1、,Introduction,Saatchi & Saatchi Training,The Bigger Picture,Saatchi & Saatchi Training,Marketing & Brands,Session 1,The Business Concept,What is the purpose of business?,The Business Concept,The purpose of business is to create and keep a customerProfessor Theodore Levitt Harvard Business School,The
2、 Business Concept,Business has only two functions: innovation and marketingPeter Drucker Principles of Management 1954,The Marketing Concept,The aim of marketing is to make selling superfluous. The aim is to know and understand the customer so well that the product or service sells itself.Peter Druc
3、ker,SalesPush?- Supply led Company needs first Making a Sale Selling what you make,MarketingPull?- Demand led Customer needs first Making a Deal Making what you sell,Marketing versus Sales,Marketing is Selling - Same goal but the opposite philosophy.,Which way?,Sales thinks Inside Out Looks at it th
4、rough the companys eyes How do we move the merchandise? Volume is the measure of success,Which way?,Sales thinks Inside Out Looks at it through the companys eyes How do we move the merchandise? Volume ($) is the measure of successMarketing thinks Outside In Looks at it through the customers eyes Wha
5、t do we need to do to meet their needs? Customer satisfaction is the true measure of success,Marketings Golden Rule,Customer perception is the only realityNo objective truth about better products Marketing is a battle of perceptions, not products A battle fought in the mind of the prospect Need to u
6、nderstand how they see things You cannot compel consumers (more than once),The Brand Concept,The Brand lies at the heart of the Marketing Concept,What is a Brand?,Great Brands are Great IdeasBundles of benefits, rational and emotional, that deliver pleasure, meaning and satisfaction to people,What i
7、s a Brand?,Products live on shelves Brand live in the mindProducts are the delivery mechanism Brands outlive product lifecycles,What is a Brand?,The Brand is the TrustmarkIt identifies and guarantees product quality and performance,What is a Brand?,Brands add value to commoditiesBrands add value to
8、generic products by adding Meaning,What is a Brand?,Brands become SymbolsMoving beyond simple utility to become complex value sets,What is a Brand?,Brands are a consumer languageA means of self-expression - a badge A kind of personal symbolism - a mirror,Why Are Brands Important?,Product difference
9、is transientTechnology provides the means to duplicate successful products ever fasterBrand difference is enduringEmotional values embodied in the brand provide sustainable differentiation,Authenticity : Replicability,Sources of brands?added value,Authenticity : Replicability,Sources of brands?added
10、 value,Reassurance : Trust,Authenticity : Replicability,Sources of brands?added value,Transformation of Experience,Reassurance : Trust,Authenticity : Replicability,Inner- directed: Mirror,Meaning for Me,Sources of brands?added value,Transformation of Experience,Reassurance : Trust,Authenticity : Rep
11、licability,Inner- directed: Mirror,Outer- directed: Badge,Meaning for Me,Meaning for Others,Sources of brands?added value,Transformation of Experience,Reassurance : Trust,Authenticity : Replicability,Inner- directed: Mirror,Outer- directed: Badge,Meaning for Me,Meaning for Others,Sources of brands?a
12、dded value,Differentiation,Transformation of Experience,Reassurance : Trust,Authenticity : Replicability,Inner- directed: Mirror,Outer- directed: Badge,Meaning for Me,Meaning for Others,Sources of brands?added value,PERCEIVED ADDED VALUE,Differentiation,Transformation of Experience,Reassurance : Tru
13、st,How do we choose?,Brands work on a Stimulus : Response? model,Stimulus : Response,A two-way process, based on a common field of experience,Stimulus Response,Sender,Receiver,I.e. An 慳ctive?consumer,Stimulus : Response,Work backwards from the response. what meaning do we want to create,Stimulus Res
14、ponse,Focus: Meaning Out? not Message In,Meaning,Message,All marketing activity is communication - Product design/formulation - Brand name / packaging design - Positioning / promotion - Pricing / Distribution All offer meaning, offer to meet needs Consumer responds to the whole enchilada,Stimulus :
15、Response,PRACTICAL,A Holistic Brand Relationship,RATIONAL,The Brand,PRACTICAL,A Holistic Brand Relationship,Brand/product featuresFunctional justificationPrice/value judgementsAvailability,RATIONAL,The Brand,PRACTICAL,SYMBOLIC,A Holistic Brand Relationship,Brand/product featuresFunctional justificat
16、ionPrice/value judgementsAvailability,EMOTIONAL,RATIONAL,The Brand,PRACTICAL,SYMBOLIC,A Holistic Brand Relationship,Brand/product featuresFunctional justificationPrice/value judgementsAvailability,EMOTIONAL,RATIONAL,The Brand,How I liveMy way/my identityOthers like meThe experience,PRACTICAL,SYMBOLI
17、C,A Holistic Brand Relationship,Brand/product featuresFunctional justificationPrice/value judgementsAvailability,RATIONAL,The Brand,Sight for me,How I liveMy way/my identityOthers like meThe experience,EMOTIONAL,Basic Brand Engineering,Brands are built by bonding chosen groups of psychological value
18、s credibly to the function of the brand To illuminate and dramatise the function,A Triangular Relationship,F,P,E,Function,What is is and does,A Triangular Relationship,F,P,E,Function,Psychology,What is is and does,Emotional Needs & Benefits / Life goals,A Triangular Relationship,F,P,E,Function,Psych
19、ology,What is is and does,Emotional Needs & Benefits / Life goals,Ideally, the same word,A Triangular Relationship,F,P,E,Function,Psychology,Evaluator,What is is and does,Allows consumer to judge delivery,Emotional Needs & Benefits / Life goals,* After D. Sexton,Associations with desired benefits,Br
20、and A,Brand B,Branding Builds Linkages,Problem,Product / Service,* After D. Sexton,Associations with desired benefits,Brand A,Rel Imp,Rel Imp,Brand B,Rel Imp,Rel Imp,Branding Builds Linkages,Problem,Product / Service,Rel. Imp = Relative importance of benefit Per. Ben = Perceived level of benefit per
21、formance Exp. Ben = Expected level of benefit performance,* After D. Sexton,Associations with desired benefits,Brand A,Rel Imp,Rel Imp,Brand B,Rel Imp,Rel Imp,Branding & Positioning create the associative links,Branding Builds Linkages,Problem,Product / Service,EXPECTED,Three Types of Customer Value
22、,Customer,Company,What the Customer:- Wants- Thinks they get- Actually Get,PERCEIVED,ACTUAL,Components of Brand Value,* After D. Sexton,Managing the Key Elements,Perception Perceived ActualExpectation Actual Expected,=,x,Pricing Issues,Communication Issues,慏esign? Issues,Components of Brand Value,*
23、After D. Sexton,Increasing Perceived Value,1. Close the gaps:Expectation Perception Actual2. Change the Priorities Re-rank importance of benefits3. Add benefits* Compete on new dimensions of the customer抯 problem4. Improve actual performance* Another way of closing gaps* And tell them about it!,Comp
24、onents of Brand Value,* After D. Sexton,Brand Health Indicators,Brands are built from the inside out and decay that way too.,TYPICAL NEW ENTRANT,Differentiation Relevance Familiarity Esteem,* After D. Sexton,Assessment of the Brand,Brand Health Indicators,Brands are built from the inside out and dec
25、ay that way too.,TYPICAL 慏ECAYING BRAND,Differentiation Relevance Familiarity Esteem,* After D. Sexton,Assessment of the Brand,慙ag? Indicators,Followed out,Reinforcing A Diffuse Brand Image,1. Determine causes for diffuse image2. Re-evaluate desired brand image3. Improve actual performance as necess
26、ary4. Close gaps between perceived and actual benefit performance5. Strengthen selected associationsNB i) Important to get the sequence rightii) Takes time - BA took 10-12 years,* After D. Sexton,Assessment of the Brand,At its simplest:,Q = QualityProduct / service quality,P = PricePhysical costs,Br
27、ands and the Value Equation.,V =,Really:,Brands and the Value Equation.,p = PerceptionWhat the customer sees,V(p) =,More complete:,S = SignificanceImportance to customer,E = EffortDegree of hassle; doubt ; difficulty,Brands and the Value Equation.,V(p) =,x,V(p) =,Brands and the Value Equation.,x,Bra
28、nds are ideas; operating on perception.A properly focussed brand adds value by adding specific meaning.,Quality Branding can increase perceived quality,Price Branding can increase justifiable price,Significance Branding can increase personal meaning,Significance Branding increases levels of trust,In Summary,Marketing is a different mindset from sales Brands are ideas, more than mere products Brands add value by adding meaning Brands are symbols; a consumer language A stimulus: response?model Customer perception is the only reality Brands can be successfully engineered,
