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Week2-DefiningABrandFinalRevision-121.pptxIntegrated Marketing
Session 2 - Looking at Brand, Customer Value & Strategic Planning
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What we’ll cover today
Integrated Marketing - continued
Review of Customer Value
What is A Brand
Strategic Planning
What is encompassed in a Marketing Plan
Marketing Intelligence
Analyzing the Microenvironment
Net Promoter Score - Determining Consumer Loyalty
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Contemporary IM Approach
Packaging
Sales
promotion
Direct
response
Point of
purchase
Publicity
Interactive
-digital
-social
-mobile
Public
relations
Direct
marketing
Special
events
Mass media advertising
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The IM Promotional Mix
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The Growth of Advertising and Promotion
New marketing channels
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Why is IM important today?
Financial economies of scale
Exceptional amount of competitive noise in the marketplace - IM provides focus, alignment
Surrounding the customer/consumer with aligned messages is critical
Your competition is already practicing integrated marketing communications
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What typifies an IM organization?
Guiding Principles:
Become a customer-centric organization
Use outside-in planning
Focus on total customer experience
Align customer goals with corporate goals
Set customer behavior objectives
Treat customers as assets
Streamline functional activities
Converge MARCOM activities
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Marcom is targeted interaction with customers and prospects using one or more media, such as direct mail, newspapers and magazines, television, radio, billboards, telemarketing, and the Internet.
Examples
Guiding Principles of IM:
Become a Customer Centric Organization
Use Outside-in Planning
Focus on the total customer experience
Align consumer goals with corporate objectives
Set customer behavior objectives
Treat customers as assets
Streamline functional activities
Converge marcom activities
Illustrations:
Who has had an experience at Nordstrom? The Ritz-Carlton Hotels?
Who has been contacted by a market research firm for an opinion?
Describe your last interaction with a “customer care” representative
Who has had experience with sales quotas?
Has anyone been the object of “up-sales?”
Has any company done anything that you would consider an “investment” in you as a customer?
Have you ever been the target of conflicting messages and incentives from the same company? (i.e. ad and coupon are misaligned)
What company, in your experience, does electronic relationships correctly?
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What is Holistic marketing?
Development, design implementation of marketing programs and activities that are interdependent
Integrated marketing; product, service, channels, communications price
Relationship Marketing; customers, employees, marketing partners, financial community
Internal Marketing; marketing dept, sr. management, other depts.
Performance Marketing; sales revenue, brand & customer equity, ethics, environment, legal, social.
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What is a Brand Anyway?
Is it?
Non-generic name for a product that tells us the source of the product
The emotional and psychological relationship you have with your customers
A type of product manufactured by a particular company under a particular name
The name, term, design, symbol, or any other feature that identifies one seller’s product distinct from those of other sellers
The idea or image of a specific product or service that consumers connect with, by identifying the name, logo, slogan, or design of the company who owns the idea or image.
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What is a Brand Anyway?
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What is a Brand?
Definition: A brand is a product or service represented by a name, symbol, graphic, or other visible and recognizable identifying element that:
Can be legally protected
Can be exchanged or sold for consideration
Contributes perceptual value to the relationship between buyers & seller
Distinguishes it from its competitors
Has some form of financial value
Is managed for ongoing value by the brand owner
Source: Schultz & Schultz, “IMC: The Next Generation”
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Defining the Brand
1. The Brand Promise = At its core, a brand is a promise to consumers. What will consumers get when they purchase a product or service under your brand umbrella? The brand promise incorporates more than just those tangible products and services. It also includes the feelings that consumers get when they use your products and services.
2. Brand Perception = Brands are built by consumers, not companies. Ultimately, it’s the way consumers perceive a brand that defines it. It doesn’t matter what you think your brand promises. The only thing that matters is how consumers perceive your brand. You need to work to develop consumer perceptions that accurately reflect your brand, or your brand is doomed to limited growth potential.
3. Brand Expectations = Based on your brand promise, consumers develop expectations for your brand. When they pull their hard-earned money out of their pockets and purchase your products or services, they assume their expectations for your brand will be met. If your brand doesn’t meet consumer expectations in every interaction, consumers will become confused by your brand and turn away from it in search of another brand that does meet their expectations in every interaction.
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Defining the Brand
4. The Brand Persona - Rather than asking, “What is a brand?” a better question might be, “Who is a brand?”
Every brand has a persona. Think of your brand as a person. What is that person like? What can you expect when you interact with that person?
From appearance to personality and everything in between, your brand persona is one that consumers will evaluate and judge before they do business with you.
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Defining the Brand
5. Brand Elements
Your brand is represented by the intangible elements described above as well as tangible elements such as your brand logo, messaging, packaging, and so on. All of these elements must work together to consistently communicate your brand promise, shape brand perceptions, meet brand expectations, and define your brand persona.
Logo or wordmark. ...
Different logo “lockups” ...
Key colors. ...
Additional color palette options. ...
Corporate typefaces. ...
Standard typographic treatments. ...
Consistent style for images - Brand Bible
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Creating a Brand
The artistic aspect of building your brand includes several elements:
A name that is clear and immediately evocative, but also interesting enough to pique people’s interest
A logo that makes sense and features the potential of being instantly recognizable in the future
A color palette that makes sense for your startup and the products you sell
A website that is more than just a description of your product and a selling tool business name, slogan and tagline, website, logo
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Top Global Brands
Brand image based on…….
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Top Global Brands
Brand defined by:
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Brands: claiming real estate of the mind
Brand Descriptor Volvo
Rolls Royce
Coke
Pepsi
Nike
Adidas
Reebok
Tiffany
Gucci
Hermes
Amex
Visa
MasterCard
IBM
Apple
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Vovl0 - safety
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Brands: claiming real estate of the mind
Brand Descriptor Volvo Safety
Rolls Royce Luxury and prestige
Coke It’s the “real thing” - - Taste the feeling
Pepsi Out of the blue - the joy of Pepsi Cola
Nike Just Do It
Adidas Impossible is Nothing - Mohammad Ali
Reebok I am, what I am
Tiffany Blue Box. emotional connection, luxury
Gucci Sophisticated, exclusive, Italian
Hermes Quality, Refinement. Iconic luxury brand
Amex Don’t leave home without it
Visa Life Takes Visa
MasterCard Priceless
IBM Think
Apple Think Differently
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Branding in the Big Time
The Super Bowl provides a unique (and expensive) opportunity to create or reinforce a brand in the consumer’s mind. $5 million for :30
Doritos
https://www.youtube.com/watch?v=Ey01ZlAoYes
https://www.youtube.com/watch?v=Q2c2mPpvcpw
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The Value Chain Model
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Harvard’s Michael Porter’ Model - a tool to create more customer value through product activities performed to design, product, market, deliver and support product. Primary Activities (blue) Support activities (orange), Firm’s tasks is to examine COSTS & Performance for each value-creating activity, benchmarking against competitors and looking at ways to improve.
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CORE Business Processes
Company’s success predicated on how well they perform and coordinate core business processes which include:
Market sensing - gathering research and intelligence about the market
New-offering realization - research, development launch of new offerings within budget realities
Customer acquisition - defining target markets and new prospects
Customer relationship management - building deeper ties, better offerings
Fulfillment management - receiving orders, shipping good on time and collecting payment
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Strategic Marketing
Start with Defining A Corporate Mission and Corporate Vision
A mission statement declares an organization's purpose, or why it exists. That often includes a general description of the organization, its function, and its objectives.
A mission statement often informs the vision statement, which describes where the company aspires to be in the future. These two statements are often combined to clearly define the organization's reason for existing and outlook for internal and external audiences like employees, partners, board members, consumers, and shareholders
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Corporate Mission -=
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LIFE IS NOT PERFECT. LIFE IS NOT EASY. LIFE IS GOOD. We see it when we believe it. Each one of us has a choice: to focus our energy on obstacles or opportunities. To fixate on our problems, or focus on solutions. We can harp on what’s wrong with the world (see most news media), or we can cultivate what’s right with the world. What we focus on grows. That’s why the Life is Good community shares one simple, unifying mission: to spread the power of optimism. Optimism is not irrational cheerfulness or “blind” positivity. It’s a pragmatic strategy for approaching life. Optimism empowers us to explore the world with open arms and an eye toward solutions, progress, and growth. It also makes life a hell of a lot more fun. Optimism also enables us to access the ten most important tools we have for living a happy and fulfilling life. We call them the Life is Good Superpowers. But unlike X-ray vision, bullet speed, or Herculean strength, they are accessible to us all. The Life is Good Superpowers can help you overcome obstacles, drive forward with greater purpose, and enjoy the ride of life.
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Patagonia
Patagonia: "Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis."
Patagonia's mission statement combines both the values that bring them market success (building safe, high-quality products) and the values that contribute to a better world (philanthropic efforts to help the environment). For the people behind the brand, "a love of wild and beautiful places demands participation in the fight to save them." In the name of this cause, the company donates time, services, and at least 1% of its sales to hundreds of grassroots environmental groups around the world.
If your company has a similar focus on growing your business and giving back, think about talking about both the benefit you bring to customers and the value you want to bring to a greater cause in your mission statement.
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Strategic Planning
Goals of A Strategic Marketing Plan
Eight Predictors of Strategic Marketing Plan Success
Aligns with organizational, business unit and product missions
Assesses the current business environment and competition
Addresses the needs of consumers in targeted markets
Identifies current marketing projects, organization’s strategic business units (SBU) and funding needs
Clarifies strategic goals and provides a logical pathway
Assesses Growth opportunities
Prioritizes tactical objectives and due dates
Includes a method for measuring and evaluating success.
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Elements of a Strategic Marketing Plan
Achieving objectives through analyzing marketplace marketing strategies and tactics. Encompasses”
Executive Summary - Overview of goals, marketing rationale, main elements of plan - quick synopsis
Situational Analysis- Relevant background data on sales, costs, market competitors adn macro-environment, trends and critical issues
Industry Analysis/Market Summary - relevant history of industry sector, trends, innovations, products, geographic markets, industry leaders, regulations, trends, opportunities
Target Markets - who you are reaching out to - best prospects
Market Demographics - M/F, Age, geography, education, median income
Competitive Intelligence - know your competitors and how you can provide different/better product, create competitive analysis grid
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Elements of a Strategic Marketing Plan
Opportunities and Issues Analysis -Budget SWOT - Focuses on identifying strengths vs. competitors, Weaknesses- disadvantages, Opportunities - what is not offered or satisfied for the customer and Threats - competitor encroachment, recession, bad publicity your company/product faces
Goals and Objectives - what results do you require? - SMART Guidelines - specific, memorable, actionable, realistic and timebound
Marketing Strategy - mission, marketing and financial objectives, customer needs satisfied, competitive positioning. Coordination with all business units; purchasing, mfg, sales, finance
Marketing Tactics -product benefits, pricing, distribution, media strategy, marketing activities; advertising, pr, social media
Budget and Financial Projections/risk analysis - sales forecast, expense forecast, break-even analysis
Evaluation and Controls- controls for monitoring and implementing plan so can take corrective action if needed
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Net Promoter Score
Assessing customer loyalty and the value perception of your brand
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Net Promoter Score
The Net Promoter Score is an index ranging from -100 to +100 that measures the willingness of customers to recommend a company's products or services to others. It is used as a proxy for gauging the customer's overall satisfaction with a company's product or service and the customer's loyalty to the product.
The Net Promoter Score system uses one basic question to measure customer loyalty:
“How likely is it that you would recommend our organization to a friend or colleague?”
There are many formulas for testing customer’s opinions—such as the Customer Satisfaction Score (CSAT) system, but the NPS system is meant to go beyond testing how satisfied a customer is with a company; it’s designed to test if someone likes a brand enough that they would recommend it to others. In other words, the person isn’t merely “satisfied” with the company—by telling others about the brand, the person is effectively marketing the company’s services.
Although there are pros and cons to NPS, numerous research studies have shown that the NPS system also correlates with business growth. Studies by the Harvard Business Review and Satmetrix have found that companies ranging from banking to car-rental companies show higher income when they improve their Net Promoter Scores.
One of its big benefits is that it allows you to benchmark your company’s results against others in your industry.
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Net Promoter Score
The Ultimate Question:
How likely is it that you would recommend [Company/Product X] to a friend or colleague?
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Net Promoter Score Scale
To get started, customers are asked to rate their likelihood of recommending a company to a friend or colleague by using a 0-10 point scale:
The number on the scale that a customer chooses is then classified into one of three categories: “Detractors,” “Passives,” and “Promoters.”
Score breakdowns:
0 – 6: Detractors
7 – 8: Passives
9-10: Promoters
You can think of the NPS system as similar to a four-star system on an online review, but the NPS scale gives you a broader way (and a more accurate method) to measure customer’s opinions.
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How to Calculate Company’s NPS Score
You’ve sent out an online poll with the NPS question and the 0-10 scale, and you’ve received 100 responses from customers. What do you do with the results?
The NPS system gives you a percentage, based on the classification that respondents fall into—from Detractors to Promoters. So to calculate the percentage, follow these steps:
– Enter all of the survey responses into an Excel spreadsheet.
– Now, break down the responses by Detractors, Passives, and Promoters.
– Add up the total responses from each group.
– To get the percentage, take the group total and divide it by the total number of survey responses.
– Now, subtract the percentage total of Detractors from the percentage total of Promoters—this is your NPS score.
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Calculating Your NPS Score
Let’s break it down:
(Number of Promoters — Number of Detractors) / (Number of Respondents) x 100
Example: If you received 100 responses to your survey:
10 responses were in the 0–6 range (Detractors)
20 responses were in the 7–8 range (Passives)
70 responses were in the 9–10 range (Promoters)
When you calculate the percentages for each group, you get 10%, 20%, and 70% respectively.
To finish up, subtract 10% (Detractors) from 70% (Promoters), which equals 60%. Since an example Net Promoter Score is always shown as just an integer and not a percentage, your NPS is simply 60. (And yes, you can have a negative NPS, as your score can range from -100 to +100.)
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Homework Assignment #2
*Homework #2 Group Assignment Net Promoter Score: In defined teams, each group should select a product and conduct an NPS survey with a minimum of 40 users to devise and aggregate NPS score. Each team’s PowerPoint presentation should probe for the answers to why the respondents are promoters, passives or detractors and what the company can do to improve. The presentations 5-6 slides) should take no more than 5 minutes and focus on key learnings. Everyone presents.
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Additional Assignment
Choose an article or short item that is relevant to integrated marketing and be prepared to provide a brief 2 minute summary in class. We will choose five students to present in class for this session and in every upcoming session.
Options include: Adage.com; emarketer.com; marketingsherpa.com; Wall Street Journal; CNBC, NY Times,Association of National Advertisers (ana.net), Fast Company, https://blog.hubspot.com/marketing https://www.clickz.com https://www.sethgodin.com or other blog, on-line news source with relevant and valuable marketing information that is informative for the group.
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