Amitava Chattopadhyay for Advertising and Promotion Strategy 2003 Advertising Planning 1

Amitava Chattopadhyay Advertising Planning Primary focus Understand persuasion Briefly discuss Positioning Communication objectives & budget

Amitava Chattopadhyay Advertising Planning How do customers choose a brand? AWARENESS ATTITUDE CHOICE

Amitava Chattopadhyay Advertising Planning What is awareness? Recall Recognition

Amitava Chattopadhyay Advertising Planning Recognition Recall Low High Graveyard Source: Young and Rubicam Recall Versus Recognition

Amitava Chattopadhyay Advertising Planning Awareness is a critical first step ALCOHOL TYPE CATEGORY GLOBAL BRANDS BEER BeerGUINNESS ® SPIRITS & LIQUEURS GinTANQUERAY ® Liqueurs BAILEYS ® RumMALIBU ® TequilaJOSE CUERVO ® VodkaSMIRNOFF ® Whisk(e)yJ&B ® JW ® RTD’s SMIRNOFF ICE ® WINE WinePIAT D’OR ®

Amitava Chattopadhyay Advertising Planning Awareness is a critical first step  Serves as an anchor

Amitava Chattopadhyay Advertising Planning Awareness is a critical first step cont ’d Serves as an anchor  Awareness drives liking Frequency Evaluation 0 +1 Source: Zajonc (1968)

Amitava Chattopadhyay Advertising Planning Relationship Between Familiarity and Liking Source: Roper Starch Worldwide (2000)

Amitava Chattopadhyay Advertising Planning Sales Effectiveness Source: Millward Brown Awareness

Amitava Chattopadhyay Advertising Planning Awareness is a critical first step cont ’d Serves as an anchor  Awareness drives liking  Awareness influences credibility  Awareness is relative

Amitava Chattopadhyay Advertising Planning Exp. 1 Exp. 2 Exp. 3 Exp. 4 Exp. 5 Cntrl. Source: Alba & Chattopadhyay (1986)  Awareness of your brand has a negative impact on the awareness of other brands

Amitava Chattopadhyay Advertising Planning Awareness is a critical first step cont ’d Serves as an anchor  Awareness drives liking!  Awareness influences credibility  Awareness is relative Awareness acts as a gatekeeper to action

Amitava Chattopadhyay Advertising Planning No Structure at Retrieval No Structure at Learning Structure at Learning 40%50% Structure at Retrieval 45%70% Percent of Choices Consonant with Stated Preference Source: Nedungadi, Chattopadhyay and Muthukrishnan (2001)

Amitava Chattopadhyay Advertising Planning How are brand attitudes formed? Beliefs about what? Attributes and/or benefits Beliefs Attitude

Amitava Chattopadhyay Advertising Planning How are brand attitudes formed? Beliefs about what? Attributes and/or benefits Where do benefits come from? Beliefs Attitude

Amitava Chattopadhyay Advertising Planning Sources of benefits Product attributes Brand the feature Easier to communicate Branding gives credibility Charge a premium

Amitava Chattopadhyay Advertising Planning Sources of benefits Product attributes Brand the feature Easier to communicate Branding gives it more credibility Allows one to charge a premium Use occasions Users Symbols Organizational associations

Amitava Chattopadhyay Advertising Planning

Amitava Chattopadhyay Advertising Planning How to think about organizational associations?

Amitava Chattopadhyay Advertising Planning Need a program to build associations

Amitava Chattopadhyay Advertising Planning Sources of benefits Product attributes Brand the feature Easier to communicate Gives credibility Charge a premium Use occasions Associations with users Symbols Organizational associations Personality

Amitava Chattopadhyay Advertising Planning Sincerity Down-to-earth Honest Wholesome Cheerful Excitement Daring Spirited Imaginative Up-to-date Competence Reliable Intelligent Successful Sophisticated Upper class Charming Ruggedness Outdoorsy Tough Dimensions of Brand Personality Source: Aaker (1997)

Amitava Chattopadhyay Source: McKinsey (2002) Advertising Planning

Amitava Chattopadhyay Advertising Planning Why use brand personality? Differentiation Reinforce brand benefit Enriches understanding Helps customers understand and relate Helps develop a common understanding among managers Building a relationship Helps express one’s personality Badge brand Brand as a friend--aspirational, trusted How does the brand behave?

Amitava Chattopadhyay Advertising Planning Driver Training Rack & Pinion Steering EBM Control Style Technology The Ultimate Driving Machine Valveotronic iDrive Dynamic Drive Sporty BMW Asian Open BMW Internatonal Open ClearEnergy James Bond BMW & Guggenheim Cool Sophisticated BMW Sponsorship of the Yacht Oracle

Amitava Chattopadhyay Advertising Planning Brand Identity—set of associations that the brand owner would like the consumer to have--objective Brand Image—set of associations that the consumer actually has in his/her head--reality Brand Identity Brand Image Brand Position

Amitava Chattopadhyay Advertising Planning Driver Training Rack & Pinion Steering EBM Control Style Technology The Ultimate Driving Machine Valveotronic iDrive Dynamic Drive Sporty BMW Asian Open BMW Internatonal Open ClearEnergy James Bond BMW & Guggenheim Cool Sophisticated BMW Sponsorship of the Yacht Oracle

Amitava Chattopadhyay Advertising Planning Clear brand position Shared across the organization All programs benchmarked against position

Amitava Chattopadhyay Advertising Planning Sources of benefits Product attributes If you can, brand the feature Easier to communicate Branding gives it more credibility Allows one to charge a premium Use occasions Associations with users Symbols Organizational associations Personality Are there different types of benefits? Functional Transformational

Amitava Chattopadhyay Advertising Planning How are attitudes formed from benefit information? Attitude= Sum (ValenceBenefit i x Belief StrengthBenefit i )

Amitava Chattopadhyay Advertising Planning How are attitudes formed from benefit information? Attitude=Sum(ValenceBenefiti x Belief StrengthBenefiti) Need to remember some key elements of model Only salient benefits All salient benefits No correlated benefits

Amitava Chattopadhyay Creative Strategy Are attitudes always formed so effortfully? High versus low involvement

Amitava Chattopadhyay Advertising Planning The planning grid Awareness Attitude Functional Motive Transformational Motive Low Involvement High Involvement

Amitava Chattopadhyay Advertising Planning Communication objectives Specific Link to marketing objectives Develop budget from the objectives

Amitava Chattopadhyay Advertising Planning: Summary Understand persuasion process Awareness Recall & recognition Attitudes Formation—high vs. Low involvement process Basis—functional vs. Transformational Link budgets to communication objectives