Branding,

Budgeting and
Evaluation:
Chapter 6
 The images, associations and
experiences that customers make with
brands, and the brand identities that
managers seek create, need to be
closely related if long-run brand
purchasing behavior is to be achieved.

2
  Brand are promises which set

“
up customer expectations.
⊷ Successful brands deliver on
their promises, by meeting or
exceeding expectations,
consistently.

3
 ⊷ Brands which creates
strong, positive and lasting
impressions, deliver
something to be of value to
them personally.
⊷ People perceive brands
without having to purchase
or have direct experience of
them

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 Brand defined
⊷ A name, term, symbol, or design, or a
combination of them, intended to
identify the goods or services of one
seller or group of sellers and to
differentiate them from those of
competitors
⊷ ..something that has actually created
a certain amount of awareness,
reputation, prominence in the market
place

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 ⊷ Branding is a task that requires
a significant contribution from
marketing communications and
is a long term exercise.
⊷ Organizations that cut their
brand advertising in times of
recession reduce the
significance and power of their
brands.

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 Brand Characteristics
⊷ Two main types of attributes:
1. Intrinsic attributes
⊷ Functional characteristics of the
product such as its shape,
performance and physical capacity
2. Extrinsic attributes
 Refer to those elements that are
not intrinsic and if changed do not
alter the material functioning and
performance of the product itself

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 Brand facets Explanation

Physique Refers to the main physical strength of

the brand and its core added value.
Personality Those human characteristics that best
represent the identity, best understood
by the use of celebrity spokespersons
who provide an instant personality
Culture As et of values that are central to a
brand’s aspirational power and
essential for communication and
differentiation
Relationship A brand’s relationship defines the way
it behaves and acts toward others.
These facets represent
the key dimensions Customer reflection Refers to the way customers see
brand. This is an outward reflection
associated with building
and maintaining brand Self-image Refers to how an individual feels
about themselves, relative to the
identities
brand. This is an inner reflection

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 Role of marketing communications in branding

 The way in which marketing

communications is used to build brands is
determined strategically by the role that the
brand is expected to play in achieving an
organization’s goals.

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 Role of marketing communications in branding
 During brand extensions
 To show buyers how the benefits from the
established brand have been transferred or
extended to the new brand.
 During introduction
 Marketing communications needs to inform and
sometimes educate the audience regarding how
or when a brand should be used
 Another role, is to remind buyers and reinforce
Marketing communication
their perceptions and in doing so defend the
plays a vital role in the
development of brands and market
is the means by which  Primary role: to build associations through which
product become brands. consumers identify, recognise, understand, assign
affection, become attached, and develop
10 relationships with a brand.
 Role of marketing communications in branding
Brand associations can be developed in three ways:
1. Above-the-line
 Should the budget be high, advertising will often be
the main way through which brand name
associations are shaped.
2. Below-the-line
 Where resources are restricted and advertising is not
an option, the brand name needs to be closely
related to the function and the use experience of the
product
3. Around-the-line
 Whether resources are tight or available, there are
circumstances when the use of a formal mix of brand
building tools and media is inappropriate.
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 Brand building: above the line
Two main approach:
1. Rational approach
 The functional aspect of a brand are
emphasized and the benefit to the consumer is
stressed.
2. Emotional approach
 These can enable consumers to make positive
brand associations based on both psychological
and socially acceptable meanings(psychosocial
interpretation)

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 Brand building: below-the-line
 Direct marketing and public relations are
important methods to used to build brand
values, especially when consumers
experience high involvement
 Internet offers opportunities to build net
dot.com brands
 Apart from the clarity of the brand name,
which needs to describe the product
functions, it is the packaging and
associated labelling that shapes the way a
brand is perceived.
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 Brand building: around-the-line
 The key to success is to seed the brand through word-of-
mouth communication
 Ex. Google and Hotmail
Three forms of brand development:
1. Digital communication
 social networks, email, viral marketing, blogging an in some
cases twitter, have enabled people to pass on news and
views about brands
2. Brand experience
 internal responses(sensations, feelings and thoughts) and
 behavioural responses evoked by brand-related stimuli that
are part of a brand’s design and identity, packaging,
communications and environments’

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 Brand building: around-the-line
3. Consumer experience
 occur at one of three distinct points:
1. when searching for brand,
2. when they buy brands and
3. when they consume them
 Brand experiences consist of four dimensions:
1. Sensory;
2. Affective;
3. Intellectual; and
4. behavioral

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 Brand building: around-the-line
Addition to the three forms of brand
development:
a. Co-branding;
b. Geographic identifiers;
c. Use of ingredients brand;
d. Support services; and
e. award symbols

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 Brand building: around-the-line
 Marketing communications is the means which products
can evolve into brands
 The brand associations made should be appropriate and
provide means of differentiation:
 by communicating the key strengths and differences of a
brand,
 by explaining how a brand enables a customer to create
value for themselves,
 and by reinforcing and providing consistency in the
messages transmitted
 Brands are not just external elements
 they should form part of the way in which an organization
operates, part of its cultural configuration
 internal brand education is crucial

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 Marketing Communication budget
⊷ Three general levels of decision-making:
1. How much of the organization’s available financial
resources(or relevant part) should be allocated to the
company’s brand communications over the next period
2. How much of the total amount should be allocated
to each of the individual brands
3. Investment between the tools and media designated
to support each brand.
Marketing communications budget is the same whether
organization is multinational, trading from numerous
international locations, or a small manufacturing unit on
an industrial estate outside a semi-rural community;

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 Marketing Communication budget
⊷ Four main stakeholder groups that
contribute to budgetary decisions:
1. Focus organization
2. Any communication agencies
3. Media owners and agents
4. Target audience

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 Marketing Communication budget
⊷ Techniques and approaches:
⊷ Marginal analysis
⊷ This determines the points at which
maximum returns are achieved based
on extra unit investment in
promotional activities

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 Marketing Communication budget
⊷ Techniques and approaches:
Practical approaches to setting promotional budgets:

Budgeting Explanation
Approach
Arbitrary  In practice this is implemented through a succession of
decisions as demands for communication resources arrive
 There is no reference to strategy
Inertia  decisions are based on “let’s keep it the same’ as last
time”
Media multiplier  based on maintaining the same media impact as in the
previous year yet recognizing the need to increase spend
by the rate at which media costs have increased
Percentage of sales  a popular approach is to set the budget at a level equal to
some predetermined percentage of past or expected
sales.
Affordable  requires a cost calculation
21  what is left is what we can afford to spend
 Marketing Communication budget
⊷ Competitive parity
⊷ Some organizations deliberately spend the same
amount on advertising as their competitors spend
⊷ Each organizations knows what the others are
spending and while there is no attempt to destabilize
the market through excessive or minimal promotional
spend, the market avoids self-generated turbulence
and hostile competitive activity
⊷ Disadvantage:
⊷ There is a problem of comparing like with like
⊷ Operating in a totally unrelated market

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 Marketing Communication budget
⊷ Advertising-to-sales-ratio
⊷ The underlying principle of the A/S ratio:
⊶ In each industry, it is possible to determine the
average advertising spend of all players and
compare it with the value of the market
⊷ Attempts to account for the market shares held by the
different players and to adjust promotional investment
accordingly
⊷ A/S ratios provide a useful benchmark for organizations
when they are trying to determine the adspend level
⊷ The ratio provide a valuable indicator around which
broad commercial decision can be developed
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 Marketing Communication budget
⊷ Share of voice
⊷ Within any market the total of all advertising
investments, that is all the adverting by all the players,
can be analysed in the context of the proportions each
player has made to the total

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 Evaluation
 The objective is to monitor the often diverse activities
of the organization so that management can exercise
control
 It is through the process of review and evaluation that
an organization has the opportunity to learn and
develop.
 In turn, this enables management to refine its
competitive position and to provide for higher levels of
customer satisfaction.

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 Evaluation of planned marketing communications

 Two distinct elements:

1. Developemnt and testing of individual messages and
the tools used to deliver them
2. Overall impact and effect that a campaign has on a
target audience once a communications plan has
been released

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 Role of evaluation in planned marketing communications

 Primary role is to ensure that the

communications objectives have been met
and that the startegy has been effective
 Secondary role is to ensure that the strategy
has been executed efficiently, that the full
potential of the individual promotional tools
has been made extracted and that resources
have been used economically

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 Role of evaluation in planned marketing communications

 Primary role is to ensure that the communications

objectives have been met and that the startegy has been
effective
 Secondary role is to ensure that the strategy has been
executed efficiently, that the full potential of the
individual promotional tools has been made extracted
and that resources have been used economically

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 Role of evaluation in planned marketing communications
Four Dimensions of Integrated Marketing Communication(IMC)
Dimensions of IMC Explanation
Unified communications for Activities designed to create a clear, single
consistent messages images position, in the target market, delivering a
consistent message multiple channels
Differentiated communications to The need to create different marketing
multiple customer groups communications campaigns (and positions)
targeted at different groups(in the target
market) who are at different stages of the
buying process
Database-centered The dimension emphasis the need to
communications generate behavioural responses through
direct marketing activities created through
information collected and stored in database
Relationship fostering The importance of retaining customers and
communications for existing developing long-term relationships is a
customers critical element of marketing
29 communications