Retentive advertising

Chapter 3

The Advertising Spiral and Brand Planning

Chapter Objectives

After reading this chapter you will understand:

1. The importance of understanding the product life cycle

2. The relationship of the advertising spiral

3. The birth and basics of branding

4. Brands and integrated marketing

5. Brand equity

6. Strategic planning methods

Chapter Overview

Chief among the critical aspects of advertising decision making is developing a strategic plan. In marketing, as well as other aspects of business, great emphasis is placed on developing sound and effective strategies. One of the fundamental building blocks in marketing strategy development is to understand how products pass through a product life cycle. As a product passes through the life cycle’s distinctive stages, it is noteworthy that advertising plays a different role in each stage of development. The appreciation and understanding of these changes is critical in strategy development.

Similar to the product life cycle is the advertising spiral. Three distinct stages indicate consumer response tendencies and strategic changes. As an example, until consumers appreciate the fact that they need a product, that product is in the pioneering stage. In the competitive stage, an advertiser tries to differentiate its product from that of the competition. Once consumers know about products and use them, the product may become part of the retentive stage, which uses reminder advertising.

The age of the product has little to do with what stage it is in at any given time. Rather, consumer attitude toward the product or perception determines which stage a product is in. This chapter explains the changes in advertising strategy from stage to stage. Note that as consumer perception changes (which advertisers try to manage), the advertising message changes. Understanding this process is critical to advertising success.

The second major thrust of the chapter is to analyze and explain brand planning and resulting brand equity. Advertising’s relationship to branding is historical in nature and provides many interesting insights. A brand, in a modern sense, is created. It is made up of rational and emotional elements. Advertising’s role is to explain and communicate these elements to the consumer. In order to do so effectively, integrated marketing communications recognizes the added value of a comprehensive plan that evaluates the strategic roles to a variety of communication disciplines and combines these disciplines synergistic effect to provide clarity, consistency, and maximum communication impact.

The chapter concludes by examining brand equity. Several contemporary methods for achieving and maintaining equity are presented and evaluated. One useful way of beginning the brand equity quest is to conduct a brand equity audit. The reader will find the various plans presented to be a useful addition to his or her strategic planning portfolio (or bag of tools).

Lecture Outline

1. Introduction

Marketers and advertisers are in accord that corporate brands are a company’s most valuable asset.

1) Today’s consumers control the power because of their ability to turn us off and on easier than ever before; therefore, it is no longer enough for a brand to distinguish itself only through an advertising campaign. Successful brands offer customers relevant and unique experiences.

2) But with such an abundance of brand names, sub-brands and mini-brands, consumers are often confused and brand confidence can be eroded.

3) The management challenge for companies is to clearly differentiate their products and services, based upon achievable advertising objectives and promises.

B. With the multitude of new fragmented media choices available, a new emphasis is being placed on better integrating brand communication efforts, called integrated marketing communication.