Marketing Analytics
Marketing
Firms exist to satisfy consumer needs
These needs could only be satisfied
to the extent that marketers understand
the people or organisations
that will use the products & services they are trying to sell
and that they do so better than their competitors.
Role of Marketing Analytics and Research
Provide management
with the Knowledge they need to
Identify and Resolve Marketing Issues
●
●
●
●
identify and define marketing opportunities and
problems
generate, refine & evaluate marketing action
monitor marketing performance
improve understanding of marketing as a process
Brand and Brand Image
ArgylePink
“Beyond Rare - The most concentrated
form of wealth on earth”
Page 11
Agenda
• Brand. Brand Equity.
• Brand Image, Positioning, Perceptual Maps
• Market Segmentation, Differentiation
ArgylePink
“Beyond Rare - The most concentrated
form of wealth on earth”
Page 12
New Coke – lesson from the past
“Coca-Cola is
more than just a
drink. It is an idea;
it’s a vision, a
feeling.”
“To hear some tell it, April 23,
1985, was a day that will live in
marketing infamy... spawning
consumer angst the likes of
which no business has ever
seen.” — The Coca-Cola
Company, on the New Coke
announcement
• April 1985: Research indicated that consumers “overwhelmingly”
preferred Coca-Cola’s new formulation ... The company conducted
190,000 taste tests
• Consumers rebelled. 400,000+ letters and calls in the snail mail age
• Ultimately the brand belongs to consumers
Page 14
Top global brands
Leading global brands including IBM, Microsoft, GE, Google, Intel, Toyota, Mercedes Benz,
and BMW have high proportion of B2B sales.
http://www.bestglobalbrands.com/2014/ranking/#?listFormat=sq
Brand – Definition
• Brand is a trademark which in the mind of consumers
embraces particular set of values and attributes, both
tangible and intangible
• “A brand is a consumer’s idea of a product” David Ogilvy
Embodies two important principles – that brand is different from a
product and that the difference resides in the minds of consumers
Page 18
Brand Image
• Brand image is the consumers’ perception of the brand.
• Products deliver a set of benefits – functional, rational, emotional,
personality, brand-consumer relationship benefits.
• The image or profile of a brand relates to how it is rated on these
benefits or attributes.
Page 19
Singapore
(some associations)
Shopping
Clean
& Green
No
Corruption
Food (Chicken
Rice)
Efficient
Fine ($)
city
Nanny
State
SQ
Merlion
Lee Kwan
Yew
Top female international fashion icons:
Nicole Kidman for luxurious elegance;
Angelina Jolie the provocative persona
International female celebrities deemed by Singaporean
females to best endorse / advertise fashion products
Designer watch
Luxury designer wear
Luxury perfumes
Provocative fashion
Designer sunglasses
Designer lingerie
Base: All female Singaporean respondents
Source: Global Online Omnibus Nov 2005
*Selected among list of 10 international female celebrities
Page 21
How do we craft a
brand’s image?
Positioning
Incredible !ndia – ad campaign positions India as a colourful,
fascinating, country full of tradition and history. It creates a distinct
impression in peoples’ minds about the country.
Page 27
Positioning and differentiation
• Concept of positioning was popularized by Al Ries and
Jack Trout in their bestseller Positioning - The Battle for
Your Mind.
• “Positioning is what you do to the mind of the prospect”.
• Whereas differentiation is the process of distinguishing a
product or offering from others to make it more attractive
to a particular target market, positioning is the act of
crafting a distinct and valued image of the product in the
minds of consumers.
Page 28
Positioning examples
Volkswagen Beetle - Think small
Volvo’s – Safety
BMW – The ultimate driving machine
Apple – Think different
Coca-Cola’s – The real thing
7 Up – Uncola
Red Bull – The energy drink
Avis – We try harder
Dove – Beauty without artifice. (Real
beauty)
• FairPrice
• Singapore Airlines – Singapore girl Asian hospitality and grace
• NUS Business School – Asia’s global
business school
•
•
•
•
•
•
•
•
•
Page 29
How do consumers
view our brands?
How to measure and
track brand image?
Brand Image Tracking
• Brand image is the consumers’ perception of the brand.
• Products deliver a set of benefits –
–
–
–
–
–
functional,
rational,
emotional,
personality,
brand-consumer relationship benefits.
• The image or profile of a brand can be gauged by its rating on these
benefits or attributes.
• Brand Image questions
– Free association image grids.
– Photo / Brand list “Which of these brands do you think are …?”
– Fits with consumer buying in that it asks respondents to consider
brands in a competitive context
– Scaled attribute ratings. 1 to 5 (or 7 or 10). (rating scale). More rigorous
but expensive
How do we select product attribute?
Page 32
Determining Product Attributes
• Choice of attributes is based on the objectives of the study. For
advertising and positioning research, one would choose a broad
spectrum of attributes. For a product development study, focus is
on product design attributes.
• In case of an ongoing product category, important attributes are
known to marketing
• Brand owners would usually include the core attributes of their
brands
• Attribute lists are refined to reflect change in emphasis in
advertising as also the changing consumer trends.
• Where there is less knowledge of the product attributes, focus
groups (qualitative research) will help unearth the qualities of a
product that consumers are most interested in
Page 35
Brand Image rating
Q: Please rate the following brands of shampoo on each of the statements
using a scale of 1 to 5, where
"1" means "Strongly disagree",
“2” means “Disagree”,
“3” means “Neither agree nor disagree”,
“4” means “Agree” and
"5" means "Strongly agree”
“Using (Brand) makes my hair Shiny and Lustrous”
Top 2 boxes (Strongly Agree / Agree)
Actual
Soft
Shiny, Lustrous
Beautiful
Nourish roots
Frequent use
Scalp healthy
Life, Body and Bounce
Value for money
Strengthens hair
Hair Expert
Prevents dandruff
Average
Pantene Organics Vidal S.
36
20
18
43
25
18
35
22
25
35
14
35
30
15
12
33
22
13
30
20
29
20
15
13
23
43
14
16
18
43
11
6
3
28.4
21.9
18.4
Elseve
11
14
9
11
8
8
13
5
10
18
3
10.0
J&J
18
7
9
7
24
6
8
19
5
3
3
9.9
Sifone
Rejoice
13
12
13
10
10
10
8
8
10
10
9
8
6
9
20
12
5
8
3
3
9
13
9.6
9.4
Timotei
6
3
8
4
9
5
3
4
1
1
3
4.3
Optima
6
4
3
4
1
2
2
2
3
3
0
2.7
Average
15.6
15.2
14.6
14.0
13.2
11.8
13.3
12.2
12.4
12.0
5.7
12.7
Can the numbers be depicted in a visual form that’s easier for minds to process?
Page 36
Can we derive more meaning from the data?
Brand Image Profiling
• People comment more on familiar brands
… brand size influences image endorsement
• Brands in general are associated more strongly with
some attributes (generic ones for instance) than others
• Image profiling mathematically eliminates influence of
brand and attribute “size”
• Determines brands’ image strengths and weaknesses in
relation to each other
• … expressed as variation from what one would expect if
brand were average
Page 40
Brand Image rating: Actual and Expected Scores
Actual
Soft
Shiny, Lustrous
Beautiful
Nourish roots
Frequent use
Scalp healthy
Life, Body and Bounce
Value for money
Strengthens hair
Hair Expert
Prevents dandruff
Average
Pantene Organics Vidal S.
36
20
18
43
25
18
35
22
25
35
14
35
30
15
12
33
22
13
30
20
29
20
15
13
23
43
14
16
18
43
11
6
3
28.4
21.9
18.4
Elseve
11
14
9
11
8
8
13
5
10
18
3
10.0
J&J
Sifone
Rejoice
13
12
13
10
10
10
8
8
10
10
9
8
6
9
20
12
5
8
3
3
9
13
9.6
9.4
18
7
9
7
24
6
8
19
5
3
3
9.9
21.9 14.0
12.7
Timotei
6
3
8
4
9
5
3
4
1
1
3
4.3
Optima
6
4
3
4
1
2
2
2
3
3
0
2.7
Average
15.6
15.2
14.6
14.0
13.2
11.8
13.3
12.2
12.4
12.0
5.7
12.7
24.1
Page 43
Actual, Expected, Profile
We can now conclude that rating of ‘35’ represents a strong association of Organics with
‘Nourishes Roots’ … because 35 >> 24.1 (the expected rating)
Actual
Soft
Shiny, Lustrous
Beautiful
Nourish roots
Frequent use
Scalp healthy
Life, Body and Bounce
Value for money
Strengthens hair
Hair Expert
Prevents dandruff
Average
Pantene Organics Vidal S.
36
20
18
43
25
18
35
22
25
35
14
35
30
15
12
33
22
13
30
20
29
20
15
13
23
43
14
16
18
43
11
6
3
28.4
21.9
18.4
Elseve
11
14
9
11
8
8
13
5
10
18
3
10.0
J&J
Expected Scores
Soft
Shiny, Lustrous
Beautiful
Nourish roots
Frequent use
Scalp healthy
Life, Body and Bounce
Value for money
Strengthens hair
Hair Expert
Prevents dandruff
Average
Pantene Organics Vidal S.
34.7
26.8
22.4
33.9
26.2
22.0
32.4
25.1
21.0
31.2
20.2
24.1
29.5
22.8
19.1
26.2
20.3
17.0
19.2
29.7
23.0
27.2
21.0
17.6
27.7
21.4
18.0
26.7
20.7
17.3
12.6
9.8
8.2
28.4
21.9
18.4
Elseve
12.2
12.0
11.4
11.0
10.4
9.3
10.5
9.6
9.8
9.4
4.5
10.0
J&J
12.1
11.9
11.3
10.9
10.3
9.2
10.4
9.5
9.7
9.3
4.4
9.9
18
7
9
7
24
6
8
19
5
3
3
9.9
Sifone
Rejoice
Timotei
13
12
6
13
10
3
10
10
8
8
8
4
10
10
9
9
8
5
6
9
3
21.9 20 14.0 12
4
24.1
5
8
1
12.7
3
3
1
9
13
3
9.6
9.4
4.3
Optima
6
4
3
4
1
2
2
2
3
3
0
2.7
Average
15.6
15.2
14.6
14.0
13.2
11.8
13.3
12.2
12.4
12.0
5.7
12.7
Sifone
Rejoice
Timotei
Optima
11.8
11.4
5.2
3.3
11.5
11.2
5.1
3.3
11.0
10.7
4.9
3.1
10.6
10.3
4.7
3.0
10.0
9.7
4.4
2.8
8.9
8.7
4.0
2.5
10.1 35 9.824.1 4.510.9 2.9
9.3
9.0
4.1
2.6
9.4
9.2
4.2
2.7
9.1
8.8
4.0
2.6
4.3
4.2
1.9
1.2
9.6
9.4
4.3
2.7
Average
15.6
15.2
14.6
14.0
13.2
11.8
13.3
12.2
12.4
12.0
5.7
12.7
Page 45
Image Profile = Actual - Expected Scores
J&J … frequent use
and value for money
Profile = Actual Score - Expected Score
Profile = Difference
Soft
Shiny, Lustrous
Beautiful
Nourish roots
Frequent use
Scalp healthy
Life, Body and Bounce
Value for money
Strengthens hair
Hair Expert
Prevents dandruff
Pantene Organics Vidal S.
1.3
-6.8
-4.4
9.1
-1.2
-4.0
2.6
-3.1
4.0
3.8
-6.2
10.9
0.5
-7.8
-7.1
6.8
1.7
-4.0
0.3
-3.0
9.8
-7.2
-6.0
-4.6
-4.7
21.6
-4.0
-10.7
-2.7
25.7
-1.6
-3.8
-5.2
Organics
strengthens
hair
Elseve
-1.2
2.0
-2.4
0.0
-2.4
-1.3
2.5
-4.6
0.2
8.6
-1.5
J&J
5.9
-4.9
-2.3
-3.9
13.7
-3.2
-2.4
9.5
-4.7
-6.3
-1.4
Sifone
1.2
1.5
-1.0
-2.6
0.0
0.1
-4.1
10.7
-4.4
-6.1
4.7
Vidal Sassoon
… the hair expert
Page 47
Image Profile is a reflection of the brand’s personality
Elseve Shampoo
Rating
Soft
2.0
14.0
Beautiful
-2.4
9.0
Nourish roots
0.0
11.0
Frequent use
8.0
Scalp healthy
8.0
Life, Body and Bounce
-2.4
-1.3
2.5
13.0
-4.6
5.0
Strengthens hair
0.2
10.0
Hair Expert
Prevents dandruff
-1.2
11.0
Shiny, Lustrous
Value for money
Profile
8.6
18.0
3.0
-1.5
Page 48
Relative Strengths & Weaknesses
Soft
-6.8
1.3
Shiny, Lustrous
9.1
Beautiful
2.6
Nourish roots
0.3
-7.2
Strengthens hair
Prevents dandruff
-4.0
4.0
10.9
-6.2
-7.8
6.8
Life, Body and Bounce
Hair Expert
-1.2
-3.1
0.5
Scalp healthy
Value for money
-4.4
3.8
Frequent use
Vidal Sassoon
Organics
Pantene
-7.1
1.7
-4.0
-3.0
9.8
-6.0
-4.7
-10.7
-4.6
21.6
-4.0
-2.7
-1.6
-3.8
25.7
-5.2
Page 52
Image profile in ‘98 of Watson’s and Guardian
Watson’s differentiates through assortment & promotions
Store profile: Toiletries
Wide product range and variety
13
Attractive promotions
15
Low price
0
12
Good display
1
4
Friendly and helpful staffs
5
0
Convenient location
4
-4
Modern and innovative
-2
-6
Efficient check-out counters
-9
Nice shopping environment
-9
Being Spacious
2
-16
-1
1
-4
-7
Which banner has a healthier brand image?
Page 54
Attribute = 100
Best suited for comparisons across brands … and
comparisons across time
“share of attribute rating”
Actual
Soft
Shiny, Lustrous
Beautiful
Nourish roots
Frequent use
Scalp healthy
Life, Body and Bounce
Value for money
Strengthens hair
Hair Expert
Prevents dandruff
Average
Pantene Organics Vidal S.
25.7
14.3
12.9
31.4
18.2
13.1
26.7
16.8
19.1
27.8
27.8
11.1
25.2
12.6
10.1
31.1
20.8
12.3
25.0
16.7
24.2
18.2
13.6
11.8
20.5
38.4
12.5
14.8
16.7
39.8
21.6
11.8
5.9
24.4
18.9
15.7
Elseve
7.9
10.2
6.9
8.7
6.7
7.5
10.8
4.5
8.9
16.7
5.9
8.6
J&J
12.9
5.1
6.9
5.6
20.2
5.7
6.7
17.3
4.5
2.8
5.9
8.5
Sifone
Rejoice
9.3
8.6
9.5
7.3
7.6
7.6
6.3
6.3
8.4
8.4
8.5
7.5
5.0
7.5
18.2
10.9
4.5
7.1
2.8
2.8
17.6
25.5
8.9
9.1
Timotei
4.3
2.2
6.1
3.2
7.6
4.7
2.5
3.6
0.9
0.9
5.9
3.8
Optima
4.3
2.9
2.3
3.2
0.8
1.9
1.7
1.8
2.7
2.8
0.0
2.2
Sum
100
100
100
100
100
100
100
100
100
100
100
Page 57
Share of attribute ratings of Organics tracked over time ...
reflects strengthening of brand’s image
Attribute = 100
38
40
All round improvement in image profile coinciding with a
new advertising campaign
28
30
18
20
14
13
10
0
Soft
Shiny
Lustrous
Jul
Nourishes
Roots
Aug
Sep
Strengthens Frequent Use
Hair
Oct
Page 58
Perceptual Maps
Consider some bubbles. Suppose we want to
organize them in a meaningful way …
Provides a visual summary of
the (brand & attribute) data
Consider what distinguishes
one bubble from another?
2 dimensions (factors)
- Shade … Dark / Light
- Size … Big / Small
Though brands have many
attributes, these can be
mapped onto 2, 3 or more
factors (combination of
attributes)
Page 60
How to produce perceptual maps
1
1.
2.
3.
4.
5.
2
Compute Expected Score
Image Profile = Actual - Expected Scores
Standardize the difference across cells. (Chi-square
values)
Chi-square value =
(Profile)2 ___
Expected Score
Compute Similarity by applying the sign of the Profile
to the chi-square values. These values provide a
standardized measure of association.
Use Correspondence Analysis (CA) to create the
perceptual map.
3
4
Page 65
Perceptual map (Shampoo data)
When interpreting a perceptual
map, keep in mind:
• The distances between products on the
map indicate their perceived
similarities.
• The lines on a perceptual map indicate
the direction in which an attribute
increases while moving away from the
origin along that line. The longer a line,
the greater is the importance of that
attribute in differentiating offerings in
the market.
• To assess the strength of a brand’s
position on any attribute, draw an
imaginary perpendicular line from the
product to the attribute. The farther an
offering is from the origin along the
direction of that attribute, the higher is
the rating of the offering on that
attribute.
Page 67
Perceptual map (Shampoo data) – Functional Attributes
Interpretation:
Hair Expert
Vidal Sassoon
Elseve
Optima
Life, Body and Bounce
Strengthens hair
Organic
Nourish roots
Shiny, Lustrous
Beautiful
Healthy Scalp
Pantene
Soft
Timotei
Rejoice
Frequent use
Value for money
J&J
Sifone
Prevents dandruff
• Attributes such as Shiny, Lustrous,
Soft, Beautiful, Healthy Scalp are
generic in nature.
• Attribute like Hair Expert,
Strengthens Hair, Prevents
Dandruff, Frequent Use and VFM
are the more important
differentiators.
• Pantene is centrally located; an
appropriate position for a market
leader
• On the other hand a central
position is undesirable for a
relatively small brand like Optima.
(Niche player should be
differentiated)
• J&J, Timotei, Sifone and Rejoice
compete in the same space.
• Organics is uniquely positioned as
a brand that strengthens hair and
nourishes roots.
Page 69
Distinct Brand Personalities emerge in this shampoo study where
personality attributes are employed
Family-oriented
Palmolive
Friendly
Traditional
Fun
Sunsilk
Down to earth
Genuine
Caring
Mature
Pantene
Young
Feminine Fashionable
ModernTrend setter
Attractive
Confident
Elegant
Sheaye
Wella
V05
Garnier
Knowledgeable
Professional
Clairol
Head & Shoulders
Page 71
Conversations on the net reveal brand associations
Nielsen’s Brand Association Map
Most of this data is
unstructured, and requires
text analytics and NLP
(Natural Language
Processing) algorithms to
extract sentiments and
concepts
Competitors
Products
Attributes
Related Concepts
Source: Nielsen
Brand Management (at a broad, conceptual level)
• The value of a brand lies in the minds of the people
who consume it. It is their idea of a product, and it
shapes their response to the marketing of the
product.
• Built, nurtured and sustained through skilful
marketing and innovation in all elements of their mix,
great brands become their owners’ most valuable
and enduring assets.
• Manufacturers constantly try to enhance their brands’
equity. Because of their enormous value and the
large investment in them, it’s important to monitor the
health of brands on a regular basis
Page 89
Brand Health Kit
important health measures
Destiny
• Profitability
• Market share
Weeks 7,8
• Distribution
• Usership
… width and depth of use
• Brand Loyalty
… emotional / behavioural
Week 9
Next Week
• Brand Equity
• Price
… relative price
• Promotions
… effectiveness
• Advertising spend
… share of voice, leverage
• Advertising
… salience, diagnostics
• Brand Image
… image rating, profiling
• Product design, performance
Week 6
Weeks
3, 4
today
Week 10
Page 90