Dr. H. Ronald Moser Cumberland University

1. Kleppner’s Advertising Procedure Dr. H. Ronald Moser Cumberland University

2. Chapter 3 Brand Planning and the Advertising Spiral Kleppner’s Advertising Procedure, 18e Lane * King * Reichart

3. Learning Objectives • Discuss the birth and basics of branding. • Explain brands and integrated marketing. • Discuss brand equity. • Explain IMC (Integrated Marketing Communications) strategic planning. • Explain the importance of the product life cycle. • Discuss the relationship of the advertising spiral.

4. Building Strong Brands and Equity – Brand • A brand is a name, term, sign, design, or a unifying combination, intended to identify and distinguish the product or service from competing products or services. • Advertisers and their agencies are likely to agree that a brand is an organization’s most valuable asset. • A product is manufactured while a brand is created. • The building blocks that generate a brand’s value are trust, image, and familiarity.

5. Exhibit 3.1 – Zippo: A leading brand since the 1930s – Building Strong Brands and Equity • EXHIBIT 3.1. • Zippo has been a leading brand since the 1930s. This trade ad tries to convince retailers to carry the product because it is a leading brand.

6. Building Strong Brands and Equity – Brand • The Origin of Branding – The way that early manufacturers used to differentiate their products from their competitors’ was the best deal to wholesalers so their products were distributed. • Brand Connections – Above all else, branding has been historically, and still is today, all about making connections selling a product. • Branding Channels and Engagement – Branding today is not about the media: it’s about ideas.

7. Building Strong Brands and Equity – Brand • The Origin of Branding – The way that early manufacturers used to differentiate their products from their competitors’ was the best deal to wholesalers so their products were distributed. • Branding As A Financial Decision – Branding isn’t an advertising decision. It’s a financial decision. We have learned that creating brand leverage is about dealing correctly with strategic issues and financial commitments at the top management level—then taking the risks necessary to deliver category-dominating creations.

8. Building Strong Brands and Equity – Brand • The Origin of Branding – The way that early manufacturers used to differentiate their products from their competitors’ was the best deal to wholesalers so their products were distributed. • Digital Influence – A major change in the brand environment today stems from the influence of digital communications. • Digital communication allows the world to determine whether a brand is practicing what it preaches. • In today’s digital world, the brand and the brand organization must perform, behave, and satisfy the consumer’s needs as they expect.

9. Brands and Integrated Marketing Communications • Integrated Marketing Communication -The name given to the process of coordinating messages throughout a number of touch points, building brand equity, and building better marketing strategies for a product is Integrated. • Marketing Communication - Increasing use of cash incentives, coupons, and premiums is beginning to replace traditional models of advertising and consumer communication.

10. Brands and Integrated Marketing Communications – Brand Equity • Brand Equity – Is the value consumers, distributors, and salespeople think and feel about a brand relative to its competition over a period of time. • Many powerful brands today were among the earliest brands: • Budweiser, Ivory, Coca-Cola, Campbell’s Soup, Hershey’s Chocolate, Maxwell House Coffee, and Levi’s. • Brand equity can be increased by using integrated marketing communications.

11. Brands and Integrated Marketing – Young & Rubicam’s Brand Asset Valuator • One of the most respected proprietary tools in the industry for assessing a brand’s stature among consumers is the Brand Asset Valuator (BAV) created by Young & Rubicam (Y&R). • It is a diagnostic tool for determining how a brand is performing relative to all other brands. • The Brand Asset Valuator created by Young & Rubicam evaluates weaknesses and strengths of a brand according to vitality and stature.

12. Brands and Integrated Marketing – Young & Rubicam’s Brand Asset Valuator • Claim: Brands are built over the progression of four primary consumer perceptions: Differentiation-The basis for choice: the essence of the brand, source of margin. Relevance- Relates to usage of the five P’s of marketing related to sales. Esteem- Deals with consumer respect, regard, and reputation consumers expect. Knowledge- The culmination of brand-building and relation to consumer experience.

13. Brands and Integrated Marketing – Y&R’s Brand Value Structure • A brand’s vitality lies in a combination of differentiation and relevance. A brand must be distinct, or it simply isn’t a brand. Unless a brand is also relevant, the consumer has no reason to select it. Differentiation Brand Vitality Relevance Brand Value Esteem Brand Stature Knowledge • Young & Rubicam view a brand’s stature as a combination of familiarity and esteem that is, whether people know and understand your brand and whether they like it.

14. Brands and Integrated Marketing – Developing IMC Strategic Plans • Before you start to think about creating advertisements for brand, you need a strategic plan. • Before you can develop a strategic plan, your need and understanding of the marketing situation and a clear understanding of the brand’s equity. • There are four logical steps in this process resulting in the creative brief or plan: Brand Equity Audit Analysis Strategic Options Brand Equity Research Creative Brief

15. Brands and Integrated Marketing – Developing IMC Strategic Plans • Before you start to think about creating advertisements for brand, you need a strategic plan. • Before you can develop a strategic plan, your need and understanding of the marketing situation and a clear understanding of the brand’s equity. • There are four logical steps in this process resulting in the creative brief or plan: 1. Brand Equity Audit Analysis Strategic Options Brand Equity Research Creative Brief

16. Brands and Integrated Marketing – Areas Examined in a Brand Equity Audit Analysis • A Brand Equity Audit Analysis determines all of the following: • Market Context. • Brand Equity Strengths and Weaknesses. • Brand Equity Descriptions. • Competitive Strategies and Tactics. • There are a number of areas to examine in the first step, brand equity audit analysis. For instance, the context of the market, strengths and weaknesses, consumer attitude descriptions, and competitive strategies and tactics are of importance here.

17. Brands and Integrated Marketing – Areas Examined in a Brand Equity Audit Analysis • A Brand Equity Audit Analysis determines all of the following: • Market Context – Here we are looking for clues and factors that positively or negatively affect brand equity. • The whole purpose is to set the scene. • We must look at the market from varying angles and select only the relevant ones so that we can set the scene for understanding and building brand equity.

18. Brands and Integrated Marketing – Areas Examined in a Brand Equity Audit Analysis • A Brand Equity Audit Analysis determines all of the following: • Brand Equity Strengths and Weaknesses– Strength of brand’s equity: • Market Share. • Brand Sensitivity. • Image Attributes. • Brand Loyalty.

19. Brands and Integrated Marketing – Areas Examined in a Brand Equity Audit Analysis • A Brand Equity Audit Analysis determines all of the following: • Brand Equity Descriptions – Here 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. • Second, we must analyze in depth our brand’s and its competitors’ communications over a period of time. • It is from these communications that most of consumers’ feelings (emotional elements) and opinions (rational elements) about the brand are derived (see Exhibit 3.3).

20. Exhibit 3.3. Basic Elements of a Brand – Brands and Integrated Marketing • EXHIBIT 3.3. –Three Basic Elements of a Brand.

21. Brands and Integrated Marketing – Brand Equity Description: Golf GTI • A Brand Equity Description for the Golf GTI automobile might be as follows: Emotional Elements • Small Sports Car. • Sets Me Free. • Makes Me Look Good. • Simple. • There When I Want It. • I’m In Control. Rational Elements • Inexpensive. • High Gas Mileage. • Retains Value. • Durable. • Dependable. • Handles Well.

22. Brands and Integrated Marketing – Areas Examined in a Brand Equity Audit Analysis • A Brand Equity Audit Analysis determines all of the following: • Competitive Strategies and Tactics – This area of the audit is designed to provide a clear summary of the current communication strategies and tactics of our brand and of key competitors. • It should include an analysis of all integrated communications in relation to brand equity. • Is the strategy designed to reinforce current brand equity? • Who is the target audience? • Are there different target audiences? • What are the themes and executional approaches? • How are the marketing funds being spent?

23. Brands and Integrated Marketing – Developing IMC Strategic Plans • Before you start to think about creating advertisements for brand, you need a strategic plan. • Before you can develop a strategic plan, your need and understanding of the marketing situation and a clear understanding of the brand’s equity. • There are four logical steps in this process resulting in the creative brief or plan: Brand Equity Audit Analysis 2. Strategic Options Brand Equity Research Creative Brief

24. Brands and Integrated Marketing – Strategic Options/ Recommendations • The second step draws on the conclusions from the analysis to develop a viable recommendation plan. • The Strategic Options include the following: • Communication Objectives. • Audience. • Source of Business. • Brand Positioning and Benefits. • Marketing Mix. • Rationale.

25. Brands and Integrated Marketing – Strategic Options/ Recommendations • The second step draws on the conclusions from the analysis to develop a viable recommendation plan. • The Strategic Options include the following: • Communication Objectives – Here we are asking the question what is the primary goal the message aims to achieve? • Audience– To whom are we speaking? • Source of Business – Where are the customers going to come from for our brands or product categories?

26. Brands and Integrated Marketing – Strategic Options/ Recommendations • The second step draws on the conclusions from the analysis to develop a viable recommendation plan. • The Strategic Options include the following: • Brand Positioning and Benefits – How are we to position the brand, and what are the benefits that will build brand equity? • Marketing Mix – What is the recommended mix of advertising, public relations, promotion, direct response, and etc.?

27. Brands and Integrated Marketing – Strategic Options/ Recommendations • The second step draws on the conclusions from the analysis to develop a viable recommendation plan. • The Strategic Options include the following: • Rationale– How does the recommended strategy relate to and what effect is it expected to have on brand equity?

28. Brands and Integrated Marketing – Developing IMC Strategic Plans • Before you start to think about creating advertisements for brand, you need a strategic plan. • Before you can develop a strategic plan, your need and understanding of the marketing situation and a clear understanding of the brand’s equity. • There are four logical steps in this process resulting in the creative brief or plan: Brand Equity Audit Analysis Strategic Options 3. Brand Equity Research Creative Brief

29. Brands and Integrated Marketing – Brand Equity Research • In the third step, we do the Proprietary, Qualitative Research. • It is exploratory and task-oriented research. • Here, we need to determine which elements or elements of brand equity must be created, altered, or reinforced to achieve our recommended strategy and how far we can stretch each of these components without affecting the brand’s credibility.

30. Brands and Integrated Marketing – Developing IMC Strategic Plans • Before you start to think about creating advertisements for brand, you need a strategic plan. • Before you can develop a strategic plan, your need and understanding of the marketing situation and a clear understanding of the brand’s equity. • There are four logical steps in this process resulting in the creative brief or plan: Brand Equity Audit Analysis Strategic Options Brand Equity Research 4. Creative Brief

31. Brands and Integrated Marketing – Creative Brief • The final step is written Creative Brief (or work plan) for all communication. • We synthesize all the information and understand into an action plan for the development of all communications for the brand: advertising, public relations, promotion, and etc. • A Creative Brief(strategy or work plan) is a short statement that clearly defines the audience, how consumers think or feel and behave, what the communication should achieve, and the promise that will create a bond between the consumer and the brand.

32. Brands and Integrated Marketing – Key Components of a Creative Strategy • A Typical Creative Brief Strategy Would Include the Following: Key Observation – The most important market/ consumer factor that dictates the strategy. Communication Objective –The primary goal the advertising aims to achieve. Consumer Insight – The consumer’s “hot button” our communication will trigger. Promise–What the brand should represent in the consumer’s mind. Support– The reason the promise it true. Audience – To whom we are speaking and how do they feel about the brand. Mandatories – Items used as compulsory constraints.

33. Exhibit 3.4. AFG Planning Cycle – Brands and Integrated Marketing • It is important to understand that there isn’t only one approach to developing an integrated strategic plan for a brand. Let’s take a look at the basics of a couple of other strategic planning approaches. • In the seven-step planning cycle used to create strategic advertising designed by Avrett, Free, and Ginsberg, the advertising discipline that is employed is account planning.

34. Exhibit 3.4. AFG Planning Cycle – Brands and Integrated Marketing • Avertt, Free & Ginsberg’s Planning Cycle: Brand/Market Status - AFG evaluates where the brand is in its marketplace. Brand Mission – After determining brand status, AFG proposes and agrees on brand goals. Strategic Development – Which options to consider. AFG uses a process called need mapping. Strategy– A used in developing a fully integrated communication program. Creative Exploration– AFG develops, explores, and evaluates a range of executions. Brand Valuation–AFG tracks marketplace performance and progress. Brand Vision–AFG plots long-range expansion plans for the base brand.

35. Exhibit 3.5. Example of AFG’s Need-Mapping Process – Brands and Integrated Marketing • EXHIBIT 3.5. - An Example of AFG’s Need-Mapping Process:

36. Brands and Integrated Marketing – Typical Steps in the Planning Process • Following are some of the typical steps agencies and clients take in the planning process. Evaluate Current Brand Status – Here we are evaluating the brand’s overall appeal. Develop Brand Insights – Here we may attempt to capture the words that best describe the brand. Identify Brand Vision – Here we looking for the connection between the brand and the consumer. Express A Big Idea – We are trying to determine when the consumer will be most receptive to the message. Evaluate Whether Objectives Are Met – An essential aspect of communications is accountability.

37. Brands and Integrated Marketing – What Great Brands Do • Here we look at some of Scott Bedbury’s, former senior vice president of marketing at Starbucks Coffee, brand building principles: A Great Brand: • Is In It For The Long Haul. • Can Be Anything. • Knows Itself. • Invents Or Reinvents An Entire Category. • Taps Into Emotions. • Is A Story That Is Never Completely Told. • Is Relevant.

38. Brands and Integrated Marketing – What Great Brands Do • Here we look at some of Scott Bedbury’s, former senior vice president of marketing as Starbucks Coffee, brand building principles: A Great Brand: • Is In It For The Long Haul – A great brand is a necessity, not a luxury. • Can Be Anything – Some categories lend themselves to branding better than others, but anything is brandable. • Knows Itself – To keep a brand vital, you have to do something new, something unexpected.

39. Brands and Integrated Marketing – What Great Brands Do • Here we look at some of Scott Bedbury’s, former senior vice president of marketing as Starbucks Coffee, brand building principles: A Great Brand: • Invents Or Reinvents An Entire Category - The common ground that you find among brands with some companies is that these companies made it an explicit goal to be responsible for each of their entire categories. • Taps Into Emotions – Emotions drive most, it not all, to make most decisions.

40. Brands and Integrated Marketing – What Great Brands Do • Here we look at some of Scott Bedbury’s, former senior vice president of marketing at Starbucks Coffee, brand building principles: A Great Brand: • Is A Story That Is Never Completely Told – A brand is a story that is evolving all the time.Here are saying the world is just a stage. • Is Relevant – A lot of brands are trying to position themselves as “cool,” but most of them fail.

41. Exhibit 3.6. Primary Stages of the Life-Cycle Model – The Advertising Stages of a Product • Great importance is placed on the development of a product and its marketing objectives as part of a brand’s strategic plan prior to creating advertisements. • Here we examine several aspects of product development and the advertising implications that are important to creating the strategic plan. • The stages in the life-cycle model as it relates to advertising include: pioneering, competitive, and retentive.

42. The Pioneering Stage – Purpose of the Pioneering Stage • In 2008, 48,000 products filled a typical supermarket, up more than 50 percent from 1996. • The purposes of the Pioneering Stage of a product’s life cycle is: • To Educate Consumers About New Products. • To Show People They Have a Need That Advertised Product Can Fulfill. • To Show That A Product Now Exists That Is Capable Of Meeting A Need That Had Been Recognized But Previously Unfulfilled.

43. The Pioneering Stage – Egg Beaters: Egg Alternative • EXHIBIT 3.8. • Egg Beaters Expands the market by trying to get the consumer to substitute Egg Beaters for eggs in Cooking.

44. The Pioneering Stage – Purell Built a Need for Hand Sanitizer

45. Competitive Stage – Purpose of the Competitive Stage • The Competitive Stage is the advertising stage a product reaches when its general usefulness is recognized but its superiority over similar brands has to be established in order to gain preference. • In the Competitive Stage, a pioneer of a newly accepted product usually has established an advantage of leadership that can give dominance in the market. • The general acceptance by the consumer of a new product indicates that the product is entering into the Competitive Stage. • Competitive Stage advertising is designed to answer the consumer’s question of which brand shall I buy?

46. Retentive Stage – Purpose of the Retentive Stage • The Retentive Stage is the third advertising stage of a product reached when its general usefulness is widely known, its individual qualities are thoroughly appreciated, and it is satisfied to retain its patronage merely on the strength of its past reputation. • Advertising in the Retentive Stageincludes poster-like dominant illustration of the product. • Products are at their most profitable level in the Retentive Stage because development costs have been amortized. • An advertiser’s main goal in the RetentiveStage is to maintain market share.

47. Brands in the Retentive Stage – Purpose of the Retentive Stage • Brands that are Considered to be in the Retentive Stage. • McDonald’s. • Nike. • Jell-O. • Pepsi-Cola. • Mountain Dew. • Budweiser. • Disney. • ESPN. • Google. • Gillette.

48. Exhibit 3.11. The Advertising Spiral • EXHIBIT 3.11. • The Advertising Spiral is an expanded version of the advertising stages of products just discussed.

49. The Advertising Spiral – Some Generalization • To determine when a product reaches a particular stage(s) in a given market at a given time, and what the thrust of the advertising message should be, you can utilize the Advertising Spiral. • Before you attempt to create new advertising for a product, you should use Advertising Spiral to answer the question in which stage is the product in. • We have to remember that products in the Retentive Stage receive the least amount of advertising. • The Advertising Spiral but not the life cycle model ignores the fact that a product nearing the end of the life cycle must decline. • If a manufacturer determines that a product has outlived its effective market, the product lifecycle model would suggest to stop advertising and other types of promotional support. • A strategy that a manufacturer might chose when a product has nearly reached the end of the RetentiveStage could be to expand the market into a Newer Pioneering Stage.

50. Exhibit 3.14. Expanded Advertising Spiral – The New Pioneering Stage and Beyond • EXHIBIT 3.14. • A product entering the New Pioneering Stage is actually in different stages in different markets.