- meaning
- response
- relationships
Objective: Establish Brand awareness
Identity
Objective: Establish points of
difference with competitors
meaning
Objective: Communicate brand solutions to problems
response
Objective: Establish customer’s brand loyalty
relationships
Brand-building criteria
- Memorable
- Meaningful
- Likable
Brand-defending criteria
- Transferable
- Adaptable
- Protectable
intend to build the strength and relevance of the brand and equips it with characteristics that makes it stand out:
Brand-building criteria
help leverage and preserve brand equity against
challenges
Brand-defending criteria
being recognizable and easy to recall
Memorable
leverages on the ingredients and target customer’s
tendencies
Meaningful
being aesthetically appealing
Likable
brand can be applied across product mix
Transferable
brand is able to be updated and refreshed to adapt with customers’ liking
Adaptable
brand should be protected from being used negatively
Protectable
Building Brand Elements
3 Characteristics of Strong Compelling Brands
Mystery
Sensuality
Intimacy
draws together stories, metaphors, dreams, and
symbols. Mystery adds to the complexity of relationships
and experiences because people are naturally drawn to
what they don’t know
Mystery
keeps the five senses of sight, hearing, smell, touch, and taste on constant alert for new textures, intriguing scents and tastes, wonderful music, and other sensory stimuli.
Sensuality
means empathy, commitment, and passion. The close connections that win intense loyalty.
Intimacy
Brand Narrative and Storytelling Techniques
Setting
Cast
Narrative arc
Language
choosing the appropriate time, place, and context
Setting
building the brand as a character, including its role in the life of the audience, its relationships and responsibilities, and its
history
Cast
establishing the way the narrative logic unfolds
over time, including actions, desired experiences, and defining events
Narrative arc
the authenticating voice, metaphors, symbols, themes
used should be aligned and appropriate
Language
are the means by which firms
attempt to inform, persuade, and remind consumers—directly or indirectly—about the products and brands they sell.
Marketing Communications
Steps in Developing Effective Marketing Communications
- Identifying Target Audience
- Determining Objectives
- Designing Communications
- Selecting Channels
- Establishing Budget
- Deciding on Marketing Communications Mix
- Measuring & Managing Result
The target audience is a critical influence on how
marketing communications will be implemented.
- A current user vs a new user of the category (product
knowledge) - An innovator vs a laggard (willingness to try)
- A brand loyal vs a switcher (willingness to switch)
- A heavy user vs a light user (duration of use)
Identifying Target Audience
4 Major Objectives
(Determining Communications Objectives)
Category Need, Brand Awareness, Brand Attitude, Brand Purchase Intention
establishing a product to remove or satisfy a perceived discrepancy between current and desired motivational states (Example: Non-acidic
Ascorbic acid boom – owners needed to establish that a
new Ascorbic Acid category is needed by the market)
Category Need
establishing brand recall to trigger purchase (Example: Biogesic tablet’s iconic “Ingat!” slogan triggers decision to purchase the brand)
Brand Awareness
to help customers evaluate the brand’s perceived ability to meet a current relevant need.
Brand Attitude
sensory gratification, intellectual stimulation, social approval
(Brand Attitude)
Positively oriented
problem removal, problem
avoidance, incomplete satisfaction, normal depletion
(Brand Attitude)
Negatively oriented
moving consumers to decide
to purchase the brand. (Example: coupons, deals, discounts,bundled promos)
Brand Purchase Intention
Designing Communications
Formulating communications to achieve the desired
response requires solving three problems:
- what to say (message strategy)
- how to say it (creative strategy)
- who should say it (message source)
In determining __________, a marketer searches for appeals, themes, or ideas that will tie in to the brand positioning and help establish points-of-parity or points-of difference.
message strategy
There are two factors that must be considered in crafting your message strategy:
- Rewards expected from the product
- How will customers visualize the reward from the product
3 Types of rewards expected from a product:
Rational
Sensory
Ego Satisfaction
logical outcome (Ex: a soap cleans, Paracetamol relieves pain)
Rational
organoleptic outcome (Ex: a multivitamin brand makes you feel better, a toothpaste brand feels fresh)
Sensory
confidence-boosting outcome (Ex: a deodorant brand makes someone smell like a king)
Ego Satisfaction
2 Ways consumers visualize product rewards:
Results-of-Use experience
Product-in-Use experience
rewards are visualized due to use of the product
Results-of-Use experience
rewards are visualized while using the product
Product-in-Use experience
are the way marketers translate their messages into a specific communication
Creative Strategy
depends on how a message is being expressed, as well as on its content. If a communication is ineffective, it may mean the wrong
message was used, or the right one was poorly expressed
Communications effectiveness
2 types of creative strategies:
- Informational appeal
- Transformational appeal
- elaborates on product attributes or benefits.
- assume strictly rational processing of the communication on the consumer’s part. Logic
and reason rule.
Informational Appeal
Types of informational appeals:
Problem solution ads (Solmux)
Product demonstration ads (Canesten)
Product comparison ads (Bioflu)
Testimonials from endorsers (Neozep)
- elaborates on a nonproduct-related benefit or image of
the product - attempts to stir up emotions that will motivate purchase
Transformational Appeal
Types of transformational appeals:
Negative appeal
Positive appeal
Motivational appeal
(fear, guilt, and shame) - Immunpro
Negative appeal
(humor, love, joy, hope) - Centrum
Positive appeal
(uses “borrowed interest devices” such as a cheerful baby, cute puppies, popular music)
Motivational appeal
- Messages delivered by attractive or popular sources can achieve higher attention and recall, which is why
advertisers often use celebrities as spokespersons. - Celebrities are likely to be effective when they are
credible or personify a key product attribute.
Message Source
Sources of endorser’s credibility:
Expertise
Trustworthiness
Likability
specialized knowledge
Expertise
objectivity and honesty
Trustworthiness
source’s attractiveness
Likability
Selecting an efficient means to carry the message becomes more difficult as channels of communication become more fragmented and cluttered.
Selecting Communication Channels
– individualized presentation and feedback (often more effective than non-personal)
Personal communication channels
Types of Personal communication channels
Advocate channels
Expert channels
Social channels
sales reps connecting with the customer
Advocate channels
independent experts providing a review of the
product
Expert channels
reference groups talking about the product
(neighbors, family, etc)
Social channels
ads, events, experiences, public relations, sales
promotions
Non-personal communication channels (mass media; targets the general public)
Deciding on how much to spend in marketing promotions is one of the most
difficult marketing decisions.
Establishing the Total Marketing Communications Budget
3 Common Methods of Budgeting Mktg. Comms.
Affordable Method
Percentage of Sales Method
Objective & Task Method
based only on what you can afford
Affordable Method
based on determined available funds after selling a product (% is based on past sales or competitors’ %
spending)
Percentage of Sales Method
budget is based on the marketing objective
and desired implementation tasks and strategies
Objective & Task Method
Companies must allocate the marketing communications budget over the 8 major modes of communication:
Deciding on the Marketing Communications Mix
8 major modes of communication:
- Advertising
- Sales promotion
- Public relations & publicity
- Events & Experiences
- Direct marketing
- Interactive marketing
- Word-of-Mouth marketing
- Personal Selling through sales force (sales reps)
reaches geographically dispersed buyers. It can build up a long-term image for a product or trigger quick sales. Remember: the mere presence of advertising might have an effect on sales
Advertising
General characteristics of Ads
Pervasiveness
Amplified expressiveness
Control
the company repeats the message of the ads repetitively so that consumers can quickly remember and/or
compare competitors
Pervasiveness
brand dramatization through print, sound, and color
Amplified expressiveness
companies control the aspects of the brand that needs communication focus (Example: focus on cheap price advertisement
than product advantages over competitors)
Control
5 Ms of Advertising
Mission
Money
Message
Media
Measurement
Use of promotional tools such as: coupons, premiums, discounts to trigger buyer response.
Sales Promotion
Highly relevant example of the marketing communications mix
because customers are personally involved and engaged while being
informed of the qualities of purchase points of the product or brand.
Events & Experiences
Used to challenge customer’s misconceptions. Some examples are news stories which are perceived to be more credible than ads or
mass media publicity that tells a story about the product, company, or brand. (includes a variety of programs to promote or protect a company’s image or individual products)
Public Relations & Publicity
Use of phone, online platforms, and face-to-face engagements to market the product
Direct & Interactive Marketing
Public & Ethical Issues in Direct Marketing:
Remember: These must be avoided at all times.
Irritation
Unfairness
Deception and fraud
Invasion of privacy
many people don’t like hard-sell, direct marketing solicitations
Irritation
some direct marketers take advantage of impulsive or less sophisticated buyers or prey on the vulnerable, especially the elderly
Unfairness
some direct marketers design mailers and write copy intended to mislead or exaggerate product size, performance claims.
Deception and fraud
a marketer must always abide to the Data Privacy Law of the
Philippines and treat customer data with highest level of care
Invasion of privacy
Can be both online (20%) and offline (80%). Customers tend
to believe and trust people whom they know and respect.
This type of marketing tool can become highly influential
due to its intimacy (personal dialogue between the
message giver and message receiver)
Word-of-Mouth Marketing
Personal selling is the most effective tool at later stages of the buying process, particularly in building up
buyer preference, conviction, and action.
Personal Selling
Steps in Effective Personal Selling
- Prospecting and Qualifying
- Pre-approach
- Approach
- Presentation and Demonstration
- Handling Objections
- Closing and Follow-up
Identify prospective customers
Prospecting and Qualifying
Learn the needs and wants of
the qualified customers
Pre-approach
Build the solution for the problem of the customer
Approach
Telling the story of the company, product, and brand.
Presenting the solutions to their problems.
Presentation and Demonstration
Clarify objections (Ex. Price, quality, reluctance to buy
Handling Objection
Provide a closing/summary statement and establish
repeat purchase
Closing and Follow-up
One of the most popular way to measure results is with the aid of a ________
good feedback
measurement.
Measuring the impacts of marketing communications is crucial because the
magnitude of that impact would be the basis of future budget allocation per marketing communication tool.
Measuring & Managing Results
pertains to the potential market
(Measuring & Managing Results)
Total
pertains to awareness of the market to the brand
(Measuring & Managing Results)
Awareness
pertains to consumers who are aware of the brand and their level of trial participation
(Measuring & Managing Results)
Brand trial
pertains to the consumers who are aware of the brand, tried the brand, and their level of satisfaction (experience)
(Measuring & Managing Results)
Satisfaction
