Sei sulla pagina 1di 9

Part II Planning and Advertising

INTRODUCTION
Most think of the creative commercials, colorful advertisements, etc., when they think of advertising. But it is media function that is becoming more prominent in the advertising process. This section covers major media and the complexities of media planning. While creativity has primarily been applied to ad creation, it is more and more applicable to the strategies used by the media planner in placing advertising. Todays media planner must understand the medium, the synergistic effects of medium, product, and audience, and be well versed in research, marketing, psychology, and mass media effects. Most great advertising comes from hard work and research. Integrating of marketing communications requires careful planning. Chapter 3 traces the introduction, maturity, and eventual decline of products through the concept of the advertising spiral. Also, the role of brands, brand equity, and integration of marketing communication are discussed. Chapter 4 reviews the specific niche a product occupies and how to narrowly target a product to a defined group of consumers.

CHAPTER 3 THE ADVERTISING SPIRAL AND BRAND PLANNING CHAPTER OBJECTIVES


After reading this chapter the student should understand: 1. The importance in understanding the product life cycle. 2. Relationship of the advertising spiral. 3. The birth and basics of branding. 4. Brands and integrated marketing. 5. Brand equity. 6. Strategic planning methods.

CHAPTER OVERVIEW
The 1990s have generated renewed interest for marketers in protecting their brands. The earlier focus on short-term profits has given way to an emphasis on integrated marketing communication and strategic planning. Integrated marketing communication builds brand equity and better strategies for marketing the product. Product development and marketing objectives are an important part of a brands strategic plan. The developmental stage of a product determines the advertising message. The manner of presentation of the product is tailored to the products position in the advertising stage of the product. The advertising lifecycle of a product consists of three stages: 1) pioneering, 2) competitive, 3) retentive.

LECTURE OUTLINE
I. The Pioneering Stage A. Introduction 1. Consumers often pay little or no attention to new products regardless of the manufacturers efforts in developing and promoting it. a) Sometimes the need has not occurred to consumers. b) Consequently they do not feel a compulsion to buy it. 2. Advertising in this stage introduces an idea that makes previous conceptions appear antiquated. a) It must show previous methods have been improved. b) Past limitations have been overcome.

23

3. 4. 5.

6.

7. 8. 9. 10.

11.

c) Producers cannot assume consumers will change their habits. Advertising must implant: (1) a new custom. (2) change habits. (3) develop new usage. (4) cultivate a new standard of living. The purpose of advertising in the pioneering stage of a product's life cycle is to educate consumers about the new product or service. Example Fleishmanns introduction of Egg Beaters. a) They had to change attitudes and habits. The purpose of the pioneering stage of a products life cycle is: a) to educate the consumer. b) to show that a person has a previously unappreciated need that the advertised product can fulfill. c) to show that a new product is actually capable of meeting a need that had already been recognized but that could not have been fulfilled before. Pioneering advertising generally stresses what the product can do, offer, or provide that could not have been done, offered, or provided by any product before. a) True pioneering products offer more than minor improvement. It is consumer perception that determines the stage of the product. a) The consumer asks, What is the product for? Often ad copy focuses on generic aspects of the product category in order to inform. Consumer acceptance takes time, maybe months or even years. Often manufacturers create products consumers do not instantly want. a) Advertising aims at convincing them they can accomplish something they couldnt before, through use of the new product. b) When a product is introduced to the marketplace heavy advertising and promotional expenditures are necessary. c) The product is usually not profitable in pioneering. d) If you are successful, competitors will jump into the market and try to take market share. Usually the main advantage to being a "pioneer" is that you become the leader with a substantial head start over others.

II.

The Competitive Stage A. Introduction 1. When a pioneering product becomes accepted by consumers and they have a desire for it, there is going to be competition. a) The consumer asks, What brand should I buy? b) When this happens the product has entered the competitive stage of its life cycle c) Competitive advertising begins. 2. The pioneer usually has leadership and market dominance. 3. The combined impact of competitive efforts results in significant product sales growth. B. Advertising 1. The purpose of advertising in this stage is to: a) Communicate the product's position. b) Differentiate the product to the consumer. c) Focus on differentials.

24

III.

The Retentive Stage A. Introduction 1. The product has reached maturity and has wide scale acceptance. B. Advertising 1. Reminder advertising reminds the consumer that the brand exists. The goal is to keep the brand name in front of the customer. 2. Little copy is necessary; the consumer does not need information about the product. The ad itself is usually highly visual. 3. Few advertisers ever consider their products solely in the reminder stage. 4. The goal is to maintain market share and ward off consumer trial of other products. a) Different promotional and marketing strategies are used than in pioneering or competitive stages. 5. Generally, products in this stage are at their most profitable level because developmental costs have been amortized, distribution channels established, and sales contacts made. The Advertising Spiral A. Introduction 1. The advertising spiral is an expanded version of the advertising stages of products. 2. It provides a point of reference for determining which stage or stages a product has reached at a given time in a given market and what the thrust of the advertising message should be. B. Comparison of stages. 1. There are fewer products in the pioneering than the competitive stage. 2. Most advertising is for products in the competitive stage. 3. In using the advertising spiral, we deal with one group of consumers at a time. The advertising depends upon an attitude of that group toward the product. a) A product in the competitive stage may have to use pioneering advertising aimed at other groups of consumers in order to expand. b) The retentive stage gets the least amount of advertising. However, effective advertising at this stage is critical. 4. Product in Competitive Stage. Improvement in Pioneering Stage a) A product may enter the competitive stage without advertising during pioneering. b) A new product must differentiate itself immediately. c) Change is a continuum. A product continues in the competitive stage despite pioneering improvements. d) Pioneering advertising may help revitalize a brand when a new feature differentiates it. 5. After the Retentive Stage. a) Product life doesnt cease when a product enters the retentive stage. b) It is the most profitable stage. 6. There is a choice of two strategies. a) Decide to gradually let the product die. Ending of advertising and withdrawal of other forms of support. b) The product loses market share but remains profitable. c) It portrays an inevitable decline, whereas most products go through cycles of peaks and valleys. d) The second strategy is the advertising spiral. Effort is made to expand the product into new markets and a new pioneering stage.

IV.

25

7. When a product approaches a new Pioneering stage, decisions need to be made. a) Improve the existing product. b) Line extensions. 8. Newer pioneering uses two strategies. a) Product modification. Add a new ingredient. b) Completely overhaul the product. 9. Advertisers cannot rely on existing customers. 10. They need new customers by showing new ways to use their products. C. New Pioneering Stage and Beyond 1. Entering the new pioneering stage is different stages and different markets. a) Long-term customers will perceive the product as in competitive or retentive. b) New customers will perceive it as in pioneering. 2. A product faces new problems and opportunities. 3. Pioneering can be the result of: a) reworking the original product. b) line extension through a new formula or name. 4. Product innovation doesnt always create brand share. 5. Advertising a) strives to help customers understand the product. b) newer competitive stage aims at getting people to buy. c) newer retentive stage relies on existing prestige. 6. Moving through these stages is difficult. a) It requires product innovation or product positioning. D. The Advertising Spiral as a Management Decision Tool 1. A product may try to hold existing customers while seeking new markets with pioneering advertising. 2. Products do not move through the stages at the same speed. 3. Before attempting to create new ideas for advertising a product, the advertiser should use the spiral to answer the following questions: a) In which stage is the product? b) Should we use pioneering advertising to attract new users to this type of product? c) Should we work harder at competitive advertising to obtain a larger share of the existing market? d) What portion of our advertising should be pioneering, what portion competitive? e) Are we simply coasting in the retentive stage? If so, should we be more aggressive? E. Building Strong Brands and Equity 1. Products with recognizable brand names stand for different things in consumers minds. 2. The birth of branding. a) The origin of brands began in the mid-1880s. b) Wholesalers had power over the manufacturers and retailers. c) Manufacturers had to offer deals to get distribution, which squeezed profits. d) Therefore, manufacturers decided to differentiate their products from their competitors. In order to do this they: (1) gave their products names. (2) obtained patents to protect their exclusivity. (3) used advertising to take the news about themselves to customers. 3. Accelerated life cycle a) Competition for shelf space has made marketing fierce.

26

F.

G.

H.

I.

J.

b) Brands lose prominence due to: (1) the company being sold. (2) a different focus. (3) new competitors reducing their market share. 4. A major cause of accelerated death rate is the U.P.C. Consumer Environment 1. Brand environment has changed because consumers have changed. 2. Direct response marketing and the use of database marketing is becoming more important in the consumer environment. 3. Consumers past experiences with a brand is consistently most important in their future choices. 4. Marketers must ask three questions: a) Who buys the brand? b) What do they want from it? c) Why do they keep coming back? 5. Marketers need to be aware of consumers changing needs and purchase behavior changes. Brands and Integrated Communication 1. Brand equity is best strengthened through integrated use of all marketing communication tools. 2. The result is integrated marketing communication. a) All the messages directed to a consumer on the behalf of the brand: media advertising, promotion, public relations, direct response, events, packaging, etc. b) Each message is integrated in order to support other messages. 3. A successful process will build brand equity by communicating the same message to consumers. 4. Integrated direct marketing is the art and science of managing a diverse marketing media as a cohesive whole. 5. Brand equity is the value users think and feel about a brand relative to its competition. Young & Rubicams Brand Asset Valuator 1. This explains the strengths and weaknesses of brands on measures of stature and vitality. 2. Brand vitality is a combination of differentiation and relevance. a) A brand must be distinct, i.e., differentiated. b) Relevant differentiation isnt sufficient, the product must fit consumer needs. 3. Brand stature is based on esteem and familiarity. a) Do people know the brand and understand it? b) Do they like the brand? 4. Brand equity is built with an eye to the fact that there are differences between brand categories. a) People buy different products different ways. b) Their relationships with products vary with product category as well. Brand Equity and Developing Integrated Marketing Communication Plans 1. A strategic plan should precede creating plans for brands. 2. There are four steps to the creation of a creative brief or plan. a) Brand Equity Audit Analysis b) Strategic Options and Recommendations c) Brand Research d) Creative Brief Brand Equity Audit Analysis

27

1. Market context examined for clues and factors that positively or negatively affect brand equity. 2. Example questions: a) What is our market and with whom do we compete? b) What other brands and product categories are there? c) What makes the market tick? d) How is the market structured? e) Is it segmented? How? What segments are we in? f) The text has eight more sample questions. g) These kinds of questions help us to understand the role and status of brands in any given market. 3. Brand equity weaknesses and strengths may be evaluated using a series of indicators, such as the following: a) Brand awareness, top of mind is best. b) Market share, price elasticity, share of voice, and the like. c) Brand sensitivity-the relative importance of brand to other factors involved in the purchase, such as price, pack size, or model. d) Assumed leadership-consumer's perception of leadership of the brand. e) Consistency of the brand's communication over time. f) Image attribute ratings, or ranking attributes. g) Distribution, pricing, product quality, and innovation. h) Brand loyalty-the strength of a brand lies in the proportion of its customers who buy it as a brand rather than just as a product. 4. Consumer attitude descriptions identify and describe the consumer thoughts and feelings that result in the strong or weak bias consumers have toward the brand relative to other brands. 5. Analysis should be carried out from two viewpoints: a) We need to review all the available research to get as close a feeling as possible on how consumers view the brand and how they feel about it. b) We must analyze in depth our brand's and its competitor's communications over a period of time. It is from these communications that most of the consumers' feelings and opinions about the brand are derived. 6. Competitive strategies and tactics are designed to provide a clear summary of the current communication strategies and tactics of our brand and of key competitors. Key questions are: (1) Is the strategy designed to reinforce current brand equity or to change it? (2) Who is the target audience? (3) Are there different target audiences? (4) What are the theme and executional approach? (5) How are the funds being spent (consumer pull versus trade push, advertising, promotions, direct marketing, etc.)? 7. Strategic options and recommendations draw on the conclusion from the brand equity audit to develop a viable recommended plan. The strategic options include: a) Communication objectives: What is the primary goal the message aims to achieve? b) Audience: To whom are we speaking? c) Source of business: Where are customers to come from--brand(s) or product categories? d) Brand positioning and benefits: How are we to position the brand, and what are the benefits that will build brand equity? e) Marketing mix: What is the recommended mix of advertising, public relations, promotion, direct response, and so on?

28

f) Rationale: How does the recommended strategy relate to, and what effect is it expected to have on, brand equity? K. Brand Equity Research 1. This is the proprietary, qualitative research step in the process. Here we need to determine which element(s) of brand equity must be created, altered, or reinforced in order to achieve our recommended strategy, and how far we can stretch each of these components without risking the brand's credibility. 2. This provides a revised list of rational and emotional elements that describe how we want consumers to think and feel about our brand in the future. L. Creative Brief 1. Completes the process by synthesizing it into an action plan for all communications. 2. It is a one-page statement that clearly defines what audience we are talking to; how they think, feel, and behave; what communication is intended to achieve; and the promise that will create a bond (link) between the consumers and the brand. 3. The strategy consists of: a) Key observation: The most important market/consumer factor that dictates the strategy. b) Communication objective: The primary goal the advertising aims to achieve. c) Consumer insight: The consumer "hot button" our communication will trigger. d) Promise: The link between the consumer and the brand; what the brand should stand for in the consumers mind. e) Support: The reason the brand gives the consumer permission to believe. f) Audience: To whom are we speaking? How do they think and feel about our brand? V. Other Examples of Strategic Planning A. Introduction 1. J. Walter Thompson and Total Branding is a program that has made a worldwide effort to shift his company from simply creating advertising to looking at broader marketing issues. B. Thompson T-Plan 1. The planning cycle has five basic questions. a) Where are we now? Brand is examined in the marketplace, consumers minds, and in relation to competitors. b) Where are we there? Study of current position. c) Where could we be? Looking at the product from the consumers perspective with a focus on communication activities. d) How can we get there? Identifying the basic brand idea. e) Are we getting there? Accountability for execution of the plan. 2. The Thompson Total Branding provides proprietary tools to evaluate and learn from product performance. C. Avrett Free Ginsberg Planning Cycle 1. A seven-step brand planning process using the discipline of Account Planning at each stage. a) Brand/Market Status. Evaluates brand location in the market and does a SWOT. b) Brand Mission. Setting of brand goals, where is it going? c) Strategic Development. Exploration of options and strategies for accomplishing the mission. d) Strategy. The actual strategy for an integrated marketing communication program. e) Creative Exploration. Develop a range of executions to maximize relevance, distinctiveness, and persuasiveness.

29

f) Brand Valuation. Tracking of marketplace performance. g) Brand Vision. Building brand equity through communications. D. What Great Brands Do 1. Scott Bedburys brand building principles. A great brand: a) is in it for the long haul. b) can be anything. c) knows itself. d) invents or reinvents an entire category. e) taps into emotions. f) is a story thats never completely told. g) has design consistency. h) is relevant. VI. Summary A. Product Life Cycle 1. Products pass through numerous stages known as the product life cycle. 2. Advertising plays a different role in each stage. 3. Pioneering stage is where a product stays until consumers realize they need it. 4. Competitive stage uses advertising to differentiate the product. 5. Retentive stage calls for reminder advertising. 6. A products age is irrelevant to the stages. It is consumer attitude that determines when a product moves from one stage to another. B. Branding 1. Brands emerged in the 1880s. 2. Brands are manufacturers most valuable assets. 3. Communication should reinforce branding. 4. Advertising agencies have their own unique systems of strategic planning for branding.

CHAPTER QUESTIONS
1. What is the pioneering stage? Suggested answer The pioneering stage is the stage where need for such a product has not been recognized and must be established, or in which the need has been established but the success of a commodity in filling those requirements has yet to be established. 2. What determines the stage of a product? Suggested answer A products age is irrelevant to the stages. It is consumer attitude that determines when a product moves from one stage to another. 3. What is the essence of the advertising message in each stage of the spiral? Suggested answer The purpose of advertising in the pioneering stage of a product's life cycle is to educate consumers about the new product or service. In the competitive stage the purpose of advertising is to communicate the product's position, differentiate the product to the consumer, and focus on differentials. For the retentive stage, advertising reminds the consumer that the brand exists. The goal is to keep the brand name in front of the customer. 4. What is brand equity? Suggested answer The value of how such people as consumers, distributors, and salespeople think and feel about a brand relative to its competition over a period of time.

30

5. What are the elements of the creative brief? Suggested answer It is a one-page statement that clearly defines what audience we are talking to; how they think, feel, and behave; what communication is intended to achieve; and the promise that will create a bond (link) between the consumers and the brand. The strategy consists of: y Key observation: The most important market/consumer factor that dictates the strategy. y Communication objective: The primary goal the advertising aims to achieve. y Consumer insight: The consumer "hot button" our communication will trigger. y Promise: The link between the consumer and the brand; what the brand should stand for in the consumers mind. y Support: The reason the brand gives the consumer permission to believe. y Audience: To whom are we speaking? How do they think and feel about our brand? 6. What are the key elements of Avrett Free Ginsbergs Planning Cycle? Suggested answer y Brand/Market Status. Evaluates brand location in the market and does a SWOT. y Brand Mission. Setting of brand goals, where is it going? y Strategic Development. Exploration of options and strategies for accomplishing the mission. y Strategy. The actual strategy for an integrated marketing communication program. y Creative Exploration. Develop a range of executions to maximize relevance, distinctiveness, and persuasiveness. y Brand Valuation. Tracking of marketplace performance. y Brand Vision. Building brand equity through communications.

CLASS PROJECTS AND EXERCISES


1. Choose two ads that are from the same product category and compare their competitive approaches. 2. Look for a series of marketing communications-print ads, press releases, broadcast ads, etc.- for a single product or a product category and analyze their effectiveness in building and maintaining brand equity. 3. Find ads for products that appear to be in the pioneering stage, competitive stage, and retentive stage. Be prepared to explain why you think the product is in the specific stage. 4. Using Scott Bedburys brand building principles, choose a favorite product, collect sufficient marketing communications and history on it to apply Bedburys principles to the product. Evaluate how many of Bedburys principles are being followed or violated. 5. From library research show how an established national brand such as Coca-Cola, Compaq Computer, Microsoft, General Motors, etc., has changed its advertising strategy and message as it has undergone changes in the advertising spiral. 6. Create a new product. Develop a strategic plan for building brand equity. Use one of the evaluation tools provided -Thompson, Avrett, etc.- to build a plan for developing and maintaining this products brand image and equity. 7. No Internet assignment or exercise for this chapter.

31

Potrebbero piacerti anche