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Effective Advertising Is No Accident

This presentation discusses great advertising just doesn't "happen". It comes from full understanding of your target audience and developing the right messaging that exploits your strategic competitive advantage. The right positioning will help develop a brand that's memorable with consumers. It also shows real live examples of successful branding applications.

Rick Steinbrenner - The Global Brand Guy

(Note: this presentation includes three you tube videos which shows execution of the presented brands positioning. In order to view the videos, you need to do three things.

1) Must have a live internet connection while viewing

2) Download the presentation

3) Then view the presentation in slide show and enable the content when the security alert for macros and active X comes up - this may or may not happen depending on your computers settings.)

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Effective Advertising Is No Accident

  1. 1. Effective Advertising Is No Accident!! Branding/Positioning in Communication Strategies Rick Steinbrenner
  2. 2. Advertising Is Not Only Fragmented, But Also ExpensiveConsumers 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. 3. 8 Barriers To Great Advertising1. 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. 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 needsConsumer awareness About solving their problemsPromotions or pricing Product relevancyMarketplace distribution Product differentiation vs. competition and/or other adjacent alternatives?Slogans or taglines Creating marketplace characterFeatures 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. 5. Your Brand Starts With The Right PositioningYour 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/DNAWhat 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. 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. 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. 8. Positioning Statement Template To target market, X is the brand offrame of reference that benefit/point of difference.Support/Reasons Why: #1 #2 #3 etc.
  9. 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. 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. 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. 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. 13. Actual Positioning StatementTo women and men with busy lives, the Black & Decker line of small household productsoffers a better way of doing things because itprovides smart, innovative solutions for your home.
  14. 14. Corporate Branding Process Analytical Framework Marketplace Analysis Define Develop Identify Core Brand Brand Brand Equity Potential DNA Bridges Hunting GroundsWho are we? What can we be? Where can we live? How do we get there?
  15. 15. Product Branding Strategies Understanding How It WorksThe 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
  16. 16. Successful Examplesof Branding Applications
  17. 17. What the consumers REALLY Buy HappinessThe Benefit of What They Sell RefreshmentWhat They Sell Soft DrinksThe Company
  18. 18. Happiness Machine
  19. 19. EliminatesWhat the consumers REALLY Buy Speed Bumps of Daily LivingThe Benefit of What They Sell Better Way of Doing Things (Innovation Solutions)What They Sell Power Tools & Home Products SolutionsThe Company
  20. 20. Scumbuster Cordless Wet Scrubber – “Splish Splash”
  21. 21. What the consumers REALLY Buy Miracles of Science Better Way Of DoingThe Benefit of What They Sell Things (Innovation Solutions)What They Sell Residential, Agricultural & Automotive ProductsThe Company
  22. 22. “Trunk Crew” – Featuring 4-Time NASCAR Champion – Jeff Gordon
  23. 23. Summary1. 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 it4. 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.