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introduction,saatchi & saatchi training,the bigger picture,saatchi & saatchi training,marketing & brands,session 1,the business concept,what is the purpose of business?,the business concept,the purpose of business is to create and keep a customer professor theodore levitt harvard business school,the business concept,business has only two functions: innovation and marketing peter drucker principles of management 1954,the marketing concept,the aim of marketing is to make selling superfluous. the aim is to know and understand the customer so well that the product or service sells itself. peter drucker,sales push?- supply led company needs first making a sale selling what you make,marketing pull?- demand led customer needs first making a deal making what you sell,marketing versus sales,marketing is selling - same goal but the opposite philosophy.,which way?,sales thinks inside out looks at it through the companys eyes how do we move the merchandise? volume is the measure of success,which way?,sales thinks inside out looks at it through the companys eyes how do we move the merchandise? volume ($) is the measure of success marketing thinks outside in looks at it through the customers eyes what do we need to do to meet their needs? customer satisfaction is the true measure of success,marketings golden rule,customer perception is the only reality no objective truth about better products marketing is a battle of perceptions, not products a battle fought in the mind of the prospect need to understand how they see things you cannot compel consumers (more than once),the brand concept,the brand lies at the heart of the marketing concept,what is a brand?,great brands are great ideas bundles of benefits, rational and emotional, that deliver pleasure, meaning and satisfaction to people,what is a brand?,products live on shelves brand live in the mind products are the delivery mechanism brands outlive product lifecycles,what is a brand?,the brand is the trustmark it identifies and guarantees product quality and performance,what is a brand?,brands add value to commodities brands add value to generic products by adding meaning,what is a brand?,brands become symbols moving beyond simple utility to become complex value sets,what is a brand?,brands are a consumer language a means of self-expression - a badge a kind of personal symbolism - a mirror,why are brands important?,product difference is transient technology provides the means to duplicate successful products ever faster brand difference is enduring emotional values embodied in the brand provide sustainable differentiation,authenticity : replicability,sources of brands?added value,authenticity : replicability,sources of brands?added value,reassurance : trust,authenticity : replicability,sources of brands?added value,transformation of experience,reassurance : trust,authenticity : replicability,inner- directed: mirror,meaning for me,sources of brands?added value,transformation of experience,reassurance : trust,authenticity : replicability,inner- directed: mirror,outer- directed: badge,meaning for me,meaning for others,sources of brands?added value,transformation of experience,reassurance : trust,authenticity : replicability,inner- directed: mirror,outer- directed: badge,meaning for me,meaning for others,sources of brands?added value,differentiation,transformation of experience,reassurance : trust,authenticity : replicability,inner- directed: mirror,outer- directed: badge,meaning for me,meaning for others,sources of brands?added value,perceived added value,differentiation,transformation of experience,reassurance : trust,how do we choose?,brands work on a stimulus : response? model,stimulus : response,a two-way process, based on a common field of experience,stimulus response,sender,receiver,i.e. an 慳ctive?consumer,stimulus : response,work backwards from the response. what meaning do we want to create,stimulus response,focus: meaning out? not message in,meaning,message,all marketing activity is communication - product design/formulation - brand name / packaging design - positioning / promotion - pricing / distribution all offer meaning, offer to meet needs consumer responds to the whole enchilada,stimulus : response,practical,a holistic brand relationship,rational,the brand,practical,a holistic brand relationship,brand/product features functional justification price/value judgements availability,rational,the brand,practical,symbolic,a holistic brand relationship,brand/product features functional justification price/value judgements availability,emotional,rational,the brand,practical,symbolic,a holistic brand relationship,brand/product features functional justification price/value judgements availability,emotional,rational,the brand,how i live my way/my identity others like me the experience,practical,symbolic,a holistic brand relationship,brand/product features functional justification price/value judgements availability,rational,the brand,sight for me,how i live my way/my identity others like me the experience,emotional,basic brand engineering,brands are built by bonding chosen groups of psychological values credibly to the function of the brand to illuminate and dramatise the function,a triangular relationship,f,p,e,function,what is is and does,a triangular relationship,f,p,e,function,psychology,what is is and does,emotional needs & benefits / life goals,a triangular relationship,f,p,e,function,psychology,what is is and does,emotional needs & benefits / life goals,ideally, the same word,a triangular relationship,f,p,e,function,psychology,evaluator,what is is and does,allows consumer to judge delivery,emotional needs & benefits / life goals,* after d. sexton,associations with desired benefits,brand a,brand b,branding builds linkages,problem,product / service,* after d. sexton,associations with desired benefits,brand a,rel imp,rel imp,brand b,rel imp,rel imp,branding builds linkages,problem,product / service,rel. imp = relative importance of benefit per. ben = perceived level of benefit performance exp. ben = expected level of benefit performance,* after d. sexton,associations with desired benefits,brand a,rel imp,rel imp,brand b,rel imp,rel imp,branding & positioning create the associative links,branding builds linkages,problem,product / service,expected,three types of customer value,customer,company,what the customer: - wants - thinks they get - actually get,perceived,actual,components of brand value,* after d. sexton,managing the key elements,perception perceived actual expectation actual expected,=,x,pricing issues,communication issues,慏esign? issues,components of brand value,* after d. sexton,increasing perceived value,1. close the gaps: expectation perception actual 2. change the priorities re-rank importance of benefits 3. add benefits* compete on new dimensions of the customer抯 problem 4. improve actual performance* another way of closing gaps * and tell them about it!,components of brand value,* after d. sexton,brand health indicators,brands are built from the inside out and decay that way too.,typical new entrant,differentiation relevance familiarity esteem,* after d. sexton,assessment of the brand,brand health indicators,brands are built from the inside out and decay that way too.,typical 慏ecaying brand,differentiation relevance familiarity esteem,* after d. sexton,assessment of the brand,慙ag? indicators,followed out,reinforcing a diffuse brand image,1. determine causes for diffuse image 2. re-evaluate desired brand image 3. improve actual performance as necessary 4. close gaps between perceived and actual benefit performance 5. strengthen selected associations nb i) important to get the sequence right ii) takes time - ba took 10-12 years,* after d. sexton,assessment of the brand,at its simplest:,q = quality product / service quality,p = price physical costs,brands an
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