W3 - Branding and Contribution of Advertising

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INTRODUCTION TO ADVERTISING

Week 3 – Branding and Contribution of


Advertising
Content
• What is Brand?
• Dimensions of Brand
• What is Strong Brand
• Brand Equity:
o Brand Awareness
o Brand Image
• Building Strong Brand
• Contribution of Advertising

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What is a brand?

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What are the brands you know?

… brings joy. It’s happiness in a bottle. To embrace the human spirit and let it fly. The world on time.

To inspire and nurture the human spirit – In a world rich in resources, poverty isn’t To give everyone the power to create
one person, one cup and one inevitable. It’s an injustice which can, and and share ideas and information instantly,
neighbourhood at a time. must be over come. without barriers.

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Ready for life and work The world’s local bank. Just do it!
What is a brand?
• Who was the first to use branding?
• What can be branded?
• Who do brands belong to in today’s world? Why?

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Brand vs. Product
Brand Product
Has dimensions that differentiate it in some Anything available in the market for use or
ways from other products designed to consumption, that may satisfy a need or
satisfy the same need. want.

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http://lionco.com/brands/dairy-and-drinks/
"A product is something that is made in a
factory, a brand is something that is bought
by a consumer. A product can be copied by a
competitor, a brand is unique. A product can
be outdated. A successful brand is timeless”.

(Stephen King, WPP Group cited in Haigh 1996. Yeshin 2006:98)

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Brand Essence Pyramid
Brand
Personality

Brand Value Concise list of core


customer values that lead them to
choose this brand

Emotional Benefits (Emotional/ Experiential/ Symbolic)


The end benefit to the consumer and how they feel
about what the brand does -
'what’s in it for me'

Functional Benefits
What it does, on a rational, functional level

Features and Attributes


Physical, tangible components, elements, properties of the brand and simple facts –
'what it is'

Brand Essence:……………………………………………………………. 8
Brand Attributes
• Attributes underline the product performance:
o Meets customers’ more functional needs.
o Rate on objectiv e assessments of quality.
o Satisfies utilitarian, aesthetic, and economic customer needs and wants in the product
or serv ice category.
• Primary ingredients and supplementary features. E.g. toothpaste, cosmetics,
painkillers.
• Product reliability, durability, and serviceability. E.g. cars, vipp bins, computers.
• Service effectiveness, efficiency, and empathy. E.g. cars, shoes – mister minit.
• Style and design, e.g. B&O, Space, Top3 by Design
• Price, e.g. Sunbeam, Rolex, Coach vs. LV

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Functional Benefits

• Require and therefore offer consumers


assortments of added values (horizontal
differentiation).

• Require and therefore offer consumers Horizontal differentiation


choices of goods at different levels of
quality to suit varying needs and situations
(vertical differentiation).

• Provide reliability and reassurance.


Vertical differentiation
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Functional Benefits

https://www.linkedin.com/pulse/how-find-your-brands-funct ional-emotional-benefits-
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graham-robert son/
Emotional Benefits
• How do customers feel after using the
product? Customers aren’t just interested in
your product features; they want you to tell
them a story. They want your product to
make them feel a little bit better.

• To identify emotional benefits, marketers


have to start with the features and
attributes of the brand and ask “SO WHAT
Customers care about those features and
attributes?”
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Emotional Benefits

https://www.linkedin.com/pulse/how-find-your-brands-funct ional-emotional- 13
benefits-graham-robertson/
Competition in the Clusters of Benefits
• Advertisers should choose the benefits to that the brand stand behind. They
should look at clusters of the functional and emotional benefits to match up what
consumers needs/wants with what the brand does better than other competitors.

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Activity: End Benefits of a Brand
• Work in group in 10 mins to identify the end benefits of a brand. Follow
the structures:

o Features of products.
o Attributes. SO WHAT
Customers
o Functional benefits.
care?
o Emotional benefits.

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Brand Values

• Brand Value is the set of attributes or


values that it promises to deliver to
customers to satisfy their needs or wants. Customer’s Unique
needs BV attributes or
values
• Brand Value should differentiate brands
and position them in the marketplace.
Competitor’s
• Answer: “Why should customer buy our unique
brand rather than competitor’s?” attributes or
values

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Brand Personality
• “Personality is an appropriate metaphor for brands based on the idea
that a consumer attraction towards brands having personality similar to
his personality”.
• The character of a brand expressed in human terms (eg. reliable,
friendly, sophisticated).
• Through consumer experience or marketing activities, brands may take
on personality traits.
• Self-concept is important as well as public or private use of the brand.
E.g. Perrier, cars, beer, liquor, cosmetics.

Keller, L.K. (2013) St rategic Brand Management 4t h Ed,


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Pearson Publicat ions, Aust ralia.
Dimensions of Brand Personality

Ahm ad, A., & Thyagaraj, K. (2015). Understanding the Influence of Brand Personality on Consum er Behavior. JOAMS Journal of Advanced 18
Managem ent Science, 3(1), 38-43.
Pepsi vs. Coke

Excitement Sincerity
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Creation of Brand Personality
Product-Related Characteristics Non-Product-Related Characteristics
Product category (Bank) User imagery (Levi’s 501)
Package (Apple) Sponsorship (Swatch)
Price (Tiffany) Symbol (Marlboro Country)
Attributes (Coors Light) Age: old or young brand (Kodak)
Ad style (Obsession, Dien May Xanh)
Country of origin (Audi)
Company image (Pepsi International)
CEO (Steve Jobs for Apple)
Celebrity endorsers (Pepsi)

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Brand Essence
• Brand Essence is the underlying reason why customers care about the
brand. For example, Apple’s brand essence is “empowering people
through technology”.
• Brand essence is brand's DNA, what the company stands for and what
differentiates it from the competition.
• Brand Essence is what drives the positioning of the brand in customer’s
mind (Brand Positioning).

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Branding and Brand Identity
• The process of creating a unique identity for the product or service.
• Brand Identity:
o A combination of factors including: name, logo, symbols, design,
packaging and performance of a product or service.
o Image or associations that come to mind when consumers think
about a brand.
o Encompasses the entire spectrum of consumers’ awareness,
knowledge and image of a brand as well as the company behind it.
It is the sum of all touch points that consumers have with the brand.

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What is a Strong Brand?
• A brand is strong when it condenses the peak performances of a
company and makes them tangible over a long period of time, and
credibly presents its uniqueness at all brand touchpoints.
• Strong brand has been market leaders in their categories for decades.
• Poor brand management can cause the brand to be vulnerable and
susceptible.
• Strong brands give consumers a clear image of the brand and what it
stands for. In another words, strong brands can be measured how deep
of brand knowledge located in consumer’s mind. This is becoming the
asset of the business which is called brand equity. Strong brand means
strong brand equity.

Keller 2013 23
Strong Brands

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Brand Equity
• Brand equity is viewed in two perspectives: Financial and customer-based. The
first view is the financial asset value that the brand creates to the business. The
second view is the evaluation of the customer response to the brand. In
branding, we focus on customer-based brand equity (CBBE).
• Stresses that the power of a brand lies in what resides in the heads and hearts of
customers. Differential effect that brand knowledge has on consumer response
to the marketing activities of that brand.
• Differences in outcomes arise from the “added value” endowed to a product as
a result of past marketing activities.
• Consumer’s perception of the brand plays a key role in determining the worth of
the brand.
• Brand equity provides a common denominator for interpreting marketing
strategies and assessing the value of a brand.

Keller 2013 25
Source of Brand Equity

• Related to the strength of the brand node or trace in memory.


Brand Awareness • Created through repetition, brand elements, experiences, advertising
slogans, etc.

• Consumers’perceptions about a brand.


• Established through repeated exposure (for brand recognition), and forging
strong associations with the appropriate product category or other relevant
Brand Image purchase or consumptions cues (for recall).
• Once sufficient brand awareness is created, marketers can put more
emphasis on crafting a brand image.

Keller, L.K. (2013) St rategic Brand Management 4t h Ed, Pearson


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Publicat ions, Aust ralia.
Brand Awareness

• A pinnacle of brand name awareness exists when a company’s brand is the first brand
Top of mind that consumers recall when thinking of a particular product category.

Brand • Consumers’ ability to confirm prior exposure to the brand when given the brand as a cue.
recognition • Consumer can identify the brand in store as they have been exposed.

• Consumers’ ability to retrieve the brand from memory when given the product category,
the needs fulfilled by the category, or a purchase or usage situation as a cue. For
Brand recall example, when customers think of dairy product, they recall Vinamilk; or customers think
what make meal better, they recall Pepsi.

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Advantages of Strong Brand Awareness
• Learning advantages: To create a brand image, marketers must first
establish a brand node in customer memory, the nature of which affects
how easily the consumer learns and stores additional brand
associations. If the right brand elements are chosen, the task becomes
easier.
• Consideration advantages: Consumers must consider different brands
when making purchase. With the high awareness, the brand is likely put
in the basket with other brands for consideration. We call consideration
set.
• Choice advantages: with high awareness the brand can stand out from
the consideration set. This can see in low-involvement decision settings.

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Great Meal with Pepsi

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How to Establish Brand Awareness?
• Breadth - Range of purchase and usage situations in which the brand element
Breadth and comes to mind.
Depth of • Depth - Ease with which brand elements can be recalled. A brand is easily recalled
has a deeper level of brand awareness than one that we recognize only when we
Awareness see it.

Product • How product categories are organized in the consumer’s memory. E.g. Tropicana.
Category • In consumers’ minds, first comes product class information; second, product
category information; third, product type; and then fourth, brand information.
Structure

• The brand must not only be top-of-mind and have sufficient “mind share”, but it
must also do so at the right times and places. E.g. Newcastle in Australia or
Strategic England???
• Where do consumers think about a brand?
Implications • When consumers think of a brand?
• How often do consumers think of a brand?

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How Twister Fits in Breakfast?

• Brand depth & breadth


• Product Category Structure
• product class.
• product category
information.
• product type.
• brand information.

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Brand Image
• Consumers’ perceptions about a brand. Established through repeated exposure (for brand
recognition), and forging strong associations with the appropriate product category or other
relev ant purchase or consumptions cues (for recall). Once sufficient brand awareness is
created, marketers can put more emphasis on crafting a brand image.
• Positive brand image - Requires strong favourable and unique brand associations.
• Forms of brand associations:
o Brand attributes: Descriptiv e features that characterize a product or serv ice. A
combination of factors including: name, logo, symbols, design, packaging and
performance of a product or serv ice.
o Brand benefits: The personal v alue and meaning that consumers attach to the product or
serv ice attributes.
• Encompasses the entire spectrum of consumers’ awareness, knowledge and image of a
brand as well as the company behind it. It is the sum of all points of encounter or contact
(touchpoints) that consumers hav e with the brand.

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Dimensions of Brand Equity
Features

Quality
Product Related
Brand Recognition Design
Attributes Price
Brand
Awareness Non-Product
Related User Imagery
Brand Recall
Brand Personality

Functional Feeling/Experience
Brand Brand Types of
Benefits Experiential
Equity Identity Associations
Symbolic

Brand
Brand Associations
Image Attitudes

Fav orability
Association
Strength
Features
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Uniqueness
Building a Strong Brand
1. Ensure identification of the brand with customers and an association of
the brand in customers’ minds with a specific product class, product
benefit, or customer need.
2. Firmly establish the totality of brand meaning in the minds of customers
by strategically linking a host of tangible and intangible brand
associations.
3. Elicit the proper customer responses to the brand.
4. Convert brand responses to an intense and active loyalty relationship
between customers and the brand (Brand Loyalty).

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Contribution of Advertising in Building Brand
• Advertising is the customer’s visible aspect of the marketing chain.
• Advertising helps customers understanding the meaning of the brand
on functionality, symbolic, and social power.
• Advertising can help brand to stamp the brand identity on a market.
• Beside persuading individuals to buy, advertising are sometimes building
a marketing presence and a cultural presence (e.g. Coca Cola).
• Advertising plays an important role in inter-connecting IMC tools.
However, advertising doesn’t stand alone in the brand communication
process. It has to collaborate with other tool to bring the success of the
brand.

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Course Resource
• Belch, G.E. & Belch, M.A. (2018) Advertising and Promotion: an Integrated Marketing Communications Perspective. McGraw-Hill
Education: New York. P.174.
• Chitty, Barker and Shimp (2008) Integrated Marketing Communications 2ed, Cengage Learning Australia, pp 2–8.
• Jones J.P. (1999) The Advertising Business, Sage, pp 325–355.
• Keller, L.K. (2013) Strategic Brand Management 4t h Ed, Pearson Publications, Australia.
• Hackley, C. & Hackley, R.A. (2018) Advertising & Promotion 4t h Ed., Sage Publications, Australia.
• O’Guinn, Allen, Semenik (2009) Advertising & Integrated Brand Promotion, 5ed South-Western Cengage Learning.
• Schultz, Don E., Tannenbaum, Stanley I., and Lauterborn, Robert F. (1993) Integrated Marketing Communications. NTC Publishers:
Chicago. P.29.
• Smith, P. R. , Author, and Chaffey, Dave. Digital Marketing Excellence : Planning, Optimizing and Integrating Online Marketing. Fifth
ed. London (Online access via RMIT Library).
• Wells W., Spence-Stone R., Moriarty S. and Burnett J.(2015) Advertising Principles and Practice, Australasian 3rd, Pearson Austr alia.
• Wells W., Spence-Stone R., Crawford, Moriarty S. and Mitchell (2014) Advertising Principles and Practice, Australasian 3 ed, Pea rson
Australia.
• Yeshin, T. (2006) Advertising, Thomson.
• Zikmund WG and d’Amico M (2002) Effective Marketing, 3rd ed, South-Western Thomson.

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