IntroductionSaatchi&SaatchiTrainingTheBiggerPictureSaatchi&SaatchiTrainingMarketing

&BrandsSession1TheBusinessConceptWhatisthepurposeofbusiness?TheBusinessConceptThepurposeofbusinessistocreateandkeepacustomerProfessorTheodoreLevittHarvardBusinessSchoolTheBusinessConceptBusinesshasonlytwofunctions:innovationandmarketingPeterDruckerPrinciplesofManagement1954TheMarketingConceptTheaimofmarketingistomakesellingsuperfluous.Theaimistoknowandunderstandthecustomersowellthattheproductorservicesellsitself.PeterDruckerSalesPush?-SupplyledCompanyneedsfirstMakingaSaleSellingwhatyoumakeMarketingPull?-DemandledCustomerneedsfirstMakingaDealMakingwhatyousellMarketingversusSalesMarketingisSelling-Samegoalbuttheoppositephilosophy...Whichway?SalesthinksInsideOutLooksatitthroughthecompany‘seyesHowdowemovethemerchandise?VolumeisthemeasureofsuccessWhichway?SalesthinksInsideOutLooksatitthroughthecompany‘seyesHowdowemovethemerchandise?Volume($)isthemeasureofsuccessMarketingthinksOutsideInLooksatitthroughthecustomer‘seyesWhatdoweneedtodotomeettheirneeds?CustomersatisfactionisthetruemeasureofsuccessMarketing‘sGoldenRuleCustomerperceptionistheonlyrealityNoobjectivetruthaboutbetterproductsMarketingisabattleofperceptions,notproductsAbattlefoughtinthemindoftheprospectNeedtounderstandhowtheyseethingsYoucannotcompelconsumers(morethanonce)TheBrandConceptTheBrandliesattheheartoftheMarketingConceptWhatisaBrand?GreatBrandsareGreatIdeasBundlesofbenefits,rationalandemotional,thatdeliverpleasure,meaningandsatisfactiontopeopleWhatisaBrand?ProductsliveonshelvesBrandliveinthemindProductsarethedeliverymechanismBrandsoutliveproductlifecyclesWhatisaBrand?TheBrandistheTrustmarkItidentifiesandguaranteesproductqualityandperformanceWhatisaBrand?BrandsaddvaluetocommoditiesBrandsaddvaluetogenericproductsbyaddingMeaningWhatisaBrand?BrandsbecomeSymbolsMovingbeyondsimpleutilitytobecomecomplexvaluesetsWhatisaBrand?BrandsareaconsumerlanguageAmeansofself-expression-abadgeAkindofpersonalsymbolism-amirrorWhyAreBrandsImportant?ProductdifferenceistransientTechnologyprovidesthemeanstoduplicatesuccessfulproductseverfasterBranddifferenceisenduringEmotionalvaluesembodiedinthebrandprovidesustainabledifferentiationAuthenticity:ReplicabilitySourcesofbrands?addedvalueAuthenticity:ReplicabilitySourcesofbrands?addedvalueReassurance:TrustAuthenticity:ReplicabilitySourcesofbrands?addedvalueTransformationofExperienceReassurance:TrustAuthenticity:ReplicabilityInner-directed:MirrorMeaningforMeSourcesofbrands?addedvalueTransformationofExperienceReassurance:TrustAuthenticity:ReplicabilityInner-directed:MirrorOuter-directed:BadgeMeaningforMeMeaningforOthersSourcesofbrands?addedvalueTransformationofExperienceReassurance:TrustAuthenticity:ReplicabilityInner-directed:MirrorOuter-directed:BadgeMeaningforMeMeaningforOthersSourcesofbrands?addedvalueDifferentiationTransformationofExperienceReassurance:TrustAuthenticity:ReplicabilityInner-directed:MirrorOuter-directed:BadgeMeaningforMeMeaningforOthersSourcesofbrands?addedvaluePERCEIVEDADDEDVALUEDifferentiationTransformationofExperienceReassurance:TrustHowdowechoose?BrandsworkonaStimulus:Response?modelStimulus:ResponseAtwo-wayprocess,basedonacommonfieldofexperienceStimulusResponseSenderReceiverI.e.An慳ctive?consumerStimulus:ResponseWorkbackwardsfromtheresponse...whatmeaningdowewanttocreateStimulusResponseFocus:MeaningOut?notMessageInMeaningMessageAllmarketingactivityiscommunication-Productdesign/formulation-Brandname/packagingdesign-Positioning/promotion-Pricing/DistributionAlloffermeaning,offertomeetneedsConsumerrespondstothewholeenchiladaStimulus:ResponsePRACTICALAHolisticBrandRelationshipRATIONALTheBrandPRACTICALAHolisticBrandRelationshipBrand/productfeaturesFunctionaljustificationPrice/valuejudgementsAvailabilityRATIONALTheBrandPRACTICALSYMBOLICAHolisticBrandRelationshipBrand/productfeaturesFunctionaljustificationPrice/valuejudgementsAvailabilityEMOTIONALRATIONALTheBrandPRACTICALSYMBOLICAHolisticBrandRelationshipBrand/productfeaturesFunctionaljustificationPrice/valuejudgementsAvailabilityEMOTIONALRATIONALTheBrandHowIliveMyway/myidentityOtherslikemeTheexperiencePRACTICALSYMBOLICAHolisticBrandRelationshipBrand/productfeaturesFunctionaljustificationPrice/valuejudgementsAvailabilityRATIONALTheBrandSightformeHowIliveMyway/myidentityOtherslikemeTheexperienceEMOTIONALBasicBrandEngineeringBrandsarebuiltbybondingchosengroupsofpsychologicalvaluescrediblytothefunctionofthebrandToilluminateanddramatisethefunctionATriangularRelationshipFPEFunctionWhatisisanddoesATriangularRelationshipFPEFunctionPsychologyWhatisisanddoesEmotionalNeeds&Benefits/LifegoalsATriangularRelationshipFPEFunctionPsychologyWhatisisanddoesEmotionalNeeds&Benefits/LifegoalsIdeally,thesamewordATriangularRelationshipFPEFunctionPsychologyEvaluatorWhatisisanddoesAllowsconsumertojudgedeliveryEmotionalNeeds&Benefits/Lifegoals*AfterD.SextonAssociationswithdesiredbenefitsBrandABrandBBrandingBuildsLinkagesProblemProduct/Service*AfterD.SextonAssociationswithdesiredbenefitsPerBen

ExpBen

BrandARelImpRelImpBrandBRelImpRelImpBrandingBuildsLinkagesProblemProduct/ServicePerBen

ExpBen

PerBen

ExpBen

PerBen

ExpBen

Rel.Imp=RelativeimportanceofbenefitPer.Ben=PerceivedlevelofbenefitperformanceExp.Ben=Expectedlevelofbenefitperformance*AfterD.SextonAssociationswithdesiredbenefitsPerBen

ExpBen

BrandARelImpRelImpBrandBRelImpRelImpBranding&PositioningcreatetheassociativelinksBrandingBuildsLinkagesProblemProduct/ServicePerBen

ExpBen

PerBen

ExpBen

PerBen

ExpBen

EXPECTEDThreeTypesofCustomerValueCustomerCompanyWhattheCustomer:-Wants-Thinkstheyget-ActuallyGetPERCEIVED

ACTUALComponentsofBrandValue*AfterD.SextonManagingtheKeyElements

Perception Perceived ActualExpectation Actual Expected=xPricingIssuesCommunicationIssues慏esign?IssuesComponentsofBrandValue*AfterD.SextonIncreasingPerceivedValue1.Closethegaps:Expectation>Perception>Actual2.ChangethePrioritiesRe-rankimportanceofbenefits3.Addbenefits*Competeonnewdimensionsofthecustomer抯problem4.Improveactualperformance*Anotherwayofclosinggaps*Andtellthemaboutit!ComponentsofBrandValue*AfterD.SextonBrandHealthIndicatorsBrandsarebuiltfromtheinsideoutanddecaythatwaytoo.TYPICALNEWENTRANTDifferentiationRelevanceFamiliarityEsteem*AfterD.SextonAssessmentoftheBrandBrandHealthIndicatorsBrandsarebuiltfromtheinsideoutanddecaythatwaytoo.TYPICAL慏ECAYINGBRANDDifferentiationRelevanceFamiliarityEsteem*AfterD.SextonAssessmentoftheBrand慙ag?IndicatorsFollowedoutReinforcingADiffuseBrandImage1.Determinecausesfordiffuseimage2.Re-evaluatedesiredbrandimage3.Improveactualperformanceasnecessary4.Closegapsbetweenperceivedandactualbenefitperformance5.StrengthenselectedassociationsNBi) Importanttogetthesequencerightii) Takestime-BAtook10-12years*AfterD.SextonAssessmentoftheBrandAtitssimplest:Q=QualityProduct/servicequalityP=PricePhysicalcostsBrandsandtheValueEquation.V=PQ

Really:BrandsandtheValueEquation.p=PerceptionWhatthecustomerseesV(p)=P(p)Q(p)

Morecomplete:S=SignificanceImportancetocustomerE=EffortDegreeofhassle;doubt;difficultyBrandsandtheValueEquation.V(p)=P(p)Q(p)

E(p)S(p)

xV(p)=BrandsandtheValueEquation.P(p)Q(p)

E(p)S(p)

xBrandsareideas;operatingonperception.Aproperlyfocussedbrandaddsvaluebyaddingspecificmeaning.QualityBrandingcanincreaseperceivedqualityPriceBrandingcanincreasejustifiablepriceSignificanceBrandingcanincreasepersonalmeaningSignificanceBrandingincreaseslevelsoftrustInSummaryMarketingisadifferentmindsetfromsalesBrandsareideas,morethanmereproductsBrandsaddvaluebyaddingmeaningBrandsaresymbols;aconsumerlanguageAstimu