Product Differentiation Consumers look for products that provide a clear and relevant differentiation from a competing brand Consumer perception Fast food Campbell’s Soup In Hand Hershey’s portable pudding

Example of Product Differentiation BK Veggie

Example of Product Differentiation

5 Factors that Create Strong Brands High involvement Product quality Brand longevity Advertising and market communication Brand personality

Price Each product must have a price Cannot separate consumer perception of the value of the product from what they are willing to pay “Value gap” Low price is not always best route

Effective Advertising Must be successful on two levels Communication Carrying out marketing goals Evaluate directness of intended communication effect and the anticipated time over which that effect should function.

Advertising to the Consumer National advertising Retail (Local) advertising End-product advertising General Electric – Lexan DuPont – Teflon Direct response advertising

Categories of Business Advertising Trade advertising Industrial advertising Professional advertising Corporate (institutional) advertising

Objectives of Trade Advertising Gain additional distribution Increase trade support Announce consumer promotions

Non-Product Advertising Idea advertising Service advertising Feature tangibles Feature employees Stress quality

The Advertising Spiral and Brand Planning Chapter 3 The Advertising Spiral and Brand Planning

Primary Stages of the Advertising Spiral Pioneering stage Competitive stage Retentive stage

Exhibit 3.1 Primary Stages of the Life Cycle Model

Pioneering Stage Create new product categories Shows new products that make old ideas look antiquated Implant new customs Change habits Develop new usage Cultivate new standards of living

Example of New Product Offerings

Example of New Product Offerings

Purell Hand Sanitizer

Competitive Stage Consumer asks, “What brand shall I buy?” Communication of product’s position Differentiation of the product to the consumer Feature the difference in the advertising

Retentive Stage The reminder stage of advertising Retain customers by keeping the brand name before them Highly visual stage Mainly name advertising Goal is to maintain market share Goal is to ward off consumer trial of another product Products in this stage are at the most profitable

The Advertising Spiral “The spiral provides a point of reference for determining which stage or stages a product has reached at a given time in a given market and what the thrust of the advertising message should be.”

Exhibit 3-5 The Advertising Spiral

Axe Deodorant

Toyota Prius

Exhibit 3-6 Egg Beaters advertises location of product.

Exhibit 3-7 A Typical Life-Cycle Model

Exhibit 3-8 Expanded Advertising Spiral

Bottom Half of the Advertising Spiral Newer pioneering – attempt to persuade more people to use the product Newer competitive – Period of by-product modification Newer retentive – Complete overhaul of the product

Kellogg's Special K Product Line Example of advertising spiral

Crest Toothpaste Example of advertising spiral

Spiral should be used to answer the questions: In which stage is the product? Should we use pioneering advertising to attract new customers? Should we work harder at competitive advertising to gain a larger market share? What portion of our advertising should be pioneering? Competitive? Are we simply coasting in the retentive stage? If so, should we be more aggressive?

Brands Most valuable asset Created, not manufactured Image and trust driven Consumer perception

Example of Strong Name Brand

Consumer Environment Consumers telling the marketer what they want and the marketer responding New dialog replacing traditional models Habit is a big challenge Success is measured by asking: Who buys the brand? What do they want from it? Why do they keep coming back? Purchase behaviors change with consumer needs

A Great Brand Is in it for the long haul Can be anything Knows itself Invents or reinvents an entire category Taps into emotions Is a story never completely told Is relevant