MAKAUT MBA (Marketing Major) 3rd Sem Lecture Seriez

1. Lecture 3
Foundations and
Determinant of
Advertising Strategies
PROF. (DR.) R. BAKSHI

2. Consumer Behaviour and Advertising
Consumer as decision maker: Process by which
 consumers identify their needs
 collect information,
 evaluate alternatives
 make the purchase decision.
These actions are determined by psychological and economical factors, and are
influenced by environmentalfactors such as cultural, group, and social values.
Consumer as social being: Social factors play an essential role in influencing the
buying decisions of consumers. Humanbeings are social animals ( Friends,
Relatives, Peer Group, Locality etc.

3. Segmentation, Targeting, Positioning
 Segmentation, Targeting and Positioning (STP) is a familiar strategic approach in
Modern Marketing. It is one of the most commonly applied marketing models in
practice.
 Market segmentation is the process of dividing a market of potential customers into
groups, or segments, based on different characteristics. The segments created are
composed of consumers who willrespond similarlyto marketing strategies and who
share traits such as similar interests, needs, or locations.
 Target Marketing involves breaking a market into segments and then concentrating
your marketing efforts on one or a few key segments consisting of the customers
whose needs and desires most closely match your product or service offerings.
 Positioning is one of the most powerful marketing concept, it is about "the place a
brand occupies in the mind of its target audience".

4. Identifying segments
 Measurable — The size, purchasing power, and characteristics of the segments
can be measured.
 Substantial — The segments are large and profitable enough to serve, with
largest possible homogeneous group worth going after with a tailored
marketing program.
 Accessible — The segments can be effectively reached and served.
 Differentiable — The segments are conceptually distinguishable and respond
differently to different marketingmix elements and programs.
 Actionable — Effective programs can be formulated for attracting and
serving the segments.

5. Prioritizing target segments

6. Formulating segmentation strategies
Value and Lifestyle Behavioral
 Occasions
 Benefits
 User Status
 Usage Rate
 Buyer-Readiness
 Loyalty Status
 Attitude

7. Definition of brand
A brand is a name, term, design, symbol, or other feature
that distinguishes an organization or product from its
rivals in the eyes of the customer.

8. Life-cycle of a brand
The brand life cycle described as distinguishing of separate stages
In the introductory period the brand is developed and introduced
to the market
The growth period, when the brand faces competition from other
products of a similar nature
Maturity period, in which the brand either extends to other products
or its image is constantly updated.
In the brand life cycle, the brand identity as well as brand image
develops company’s orientation towards the customer.

9. Brand Identity
The components of the brand (name, logo, tone,
tagline, typeface) are created by the business to
reflect the value the company is trying to bring to
the market and to appeal to its customers.
Kapferer Brand Identity Prism tells us how to build a
story and give the brand a much needed identity
considering six important facets of brand identity.
Physique
Personality
Culture
Relationship
Reflection
Self-image
Kapferrer’ Brand identity prism
for Levis

10. Brand Identity in Brand Life

11. Brand personality
Brand personality is a set of human characteristics
that are attributed to abrand name. A brand
personality is something to which the consumer can
relate; an effective brand increases itsbrand equity by
having a consistent set of traits that a specific
consumer segment enjoys.

12. Brand essence
Brand Essence is the heart and soul of a brand –
a brand's fundamental nature or quality. Usually
stated in two to three words, a brand's essence is the
one constant across product categories and
throughout the world.

13. Brand image
The impression in the consumers' mind of a brand's total
personality (real and imaginary qualities and
shortcomings).
Brand image is developed over time through advertising
campaigns with a consistent theme, and is authenticated
through the consumers' direct experience.

14. Corporate brands
Corporate branding refers to the practice of promoting
the brand name of a corporate entity, as opposed to specific
products or services. The activities and thinking that go
intocorporate branding are different from product and
service branding because the scope of a corporate brand is
typically much broader.

15. What is Positioning?
Positioning is critical to brand building because it is responsiblefor projecting the brand
identity and creating the perception and image of the brand in people’s minds. In other
words, positioning is the process of offering the brand to the consumer.It is positioning that
makes the brand appear to be different and better than all competing brands.
The key points to note about positioning are:
 it is a strategic, not a tactical, activity
 it is aimed at developing a strategic, sustainablecompetitive advantage
 it is concerned with managing perceptions
 brand image and reputation are the result of the positioning process

16. Formulating positioning strategies
 Who am I?
 What am I?
 For Whom am I?
 Why Me?

17. Who am i?
 Positioning by corporate identity
 Positioning by brand endorsement

18. What am I?’
 Category-related positioning
 Benefit-related positioning
 Positioning by usage occasion and time
 Price-Quality positioning

19. For whom am I?
 Demographic: Age, income, sex, occupation,
education and sometimes, geographic location
 Behavioural : For instance in terms of usage volume:
heavy, medium, light users
 Benefits or satisfactions desired
 Personality, lifestile

20. Why me?
 Positioning by unique attribute
 Positioning by competitor
 Positioning with non-functional values
 Stronger bonding with emotions
 Self-concept and preferred brands:

21. Brand equity
Brand equity is a set of brand assets and liabilities linked to a brand
name and symbol, which add to or subtract from the value
provided by a product or servic
1. Brand loyalty
2. Brand awareness
3. Perceived quality
4. Brand associations in addition to perceived quality
5. Other proprietary brand assets such as patents, trademarks and
channel relationships.

22. Brand value proposition
Premium that a company generates from a product with
a recognizable name, when compared to a generic
equivalent. Companies can create brand equity for their
products by making them memorable, easily
recognizable, and superior in quality and reliability.
Financial Value: Total financial value of the brand. Like
the valuation of any product, or self review.