Lecture 1 – Marketing communications in real life
Important papers: Keller
Salience (opvallendheid) is another word for brand awareness.
Spontaneous awareness: can you mention a car brand? More important when you don’t have any
other cues. Helps you to make a choice. The more spontaneous awareness, the more automatically
people will support your brand.
Aided awareness: I list you a list of car brands, which ones do you know?
Combination is called total awareness.
The strongest brands have the highest score in unaided awareness. The mental market share is very
much tied with unaided awareness. The stronger the brand is, the more automatically it pops up
unconsciously.
Definition:
“The placement of announcements and persuasive messages in time or space purchased in any of
the mass media by business firms, non-profit organizations, government agencies, and individuals
who seek to inform and/ or persuade members of a particular target market or audience about their
products, services, organizations, or ideas.” → reminding people is important because it creates
spontaneous and aided awareness.
Consumer psychology:
Consumer psychology, Branch of social psychology concerned with the market behaviour of
consumers. Consumer psychologists examine the preferences, customs, and habits of various
consumer groups; their research on consumer attitudes is often used to help design advertising
campaigns and to formulate new products.
Only 60% of the world population has access to internet. You want to reach everybody, not only the
people who have access to social media. Social media with private connections are growing the
fastest (WhatsApp).
Fake reality is becoming a thing.
Targeted communication example: a billboard has cameras which recognizes which car you drive and
then a bill board screen pops up about that car. Or a personalized photo in a shopping mall.
Marketing principles
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering,
and exchanging offerings that have value for customers, clients, partners, and society at large.
1. Marketing mix
Product, price, place, promotion, people, physical context and process.
2. Multiplicative Marketing Steps
Diagnosis – Strategy – Tactics
Multiplicative: all the three steps are equally important, every step is as important as the
previous or next one.
Diagnosis: secondary/qualitative/quantitative?
Strategy: who/what/how?
Tactics: Communications (promotions), product, price, place (4P)
3. Multichannel marketing
Physical location, catalog, website, paid search, direct mail, email, tv, radio and social media.
1
, Using different channels which are relevant for your target population. Where are the ears
and eyes or the people I want to reach?
What is branding?
The word “brand” derives from the Old Norse word “brandr”, which means “to burn”, as brands
were and still are the means by which owners of livestock mark their animals to identify them (Keller
2002)
IMPORANT SHEET
Brand is more than a product
Products are made in the factory, but brands are created in the mind
1. “The intangible sum of a product’s attributes: its name, packaging, and price, its history, its
reputation, and the way it’s advertised.”
2. “A name, sign, or symbol used to identify items or services of the seller(s) and to
differentiate them from goods of competitors.”
3. “Products are made in the factory, but brands are created in the mind.”
A brand is a bundle of benefits with sustainable differentiation potential
1. Utilitarian benefit (food should taste nice, a toaster should toast)
2. Economic benefit (price)
3. Social benefit (having the right lifestyle that will help you)
4. Aesthetic benefit (bottle designs, packaging designs)
5. Hedonic benefits (finding pleasure, need to spoil yourself)
Benefit has to be:
Important or motivating to target consumers
Deliverable by the brand (how well do all brands in target category deliver various benefits?)
Unique to the brand: differentially superior (being distinctive is maybe even more important)
The 20/80 rule: The Pareto principle
20% of the most loyal consumers/users buy 80% of your products. However, the rule is not correct.
So, should you go for loyalty or should you go for market penetration: reaching new customers. If
you don’t find new users, you are going to die out. They are both important. Light buyers matter for
brand growth, they are far more important to achieve growth then heavy buyers → new rule.
The model of cola buyers:
Binominal distribution
There is a correlation between market share and penetration. Correlation penetration and market
share in volume =.85. When you want to grow a brand, look for the light buyers and grow
penetration.
Go for all category users (not only a small group) is another interesting rule to take into account in
brand building phase.
Typicality: if you don’t offer the typical things that reminds you of something, the brand will not
come up spontaneously.
Marketing priorities:
1. Increasing mental availability: creating an expectation → “What the farmer not knows, that
he eats not”.
2
, 2. Increasing physical availability: delivering an experience (can also be done via the internet,
not necessarily in the store) → “What the farmer not can find, that can he not buy”.
3. Three components of physical availability
Presence: are you where you should be?
Prominence: are you easy to find?
Relevance: are you buyable?
= increasing penetration
Different types of marketing:
• Business-to-consumers
• Business-to-business
• Business-to-employer
• Non-profit
Different kinds of advertisement:
Paid: buying video time on television, influencers or YouTube advertisements.
Owned: advertise through your own channels with your own content.
Earned: worth of mouth, other people communicate about you or showing that they use your brand
to other people.
Product life cycle marketing strategies
1. Introduction phase
Category need, awareness, knowledge, attitude.
2. Growth phase
Attitude preference.
3. Maturity phase
Top of mind, attitude, loyalty, habit satisfaction.
4. Decline phase
Purchase, new target groups.
An ideal ad campaign (Keller, 2014).
• The right consumer is exposed to the message at the right time and place
• The ad causes consumer to pay attention (but can also cause subconsciously)
• The ad reflects consumer’s level of understanding and behaviors with product
• The ad correctly positions brand in terms of points-of-difference and points-of-parity
• The ad motivates consumer to consider purchase of the brand
• The ad creates strong brand associations (important)
Customers form enduring associations with a company or product.
Those associations guide consumer purchase decisions.
This says something about values and that is very important.
Brands are association networks in the brain.
Spreading activation theory of memory:
Sweden and safety → Volvo
Italy and fast → Ferrari
Cheap, comfortable and Asian → Dacia (harder to remind)
The less associations the better tied to the brand.
Distinctive assets grid:
(How unique/famous of this asset for your brand)
3
Important papers: Keller
Salience (opvallendheid) is another word for brand awareness.
Spontaneous awareness: can you mention a car brand? More important when you don’t have any
other cues. Helps you to make a choice. The more spontaneous awareness, the more automatically
people will support your brand.
Aided awareness: I list you a list of car brands, which ones do you know?
Combination is called total awareness.
The strongest brands have the highest score in unaided awareness. The mental market share is very
much tied with unaided awareness. The stronger the brand is, the more automatically it pops up
unconsciously.
Definition:
“The placement of announcements and persuasive messages in time or space purchased in any of
the mass media by business firms, non-profit organizations, government agencies, and individuals
who seek to inform and/ or persuade members of a particular target market or audience about their
products, services, organizations, or ideas.” → reminding people is important because it creates
spontaneous and aided awareness.
Consumer psychology:
Consumer psychology, Branch of social psychology concerned with the market behaviour of
consumers. Consumer psychologists examine the preferences, customs, and habits of various
consumer groups; their research on consumer attitudes is often used to help design advertising
campaigns and to formulate new products.
Only 60% of the world population has access to internet. You want to reach everybody, not only the
people who have access to social media. Social media with private connections are growing the
fastest (WhatsApp).
Fake reality is becoming a thing.
Targeted communication example: a billboard has cameras which recognizes which car you drive and
then a bill board screen pops up about that car. Or a personalized photo in a shopping mall.
Marketing principles
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering,
and exchanging offerings that have value for customers, clients, partners, and society at large.
1. Marketing mix
Product, price, place, promotion, people, physical context and process.
2. Multiplicative Marketing Steps
Diagnosis – Strategy – Tactics
Multiplicative: all the three steps are equally important, every step is as important as the
previous or next one.
Diagnosis: secondary/qualitative/quantitative?
Strategy: who/what/how?
Tactics: Communications (promotions), product, price, place (4P)
3. Multichannel marketing
Physical location, catalog, website, paid search, direct mail, email, tv, radio and social media.
1
, Using different channels which are relevant for your target population. Where are the ears
and eyes or the people I want to reach?
What is branding?
The word “brand” derives from the Old Norse word “brandr”, which means “to burn”, as brands
were and still are the means by which owners of livestock mark their animals to identify them (Keller
2002)
IMPORANT SHEET
Brand is more than a product
Products are made in the factory, but brands are created in the mind
1. “The intangible sum of a product’s attributes: its name, packaging, and price, its history, its
reputation, and the way it’s advertised.”
2. “A name, sign, or symbol used to identify items or services of the seller(s) and to
differentiate them from goods of competitors.”
3. “Products are made in the factory, but brands are created in the mind.”
A brand is a bundle of benefits with sustainable differentiation potential
1. Utilitarian benefit (food should taste nice, a toaster should toast)
2. Economic benefit (price)
3. Social benefit (having the right lifestyle that will help you)
4. Aesthetic benefit (bottle designs, packaging designs)
5. Hedonic benefits (finding pleasure, need to spoil yourself)
Benefit has to be:
Important or motivating to target consumers
Deliverable by the brand (how well do all brands in target category deliver various benefits?)
Unique to the brand: differentially superior (being distinctive is maybe even more important)
The 20/80 rule: The Pareto principle
20% of the most loyal consumers/users buy 80% of your products. However, the rule is not correct.
So, should you go for loyalty or should you go for market penetration: reaching new customers. If
you don’t find new users, you are going to die out. They are both important. Light buyers matter for
brand growth, they are far more important to achieve growth then heavy buyers → new rule.
The model of cola buyers:
Binominal distribution
There is a correlation between market share and penetration. Correlation penetration and market
share in volume =.85. When you want to grow a brand, look for the light buyers and grow
penetration.
Go for all category users (not only a small group) is another interesting rule to take into account in
brand building phase.
Typicality: if you don’t offer the typical things that reminds you of something, the brand will not
come up spontaneously.
Marketing priorities:
1. Increasing mental availability: creating an expectation → “What the farmer not knows, that
he eats not”.
2
, 2. Increasing physical availability: delivering an experience (can also be done via the internet,
not necessarily in the store) → “What the farmer not can find, that can he not buy”.
3. Three components of physical availability
Presence: are you where you should be?
Prominence: are you easy to find?
Relevance: are you buyable?
= increasing penetration
Different types of marketing:
• Business-to-consumers
• Business-to-business
• Business-to-employer
• Non-profit
Different kinds of advertisement:
Paid: buying video time on television, influencers or YouTube advertisements.
Owned: advertise through your own channels with your own content.
Earned: worth of mouth, other people communicate about you or showing that they use your brand
to other people.
Product life cycle marketing strategies
1. Introduction phase
Category need, awareness, knowledge, attitude.
2. Growth phase
Attitude preference.
3. Maturity phase
Top of mind, attitude, loyalty, habit satisfaction.
4. Decline phase
Purchase, new target groups.
An ideal ad campaign (Keller, 2014).
• The right consumer is exposed to the message at the right time and place
• The ad causes consumer to pay attention (but can also cause subconsciously)
• The ad reflects consumer’s level of understanding and behaviors with product
• The ad correctly positions brand in terms of points-of-difference and points-of-parity
• The ad motivates consumer to consider purchase of the brand
• The ad creates strong brand associations (important)
Customers form enduring associations with a company or product.
Those associations guide consumer purchase decisions.
This says something about values and that is very important.
Brands are association networks in the brain.
Spreading activation theory of memory:
Sweden and safety → Volvo
Italy and fast → Ferrari
Cheap, comfortable and Asian → Dacia (harder to remind)
The less associations the better tied to the brand.
Distinctive assets grid:
(How unique/famous of this asset for your brand)
3
