Riassunto esame Marketing, prof. Brioschi, libro consigliato Marketing Communications: A European Perspectivel, De Pelsmacker
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3) Branded identity. Each division or even product line has its own identity and style, and the various
product lines of the company do not seem to have anything to do with each other.
Obviously, the choice of a specific type of corporate identity will depend on the strategic priorities defined,
and will have a great impact on brand strategy and marketing and corporate communications.
Corporate communications have to be based on, and be consistent with, the important elements of the
corporate identity of the company.
Corporate symbolism or corporate design is an integral part of the corporate identity, or at least of the way
in which it is made visible.
The company name, logo and slogan are vital elements of the house style of a company and important
elements of corporate design. They are the visualization of the corporate identity. Lodos and slogans
should have a number of characteristics:
- A logo should be a long-term visualization of the company’s strategy. One logo and one slogan
should be used for the whole company. The slogan should be a perfect summary of the company’s
identity
- Logos and slogans have to be distinctive. They are tools of differentiation between the company
and its competitors
- Slogans should be relevant for the consumer
- The logo and the slogan should be timeless, but modifiable
- Slogans, but especially logos, should be usable in all circumstances and in all communications
instruments and tools.
Besides communications and corporate design, corporate behavior is also an important factor in making
the corporate identity visible.
Corporate image and corporate reputation
The corporate image is the stakeholder’s perception of the way an organization presents itself. The
corporate identity resides in the organization, but the corporate image resides in the heads of the
stakeholders. The corporate image is not always consistent with the desired corporate identity; in other
words, an image gap may exist.
Corporate reputation is the evaluation or esteem in which an organisation’s image is held. While corporate
image can be quite transient and short-term in nature, corporate reputation is more firmly embedded in
the mind of an individual.
Corporate identity or corporate culture and corporate strategy are important determining factors of the
corporate image, as well as marketing and external corporate communications. But the company’s
employees also play an important role. Their communications with external target groups and their
behavior in their contacts with these groups will to a large extent determine how the company is perceived.
Therefore, internal communications are very important to corporate identity-building and corporate
communications. Misfits between the perception of the employees and the desired corporate identity may
therefore lead to an undesirable image gap. Besides their own staff, other intermediate audiences, such as
the distribution cheannel or advertising agencies, may have an influence on the corporate image. Finally,
reality is an important factor: product experience is a powerful reinforce or punisher in the development of
a corporate image.
Image and attitude (that is almost the same thing) are composed of three dimensions:
1) Beliefs, the cognitive dimension of the attitude. People may hold certain beliefs about a company.
2) Emotional feelings, the affective component of the attitude. People may dislike a company for its
social and environmental policies.
3) Behavioural intentions. Target group members may be inclined to buy products of a company.
Corporate communications should focus on all three components of attitude formarion. 5
Images are not good or bad as such. The corporate image is not monolithic, but multidimensional. Image
attributes are not perceived as good or bad, but as better or worse than some benchmark.
What is the value of a positive corporate image?
It gives the company authority and it is the basis for success and continuity
Consumers buy products, often not just because of their intrinsic quality, but also because of the
reputation and the value they attach to the company marketing the products
When there are limited information for buying decisions, the company’s value counts a lot
It supports the company in attracting more easily the people that are crucial for its success.
FACTORS LEADING TO INTEGRATED MARKETING AND CORPORATE COMUNICATIONS
A numver of important changes and trends have created the need and urge to integrate marketing and
corporate communications and to facilitate them.
Non traditional fotms of marketing communications:
Branded content:
Consumers react increasingly cynically to traditional advertising, and pay less and less attention to it.
Therefore, advertisers try to “hide” commercial messages in media content, like films, shows but also
videogame.
Buzz marketing:
Word-of-mouth of other people. Recently more common people than celebrities. Es. In the blogs.
Stealth advertising:
It is a marketing activity in which the commercial content is hidden. For instance, people are paid to go to
trendy bars and to promote a new drink by offering it to other visitors, without saying that they work for
the company that launched it.
Audience and markets tend to become more and more fragmented, making mass media less effective and
increasing the need for more specialized and fragmented media.
One of the trends in marketing today is the increasing importance of building customer loyalty instead of
attracting and seducing new customers.
LEVELS OF INTEGRATION
Companies cannot be expected to integrate their communications efforts fully overnight. Several stages or
levels of integration can be distinguished: awareness, image integration, functional integration, co-
ordinated integration, consumer-based integration, stakeholder-based integration, relationship
management integration.
BARRIERS TO INTEGRATED COMMUNICATIONS
IMC are far from a reality in most companies. A number of strong barriers prevent IMC being implemented
quickly and efficiently: separation (the various instruments of the communications mix are managed by
separate individuals or departments), different organizational entities (the various instruments of the
marketing mix have traditionally been managed by different organizational entities as discrete activities –
structures may or may not be changed easily), turf battles and ego problems (the parochialism of managers
and their fear of budget cutbacks in their areas of control, and of reductions in authority and power, lead to
defending the status quo), lack of internal communication, perceived complexity of planning and co-
ordination, functional specialization of external communications agencies.
CLIENT-AGENCY RELATIONS IN IMC
Boooooooooooooooooooooooooooooooooh. 6
THE INTEGRATED COMMUNICATIONS PLAN
The differenti communications tools will be used in an IMC mix, according to a communications plan that
will have to be integrated into the strategic marketing plan. The essential steps of comm plan are:
- Situation analysis and marketing objectives: why?
- Target groups: who?
- Communications objectives: what?
- Tools, techniques, channels and media: how and where?
- Budgets: how much?
- Measurement of results: how effective?
See summary page 39.
CAP.2 – BRANDING
INTRODUCTION
The value of brands in modern marketing strategy, and the important role of marketing communications in
building and maintaining value, are recognized.
BRANDS
The American Marketing Association defines a brand as “a name, term, sign, symbol or design, or a
combination of these, intended to identify the goods or services of one seller or group of sellers, and to
differentiate them from those of a competitor”. Defined like this, a brand is a set of verbal and/or visual
cues, and as such it is a part of a product’s tangible features. Brand name and brand mark.
However, Keller goes beyond the pure constituting brand elements and defines a brand ad a product that
adds either rational and tangible dimensions (related to product performance) or symbolic, emotional and
intangible dimensions (related to what the brand represents) that differentiate it from other products
designed to fulfil the same need.
Brand names should be memorable, meaningful, likable, adaptable, transferable and protectable.
Excellent examples are Dell, Bic and Nokia. To enhance brand recognition and avoid brand confusion, a
brand name should also be distinctive and be able to differentiate the product from the competition.
Besides being memorable, it is an advantage that brand elements are meaningful (es. Mr Clean). Brand
elements should also be tested on their visual and/or verbal likability or, in other words, on their aesthetic
appeal. Over time, brand elements may lose their appeal, calling for an update. As a consequence, the
often have to be adapted. Nike is an example of brand that updated his logo/character over time.
Preferably a brand is transferable both across product categories and geographic boundaries. The more
specific the brand name, the more difficult it may be to extend the brand to other product categories. To
build a successful global brand, the brand name should be easy to pronounce in different language. Global
brand name also have to be culture or language neutral in the sense that they do not evoke strange or
undesirable connotations in foreign languages. Finally, a brand should be available and easy to protect
through registration. Therefore, no generic words should be used.
Three categories of brands can be distinguished:
1. Manufacturer brands are developed by producers. They are supported by integrated marketing,
including pricing, distribution and communications. Ex BMW.
2. Own-label brands or private/store/dealer brands are developed and owned by wholesalers or
retailers. There is no link between the manufacturer and the brand. Retailers develop own-label
brands to gain more power. It enables them to enhance their store image, generate higher margins
and be more independent of the manufacturers of premium brands. Originally, they only competed
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on the basis of a price benefit compared with manufacturer brands. Now, however, most European
retailers have adopted sub-branding strategies. In many product categories, own-label brands pose
a serious threat to well-established manufacturer brands. Some retailers are using their own-label
brands as the key element in their marketing strategy, and support their own brand with limited
number of well-established manufacturer brands to optimize their store image and consumer
traffic. Research indicates that a country’s private label share goes up during economic downturns
and shrinks when the economy is flourishing.
Brand manufacturer have to take the competition of private labels seriously. Six strategic options
can be chosen: (1) increase distance from private labels through innovation, (2) increase distance
from private labels by investing in brand equity (offer “more value for money” by stressing brand
image, changing packing etc.), (3) reduce the price gap, (4) introduce a value-flanker as a me-too
strategy, (5) wait and do nothing, (6) produce (premium) private labels. Producing private labels
may also be a viable option, especially in product categories with high private labels market chare
or many possibilities for technological differentiation. Producing private label for retailers has the
advantage that it strengthens the ties with the retailers. Furthermore, it can also be very profitable
for the company if it has excess capacity.
3. Generic brands indicate the product category. In fact, the concept is a contradiction in terms.
Generics are in fact brandless products. They are usually sold at the lowest price.
SUCCESSFUL BRANDS
Giving a product a brand name does not always guarantee success. Successful brands have to meet a
number of conditions:
Successful brands are differentiated. Consumers clearly perceive them as having unique benefits
and being different from the competition
Top brands are positioned on quality and added value. Superior product quality is a prerequisite for
successful branding
Leading brands continually innovate to answer changing consumer tastes and to keep ahead of the
competition
A leading position can only be sustained by having full support and complete commitment of both
management and employees. Remember that every brand contact matters: how a call to a
helpdesk is answered, what happens when advice is asked or when complaint is raised etc.
Successful brands are not built overnight. Long-term communications, and more particularly
advertising support, is a key factor in the development of successful brands
BRAND STAREGIES
A brand strategy starts with the decision whether or not to put a brand name on a product. It can be
argued that, for some product categories, branding is not essential and may even be useless. This is
especially true for undifferentiated and homogeneous products. The case for industrial products such as
steel and raw materials.
If decided to put a name: first of all, a product can be given one brand name, or several (mostly two)brands
can be used to position it. In the case of one brand name, four different strategies can be followed. Sticking
the existing product categories and using the same brand name for all new product introductions in a
product category is called line extension. Ex Kellogg’s. line extension strategies have a number of obvious
advantages. The favourable image of the brand is carried over to the new products that are marketed with
the same brand name, and the past communications investments in the brand are more efficiently used to
market more products. However, a line extension also has a number of disadvantages, the most important
being that the original brand loses its meaning and clear positioning. 8
Brand extension, or brand stretching, occurs when an existing brand is used to market products in a
different product category. Ex. Hearly Davison footwear. The basic rationale behind brand extensions is the
same as the one behind line extensions, ex. Limiting the risk of failure of the new product introductions by
capitalizing upon the image and reputation of a successful existing brand, and at the same time trying to
save the huge advertising expenses of launching a totally new brand. However, the risks of brand
extensions are great. First of all, if the brand image does not fit the new product or the new market
segment well, the new introduction may not be successful. Also, there is the risk of brand dilution. This
occurs when the brand name is used for so many different product categories that the brand personality
becomes fuzzy and the brand’s value deteriorates.
A special case of extension strategies is corporate branding. In this case, the name of the company is used
for all the company’s products. This strategy is often used by service companies for which the reputation
and the endorsement of a reliable company is very important. Corporate branding is very similar to the
other extension strategies and therefore have the same advantages and disadvantages. One additional
disadvantage is that a corporate branding strategy is relatively inflexible.
A strategy in which different names are used for products of product ranges in the same product category
is called multi-branding. This strategy permits finer segmentation and positioning. The obvious
disadvantage of this strategy is that individual brands cannot benefit from the leveraging effect of existing
brands. Companies using the multi-branding strategy will also be inclined to use new brands when they
introduce a product in a new product category.
When a company introduces a product abroad, it can also choose between an extension or a “new brand”
strategy. If the existing brand has the required global characteristics, is already known in the new country,
or if the company is committed to building global brands, a global strategy will be used. Global brands can
range from being globally consistent to locally adapted. Gillette is consistent around the world because
men’s shaving needs are world-wide more or less the same. McDonald’s is locally adapted: it does use the
same logo and colours, but adapts its service and products to fit local needs. Local brands often have a long
tradition in specific countries and are often market leaders in their own country. Local brands benefit,
amongst other things, from (1) the deep-rooted and powerful bond that has been established with local
consumers (ex. Consumers often buy the brand their parents bought), (2) being perfectly adapted to
unique local tastes or needs, (3) local operational and logistical advantages and (4) strong community ties.
These local brands are very attractive for global companies, and more and more global companies extend
their brand portfolio with local brands.
Companies can also opt for dual branding strategies. Three categories of dual strategies can be
distinguished. In an endorsement strategy two brand names of the same company are used, one of them
serving as a quality label or endorsement. In fact, this strategy can be situated somewhere between an
extension and a multi-brand strategy, and combines the advantages of bothl although the disadvantages of
the two combined strategies should be taken in account.
With ingredient branding, a basic ingredient of the product is mentioned next to the actual product’s name.
ex. Tetrapak. The advantages are that both brands can benefit from the strategy effects of combining the
two strong brands. Furthermore, communications costs can be shared. A prerequisite for ingredient
branding is that the ingredient has to be essential, differentiating and of consistently high quality.
Finally, in co-branding, two or more brands are simultaneously presented. Co-branding can range from
advertising multiple brands in one ad (ex. Ferrari and Shell) to co-developing a product (ex. Braun and Oral
B with electric tooth-brush). Forming an alliance may be driven, for example, by the desire to leverage
positive brand equity of the partner brand, to share advertising or development costs or to gain access to
new markets or distribution channels. Obviously, the combination should result in a perfect perceptual fit,
from a product or image point of view. 9
BRAND PORTOFOLIO
A brand portfolio can be defined as the set of all brands and brand lines that a company possesses. The
rationale behind every brand portfolio should be threefold. First of all, a company should try to maximize
market coverage in a sense that different market segments can be serviced. Secondly, brand overlap has to
be minimized in such a way that brands are not competing among themselves. Thirdly, every brand in the
brand portfolio should have an added value for the company.
Brands in a portfolio usually serve different functions and can be classified ad bastions, flanker, fighter and
prestige brands. Bastions provide most profit for the company, often follow a premium price strategy, are
characterized by a high level of psycho-social meaning and are generally considered as high-performance
brands. In order to protect bastion brands, flanker, fighter or prestige brands can be introduced. A flanker
brand follows a similar price-profit ratio aa the bastion brand, is also characterized by a high psycho-social
meaning and perceived performance level, but usually appeals to a different, smaller market segment
(niche). Fighter brands are sold at a lower price, situated between the price of the bastion and discount
brands. Their quality perception is usually lower that that of the bastion and flanker brands. Prestige brands
are high-quality, luxurious brands targeted at a smaller segment, looking for status and high psycho-social
meaning. Volkswagen – Seat.
BRAND EQUITY
In the previous sections it has been argued that brands are valuable assets for marketing. Brand equity is a
concept that is used to indicate the value of a brand. It is the valued added to a product by virtue of its
brand name. in fact, a distinction should be made between consumer brand equity and financial brand
equity. The latter refers to the financial value of the brand for the company, the former to the underlying
customer – and marketing - related components of brand equity. In practice, the concept of brand equity is
used to describe both. Economically speaking, the value of a brand is the sum of discounted future income
streams attributable to the brand.
Financial brand equity
The financial value of the brand portfolio becomes of great importance. Some say that the brand portfolio
is the most valuable asset of a company. How can the financial brand value be calculated?
- A financial analysis to identify business earnings
- A market analysis to determine what proportion of those earnings are attributable to the brand
- A brand analysis, to find out how strong the brand is in the perception of consumers
- A legal analysis, to establish how well a brand is legally protected.
Another important aspect of the brand valuation system is the brand strength score. This is based on seven
criteria with different weights: leadership (25%), internationality (25%), stability (15%), market (10%), trend
(10%), support (10%) and protection (5%).
Consumer brand equity
For a marketer, consumer brand equity in more important than financial brand value. This type of brand
equity can be measured in different ways, all of them trying to capture the extent to which the brand gives
the product extra marketing strength. Each of the brand equity factors is determined and influenced by
marketing communications strategy, and leads to a number of benefits. A well known brand is more
valuable than an unknown brand. Consumers have more faith in a well-known brand.
Components of consumer brand equity: awareness (deep and board), performance/perceived quality
(attributes and benefits, price and style, quality and superiority), imagery/feelings (user image, isage
imagery, brand personality, brand feelings), brand loyalty (price premium, satisfaction/loyalty, market
share) and other assets (distribution, shelf space, patents and trademarks). 10
A distinction can be made between deep and board brand awareness. Deep brand awareness means that
the brand comes to mind easily. Board brand awareness refers to the fact that the brand comes to mind
often, in different usage situations. Deep and board awareness are necessary to penetrate the
consideration set of consumers. Brand awareness is more than just being aware of the fact that the brand
exists. It also includes knowing what the product stands for and its attributes and characteristics.
Performance refers to the extent to which the product meets the customer’s utilitarian, aesthetic and
economic needs and wants. The utilitarian needs are largely grasped by the attributes and benefits the
product provides. A nice style and design can be important to fulfil the consumer’s aesthetic needs. Price in
important because consumers may infer from the price whether the product is cheap or expensive, and
whether they can trust it or not. Perceived quality is the consumer’s subjective judgement about a
product’s overall quality, its excellence and superiority relative to alternatives.
Brand imagery is related to how well the brand fulfils consumers’ psychological and social needs. A first
intangible association that consumers can make with a brand is user image. For example, the stereotypical
user of Oil of Olay is seen ad “a pretty, down-to-earth, solid, female citizen. A second type of intangible
association pertains to usage imagery, that indicates which usage situations consumers associate with a
brand or product. Brand personality can be defined as the set of human personality traits that are both
applicable to and relevant for brands.
Finally, brand feelings or customers’ emotional responses to the brand are an important element of brand
equity. For example, warmth, fun, social approval and security are considered as important types of brand-
building feelings. These feelings may have become associated to the brand by means of its marketing
communications program or the experiences the consumer had with the brand. They may also stem from
the attributes of benefits consumers associate with the brand.
Other assets also determine brand equity, such as the number of the stores carrying the brand, the
percentage of people that have easy access to the brand, shelf space patents and trademarks, quality of
staff, labels, etc. The first four factors of brand equity do not imply any real behavior on the part of the
consumer. In fact, the real company asset is brand loyalty, not the brand itself. Evidently, a strong brand
implies that as many customers as possible are satisfied, committed buyers. Not only will committed buyers
repurchase the brand, they will also actively promote your brand to others and function as real
ambassadors. Also, marketers and consumers can jointly build brand communities where brand
experiences can be built and/or shared. A brand community is a “specialized, non-geographically bound
community, based on a structured set of social relationships among users of a brand”.
BENEFITS OF BRANDING
Strong brands have a number of benefits for the company, the retailer and the consumer. Strong brands
help the consumer to locate and identify products and evaluate their quality. Branding makes shopping
more efficient in that it reduces the amount of decision-making time required and the perceived risk of
purchase, as a result of the fact that a brand promises a constant level of quality. Furthermore, the
consumer derives a psychological reward, since some brands, like Rolex or Lexus, are regarded as status
symbols. Retailers also benefit from store brands because they improve the image of the store, and as a
result attract customers. Last but not least, manufacturers benefit greatly from high-quality brands. See
scheme on pace 71 or better if it is on slides.
MARKETING COMMUNICATIONS AND BRAND EQUITY
Marketing communications are the voice of a brand. In general, the role of marketing communications is to
inform, persuade and remind consumers of the brand essence, to engage consumers in a dialogue and to
build relationship, or even a brand community.
Taking a long-term perspective of brand management, managerial efforts can be classified in two types of
activities: brand-building and brand-harming activities. High advertising spending and investing in corporate
11
social responsibility initiatives are examples of brand-building activities. Frequent use of price promotions,
on the other hand, dilutes the brand in the long run and can therefore be classified as brand-harming
activity.
Marketing communications are crucial contributors to brand equity in several ways. A first brand in brand-
building is creating deep and broad brand awareness. Deep awareness means that the brand is strongly
linked with the product category and enjoys high top in mind awareness. Frequent advertising using
slogans, base-lines or jingles that make reference to the product category help to build top of mind
awareness. Broad awareness refers to the fact that consumers easily think of the brand in different
situations. Therefore, focusing on brand meaning or brand image comes in only after brand awareness has
been established. Also for building brand image, advertising is an excellent tool. Brand image
communications can focus on product performance or on imagery (who is the typical user, when and
where can the product be used etc.).
To form a rich network of associations around a brand, it is advisable to alternate performance and imagery
communications.
Also, when a brand has been on the market for a long time, investing in communications that strengthen
deep and board awareness, and that reinforce brand performance and imagery remains necessary.
Although advertising is the key tool of marketing communications when it comes to building and sustaining
strong brands, it is not the only tool that can or should be used. In the spirit of integrated marketing
communications, different communication tools should be mixed and matched to reach an optimal effect.
See summary page 75.
CAP.5 – OBJECTIVES
INTRODUCTION
Once the target group pf the marketing communications plan is well defined, it is crucial to the planning
process to set the main communications objectives. These goals will determine the choice of the right
communications and media mix and will consequently influence message and strategy development,
budgeting and effectiveness research issues. Formulating marketing communications objectives is also
important in judging the effectiveness of a campaign. If I don’t have goals, what do I judge? A second type
of communications objective is related to corporate communications that are primarily aimed at building
and maintaining goodwill for the company as a whole.
MARKETING COMMUNICATIONS OBJECTIVES
Marketing communications objectives can be broadly divided into three categories: reach goals, process
(elaborare, eseguire?) goals, effectiveness (efficacia) goals. The reach goal of communicating is to reach the
target groups in an effective and efficient way. For this purpose a good segmentation and audience
definition is needed. As well as insights into the media behavior of the desired segments. Process goals are
conditions which should be established before any communication can be effective. All communications
should capture the attention of the target group, then appeal or be appreciated and last but not least be
processed (and remembered). The third type of communications goals are the effectiveness goals. They
are, of course, the most important ones, since reach goals only assure sufficient exposure, and process
goals only ensure enough processing of the message to make effectiveness goals possible.
Since the DAGMAR (Defining Advertising Goals for Measured Advertising Results) was published,
communications goals have emphasized the current stage of the buyer or potential buyer in the purchase
process rather than just immediate sales effects. This insight also helped marketers to use measurable
goals since communications effects on sales were all but impossible to isolate due to the interaction effects
with other marketing mix variables. The communications effects or goals that are distinguished in the 12
DAGMAR model are the following: category need, brand awareness, brand knowledge/comprehension,
brand attitude, brand-purchase intention, brand facilitation, purchase, satisfaction, brand loyalty. The
DOGMAR model is essentially a hierarchy-of-effects model.
When a marketer is defining his or her communications strategies he or she will have to select the most
appropriate communications effect or goals from the list above. Every promotional campaign should be
organized with one of these communications objectives in mind. The choice of the right goals depend on
the problems that have arisen in the preliminary situation analysis of the market, brand positions,
competition, opportunities and threats.
A good set of communications goals should have a number of characteristics. It should:
- Fit in with overall company and marketing goals
- Be relevant to the identified problems and specific to cope with threats or to build on opportunities
in the market
- Be targeted to different target audiences; this implies that different target groups could need
different communications objectives
- Be quantified in order to be measurable
- Be comprehensive and motivating to all involved persons but at the same time be realistic and
achievable
- Be timed to enable specific scheduling of the campaign
- Be translated into sub-goals when necessary.
The communications objectives are guidelines for everyone who is involved in campaign development and
realization. As communications objectives are also the criteria against which a campaign’s success (or
failure) is evaluated, it is important that they are well defined and quantified.
Developing category wants
The first basic condition to be fulfilled (soddisfatto) by a brand is that it should fit within category needs
and wants. Category want or needs can be defined as the existence of one or more buying motive and the
perception of the product category as a good means of meeting these motives. Of course, although
category need is always necessary before other brand-related objectives work, it is clear that in most cases
it can be considered as already present and thus can be ignored (ex. Food, detergents, insurances and cars).
However, in product categories that are infrequently purchased or infrequently used, such as pain killers,
communicating category needs to remind buyers of their present but forgotten need may be useful. Using
category need as a primary communications objective is a must for innovations. Consumers should first
understand which need is satisfied by an innovation and the difference between the “new category” and
known categories should be stressed.
Brand awareness: RECOGNITION AND RECALL
Brand awareness is the association of some physical characteristics such as a brand name, logo, package,
style etc. with a category need. There are two ways brand awareness can be defined. For example, if
people think of a soft drink, they may spontaneously think of either Coca-cola, Fanta and Lipton. This is
their top of mind brand awareness. In an unaided contest, people may recall several brands spontaneously.
This is brand recall or unaided spontaneously awareness. But it is also possible that people recognize a
brand by a package, colour, logo etc. This is brand recognition or aided awareness. Aided brand awareness
is of course less difficult to achieve. Less repetition and thus smaller investments are needed to establish it
than brand name recall.
The question of which awareness goal should be aspired to by a marketer depends on the situational
circumstances in which the product or brand is brought. If the purchase decision is made at another time
and location than the point of sales (at the office, at home), or when a buyer has to ask explicitly for a
certain product or service (drugstore or pharmacist) name recall is needed. This is also true when a 13
shopping list with preferred brand names for every category is made prior to going to a shop, or when
somebody is making purchases by phone. When the purchase decision is made in the store, and the buyer
can use visual cues such as package, displays, colours, and logos, brand recognition is more important than
brand recall.
In some cases a marketer should try to attain both brand recall and recognition. A consumer then recalls a
brand at home and will search for it at a supermarket or store. Sometimes this dual brand awareness
objective is required, since for many product categories consumers limit their search activity based on
loyalty to a limited set of brands. Every communications activity should take brand awareness into
account. If two brands are equally valued, the brand with the highest awareness will be purchased more
often.
Brand knowledge
Brand knowledge and comprehension mean that target consumers are aware of the most essential brand
characteristics, features and benefits. Essentially, consumers should be able to recall the brand’s
positioning. This knowledge may be based on very objective information, but also on brand image and
lifestyle positioning.
Brand attitude
If consumers are equally aware of a number of brands in a certain product category, they will base their
brand choice on an evaluation of the different brands. The result of this evaluation is called brand attitude.
Brand attitude is the perceived value of a brand to a consumer. Because a brand is stronger (and thus has
more loyal customers) when the differentiation with another brand is bigger, brand attitude is an important
communication objective. In marketing practive there’s no such thing as a permanently very favorable
brands attitude because attitudes are liable tho changes ad a consequence of dynamic markets and
competition power.
Purchase intention
The intention of the buyer to purchase the brand or the product or take other buying-related actions (going
to the store, asking for more information) can also be enhanced (aumentata). For low involvement buying
situations purchase intention should not be stressed in communications. In high involvement situations,
advertising and sales promotion can stimulate the consumer.
Purchase facilitation
Purchase facilitation is all about assuring buyers that there are no barriers hindering product or brand
purchase. These barriers could be other elements of the marketing mix, such as a price, product and place
(distribution). Sometimes availability or price is a problem preventing consumers from buying a product.
Communications in this case should minimize the perceived problems. For example, if a certain brand is not
widely available in all stores, a list of approved dealers might help the consumers.
Satisfaction
When a consumer buys a product or service, he or she has certain expectations about the purchase. When
the product or service lives up to the required and desired benefits or surpasses the expectations, the
consumer will be satisfied and thus inclined to choose the same brand whenever he or she buys the
product again. We must also remember that clients are advocates of the brand and products they buy
(word-of-mouth communications).
Moreover, it is important to reassure consumers about their choice. Cognitive dissonance, ex the fact that –
due to a choice situation – buyers start to have doubts about that choice, should be avoided to enhance
brand loyalty.
Brand loyalty
Brand loyalty is defined as the mental commitment or relation between a consumer and a brand, but there
are different types of brand loyalty. Repeat purchase is not the same as brand loyalty. The former is often
14
the result of habit or routine buying rather than of brand preference of brand loyalty. There is not
commitment, it is just routine.
Brand loyalty is not a characteristic of a brand but of a product category. Brands with a higher market share
in that category have a higher “loyalty” because of their higher penetration rate and not necessarily
because the emotional bond with the customer is better.
Of course, not all communications objectives should be present in a promotional plan or campaign. A
marketer should choose which of the above goals is most appropriate in the market and communications
situation.
The DAGMAR model has the merit that, instead of sales goals which are hard to correlate with
communications expenditures, other quantifiable measures for effectiveness, such as awareness and image
ratings, are introduced. These other measures are assumed to be intermediate effects, and thus indicator
for future sales.
STAGES IN THE PRODUCT LIFE-CYCLE AND MARKETING COMMUNICATIONS OBJECTIVES
One of the more important factors in choosing objectives is the phase of the life-cycle of a brand or product
Introduction
A company that is marketing a completely new product will have to develop the market. Consumers will
have to learn what the new product is about: which needs will be fulfilled by the product and what
differences are compared to the products the consumers were used to before the innovation or launch of
the new product or brand. The major communications objectives in this market situation will be creating
category need (explaining which needs are better fulfilled with the innovation), brand awareness and brand
knowledge.
More introductions are new brand launches rather than real product innovations. Evidently, in this case it is
not necessary to communicate the central functional product features as consumers are aware of them
from their experience with other brands. Goals are to create brand awareness and support psycho-social
brand image connotations. This is done by associating a brand with a certain projected lifestyle.
A study of what kinds of communications stimulate sales of new products came up with four factors. It
should be clearly communicated that it is a new product and is thus different from other products. This
difference should be specially linked to the category such as the refreshing soft drink or the strongest mint.
Third, differences in characteristics are not enough, they should be translated into real benefits for the
consumer and communicated in that way. The last important factor is the support given to that beneficial
point of difference. Typical endorsements are demonstrations, scientific evidence, celebrity endorsement,
testimonials of experts or “normal” users.
Growth
Communications strategies in this stage of the product life-cycle will be aimed at defending the brand’s
position against possible competitive attacks. Marketers will have to create brand preference by
emphasizing the right product features and benefits to differentiate the brand from competitors and
position it as unique.
Maturity
A brand in the mature stage of its life-cycle has to cope with strong competition on the market that is
scarcely growing. Communications strategies will focus on increasing the brand loyalty of consumers. There
are six possible communications objectives in this particular product life-cycle stage:
- High spontaneous brand awareness, top-of-mind awareness
- Claim a clear and unique brand benefit, a characteristic on which the brand is better than
competing brands
- If there are none or only small product differences, stressing a lower price might be a good strategy
- Get the attention by offering small product innovations 15
- Reinforce the psycho-social meaning for product categories such as cigarettes beer and coffee
- Communications strategies could also be more defensive in this stage of the product life cycle.
Current customers should be reassured of their choice and their positive experience and
satisfaction of the brand
Decline
When manufacturers are confronted with declining products or brands and decide to milk or harvest the
brand, they will probably turn to sales promotions such as prizes and lotteries. If they decide to renew the
life of the declining product or brand (and believe in life-cycle stretching), they can use the following
strategies:
Communicate an important product adaptation or change
Draw attention to new applications or moments to use (ex. Beer for cooking)
Increase the frequency of use
Attract new target groups (ex. Bacardi for teenagers)
CONSUMER CHOICE SITUATIONS AND MARKETING COMMUNICATIONS OBJECTIVES
The effectiveness of communications goals may be determined not only by the product or brand life-cycle,
but also by the consumer choice situation. Six important variables affecting the consumer choice situation.
(1) this is determined by the choice process a consumer follows. This situational characteristic is, for
instance, different for high versus low involvement products. (2) consumer characteristics are, for instance,
experiences, knowledge and socio-economic characteristics. (3) consumer-product relationship have to do
with involvement form low to extremely high, and routine purchases versus intensively considered
purchase. (4) the speed, frequency and modalities of choice, form often and superficial to once in a while
and attractive, are elements of the choice process. (5) characteristics of the outlet or point of purchase
(shop) are important, as well as advice involved with purchase: is there any kind of personal advice (ex.
From salespersons) involved with the purchase process. (6) finally, product characteristics, such ad articles
bought daily, known brands or speciality goods, can have an impact. Based on these six groups pf variables,
a number of frequently occurring choice situations as well as their impact on the communications goal-
setting can be described.
Standard mass products – are typically low involvement situations in which mass communications
focus on building brand awareness and brand knowledge. Generating trial and routine repeat
purchases is also important
Standard services – ex. Restaurants. Building brand awareness and stimulating trial through price
cuts and other actions are often used
Mail order products – the awareness of the company is important, but stimulating catalogue is the
first goal. Sales depend on the quality of the catalogue
Impulse products – there are products that seduce buyers into an impulse purchase. Consumers
need not be convinced. After creating brand awareness, creating confrontations (incontri) is the
most essential communications tool
Quality products – are bought for their quality, for aesthetic reasons and because they symbolize a
certain lifestyle. As customers are more involved with this kind of product, the marketer should
focus on creating and supporting brand awareness
Quality services – many people buy a service after being advised by friends or relations. For
retention, after-sales communications, such ad direct marketing, are important
International luxury products – initially, word-of-mouth communications are important, and
generating traffic in the special stores is crucial. Later, direct marketing becomes important 16
Special niche products – special interest magazines and trade magazines offer an efficient way of
creating brand awareness. Direct, personal contact is also very important
Showrooms products – building brand awareness and reputation is the first step; subsequently,
invitations to the showroom are made. The sales team will then have the major part in the
communications process, persuading visitors to buy the products
Products with new techniques – introduce the new product lines and their propositions to interests
people and attract them to the retail outlets
Investment products – like the house. Word-of-mouth communications and personal contacts and
selling are far more important than mass communications
Unsought products – ex insurances. The first objective is to explain the use of the products, to
change the negative perceptions of consumers and to create confidence.
CORPORATE COMMUNICATIONS OBJECTIVES
Like all other marketing plans, the corporate communications plan has to be embedded in a global industry
analysis on the basis of which strategic priorities such ad the positioning of the company have to be
defined. Depending on the strategic priorities and positioning, and the nature of the gap between identity
and image, different corporate communications messages can be developed. When the objective is to
improve internal corporate culture through internal communications, the focus will be on communicating
whatever important aspect of strategy that is not adequately assimilated by the staff. Campaigns to
develop a better awareness of the company’s name and identity will often be the first necessary step in the
development of a corporate image. Changes in the corporate structure or corporate strategy always call for
intensified corporate communications.
Fundamental changes in strategic direction that have an impact on the relationship between the audiences
and the company will have to be communicated, such as the decision to withdraw from a market, to focus
on core activities, to lay off personnel etc.
Last but not least, corporate communications messages can be aimed at laying the groundwork for a long-
term, stable and favourable image by crating goodwill.
See summary…
CAP.6 – BUDGETS
INTRODUCTION
In this era of globalizing, scaling-up and increasing competition, company are continuously looking for new
ways to economize. Companies tend to save most in those expenses that may be influenced in the short
term. Hence, communications budgets are often first in line to be reviewed.
Deciding on the communications budget is not a one-off activity and certainly does not come at the end of
the marketing communications planning cycle. The financial resources of a company or brand influence the
communications programs, and plans should be continously assessed against financial feasibility at all
stages in the planning process.
There is no ideal formula for making the best budgeting decision. Deciding on the best budget requires
experience and judgment. Therefore, the budgeting process should be well considered and based on
concrete marketing and communications objectives defined in the communications plan. The second step is
to apply one of the budgeting methods discussed in the next section. The last step is to evaluate and
possibly revise the budget and objectives, and adapt them to specific circumstances.
HOW THE COMMUNICATIONS BUDGET AFFECTS SALES
To be able to assess (stimare, valutare) the size of the budget, it is important to understand how
communications efforts influence sales. Sales response model depict the relationship between these two
factors. There is the concave sales response model. In this model it is hypothesized that sales behave in a 17
microeconomic way, following the law of diminishing returns: the incremental value of added
communications expenditures decreases. An explanation for this reason is that, once every potential buyer
is reached with the communications mix, he or she either will or will not buy, and beyond that optimal
point prolonged communications will not change the non-buyers mind. This model suggests that smaller
budgets may be as effective as much bigger ones.
Another way to model sales responses to communications efforts is the S-shaped relation. This model
assumes that, initially, when the level of effort is low, there is no communications effect at all. Even if
communications effort is zero, there will be a certain level of sales, and a minimum investment is needed to
enjoy any results of the communications program and to increase sales. When that level is reached, sales
will start to increase with incremental communications expenditures. The higher the investments, the
greater the additional sales will be. At a point (A), increased investments start to lead to smaller changes in
sales. It is impossible, even with very high communications instruments, to exceed a certain saturation level
of sales. This is due to the market, and the cultural and competitive environment. Exorbitant
communications investments may even lead to negative effects, such as irritation and consumer resistance.
Estimating the relationship between the communications budget or effort and sales or market chare is not
easy. First of all, marketing communications are not the only marketing mix instrument influencing sales.
Prices, product line decisions and changes in the distribution strategy will also influence sales. Furthermore,
an effective marketing mix implies that synergy and interaction exist between the various marketing tools.
In a well-designed marketing plan each tool reinforces the other.
As a result of this interaction, it is very difficult to isolate the effect of the communications budget on
commercial results. Furthermore, sales response models do not take the effect of competitive actions and
environmental factors into account.
Finally, and at least as importantly, communications efforts may have both an immediate short-term and
long-term effect on sales and market share. Traditional theories consider communications as a long term.
This traditional view is challenged by John Philip Jones, who proposes a controversial theory in the short-
term effects of advertising, claiming that paradigms stating that sales are mainly influenced by accumulated
advertising campaigns of the past are mistaken. He tried to prove that immediate communications effects
on sale exists, deduced that promotions had short-term effects and advertising long-terms effects. Jones
introduced a new measurement tool called STAS (Short Term Advertising Strength). The baseline STAS for
brand X is the share of brand X in the budget of families who have not seen an ad for brand X in a seven-day
period before purchase. Jones then calculated the share of brand X in the budget of families who were
exposed to an ad at least once during the same period. This is called “stimulated STAS”. The difference
between baseline STAS and stimulated STAS is the “STAS differential”, expressing the immediate sales
generating effect of an ad campaign.
Jones also came to the rather surprising conclusion that the first exposure of an ad causes the largest part
of sales returns, and the additional exposures will only lead to small effects on sales. The sales response
curve would then be a concave digressive function. The most effective frequency of an ad campaign
according to Jones is one single exposure. Jones believes that long-term effects will only come about when
an ad campaign is also effective in the short term and does not believe in the sleeper effects of marketing
communications. This statement is radically opposed to the widespread belief that a higher ad frequency is
needed to gain any effect on sales. In reality, both short-term and long-term effects are important.
COMMUNICATIONS BUDGETING METHODS
The various communications budgeting methods are: marginal analysis, intertia, arbitrary allocation,
affordability, percentage of sales, competitive parity, objective and task. 18
Marginal analysis
The basic principle of marginal analysis is quite obvious: to invest resources as long as extra expenses are
compensated by higher extra returns. Profit is calculated as the difference between gross margin and
communications expenditures. This analysis has the advantage of estimating the effect of advertising on
profits, and derives a normative rule of optimal advertising efforts. However, the analysis remains largely
theoretical because of the problems involved in estimating the sales response relation.
Intertia
The inertia method is nothing more than keeping budgets constant year on year, while ignoring the market,
competitive actions or consumer opportunities. Needless to say, this is not a very strategic method.
Arbitrary allocation
Again, this is one of the most simple of all budgeting methods, but also one of the least appropriate.
Whatever the general manager or managing director decides will be implemented. This is a very subjective
way of deciding.
Affordability method
In this method “leftover” resources, after all input costs, are invested in communications. Marketing
communications are considered to be a pure cost rather than an investment and mostly not part of a
strategic plan, nor are any concrete communications goals defined.
Percentage of sales
In this technique, budgets are defined as a percentage of the projected sales of the next year. Although
they are commonly used and, like the affordability method, ensure that costs do not threaten profits, these
budgeting methods have some notable disadvantages. The percentage of sales method could lead to
overspending in markets in which these kinds of investments are nor needed and at the same time
communications budgets might be too small where they might have had a major impact. Decreasing
returns of sales will lead to smaller communications budgets, which will certainly not help to change the
negative sales evolution. Another common way of using the percentage of sales method is to take the sales
of the past year instead of projected sales, but that is even worse. This method uses past performance as a
ceteris paribus situation. A last variant of this method is to take a percentage of profits instead of sales. This
has the same disadvantages.
Competitive parity
Means that companies look at the amount of money competitors spend on communications and then copy
their budgets. The logic of this method lied in the fact that the collective behavior of a market will not skew
mush of the budget optimum. The advantage of method is that the market will not be destabilized by
overinvestments or extremely low promotions budgets. This method is often used in fast-moving consumer
goods where sales are believed to be highly influenced by advertising and communications spending.
Nevertheless, the theoretical basis of this method has some disadvantages. The underlying assumption is
again that promotional spending are the only variable that influences sales. Furthermore, a company
assumes that the competitor’s communications budget was set in an effective and efficient way. Lastly, this
method implies that resources, operational methods, opportunities and objectives of competitors used as a
benchmark are exactly the same as those of our company.
Some researchers have developed paradigms that are of practical use to marketers wanting to assess the
effects of their share of voice (SOV) on their share of market (SOM). Share of voice is calculated as the ratio
of own communications investments divided by communications investments of all market players. A study
on the impact of advertising of competitors with comparable products on market share, not taking the
advertising quality or any formal or content characteristic of advertising into account, came to the following
conclusions. Ad spendings will only influence market share (SOM) where there is a different advertising
intensity over a long period. Marginal budget changes do not affect SOM. It is important to note that 19
market leaders will have to track the expenditures of competitors and react to changes to prevent them
from gaining market share. Figure on page 199: the largest and the smallest player in the market are
located above the 45° line. This means that their SOV is smaller than their SOM.
The relation between SOV and SOM in different market situations was also studied by John Philip Jones.
Brands with higher SOM than SOV are called profit-ranking brands. Brands with the opposite relation are
investment brands. The percentage of profit-takers among brands with a small market share is low. The
higher the market share, the more profit-taking brands will appear. Some explanations can be offered to
explain this phenomenon. Small brands have to invest in communications to create brand awareness.
Larger and usually older brands are often being “harvested” (mietuti). Communications budgets are cut in
order to make the brand more profitable.
The relation between SOM and SOV provides an objective tool for companies to compare their
communications spend with the budgets of other players in the market. This allows marketers to make a
better analysis. The average SOV helps to estimate the maximum underinvestment big brands can afford
without losing too much of their market position.
Objective and task method
It differs from the other methods in that is starts from communications objectives and the resources that
are needed to reach these planned goals. All needed investments are then added and this will lead to the
overall communications budget. It requires more strategic planning and investment analysis and is
therefore clearly superior to all the other methods. Moreover, budgets can be evaluated each year, and this
feedback will lead to improved decision making and more efficient budgeting in the future. The difficulty in
this method lies in the estimation of the profit impacts of different communications actions and tattics. The
three most used budgeting methods in the US are: percentage of expected sales, affordability method and
arbitrary method.
FACTORS INFLUENCING BUDGETS
The market size (the smaller the targeted markets, the easier is to reach the targets in a cost-efficient way),
market potential, market chare objectives, contingencies, economies of scale, organizational
characteristics, planning gap, crisis situation, unexpected opportunities of threats, economic recession.
BUDGETING FOR NEW BRANDS OR PRODUCTS
Although budgeting for existing brands in established product categories is the most common task for
marketers, often they are confronted with the problem of budgeting for a brand or product launch. This is
even more difficult than the former. Historical data on the budget settings that have been successful are
not available and consequently easy-to-use schemes as discussed above are not appropriate for estimating
required budgets. The primary budgeting method for launching new brands or products should be the
objective-and-task method. But given the uncertainty and lack of historical data, this is not only a difficult
budgeting method but also one that is not risk free.
Peckham, a consultant, developed a rule of thumb for new fast moving consumer good brands. This rule
recommends setting the SOV of the brand to be launched at 1,5 times the desired SOM at the end of the
brand’s first two years.
In almost all markets, a brand’s competitive advantage is determined by the order of entry on a market.
Pioneer brands often enjoy market share leadership, the second brand gets the second largest market
share, ect. 20
CAP.7 – ADVERTISING
TYPES OF ADVERTISING
Advertising is one of the oldest, most visible and most important instruments of the marketing
communications mix.
Advertising can be defined as any paid, non-personal communication through various media by an
identified company, non-profit organization or individual. Advertising is a good marketing communications
tool to inform and persuade people, irrespective of whether a product, a service or an idea is promoted.
Different types of advertising can be distinguished on the basis of four criteria. (1) advertising can be
defined on the basis ot the sender of the message [manufacturer, collective (done by the government),
retailer, co-operative (+manufacturers or + retailers), idea (done by no-profit)]. (2) the intended receiver of
the advertising message can be either a private consumer or another company. (3) different type of
advertising can also be distinguished according to the type of message conveyed (informational,
transformational, institutional, selective vs generic, theme vs action). Finally, (4) on the basis of the
medium in which the ad is placed (audiovisual, print, point-of-purchase, direct).
CAMPAIGN DEVELOPMENT
Developing an advertising campaign, like any other communications plan, consists of a sequence of steps.
Marketing strategy (the target group (cap.4), the advertising objectives (cap.5), the message strategy)
creative strategy (going from “what to say” to “how to say it”) media strategy (which media, time
period, frequency) evaluation of alternatives implementation campaign evaluation (cap. 9).
MESSAGE STRATEGY
What are we going to say to the consumers? We have to convince them. In order to answer this question,
the advertiser has to know and understand the target group very well. The advertising can only be effective
if it benefit the consumer. Knowing the problems, preferences and aspirations of the target group may be
essential for deciding on the right message.
Furthermore, it is important not to confuse consumers. Therefore, most companies stick (si accaniscono) to
promoting one unique benefit of their brand, which can be functional or non-functional. A functional
benefit, also called unique selling proposition (USP), usually refers to functional superiority in the sense
that the brand offers the best quality, the best service, the lowest price, the most advanced technology (ex.
Masercard). A non-functional benefit usually reflects a unique psychological association to consumers and
is referred to as an emotional selling production (ESP) (ex. Porsche).
In order to know which USP or ESP to go for, the advertiser needs to have a clear consumer insight.
CREATIVE IDEA
Before an advertising agency can start thinking of a creative strategy, the advertiser must give them a
creative brief. The creative brief or the document that forms the starting point for advertising agency
should contain not only information on the target, ad objectives and message strategy, but also provide
sufficient information concerning the background of the company, the product, the market and the
competitors. The first step of the creative strategy is to develop a creative idea. A creative idea can be
defined as an original and imaginative thought designed to produce a goal-directed and problem-solving
advertisements and commercials.
CREATIVE APPEALS
In trying to generate the established advertising objectives, agencies or creatives can use a multitude of
appeals, formats and execution strategies to express or translate their creative idea. Broadly speaking, two
different types of creative appeal can be distinguished: rational appeals and emotional appeals. Emotional
appeals are advertisements whose main purpose is to elicit (far uscire) affective responses and to convey 21
an image. Rational appeals, on the other hand, contain features, practical details and verifiable, factually
relevant cues that can serve as evaluative criteria.
RATIONAL APPEALS
Rational ads may contain one or several information cues (segnali), the most widely used: talking head,
demonstration, problem solution, testimonial, slice of life, dramatization, comparative ads, etc.
Rational appeals are more effective than emotional appeals when a product is new to the market. Ads for
intangible products contain more information cues than for tangible products. Finally, the level of
information varies between different advertising media.
Talking head refers to an ad in which the characters tell a story in their own words: monologue, dialogue or
interview techniques could be used. In a demonstration consumers are shown how a product works. It is an
easy way to focus on attributes, benefits and product uses. A problem solution shows how a problem can
be solved or avoided. Problem solution is often combined with a fear appeal showing consumers what
happens if the brand is not used. A testimonial features ordinary people saying how good product is. It is
advisable to carefully pre-test testimonials on believability and the emotions they evoke because research
shows that testimonials often lead to irritation in consumers. Slice-of-live ads(slice=fetta) feature the
product being used in a real-life setting, which usually involves solving a problem. The effectiveness of this
type of ad is attributed to the fact that the product is shown in a real-life context the target group can
relate to. Although slice-of-life is used quite often, research shows that such ads are more likely to cause
irritation. A dramatization is rather similar to slice-of-life. Both first present a problem and afterwards the
solution, but a dramatization build suspense and leads consumers to a climax. Comparative advertising can
be used as a means to differentiate a brand from a competitor. People, specially in Europe may not like it.
Consumers seem to devote more attention to a comparative than a non comparative ad. However it should
be noted that consumers perceive comparative advertising as less credible. A recent study shows that
elaborate processing and credibility of comparative advertising may be different for man and woman. For
men, comparative advertising seems to increase brand evaluations and purchase intentions because it
increases their brand involvement and enhances processing. Foe women, on the other hand, comparative
advertising leads to heightened (innalza) persuasive intent perceptions and these perceptions decrease
brand evaluation and purchase intentions. Concerning product positioning, positive effects can be
observed. With new brand introductions, advertisers often stress the superiority of the new brand over a
more familiar competitor on a typical attribute. By doing so, two desirable goals seem to be reached: (1)
the new product is associated with the comparison brand and, as consequence, more easily included in the
consideration set of the target consumers and (2) the brand advertised is different from, and is more likely
to be preferred to, the comparison brand.
The attitude towards the brand usually is positively influenced by comparative ads, while the contrary holds
for the attitude towards the ad. The latter is perceived to be less personal, less friendly and amusing, less
honest and more aggressive. Although in the end the balance of advantages and disadvantages turns out
to be in favour of comparative advertising, one should also take into account the following threats. The use
of comparative advertising may lead to aggressive, competitive media wars when the comparison brand
feels attacked.
EMOTIONAL APPEALS
Emotional advertising refers to advertising that tries to evoke emotions in consumers rather than to make
consumers think. Emotional ads mainly consist of non-verbal elements such as images and emotional
stimuli. Emotional appeals do not necessarily evoke emotions in all people, although they are designed to
do so. 22
Humour
Humorous advertising can be defined as an appeal created with the intent to make people laugh,
irrespective (senza curarsi) of the fact that humour is successful or not. Different types of humour exist, for
example cognitive humour. In this case, there is an incongruity, an unexpected element as a result of which
the consumer has to follow different lines of reasoning to solve the incongruity. There are also sentimental
humour, sexual humour and satire. The effectiveness of humour also depends on the product type. The
prevailing opinion seems to be that humour is more appropriate for low than for high involvement
products and for transformational rather than for informational products. In general, humour seemd to be
more effective for existing and familiar brands than for new and unfamiliar brands. In other words, building
brand awareness using humour is more difficult, since the humour might gain too much attention, leading
to inferior brand attention. Finally, humour may have a detrimental (nocivo) effect when prior brand
evaluations are negative.
Eroticism
An ad can be classified as erotic if one or more of the following elements are present: partial or complete
nudity, physical contact between two adults, sexy or provocatively dressed person(s), provocative or
seductive facial expressions, and suggestive words or sexually laden music, etc. eroticism attracts attention.
Eroticism reduces brand and message recall. Another negative aspect is that eroticism has a negative
impact on the image of the advertiser. Functional products such as underwear, bath things, etc. and
romantic products are expected to benefit more from an erotic appeal than other product categories. More
effective among low involvement consumers. Women seem to respond favorably to erotic ads only when
there is a strong fit between the ad and the brand. Men, on the other hand, respond favourably to
eroticism irrespective of the level of fit.
Warmth (cordialità)
Earm appeals can be described as advertising that consists of elements evoking mild, positive feelings such
as love, friendship etc. Warmth leads to more positive affective responses, less negative feelings such as
irritation, a more positive attitude towards the ad and the brand. More responsive are female.
Fear
A fear (or threat-based) appeal refers the consumer to a certain type of risk (threat) he or she might be
exposed to and which he or she usually can reduce by buying (ex. An insurance) or not buying (ex. Non
drinking when driving) the product advertised. Typical risks: physical, social (the risk of being socially
ostracized), time (spend too much time on an activity that can be perdormed in less time), product
performance ( the risk that competitive brands do not perform adequately), financial ( loosing a lot of
money), opportunity loss. Are threat appeals effective? Most studied point in an affirmative direction.
Music
The major reason why advertisers make use of music is because they believe that music can gain attention
and facilitates message acceptance. Music induces more positive feelings. The effectiveness of music may
depend on the attention-gaining value referring to the arousal or activation potential of the music sound.
Fast, loud music, for example, can be expected to have a higher attention-gaining value. However, although
this type of music might initially attract attention to the ad, it also distracts the listeners which leads to an
impairment of cognitive processing and brand information recall. A second factos in the music/message
congruence, referring to the extent that the music and the ad copy convey the same message.
Incongruence may lead to distraction from, instead of attention to, the brand message. 23
ENDORSERS (chi appoggia, sottoscrittore)
Experts can be used to demonstrate the quality or high technology of a product. The effectiveness of this
type of ad is assumed to be based on the perceived credibility of the experts’ judgment. In contrast with
testimonials, expert endorsements do not seem to be perceived as irritating. Celebrities can also be used to
endorse a product. Their effectiveness is based on the “aspiration group” effect. The celebrity should be
credible in the sense that he or she has expertise and is trustworthy. The trustworthiness of an endorser is
defined ad the degree to which the endorser is perceived to be honest and believable. Besides credibility,
attractiveness may also be important. Finally, there should be an appropriate fit between the endorser’s
image, personality, lifestyle, etc. and the product advertised. In this respect, it should be added that the
behavior of the celebrity may turn against a brand he or she is associated with.
CAMPAIGN IMPLEMENTATION
After advertising agencies have come up with creative and executional ideas, the advertiser has to evaluate
the different alternatives on the basis of the creative brief. This means that the idea ultimately chosen need
to be suited to and appealing to the target group, be capable of reaching the advertising objectives, be a
kind of catalyst, making the brand’s position immediately clear in a simple, eye-catching manner. The idea
must also fit with the company’s and the brand’s long-term strategy and with previous campaigns. It has to
be adaptable to the different media to be used, and financially implementable within the give advertising
budget and within the given time limits.
ADVERTISING IN A B2B CONTEXT
Business ads tend to be more factual and rational, and tent to emphasise the company name rather than its
products, because customers are also buying reliability, after-sales service and technical support, in other
words, a relationship with a trustworthy partner. On the other hand, there are a number of reasons why
business advertising should not be so different from consumer advertising. After all, the human element is
present in both situations, and some of the functions of advertising are common to both markets. Ex. The
presence of emotions. What are the dimensions of an effective B2B ad? Research shows that a successful
business ad should score on four dimensions: characteristics of the ad, the reader’s feelings about his or
her relationship with the ad, the selling proposition and the company’s orientation or visibility. To score
positively on each of the dimensions, business ads should clearly use a rational approach.
ADVERTISING IN A CROSS-CULTURAL ENVIRONMENT
Some important components of culture: values and attitudes, language, gender roles, sense of humour,
religion. Each of these culture components may have an impact on how advertising messages are perceived
and should be framed to be correctly understood by consumers in different cultures.
Verbal language
Subtle differences or different pronunciations may convey totally different meanings. Furthermore,
translation of words may lead to more space requirements which can alter the overall layout of the ad.
Also, the meaning of words may alter as a result of translation. Also non verbal language is important, it
includes timing, special orientation, gestures, touch, colours and eye contact.
Timing
A time-is-money person may find and advertisement that appeals to “saving time” convincing, in contrast
to the opposite kind of person. Also, a distinction can be made between a time orientation towards the
past, present or future.
Space
Asian and arab people tend to stand very close to one another. Western and American people leave more
space and find it rather threatening when people stand close to them.
Colours
Colours have different meanings in different cultures. 24
Gestures
In different palce of the word they have different gestures for the same thing.
Eye contact
Looking someone straight in the eye is regarded positively by Europeans and Americans because it is
perceived as a sign of honesty. However, in Japan you show respect by lowering your eyes.
Values and attitudes
Are our guide in determining what is right and what is wrong, what is important and desirable, and how we
behave. Therefore, it is important to understand different cultural valued and beliefs. Empirical studies
show that consumers seem to respond more positively to culture-congruent appeals.
Religion
Religion influences what is allowed to be said or shown in a marketing message.
Sense of humour
Some countries make more use of humour than others.
Gender roles
Gender roled in advertising differ to a great extent from one country to another.
High and low context cultures
In low-context sultures a lot of emphasis is placed on words. One is as accurate, explicit and unambiguous
as possible so that the receiver can easily decode the message and understand what is meant. In high-
context cultures words are one part of the message, the other part is formed by body language and the
context.
Cultural dimensions
According to Hofstede, five cultural dimensions can be distinguished, which can explain the differences in
cultural components across countries. Individualism/collectivistic cultures, degree of power distance (in
high-power distance cultures a few people have all the power and make all the decisions),
masculine/feminine cultures, uncertainty avoidance (people feel uncomfortable with uncertainty and
ambiguity and have a need for structure and formal rules in their lives), long-term/short-term orientation.
Summary page 251.
CAP.8 – MEDIA PLANNING
media planning is receiving more and more attention. This is not surprising since the cost of buying
advertising time and space makes up 80-90% of the advertising budget.
THE MEDIA PLANNING PROCESS
A media plan can be defined as a document specifying which media and vehicles will be purchased when, at
what price and with what expected results. Creating a media plan is a process which consists of five
different steps. (1) the communications environment needs to be screened to formulate a media plan. First
of all, media planners should be acquainted with all regulations and legal aspects, as well as local habits.
Second, media planners should be able to judge the communications efforts of the competition. In this
respect the following elements are important: category spending, share of voice, media mix. (2) describe
the target audience: already said in chapter four, with the addiction of target media behavior, ex. Do they
watch tv?. (3) set de media objectives, (4) select the media mix, (5) buy media.
MEDIA OBJECTIVES
Are derived form the communications objectives, and ought to be concrete, measurable and realistic.
Media objectives are usually formulated in terms of the following characteristics: 25
I contenuti di questa pagina costituiscono rielaborazioni personali del Publisher AleBucc di informazioni apprese con la frequenza delle lezioni di Marketing e studio autonomo di eventuali libri di riferimento in preparazione dell'esame finale o della tesi. Non devono intendersi come materiale ufficiale dell'università Bocconi - Unibocconi o del prof Brioschi Arianna.
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