2. 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

3. Example of Product Differentiation
BK Veggie

4. Example of Product Differentiation

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

6. 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

7. 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.

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

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

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

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

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

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

14. Exhibit 3.1 Primary Stages of the Life Cycle Model

15. 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

16. Example of New Product Offerings

17. Example of New Product Offerings

18. Purell Hand Sanitizer

19. 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

20. 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

21. 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.”

22. Exhibit 3-5 The Advertising Spiral

23. Axe Deodorant

24. Toyota Prius

25. Exhibit 3-6 Egg Beaters advertises location of product.

26. Exhibit 3-7 A Typical Life-Cycle Model

27. Exhibit 3-8 Expanded Advertising Spiral

28. 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

29. Kellogg's Special K Product Line Example of advertising spiral

30. Crest Toothpaste Example of advertising spiral

31. 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?

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

33. Example of Strong Name Brand

34. 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

35. 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