Professional Documents
Culture Documents
Topic 1
Title : Enhancing Brand Equity and Accountability
Introduction :
Marcom’s role in enhancing brand equity and influencing behavior. The topic emphasizes the
importance of achieving marcom accountability and includes discussion of return on marketing
investments and efforts to measure marcom effectiveness.
Topic Objectives:
Explain the concept of brand equity from both the company’s and the customer’s
perspectives.
What are some of the positive outcomes that result from enhancing brand
equity?
Describe the different models of brand equity from the customer’s perspective.
Understand how marcom efforts must influence behavior and achieve financial
accountability.
Topic Contents:
For many online “market mavens,” it is really difficult to stay on top of all the new social media options, run
the latest apps, and have all the “need to know” content and information on a 24/7 basis. Beyond the obvious
(Facebook, YouTube, Twitter, Google, etc.), there are so many competing niche brands out there to consider! As to
the social media content, just a few hours off (for some that could be not checking overnight), might mean missing
that important blog, Facebook post, or breaking news Tweet.
Yet, trying to keep up with the latest social media brands and content, such as work connections (LinkedIn),
location-based check-ins (foursquare, Facebook Places, and Facebook Nearby Friends), lifestyle blogging (Word
Press), etc., can easily create overflowing inboxes and information overload, even for the most tech-savvy
consumer. Currently, many social media brands are vying to be the “owners” of different social media spaces.
Introduction
The previous chapter introduced the philosophy and practice of integrated marketing communications (IMC) and
then presented a framework for thinking about all aspects of the marcom process. You will recall that this
framework included four components: (1) a set of fundamental decisions (targeting, positioning, etc.), (2) a group
of implementation decisions (mixing elements, creating messages, etc.), (3) two types of outcomes resulting from
these decisions (enhancing brand equity and affecting behavior), and (4) a regimen for evaluating marcom results
and taking corrective action. This chapter focuses on the third component in this framework, namely, the desired
outcomes of marcom efforts for brands. The basic issues addressed are these: What can marketing communicators
do to enhance brand equity and, beyond this, affect the behavior of their present and prospective customers?
Also, how can marketing communicators justify their investments in advertising, sales promotions, social media,
and other marcom elements and demonstrate financial accountability? The chapter first discusses the concept of
brand equity and explores this topic from both company and customer perspectives. A following section then
addresses the importance of affecting behavior, including a discussion of accountability.
Brand Equity
Before we discuss the important concept of brand equity, we should be clear
about the meaning of the term brand. The American Marketing Association defines a brand as a “name, term, sign,
symbol, design, or a combination of them intended to identify the goods or services of one
seller or group of sellers and to differentiate them from those of competition.”1 Thus, identification and
differentiation are important aspects of a brand. Also, a brand includes what is known as trade dress, which refers to
the appearance and image of the product, including its packaging, labeling, shape, color, sounds, design, lettering,
and style. Yet, a brand is more than just a name, term, symbol, and so on. A brand is everything that one
company’s particular offering stands for in comparison to other brands in a product category. A brand
represents a set of values that its marketers, senior company officials, and other employees consistently embrace
and communicate for an extended period.
So, what exactly is brand equity? For the purpose of our discussion, we define brand equity as the goodwill (i.e.,
equity) that an established brand has built up over its existence. As such, the concept of brand equity can be
considered both from the perspective of the organization that owns a brand and from
the vantage point of the customer.
A revenue premium is defined as the revenue differential between a branded item and a corresponding private-
labeled (store brand) item. With revenue equaling the product of a brand’s net price volume, a branded good
enjoys a revenue premium over a corresponding private-label item to the degree it can
charge a higher price and/or generate greater sales volume. In equation form, the revenue premium for brand b
compared to a corresponding private-label item, pi, is as follows:
Finally, another form of firm-based brand equity is somewhat akin to the notion of revenue premium just
described. We might label this unique form “taste-premium” brand equity.
Table 2.1 presents study results in terms of three percentages for each of the five products: (1) the percentage of
children who considered the food/drink item with the McDonald’s packaging to taste the best, (2) the percentage
who thought the two versions tasted the same or gave no answer when asked “Tell
me if they taste the same, or point to the food (drink) that tastes the best to you,” and (3) the percentage who
considered the food/drink item in the plain white packaging to taste the best.
The percentages in Table 2.1 make it clear that the participating preschoolers preferred the taste of all five food
and drink items when they had McDonald’s packaging over the identical food/drink items with plain-white
packaging.
The percentage of children preferring McDonald’s french fries was a whopping 76.7 percent. Even for carrots,
which is not a McDonald’s menu item, 54.1 percent considered the sampled carrot better tasting when it was
served in a McDonald’s package versus the 23.0 percent who preferred the carrot when served in a plain white
package.
These results convincingly indicate brand equity in action. Simply placing products in well-identified McDonald’s
packaging led children to regard these items to be superior tasting in comparison to identical items in plain-white
packages. These preferences were especially strong among those children who lived in homes with more television
sets and who more frequently ate food from McDonald’s. As will be indicated in the following section on consumer
based brand equity, these results demonstrate the role that the speak-for-itself and message-driven approaches
play in enhancing a brand’s equity.
Figure 2.2 shows two levels of awareness: brand recognition and recall. Brand
recognition reflects a relatively superficial level of awareness, whereas brand recall
indicates a deeper form. Consumers may be able to identify a brand if it is presented
to them on a list or if hints/cues are provided. However, fewer consumers are able
to retrieve a brand name from memory without any reminders.
Brand image represents the associations that are activated in memory when people think about a particular brand. As
shown in Figure 2.2, these associations can be conceptualized in terms of type, favorability, strength, and uniqueness.
In turn, brand concept management (e.g., for McDonald’s, Facebook, Burton, Netflix, and Harley-Davidson)
represents the analysis, planning, implementation, and control of a brand concept throughout the life of the
brand. This development can be achieved with appeals to consumers ’ functional,
symbolic, and/or experiential needs.
These appeal types all can help to develop a brand ’s concept, hopefully, leading to enhanced brand equity and
long-term brand loyalty. Thus, the ultimate objective is to achieve brand loyalty, a consumer’s commitment to
continue using or advocating a brand, as demonstrated not only by repeat purchases, but also by other positive
brand behaviors (e.g., word-of-mouth advocacy, brand identification).16 Relationships among appeals used
to develop brand concepts, brand equity, and brand loyalty are depicted in Figure 2.3.
Figure 2.3. A favorable brand image, brand equity, and strong loyalty does not happen automatically. Sustained
marketing communications are generally required to create favorable, strong, and perhaps unique associations
about the brand
The five brand-related personality dimensions are described and illustrated as follows.
Sincerity—This dimension includes brands that are perceived as being down-to-earth, honest,
wholesome, and cheerful. Sincerity is precisely the personality that Disney has imbued in its
brand.
Excitement—Brands scoring high on the excitement dimension are perceived as daring,
spirited, imaginative, and up to date.
Competence—Brands scoring high on this personality dimension are considered reliable,
intelligent, and successful.
Sophistication—Brands that are considered upper class and charming score high on the
sophistication dimension.
Ruggedness—Rugged brands are thought of as tough and outdoorsy.
Marcom practitioners can build positive brand-related associations via the power
of repeated claims about the features a brand possesses and the benefits it delivers. This type of brand-equity-
building can be thought of as the “message-driven approach.” Such an approach is effective if marcom messages
are creative, attention getting, believable, and memorable. Yet, we should note that the speak-for-itself and
message-driven approaches are not necessarily independent; that is, consumers’ associations about the brand can
result from both first-hand experiences and message communications.
A third equity-building strategy that increasingly is being used is “leveraging.” Brand associations
can be shaped and equity enhanced by having a brand tie into, or leverage, positive associations
that already exist through socialization in culture and society.
Among other forms of leveraging, Figure 2.5 shows how a brand can leverage associations from
other brands. In recent years, two brands often enter into an alliance or a co-branding relationship
that potentially serves to enhance both brands’ equity and profitability.
Ingredient branding is a special type of alliance between branding partners. For example, Lycra, a brand of spandex
from DuPont, initiated a multimilliondollar global advertising effort to increase consumer ownership of jeans made with
Lycra.
Figure 2.5 Leveraging Brand Meaning from Various Sources
Beyond leveraging a brand ’s image by associating itself with another brand, Figure 2.5 points
out that a brand can leverage its equity by aligning itself with people, such as its own employees
or endorsers. A later chapter discusses the role of endorsers in detail, so nothing more will be
said at this time other than to note that brand associations with endorsers can be fabulously
successful (think Michael Jordan and Gatorade) or potentially disastrous (e.g., Tiger Woods
and his public acknowledgement of affairs and the brands that quickly dropped their relationships
with him—Accenture, AT&T, Gatorade, and Gillette).
Other forms of leveraging include associating a brand with things such as events (e.g., sponsorship of the World
Cup soccer championship) and causes (e.g., sponsorship of a save-Darfur rally). Again, no further discussion is
devoted to these topics at this point given that Chapter 21 describes these forms of association in depth.
Finally, a brand’s equity can be leveraged by being associated with places such as the channel in which a brand is
distributed or a country image (labeled country of origin in Figure 2.5). Leveraging a brand by emphasizing its
country of origin is a potentially effective way to enhance the brand’s equity. When a brand leverages its country of
origin, the potential exists for the brand to benefit from this association or possibly to suffer if the country is
perceived in a less than positive light. It obviously is in brand marketers ’ best interest that their countries of origin
are perceived favorably.
What Benefits Result from Enhancing Brand Equity?
• Increased consumer loyalty
• Long-term growth and profitability for the brand
• Maintain brand differentiation from competitive offerings
• Insulate brand from price competition
Difficulty of Measuring Marcom Effectiveness
Though most marketing executives agree that measuring marketing performance
is critically important, a problem resides with the difficulty of measuring marcom
effectiveness. Several reasons account for this complexity: (1) obstacles in identifying an appropriate measure, or
metric, of effectiveness; (2) complications with getting people throughout the organization to agree that a
particular measure is the most appropriate; (3) snags with gathering accurate data to assess effectiveness;
and (4) problems with determining the exact effect that specific marcom elements
have on the measure that has been selected to indicate effectiveness.
Choosing a Metric
An initial problem is one of determining which specific measures (also called metrics) should be used to judge
marcom effectiveness. Although a variety of metrics are available, not all may be equally appropriate for judging
how well a company’s marcom efforts have performed.
Possible options include changes in brand awareness before and after the aggressive marcom program is
undertaken, improved attitudes toward the automobile model, increased purchase intentions, and larger sales
volume compared to last year’s performance. None of these options is without problems.
Gaining Agreement
As is generally the case when intelligent people are asked to select a particular solution to a problem, consensus
may be lacking. This is primarily due to the fact that individuals from different backgrounds and with varied
organizational interests often see their “world” differently or operate with varying ideas of
what best indicates suitable performance. For example, those in finance may be inclined to view things in terms of
discounted cash flows and net present values of investment decisions, whereas marketing executives have historically
tended to use measures of brand awareness, image, and equity to indicate success.36
Hence, arriving at a suitable system for measuring marcom performance requires gaining agreement from different
company officials, who likely have different views regarding how performance should be assessed.
Whatever the measure chosen, any effort to meaningfully assess marcom performance necessitates having data
that are reliable and valid. Returning to the automobile illustration, suppose that sales volume is used to judge the
effectiveness of this year’s marcom efforts. It would seem a simple matter to measure how many units of
the automobile model have been sold during the present fiscal period. However, some of the units sold this year
are residual orders from last. Also, a number of the units sold are fleet sales to companies that are entirely
independent of the marcom efforts directed to consumers. How sales should be calculated can also be
problematic, given the difference between units sold to dealers and units moved through to end user consumers.
All in all, collecting accurate data is no slam dunk.
Our hypothetical automobile company will employ several marcom tools (e.g., advertising media, several events,
and periodic rebates) to persuade consumers to buy their cars. Ultimately, brand managers and other marketing
executives are interested in knowing more than just the overall effectiveness of the marcom
program. They also need to identify the relative effectiveness of individual program elements in order to make
better decisions in the future about how best to allocate resources. This is, perhaps, the most complicated
problem of all. How much relative effect does each program element have on, say, sales volume compared to the
effects of other elements? A technique called marketing mix modeling is increasingly being used for this purpose.
Topic 2
Title : Evaluation of Media: Television and Radio
Introduction :
Emphasis throughout the chapter on the changing role of television and how it is being impacted
by factors such as cord-cutting, multi-tasking, growth of online viewing and other factors.
Topic Objectives:
Describe the role of television as an advertising medium and its advantages and
limitations.
Discuss how television advertising time is purchased for network and local
television as well as cable television.
Discuss how television viewing audiences are measured and developments in
audience measurement.
Discuss the role of radio as advertising medium and its advantages and
limitation.
Discuss how radio advertising time is purchased.
Discuss how radio audiences are measured and developments in audience
measurement.
Topic Contents:
Television Advertising
Producing commercials for television is the most expensive. As the technology of electronic
commercial production has soared, so have the costs and the complexity, resulting in greater
specialization in the production process. In the past, most agencies maintain in-house
production facilities. Now, they would rather sub-contract some of the services to cut on costs.
For a student of advertising, general advertising of the basic production concepts is still a must.
We need to know how commercials are made, why commercial production is so expensive,
what methods can be used to minimize expenses on production without sacrificing quality of
output or effectiveness of advertisements.
Script Development
Script for television advertisement is called the storyboard. This is divided into two parts: the
audio and video. The right side is the audio and the left side is the video; or another way is: the
upper frame is the video and the bottom frame is the audio. The video includes the camera
action, scenes; whereas, the audio includes the spoken words, the sound effects and music.
Scenes on the typical storyboard are sketched in frames by art director, and the audio printed
on the right or underneath of each scene. This will help the advertising agency and the client
visualize the concept, estimate the expense, present for approval and final guide for shooting.
This is final vision of what the advertisement will look like. Television advertisement goes
beyond the use of words, but also on believability, credibility and relevance.
David Ogilvy points out the following principles in TV Advertising:
The opening should be a short, compelling attention getter – a visual surprise, compelling in
action, drama, humor or human interest.
The demonstration should be interesting and believable-authentic and true to life; they should
never appear to be a camera trick.
The commercial should be ethical, be in good taste, and not offend local mores.
The entertainment should be a means to an end and not interfered with the message.
The general structure of the commercial and the copy should be simple and easy to follow. The
video should carry most of the weight, but the audio must support it.
The character should be the living symbol of your product – they should be appealing, believable
and most of all, relevant.
Spokesperson. Uses a ‘presenter’ standing infront of the camera delivering the copy directly to
the viewer.
Testimonial.This should use a well known celebrity who is believable or satisfied customers.
Demonstration. This should show how the product works and how to use it. It should be
relevant.
Close-up. a voice over is used than a presentation by someone on the screen, where a close-up
or focus is done on the product alone.
Story-line. This is similar to making a miniature movie, except that the narration is done off-
screen.
Slice-of-life. This is a little play that portrays a real-life situation. This is based on the pattern of
presenting a ‘predicament-solution-happiness’.
Vignettes and Situations. This consists series of fast paced scenes showing people enjoying the
product advertised as they enjoy life.
Animation. This may use computer-generated graphics and simulations, or cartoonist technique
with puppets or photo animation.
Stop animation. Objects and animals, or the product itself is given life in this technique. This
makes the product walk, run, dance and do live tricks.
Rotoscope. Animated and live action sequences are produced separately and then opticals are
combined.
Elements of Production
Preproduction. Includes all the work prior to the actual day of filming. The preparation
of the story board, selection of talents and casting, choosing and arranging of locations
for indoor and outdoor scenes, estimating costs, finding props and costumes.
Production. Is the actual shooting of the advertisement which can be very long and
tedious. Shooting encompasses the work of filming or videotaping the scenes.
Post production. It is where the commercial is actually put together. Scenes are edited,
music and sound effects added, voices are dubbed and other last minute changes.
With the rising costs of commercial production, these are the factors:
Superstar talent
Location shooting
Animation
Studio shooting
Set decoration
Photographic equipment
Legal requirements
Night, week-end filming
In buying television time, the advertisers determine available programs and rates, evaluate
program ratings, negotiate for the price, determine reach and frequency, sign of contracts and
finally review the affidavits of performance.
The media buyer provides the sales representative the date about the advertiser’s media
objectives and target audience and requests for the list of available time slots along with the
prices and program ratings. This list is called avails.
To determine most efficient program, cost per rating point (CPP) and the cost per thousand
(CPT) must be computer as follows:
Supposing the program “Deal or No Deal” has a rating of 5, reaches 400,000 people in the
audiences, and cost Php 30,000 for 30 second spot on Channel 2.
Then:
Cost/Rating Point=Php30,000 / 5
=Php 6,000.00
= Php 75
Pre-emptive rates. Which allows the station to sell the spot for a higher price to another
advertiser.
Run-of-schedule positioning. Which means the stations chooses when to run the commercial.
Affidavit of performance. Is an evidence that the commercials were aired as paid for.
Household Using TV (HUTV). It is the percentage of homes in a given area that have one or more
TV sets.
Radio Advertising
The dramatic increases in media costs is one of the major concerns of advertisers. With the presence of
competition within the industry, radio advertising rate increases have been the lowest among the
media. Radio is a significant medium for advertisers appealing to the mass market and housewives.
The electrical impulses by a radio station refers to the signal. All signals are transmitted by
electromagnetic waves called radio waves. These differ from one another in frequency or the number of
waves that pass a given point in a given period of time. All electromagnetic wave shave height, known as
amplitude, where in range can be similar to the difference between an ocean wave and a ripple in a
pond. On the basis of these dimensions, the principle of amplitude modulation (AM) has variation in
sound wave, while frequency remains constant. The principle of frequency modulation (FM), sound
wave varies with a corresponding variation in its frequency.
Drive time rate is an advertisement delivered at the discretion of the announcer, while special features
advertisements are delivered just in time with a traffic update, news report or time report. Radio
advertisements may be delivered live or pre-recorded. A live commercial is delivered in person by
station announcer, disc jockey, newscaster or station personality. Most radio stations accept these
maximum word length for live commercial scripts: 10 sec-25 words; 20 sec-45 words; 30 sec-65 words;
and 60 sec-125 words. The pre-recorded commercials are those produced by an agency, which had gone
through talent selection, musical scoring, sound track and voices recording, with a master tape for
reproduction and distributing to radio programs.
A rehearsal is scheduled.
The studio combines musical scoring and sound track with voices.
The producer or agency prepares several copies taken from master tape for distribution to radio
stations or programs.
Announcer-Actor Technique. Includes actor or actress voice giving reactions to the line delivered
by the announcer.
Slice-of-Life Technique. A dialogue which reenacts a true-to-life scene involving the listener or
talent in a problem situation where possible solution is the advertised product or service.
Jingle-Announcer Technique. A part of the copy is musical sound or song, combined with a line
delivered by the announcer which sets the product different from other advertisements on
radio.
Customer Interview Technique. The announcer may talk to an actual customer in the field or
within his studio booth, relating his experiences about the product or service advertised.
Coherence. Move from one topic to another; from one product feature to the next.
Rapport. Always make use of the word “you”, referring to the listeners and customers over the
radio.
Believability. Adhere the truth in advertising; honesty in claims for features, benefits and
advantages.
Distinctiveness. Make the advertisement unique with its tagline or slogan, music, sound or
voices.
Compulsion. Finally desire for action, attain listeners to act and buy the product or experience
the service advertised
Topic 3
Title : Evaluation of Media: Magazine and News Paper
Introduction :
Discusses challenges facing the magazine industry. Updated discussion of how both magazines
and newspapers are being impacted by the Internet and digital media.
Topic Objectives:
Layout. Integrates the first three parts into one whole advertisement. This places
the headline, illustration and copy in their proper spectrum.
Billboard layout or poster type is dominated by big illustrations and
minimal of copy.
Editorial layout on the extreme, has so much copy, without illustration.
This targets highly professional and educated segments which can
visualize the product from the paragraphs presented.
Conventional layout is the most traditional, having the presence of the
three parts and space equally divided to headline, illustration and copy.
Comic strip layout is done in pen-and-ink cartoonist technique presented
in humorous concept.
Photo-caption layout is presented in series of pictures, each photo with
caption to communicate the advertising message.
Some advertisers find it economical to use omnibus layout, featuring all
products of single advertisers in one full page.
Creative Art
Art. In advertising refers to the whole visual presentation, how the words are arranged,
the size and style of type, photographs and illustrations and how they should be
organized.
Art directors. This are responsible for the visual presentation of the advertisement.
Graphic designers. These are the people engaged in arranging various graphic elements
including type, illustrations, white space in the most attractive and effective way possible.
Illustrators. These are the artist who paint or draw the pictures of advertisement.
Production artist. Or paste up artists are responsible for assembling the various
elements of an ad and mechanically putting them together.
The Advertising Visual
Principle of Balance. Balance is the arrangement of the elements as they are positioned
on the page-left side of the optical center versus the right and above the optical center
versus below.
Principle of movement. This causes the readers to look at the advertisement in the
sequence desired, such that the placement of people, or animals can cause their eyes to
direct our eyes to the next important element to be read.
Principle of Proportion. Elements or parts of the advertisement should be given space
based on their importance.
Principle of Contrast. This involves contrast in color, size or style.
Principle of Continuity. This achieved by using the same design format, style and tone
for the advertisement.
Principle of Unity. Balance, movement, proportion, contrast and color may contribute to
the unity of design.
Principle of White Space. This is intended to focus attention on an isolated element, or to
rest the eyes of the reader for a colorful advertisement.
Visual Focus
Package of the product. This will help consumers identify the product on the point of
purchase or selling shelves.
Product itself. This should show the advertised item itself.
Product in use. This should be demonstrate how the car is use with selling point on
luxury or economy.
Product features. This should present product benefits, advantages, and features. It
should show a way to get customer’s attention and show how the advertised product or
service will benefit them.
Product comparison. A brand advertised being compared with another competitor or
other brands.
Product comparison. A brand advertised being compared with another competitor or
other brands.
Humor. Most advertising is entertainment, humor can make positive and lasting
impression.
Testimonial. This can make the advertisement not just truthful but also believable as
indorsed by a well-known personality.
Before and after. This may show variation of the illustration to recognize differences.
Negative appeal. Quite effective to point out what happens if the advertised product is
not used. Illustrations of not using the product will be very compelling.
1.Display Advertising
2. Classified Advertising
4. Legal Advertising
5. Amusement Advertising
Advertisement of movies to be shown, concerts, stage plays and other activities’ schedules for
relaxation or pleasure.
1. Discount Rate. Open rate provides some discount structure classified as frequency
discount or bulk discount.
1. Frequency discount is based on unit or pattern of purchase in addition to total amount
of space.
2. Bulk discount refers to sliding scale wherein the advertiser is charged proportionately
based on the advertisement purchased.
3. Flat rate offers a uniform charge for space without regard to the amount of space used
or the frequency of insertion, no discount is offered.
2. Run-of-paper rate (ROP). Includes rated quoted by a newspaper publisher which entitles the
advertisement to be positioned anywhere in the paper that the publisher chooses to place it.
3. Combination rate. A special rate for newspaper, such as morning paper and an evening paper,
set by some publisher.
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