In order to find out how positioning and a new marketing communication strategy can result in a higher level of brand awareness among businesses having 50 – 500 employees, several theoretical models will have to be compared and described. Paragraph one will elaborate on the concept of positioning, and explain numerous definitions for this concept. Paragraph two shall cover the theoretical models to be applied in the methodology in order to understand how a good marketing communication strategy can be formed for Studio Vier to create brand awareness.
The theoretical models to be discussed in this chapter are the STP-model (Armstrong et al., 2008), Keller’s Brand Equity Model, also known as the Customer-based Brand Equity (CBBE) Model (Keller, 2013), and the REAN model (Jackson, 2009). For this research, the models are coherent in the following way:
Keller’s Brand Equity Model consists of numerous steps to eventually build strong brand equity. The first step of the model is the determination of the identity of the organisation. The CBBE model has a certain overlap with the STP model, as the STP model is a model which provides guidance to an organisation to e.g. position itself by establishing an identity.
The STP model provides guidance in the mapping of the potential market and how this market can best be approached. By doing so, an organization more clearly determine and assess the customer’s needs and in addition make an analysis of the competitors within the segment. The identity of the organisation needs to be communicated towards the target group. The REAN model provides a framework to plan and to analyse the (multi-channel) marketing activities that are needed to build and nurture a customer relationship. Each theoretical model is a crucial step in the creation of a new marketing communication strategy.
The theoretical models will be used to answer the sub-questions of this research. The answers to these sub-questions will make it possible to answer the main question, a marketing communication strategy will arise from the answer on the problem statement.
3.1 Definitions
3.1.1 Marketing Communication
Kotler and Keller (2012) define Marketing Communication as: “The means by which firms attempt to inform, persuade, and remind consumers – directly or indirectly – about the products and brands they sell” (page 254). The communications should also help in linking the product or brand to other people, places, events, brands, experiences, feelings and things. This definition is partially applicable to this research but is aimed towards the regular consumer. Floor and Van Raaij (2011) add that marketing communication is a way for companies to get into contact with other companies and consumers. Herlé and Rustema (2011) share this opinion and add “Communication in support of marketing or communication with the trade or with clients to influence their knowledge, attitude and behaviour in a favourable direction for the marketing strategy” (p. 124). The communication should be unambiguous and coherent.
The abovementioned statements complement each other and therefore will be applicable to this research. The execution of marketing communication is done with the support of a marketing communication strategy. The definition of marketing communication strategy is discussed in paragraph 3.2.1.
3.1.2 Marketing communication strategy
Every organisation needs a marketing communication strategy in order to attract new customers. The word ‘strategy’ originates from the ancient Greek word ‘strategos’, meaning general. Alfred D. Chandler, Jr.(1962), defines strategy as follows: the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources for carrying out these goals. A marketing communication strategy shall arise from the interviews to be conducted with the managing director of Studio Vier to determine the long-term goals and objectives of the company. Furthermore, the strategy to be made will also take into account the preferences of the customers which will arise from the survey, and potential customers of Studio Vier via the follow-up in depth interviews.
3.1.3 Brand Awareness
Aaker (1996) refers brand awareness to the strength of a brand’s presence in the consumer’s mind. Bovée (Bovée, Thrill, & Dovel, 1995) agrees and also considers it as a measure of the percentage of the target market that is aware of a brand name. Strydom, de Beer, Kara, Kiley, Hotlzhausen, Nieuwenhuizen, Rudansky-Klopper and Steenkamp (2000) believe that marketers can create awareness among their target audience through repetitive advertising and publicity. Brand awareness can provide a host of competitive advantages for the marketer.
The abovementioned statements are applicable to this research. The strength of the presence of the brand ‘Studio Vier’ can be tested by means of a survey which will be conducted among the target group. Furthermore, by conducting interviews with three marketing communication experts, the steps required to gain more brand awareness will also become clear. These interviews will also test if advertising is the only way to achieve this. And if so, how advertising has to be integrated into Studio Vier’s new marketing communication strategy.
3.1.4 Brand Positioning
Brand positioning refers to the sum of all activities that position a brand in the mind of the customer relative to its competition. Kotler and Keller (2012) define brand positioning as “an act of designing the company’s offering and image to occupy a distinct place in the mind of the target market.” A recognizable and trusted customer-focused value proposition can be the result of a successful positioning without doing something to the product itself. Kotler and Keller state that it is the rational and persuasive reason to buy the brand in highly competitive markets. Therefore, it is essential to understand and to know the position a brand owns in the mind. Ries and Trout (2001) share this statement and also state that in order to position a brand efficiently within its market, it is critical to evaluate the brand objectively and assess how the brand is views by customers and prospects. This research shall apply the abovementioned statement.
By integrating questions in the survey with the current customers about their views on the brand Studio Vier, it becomes clear what the views of the customer is of the brand.
The customers’ segments that have the biggest potential for Studio Vier will be considered as prospects. By asking in-depth questions in semi-structured interview with these prospects, more detailed information about how customers assess the brand Studio Vier will arise.
3.2 Theoretical Models
3.2.1 Keller’s Brand Equity Model
The Brand Equity Model (Keller, 2013) is also known as the Customer-based Brand Equity (CBBE) Model. The concept by the Brand Equity Model states: in order to build a strong brand, you must shape how customers think and feel about your product. This entails building the right type of experiences around a brand, making sure that customers have a specific, positive thought, feeling, believe, opinion and perception about it. The model consists of four steps that an organisation need to follow to build strong brand equity, as shown in figure 1.
The first step ‘Salience’ serves the goal of creating “brand salience,” or awareness. During this stage the organisation tries to ensure that the brand perceptions are correct at the key stages of the buying process. In order to do so, the customers of Studio Vier needs to be defined and explore what their needs are. The next step is to identify how the customers narrow down their choices and decide between brands. Also, as an event agency you need to know the needs of the target group, and how the product of the agency satisfies a particular set of those needs. This is done with the help of the unique selling points of the company.
Step 2 of the CBBE model serves the goal of identifying and to communicate what a brand means, and what it stands for. The two building block in this step to do so are: “performance” and “imagery”. “Performance” defines how well a product meets the needs of the customer. “Imagery” refers to how well a brand meets the customers’ needs on a social and psychological level.
The experiences that customers have with a brand/company come as a direct result of its performance. The product must meet, and, ideally exceed their expectations if the goal is to build loyalty. The needs of the customers need to be identified, and then explore how these needs can be translated into a high quality product. The experience that Studio Vier wants its customers to have need to be defined. By taking performance and imagery into account, a “brand personality” can be made.
Step 3 explores the organisations’ customers’ responses which fall into the categories “judgements” and “feelings”. These are the two building blocks in this step. Customers constantly make judgments about brand and these fall into four key categories:
o Quality: Customers judge a product or brand based on its actual and perceived quality.
o Credibility: Customers judge credibility using three dimensions – expertise (which includes innovation), trustworthiness, and likability.
o Consideration: Customers judge how relevant a product is to their unique needs.
o Superiority: Customers assess how superior a brand is, compared with competitors' brands.
Brands can evoke feelings directly, but they can also respond emotionally to how a brand makes them feel about themselves. According to the CBBE model, there are six positive brand feelings: warmth, fun, excitement, security, social approval, and self-respect.
All abovementioned categories of judgments need to be examined. In order to do so, the organisation can consider the following questions in relation to these:
o What can you do to improve the actual and perceived quality of your product or brand?
o How can you enhance your brand's credibility?
o How well does your marketing strategy communicate your brand's relevancy to people's needs?
o How does your product or brand compare with those of your competitors?
Then, the company applying the model should think about the six brand feelings listed above. Which, if any, of the mentioned feelings does the current marketing strategy focus on? What can the company do to enhance these feelings for its customers? The answers to these questions are the actions needed to be taken. By conducting a survey and asking the current customer about their judgments and opinion about Studio Vier based on their experiences, the judgments and feelings customers have about Studio Vier become clear. By asking the managing director of Studio Vier about the desired judgments and opinions of the customers, an analysis can be made in what the differences are and what steps should be undertaken to overcome these gaps.
Brand “resonance” sits at the top of the CBBE pyramid because it’s the most difficult level to reach. A brand achieves brand resonance when its customers feel a deep, psychological bond with the brand. Keller breaks down resonance into four categories:
o Behavioural loyalty: This includes regular, repeat purchases.
o Attitudinal attachment: Your customers love your brand or your product, and they see it as a special purchase.
o Sense of community: Your customers feel a sense of community with people associated with the brand, including other consumers and company representatives.
o Active engagement: This is the strongest example of brand loyalty. Customers are actively engaged with your brand, even when they are not purchasing it or consuming it. This could include joining a club related to the brand; participating in online chats, marketing rallies, or events; following your brand on social media; or taking part in other, outside activities.
The goal of the last phase of the pyramid is to strengthen each resonance category. A company can consider gifts with purchase, or customer loyalty programs. The organisation needs to ask itself what it can do to reward customers. List the actions that are possible.
Currently the identity of Studio Vier is yet to be defined. In combination with the STP model, the CBBE model will help to determine the identity of Studio Vier. This is the first step of the research as the company needs an identity in order to position itself. By applying the CBBE model in the semi-structured interview to be conducted and, in the survey to be conducted with the current customer of Studio Vier, the (perceived) identity of the Studio Vier can be determined. By doing so, sub-question number 3 can be answered: Based on Keller’s Brand Equity Model, what is the identity of Studio Vier that it would like to present to its target group? Furthermore, by integrating the CBBE model into survey, sub-question number 4 can also be answered: Which strengths can be used as Unique Selling Points and which weaknesses of Studio Vier should be addressed and countered? By asking the current customer about their experiences and what they considered as the strong points of Studio Vier, the USP’s, and the way they perceive the identity ‘Studio Vier’, will become clear.
In succession, the CBBE model shall also be integrated in the semi structured interviews that will be conducted with the potential customer as follow up to gain a deeper insight in the needs and preferences of the customer.
3.2.2 STP model – The model for positioning
The STP-model (Armstrong et al., 2008) is a good model that helps to find interesting target markets for products and services. The model provides guidance when finding the correct positioning strategy. As mentioned before, Studio Vier is still a young company. Therefore, it is still seeking how to position itself in order to generate more brand awareness.
The STP model consists out of the following three elements:
Segmentation: The process of splitting a market into smaller groups with similar product needs or identifiable characteristics, for the purpose of selecting appropriate target markets
Targeting: The organisation’s proactive selection of a suitable market segment with the intention of heavily focusing on the firms marketing offers and activities towards this group of related customers.
Positioning: Determining of the corporate image and identity that links to the chosen target market.
3.2.2.1 Segmentation
Segmentation involves grouping consumers or business customers within a market into smaller segments based on similarities in needs, attitudes or behaviour that marketing can address (Wood, 2010). The segments for B2B can be divided based on multiple criteria (Armstrong et al., 2008)
Demographic: The composition of a company;
User Variables: Product types or sales;
Purchase approach: Based on the Decision Making Unit (DMU) and the Problem Solving Unit (PSU);
Context specific factors: Current situation of the market;
Personal features: Time span of relationship between the two companies.
Segments do have to comply with the following segmentation criteria
Homogeneous: The segment has to have uniform features
Sufficient size: The segment has to be of sufficient size, it cannot be too small
Measureable: It has to be clear to which segment people belong so it can be measured which effects marketing strategies have
Accessible: Communication with a segment should be conceivable.
The STP-model is applicable to this research as it provides guidance on how the organisation can position itself. The STP-model shall also be integrated in the survey to be conducted among the current customer of Studio Vier. Questions about the characteristics of the companies will make it possible to segment the customer database and create customer profiles. By applying the same segmentation criteria used in the survey, on the whole Dutch market, the Dutch market can be segmented.
3.2.2.2 Targeting
After having segmented the market, the next step is to determine which segments are important and interesting, and which are not. A criterion such as the approachableness and suitability has to be determined which the segments should meet. An interesting segment can be chosen by means of a combination of different target market criteria ((Armstrong et al., 2008).
After having made customer profiles as described in chapter 3.2.2.1, it also becomes clear what segment is the biggest within Studio Vier’s database and therefore, is considered as the segment with the most potential. The segment is also applicable to the Dutch market is the segment on which the company should target.