Advertisement and Brand Management

Advertisement
• It is a paid message
• Communicated through a media channel
• It promotes the Product/Service or Idea
• The aim of the advertisement is always linked to influencing people
• Various forms of Ads
• TVC
• Print form
• Radio
• Online and OOH media
Role of Ads in the
commercial/Promotion mix
Let’s understand What is Brand first.

• Create Brand Awareness

• Stimulate Demand
• Build Brand Image
• Differentiate from Competitors
• Support Other Promotional Activities
History of Branding
• Why do we make choices?

• The word Brand

What is a Brand?
• American Marketing Association (AMA), a brand is a “name, term,
sign, symbol, or design or a combination of them
Exercise
Fruits

Birds

Place
Brands versus Products
• What is a Product?
• Five levels of meaning for a product
• core benefit level
• generic product level
• expected product level
• augmented product level- Competition starts here
• potential product level
Famous Coca-Cola story

•Consumer Reaction: Despite the research, the launch of

"New Coke" led to a massive backlash from consumers who
felt Coke was more than just a drink; it was an American
icon with emotional significance.

•Outcome: Coca-Cola reintroduced the original formula as

"Coca-Cola Classic" due to slumping sales
Why do brands matter?
• What functions do they perform that makes them so valuable to
marketers?
• Brand play an essential part for both consumers and
firm/manufacturer
Roles that Brand play
Contd..
• Brands can serve as symbolic devices, allowing consumers to project
their self-image

• Consuming such products is a means by which consumers can

communicate to others—or even to themselves—the type of person
they are or would like to be

• Brands may be particularly important signals of quality and other

characteristics to consumers for the different types of product
Product Classification and its associated attributes

These are classified into 3 major categories

search goods- product evaluation can be done based on sturdiness,

size, color, style, design, weight, and composition by visual inspection.

experience goods consumers cannot assess product attributes, actual

product trial, and experience is necessary. (e.g.- Tyres)

credence goods like insurance coverage, consumers may rarely learn

product attributes
Different types of risks associated
with brands
• Functional risk: The product does not perform up to expectations. •
• Physical risk: The product poses a threat to the physical well-being or
health of the user or others.
• Financial risk: The product is not worth the price paid.
• Social risk: The product results in embarrassment from others.
• Psychological risk: The product affects the mental well-being of the user.
• Time risk: The failure of the product results in an opportunity cost of
finding another satisfactory product

Thus, brands can be a very important risk-handling device, (in B2B settings where risks can sometimes have quite
profound implications.)
Brands’ valuable functions for FIRMs
• Fundamentally-To simplify product handling or tracing
• Operationally- brands help organize inventory and accounting records
• legal protection for unique features or aspects of the product
(Patents, copyrights, IPRs)
• Brand loyalty provides predictability and security of demand for the
firm
• Brand creates barriers of entry that make it difficult for other firms to
enter the market.
• The price premium
Value of Brands
• As of 2024, Coca-Cola's brand value is approximately $106.45 billion,
making it one of the top 15 most valuable global brands. The market
capitalization of Coca-Cola is around $274.41 billion, placing it as the
37th most valuable company in the world by market cap.

• For Microsoft, its brand value in 2024 is significantly higher at about

$502.9 billion, and its market capitalization is approximately $2.57
trillion, making it one of the most valuable companies globally
Value of Brand for Retailers and
Distributors
• “you are what you sell,” brands help retailers create an image and
establish positioning
• higher price margins, increased sales volumes, and greater profits.
• store brands or private label
Brand Equity Concept
• Brand equity explains why different outcomes result from the
marketing of a branded product or service than if it were not branded

• Brand Equity refers to the value that a brand adds to a product or

service. This value is derived from
• Consumer perceptions,
• Experiences, and associations with the brand.

• Strong brand equity translates into higher consumer loyalty, the

ability to charge premium prices, and an overall competitive
advantage in the marketplace.
Components of Brand Equity
1.Brand Awareness: The extent to which consumers are familiar with
the brand and can recognize it.
2.Brand Associations: The attributes, features, and qualities that
consumers associate with the brand.
3.Perceived Quality: The perception of the overall quality of the
brand’s products or services.
4.Brand Loyalty: The degree to which consumers consistently prefer
and purchase the brand over competitors.
5.Brand Assets: Patents, trademarks, and channel relationships that
enhance a brand's value
Challenges with Brands
• Savvy Customers
• Epinions.com
• Economic Downturns
• 18 percent of consumers reported that they had bought lower-priced brands
• 46 percent of the switchers to less expensive products
• 34 percent of the switchers said “they no longer preferred higher-priced
products.”

• Brand Proliferation
• a brand name may now be identified with a number of different products
with varying degrees of similarity
• Media Transformation
• Fragmentation

• Increased competition
• Greater accountability
5Ms of Advertising
How do you develop and execute a successful advertising plan?

1. Mission- What is your overall goal or objective

• Brand Awareness
• Driving Sales
• Generating Leads
• Promotions of new Products/services
• App promotion
• How is Specificity designed?

Who: Who is involved in this goal?

What: What do I want to accomplish?
Where: Where is this goal to be achieved?
When: When do I want to achieve this goal?
Why: Why do I want to achieve this goal?
• How do I measure/track it?
How many/much?
How do I know if I have reached my goal?
What is my indicator of progress?

• How do I achieve it?

Do I have the resources and capabilities to achieve the goal? If not,
what am I missing?
Have others done it successfully before?
• How do I make it Realistic?

Is the goal realistic and within reach?

Is the goal reachable, given the time and resources?
Are you able to commit to achieving the goal?

• Can I achieve them in a particular time frame?

Does my goal have a deadline?

By when do you want to achieve your goal?
• 2.Money- How much you are willing to spend on Advertising

The budget determines the scope and scale of your campaign

Cost Analysis- what is the effectiveness of different media channels
ATL
Outdoors
TVC
Radio
Newspaper
Cinema Advt
BTL
Direct mail
Sponsorships
in-store
promotions
TTL-Events
TTL-SMM
• 3.Message:- what do you want them to know, feel or do?

Clear
Concise
Compelling
• 4.Media:- Channel that
you will use to deliver
• 5.Measurement:- How will you know if your campaign is achieving
your goal

Brand awareness
Website Traffic
Sales lead
Sales
(Performance marketing)
5 M Model
Sales v/s Operational objective
• Sales broad objectives- covers What part-
Covers Desired outcomes in terms of revenue and customer growth

• Increasing annual sales and profit.

• Growing customer base.
• Boosting upsells and cross-sells.
• Improving customer retention rates.
• Shortening sales cycles.
• Increasing conversion rates.
• Enhancing sales rep productivity.
Sales operational objectives
• Prospecting—Searching for prospects, or leads.
• Targeting—Deciding how to allocate their time among prospects
• Communicating—About the company’s products and services.
• Selling—Approaching, presenting, answering objections, and closing
sales.
• Servicing—Providing various services to the customers and,
expediting delivery.
• Information gathering—Conducting market research
• Allocating—Deciding which customers will get scarce products during
product shortages.
• Operational objectives- covers How part
Covers streamlining processes, supporting sales activities
Effective use of resources

• Streamlining sales and fulfillment processes.

• Improving lead generation and qualification.
• Optimizing inventory management.
• Enhancing customer service and satisfaction.
• Reducing costs and waste.
• Implementing technology to automate tasks.
• Building strong relationships with vendors and suppliers.
AIM- Improve the effectiveness and efficiencies of internal processes to support sales goals
Scenario:

• An online clothing store, "Zara," aims to increase its annual sales by 20%. They currently have a
profit margin of 30% on each sale. However, they've identified inefficiencies in their order
fulfillment process, resulting in a 5% order cancellation rate. "Zara" wants to improve their
operational efficiency to reduce the cancellation rate by 2 % points (from 5% to 3%).

Question:

• Assuming the improved operational efficiency will not directly impact sales because of the
perception issue, (assume the current sales volume as Rs-1,000,000), what minimum increase
in the number of orders processed is required to achieve the 20% sales growth target, factoring
in the reduced cancellation rate?

• What steps will you take to correct the Operational efficiencies and Why?
•Desired Sales Volume=1,000,000×1.20=1,200,000
•Effective Sales Volume=1,000,000×0.95=950,000
Effective Sales Volume with Improved Cancellation Rate
Effective Sales Volume=1,200,000×0.97=1,164,000
Calculate the Minimum Increase in the Number of Orders Processed:
Current Effective Orders Processed: 950,000.
New Effective Orders Processed with Improved Efficiency: 1,164,000.
Difference in Effective Orders:
Difference in Effective Orders=New Effective Orders−Current Effective Orders
The difference in Effective Orders=1,164,000−950,000=214,000
DAGMAR-Russell Colley in a 1961
• “Defining advertising goals for measured advertising results”

• It’s a marketing model used to establish Four clear objectives for an

advertising campaign and measure its success
Awareness
• The model stresses defining the segment
Comprehension
of the market that the campaign seeks to reach
Conviction

Action/Motivation
Objectives of advertising in DAGMAR

• four basic requirements for evaluating the effectiveness of an

advertising campaign

Concrete and measurable tasks

Define the target audience or market

Identify the benchmark and the degree of change expected

Specify a period during which to accomplish the objective

Other Similar Models

Lavidge and Steiner (1961) suggested that the six steps can be split into three stages of consumer behavior:
The job of the advertiser is to promote the three behaviors.

Cognitive (thinking) so that the consumer becomes product aware and gathers product knowledge.
Affective (feeling) so that the consumer likes the product brand and has conviction in it.
Conative (behavior) so that the consumer buys the product brand
Brand Equity
• Brand equity is the added value endowed to products and services

• Marketers and researchers use various perspectives to study brand

equity

• Customer-based approaches view brand equity from the perspective

of the consumer—either an individual or an organization

How to build a strong brand question can be answered here

• Customer-based brand equity is thus defined as the differential effect
that brand knowledge has on consumer response
• There are 3 ingredients to CBBE
1) Differential effect- arises from differences in consumer response-
if there are no differences this means the product is a Commodity
or generic version of the product, here the main competition
happens on price

2) Brand Knowledge- differences in response are a result of

consumer’s brand knowledge, the thoughts, feelings, images,
experiences, and beliefs associated with the brand, as have Volvo
(safety), Hyundai (value), and Toyota (reliability).
3) Consumer response to marketing- customers’ differential responses,
which make up brand equity, are reflected in perceptions, preferences, and
behavior, for e.g, including choice of a brand, recall of copy points from an
ad, response to a sales promotion, etc..

Brand equity is reflected in perceptions, preferences, and behavior related to all

aspects of the marketing of a brand

Customers might be more accepting of a new brand extension for a brand

with positive customer-based brand equity

• Apple and Creative Technology e.g

• These branding effects occur in the marketplace too. For example, at one time,
Hitachi and General Electric (GE) jointly owned a factory in England that made
identical televisions for the two companies. The only difference was the brand
name on the television. Nevertheless, the Hitachi televisions sold for a $75
premium over the GE televisions. Moreover, Hitachi sold twice as many sets as
GE despite the higher price.
• Brand knowledge is the key to creating brand equity as per CBBE
concept and has two components
• Brand awareness – Is the strength of the brand node or trace in memory,
which we can measure as the consumer’s ability to identify the brand under
different conditions
• Brand image- perceptions about a brand, as reflected by the brand
associations held in consumer memory

• In other words, brand associations are the other informational nodes linked
to the brand node in memory and contain the meaning of the brand for
consumers

https://youtu.be/4eIDBV4Mpek?si=2EbH-Ii5dfcg-LJU
Mental Map and Brand resonance pyramid
• The Brand Resonance Pyramid is a framework that illustrates how brands build
and maintain relationships with customers. It's a hierarchical model that
progresses from basic brand awareness to a deep emotional connection

• The brand resonance pyramid helps to highlight some of the types of associations
and responses that may emerge from the creation of a mental map

• Mental mapping is a visual technique used to organize information, ideas, and

tasks around a central concept

• A mental map accurately portrays in detail all salient brand associations and
responses for a particular target market.
 What about you and me
Subdimensions Brand Building This is the ultimate relationship between
Model the customer and the brand, marked by
strong loyalty and active engagement

What about
Customers Emotional responses
you?
personal opinion towards the brand
about the brand

What are you?

Brand Meaning-> The personality
are you meeting of the brand
the expectation

Brand Identity WHO ARE YOU?

Brand resonance model- Rolex
The question answered is- “What
about you and me?”

Questions answered: "What about

you?" and "How do I feel about
you?"

Questions answered:
"What are you?" and
"What do you stand for?"

Questions answered at this level: "Who are you?"

and "What do you offer?"
• Research by Kellogg School of Management suggests that a wide
range of company activities can influence the extent to which
customers trust a company or brand in terms of three building blocks

1) Consumers tend to judge competence by thinking about how what

they experience with the company or brand is similar to or different
from what they have experienced with relevant comparison cases
2) Consumers tend to assess a brand’s or company’s honesty by
comparing company statements with company actions
3) Customers assess a brand’s or company’s benevolence
• Fair deal
• Understanding customer needs
What comes to your mind when you think of apple?
Brand Positioning
• Positioning means finding the proper “location” in the minds of a group
of consumers or market segment so that they think about a product or
service in the “right” or desired way to maximize potential benefits

• Brand positioning is at the heart of marketing strategy. It is the “act of

designing the company’s offer and image so that it occupies a distinct
and valued place in the target customer’s mind.

• Good brand positioning helps guide marketing strategy by clarifying

what a brand is all about,
How do we decide on positioning
• It requires a frame of reference (By identifying the target market and
nature of the competition)
• And optimal point of parity and point of difference brand
associations.
• Market need to know
(1) who the target consumer is,
(2) who the main competitors are,
(3) how the brand is similar to these competitors
(4) how the brand is different from them
Target market
• Target market is the set of all actual and potential buyers who have sufficient
interest in, income for, and access to a product.

• Market segmentation divides the market into distinct groups of homogeneous

consumers who have similar needs and consumer behavior, and who thus
require similar marketing mixes.

• Two types of segmentation Descriptive and Behavioral segmentation

• Behavioral segmentation bases are often most valuable in understanding

branding issues because they have clearer strategic implications
Segmentation bases
Descriptive or Customer-Oriented
Bases

Demographic/Geographic/
Psychographic/Firmographic (for
B2B markets)

Behavioral or Product-Oriented
Bases
Usage Rate/Loyalty Status/Benefits
Sought/Occasion:
• Benefit segment makes it clear what the ideal point-of-difference or
desired benefit
• Take the toothpaste market. One research study uncovered four main
segments
1. The sensory segment: Seeking flavor and product appearance
2. The sociables: Seeking brightness of teeth
3. The worriers: Seeking decay prevention
4. The independent segment: Seeking low price

• Given this market segmentation scheme, marketing programs could

be put into place to attract one or more segments
• The classic “funnel” model traces consumer behavior in terms of
initial awareness through brand-most-often-used.
For brand building, marketers want to understand both
(1) the percentage of the target market that is present at each stage
and
(2) factors facilitating or inhibiting the transition from one stage to the
next
Segmentation Criteria
• Identifiability: Can we easily identify the segment?
• Size: Is there adequate sales potential in the segment?
• Accessibility: Are specialized distribution outlets and communication
media available to reach the segment?
• Responsiveness: How favorably will the segment respond to a
tailored marketing program
Profitability
 Segmentation on Customer life cycle
• To improve the profitability of its customer base, drugstore chain CVS considered the
role of beauty products for its customers at three distinct stages of life, producing
below personas:
• Caroline, a single 20-something, is relatively new to her career and still has an active
social life. She is an extremely important beauty customer who visits the chain once
a week. Her favorite part of shopping is getting new beauty products, and she looks
to CVS to help her cultivate her look at a price she can afford.
• Caroline will grow into Vanessa, the soccer mom with three children; she may not
be as consumed with fashion as she once was, but preserving her youthful
appearance is definitely still a major priority. She squeezes in trips to the store en
route to or from work or school, and convenient features such as drive-through
pharmacies are paramount for Vanessa.
• Vanessa becomes Sophie. Sophie isn’t much of a beauty customer, but she is CVS’s
most profitable demographic—a regular pharmacy customer who actively shops the
front of the store for key OTC items.
Nature of Competition
• In the Brand positioning criteria- It is important to understand the
markets where consumers can be profitably served
• Indirect competition- When we talk about competition, it's not just
about two similar products going head-to-head, like Coke vs. Pepsi.
Sometimes, a product can compete with something completely
different because they both offer similar benefits to the customer
• Multiple frames of reference- when the same function can be
performed by different types of products- e.g. Starbucks with local
cafe, supermarket brands,
Point of parity and point of
difference
• Points-of-difference (PODs) are formally defined as attributes or
benefits that consumers strongly associate with a brand, positively
evaluate, and believe that they could not find to the same extent with
a competitive brand

• Points-of-parity associations (POPs), on the other hand, are not

necessarily unique to the brand but may in fact be shared with other
brands.
• There are three types: category, competitive, and correlational
• Category Points-of-Parity (POPs). They are the basic features that
make a brand belong to a certain category. For example, when you
think of a bank, you expect it to offer things like checking and savings
accounts, ATM services, and safe deposit boxes. If a bank doesn’t
have these, you might not even consider it a real bank.
• Competitive Points-of-Parity are the things a brand does to make
sure it doesn’t fall behind its competitors. If a competitor has
something special, a brand tries to offer the same or similar features
so that it doesn’t lose out
• Correlational Points-of-Parity are when having one good thing might
make it hard for people to believe the brand can also be good at
something else
Brand elements and guidelines
• A brand element provides a positive contribution to brand equity

• Brand elements, sometimes called brand identities, are those

trademarkable devices that serve to identify and differentiate the
brand. The main ones are brand names, URLs, logos, symbols,
characters, spokespeople, slogans, jingles, packages, and signage

• The customer-based brand equity model suggests that marketers

should choose brand elements to enhance brand awareness;
facilitate the formation of strong, favorable, and unique brand
associations; or elicit positive brand judgments and feelings
CRITERIA FOR CHOOSING BRAND ELEMENTS

1. Memorable- Nike
2. Meaningful- Apple/Discovery/Amazon
3. Likable –Coca-Cola
4. Transferable/Apply across various
Categories - Virgin
5. Adaptable – evolve with time- Google
6. Protectable- defended against
infringement-McDonald's "Golden Arches"
Brand Elements
• Brand Names- The brand name is a fundamentally important choice
because it often captures the central theme or key associations of a
product in a very compact and economical fashion
• It is so closely tied to the product in the minds of consumers,
however, the brand name is also the most difficult element for
marketers to change
• Naming Guidelines. Selecting a brand name for a new product is
certainly an art and a science.
• Like any brand element, brand names must be chosen with the six
general criteria of memorability, meaningfulness, likability,
transferability, adaptability, and protectability in mind.
Note: Brand element class
activity covered Broadly
the details about it
3 Building & Measuring Brand
Equity
• Indirect channels- Retailers tend to have the most visible and direct
contact with customers and therefore have the greatest opportunity to
affect brand equity.
• Consumers make assumptions such as “this store only sells good-
quality, high-value merchandise, so this particular product must also be
good quality
• Besides the indirect avenue of image transfer, retailers can directly
affect the equity of the brands they sell. Their methods of stocking,
displaying, and selling products can enhance or detract from brand
equity, suggesting that manufacturers must take an active role in
helping retailers add value to their brand.
 Marketers can devote their selling efforts to the channel members
themselves, providing direct incentives for them to stock and sell
products to the end consumer. This approach is called a push strategy

 Push Strategy: This involves promoting products by "pushing" them

onto customers through distribution channels. The goal is to get the
product into the hands of the consumer by creating supply chain
demand.
 Pull Strategy: Here, the focus is on "pulling" customers towards the
product through advertising and promotional efforts, creating demand
directly from consumers, which in turn encourages retailers to stock the
product
IMC
• Marketing communications are how firms attempt to inform,
persuade, and remind consumers—directly or indirectly—about the
brands they sell.
• In a sense, marketing communications represent the voice of the
brand and are a means by which the brand can establish a dialogue
and build relationships with consumers
Marketing
Communications
Options
Integrated Marketing
Communications (IMC)
IMC is about coordinating and integrating all marketing communication
tools, avenues, and sources within a company into a seamless program.
This ensures that all messages communicated to consumers are
consistent and reinforce the brand's image, thereby building stronger
brand equity
How Integrated Marketing Communications (IMC) is Done
 Understand the Target Audience: Start by deeply understanding who your target audience is, including
their demographics, preferences, and behaviors.
 Define Clear Objectives: Determine what you want to achieve with your IMC strategy. Objectives may
include increasing brand awareness, driving sales, or enhancing brand loyalty.
 Develop a Consistent Brand Message: Unified Message and Tone
 Choose and Integrate Communication Channels: Select the appropriate mix of communication
channels
 Coordinate and Execute the Campaign: Cross-functional collaboration
 Monitor and Measure Results: Use analytics and feedback tools to monitor the performance of the
IMC campaign across all channels.
 Adjust as Needed: Based on the data, make necessary adjustments to the campaign to improve
effectiveness.
 Continuous Feedback and Improvement: IMC is not a one-time effort but an ongoing process.
Developing IMC programs
• 6C’s – criteria for IMC programs
1. Coverage-how well a marketing message reaches the right people and how the
different ways of sending that message work together to make sure everyone
knows about the product or brand
2. Contribution – marketing communications can play many different
roles, like building awareness, enhancing the image, eliciting
responses, and inducing sales, and the contribution of any marketing
communication option will depend on how well it plays that role
3. Commonality- (common information conveyed by different
communication) Regardless of which communication options marketers
choose, they should coordinate the entire marketing communication
program to create a consistent and cohesive brand image in which
brand associations share content and meaning.
4. Complementarity- different ways of promoting a brand (like ads, samples, or events)
work better when used together rather than alone. Each method highlights various aspects
of the brand, and when combined, they strengthen the overall message and impact

Imagine you're trying to get people to try a new chocolate brand:

1. Sampling: You give out free samples at a supermarket. This gets people to taste the
chocolate and might convince them to buy it immediately.
2. Advertisements: You also run ads on TV and social media, talking about how delicious and
high-quality the chocolate is. This builds awareness and creates a positive image of the
brand.
3. In-Store Promotions: In the store, there’s a special offer—buy one, get one free. This
encourages more people to buy the chocolate because they feel they’re getting a good
deal.
5. Conformability in marketing refers to how well a particular marketing
message works for different groups of people, regardless of their previous
exposure to other marketing messages.
• There are two key aspects:
1.Communication Conformability: This is about how a marketing message can
be effective whether someone has already seen other ads or promotions for
the brand or if it's their first time hearing about it. The message should still
make sense and have the desired impact on both groups.
2.Consumer Conformability: This refers to the ability of the marketing message
to resonate with different types of consumers, regardless of their past
experiences with the brand's communications.
e.g. Apple is known for creating marketing campaigns that are highly conformable. When they
launch a new iPhone, their marketing messages work effectively for both existing Apple
customers and those new to the brand.
1.Communication Conformability:
1. For Existing Customers: Apple’s ads highlight the latest features and improvements, like
better camera quality or new software capabilities, which resonate with people who are
already familiar with the brand and its products.
2. For New Customers: The same ads explain the benefits of the iPhone in a simple and
appealing way that attracts people who may not have used an Apple product before.
The messaging is clear and compelling, regardless of the viewer’s prior knowledge of the
iPhone.
2.Consumer Conformability:
1. Diverse Audience Appeal: Apple’s campaigns appeal to a broad audience, from tech
enthusiasts to casual users, ensuring that the message is relevant whether the consumer
is looking for cutting-edge technology or a reliable, easy-to-use smartphone.
Indirect and Direct Measures of
Brand Equity
• Customer-Based Brand Equity (CBBE) is a way to understand how a brand
is valued by its customers. It focuses on how well customers know and
feel about the brand, and how this affects their reactions to the brand's
marketing efforts
Two Approaches to Measuring Brand Equity
1.Indirect Approach:
This approach looks at what customers know and think about the brand. It involves
assessing all the associations people have with the brand, like their thoughts,
feelings, and beliefs. For example, if a brand is known for being high-quality, the
indirect approach would measure how strongly customers believe in this quality.
Example: A survey might ask customers what comes to mind when they think of the
brand, helping the company understand the brand's image in their minds.
Direct Approach:
• This approach measures how brand knowledge influences customer
behavior. It looks at how the way customers think about the brand
affects their actions, like whether they choose the brand over
competitors, how much they are willing to pay, or how loyal they are
to the brand.
• Example: A company might compare the sales of two products—one
with a strong brand name and one without—to see how much the
brand name influences customer purchases
Qualitative Research
• Qualitative research techniques is used to identify sources of brand
equity such as brand awareness, brand attitudes, and brand
attachment. These techniques also can identify outcomes of brand
equity such as price elasticities and brand choice and preference.
• There are many different ways to uncover the types of associations
linked to the brand and their corresponding strength, favorability,
and uniqueness.
• Qualitative research techniques often identify possible brand
associations and sources of brand equity. These are relatively
unstructured measurement
• Projective techniques are diagnostic tools to uncover the true
opinions and feelings of consumers when they are unwilling or
otherwise unable to express themselves on these matters.
• Marketers present consumers with an incomplete stimulus and ask
them to complete it, or they give consumers an ambiguous stimulus
and ask them to make sense of it. The idea is that in the process
consumers will reveal
Neural Research Methods
• Neural research methods study brain activity to understand consumers'
subconscious responses to marketing, such as using fMRI to see which brain
regions activate when a consumer sees a brand logo, revealing emotional
connections.
Zaltman Metaphor Elicitation Technique (ZMET)
• ZMET is a qualitative research method that explores consumers' deep,
subconscious thoughts by analyzing the metaphors they use. For example,
participants might bring images that represent how they feel about a
brand, and these images are then analyzed to uncover hidden perceptions
and emotional drivers.
Exploratory Research

The brand exploratory phase is crucial for understanding how consumers

perceive a brand, which can be different from the marketer's intended
perception
1. Review Existing Research- Collect and analyze all available research reports
related to the brand. This includes both recent studies and older reports that
might provide historical insights.
2. Conduct Internal Interviews- Interview key internal personnel, including
past and current marketing managers, product developers, and sales teams.
3. Identify Gaps and Inconsistencies- Compare findings from existing research
and internal interviews to identify any discrepancies between internal beliefs
and actual consumer perceptions.
4. Conduct Qualitative Research- Use qualitative research methods like
focus groups, in-depth interviews, and ethnographic studies to explore
consumer attitudes, feelings, and behaviors towards the brand.
5. Follow-Up with Quantitative Research- Develop and administer
surveys to gather quantitative data that can validate the qualitative
findings.
6. Synthesize Findings- Integrate the insights from qualitative and
quantitative research to form a comprehensive understanding of the
brand's equity and any potential barriers.x`
One useful outcome of
qualitative research is a mental
map. A mental map accurately
portrays in detail all salient
brand associations and
responses for a particular
target market
QUANTITATIVE RESEARCH
TECHNIQUES
• Some say qualitative research strives to uncover and discover, while
quantitative research aims to prove or disprove.
• Whereas qualitative research typically elicits some type of verbal
response from consumers, quantitative research typically employs
various types of scale questions from which researchers can draw
numerical representations and summaries
• Tracking Research is also commonly referred to as Continuous
Research or Longitudinal Research. These terms highlight the
ongoing or repeated nature of data collection over time, allowing
businesses to observe changes and trends in consumer behavior,
brand perception, and market dynamics
Experimental approaches
• Experimental approaches in marketing involve systematically
manipulating one or more variables to observe their effects on
consumer behavior or market outcomes. This method is rooted in the
scientific process, where a hypothesis is tested by controlling certain
factors (independent variables) and measuring their impact on
outcomes of interest (dependent variables).
Key Aspects of Experimental Approaches

1. Controlled Environment
Experiments are often conducted in a controlled setting to isolate the effect of the variables being tested.
This could be in a lab, in the field, or even online.

2. Manipulation of Variables
The researcher manipulates one or more variables to see how changes affect consumer behavior. For
example, in a marketing experiment, a company might test different price points, advertising messages, or
packaging designs.

3. Random Assignments
Participants are randomly assigned to different experimental groups to ensure that any observed effects
are due to the manipulation of the variables and not to pre-existing differences between participants.

4. Measurement of Outcomes
The impact of the manipulated variables is measured through various means, such as sales data,
customer satisfaction surveys, or brand perception metrics.
1. A/B Testing: One of the most common experimental approaches, A/B testing involves
comparing two versions of a marketing asset (like a webpage, email, or ad) to see which
performs better. For example, a company might test two different headlines in an email
campaign to determine which one leads to more clicks.
2. Field Experiments: These are experiments conducted in a real-world setting. For
instance, a retailer might test the impact of a new store layout on customer spending by
implementing the layout in a few stores and comparing results with stores that maintain
the old layout.
3. Test Markets: Before rolling out a new product nationwide, a company might introduce
it in a few test markets to see how it performs. The feedback and sales data from these
markets can help the company refine its marketing strategy.
4. Conjoint Analysis: This technique helps marketers understand how consumers value
different attributes of a product or service. By presenting consumers with various
combinations of features and asking them to choose or rank them, marketers can
Benefits of Experimental
Approaches
• Causal Inference: Unlike observational studies, experiments allow
marketers to establish cause-and-effect relationships between
variables.
• Data-Driven Decisions: Experimental results provide concrete
evidence that can guide marketing strategies, making them more
effective and targeted.
• Optimization: By continually testing and refining marketing elements,
companies can optimize their efforts for better results.
Experiential Marketing
• The rapid expansion of the Internet and continued fragmentation of
mass media have brought the need for personalized marketing into
sharp focus

• The modern economy celebrates the power of the individual

consumer

• To adapt to the increased consumer desire for personalization,

marketers have embraced concepts such as experiential marketing
and relationship marketing
• “Experience Economy,” a new economic era in which all
businesses must orchestrate memorable events for their
customers
• If you charge for stuff, then you are in the commodity business.
• If you charge for tangible things, then you are in the goods
business.
• If you charge for the activities you perform, then you are in the
service business.
• If you charge for the time customers spend with you, then and
only then are you in the experience business
• “Experiential marketing is usually broadly defined as any form of
customer-focused marketing activity, at various touchpoints, that
creates a sensory-emotional connection to customers
Five different types of marketing experiences that are becoming
increasingly vital to consumers’ perceptions of brands:
• Sense marketing appeals to consumers’ senses (sight, sound, touch, taste,
and smell).
• Feel marketing appeals to customers’ inner feelings and emotions,
ranging from mildly positive moods linked to a brand (e.g., for a non-
involving, nondurable grocery brand or service or industrial product) to
strong emotions of joy and pride (e.g., for a consumer durable, technology,
or social marketing campaign).
• Think marketing appeals to the intellect in order to deliver cognitive,
problem-solving experiences that engage customers creatively.
• Act marketing targets physical behaviors, lifestyles, and interactions.
• Relate marketing creates experiences by taking into account individuals’
desires to be part of a social context (e.g., to their self-esteem, being part of
a subculture, or a brand community).
Here are examples of each type of marketing experience
1.Sense Marketing: Apple’s product design and packaging appeal to sight
and touch, creating a premium feel.
2.Feel Marketing: Coca-Cola’s “Share a Coke” campaign evokes emotions
of happiness and connection.
3.Think Marketing: IBM’s “Smarter Planet” campaign engages customers
intellectually by presenting innovative solutions to global challenges.
4.Act Marketing: Nike’s “Just Do It” campaign inspires people to adopt an
active lifestyle and be more physically engaged.
5.Relate Marketing: Harley-Davidson builds a strong brand community
where customers feel they belong to a subculture of freedom and
rebellion.
• Customers want to be entertained and be affected emotionally

• Experience providers - Communications, visual/verbal identity and

signage, product presence, co-branding, spatial environments,
electronic media, and salespeople can become part of a marketing
campaign to create these experiences
• Relationship Marketing- Marketing strategies must transcend the
actual product or service to create stronger bonds with consumers
and maximize brand resonance.
• This broader set of activities is sometimes called relationship
marketing and is based on the premise that current customers are the
key to long-term brand success.
• Relationship marketing attempts to provide a more holistic,
personalized brand experience to create stronger consumer ties
Here are just a few of the basic benefits relationship marketing
provides

• Acquiring new customers can cost five times as much as satisfying and
retaining current customers.
• The average company loses 10 percent of its customers each year.
• A 5 percent reduction in the customer defection rate can increase
profits by 25–85 percent, depending on the industry.
• The customer profit rate tends to increase over the life of the retained
customer
Brand Equity measurement system
• A brand equity measurement system is a set of research procedures
designed to provide timely, accurate, and actionable information for
marketers so that they can make the best possible tactical decisions
in the short run and the best strategic decisions in the long run.
• Implementing such a system involves three key steps—conducting
brand audits, designing brand tracking studies, and establishing a
brand equity management system
• A brand audit is a comprehensive examination of a brand to assess its
health, uncover its sources of equity, and suggest ways to improve
and leverage that equity. A brand audit requires understanding
sources of brand equity from the perspective of both the firm and the
consumer
• Brand tracking studies collect information from consumers on a
routine basis over time, typically through quantitative measures of
brand performance on a number of key dimensions marketers can
identify in the brand audit or other means
• Brand equity management system is a set of organizational processes
designed to improve the understanding and use of the brand equity
concept within a firm. Three major steps help implement a brand
equity management system: creating brand equity charters,
assembling brand equity reports, and defining brand equity
responsibilities.
Brand Audit: Coca-Cola regularly conducts brand audits to assess how people perceive their brand. They look at things like:
• Brand Recognition: How well do people recognize the Coca-Cola logo and colors?
• Customer Loyalty: Are people choosing Coca-Cola over other soft drinks?
• Brand Associations: What do people think of when they hear "Coca-Cola"? (e.g., happiness, refreshment, togetherness)

In their audits, Coca-Cola might discover that people associate their brand with happy moments like parties and family
gatherings. This helps them understand what makes their brand strong.
Brand Tracking Studies: Coca-Cola uses brand tracking studies to keep track of their brand’s performance over time. For example:
• They might regularly survey customers to see if they still think of Coca-Cola as the "go-to" drink for celebrations.
• They track sales data to see if more or fewer people are buying Coca-Cola each month.

These studies help Coca-Cola understand trends, like whether their new marketing campaign is making people more likely to buy
their drink.
Brand Equity Management System: Coca-Cola has a detailed plan to manage its brand. This includes:
• Brand Equity Charters: Documents that outline the brand's goals and how to achieve them.
• Brand Equity Reports: Regular updates on how the brand is performing, shared with everyone in the company so they know
how to keep the brand strong.
• Brand Equity Responsibilities: Specific roles and responsibilities assigned to different teams to make sure everyone knows
their part in building and maintaining the brand.
Revitalizing Brands
• In virtually every product category are examples of once prominent
and admired brands that have fallen on hard times or even
completely disappeared.
• Often, the first place to look in turning around the fortunes of a brand
is the original sources of brand equity
• In profiling brand knowledge structures to guide repositioning,
marketers need to accurately and completely characterize the
breadth and depth of brand awareness.
• Sometimes the positioning is still appropriate, but the marketing
program is the source of the problem because it is failing to deliver on
it. In
Brand equity framework
1. Expand the depth or breadth of brand awareness, or both, by
improving consumer recall and recognition of the brand during
purchase or consumption settings.

2. Improve the strength, favorability, and uniqueness of the brand

associations making up the brand image. This may require programs
directed at existing or new brand associations
Depth of Brand Awareness:
• Depth refers to how easily consumers can recall or recognize a brand. The goal is
to ensure the brand comes to mind quickly and automatically when consumers
are considering a purchase in its category.
• Breadth of Brand Awareness:
• Breadth refers to the range of purchase or consumption situations where the
brand is recognized or relevant. Brands can expand their breadth of awareness by
positioning themselves in a variety of situations.
Depth Expansion: Coca-Cola consistently focuses on making its brand top of mind.
Through extensive advertising (TV, billboards, online ads), consumers can instantly
recall Coca-Cola when thinking about beverages, particularly soft drinks.
Breadth Expansion: Coca-Cola also expands the breadth of its awareness by
associating itself with a wide range of consumption occasions.
Global Branding Strategies
• A number of well-known global brands have derived much of their sales and
profits from non-domestic markets for decades, including Coca-Cola, Shell, Bayer,
Rolex, Marlboro, Pampers, and Mercedes-Benz
• Apple computers, L’Oréal cosmetics, and Nescafé instant coffee have become
fixtures on the global landscape. Their successes are among the forces that have
encouraged many firms to market their brands internationally, including the
following:
• Perception of slow growth and increased competition in domestic markets
• Belief in enhanced overseas growth and profit opportunities
• Desire to reduce costs from economies of scale
• Need to diversify risk
• Recognition of global mobility of customers
ADVANTAGES OF GLOBAL
MARKETING PROGRAMs
• OREO In launching its Oreo brand of cookies worldwide, Kraft chose to adopt a
consistent global positioning, “Milk’s Favorite Cookie.” Although not necessarily
highly relevant in all countries, it did reinforce generally desirable associations like
nurturing, caring, and health. To help ensure global understanding, Kraft created a
brand book with a CD in an Oreo-shaped box that summarized brand management
fundamentals—what needed to be common across countries, what could be
changed, and what could not. In time, differences emerged across markets. In China,
the original cookie is less sweet than in the United States and has different fillings,
such as green tea ice cream, grape– peach, mango–orange, and raspberry–
strawberry. In an example of reverse innovation, Kraft has actually successfully
introduced some of these Oreo flavors into other countries. Oreo is also making a
big push in India, where it is just entering the market and facing stiff competition
from major local brands there, such as Parle, Britannia, and Sunfeast. Launch ads
reflected Oreo’s updated global positioning based on moments of togetherness and
featured a father and son in the “twist, lick, dunk” ritual. Social media has Indian
parents sign an “Oreo Togetherness Pledge” promising to spend more quality time
with their children. An Oreo Togetherness Bus roams the country providing a
platform for parents and children to catch fun family moments. Thanks to
international marketing acumen, Oreo now is a $2 billion global brand for Kraft, with
23 million members in its Facebook community
Media Class and Media Vehicle
• Media Class- This refers to the broad categories or types of media
channels used in advertising. These are the main classes or
categories where advertisements can be placed to reach the target
audience.
• Television
• Radio
• Print media (e.g., newspapers, magazines)
• Digital media (e.g., social media platforms, websites)
• Out-of-home (OOH) advertising (e.g., billboards, transit ads)
• Direct mail The choice of media class depends on factors like the target
audience, budget, and marketing objectives.
• Media Vehicle- A media vehicle is a specific option within a
media class that can be used to deliver the advertisement.
For example
• In television, a vehicle could be a specific TV channel or
program (e.g., advertising during a prime-time TV show).
• In print media, a vehicle could be a specific newspaper or
magazine (e.g., a full-page ad in The Times of India).
• In digital media, vehicles include specific websites, blogs, or
social media platforms (e.g., Facebook, Instagram, or specific
influencer accounts).
Broadcast Vehicles

• This includes television and radio stations. Such vehicles can be used
to target mass audiences, and the cost per target is low.
• They are more effective than print media as the ads include audio and
video. They can be effectively used for low-involvement products
because of short ad durations and lack of excessive detail-sharing.
• Television vehicles in India include networks such as STAR India,
Network 18, Zee Network, UTV, etc. Sometimes, small businesses can
not afford to advertise on national networks, so they often associate
themselves with local network affiliate stations or radio vehicles
Print Vehicles

• Newspapers are also feasible for small businesses owing to relatively

low ad costs.
• Both national newspapers and community newspapers (that can
reach a local audience) are good options.
• Magazines are not quite as accessible for small businesses as they
cater to a niche audience and cost per target is therefore high.
• However, some regions have local magazines that offer community
events, entertainment, and themed topics
Digital Vehicles and Others

• Online or digital/interactive vehicles along with mobile

communication opportunities provide low-cost advertising options.
• Other supportive media vehicles include directories, buses, billboards
and benches.
• These are usually used to reinforce messages that have been
delivered through broader mass media. Billboards are comparatively
expensive, but they have a very wide reach.
Techniques to acquire customer-Digital space
Option Scheduling
• Option Scheduling decisions in the context of media planning and
advertising refer to the process of determining the timing and pattern
of media placement to maximize the effectiveness of an advertising
campaign
• These decisions involve selecting when and how frequently ads
should be run to reach the target audience efficiently while optimizing
the use of the advertising budget
Key elements of scheduling
• Continuity scheduling- Ads are run continuously throughout the year
or over a specific period with little to no break
• This is often used for products with no seasonal demand fluctuations
e.g., household items like toothpaste
• This is to ensure a constant presence in front of the audience,
maintaining brand awareness
• Flighting- Ads are scheduled in intervals with periods of heavy
advertising called "flights“ followed by periods of no advertising.
• This method is common for products with seasonal demand/Festivity
demand
e.g., Cold beverages/Ice-cream brands, and winter clothing.
• Helps concentrate efforts when demand is high, saving budget during
low-demand periods
• Pulsing- Combines continuity and flighting, where ads are run
continuously but with heavier advertising during peak times.
• This approach is used when a brand needs a year-round presence but
wants to boost advertising during certain times
e.g., soft drink ads year-round but increasing during summer.
• Balances brand presence and budget efficiency.
• Dayparting- Scheduling ads based on the time of day when the target
audience is most likely to be consuming media.
• For example, radio ads may be more effective during rush hour, while
TV ads might be scheduled during prime time. (Zomato, Swiggy)
• Ads on Google platform and Social media platforms are based on day-
parting
• Ensures the ad is delivered when the target audience is most engaged
with the media.
• Seasonality- Scheduling ads based on the seasonal patterns of
product demand or consumer behavior.
• This is relevant for products like holiday gifts, back-to-school items, or
summer vacation promotions.
• Aligns ad efforts with periods of peak consumer interest or need
• An advertising agency is an independent business, composed of
creative and business people who develop, prepare, and place
advertising in advertising media for sellers seeking to find customers
for their goods or services
Types of Advertisement

Trade Advertising- Aimed at retailers to create brand

awareness and increase product stocking in retail stores.
• Objectives include ensuring maximum distribution and
achieving prime shelf space through advertising and trade
incentives.
• Helps promote products and support sales teams by building
demand among resellers.
Industrial Advertising- Directed at manufacturers and
industrial buyers of machinery, equipment, and raw materials.
• Uses industry publications, direct mail, phone, internet, and
trade fairs as media.
• Targets a specialized, smaller audience of experts, providing
detailed product information.
• Reduces personal selling costs and accelerates sales
Professional Advertising- Targets professionals like architects,
engineers, and medical consultants, who make purchase
decisions for their clients.
• Uses media such as professional journals, direct mail, and
occasionally mass media.
• These professionals are not the final consumers but play a
key role in purchasing decisions.
Corporate or Institutional Advertising
• Focuses on building the company's image, not promoting
specific products.
• Often linked with public relations efforts, such as
sponsorships of major events.
• Helps build brand credibility and maintains positive
perceptions of the company
Non Product advertisement
• Idea Advertisement- This advertisement is often used to
influence special interest groups and sway public opinion.
Environmental issues population explosion, declining natural
resources, road safety measures, child labor human rights,
dowry, equal status for women etc…
• Service Advertisement- We live in a complex society that
needs innumerable services – Medical, healthcare, financial
educational services etc…
Functions of Advertisement
 Mass Communication- Advertising serves as a communication tool, delivering
key messages to target audiences.
 Changing Mental States- Ads help change the psychological state of the
audience, influencing their perceptions and predispositions toward a product or
service.
Hierarchy-of-Effects Model
 The model suggests that consumers go through sequential steps, from
awareness to purchase, and advertising helps move them through these stages.
 The steps include- Awareness, Knowledge, Liking, Preference, Conviction, and
finally Purchase.
 Ads are effective if they push consumers toward making a purchase, even if not
immediately.
Hierarchy-of-Effects Model
Precipitation, Persuasion, Reinforcement and Reminder

• Stimulates Demand- Advertising informs consumers, arouses latent needs, and

increases overall consumption (e.g., Coca-Cola ads driving year-round demand).
• Strengthens Promotion Mix- Ads pre-sell products, aiding sales teams by creating
a predisposed audience (e.g., automobile ads supporting dealership sales).
• Develops Brand Preference- Persuasive ads encourage brand trials and create
loyalty (e.g., Apple’s consistent launch/messaging creates brand loyalty).
• Cuts Costs- Increased unit sales from ads reduce per-unit production and selling
costs (e.g., bulk sales lowering manufacturing expenses).
• Lowers Prices- By reducing unit costs, ads enable companies to lower prices and
penetrate deeper into markets (e.g., online retailers lowering prices due to high ad-
driven sales).
• Competitive Weapon- Ads differentiate products and counter competition (e.g.,
Pepsi vs. Coca-Cola’s advertising rivalry)
• Provides Information- Ads inform consumers about product availability and
benefits (e.g., pharmaceutical ads detailing drug benefits and risks).
• Builds Brand Image- Ads shape favorable brand perceptions and reinforce loyalty
(e.g., Nike's "Just Do It" campaign reinforcing athletic empowerment).
• Encourages Innovation- Ads support product innovation by driving demand for
new offerings (e.g., Tesla ads promoting electric vehicle innovations).
• Expands Media Growth- Ads support media channels, enabling more diverse
content (e.g., TV ad revenue sustaining programming costs)