MedicineLakex

 

02_clow_ch02.indd

A fter reading this chapter, you should be able to answer the following questions:
 W hy is a strong brand vitally important to the success of many fi rms?
 W hat are family brands, brand extensions, fl anker brands, co-brands, private brands, brand equity,
and brand recognition?  H ow can brands use different positioning strategies to succeed?
 W hat are contact points with customers that impact brand equity?
 H ow can marketing communications impact brand equity, and vice versa?
 W hat are the elements included in an integrated marketing communications plan?
2 I NDUSTRY PROFILE
So You Want to Work in Marketing Communications? S ushant Trivedi, Assistant Brand Manager, Gillette,
Procter & Gamble, Toronto
I f you ask Sushant if he has his dream job, he says, "Not only do I have my dream job, but I also work on my dream brand. I've been a ‘Gillette guy' for years, and have been very brand loyal to this brand. Getting to work on a brand that I identify with so strongly is a great experience. I also get to see the fruits of my labour in the market every day. If I go into a supermarket I see my brands on the shelf, or maybe I see an end of aisle display, I know that I was part of making that happen." A nd because Procter & Gamble is world-renowned for its many brands, rigor- ous training, and emphasis on quantitative analysis, positions with the fi rm are highly sought after. Sushant explains, "My fi rst introduction was through on cam-pus recruiting, as it is for most people fi nishing school and looking for their fi rst job. But before the interview there were a series of tests for things like personality, communications skills, as well as a logic and reasoning test. Just getting through the testing was diffi cult; they were as hard as any tests I wrote while in school." Only after these tests does the company interview potential candidates, and the fi rst interview is with the regional managers in the local area. "In my case I met with the people from British Columbia and had my fi rst interview with them. There were only a few people from my school that made it to this stage, and I was the only one that made it to the fi nal stage, which is the interview at the Canadian head offi ce in Toronto." S ushant says that one of the reasons the company is so well respected as an employer is their approach to showing their managers many different aspects of the business. "It helps us get a much better view of the overall company, and lets us learn things on one brand and apply them to another. In fact, my position was supposed to be on the Charmin brand but at the last minute someone else was put into that position. Then my position with Gillette opened up because someone who was there went to work on the Pantene brand." B ut the benefi t of getting different experiences goes further than just brand management. "We also get a chance to work more in a sales role, or even work on 02_clow_ch02.indd 26 Branding, Positioning, and the Integrated Marketing Communications Plan one of the major accounts like Loblaw's." The benefi t of this for Sushant is that it gets the managers as close as possible to the customers. "You need to know the customer. One thing I d idn't get much of in university was a sense of the impor-tance of merchandising and relationships with the channel partners. When you work in a consumer goods company, having a strong channel drives revenues. Of course, consumer demand is still an integral part of our business, but a strong sales funda-mental drives the brand and that's true in any category." A s part of the brand team for Gillette, Sushant needs to have a wide basket of skills because he and his team are responsible for virtually every aspect S ushant Trivedi, Assistant Brand Manager, Procter & Gamble. of the brand, from adding channels, to pricing, to product innovation—and of course marketing communications. "We are more like entrepreneurs than brand managers," says Sushant. "This is our business, and we run it the way we think it should be run. We are simply asked to grow the revenues and it's up to us to decide how best to do that. So we are responsible for everything from b udget management to public relations. We have resources at P&G that can provide us with market research if we need it. If we see the competition doing something we can decide the best way to respond. If a new product is introduced, we work with the American team to develop the overall plan, and also as the Canadian representative to make sure it works for us. This means we need to be sensitive to cultural issues across Canada and understand how to ensure our retailers will support the product." B eing part of such a large effort, it's not surprising that Sushant lists his ability to work as part of a team as his most valuable skill. "The team includes lots of members, and we all need each other to make our brand successful. So if I talk to someone in demand planning or market research, I need to know how to work with them i n order for them to give me what I need. But it also works the other way," says Sushant. "When people need something from me, I need to understand what their needs are so I can give them the support they are looking for. At the end of the day, everything we do should benefi t the overall team working toward brand success." 02_clow_ch02.indd 27 PART 1 Message Development
T eamwork is one area where Sushant felt lucky to get lots of exposure in his education. "Although team projects in classes were sometimes a pain at the time, they taught me so much about working as part of a team. I'm using all of those lessons I learned in my job now because here, as in school, I don't get to choose who I work with. I need to be able to work with a wide variety of people who have a wide variety of skills and opinions and focus everyone on one goal." "T he other thing that really helped me develop teamwork skills was participating in case competitions during school." Sushant was an active participant in several competition teams, usually consisting of about four or fi ve people. "During those competitions the team would be given a challenge to solve, and in some cases only a few hours to analyze the situation and recommend a solution. It forces you to develop the ability to work with others under some extreme conditions." A nother valuable skill for Sushant is his analytical ability. "We make all of our deci- sions based on data. So, for example, if we see that market share is decreasing we use data to try and fi nd the cause, and also to fi gure out a way to solve the problem." Here again Sushant credits his education for preparing him for t he challenge. "Case competi-tions especially were a great way to focus on how data and numbers dirty decisions. If I'm going to recommend that we launch a new channel, or run a promotion in Atlantic Canada, for example, I need to be able to show how that will deliver a return on invest-ment to the company." T he third skill that Sushant credits for his success is his ability to effectively com- municate. "This is true for both written and oral communication," explains Sushant. "At P&G we like to get things down to one page. If forces you to be focused and succinct in your writing. Being brief and succinct is far more diffi cult than most people imagine. Although I received s ome of these skills through my education, it's been something I've had to work on since starting here." Sushant does credit his education with helping him in his oral communication skills. "All those class presentations are proving very helpful now when I meet with vendors or channel partners, or if I'm briefi ng one of our agencies or internal teams." O ne piece of advice Sushant would give any aspiring marketer is to not be afraid of asking questions or asking for help, especially in the very fi rst few weeks of starting a job. "When I started at P&G there was an unbelievably steep learning curve. I love the fact that I'm always learning at my job, but early on it sometimes f elt like I was swimming against the tide. But I found that when I asked for help people were eager to give it because we've all been there. We've all been the new person that needs a little extra help. The trick," says Sushant, "is to not be afraid to ask for help when you need it." O VERVIEW
For many fi rms, their brand is one of their most valuable assets. Although a brand can
be described as a name, logo, or other symbol used by fi rms to differentiate themselves
from competitors, the value of a strong brand goes to the very heart of the marketing con-
cept. It represents the value that a product or service offers to the customer, and includes
aspects of every element of the marketing mix, including pricing; product features and
attributes; distribution channels; and, of course, marketing communications. Advertising,
consumer promotions, trade promotions, personal selling, the company's website, and
other marketing activities all affect customer perceptions of the fi rm.
M arketing communications can be considered the promise made by the brand, while the actual product or service and related customer experience is the delivery of that promise. For example, some marketers wish to establish their brands as "luxury" brands. Although the products sold by these companies typically feature high quality, their marketing communications a lso communicate this quality, and attempt to create an image of quality in the mind of the customer. Therefore, brand managers and marketing 02_clow_ch02.indd 28 CHAPTER 2 Branding, Positioning, and the Integrated Marketing Communications Plan
communications professionals are responsible for devel-oping and maintaining the brand. A company's image has a "bottom line" that can even be assigned a value on accounting statements. W hen the marketing team is able to clearly under- stand the brand, it is easier to make solid connections with customers. A strong IMC plan begins with an understanding of the brand and the overall marketing objectives for the fi rm. This is then used to segment the potential population and defi ne a target audience. Based on the knowledge of the brand and the target audience, an IMC plan can be crafted to ensure that the right message is placed in front of the right audience at the right time. T he fi rst part of this chapter examines the activi- ties involved in managing a brand. The second part addresses ways in which brands can position them-selves relative to their competitors to gain an advan-tage. Next, the chapter examines ways that brands touch customers, and the importance of a coherent, overall brand message. The last part of the chapter introduces the IMC plan format. Effective marketing communications starts with a clearly
defi ned brand. The brand identity summarizes what the
company stands for and the position the company has
Courtesy of State Farm®. established. Whether it is the "good hands" of Allstate Insurance or the "good neighbours" at State Farm, the goal of brand management is to create a specifi c impres- A State Farm ad stressing security. sion in the minds of clients and customers. In the case of insurance companies, helpful-ness, safety, and security are common and favourable elements of their strong image. O ne major problem many established companies encounter is brand parity. Brand parity occurs when there are few tangible distinctions between competing brands in mature markets. Brand parity means customers see only minor product differences. In many product categories, even minor variations are hard to fi nd. W hat customers believe about a fi rm is far more important than how company offi - cials view the image. Corporate names such as Tim Hortons, Toyota, Nike, and Petro-
Canada all conjure images in the minds of customers. This is referred to as brand equity,
and occurs when the customer is familiar with the brand and holds a positive opinion
about it. Brand e quity is most often conceptualized as the reactions a customer has to
a brand versus their reactions to a fi ctitious or generic product within the same cate-
gory. For example, the brand equity of Tide laundry detergent is based on the price pre-
mium customers are willing to pay for Tide versus other brands of detergent, especially
a generic brand.
T he value of a brand can be considerable. For many fi rms, the value in their brand is the majority of the value in their company. Which are the most valuable brands? Interbrand produces a list of the top 100 corporate brands. Companies such as Procter & Gamble, which have a portfolio of products and brands, were not included in the evalu-ation. In addition, c ompanies that operate under different names in different countries, such as Wal-Mart, were not included. The list only notes corporations that provide prod-ucts under one name. Using these criteria, Interbrand ranked Coca-Cola as the top global corporate brand. Microsoft was second. In Canada, Thomson Reuters was ranked as the most valuable brand. See Figure 2.1 for a complete listing. 02_clow_ch02.indd 29 PART 1 Message Development
T A B L E 2 . 1 T op 10 Global Corporate Brands
B rand Value (billions)
C ountry of Ownership
Source: "Best Global Brands 2010," Interbrand.com 2011 Interbrand. All rights reserved.
T op 10 Canadian Brands B rand Value (billions)
hoppers Drug Mart Source: "Best Canadian Brands 2010," Interbrand.com 2011 Interbrand. All rights reserved.
H OW DOES A BRAND CREATE VALUE?
A strong brand creates value by providing benefi ts for both customers and the company. Each of these is discussed next. B rand Value—The Customer Perspective
F rom a customer's perspective, the brand serves several useful functions. These include:
Providing assurance regarding purchase decisions of familiar products in unfamiliar Giving assurance about the purchase when the buyer has little or no previous experi- ence with the good or service Reducing search time in purchase decisions Providing psychological reinforcement and social acceptance of purchases A strong brand provides customers with positive assurance about what to expect from a fi rm. A can of Coke or Pepsi purchased in Anchorage, Alaska, has a comparable taste to one purchased in Liverpool, UK, or Kuala Lumpur, Malaysia. KFC serves the same 02_clow_ch02.indd 30 CHAPTER 2 Branding, Positioning, and the Integrated Marketing Communications Plan
or similar meals in San Francisco as it does in Minneapolis or Paris. A woman on vacation knows that if she makes a purchase from a Wal-Mart in Texas, a defective item can be returned to a local Walmart store in Toronto. T his assurance has even greater value when customers seek to purchase goods or services with which they have little experience. Consider families on vacation. Many travellers look for names or logos of companies from their native areas. Purchasing from a familiar corporation is viewed as being a "safer" strategy than buying something from an unknown c ompany. Taking a room at a hotel that the customer has never heard of seems riskier than utiliz-ing a familiar chain. Thus, a family visiting Brazil might normally not stay at the Holiday Inn, but because it is a rec-ognizable name they believe it is a lower-risk option than an unknown hotel. A nother signifi cant role brands play for customers is reducing search time. Purchasing a product from a famil-iar fi rm saves time and effort. An individual loyal to Ford spends fewer hours searching for a new car than does someone with no loyalty to any automobile manufacturer. The same holds in purchasing low-cost items such as gro- ceries. Search time is saved when a consumer purchases items from the same organization, such as Campbell's or Nabisco. F or many individuals, purchasing from a highly rec- ognized company provides psychological reinforcement Courtesy of TD Canada T and social acceptance. Psychological reinforcement comes from feeling that a wise choice was made and the belief that the good or service will perform well. Social accep- T D Canada Trust has built its tance is derived from knowing that many other individuals also have purchased from brand, in part, on the customer the same fi rm. More importantly, other people, such as family and friends, are likely to service it provides. accept the choice. C ritical Thinking Exercise
T hink about the last purchase you made that cost over $100. How important was the brand in your decision? Do you agree with the idea that consumers benefi t from brands? Write a one-page memo outlining how you feel the brand provided you with benefi ts in this purchase. T he same benefi ts are provided to both consumer and business-to-business audi- ences. A strong corporate image creates a major competitive advantage in the business-to-business marketplace since many of the processes that affect individual consumers also affect business buyers. Purchasing from a well-known company reduces the feelings of risk. A fi rm with a strong brand makes the choice easier for business customers seek-ing to reduce search time. Psychological reinforcement and social acceptance may also be present. Company buyers who make quality purchases might receive praise f rom orga-nizational leaders and others involved in the process. A strong brand is especially valu-able to a company expanding internationally. Members of foreign businesses are likely to feel more comfortable making transactions with a fi rm that has a strong brand. Risk and uncertainty are reduced when the buyer knows something about the seller. Therefore, a company such as IBM can expand into a new country and more quickly gain the confi -dence of consumers and businesses than a company with an unknown brand. 02_clow_ch02.indd 31 PART 1 Message Development
M easuring Brand Equity
Trying to determine whether brand equity exists is diffi cult. One method marketing
experts use is brand metrics. Brand metrics measure returns on branding investments.
Attitudinal measures associated with branding can be used to track awareness, recall, and
recognition. To increase their power, these factors can be tied with other variables ( e.g.,
brand awareness coupled with intent to buy). Brand awareness can also be connected to
use of either the product class (mustard) or the brand (Kraft, Grey Poupon). Remember
that when measuring awareness, recall, and recognition, a brand can be recalled for nega-
tive as well as positive reasons. 1
Recognizing that popular brands are not always powerful brands, Reader's Digest commissioned a survey to understand which of Canada's brand garner the most trust from consumers. Figure 2.2 shows the most trusted brands in a range of categories. C ritical Thinking Exercise
T he results in Figure 2.2 are from a national survey of conducted online with 1,500 Canadians. Do you agree with the results? Are there categories where you feel the brand listed is not the most trusted brand? Write a one-page memo to the brand manager of the brand you feel should be in the most trusted position, and outline how you feel he or she should use marketing communications to help get the top spot. B rand Value—The Company Perspective
F rom the viewpoint of the fi rm itself, a strong brand generates many benefi ts.
Extension of positive customer feelings to new products The ability to charge a higher price or fee Consumer loyalty leading to more frequent purchases F IGURE 2.2
Canada's Most Trusted Brands
 Kraft (Peanut Butter)
 Febreeze/Glade (Air Freshener)
 Crest (Regular Toothpaste)
 Kellogg's (Breakfast Cereal)
 Iams (Pet Food)
 Tylenol (Cough/Cold Remedy)
 Dempsters/Wonder (Sandwich Bread)
 Tropicana (Fruit Juice)
 Sensodyne (Sensitive Toothpaste)
 L'Oreal (Hair Colouring)
 Dove (Skin Care – Body)
 Sony (HD LCD/Plasma TV Manufacturer)
 Oil of Olay/Nivea (Skin Care – Face)
 Toyota (Hybrid Car Manufacturer)
 Quaker (Snack Bars)
 Mr. Clean (Household Cleaner)
 Gatorade (Sport/Energy Drink)
 Bell (Internet Service Provider)
 Coppertone (Sunscreen Skin Protection
 Splenda (Low Calorie Sweetener)
 Sun Life (Life Insurance Company)
 Michelin (Tires)
 Becel (Margarine)
 Dyson/Hoover (Vacuum Cleaner)
 Tylenol (Pain Reliever)
 Jamieson (Vitamins)
 Toyota (Passenger Car Manufacturer)
 Yoplait (Yogurt)
S ource: Trusted Brand 2011: Canada's Most Trusted Brands, http://www.readersdigest.ca/trusted-brand-2011. 1996–2011, Reader's
Digest Magazines Canada Limited— 1996–2011, The Reader's Digest Association (Canada) ULC — All rights reserved.
02_clow_ch02.indd 32 CHAPTER 2 Branding, Positioning, and the Integrated Marketing Communications Plan
Positive word-of-mouth endorsements Higher level of channel power The ability to attract quality employees More favourable ratings by fi nancial observ- ers and analysts A strong brand provides the basis for the development of new goods and services. When consumers are already familiar with the corpo-rate name and image, the introduction of a new product becomes much easier, because long-term customers are willing to give something new a Used with permission of General Mills Marketing Inc.
try. Customers normally transfer their trust in and beliefs about the corporation to a new product. For T he strong General Mills brand example, when Tim Hortons introduced sandwiches to their menu, customers were more name makes the introduction of likely to assume that the same quality found in other Tim Hortons products would be new products easier. found in the new item. Another restaurant without the same reputation for quality might not have success when introducing a new item. A strong brand allows a company to charge more for its goods and services. Most customers believe "you get what you pay for." Better quality is often associated with a higher price. This, in turn, can lead to greater markup margins and profi ts for the fi rm. F urther, fi rms with strong brands have more loyal customers. Customer loyalty results in patrons purchasing more products over time. Loyal customers also are less likely to make substitution purchases when other companies offer discounts, sales, and other enticements to switch brands. H eightened levels of customer loyalty are often associated with positive word-of- mouth endorsements. Favourable comments help generate additional sales and attract new customers. Most consumers have more faith in personal references than in any form of advertising or promotion. P ositive consumer attitudes create corporate equity, which provides greater channel power. Retailers offer brands that are viewed positively by customers. Retailers buy the brands that pull customers into stores. As a result, a company that has a strong brand has more control and power in the channel and with retailers. A nother advantage of a strong brand is attracting quality employees. Just as consum- ers are drawn to strong fi rms, potential workers apply for jobs at companies with solid reputations. Consequently, recruiting and selection costs are reduced. All things being equal, there is less employee turnover at these companies. A strong brand often results in a more favourable rating by Wall Street analysts and by other fi nancial institutions. This is especially helpful when a company seeks to raise capital. Further, legislators and governmental agencies tend to act in a more support-ive manner toward companies with strong and positive reputations. Lawmakers are less inclined to pursue actions that might hurt the business. Members of regulatory agencies are less likely to believe rumours of wrongdoing. FIGURE 2.3
Customer Benefi ts
Company Benefi ts
Customer and Company Benefits of a Strong
Brand
 Assurance of product quality
 Brand extensions are easier
 Assurance when not familiar with product
 Can charge a higher price
 Higher customer loyalty
 Reduces search time
 More frequent purchases
 Psychological and social acceptance
 Positive word-of-mouth communications
 Ability to attract quality employees
 More favorable view by fi nancial analysts
02_clow_ch02.indd 33 PART 1 Message Development
T he Road to Brand Value
B ecause a brand really only exists in the mind of the customer, the value generated from
a strong brand relies on a number of attitudes and behaviours related to the mindset
of the customer. Previous research has identifi ed fi ve key dimensions to mindset that
essentially follow the customer, from introduction to the brand to post-purchase behav-
iours. 2 First is brand awareness, or the extent to which customers recognize the elements
associated with the brand. Second are the associations that customers make with brands.
These are thoughts c ustomers have pertaining to one or more aspects of the brand. For
example, BMW has built a brand based on driving performance. Customer brand asso-
ciations for the BMW brand are such things as speed, handling, and precision. The third
dimension involves attitudes that customers have on the ability of a brand to outperform
competitors on a relevant association. Fourth is brand attachment, characterized by how
loyal customers feel toward a brand. Some brands, such as BlackBerry, generate an
almost cult-like devotion among customers. U.S. president O bama famously fought to
keep his BlackBerry after he became president, even though secrecy concerns led to
pressure for him to give it up. The last dimension is brand activity—how do customers
use the brand, talk to others about it, and so on? Many brands do an excellent job of
creating an environment that fosters brand activity, such as the Jeep Jamboree events
that encourage Jeep owners to connect with one another and that offer driving tips for
off-roading.
A pproaches to Branding
M arketers take many different approaches when it comes to using their brands to gener-
ate revenue for the company. Figure 2.4 identifi es several types of approaches.
M any brands produce family trees. A family brand is one in which a company offers
a series or group of products under one brand name. For example, the Black & Decker brand is present on numerous power tools. The advantage of a family brand is that con-sumers usually transfer the image associated with the brand name to any new products added to current l ines. When Black & Decker offers a new power tool, the new item auto-matically assumes the reputation associated with the Black & Decker name. These trans-fer associations occur as long as the new product is within the same product category. When additional products are not related to the brand's core merchandise, the transfer of loyalty might not occur as easily. L everaging an existing brand to enter a new market is known as brand extension.
The extension may or may not be related to the core brand. For example, Nike has been successful in extending its brand name to a line of clothing to the point that Nike is now known as an apparel company as much as a shoe company. Black & Decker has been successful in extending its brand name to new types of power tools. I t has not been as successful, however, in extending its line to small kitchen appliances. Other marketers use brand extension exclusively for products within the same category and use a mul-tiple brand approach for products outside this category. For example, Coke uses the Coke brand on many soft drinks, including Coke, Diet Coke, and Coke Zero. But they use the Dasani brand for their bottled water and Minute Maid for orange juice products. FIGURE 2.4
 Family brands. A group of related products
 Ingredient branding. The placement of one
Types of Brands
sold under one name. brand within another brand.  Brand extension. The use of an established
 Cooperative branding. The joint venture
brand name on products or services not of two or more brands into a new product related to the core brand.  Flanker brand. The development of a new
 Complementary branding. The marketing of
brand sold in the same category as two brands together for co-consumption. another product.  Private brands. Proprietary brands marketed
 Co-branding. The offering of two or more
by an organization and sold within the brands in a single marketing offer. organization's outlets. 02_clow_ch02.indd 34 CHAPTER 2 Branding, Positioning, and the Integrated Marketing Communications Plan
O N THE JOB
S hould you extend your brand?
6 . If retailers accept the brand extension, the exten-
sion is more likely to be successful. This is because B rand extension is an attractive strategy for many retailer support can help "push" the product to marketers because it allows them to capitalize on the value of an existing brand. However, brand exten-sions are not always successful. Harley-Davidson 7 . If the degree of fi t between the brand and the
enjoys strong brand equity in the motorcycle cat- brand extension is high, the extension is likely to egory and has been able to extend that brand into be successful. An example of a fi t extension would other areas, such as the co-branding effort with be using the Coke brand on a new soft drink, while Ford trucks. However, when Harley-Davidson tried to an example of a low fi t extension is using the Coke extend its brand into perfume, consumers rejected it. brand on a new automobile. T he main problem with brand extensions is that they 8 . When preference for the parent brand is driven more
can dilute the value of the original brand, or even kill by physical attributes than by brand name, brand the brand completely. In the case of Harley perfume, the extensions are less likely to be successful. parent brand did not suffer long-term harm, but some
argue that brand extensions always harm at least some
9 . If the perceived risk with a trial of the brand exten-
of the parent brand value. sion is low, the brand extension is more likely to be I n order to avoid product fl ops, or even worse, harm- ing a valuable brand, there are a number of factors that 1 0. If target consumers are more innovative, they will be
managers should consider before extending their brands. more likely to accept a brand extension. 1 . If the conviction for the parent brand is high, brand
T he reader should note the important role that extensions are more likely to be successful. marketing communications plays in the majority of these success factors. Apart from the actual degree of 2 . When consumers have more experience with a brand,
marketing communications support for the brand exten- they are more likely to accept a brand extension. sion itself (item 5), marketing communications can help 3 . If the reputation for quality in the parent brand is
develop longer-lasting and more meaningful relationships high, the extension is more likely to be successful. with customers (items 1 and 2), establish a reputation for quality (item 3), establish strong ties with retailers 4 . If the brand has been extended successfully before,
(item 6), and reduce the risk associated with trial (item 9). brand extensions are more likely to be successful in the future. 5 . When a brand extension receives a high degree of
marketing communications support, the extension is more likely to be more successful. S ource: Adapted from: Franziska Volckner and Henrik Sattler (2006), "Drivers of Brand
Extension Success," Journal of Marketing, 70 (April), 18–34.
B rand extension is often used to take a brand into a completely new category. Gillette is a brand that was traditionally fi rmly entrenched with men. Then the company launched a massive campaign to position itself in the women's market. New products, including the Sensor Excel razor and Satin Care Shave Gel, were offered by mail to consumer homes, and free samples were placed in homeroom bags f or 14- and 15-year-old girls at school. Gillette's advertisements encouraged women to view the products as a key part of being physically and psychologically ready for anything. The ad copy asked "Are you ready?" and answered "Yes, I am!" This positioning matches with the position of Gillette's prod-ucts for men, which are marketed using the "Best a man can get" slogan. 3 An alternative to a brand extension program is a fl anker brand. A fl anker brand is
the development of a new brand by a company in a good or service category in which it currently has a brand offering. For example, Procter & Gamble's primary laundry deter-gents are Cheer and Tide. Over the years, P&G has introduced a number of additional brands, such as Ivory Snow. In total, P&G offers 11 different brands of detergents in North America; 16 in Latin America; 1 2 in Asia; and 17 in Europe, the Middle East, and 02_clow_ch02.indd 35 PART 1 Message Development
Africa. Figure 2.5 lists Procter & Gamble's various brands of laundry detergents, cos-metics, and hair-care products. The company's marketing team introduced these fl anker brands to appeal to target markets in which the main brand was not reaching customers. Thus, using a set of fl anker brands can help a company offer a more complete line of products. This creates barriers to entry for competing fi rms. S ometimes a fl anker brand is introduced when company leaders think that offering the product under the current brand name might adversely affect the overall marketing program. Hallmark created a fl anker brand known as Shoebox Greetings. These cards sell in discount stores as well as Hallmark outlets; however, the Hallmark brand is only sold in retail stores carrying the Hallmark name. Shoebox Greeting cards are lower priced and allow Hallmark to attract a larger percentage of the market. F irms operating in high-end markets often use this strategy when they compete in low-end markets. It also is used in international expansion. For example, Procter & Gamble sells Ariel laundry detergent in Latin America, Asia, Europe, the Middle East, and Africa, but not in North America. Offering different brands for specifi c markets is a common fl anker brand strategy that helps a fi rm to expand into international markets using more than its current brands. F lanker brands are also used in business-to-business markets. Hotels, for example, rely heavily on business travellers for a consistent revenue stream. InterContinental Hotels Group, which owns, among other brands, InterContinental, Crowne Plaza, Holiday Inn, FIGURE 2.5
Brands Sold by Procter & Gamble
Product Category
North America
Latin America
Europe, Middle East, and Africa
Laundry and cleaning brands 02_clow_ch02.indd 36 CHAPTER 2 Branding, Positioning, and the Integrated Marketing Communications Plan
and Holiday Inn Express, understands the needs of business travellers and offers unique services that add value to the businessperson's stay. High-speed Internet access is avail-able at all of the properties, and at the Crowne Plaza, wireless connections are available at any location on the property. Understanding that time and convenience are important t o business travellers, InterContinental Hotels offers an online wireless reservation sys-tem that allows business guests to review, cancel, or modify reservations. To ensure that business guests have a good night's sleep, Crowne Plaza offers a guaranteed wake-up call, quiet fl oors, sleep amenities, sleep CDs, and relaxation tips. 4 The Holiday Inn brand, especially Holiday Inn Express, emphasizes economy in its marketing communications. Speed is also an important positioning attribute for the brand, as can be seen in ads that include its breakfast-to-go offering. I n addition to fl anker brands and brand extensions, marketers also use co-branding to reach new customers or generate new revenue. Co-branding takes three forms: ingredi-
ent branding, cooperative branding, and complementary branding. Ingredient branding
is the placement of one brand within another brand, such as Intel microprocessors in HP
computers. Cooperative branding is the joint venture of two or more brands into a new
good or service. WestJet offers a MasterCard that allows users to collect points they can
redeem on WestJet fl ights. This card takes advantage of the s trength of both brands. Each
company benefi ts from the relationship the other has with customers. Complementary
branding is the marketing of two brands together to encourage co-consumption or
co-purchases. One of the most common forms of complementary branding involves the
co-location of two retail outlets within the same physical space. Subway sandwich shops
can be found in many convenience stores, McDonald's are sometimes found in Walmart
stores, Tim Hortons and Wendy's share many locations across Canada, and BMO branches
can be found in Safeway supermarkets.
C o-branding succeeds when it builds the brand equity of both brands. For example, when Monsanto created NutraSweet, consumer trust was built by placing the NutraSweet logo on venerable brands consumers trusted, such as Diet Pepsi, Wrigley's Chewing Gum (Wrigley's Extra), and Crystal Light. The strategy worked so well that NutraSweet became the standard of quality in the sweetener industry. 5 C onversely, co-branding is not without risk. If the relationship fails to do well in the marketplace, normally both brands suffer. To reduce the risk of failure, co-branding should be undertaken only with well-known brands. Co-branding of goods and services that are highly compatible generally will be less risky. Ingredient and cooperative brand-ing tend to be less risky than complementary branding because both companies have more at stake and devote greater resources to ensure success. C ritical Thinking Exercise
A ssume that MuchMusic is looking to expand its audience. The CEO recently came back from a seminar where she heard about co-branding, and she thinks this is a good idea to help increase the presence of the brand in the market. Identify three potential co-branding opportunities for the company. In each case, what will the company gain from the partnership? Why would the partners be interested in the partnership; what will they get out of it? F or small companies and brands that are not as well known, co-branding is an excel- lent strategy. The diffi cult part is fi nding a well-known brand that is willing to take on a lesser-known product as a co-brand. Yet, if such an alliance can be made, the co-brand relationship often builds brand equity for the lesser-known brand, as in the case of NutraSweet. Co-branding also provides access to distribution channels that may be dif-fi cult to obtain because of either lack of size or dominance by the major brands. P rivate brands (also known as private labels and store brands) are proprietary
brands marketed by an organization and normally distributed exclusively within the 02_clow_ch02.indd 37 PART 1 Message Development
organization's outlets. Private brands have experienced a rollercoaster ride in terms of popularity and sales. To many individuals, private brands carry the connotation of a lower price and inferior quality. Historically, the primary audiences for private labels were price-sensitive i ndividuals and low-income families. This is no longer true; retailers are investing marketing dollars to develop their private brands, which now account for approximately 15 percent of all retail sales and 19 percent of food items sold. According to ACNielsen, in the last 10 years store brand sales increased 64 percent, compared with 30 percent for major manufacturers' brands. 6 O ver the past few years, several changes have occurred in the private brand arena. Although private labels still tend to be priced between 15 and 30 percent lower than national brands, they also generate higher gross margins than national brands, because there is no channel intermediary. This higher margin enables retailers to e arn higher prof-its on private brands, or, alternatively, to reduce the price of the private brands to make them more attractive to price-sensitive consumers. Retailers that maintain the higher markup on private labels have the opportunity to use some of the margin for advertising and promotions of the brands. A nother emerging trend in retailing is that loyalty toward retail stores has been gain- ing while loyalty toward individual brands has been declining. Rather than going to out-lets that sell specifi c brands, many shoppers go to specifi c stores and are willing to buy from the brands offered by that store. This increase in loyalty to retailers has caused several department and specialty stores to expand the number of private-brand products that are offered. To do so, however, requires that the retailer develop a private brand that is congruent with a customer's image of the retailer. 7 S avvy retailers recognize the value of private labels and how they can be used to differentiate the store from competing retailers and from national brands. These stores promote these labels as distinctive brands aimed toward specifi c market segments. Emphasis is on meeting the needs of consumers with a quality product. It is not based on price. N ew trends in the use of private labels are emerging. Many retailers treat private brands more like national brands. Marketing dollars are spent on improving the actual label, on more noticeable in-store displays, and on packaging. 8 Retailers without large national ad budgets must rely more on displays and attractive packaging. A drab, c heap display does not convey the message that a private brand is as good as or better than a national brand. For many consumers, the two are indistinguishable. Unless they are famil-iar with the store's private brand labels, they may think they are purchasing a national Many Canadian grocery retailers have developed their own private label brands to compete with manufacturers' brands. BCritchley/Dreamstime.com/GetStock.com. 02_clow_ch02.indd 38 CHAPTER 2 Branding, Positioning, and the Integrated Marketing Communications Plan
FIGURE 2.6
 Focus on core brands.
 Focus on in-store selling and packaging.
Tactics Used by Manufacturers to Fight
Gains Made by Private Labels
 Increase advertising.
 Use alternative methods of marketing.
 Introduce new products.
Source: Based on Vanessa L. Facenda, "A Swift Kick to the Privates," Brandweek 48, no. 31 (September 3, 2007), pp. 24–28.
H ow do manufacturers respond to the inroads made by private labels? Figure 2.6 lists some of the strategies. 9 Many manufacturers focus on a few core brands rather than split advertising dollars among a large number of brands. The core brands are advertised heav-ily. This helps the manufacturer maintain its brand name and reinforces the message that consumers are making the right decision when they purchase the manufacturer's national brand. The goal is to make an emotional connection with consumers both before and after the purchase. M anufacturers may attempt to reduce the impact of private labels on sales by expand- ing product offerings. Private labels are normally copies of national brands. By aggres-sively introducing new products and new versions of current products, a manufacturer can maintain the loyalty of its current customers and be seen as an innovator. Hanesbrands Inc. owns a number of name brand apparel companies, such a s Bali, Playtex, Champion, Ocean, and Hanes. The company expanded into the active wear market with the Hanes Sport casual collection. The surge in popularity of active lifestyle clothing created an Hanesbrands Inc. is one company increase in sales of other related products, such as the sports underwear featured in the that has introduced new products Hanes ad in this section. Hanesbrands Inc. now manufactures products for women, men, into the active lifestyle wear market. M anufacturers must improve in-store displays and packaging to counter private labels. In displays and on packages, the manufacturer's brand must have a clear and compelling place. In some cases, it is the package that sells the product. Vendors of con-diments, such as ketchup and mustard, know that the container has become extremely important to consumers. I n addition to using advertising, many manufactur- ers have turned to alternative product promotion meth-ods. Gillette's marketing team realized that to encourage young males to use company products they needed to place samples in their hands. Consequently, the Fusion razor is mailed to men within one month of their 18th birthdays. Both Huggies and Pampers have developed websites that furnish usable information for young moth-ers. The sites also allow young mothers to communicate with each other. B rand Names
A corporate name is the overall banner under which all
other operations occur. According to David Placek, presi-
dent and founder of Lexicon, Inc., "The corporate name
is really the cornerstone of a company's relationship with
its customers. It sets an attitude and tone and is the fi rst
step toward a personality." 10 Corporate names can be
divided into the following four categories based on their
actual, implied, or visionary meaning (see Figure 2.7). 11
Used with permission of Hanesbrands Inc.
O vert names include Midwest Airlines and BMW Motorcycles USA. Implied names include FedEx and 02_clow_ch02.indd 39 PART 1 Message Development
FIGURE 2.7
Categories of Corporate Names
 Overt names reveal what a company does.
 Conceptual names capture the essence of
 Implied names contain recognizable words
what a company offers. or word parts that convey what a company  Iconoclastic names represent something
unique, different, and memorable.
IBM (International Business Machines). Conceptual names, such as Google and Krispy Kreme, take a different approach. The name Google evokes a vision of a place where an endless number of items can be found, and Krispy Kreme suggests confectionaries fi lled with tasty cream. Monster.com and Fathead.com are examples of iconoclastic names. C ritical Thinking Exercise
I t can be argued that the fi rst two categories (overt and implied) are better for mar-keting communications purposes because they make it easier for consumers to recall the good or service, and they aid in the overall communications objective. However, the success (and associated value) of many brands calls this into question. F or exam-ple, the Starbuck's name in itself didn't mean anything to most consumers until they associated it with a brand experience. Do you think examples like Starbuck's are the exception or the rule? Can the choice of a name create an advantage for marketing T o prevent cannibalism of its communications, or is it irrelevant? other teas, Celestial Seasonings positions each version for individual target markets. P OSITIONING
A n important aspect in brand management is positioning.
Positioning is the process of creating a perception in the
consumer's mind regarding the nature of a company and
its products relative to competitors. Positioning is cre-
ated by such variables as the quality of products, prices
charged, methods of distribution, packaging, image, and
other factors. A product's position is based on two ele-
ments: (1) the product's standing relative to the competi-
tion and (2) how the product is perceived by consumers.
C onsumers ultimately determine the position a product holds. Marketing programs are designed to position a prod-uct effectively. To do so, marketing communications must either reinforce what consumers already believe about a product and its brand name, or shift consumer views toward a more desirable position. The fi rst strategy is certainly easier to accomplish. The goal of positioning is to fi nd that niche in a consumer's mind that a product can occupy. P ositioning is vital for companies such as Celestial Seasonings® brands, because it helps prevent cannibal- ism among various brands within the product portfolio. Celestial produces teas that appeal to a wide variety of consumer segments. The one pictured in this section is being marketed to individuals who are concerned about their health and may not want to give up taste in their diet. E ffective positioning can be achieved in seven dif- ferent ways (see Figure 2.8). Although companies might try two or three approaches, such efforts generally only Courtesy of Celestial Seasonings, Inc. confuse customers. The best method is to use one of these approaches consistently. 02_clow_ch02.indd 40 CHAPTER 2 Branding, Positioning, and the Integrated Marketing Communications Plan
FIGURE 2.8
 Attributes
 Product user
Positioning Strategies
 Product class
 Use or application
 Cultural symbol
 Price–quality relationship
A n attribute is a product trait or characteristic that sets it apart from other products. The Sony ad in this section is aimed at business customers. The advertisement promotes the attribute of quality, because the projector provides stronger light. The ad attempt to convey the message that the attribute featured by the brand outperforms the competition. A nother common tactic is to use competitors to establish position. This is done by contrasting the company's product with others. For years, Avis ran advertisements com-paring itself with Hertz. Avis admitted it was not number one, but turned that position into an advantage, because Avis was willing to "try harder" for business. Subway often takes aim at other quick-service restaurants in its marketing communications, comparing the nutritional content of its food directly with other options. U se or application positioning involves creating a memorable set of uses for a prod- uct. Arm & Hammer has long utilized this approach in its attempt to convince consumers to use its baking soda as a deodorizer in the refrigerator. Arm & Hammer has also been featured as a co-brand in toothpaste, creating yet another use for the product. B usinesses on the extremes of the price range often use the price–quality relation- ship. At the top end, businesses emphasize high quality, whereas at the bottom end, they emphasize low prices. Hallmark cards cost more, but they are for those who "only want to send the very best." Other fi rms seek to be a "low-price leader," with no correspond-ing statement about quality. Walmart consistently strives for the low-cost position in the This business-to-business ad for a marketplace with its "rollback pricing" messaging strategy. research fi rm positions the service A product user positioning strategy distinguishes a brand or based on the research sample product by clearly specifying who might use it. Marketing com- munications for GMC trucks uses the idea that its customers have very diffi cult jobs that require tough, durable, and depend-able trucks. Inherent in this message is that GMC trucks are for people who work with their trucks, as opposed to people who buy a truck to take their kids to soccer practice. The positioning based on the users (often defi ned as construction workers) gives the trucks their image of toughness and strength. S ometimes fi rms seek to position themselves in a particu- lar product class. Orange juice was long considered part of the breakfast drink product class. Years ago, those in the industry decided to create advertisements designed to move orange juice into a new product class, with slogans such as "it's not just for breakfast anymore." This repositioning h as been fairly success-ful. Many consumers drink orange juice at other times dur-ing the day. This result was due, in part, to the perception that orange juice is a healthy drink. To be successful, this approach must position orange juice as an alternative to soft drinks such as Pepsi or Coke. I dentifying a product with a cultural symbol is diffi cult but, if done successfully, can become a strong competitive advantage for a fi rm. Playboy has evolved into an entertainment empire by becoming a cultural symbol, albeit a controversial one. In its advertisement shown in this section, Stetson cologne is tied to the American cowboy and the spirit of the West. The ad copy states that "the attraction is legendary." The purpose of placing Used with permission of T this ad in Glamour magazine was to entice women to purchase the product for the men in their lives. 02_clow_ch02.indd 41 PART 1 Message Development
M aintaining, Rejuvenating,
and Repositioning a Brand
O ne of the most important aspects of any strong brand is its
consistency. Strong brands are consistent in their position-
ing over time. They also deliver a consistent brand promise
in every contact with the customer (more on this later in this
chapter). In the BMW advertisement in this section, the goal is
to reinforce the idea that BMW is a q uality product and the top
brand in the motorcycle industry. The message is that "BMW
Motorcycles are the indisputable mark of a real ride," accord-
ing to BMW brand manager Kerri Martin. 12 When an image is
well established, other promotions can be built around the rep-
utation. This fuels long-term customer loyalty and future sales.
M aintaining a strong brand over time is diffi cult; as a consequence, some brands can become stale. Rejuvenating a brand helps a fi rm build revenue and can attract new custom-ers. At the same time, reinforcing previous aspects of a brand assists the company in retaining loyal patrons, who are com-fortable with the fi rm's original image. The key to success-ful brand rejuvenation is to remain consistent with a previous image, while at the same time building to incorporate new elements to expand the fi rm's target audience. R ejuvenating a fi rm's image can be diffi cult. It takes time and effort. McDonald's faced this problem when the company encountered negative publicity about health-related concerns Emely/Cultura/Corbis.
over its menu. According to Wendy Cook, McDonald's Vice- president of Menu Innovations and Marketing, the key to reju- Many brands, such as Stetson venating the company's image was to send the message that it cologne, use the cultural is possible to buy healthy food at McDonald's. The main product leading the effort was a symbolism of the cowboy as the series of salads. Before launching the new salad l ine, McDonald's marketing team talked positioning strategy. to women, the target market. The team learned that women notice details, such as all-nat-ural dressings with low-fat options and the 16 different kinds of lettuce. Using this infor-mation, new advertisements were developed using a "girl talk" approach, where women discovered a great salad with a variety of options. This integrated marketing approach A n image-building ad for BMW helped modify McDonald's image for working women who might stop there for lunch. 1 3 H oliday Inn faced a similar situation. Consumers viewed the hotel chain as consist- S ource: Courtesy of BMW of North America, LLC.
1999 BMW of North America, Inc. All Rights
ing of outdated hotels with old decor. To regain its image as a mid-level hotel, over $1 Reserved. The BMW trademark and logo are registered. This advertisement is reproduced with billion was spent on interior and exterior renovations and updates; 150 properties that did the permission of BMW of North America, Inc. for promotional purposes only. Used with permission of not meet the new standards were sold, and the proceeds were invested in the r emaining BMW Motorrad Canada. hotels. Helen Travers, a corporate travel planner, stated, "It's about time. My clients haven't stayed in Holiday Inns in years [because] the chain hasn't kept up." Holiday Inn's marketing team also created a new logo. The goal was to rejuvenate the brand and regain the business travellers it had lost. 1 4 S ometimes a complete brand overhaul is nec- essary, and repositioning is the best approach. Changing a brand positioning becomes neces-sary when target markets have begun to shrink or disappear, or the fi rm's image no longer matches industry trends and consumer expectations. At that point, company leaders must carefully con-sider what they wish to change, why they wish to change it, and how they intend to accomplish the task. It is diffi cult to completely change the image people have of a brand. 02_clow_ch02.indd 42 CHAPTER 2 Branding, Positioning, and the Integrated Marketing Communications Plan
O ne brand that faced a situation of declining market share and changing customer tastes was Labatt Blue. For years, Blue was the leading beer in Canada. The brand enjoyed high levels of loyalty and strong market share. However, over time consumer tastes began to change and drinkers steered away from beer to other forms of alcohol. Making mat-ters worse, the brand was being increasingly overtaken by b rands that were positioning themselves for drinkers under 25 years of age, such as Canadian and Kokanee (which is a fl anker brand to Labatt Blue). Despite having one of the most widely recognized brand names in the country, with almost iconic status, Labatt was seen by younger drinkers as being "old"—a beer perhaps their father would drink, but not something for them. T he result was that the market share began to decline and Canadian overtook Blue as the number-one selling beer in Canada. The brand managers were faced with a dilemma: how to sop up the decline in market share and entice more younger drinkers to the brand without alienating the older drinkers who were still loyal to the brand. Although older drinkers tend to drink less than younger drinkers, the volume sold to current customers was still considerable, and the managers could not afford to alienate older customers when attempting to connect with younger ones. T he brand was slowly repositioned toward a younger market. This was mainly accom- plished through marketing communications that used the idea of spontaneity to position the brand as "fun and youthful." The television ads, in particular, were instrumental in balancing the attributes of youthful and fun for younger viewers, while reinforcing the beer's tradition and reputation for quality, which helped older drinkers to still feel con-nected to the brand. C ritical Thinking Exercise
I n the NBC sitcom The Offi ce, paper company Dunder Miffl in is under perpetual pressure from so-called big box retailers such as Staples and Offi ce Depot. Because Dunder Miffl in is a small company, they likely cannot compete against these fi rms on price (as the doomed Michael Scott Paper Company demonstrated). Prepare a per-ceptual positioning map that places Dunder Miffl in against these competitors on two axes (other than price) that you think are salient to a target audience. Don't forget to defi ne your target audience as part of this exercise. T HE COMPONENTS OF A BRAND
P eople encounter many things as they interact with a company or an organization. Each
one of these encounters adds, over time, to a perception about the company and/ or the
brands it offers. Every brand consists of a unique set of components. The brand of an
automobile such as Porsche, Mazda, Toyota, or Chevrolet may be based on evaluations
of vehicles in test drives, whether the company is foreign or domestic, customer views
of each brand's advertisements, and even o ther cars of the same brand that the consumer
sees on the road. Further, the brand perception may include consumer assessments of
company employees. In fact, the mechanic trying to repair a vehicle at a local dealer
could become the dominant factor that shapes a customer's image of General Motors.
Every time the customer comes into contact with the brand, it is an opportunity to rein-
force the brand position. In some cases, these contacts occur on a daily b asis. Although
many customer contact points are beyond the control of marketers (e.g., an 18-year-old
may see a senior citizen working on an Apple computer in a coffee shop and feel that
Apple products are better suited to a younger, more technically savvy audience), many
contact points are within marketers' control. It is critical that each of these contact points
be managed to deliver a consistent brand experience in line with marketers' objectives.
R ecently, Subaru and Mazda created programs that were designed to emphasize the importance of the dealership as an infl uence on consumer assessments of an automobile company's brand. Both fi rms launched aggressive remodelling plans for local dealerships, 02_clow_ch02.indd 43 PART 1 Message Development
with the goal of providing a more pleasant shopping environment. These new-look dealer-ships helped boost the brands of both Subaru and Mazda, resulting in higher sales. Subaru dealerships that remodelled using the new retail format sold 54 percent more vehicles i n the following year. Mazda dealerships that adopted the new retail design sold 30 percent more vehicles. 15 Toyota, recognizing that many women purchase automobiles, and that an even greater number have a signifi cant infl uence on the purchase decision, launched a program aimed at women. The program's recommendations suggested that every Toyota dealer provide a children's play area in the showroom, a coffee bar in the service area, and nicely decorated restrooms. 16 The idea was to make the dealership experience more attractive to female customers to enhance the company's brand. P epperidge Farm has taken the idea of connecting with consumers even further. The company has a new campaign theme, "Connecting through cookies." The primary com-
ponent of the campaign is a website, www.artofthecookie. com, where women can keep
in contact with each other. One quote on the site is, "Our friendship with our girlfriends
makes our lives much richer." In addition to allowing women to c onnect with each other,
the site also displays video clips of Sally Horchow's cross-country trip from Las Vegas to
Nantucket. During the trip, Ms. Horchow spoke to women about making and maintaining
friendships. She serves as a co-host for the site and is the author of the book The Art of
Friendship: 70 Simple Rules for Making Meaningful Connections. 1 7
T he website has been supported by print ads as well as a public relations initiative that involved a survey of American women on the topic of friendship. The ads ran in such magazines as Country Living, Good Housekeeping, and Redbook. The headline for each was "Friendship. Is yours an art form or a lost art?" The goal of the website and the print ads is to forge an emotional connection with customers that is diffi cult to achieve using broadcast advertising alone. P epperidge Farm is not alone in the move to social network marketing. A growing number of other companies, such as Circuit City, Coca-Cola, Sony, and Microsoft, now advertise on social networking websites such as Bebo, Buzznet, Facebook, and MySpace. According to eMarketer, a research fi rm, over $2 billion per year is spent on advertising on these types of websites. 1 8 A brand also contains invisible and intangible elements. When consumers learn that a pharmaceutical or cosmetic company has a policy that prohibits product testing on animals, this information will be integrated into their attitudes toward the brands of that fi rm. Personnel policies and practices impact a brand. Strikes and labour disputes often have a negative impact on a brand. The beliefs and attitudes that consumers have about Japan might infl uence their views of brands such as Sony and Toyota. M ARKETING COMMUNICATIONS AND BRAND EQUITY
S trong brands are often achieved largely through marketing communications. But mar-keting communications also benefi t from strong brands in a self-reinforcing cycle, because when consumers encounter marketing communications from a brand with high brand equity, the marketing communications are usually more effective. This is because consumers are generally more willing to attend to the marketing communications, spend time thinking about it, or recall it later on. Therefore, brand equity is central to marketing communications both as an end goal, and as a mediator to other end goals, such as aware-ness, recall, or revenue. 1 9 B ecause brand equity exists only because of the perceptions, feelings, and attitudes that customers have toward the brand, marketing communications play a vital role in
the development and maintenance of brand equity. Keller 20 portrays the development of
brand equity in the form of a pyramid, as shown in Figure 2.9. The ultimate objective for
a brand manager is to have resonance between a brand and a customer, which leads to a
close relationship and loyalty.
A t the most basic level, marketing communications helps establish brand aware- ness with customers. However, simple awareness is not enough to create the building blocks for a relationship with a brand. Marketing communications must strive to create 02_clow_ch02.indd 44 CHAPTER 2 Branding, Positioning, and the Integrated Marketing Communications Plan
Stages of Development Branding Objective FIGURE 2.9
Brand Equity Model Pyramid
4. Relationship = Source: Kevin Lane Keller (2007),
What about you and me? "Advertising and Brand Equity," in The Sage Handbook of Advertising, Gerard J. Tellis and Tim Ambler (eds.), pp. 54-70. Sage: London, p. 57 Positive, Accessible Deep, Broad, Brand brand salience for the customer. Customers must know how the brand can satisfy their
needs. They must recall the brand not just in general, but at specifi c times and consump-
tion experiences. Marketing communications plays a role in h elping this happen. Point-
of-purchase material in stores reminds people of the brand when they are shopping and
considering a purchase. Advertising for a portable instant soup reminds people to have
some on hand while at work so they don't hit the "3-o'clock wall." In addition to building
brand awareness, these ads build brand salience because they help the consumer see how
the brand can help them satisfy their particular needs.
B rand meaning is built upon brand salience. Brand meaning consists of both R unning Room focuses on
personal health and fi tness instead performance-related attributes related to functional needs and the abstract social or of fashion. psychological needs of the customer. Marketing commu-nications is critical in establishing both building blocks. With brand performance, it can clarify for customers how the ingredients, features, or attributes add value. It can also infl uence how people diagnose product performance. In a series of studies examining consumer preferences for orange juice, consumers who were shown ads for orange juice that described the high quality and taste of the b rand ranked the brand higher on memory taste tests than did con-sumers who did not see ads that described taste and qual-ity. 21 Brand meaning is also created when the brand creates intangible value for customers. Corona beer, for example, uses the idea of a laid-back beach holiday to create an image that consumers associate with consumption of the brand. Running Room creates marketing communications that are based on personal health and wellness, as opposed to other retailers that focus more on fashion. O nce brand meaning is established, the objective in building brand equity is generating brand responses,
which are generated after customers examine the content
of marketing communications designed to build identity
and meaning. As is the case with brand meaning, responses
are separated into two categories. The fi rst deals with judg-
ments customers make regarding product or service attri-
butes. For example, after being exposed to marketing com-
munications for the Petro-Canada brand, they may decide
that the brand possesses a high degree of trustworthiness
and quality, or see it as superior to other brands in the same
category. They can also put t he brand on their consider-
Courtesy of the Running Room Canada Inc. Photography by Scott Soulis ation list for purchase. The second category of responses concerns feelings toward the brand. These have to do with 02_clow_ch02.indd 45 PART 1 Message Development
A Canadian brand that has developed a high degree of Courtesy of WestJet resonance with consumers is WestJet. how the brand makes the customer feel when consuming, or contemplating consuming, the brand, and these feelings can be highlighted through marketing communications. For example, brands such as Coke generate feelings of excitement in their advertising, while the greeting card company Hallmark generates feelings of warmth. Alarm Force security seeks to generate feelings of security through their ads, while marketing communications for many fashion brands seek to generate feelings of social approval and inclusivity. O nce customers judge a brand favourably it can lead to resonance, or the psychologi-
cal bond between the customer and the brand. This is where many of the benefi ts of strong brands come from. Resonance can lead to higher levels of loyalty or referring the brand to others. Consumers often talk of "loving" a brand, and they can promote it to others with almost evangelical zeal. Many users of Apple products, for example, a re famous for their devotion to the brand. Marketing communications can play a strong role in develop-ing both active and intense brand relationships. For example, social media allow current users of a brand to connect with other users and foster a sense of community, or promote the brand to non-users. Direct marketing can target customers with high-value relation-ships and ensure they get special perks not available to other customers. T HE IMC PLAN
M arketing communications planning is grounded in the overall marketing plan of the fi rm. The marketing plan outlines the four Ps: distribution planning, product enhance-ment, production plans, and pricing strategies. The marketing communications plan must work toward the same overall objectives as the other elements of the marketing plan. These overall marketing objectives are often based in metrics, such as market share or revenue gains over a period of time. F or example, a marketing objective of a clothing manufacturer can set a marketing objective of increasing market share from 10 percent to 15 percent within the next year. Each element of the marketing plan must then work in concert to support this objective. This may include the addition of new lines, new distri-bution channels, new pricing strategies, and, most importantly for our consideration here, marketing communications. T he marketing plan typically involves background in the form of situation analysis, competitive intelligence, and some customer research. Based on this, along with the over-all marketing objectives, the fi rst step in the IMC plan is to defi ne the objectives of the marketing communications. Objectives for IMC plans are discussed in Chapter 4, and 02_clow_ch02.indd 46 CHAPTER 2 Branding, Positioning, and the Integrated Marketing Communications Plan
often include such objectives as repositioning a brand, increasing awareness, or encour-aging some form of customer behaviour, such as purchase or trial. C losely tied to the marketing communications objectives is the defi nition of a target audience for the campaign. This may include multiple audiences if the brand wishes to penetrate multiple segments or communicate with different audiences involved in meet-ing the objective. For example, the Stetson cologne campaign mentioned earlier may involve two audiences. First, an audience of men can be targeted to ensure they see the brand as rugged and desirable. Next, women can be targeted as the gift-givers of the prod-uct. In order for t he gift-giving strategy to work, the giver needs to know not only where she can buy it, but also that the recipient will value the gift. The defi nition of the audi-ence is perhaps the most crucial part to any marketing communications plan because it will determine the appropriate communications tactics to use, along with the appropriate message strategy and timing. In other words, it is impossible to build an effective com-munications plan if you don't know with whom you are communicating. B ased on the objective and audience defi nition, the next step is to set a budget for the plan. This will be based on how aggressive the objective is relative to the current attitude
or behaviour of the target audience. For example, if a modest 5 percent trial rate for a new
brand extension is sought, a nd the target audience has high brand resonance, the bud-
get should be fairly modest. However, if the objective is aggressive, such as increasing
household penetration by 50 percent, or the target audience has a low degree of awareness
or negative perceptions of the brands, the budget will have to be signifi cantly larger.
T he next step in the plan is to outline the specifi c communication vehicles to be used in the plan, their specifi c objectives (i.e., what role they play in achieving the overall objective), their specifi c tactics, the allocation of the budget, and the specifi c measures that will be used to determine success. The overall plan process and format can be found in Figure 2.10. FIGURE 2.10
The IMC Plan Framework
Situation Analysis Competitive Intelligence Marketing Objectives Evaluation and Feedback 02_clow_ch02.indd 47 PART 1 Message Development
T he fi nal step in the IMC plan, determining evaluation measures, should provide a link back to the objective so that the plan can be evaluated both within individual communication vehicles and overall. This is important because the manager must know now not only whether the overall objective was reached, but also how each element of the plan performed. For example, if television advertising is to be included in the plan with the intent o f generating a high degree of awareness, this is a specifi c outcome related to this element of the IMC plan. If, however, the ultimate objective of product trial was not achieved, the manager could then diagnose why awareness through tele-vision advertising did not lead to trial. Perhaps other elements did not perform ade-quately, or perhaps other elements are needed to ensure the link between awareness and trial is made. C OMMUNICATING ACROSS CULTURES
I n international markets, product development, branding, and maintaining an image are more complex. Firms can use either an adaptation strategy or a standardization strategy in promotional programs. These two approaches can be applied to the products them-selves as well as to brand names. With standardization, the same brand name and prod-uct are sold in all countries. With a daptation, the brand and/ or the actual product may be different in each country or region. This can mean that a product may be viewed as a local brand. Mr. Clean uses the adaptation brand approach for the same products. Mr. Proper and Maestro Limpio are just two of the brand names used by the company in other countries. U sing a standardized global brand reduces costs. Instead of advertising each local brand with a separate communication strategy, one standardized message can be sent. Standardized global brands also allow for the transference of best practices from one country to another. Further, purchasing a standardized global brand can be viewed by consumers as a better choice than buying a local brand. The global b rand might have a higher perceived quality. The consumer's self-concept of being cosmopolitan, sophisti-cated, and modern can be enhanced when buying a global brand. 22 As the world continues to "shrink" through advances in telecommunications, consumers are becoming increas-ingly similar, displaying comparable consumer characteristics and purchase behaviours. This may lead to even greater use of standardized global brands. D espite all of the advantages of global brands, some efforts to standardize brand names have met with resistance. A number of global brands that were introduced were not received with enthusiasm. Although consumer behaviour may have converged somewhat throughout the world, there are still many local idiosyncrasies. Global brands enjoy the most success in high-profi le, high-involvement products. Local brands have performed the best in everyday, low-involvement products. Automobiles and computers have d one well as global brands. Food, candy, and some soft drinks have done better using a local brand approach. 23 A common IMC strategy is to "think globally, but act locally." This approach can also be applied to branding. Developing global brands may be the ultimate goal; still the marketing team should consider each local market's unique features and be sensitive to supporting and developing local brands. Packaging and labelling issues are more complex for global fi rms. The label must meet the legal requirements of the country where the product is sold. Remember that an attractive label is an attention-getting device that can draw the consumer to the product. For example, many purchases in Asia are, in part, driven by the appeal of the label. 24 At the same time, some culturally sensitive items, such as lingerie and other personal prod-ucts, may carry labels that basically disguise or hide the contents. Brand building and positioning issues become complicated in global markets. Part of the confusion may be that a particular country is held in low regard by other countries. Consequently, these negative feelings transfer to any products sold by companies from that country. Positioning may be harder to achieve due to differences in language, restric-tions on advertising messages, additional taxes or tariffs that raise prices, and other less controllable factors. 02_clow_ch02.indd 48 CHAPTER 2 Branding, Positioning, and the Integrated Marketing Communications Plan
I MC IN PRACTICE
T he TELUS brand promise is "the future is friendly." "The brand promise drives everything we do across all products, in all the categories where we compete," says Kate Baillie, Director of Marketing for Broadband and Core Services for TELUS. Although the brand promise began initially, in part, due to a burgeon-ing technology development phase where new products may have been intimidat-ing to customers, the brand promise is still relevant. "In fact, it's probably more relevant today than it ever was," explains Kate. "M any people are look-ing for someone to act as an editor to help them understand how all this new technology can help them improve their lives. What's available, what do I need, do I need all three of these features or can I get by with only one or two? These are questions we hear from customers who tell us they can sometimes be sim-ply overwhelmed at the sheer number of products and options now available to them." L ara Johnson agrees: "Our brand represents a promise that whatever tech-nology comes along we will ensure it's integrated seamlessly and simply into our customers' lives. Take, for example, the TELUS Learning Centre that is available online and in our stores. Customers can visit the Learning Centre and learn how Courtesy of TELUS. to make the most of their Smartphone features. Online tutorials provide simple to follow step-by-step visual instructions T ELUS designs simplicity into all of its messages a nd tips to help you get the most out of your phone, but the in-store experience is interactive and customized to the customer's needs. We don't want to just sell a product and then make our customers fi gure it out on their own; we want to help them see how they can make the best use of what technology has to offer." A s part of the TELUS brand, the marketing team tries to ensure that the same qualities come through in every piece of marketing communications. "Across every single execution, we look for our brand attributes to be represented. Attributes like simplicity, intelligence, economy, and charm." "I t begins, fi rst and foremost, with simplicity. When they hear from us, we want the audience to say ‘I get it.' We want the language and message to be focused and easy to understand. This goes far beyond the use of white space or fonts, for example. It's at the very heart of the messages we design." S econd, Kate reconciles the attribute of simplicity with intelligence. "Intelligence is about not talking down to the audience. People are not dumb. So simplicity doesn't mean dumbing down a message to the point where someone may be insulted. We can create simple messages but still respect our audiences." A n important brand attribute in the category is economy. This isn't just a pricing issue. "We're not interested in competing just on price," says Kate. "Economy is in part the price, but as it relates to the brand it's about getting people the message quickly and effi ciently. So our audience doesn't need to spend a lot of time thinking about what we're trying to say. We get to the point quickly and succinctly." 02_clow_ch02.indd 49 PART 1 Message Development
F inally, the brand attribute that many people recognize is charm. "When people take the time to engage with our message, we want to reward them for their time. So we try and entertain people at the same time as delivering a mar-keting message." This is accomplished by the now famous use of animals in the m arketing communications. "In our television ads, for example, we try to create entertainment through the use of music and a relevant icon from nature." This has created many memorable campaigns, including the famous holiday 2005 campaign that began to the tune of "I Want a Hippopotamus for Christmas." W orking in such a competitive industry means that marketing communications plans for TELUS need to be nimble. As Lara Johnson explains, "from a fi nancial stand-point we have a yearly plan accompanied by a locked down Courtesy of TELUS. budget for the year. So we know what we will spend across the various marketing communications tools, agency fees, a nd things like that. But the industry moves so fast that we The TELUS campaign has produced many plan our marketing communications messaging more on a memorable ads.
quarterly basis. So in October, for instance, we would be planning for January. That lets us stay fl exible based on new products that are introduced, or activities by our competitors." Source: Used with permission of Kate Baillie, TELUS Communications.
For help developing your IMC Plan, go to www.pearsoncanada.ca/clow.
A strong brand is vital to the success of most companies. introduced their own brands, known as private label brands, to Brands that have a high degree of brand equity provide many compete with national brands. benefi ts for both customers and the company behind the brand. B rands do not exist in isolation. Rather, they are evaluated For customers the benefi ts include, among other things, saving by audiences relative to other brands within the same category. on search costs and being able to feel confi dent that they have Successful brands are able to position themselves in the market made a good choice. For companies the benefi ts of brand equity relative to competitors on one or more attributes that are salient for include increased power over channel partners and the ability to customers. Many different brand strategies are available to fi rms, charge premium prices. In many cases, this brand equity is the but the most important thing is to reinforce a consistent positioning single most valuable asset of a fi rm. over time. When brands become stale or markets decline, it may B randing is used in many different ways by companies. be necessary to rejuvenate or even reposition a brand. Although Many companies create a family of brands that use the same this is diffi cult, it has been done successfully many times. brand name on many different products. Typically done through T he positioning of a brand is impacted by the many con- brand extension, this allows the brand equity established in one tact points it has with customers. These contact points occur product to be transferred to other products. Other companies frequently, and they always represent an opportunity for the use a fl anker approach and m arket several products within the marketer to present a consistent brand experience to the cus- same category under different brand names. In each case com- tomer. Many of the contact points, such as retail showrooms panies can use co-branding to extend the value of their brand, or employee interactions, are not typically associated with the or capitalize on the value in other brands. Many retailers have marketing communications function. However, a consistent 02_clow_ch02.indd 50 CHAPTER 2 Branding, Positioning, and the Integrated Marketing Communications Plan
brand experience across these types of customer contact points become loyal fans of a brand—or even its most effective sales- can be crucial at reinforcing a brand positioning. S uccess in marketing communications is easier when pro- T he building of a brand and associated marketing objec- moting a brand with a high degree of brand equity. However, tives through marketing communications is achieved through marketing communications can also build brand equity. They the development of an integrated marketing communications do so across four stages. First, marketing communications plan. This plan is based on the overall marketing plan of the fi rm can build brand identity and tell customers what the brand and should be developed in concert with product development, stands for and what it is. Second, marketing communications channel, and pricing plans. The plan begins with a statement of can develop brand meaning a nd reinforce either functional or the objectives and target audience, followed by a budget. Then, image-related product attributes. Third, they can encourage each tactic in the marketing plan is outlined, along with reasons brand responses in the form of judgments related to attributes for its inclusion. Finally, a feedback and evaluation mechanism or of feelings such as warmth or self-esteem. Finally, they allows the manager to determine how each tactic in the plan can lead to resonance, which is the stage at which customers helped meet overall objectives. b rands Names generally assigned to goods, or a service or
c omplementary branding A form of co-branding in which the
group of complementary products. marketing of two brands together encourages co-consumption or b rand extension The use of an established brand name on
goods or services not related to the core brand. c ooperative branding A form of co-branding in which two
b rand equity The value that stakeholders assign to a brand
fi rms create a joint venture of two or more brands into a new over and above the value of an equal but unbranded product. good or service. b rand identity The adjectives or terms used to describe a
f amily brand When a company offers a series or group of
products under one brand name. b rand meaning Functional and social or psychological
fl anker brand The development of a new brand by a com-
aspects of a brand as they relate to a customer's needs. pany in a goods or service category in which it currently has a brand offering. b rand metrics Measures of returns on brand investments.
i ngredient branding A form of co-branding in which the
b rand resonance A psychological bond between a customer
name of one brand is placed within another brand. p ositioning The process of creating a perception in the con-
b rand responses Judgments or feelings a customer makes
sumer's mind about the nature of a company and its products rel- concerning a brand based on what they know. ative to the competition. It is created by the quality of products, b rand salience The degree to which customers feel a brand
prices charged, methods of distribution, image, and other factors. meets their needs. p rivate brands (also known as private labels) Proprietary
c o-branding Offering two or more brands in a single market-
brands marketed by an organization and normally distributed exclusively within the organization's outlets. R EVIEW QUESTIONS 1 . What is meant by the term brand? How is it different from
5 . What is the difference between brand equity and brand
brand equity? 2 . How does a brand help customers? How does it help the
6 . Why is brand equity important? How is it measured?
company behind the brand? 7 . Describe the use of brand extension and fl anker brand
3 . Name fi ve dimensions of brand value.
4 . What are the four types of brand names?
8 . How can one tell if a brand has potential for brand extension?
02_clow_ch02.indd 51 PART 1 Message Development
9 . Identify and describe three types of co-brands.
1 2. What are the principal components of an IMC plan?
1 0. How has private branding, or private labelling, changed in
1 3. What are four ways in which marketing communications
the past decade? How have competitors with private brands can contribute to brand equity? How do the concepts of standardization and adaptation apply to products, brand 1 1. What is brand positioning? Give examples of various types
names, and marketing strategies? of positioning strategies. I NTEGRATED LEARNING EXERCISES 1 . Websites are an important vehicle by which brands
3 . Brand extension and fl anker branding are common strate-
communicate with audiences. Access the websites of the gies for large corporations. Access the following websites. following companies to get a feel for the intended brand Identify the various brand extension strategies and fl anker position each one tries to project. Is the image projected brands used by each company. Identify differences in the on the website consistent with the image portrayed in the target audiences for each brand. company's advertisements? How would you improve the a . Marriott Hotels ( www.marriott. ca)
website to make it more consistent or effective? b . Procter & Gamble ( www.pg. com)
a . Bell Mobility
c . General Motors ( www.gm. ca)
b . Johnson and Johnson
d . The Gap ( www.gapcanada. ca)
c . RBC Financial
4 . Sporting goods marketer Fozani Group operated as a retailer
d . McDonald's
under several brand names, including Sport Chek, Sport e . Canadian Tire
Mart, Atmosphere, and Athletes World, to name a few (a 2 . Social media such as Facebook are an important tool for
complete list can be found at http:/ / www. forzanigroup.
marketers who seek create resonance between customers com). Do you agree with this approach? Perform an anal-
and a brand. These media allow for regular communica- ysis of the Forzani brand strategy. As part of your analy- tions between the brand and its customers and also allow sis, discuss at least two benefi ts of this approach and two customers to interact with each other. Find a Facebook benefi ts that would be associated with reducing the num- fan page for a consumer brand and one for a business-to- ber of brands, or even consolidating the outlets under one business brand. Do you think the companies are effectively utilizing the media to create resonance with customers? What features or content would you add to help increase the potential for resonance? S TUDENT PROJECT C reative Corner
Who will be your target audience? Which of the seven position- T he brand name and positioning of a brand are two critical ele- ing strategies will you use? Once you have made the positioning ments a marketing manager must consider when introducing a decision based on your target market, create a brand name for new product. Pick one of the products from the following list. your product. Discuss why you chose the name. Assume that you are the new product manager and that your 1 . A new brand of ski boat used for recreational water-skiing
company has introduced a new brand within the product cat- 2 . A new optical store that sells eyeglasses and contacts
egory. Your fi rst task is to decide how you will position your 3 . A new brand of chocolate candy bar
brand in the marketplace. I dentify by name at least three com- 4 . A new brand of jeans
peting brands. How are they positioned? How will your position be different? Part of this decision will be your target market. 5 . A new energy drink
02_clow_ch02.indd 52 CHAPTER 2 Branding, Positioning, and the Integrated Marketing Communications Plan
E THICS IN ACTION
➔ A major objective for brand managers is to create versa. But it can also perpetuate stereotypes among rival brand loyalty. This is facilitated when there is resonance communities and pleasure in the misfortune of others. 26 Taken between a customer and a brand. Other behaviours that to extremes, however, this can result in people neglecting their can result from resonance are referral behaviours and the willing- families due to perceived commitments to others in the brand ness to pay a premium price for products with the brand name. community. The most extreme examples of this are people who But some critics a rgue that the development of brands, and the spend up to a dozen hours a day playing in virtual worlds such objective of brand resonance, promotes excessive materialism. as Second Life, or following what others are doing on Facebook. They charge that when people begin to "fall in love" with brands, In an ironic twist, a number of websites have even sprung up to they lose sight of reality and can put their experiences with brands help people deal with addictions to Second Life. ahead of their experiences with other people in their lives. . Do you think a target of resonance or of fanatical devotion
O ne way that brand resonance can manifest itself is through to a brand is an appropriate goal for marketers? What are something known as brand community. Brand communities are three possible negative effects of consumers' extreme devo- groups of users of a brand who share a similar sense of self, a sense of moral commitment to other users, and even some rituals. 25 Examples include the Harley-Davidson "posse rides," . Find an example of an online brand community. Pose the
Jeep Jamboree weekend events, and any number of online Apple question to members in the community to fi nd out what discussion forums. One of the h allmarks of these communities, value they receive from their membership in the commu- is not only a shared sense of self among members, but a strong nity and why they belong. What are the top three reasons detachment from users of competing brands. On a fairly harm- people offer for their membership? less level this can lead an Apple user to chide a PC user, or vice CASE STUDY
C an Zellers Be Canada's Target?
T hroughout its history, retailer Zellers has been somewhat of a have featured Canadian suppliers to Walmart that enjoy their fi xture on the Canadian retail landscape. Beginning in 1931, channel relationship and share in Walmart's success. These the brand has always stood for value and low prices. With commercials appear to be an attempt to prevent Canadians stores across the country, the brand is familiar to virtually every from seeing the company's operation as a Canadian invasion Canadian. But in the 1990s perhaps the greatest threat in the by a U.S. retail giant. company's history came to Canada when Wal-Mart purchased the operations of Zellers' rival, Woolco. This move instantly H BC and Zellers Zellers is owned by HBC. It is the "mass mer-
gave Wal-Mart a presence in Canada, with over 100 Walmart chandise retailer" of the company and a leading mass mer- chandise retailer in Canada, with 279 stores nationwide. The stores offer customers "clear value and price competitiveness T he Wal-Mart Threat The Wal-m art model in Canada was on national and private label merchandise." 27 HBC also oper-
largely the same as the American system, with which many ates retailers under the following brands: The Bay, which is the Canadian shoppers were familiar from trips south of the bor- company's fl agship store name , with 92 stores across Canada; der. Like Zellers, the Wal m art brand was also built on low Home Outfi tters, which specializes in kitchen, bath, and bed- prices and value for consumers, but exceeded far beyond room accessories and operates in 62 stores across Canada; and the success achieved by Zellers. Its inventory manage- Field's, which is the extreme discount brand of the company. ment expertise is legendary, and its power over manufactur- This brand began in w estern Canada but has since expanded ers means Wal m art gets deep concessions on pricing and in to e astern Canada and now operates 196 stores across the other value-added benefi ts from retailers, which it u ses to Z ellers launched their own private label, Truly, in 1999. It T he Walmart brand uses marketing communications includes products from a range of categories in the store, from in a variety of ways. Most visible is its television advertis- food and beauty aids to pharmacy items and clothing. Most ing, which combines two key messages. First, it focuses on Zellers outlets across the country also feature restaurants within the low prices consumers can fi nd at Walmart. The com- the stores, under the "Zellers Family Diner" name in English- pany positions itself using the "live better" tagline, which speaking Canada and under "Restaurant familial Zellers" in is meant to tell consumers they can do more because of Quebec. Some locations even feature hair salons. Zellers has the money they save by shopping at Walmart. T he second also launched a smaller version of its stores—Zellers Select— message is about the support for local community events, to serve smaller markets. and the Canadian economy in general. Many commercials 02_clow_ch02.indd 53 PART 1 Message Development
The Canadian Press/Mario Beauregard Some argue that the Target branding model is a good template for Zellers. Z ellers also uses marketing communications to position "everyday low price" message is getting lost in the low-price itself. The most notable campaign, which ran for many years, positioning of Walmart. Others argue that the Zellers brand has was based on the tagline "the lowest price is the law." The been able to successfully fend off the Walmart threat for almost campaign was featured on national television advertising, local two decades and shows no sign of capitulation. Imagine you print advertising, and fl yers to promote items as part of a co- have been hired as a branding consultant to Zellers. Use your branding effort with manufacturers. The current emphasis for expertise to guide the brand into future success. the brand is everyday low pricing, which deliberately targets . Do you think the Target approach to branding and com-
peting with Wal-Mart has potential for Zellers in Canada? T he Zellers brand also participates in the HBC Rewards Write a memo to the VP of Marketing for Zellers outlin- program, where shoppers can collect points with any purchase ing an argument for or against a move toward such an and redeem the points either at Zellers or at one of the other approach. In particular, outline whether you think this HBC retailers. The program includes a co-branding venture approach will harm any of the other brands within the with MasterCard where shoppers can collect even more points when using their MasterCard to shop anywhere. . If Walmart "owns" the lowest price position in the cat-
T he Target Template Many companies who compete with
egory, where is the opportunity position Zellers? Develop a Walmart look to the United States to understand how retailer perceptual map that positions Zellers and Walmart on two Target competes effectively with Wal-Mart. The Target brand is axes that you think matter to the Canadian consumer. Wal-Mart's largest U.S. competitor, and has positioned itself very effectively by differentiating itself from Wal-Mart's low- 3 . Building on your map from question 2, develop a
price message. The Target positioning is based on selection 30-second television commercial script to deliver this and an overall shopping e xperience based in "cheap chic." 29 This message is consistently reinforced in the marketing com- . Why do you think Zellers has been able to stay in busi-
munications for the brand, which features popular recording ness despite the presence of the Walmart brand in artists and fresh, contemporary themes. Some shoppers even Canada? What aspects of the brand do you think have jokingly pronounce the store name as "tarjay" (pronounced like value for Canadian consumers? Prepare a 10-minute French , with a soft g ) to connote the brand's high fashion at presentation with an analysis of which programs you affordable prices. think are most effective for Zellers, and which (if any) M any see a move toward a Target-style positioning as the can be deleted from the company's strategy. next logical move for the Zellers brand. They argue that the 02_clow_ch02.indd 54 CHAPTER 2 Branding, Positioning, and the Integrated Marketing Communications Plan
1. D on E. Schultz, "Mastering Brand Metrics," 9. V anessa L. Facenda, "A Swift Kick to the Advertising, Gerard J. Tellis and Tim Ambler Marketing Management 11, no. 3 (May– Privates," Brandweek 48, No. 31 (September (eds.), p. 54–70. Sage: London. June 2002), pp. 8–9; Daniel Baack and Mark 3, 2007), pp. 24–28. N. Hatala, "Predictors of Brand Rating and 10. P aul McNamara, "The Name Game," 21. K athryn A. Braun (1999), "Postexperience Brand Recall: An Empirical Investigation," Network World (April 20, 1998), pp. 77–78. Advertising Effects on Consumer Memory," Regional Business Review 17 (1998), 11. Max Du Bois, "Making Your Company Journal of Consumer Research, 25 (4), One in a Million," Brand Strategy, no. 153 2. K evin Lane Keller and Donald R. Lehmann (November 2001), pp. 10–11. 22. J ohnny K. Johansson and Ilkka A. (2003), "How Do Brands Create Value?" 12. I nterview with Kerri L. Martin, brand man- Ronkainen, "Consider Implications of Local Marketing Management, May–June, pp. 27–31. ager for BMW Motorcycles USA (October Brands in a Global Arena," Marketing News 3. P at Sloan, "Gillette Bets $80 Mil on Women," 38 (May 15, 2004), pp. 46–48. Advertising Age (May 4, 1998), p. 63. 13. Kate MacAr thur, "Salad Days at 4. "I ntercontinental Hotels Group," Business McDonald's," Advertising Age 75, no. 50 Travel News 21, no. 6 (April 19, 2004), p. 67. (December 13, 2004), p. S-2. 25. A lbert M. Muniz and Thomas C. O'Guinn 5. Kusum L. Ailawaldi, Scott A. Neslin, and 14. David Kiley, "Holiday Inn's $1 Billion (2001), "Brand Community," Journal of Donald R. Lehman, "Revenue Premium as an Revamp," Businessweek Online (October 39, Consumer Research 27, no. 4, pp. 412–432. Outcome Measure of Brand Equity," Journal of 26. T homas Hickman and James Ward (2007), Marketing 67, no. 4 (October 2003), pp. 1–18. 15. K ari Greenberg, "Mazda, Subaru Racing "The Dark Side of Brand Community: 6. Sonia Reyes, "Saving Private Labels," to Upgrade Dealerships," Brandweek 45, Inter-Group Stereotyping, Trash Talk, and Brandweek 47, no. 19 (May 8, 2006), no. 39 (November 1, 2004), p. 10. Schadenfreude," Advances in Consumer 16. J oan Voight, "The Lady Means Business," Research 34, pp. 314–319. 7. Dongdae Lee, "Image Congruence and Adweek 47, no. 15 (April 10, 2006), pp. 32–36. 27. HBC website: http:/ / www. hbc. com/ hbc/
Attitude Toward Private Brands," Advances in 17. Stuart Elliott, "Making Social Connections about/ default. asp, accessed on April 23, 2010.
Consumer Research 31 (2004), pp. 435–41. and Selling Cookies" ( www.nytimes. com/
28. DSN Retailing (2002), "Zellers Reorganizes 8. T homas J. Ryan, "Private Labels: Strong, 2007/ 11/ 21/ business/ media/ 21adco. html).
Stores, Adopts EDLP Strategy," February 25. Strategic & Growing," Apparel Magazine 29. P atrick Barwise and Sean Meehan (2004), 44, no. 10 (June 2003), pp. 32–39; Reyes, 19. Kevin Lane Keller (2007), "Advertising and Simply Better: Winning and Keeping "Saving Private Labels." Brand Equity," in The Sage Handbook of Customers by Delivering What Matters Most, Harvard University Press: Cambridge. 02_clow_ch02.indd 55

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