Branding

and

Ethics and Advertising

Christian Berg

Learning Objectives
History of branding
What makes a good brand?
Describe the concept of brand equity.
Explain the importance of brand awareness.
What branding means for advertising.

Critiqual view on branding

Brainstorm

What are the 10 best known brands in Vietnam?

Brainstorm
Look at your
neighbours what
brands do they use?
Does this tell you
something about
their personality?

http://www.psychworld.co
m/brands-define-you2010-11

15

What is a Brand?
A name, term, sign, symbol, or design, or a combination of them
intended to identify the goods and services of one seller or group of
sellers and to differentiate them from those of competition.
(Rossiter and Bellman, 2005, Marketing
Communication: theory and applications. Pearson Education Australia.)

A short history of Branding

Early days:
mason marks, family crests and artist signatures

A short history of Branding

From 1800 branding cattle

A short history of Branding

1880s - corporate logos in mass produced products

Advertisement: Mastercard Moon Landing

An Effective Brand
Is easy to pronounce
Is easy to recognise and remember

Is short, distinctive, and unique

Describes the product, use, and benefits

Has a positive connotation

Reinforces the product image

Is legally protectable

Some definitions
Brand Identity
A combination of factors including: name, logo, symbols,
design, packaging and performance of a product or service
Also image or associations that come to mind when
consumers think about a brand

Encompasses the entire spectrum of consumers

awareness, knowledge and image of a brand as well as the
company behind it. It is the sum of all points of encounter
or contact that consumers have with the brand
(Belch & Belch: 14)

Some definitions
Brand Equity

The value associated with a brand. When a brand has

brand equity, market share or profit margins are greater
because of the associated goodwill
(Zikmund & dAmico: 245)

Brand loyalty

A measure of the extent to which consumers are

committed to a particular brand

Some definitions
Brand personality
The character of a brand expressed in human terms
(eg. reliable, friendly, sophisticated)

Branding
The process of creating a unique identity for the
product or service
(Yeshin 2006: xvixvii)

CASE STUDY
http://www.youtube.com/user/redbull/videos
World of Red Bull Commercial:
http://www.youtube.com/watch?v=Ti2Lm4hb2ZY

4 quick observations about Red Bulls unique approach to brandbuilding:

Red Bulls brand building is largely based on associating its brand with an
amazingly wide range of people, teams and events.
Red Bull believes in owning teams and events rather than being one of
several sponsors.
Because of this ownership model, they can and have turned this buzz
machine into a profit center.
Their on-brand activities reflect two very different personalities that live side
by side.

Taken from: http://www.prophet.com/blog/aakeronbrands/140-red-bull

Some examples of problem brand

names

Introduction to Advertising

This brand name

might be a problem
should they
choose to enter an
English speaking
market

Introduction to Advertising

An Example of Rebranding

Introduction to Advertising

Introduction to Advertising

Introduction to Advertising

Rebranding Old Spice

Two Dimensions of Brand Knowledge

Brand awareness
An issue of whether a brand name comes to mind when
consumers think about a particular product category and the
ease with which the name is evoked.
Remember the brand awareness pyramid from last week

Brand image
The types of associations that come to the consumers mind
when contemplating a particular brand.

(Rossiter and Bellman (2005), Marketing Communication: theory and applications.

Pearson Education Australia.)
Introduction to Advertising

Imagine Microsoft and Apple were 2 MEN

What would they be like?
Can you describe them?

http://www.youtube.com/watc
h?v=NlHUz99l-eo

Advertisement:
Pepsi One

Introduction to Advertising

Advertisement: PS Toothpaste

Co-branding and Ingredient Branding

Co-branding
A partnership between two brands.

Ingredient branding
Inclusion of one brand within the other.

Co-branding

Introduction to Advertising

Is this an example of cobranding?

Introduction to Advertising

Ingredient Branding

Characteristics of a
World-class Brand
Delivers benefits consumers desire.
Stays relevant.
Price equals value.
Good positioning.
Consistency.

Characteristics of a
World-class Brand
Fits into brand portfolio.
Helps to build brand equity.
Brands managers understand what the brand means to consumers.
Marketing support given over the long run.
Company monitors sources of brand equity.
(Chitty, Barker, and Shimp 2005)

Dimensions of Branding

Product

Dimensions of Branding

Packaging
Design

Function
Product

Features

Price
Efficacy

Dimensions of Branding

Add-ons
Availability

Guarantees
Packaging
Warrantees

Before/
During/ Price
After
Sales
Service

Design

Function

Delivery

Product
Features
Efficacy
Advice

Finance

Dimensions of Branding
Value
perceptions

Quality
perceptions

Add-ons
Availability

Guarantees

Reputation

Packaging
Warrantees
Brand
name

Design

Function

Delivery

Product

Before/
Price
During/
After
Corporate Sales
Service
image

Features
Efficacy
Advice

Finance
Organisation

Other user recommendations

Whats the difference between...

The benefits of brands to

consumers

Economic
Promote competition
Improve consumer value
Provide consumers with assurance of quality & consistency
Ensure choice for consumers

The benefits of brands to

consumers
Functional
Require and therefore offer consumers
assortments of added values (horizontal
differentiation)
Require and therefore offer consumers choices of
goods at different levels of quality to suit varying
needs and situations (vertical differentiation)
Provide reliability and reassurance

The benefits of brands to

consumers
Psychological
Simplify consumer problem solving and information processing
Help consumers feel good about purchases

Have social benefits for consumers

The benefits of brands to

manufacturers
Strong brands command higher price points and higher margins
Brand loyalty drives repeat business
Strong brands lend credibility to new product introductions
Strong brands embody clear and sustainable points of difference

The benefits of brands to

manufacturers
Strong brands offer internal focus and clarity within organisation
Customers are more likely to forgive one-off mistakes if already have
consistently positive experience with brand
Brand strength attracts and keeps satisfied employees
(Yeshin 2006: 9495)

Whats the thing that unifies these

brands?

and these brands...

Think about

How advertising contributes to successful brands

Advertising builds brands but does not create them
It is an important source, but not the only one, of brand image and
personality
Helps set up brands by introducing them to consumers
Informs consumers of the functional capabilities of the brand

How advertising contributes to

successful brands
Enhances the appeal and increases the value of the brand by
imbuing it with symbolic values and meanings relevant to the
consumer
(Yeshin 2006: 127)

Types of Advertising
Corporate image advertising, sponsorships, and PR, which sell the
corporate brand or master brand, rather than specific brand items
Brand (brand-item) advertising, also called Awareness advertising
Direct-response advertising (telemarketing, direct mail, Web sites,
Direct Response ads in mass media)

Critique

What we have covered

Short history of Branding
What makes a good brand?
Describe the concept of brand equity.
Explain the importance of brand awareness.
What branding means for advertising.

Critique on Branding

Ethics and Advertising

Objectives
Is advertising ethical?
Deceptive and Misleading Advertising
Trademark Protection
Ethical Issues and advertising
Offensive advertising

Just because its not illegal, doesnt mean its ethical

Warning: Some of the images

used in this lecture may be
offensive to some students.

You have been warned.

Advertising & Promotion: Two

Views
Proponents argue that advertising and promotion:
Provides
information

Encourages
a higher standard
of living

Creates jobs and

helps new firms enter a
market

Promotes
competition in
the marketplace
Critics argue that advertising and promotion

Creates needs and

wants among
consumers

Is more propaganda
than information

Promotes materialism,
insecurity and greed

Advertisings Role in
Shaping or Mirroring
Society
Does advertising create a materialistic culture or does it simply
reflect it?
Critics believe that advertising has the power to shape trends and the way
people think
Advertisers believe advertising mirrors values rather than sets them

Advertising can potentially both shape and mirror values

Advertising and Promotion may be seen as

Untruthful or Deceptive
General mistrust of advertising and
among
consumers.
Many
dodo
notnot
perceive
ads
among
consumers.
Many
perceive
asas
honest
or or
believable
ads
honest
believable

Abuses involving sales promotions such as

contests, sweepstakes, premium offers

Unethical and/or deceptive practices

involving mail order, telemarketing and other
forms of direct marketing

Internet scams and abuses

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Misleading and Deceptive

Advertising
False advertising is simply saying or implying something
that is untrue

Such adverts may also be called false representation or

deceptive advertising
Advertisers must be careful how disclaimers and fine print
are presented
Voluntary or government codes of practice are often used to
try to stop false or misleading advertising.
- Vietnams code of practice specifically prohibits
comparative advertising, but in other places it comes in
various shades of acceptability

Misleading and Deceptive

Advertising
Common products for false or misleading claims include:
Beauty products
Diet products
Health products
Organic or homeopathic treatments
Airline ticket prices/travel packages
Breakfast cereals

Infant milk formula

Some Green products

Deceptive Advertising

Puffery
Advertising or other sales presentations which praise the item to be sold with
subjective opinions, superlatives, or exaggerations, vaguely and generally, stating
no specific facts

Bayer
The wonder drug
that works
wonders

Nestle
The very best
chocolate

BMW
The ultimate
driving machine

Snapple Made
from the best
stuff on earth

Trademark and Copyright

Protection
Brands are recognised by their trademark - a symbol,
letter, numeral, device, shape, colour, sound or scent
Trademarks can be protected by law in many
countries and by international Trade Marks Acts.
Copyright protects the original expression of ideas,
not the ideas themselves and gives exclusive rights
for a period of time.
Asian nations are trying to manage breaches to
intellectual property and trademark infringement
under control, but with limited success.

Advertisings Self-Regulation
Self-discipline
Most advertisers and agencies have in-house review
procedures
Every element of a proposed ad should be evaluated by an inhouse committee or lawyers

Industry bodies determine breaches advertising standards and

Code of Ethics of various countries.
Public and Media Review

Consumer groups
Media try to regulate advertising

Ethics in Advertising and

Promotion
Ethics: Moral principles and values that govern the
actions of and individual or group.

Not all issues can be

regulated

A marketing or
promotion action may
be legal but not
considered ethical

Marketers must make

decisions regarding
the appropriateness
of their actions

Ethics in Advertising
Gender Roles
The way women and men are cast as characters in adverts and
programs can create or reinforce gender and/or cultural
stereotypes
The Happy Housewife, the Silly Husband, the Dumb Blonde, the
Macho Man, the Perfect Mother, the Silly Old Man

Racial and Ethnic Stereotypes

Inclusion of certain races and ethnic groups in advertising is rare
Age Discrimination

Two groups subject to stereotyping are baby boomers and

seniors, sometimes portrayed negatively

Ethics in Advertising
Violence
This includes startling images and shock tactics
Sex, Sexuality and Nudity
Advertising that portrays women or men as sex
objects may offend
Targeting Children
This is a most controversial topic with serious issues
such as promoting unhealthy lifestyles in advertising
food and beverages

What if controversial
advertising is used for
an ulimate public
good?

Does the means

justify the ends?

Source: http://www.aides.org

Ethics in Advertising
Language and Vulgarity
This may include swearing, inappropriate
language and blasphemy
Health and Safety

Views are influenced by events in society e.g.

glorification or glamorous looks in men and
women, very thin models, showing muscular
bodies that can only be acquired, in reality, by
the use of steroids

http://www.motherjones.com/
riff/2009/10/ralph-laurenapologizes-sort-its-anorexiaad

Offensive Advertising
Whilst there are no laws or standards that can govern what is
in good taste or poor taste, and what consumers are likely to
find offensive, the advertising industry self-regulation
techniques and ethics does try to limit the number of offensive
advertisements that reach the public but not always. (shock
advertising is sometimes used as a cut through advertising
and/or PR strategy!)

what is offensive to one public may not be offensive to another

cultural or religious differences and personal preferences play
a part

timing of ads relative to other societal events can cause

problems

Starbucks Collapse into cool

ad offended many New Yorkers
who saw it as a parody of the
twin towers collapsing and the
insects as planes etc. Starbucks
defence was that they wanted
to create a whimsical world
with butterflies and dragonflies
to promote their new summer
drink.
http://www.dailies.jmvdigital.com/wpcontent/uploads/2007/03/toocool.jpg

WWF Brasil and DDB Brasil would like to jointly

express their regret for the unfortunate incident
involving the Tsunami ad for World Wildlife Fund
Brasil.
This ad resulted in this public apology from the
agency and the client, and untold damage to the
advertisers brand name, despite being approved
by the client.

Intels white manager

standing over the 6
kneeling or bowing
black workers
immediately created a
furore, with claims of
racism and
insensitivity.

http://www.huffingtonpost.com/jamiecourt/intels-slave-ship-ad-in-i_b_60615.html

The anti violence

campaigners, the violence
and degradation of
women groups, and just
ordinary people
complained vociferously
about just how offensive
this ad is.

Some have suggested

they deliberately
produced this to get more
PR and media coverage
(for free) but is it
ethical?
http://www.examiner.com/x-2092-Sex-ScandalExaminers~y2009m7d2-Burger-King-itll-blow-yourmind-away-sexist-or-silly

Source: http://www.bbc.co.uk/blogs/ni/2009/01/does_the_atheist_ad_breach_the.html

McCann Worldgroup Bangkok get people to use Boots Dermocare where they wouldn't normally bother.
Credits - CCO: Martin Lee. CD: Santi Suwanvalaikorn. Copywriter: Santi Suwanvalaikorn.
Art Director: Naree Leungvititgoon. Source: http://www.campaignbrief.com/asia/2010/02/

Perspectives on Advertising to Children

Consumer Advocates Argue That Children
Are Vulnerable to Advertising Because:

They lack the knowledge

and
skills to critically evaluate
advertising claims

They cannot differentiate

between programs and
commercials

While Marketers Argue That:

Children must learn
through the socialization
process

Need to acquire skills

needed
to function in the
marketplace

Some examples of Companies

sneaking around advertising laws

What we have covered

Is advertising ethical?
Deceptive and Misleading Advertising
Trademark Protection
Ethical Issues and advertising
Offensive advertising
Just because its not illegal, doesnt mean its ethical