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Effective Advertising Is No Accident!!
         Branding/Positioning in
        Communication Strategies




                                   Rick Steinbrenner
Advertising Is Not Only Fragmented, But Also Expensive
Consumers used to watch only three TV networks, read magazines, listened to local radio stations.


Now there are 900 channels in broadcast TV plus 90 million on YouTube, spending almost ½ trillion
 dollars globally – lots of clutter.


Consumers “had” to watch commercials; now DVR technology has made “zapping” easy.


Consumer viewing/reading is now fragmented due to varying work schedules and other life activities.


The Internet is/has replacing/replaced traditional print mediums like newspapers and magazines.


The average cost to produce a TV commercial today ranges anywhere from $300M to over $1MM+


The minimum media weight threshold starts today at $5MM+/year to have any appreciable
 marketplace impact.
                                                                  - Nielsen, Ad Age, Media Associates
8 Barriers To Great Advertising

1.   Agencies & manufacturers “think” they know what constitutes effective advertising copy – they
     “guess”.

2.   Sales performance will tell if the advertising is working or not – too many other variables.

3.   Agencies really don’t want to copy test their creative “babies”.

4.   Agency creative folks can have big EGO’s and not open to constructive criticism.

5.   Look at competitive advertising – “assumption is they know what they are doing”.

6.   Lack of strategy driven by poor positioning or extending brands into categories they shouldn’t go.

7.   Manufacturer ineptness due to either processes, policies, impatience, arrogance, risk aversion, etc.

8.   Poorly designed advertising copy testing and/or over reliance on one or two metric measures.

                                                                                - Jerry M. Thomas
It All Starts With A Great Brand
                                      But what is a brand?

              Branding is not…..                                   Branding is…..
Great advertising                                   Is about their consumer/customer needs
Consumer awareness                                  About solving their problems
Promotions or pricing                               Product relevancy
Marketplace distribution                            Product differentiation vs. competition
                                                    and/or other adjacent alternatives?
Slogans or taglines                                 Creating marketplace character
Features or good/better/best                        Long lasting and memorable


• It’s all about differentiation

• The brand has to be relevant in the consumer’s mind

• If done correctly, you’re building up brand equity – as important as any item on the balance sheet
Your Brand Starts With The Right Positioning
Your brand must have a sustainable competitive advantage:

a) Need to identify your “SCA” so a focused positioning can be developed.

b) Translate the competitive advantage into a positioning statement and your ultimately your
   brand character/DNA

What is a sustainable competitive advantage/positioning?
In short, it’s something that:
                       You exclusively have
                       Your competition doesn’t (or don’t realize they have it)
                       Your customers/employers want it
What Exactly Is Positioning?
         It’s psychological bond you want to create with your consumer/customer/employer.

                                                 Competitors




                                 Marketplace                        Identify
                                                                  “Need Gaps”




                                                               Address
                                    Features/Benefits
                                                               Barriers



“Positioning is not as much what you do to the product as what you do to the mind”.
                                                                      - Trout & Ries, “Fathers of Positioning”


“A particular subjective consumer/customer meaning that a company tries to build into the product idea”.
                                                                      - Phil Kotler, “Father of Marketing”


“People don’t buy products, they buy solutions to problems”.
                                                                      - Ted Levitt, Competitive Strategy - HBS
                                                                                                                 5
Why Is Positioning Important?

 Product positioning is as real as any physical feature or attribute!!




 It’s the cornerstone of the marketing/brand strategy and precedes all other strategies




 It should not be changed often. Change only if the environment/product changes
Positioning Statement Template


 To target market, X is the brand of
frame of reference that benefit/point
           of difference.
Support/Reasons Why:
 #1
 #2
 #3 etc.
What is A Target Market?

 Those consumer/customers having highest predeposition to buy your product.

 Can be defined a number of ways:
     Demographically (age, income, education, sex, segments)
     Psychographically (meaning personalities, values, lifestyles)
     Behaviorally (meaning how they behave)
     Attitudinally (meaning how they think)


 Examples include:
    Men, 18-24 years old
     People who are fanatics about taking care of their cars
     People who go to sporting events
     Conservative vs. liberal




                                                                               8
What Is A Frame Of Reference?
 The frame of reference is either a category or a consumer/customer based solution to
  THEIR problems.

 These include either direct category users or acceptable alternatives.

                   Direct Product Categories   Adjacent Categories/Substitutes
                  Carbonated Soft Drinks       All Other Soft Drinks
                  Table Saw                    Circular Saw/Hand Saws
                  Irons                        Dry Cleaners
                  Accountants, CPA’s           Financial Software



A frame of reference usually has barriers to entry by competitors
                   - Cathode ray tube TV sets don’t have clear, sharp images
                   - Accountant usually needs CPA certification


 It has to reflect how the consumer/customer sees the world vs. how the manufacturer,
  retailer or employee does.

                                                                                         9
What Is A Benefit/Point of Difference?
 It is the single-minded, ownable product claim or promise to the
                           marketplace.
                                   Examples:
                                    Cuts hair drying time
                                    Gets the job done faster
                                    Coke is the real thing
                                    You offer something very few others have

 Point of differences need to address the frame of reference.

 Need to make it meaningful to the consumer/customer/employer so you can own it.

 It can also be a non-rational/emotional point of difference. Not all claims have to be product
  or attribute based.
                              - GE: “Brings good things to life”
                              - Gillette: “The best shave a man can get”
                              - Candidates: Creative problem solver




                                                                                              10
What Are Support/Reason’s Why?
 The product based reason to believe the claim (e.g. the substantiation).


 Ideally, this would be unique to the product and ownable.
          - Cuts hair drying time by 50%
          - Cuts installation time by 50% vs. other conventional methods
          - No other product tastes like Coke (i.e. the “real” thing)
          - Developed and launched 20 new products




                                                                             11
Actual Positioning Statement




To women and men with busy lives, the Black
 & Decker line of small household products
offers a better way of doing things because it
provides smart, innovative solutions for your
                    home.
Corporate Branding Process
                         Analytical Framework


                                    Marketplace
                                     Analysis


 Define                                                   Develop
                 Identify
 Core                                                     Brand
                  Brand
 Brand                                                    Equity
                 Potential
 DNA                                                      Bridges




                                  Hunting Grounds


Who are we?   What can we be?   Where can we live?   How do we get there?
Product Branding Strategies
                        Understanding How It Works
The Hierarchy of Branding…..
What the consumer/customer buys….defines the business(es) the company is in…..


                                               What
 What the consumers REALLY Buy               Defines the
                                              Business


 The Benefit of What They Sell            What the Products
                                              Provide



 What They Sell                         The Products/Services




 The Company                          The Brand/Sub-Brand Name
Successful Examples
of Branding Applications
What the consumers REALLY Buy
                                 Happiness



The Benefit of What They Sell   Refreshment




What They Sell
                                Soft Drinks




The Company
Happiness Machine
Eliminates
What the consumers REALLY Buy              Speed Bumps of
                                             Daily Living



The Benefit of What They Sell        Better Way of Doing Things
                                       (Innovation Solutions)




What They Sell                  Power Tools & Home Products Solutions




The Company
Scumbuster Cordless Wet Scrubber – “Splish Splash”
What the consumers REALLY Buy                 Miracles
                                              of Science


                                        Better Way Of Doing
The Benefit of What They Sell            Things (Innovation
                                             Solutions)



What They Sell                  Residential, Agricultural & Automotive
                                               Products




The Company
“Trunk Crew” – Featuring 4-Time NASCAR Champion – Jeff Gordon
Summary
1. Great advertising just doesn’t happen…it’s a result of carefully researched and thought out brand
   positioning.

2. Positioning is all about differentiation and uniqueness vs. your competitors and will build up brand
   equity.

3. At the core a brand must have a strategic competitive advantage:
                          You exclusively have
                          Your competition doesn’t (or don’t realize they have it)
                          Your customers/employers want it


4. Be sure to take the time to help validate your creative with consumers…it will save you money in
   the long run.

5.   A new brand will be harder to establish awareness since there is no prior marketplace equity.


6. Using an existing brand on a new product is more cost effective, but one must be careful of not over-
   extending the brand.

7. Remember, the clearer and simpler the positioning, the easier it will be to break through the clutter
   and become memorable.

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Effective Advertising Is No Accident

  • 1. Effective Advertising Is No Accident!! Branding/Positioning in Communication Strategies Rick Steinbrenner
  • 2. Advertising Is Not Only Fragmented, But Also Expensive Consumers used to watch only three TV networks, read magazines, listened to local radio stations. Now there are 900 channels in broadcast TV plus 90 million on YouTube, spending almost ½ trillion dollars globally – lots of clutter. Consumers “had” to watch commercials; now DVR technology has made “zapping” easy. Consumer viewing/reading is now fragmented due to varying work schedules and other life activities. The Internet is/has replacing/replaced traditional print mediums like newspapers and magazines. The average cost to produce a TV commercial today ranges anywhere from $300M to over $1MM+ The minimum media weight threshold starts today at $5MM+/year to have any appreciable marketplace impact. - Nielsen, Ad Age, Media Associates
  • 3. 8 Barriers To Great Advertising 1. Agencies & manufacturers “think” they know what constitutes effective advertising copy – they “guess”. 2. Sales performance will tell if the advertising is working or not – too many other variables. 3. Agencies really don’t want to copy test their creative “babies”. 4. Agency creative folks can have big EGO’s and not open to constructive criticism. 5. Look at competitive advertising – “assumption is they know what they are doing”. 6. Lack of strategy driven by poor positioning or extending brands into categories they shouldn’t go. 7. Manufacturer ineptness due to either processes, policies, impatience, arrogance, risk aversion, etc. 8. Poorly designed advertising copy testing and/or over reliance on one or two metric measures. - Jerry M. Thomas
  • 4. It All Starts With A Great Brand But what is a brand? Branding is not….. Branding is….. Great advertising Is about their consumer/customer needs Consumer awareness About solving their problems Promotions or pricing Product relevancy Marketplace distribution Product differentiation vs. competition and/or other adjacent alternatives? Slogans or taglines Creating marketplace character Features or good/better/best Long lasting and memorable • It’s all about differentiation • The brand has to be relevant in the consumer’s mind • If done correctly, you’re building up brand equity – as important as any item on the balance sheet
  • 5. Your Brand Starts With The Right Positioning Your brand must have a sustainable competitive advantage: a) Need to identify your “SCA” so a focused positioning can be developed. b) Translate the competitive advantage into a positioning statement and your ultimately your brand character/DNA What is a sustainable competitive advantage/positioning? In short, it’s something that:  You exclusively have  Your competition doesn’t (or don’t realize they have it)  Your customers/employers want it
  • 6. What Exactly Is Positioning? It’s psychological bond you want to create with your consumer/customer/employer. Competitors Marketplace Identify “Need Gaps” Address Features/Benefits Barriers “Positioning is not as much what you do to the product as what you do to the mind”. - Trout & Ries, “Fathers of Positioning” “A particular subjective consumer/customer meaning that a company tries to build into the product idea”. - Phil Kotler, “Father of Marketing” “People don’t buy products, they buy solutions to problems”. - Ted Levitt, Competitive Strategy - HBS 5
  • 7. Why Is Positioning Important?  Product positioning is as real as any physical feature or attribute!!  It’s the cornerstone of the marketing/brand strategy and precedes all other strategies  It should not be changed often. Change only if the environment/product changes
  • 8. Positioning Statement Template To target market, X is the brand of frame of reference that benefit/point of difference. Support/Reasons Why:  #1  #2  #3 etc.
  • 9. What is A Target Market?  Those consumer/customers having highest predeposition to buy your product.  Can be defined a number of ways:  Demographically (age, income, education, sex, segments)  Psychographically (meaning personalities, values, lifestyles)  Behaviorally (meaning how they behave)  Attitudinally (meaning how they think)  Examples include: Men, 18-24 years old  People who are fanatics about taking care of their cars  People who go to sporting events  Conservative vs. liberal 8
  • 10. What Is A Frame Of Reference?  The frame of reference is either a category or a consumer/customer based solution to THEIR problems.  These include either direct category users or acceptable alternatives. Direct Product Categories Adjacent Categories/Substitutes Carbonated Soft Drinks All Other Soft Drinks Table Saw Circular Saw/Hand Saws Irons Dry Cleaners Accountants, CPA’s Financial Software A frame of reference usually has barriers to entry by competitors - Cathode ray tube TV sets don’t have clear, sharp images - Accountant usually needs CPA certification  It has to reflect how the consumer/customer sees the world vs. how the manufacturer, retailer or employee does. 9
  • 11. What Is A Benefit/Point of Difference? It is the single-minded, ownable product claim or promise to the marketplace. Examples:  Cuts hair drying time  Gets the job done faster  Coke is the real thing  You offer something very few others have  Point of differences need to address the frame of reference.  Need to make it meaningful to the consumer/customer/employer so you can own it.  It can also be a non-rational/emotional point of difference. Not all claims have to be product or attribute based. - GE: “Brings good things to life” - Gillette: “The best shave a man can get” - Candidates: Creative problem solver 10
  • 12. What Are Support/Reason’s Why?  The product based reason to believe the claim (e.g. the substantiation).  Ideally, this would be unique to the product and ownable. - Cuts hair drying time by 50% - Cuts installation time by 50% vs. other conventional methods - No other product tastes like Coke (i.e. the “real” thing) - Developed and launched 20 new products 11
  • 13. Actual Positioning Statement To women and men with busy lives, the Black & Decker line of small household products offers a better way of doing things because it provides smart, innovative solutions for your home.
  • 14. Corporate Branding Process Analytical Framework Marketplace Analysis Define Develop Identify Core Brand Brand Brand Equity Potential DNA Bridges Hunting Grounds Who are we? What can we be? Where can we live? How do we get there?
  • 15. Product Branding Strategies Understanding How It Works The Hierarchy of Branding….. What the consumer/customer buys….defines the business(es) the company is in….. What What the consumers REALLY Buy Defines the Business The Benefit of What They Sell What the Products Provide What They Sell The Products/Services The Company The Brand/Sub-Brand Name
  • 17. What the consumers REALLY Buy Happiness The Benefit of What They Sell Refreshment What They Sell Soft Drinks The Company
  • 19. Eliminates What the consumers REALLY Buy Speed Bumps of Daily Living The Benefit of What They Sell Better Way of Doing Things (Innovation Solutions) What They Sell Power Tools & Home Products Solutions The Company
  • 20. Scumbuster Cordless Wet Scrubber – “Splish Splash”
  • 21. What the consumers REALLY Buy Miracles of Science Better Way Of Doing The Benefit of What They Sell Things (Innovation Solutions) What They Sell Residential, Agricultural & Automotive Products The Company
  • 22. “Trunk Crew” – Featuring 4-Time NASCAR Champion – Jeff Gordon
  • 23. Summary 1. Great advertising just doesn’t happen…it’s a result of carefully researched and thought out brand positioning. 2. Positioning is all about differentiation and uniqueness vs. your competitors and will build up brand equity. 3. At the core a brand must have a strategic competitive advantage:  You exclusively have  Your competition doesn’t (or don’t realize they have it)  Your customers/employers want it 4. Be sure to take the time to help validate your creative with consumers…it will save you money in the long run. 5. A new brand will be harder to establish awareness since there is no prior marketplace equity. 6. Using an existing brand on a new product is more cost effective, but one must be careful of not over- extending the brand. 7. Remember, the clearer and simpler the positioning, the easier it will be to break through the clutter and become memorable.