Halo (marketing)

The word halo (as used in Marketing), primarily describes a spillover effect. This can refer to concurrent effects on other products or future benefits to the same product.

Benefits to other products

Marketing activity can radiate benefits to a brand / product other than that where the activity is directly targeted. It may not always be intentional.

Coca-Cola is an example of a company that is extremely adept at using this benefit. Since changes to the "real" Coca Cola are not possible, periodic new flavors are introduced (for example, Cherry Coke in 1985 , Vanilla Coke in 2003 and Coke with Lime in 2005 ). Coca-Cola as a brand remains innovative and relevant.

Halo for specific product attribute

With its full range of detergents and fabric softeners, Robijn also has a unique position, often using halo. Focusing on one particular flavor variant in marketing terms, the effect is achieved that consumers associate the entire Robin Series with attractive fragrances.

Present benefits to the same product

Television and Print advertising have been shown to reinforce one another. One well known example is where a coupon redemptions increase.[1]

Future benefits to the same product

The 1966 version of a textbook and a software package named "The Marketing Game" calculated the remaining monetary value of the spillover effect when a product's marketing budget was reduced. This is separate from, for example, the value of the name Coke to Diet Coke.[2]

The program labeled this value "halo effect."

Halo effect as it applies above

Subsequent usage[3] has extended the term halo effect to also include the effect on the secondary target(s). Companies with large product portfolios use it to give their brand a specific image. By introducing a new variant of an existing product, the existing product can also get associations with innovative. This can be very effective if direct modifications to the basic product are found to be risky.

A published 2012 study[4] included this additional usage as "Lastly, there are halo effects; for instance, spend on TV was found to be influencing response in other channels."

References

  1. ↑ Article, Ad Age
  2. ↑ The textbook has been revised more than once, and the mainframe program from 1966 is now a PC program
  3. ↑ http://ssbea.mercer.edu/coleman/baa605/PPT/Class1%20Marketing%20Game%20jec%200106.ppt
  4. ↑ Rowson, Paul; Thompson, Howard; Berry, Julian (30 Apr 2012). "Using a decision support optimisation software tool to maximise returns from an overall marketing budget" (PDF). Journal of Database Marketing & Customer Strategy Management. No. Vol. 19, 2. Macmillan Publishing. pp. 138–142. Retrieved 2017-07-31.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.