1

Amitava Chattopadhyayfor

Advertising and Promotion Strategy 2003

Advertising Planning

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opadhyay

Advertising Planning

Primary focus Understand persuasion

Briefly discuss Positioning Communication objectives & budget

Am

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Advertising Planning How do customers choose a

brand?AWARENESS

ATTITUDE

CHOICE

Am

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Advertising Planning What is awareness?

Recall Recognition

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Advertising Planning

Recognition

RecallLow

Low

High

High Graveyard

Source: Young and Rubicam

Recall Versus Recognition

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Advertising Planning Awareness is a critical first stepALCOHOL TYPE CATEGORY

 GLOBAL BRANDS

 

BEER Beer GUINNESS ® 

SPIRITS & LIQUEURS

Gin TANQUERAY ®

Liqueurs BAILEYS ®

Rum MALIBU ®

Tequila JOSE CUERVO ®

Vodka SMIRNOFF ®

Whisk(e)y J&B ®

JW ®

RTD’s RTD’s SMIRNOFF ICE ®

WINE Wine PIAT D’OR ®

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Advertising Planning Awareness is a critical first step

Serves as an anchor

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Advertising Planning

Awareness is a critical first step cont ’d Serves as an anchor Awareness drives liking

0 5 10 15 20 25

Frequency

Evalu

ati

on

-1

0

+1

Source: Zajonc (1968)

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Advertising Planning91

83 83

6863

59 57

47

2822

45

24

30

18

14

18

118

63

0

10

20

30

40

50

60

70

80

90

100

Sony

Panas

onic

Philips

Motorola

Nokia

Microso

ftIB

MApple

Yahoo AOL

0

5

10

15

20

25

30

35

40

45

50

Familiar With

Really Like

Relationship Between Familiarity and Liking

Source: Roper Starch Worldwide (2000)

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Advertising Planning

0

50

100

150

200

250

300

Low Medium High

Sales Effectiveness

Source: Millward Brown Awareness

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Advertising Planning

Awareness is a critical first step cont ’d Serves as an anchor Awareness drives liking Awareness influences credibility Awareness is relative

Am

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Advertising Planning

100%

85%76%

70%

59% 57%

0%10%20%30%40%50%60%70%80%90%

100%

ControlExpt.1 Expt. 2Expt. 3Expt. 4Expt. 5

Exp. 1Exp. 2

Exp. 3Exp. 4

Exp. 5Cntrl.

Source: Alba & Chattopadhyay (1986)

Awareness of your brand has a negative impact on the

awareness of other brands

Am

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Advertising Planning

Awareness is a critical first step cont ’d Serves as an anchor Awareness drives liking! Awareness influences credibility Awareness is relative Awareness acts as a gatekeeper to

action

Am

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Advertising Planning

No Structure at Retrieval

No Structure at Learning

Structure at Learning

40% 50%

Structure at Retrieval 45% 70%

Percent of Choices Consonant with Stated Preference

Source: Nedungadi, Chattopadhyay and Muthukrishnan (2001)

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Advertising Planning

How are brand attitudes formed?

Beliefs about what? Attributes and/or benefits

Beliefs

Attitude

Am

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Advertising Planning How are brand attitudes formed?

Beliefs about what? Attributes and/or benefits

Where do benefits come from?

Beliefs

Attitude

Am

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Advertising Planning Sources of benefits

Product attributes Brand the feature

Easier to communicate Branding gives credibility Charge a premium

Am

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opadhyay

Advertising Planning Sources of benefits

Product attributes Brand the feature

Easier to communicate Branding gives it more credibility Allows one to charge a premium

Use occasions Users Symbols Organizational associations

Am

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Advertising Planning

Am

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Advertising Planning How to think about organizational

associations?

V a lue P ro p o sition C redib ility * E xpe rt * T rustw o rthy * L iked

In tern a l Im pact * C la rity * Loya lty

O rg an iza tio na l Assoc ia tio ns * E nvironm en ta l sens itiv ity * Conce rn fo r custom ers * C om m un ity o rien tatiion * P resence /success * P e rce ived quality * Innova tiveness

T h e O rgan iza tion * C u ltu re & V a lues * P eop le * P rog ram s * A sse ts & S k ills

Am

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Advertising Planning Need a program to build associations

Am

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Advertising Planning

Sources of benefits Product attributes

Brand the feature Easier to communicate Gives credibility Charge a premium

Use occasions Associations with users Symbols Organizational

associations Personality

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Advertising Planning

Sincerity Down-to-earth Honest Wholesome Cheerful

Excitement Daring Spirited Imaginative Up-to-date

Competence Reliable Intelligent Successful

Sophisticated Upper class Charming

Ruggedness Outdoorsy Tough

Dimensions of Brand Personality

Source: Aaker (1997)

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Sou

rce:

McK

inse

y (

20

02)

Advertising Planning

Am

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Advertising Planning Why use brand personality?

Differentiation Reinforce brand benefit

Enriches understanding Helps customers understand and relate Helps develop a common understanding

among managers

Building a relationship Helps express one’s personality

Badge brand Brand as a friend--aspirational, trusted

How does the brand behave?

Am

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Advertising Planning

DriverTraining

Rack & Pinion Steering

EBM

Control

Style

Technology

The UltimateDriving Machine

Valveotronic

iDriveDynamicDrive

Sporty

BMW AsianOpen

BMWInternatonal

OpenClearEnergyJames Bond

BMW &Guggenheim

Cool

Sophisticated

BMWSponsorship of the

Yacht Oracle

Am

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Advertising Planning Brand Identity—set of associations

that the brand owner would like the consumer to have--objective

Brand Image—set of associations that the consumer actually has in his/her head--reality

BrandIdentity

BrandImage

Brand Position

Am

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Advertising Planning

DriverTraining

Rack & Pinion Steering

EBM

Control

Style

Technology

The UltimateDriving Machine

Valveotronic

iDriveDynamicDrive

Sporty

BMW AsianOpen

BMWInternatonal

OpenClearEnergyJames Bond

BMW &Guggenheim

Cool

Sophisticated

BMWSponsorship of the

Yacht Oracle

Am

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Advertising Planning Clear brand position Shared across the

organization All programs benchmarked

against position

Am

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Advertising Planning Sources of benefits

Product attributes If you can, brand the feature

Easier to communicate Branding gives it more

credibility Allows one to charge a premium

Use occasions Associations with users Symbols Organizational associations Personality

Are there different types of benefits?

Functional

Transformational

Am

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Advertising Planning How are attitudes formed from

benefit information? Attitude= Sum (ValenceBenefiti x

Belief StrengthBenefiti)

                                                        

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Advertising Planning How are attitudes formed from benefit

information? Attitude=Sum(ValenceBenefiti x Belief

StrengthBenefiti) Need to remember some key elements

of model Only salient benefits All salient benefits No correlated benefits

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Creative Strategy

Are attitudes always formed so effortfully? High versus low

involvement

Am

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Advertising Planning The planning grid

Awareness Attitude

FunctionalMotive

Transformational

Motive

Low Involvement

High Involvement

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Advertising Planning

Communication objectives Specific Link to marketing objectives Develop budget from the

objectives

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Advertising Planning: Summary

Understand persuasion process Awareness

Recall & recognition Attitudes

Formation—high vs. Low involvement process Basis—functional vs. Transformational

Link budgets to communication objectives