2nd preference

7/29/2019 2nd Preference.

1/14

BRANDING

What is a Brand?Brand is more than a name of a symbolIt is physical and psychological attribute of a product which a

consumer perceivesExp:Thums Up/Coke

BrandA product is made in the factory, abrand is something that is bought by acustomer. A product can be copied by acompetitor, a brand is unique. Aproduct can be quickly outdated; asuccessful brand is timeless.

-Stephen King

BrandBuildings age and become dilapidated, Machines wear out, People die, But what lives onare Brands

How are Brands Different from Products?Products BrandsGeneric Unique, DistinctEasy to copy Can not be copiedFunctional Emotional, FunctionalConcrete, Rational Conceptual, Perceived

Transaction oriented Relationship orientedDescribes What Describes What & Who

Example:Product : COLAA refreshing effervescent,sugary carbonated beverage

BrandCOKEHappiness, togetherness, memories,the colour Red, The Real Thing, The

Thanda

PEPSIYoung, youthful, aspirations, trendy,more out of life, next generationThums UpStrong, macho, daring, bold, grownup,thrill, adventure


2/14

Strong Brand.A strong brand is a product / service/person/place,augmented in such a way that the buyer or user

perceives relevant, unique added values which match theirneeds most closely.Furthermore its strength results from being able to sustain

these added values in the face ofcompetition.

Successful BrandsShould deliver benefitsSome intangibles besides tangible benefitsMust be consistent with its personalityBenefits offered must be relevant to the customer

Why Build Brand?

Buyers BenefitsCriteria to Evaluate an offer (Knowledge about the offer)Predictable Satisfaction during Re-buyKnowledge of source (Whom to Complain!)Sellers BenefitsOperational EaseSegmentationLegal Protection

Why Build Brand? Brands are major equity in most marketing

companiesExp:Nike

Consumers perceives brands as higherquality more reliable and a better value

Branding helps the consumersto simplify the decision

Separates you from your competitors

Brand differentiates your product by making a promise toconsumerUjala-Char bundonwala

Brands Command higher pricesExp:Woodland shoes


3/14

Brand generates loyaltyTherefore, it generates a recurring stream of profit throughrepeat salesExp:Dettol / Fevicol

A brand without loyal customer base is vulnerableA brand with loyal customer base represents a substantialbarrier to competitors & cost of changing loyalty is higher

Provide resilience in times of negativepress.

Enable to launch new products morequickly and cost effectively.Sometimes licensed to other marketers - Walt Disney

characters

Brands Provide Mental Patents

Brand commands better shelf space,better visibility and better co-operation atthe retail outlet

Brands Enhance Marketing Programs

Brands Attract Employees

Why Build Brand? Brands Increase Value

Brands Allow MistakesBrand as a point of referenceGet me a Xeroxof..Aquaguard ka pani hai.EkNestle ki cadbury dena..TVS nai luna ai haiEkBisleri dena

----------------------------------------------x------------------------------------------------------------

TEN CHARACTERISTICS OF THE WORLD'S STRONGEST BRANDS

1.The brand excels at delivering the benefits customers truly desire2.The brand stays relevant


4/14

3.The pricing strategy is based on consumer's perceptions of value4.The brand is properly positioned5.The brand is consistent:6.The brand portfolio and hierarchy make sense7.The brand makes use of and coordinates a full repertoire of marketing activities to build equity8. The brands managers understand what the brand means to consumers:9.The brand is given proper support, and that support is sustained over the long run10.The company monitors sources of brand equity

Business (Market)

Producer Marketing activities Consumer/Buyer

Marketing Mix

COMMUNICATION(The origin of the word)

Communicare - Share(Latin)

Communis - Common(French)

Communicate - Impart,Transmit,Share(Concise Oxford Dictionary)COMMUNICATION

COMMUNICATION

Sender Message Receiver

CommunicationVerbal/OralWrittenBody language

GLOBAL COMMUNICATION BARRIERSCulture & Language DifferencesDifference in Perception

Assumption & Pre-conceived ideasDifference in Consumer BehaviourLack of knowledge about the subjectDifference in physical attributes

A Lengthy ChannelPolitical BarrierSocial/Ethical BarrierEconomical Barrier


5/14

Integrated Communication

Know the Company/Organization/HeritageIntegrated CommunicationKnow the Product/BrandTarget AudienceWhat does the Market sayHow am I different or How do I communicate differentlyCommunication ObjectiveOur Communication StrategyHow do I reach Target Audience Effectively

ThroughIntegrated Communication

Using The Communication Tools

AdvertisingPrint & Electronic

Merchandising

Direct Marketing

Public Relation

Events & Exhibition

Outdoor

The 360 Degree Brand Experience

What is 360 DegreeTotal Surround ExperienceWherever the consumer goes he is hit by our communication

Why is it required?The era of overdose of communicationClutterIt is necessary that you create a top of mind awareness.Different Target AudienceCost Effective

Why is it required?From the time the consumer sees your ad to the time he purchases the product a lot of changeGives a big brand feel

Essence of 360 DegreeThe main brand thought-single thought should be carried across all mediums.

----------------------------------------------x------------------------------------------------------------


6/14

The New Indian Consumer

Customer ?Definition: [n] someone who pays for goods or services.

Customer:The King

Communication

CUSTOMERInternal(The Seniors/Peers,etc)

External(Customers/Stake holders,etc)

Who am I?Ambassador of the organisationGoodwill/ Image generatorSales GeneratorCo-ordinator and a very important

team memberWhat a good Corporate Communication CanBuild Image and gain respectCreates Goodwill

Attract Finance and InvestmentsCreates Stock EquityHelps during crisisBuilds Brand Equity

Attract talentsUnifies Diverse groupWhat a good Corporate Communication CanMarketing Department Lower Marketing CostsSales Department High Market ShareFinance Department Access to FundsHuman Resource Department- Easier retention of staff .Access people at lower

cost

PROFIT = SALES - COST


7/14

The New Indian ConsumerThe New Indian Consumer

The market construct has changed from asuppliers market to a buyers market

The New Indian Consumer

The me too syndrome is no longer validas consumer seek customized productsThe New Indian Consumer

The consumer has more choices anda result of it he spends more andexperiments moreThe New Indian Consumer

A change consumer because of:

A huge increase in high income groups

Spend now save later mentality leadingto higher disposable incomeThe New Indian ConsumerThe consumer wants to be treated asan individual-not as a part of alarge physical mass and looks for apost buy relationship to enhancethe value of her brand decisionmakingThe New Indian ConsumerExposure to international concepts

leading to the development of global consumerwith a taste for new and exotic,increased healthconsciousness,leisure and entertainmentneeds,power of choice,metro sexualattitude,changing retail scenario,customizationand co-habitence

The New Indian ConsumerChanging Expectation:The change is consumer mindset has ledto changes in the expectations frommarketers.Product like cars are also expected to make a personality / lifestylestatement.A cars performance,design,quality and technology,etcare all taken for granted.Consumers are motivated by the brandname,its styling,novelty,striking looks and accessories

The presentation of the shelf (packagingimpact,shelf throw) has assumed greaterimportanceThe New Indian Consumer


8/14

Demographics no longer is the discriminator.While defining segments one must look at themindsets as they are very importantdiscriminator todayThe New Indian ConsumerPester Power

Children are more informed,assertive andexude individual view-points.With householdspends increasing and parents gettingfriendlier,their influence on family decisions isgrowing

The New Indian ConsumerRural ConsumerRural India is not one soggy mass of people tobe segmented as single phrase rural

The studies are done on segmentation likethose who stay in satellite villages and

considerably different from furtherisland.Similarly who stay near the Indian railwaytracks are different from the rest.

The New Indian ConsumerThree Distinct focus areas:Segmentation-Analytics,research and insightswill blend more effectively as companiesand brands smartly segment the market

Relationships and Experiences-Serviceorganization and brands will invest more onBuilding relationship and delivering experiences

Creative Innovation:While organizations will continueto innovate,the market leaders will effectively combine

creative ideas with innovationEvolutionBarter

Mass Marketing

Segmentation

Niche Marketing

Database Marketing

Customization

CRM

CEM


9/14

TransitionThen NowMake Everything Inside Buy Outside(Outsource)Improve in Ones own Benchmark othersGo it alone Network CollaborationFunctional Dept Processes /Multitasking teamDomestic Focus Global FocusProduct Centered Customer CenteredStandard Product Customized ProductMass Marketing Target MarketingSustainable Competitive Advantage No Sustainable CompetencySlow Product Development Cycle Quick Product Development CycleLong Product Life Cycle Short Product Life CycleHierarchical Organization Flattened OrganizationMarket Place Activity Market Space ActivityBusiness

Producer

Marketing activities

Consumer/BuyerMarket

Marketing MixMarketing

The aim of marketing is to know and understand thecustomer so well that the product of service fits himand sells itself.Ideally marketing should result in acustomer who is ready to buy.All should be needed

then is to make the product or service available.Peter Drucker

MarketingMarketing is the process of planning andexecuting the conception,pricing,promotion,and distribution of ideas,goods or services tocreate exchange that satisfy individual andorganizational goals

American Marketing AssociationThe Marketing Concepts:You see a gorgeous girl at a party. You go up to her and say, "I am very rich.Marry me!"

That's Direct Marketing.

You're at a party with a bunch of friends and see a gorgeous girl.One of your friends goes up toher and pointing at you says, "He's very rich.Marry him."That's Advertising.

The Marketing Concepts:You see a gorgeous girl at a party. You go up to her and get her telephone number. The next day

you call and say "Hi,I'm very rich.Marry me."


10/14

That's Telemarketing.

You're at a party and see a gorgeous girl. You get up and straighten your tie, you walk up to herand pour her a drink. You open the door for her, pick up her bag after she drops it, offer her aride, and then say, "By the way, I'm very rich.Will you marry me?"

That's Public Relations.

The Marketing Concepts:You're at a party and see a gorgeous girl. She walks up to you and says, "You are very rich.."

That's Brand Recognition.

You see a gorgeous girl at a party. You go up to her and say, "I'm rich.Marry me" She gives you anice hard slap on your face.

That's Customer Feedback !!!!!The Marketing Concepts:You see a gorgeous girl at a party. You go up to her and say, "I am very rich.Marry me!" And she

introduces you to her husbandThat's Demand and supply gap.

You see a gorgeous girl at a party. You go up to her and before you say, "I am very rich.Marryme!" she turns her face towards you..she is your wife !

That's competition eating into your market share.

The Ten Demandments

The First DemandmentEarn My Trust

This is all about trust, integrity, advocacy, and quality. Forget all others if you cant master this

oneThe Second DemandmentInspire Me

Craft meaningful emotional connections with your consumers through immersive experiences,motivating messages that transcend their own products and relevant philanthropy.

The Third DemandmentMake it easy

Simplicity, speed and usefulness are the key to consumer ease. Dont confuse complexity withprogress. The best things in life are often the easiest.

The Fourth DemandmentPut me in charge

Consumers except choices and control. particularly from service organization that can enableself-paced self-service. Put consumers in the drivers seat or theyll peel out of your parking lot

without a second thoughtThe Fifth DemandmentGuide Me

Too much white noise, too little context-thats the problem. So filter the chaos with expertadvice, education and information. And stand shoulder to shoulder with your consumer as theymove through the decision making process and beyond

The Sixth Demandment24/7


11/14

Anytime anywhere accessthats the ticket in this round the clock world. Nine to five hourswont cut it for consumers who expect companies to be there for them all the time no matterthe channel

The Seventh DemandmentGet to know me

You cant win consumer loyalty without understanding what consumes want. Listen learn andstudy up on their real lives, dont just drive into their data pool.

The Eighth DemandmentExceed my expectation

Even demanding consumers can be wowed, so woo them by over delivering throughuncommon courtesies, surprising services and go-the-extra mile efforts that show you reallycare

The Ninth DemandmentReward Me

Treat your consumers like the VIPs they are to you. Acknowledge and build their loyalty byrewarding them by point programs, privileged access, or other winning ways.

The Tenth DemandmentStay with me

Relationship are built not in a day, but in a life time, so stay with your consumers if you wantthem to stay with you. Deliver or post-purchase promises, stay in touch in meaningful ways,

and evolve your brand to meet your consumers evolving needs over time.The Ten DemandmentThe First Demandment: Earn My TrustThe Second Demandment: Inspire MeThe Third Demandment: Make it easyThe Fourth Demandment: Put me in chargeThe Fifth Demandment: Guide MeThe Sixth Demandment:24/7The Seventh Demandment: Get to know meThe Eighth Demandment: Exceed my expectationThe Ninth Demandment: Reward MeThe Tenth Demandment: Stay with meThe Genie & Aladdin

Genie:The CharacterAlways with a positive attitudeAlways SmilingAlways PromptAlways finding solutionAlways delighting the customerAlways Loyal

ExamplesArvind houseAdani supermarketAuto rickshaw card

JamshedpurCall/telephonic complaint100% OK Movement

AEC Extra billCredit card calls


12/14

Celebrity EndorsementThe Glam Sellers

FRED objectivesFamiliarity(Target market is aware of him, finds him friendly, likeable andtrustworthy)Relevance(Which says that there should be a link between the endorser and theproduct as well between the endorser and the audience)Esteem(The polio endorsement, for example, is successful as the masses seehim as a credible name-face-voice)

Differentiation(In all his projections, he is seen to be one among the masses, and yethe towers above them. He is different)---------------------------------------------------------------------------------------

Celebrity endorsement:Double-edged sword

Helps cut through competitive clutter& build consumer empathy.Miss the strike, and it can damage you

brand image------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Reasons for Celebrities EndorsementsReasons for Celebrities EndorsementsWhen the concerned brand has close substitutes available.When there is a need to create a clear differentiation.When a brand has to make an entry into the market and the life cycle of the

brand is feared short. In such cases the rationale is to make quick money andexit.

CompanyA celebrity helps short hand a brand; in other words makes a brand stand out.Celebs facilitate instant awareness and immediate attention.

Celebrity values define and refresh the brand image and a celebrity addsdimension to it.A celebrity lends instant credibility or aspiration to the brand. Celebrities save

time in creating the credibility a company has to build into the brands.PR coverageGestalt Perception: Gestalt perception means using a celebrity as a remedy.


13/14

When a person is famous people forget about what he looks like. As everyoneknows the face, it is hard to judge whether the person is pretty or ugly. Theceleb is a remedy to managers who run out of ideas.

Celebrities

The first reason that most celebrities would endorse a product for, is the hugecompensation involved with it.Star Sell

What a celebrity endorsement costsHritik Roshan: Rs 4-5 croreSachin Tendulkar: Rs 4-6 crore

Amitabh Bachchan:Rs4-6 croreAamir Khan: Rs2-2.5 croreShah Rukh Khan: Rs2-2.5 croreSaurav Ganguly: Rs1.5 croreGovinda: Rs1-1.5croreStar SellWhat a celebrity endorsement costs

Aishwarya Rai: Rs 2-3 croreKarishma Kapoor: Rs 1-1.5 croreKareena Kapoor: Rs 1-1.5 croreTabu: Rs 1 crorePreity Zinta: Rs 1 crore(Source: Industry estimates per brand/year)Year 2001

CelebritiesEnhanced level of acknowledgement.

(KBC and Movers and Shakers helped stabilize the fast declining careers oftheir hosts by providing strong audience recognition)

Endorsement breeds endorsement.Customers

Messages delivered by well-known celebrities achieve a high degree of attentionand recall for consumers.

Celebrities are perceived Trustworthy Trustworthiness refers to the customersconfidence in the source for providing information in an objective and honestmanner. People are more likely to trust the quality of a trustworthy celebendorsed brand over a non-endorsed one.

Ambitious psyche: People ape the celebrities in their day to day activities andmany even dream to become like a celebrity some day. Some know theywouldnt become as good as the celebrities but sharing common belongings

makes them feel better.Physical Attraction: Consumers tend to perform positive stereotypes about such

people. Physically attractive people are more successful in changing beliefsthan non-attractive people.

Critical IssuesOnly the tangible and visible costs are considered. The implicit costs remain

uncovered.


14/14

Duration of endorsement required For increase in sales, a celebrity can beused for short-term promotions and brand activities. But for an image rub off,he could be used for longer period.

Multiple endorsement:Celebrity Life Cycle

Vampiring:The concept of a celebritys becoming bigger than the brand is known asVampiring

(For example, lets consider Dinesh Suitings. Dinesh used Gavaskar and let himrule the brand)

Can be prevented by means like short-term endorsements and constant

change of celebrities(Classic example of which is the case of Lux.)

Tips for using celebrityCatch the early birdAction Shoes & Sachin Tendulkar

Brand Celebrity fitEnsure celebrity do not dwarf the brandEnsure sustainable strategyDo not expect Magic

2nd preference

Documents