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Definition of Terms

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EVOLUTION

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Definition of Terms

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A variety of changes that occur over time

Definition of Terms

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MARKETING

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Definition of Terms
The act or process of buying and selling in a market. The commercial functions involved in transferring goods from producer to consumer.

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Definition of Terms

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GUALVE CENON AMARILLO SANTELICES DELOS REYES PADILLA

IDEA

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Definition of Terms
A thought that is stimulated by placing two previously unrelated concepts together.

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Definition of Terms

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POSITIONING

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Definition of Terms

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Is that ONE THING

One characteristic that sets the service apart from competitors

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One descriptive sentence or slogan the company is known for

One specific idea that first comes to mind about the product

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Unique Selling Proposition

1950s

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Unique Selling Proposition

1950s

Unique Selling Point Rosser Reeves (Ted & Bates Company) Before: Theory (1940s) Today: to differentiate

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ORIGIN
Unique Selling Proposition
1950s

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1940s

Ted Bates and Company Extensive Market Research Penetration Usage Pull High Usage Pull concedes cool USPs.

DEFINITION
Unique Selling Proposition
1950s

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1940s Ted Bates and Company Extensive Market Research Penetration Usage Pull High Usage Pull concedes cool USPs.

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According to Reality of Advertising of Rosser Reeves, USP can be defined with the following statements:

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Unique Selling Proposition

1950s

1. "Buy this product, and you will get this specific benefit. 2. The proposition must be one that the competition either cannot, or does not, offer. 3. The proposition must be so strong that it can move the mass millions.

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EXAMPLES
USP

It Melts in your mouth, not in your hand

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EXAMPLES
USP

You get younger looking skin

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EXAMPLES
USP

You get rid of your dandruff

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bbbbb

EXAMPLES
USP

"When your package absolutely, positively has to get there overnight"

1960s

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IMAGING
(Brand Image)

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1960s
Brand Image Philosophy is derived primarily from the approach to advertising conceptualized by DAVID OGILVY. It refers to: a.) Emotional Qualities b.) Aesthetic Qualities that people associate a brand name to.

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IMAGING
(Brand Image)

DEFINITION

It meant the personality of the product - a combination of its name, packaging, price, its advertising style, the nature of the product etc.

IMAGING
(Brand Image)

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He knew nothing about marketing and had never written any copy but was interested in advertising. He went on to become one of the most revered marketing minds in the world. One of the most sought after copywriters and advertising men in history.

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AUTHORS BACKGROUND

IMAGING
(Brand Image)

David Ogilvy
1960, he had achieved to run a great agency that spread around the globe and firmly in place as one of the top agencies. 1965, Ogilvy dropped his title of chairman of Ogilvy & Mather's U.S. operations (remaining chairman of O&M International) to become Creative Director. ADVERTISING should be relevant and comprehensible

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AUTHORS BACKGROUND

IMAGING
(Brand Image)

David Ogilvy
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ROLLS ROYCE
Ogilvy used the headline:

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"At 60 Miles An Hour The Loudest Noise in This New Rolls-Royce Comes From The Electric Clock."

IMAGING
(Brand Image)

ROLLS ROYCE

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IMAGING
(Brand Image)

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Ogilvy suggests that:

Advertising should be relevant and comprehensible.

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BUT, BUT, BUT

IMAGING
(Brand Image)

If you spend your budget entertaining a customer then you are a bloody fool. Housewives dont buy a detergent because a manufacturer told a joke on TV last night. They buy it for a promised benefit.

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BUT, BUT, BUT

IMAGING
(Brand Image)

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1980s
Book:

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POSITIONING The Battle for Your Mind

Authors:

Jack Trout & Al Ries

Book:

POSITIONING The Battle for Your Mind

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Jack Trout
President, Trout & Partners, Ltd.

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POSITIONING he is responsible for some of the freshest ideas to be introduced into marketing thinking in the last several decades.
He manages and supervises a global network of experts that apply his concepts and develop his methodology around the world

Jack Trout

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AT&T, IBM, Burger King, Merrill Lynch, Xerox, Merck, Lotus, Ericsson, Tetra Pak, Repsol, Hewlett-Packard, Procter & Gamble, Southwest Airlines and other Fortune 500 companies. Has a business career in the advertising department of General Electric

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Jack Trout & Al Ries

He joined Al Ries in the advertising agency and marketing strategy firm where they worked together for over twenty-six years. With Al Ries he co-authored the industry classic, Positioning The Battle for Your Mind, which was published in 1980.

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Information Overload

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Information Overload
Consumer's mind reacts to this high volume of advertising. Accepting only what is consistent with prior knowledge or experience. Difficult to change a consumer's impression once it is formed A simplified message Perceptions of the consumer vs. the reality of the product

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Be the FIRST.

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Getting Into the Mind of the Consumer

Being the first to claim a unique position in the mind of the consumer

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Getting Into the Mind of the Consumer

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Getting Into the Mind of the Consumer

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If a brand is not number one, then to be successful it somehow must relate itself to the number one brand.

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"Avis in only No. 2 in rent-a-cars, so why go with us? We try harder."

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7-Up, which was No. 3 behind Coke and Pepsi. By relating itself to Coke and Pepsi as the "Uncola"

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7-Up was able to establish itself in the mind of the consumer as a desirable alternative to the standard colas.

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Success of a brand : company was first in the product category Example: XEROX - the first plain-paper copier which was able to sustain its leadership position

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Positioning of a Leader
FAILED!

Success of a brand : Due to its being first in the market rather than the marketing abilities of the company

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Power of the company comes from the Power of its brand

Positioning of a Leader

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1. Dont boast about being Number 1

- Coca-Cola's "the real thing" does reinforcing the fact, and implies that other colas are just imitations

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Market leader should do to maintain leadership

2. Multi-brand strategy 3. Leader must be willing to embrace change rather than resist it

Positioning of a Follower

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It is better to firstly establish leadership.

It is most likely a mistake to build a brand by trying to appeal to everyone.

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Positioning of a Follower

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Convince the consumers to view the competitor in a different way (ex. Tylenol vs. Aspirin)

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Repositioning the Composition

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Consumers tend to perceive the origin of a product by its name rather than reading the label to find out where it is really made.

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A brand's name is perhaps the

most important factor affecting perceptions of it. Names that are descriptive are more favored rather than the coined ones. (Coined Kodak, Xerox; Descriptive Head and Shoulders, Close-Up, People)

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Selecting the right name is important for positioning just about anything, not just products.

Power of a Name

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The No Name Trap

Companies with long, complex names have tried to shorten them by using initials. This strategy seldom works.

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X using w. why? Double u How about, www world wide web

The No Name Trap

Mcdo Mcdonalds B.K. Burger King BDO Banco de Oro BPI Bank of the Philippine Islands E.K. Enchanted Kingdom

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Can you think of more examples 3CA5?

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Can a second product get a free ride on the advertising coattails of a well-known brand?
In the case of products like LifeSavers gum, the answer is no.

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The Free-Ride Trap

Sumo Wafers (Tini winnie to Sumo)

P&G Beauty and Grooming

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The Free-Ride Trap

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Health and Well-Being

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The Free-Ride Trap

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House Hold Care

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The Free-Ride Trap

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Line extension has become the marketing sickness of the past decade.

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Why it seldom works?

The LineExtension Trap

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The LineExtension Trap

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THANK YOU!

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