John Pribble III -- Strategic marketing, branding and design management

Meanings of Design
Design has many meanings and perspectives. Design is primarily a communication process; its purpose is to convey information about a product or an organization to consumers or clients. This section will investigate the "how" and "what" of design for marketing. Design is used to describe premium products, designer jeans and designer furniture. The products of some countries are characterized by their design, as in Swiss watches, Italian cars or German cameras.

David Brown, (1990) president of Art Center College of Design, describes designing,

"Everywhere we look we see the work of designers. Their hands shape the products we buy, use, and value. Their sensibilities guide the look and content of the visual communication that surrounds us. We live and work in spaces they create. Their ideas change our ideas about the world and our place in it. Design is the intersection between commerce and culture, between the individual and the environment. At its best, design embodies respect between maker and materials, between maker and eventual user. Designing is more than a job or even a career, although our rapidly changing, increasingly international economy offers plenty of opportunity. Rather, designing is a commitment and, ultimately, a way of life. (p. 5)

When marketers use the word "design," they usually refer to advertising, point-of-
purchase materials, packaging labels, and annual reports. This is a limited view of
design's scope. Design is a comprehensive term that covers the disciplines of designing products, packaging, interiors, graphics, publications and fashion, to name the most recognized fields (Wefler & Associates, 1980). The fields of architecture and industrial design should be included in this list. Industrial design historian Stephen Bayley (1985) says design encompasses "a wide range of activities, from materials technology at the hard end to styling and marketing at the soft one" (Bayley, 1985, p. 8). Philip Kotler and Alexander Rath (1984) describe the difference between functional and visual design as the difference between the design of a nuclear power plant and the design of wallpaper.

Peter Gorb (1978), director of the Institute of Small Business at the London Business School, defines design as "a plan to make something" (p. 7). He expands on this by saying, "The designer's concern with information is to present it efficiently; to simplify the complex, to suggest the subtleties behind the obvious, to enlarge the "micro" and reduce the "macro." Furthermore, the work stretches along a spectrum which at one end may be concerned with objective descriptions of the technology of products and environments and at the other with the highly emotive and persuasive, the advertising and sales promotion of these products and environments. (pp. 8 - 9)

Design describes the planning and decision-making process to determine the functions and characteristics of a product. Ralph Caplan, former editor of Industrial Design magazine and director of the International Design Conference in Aspen, says, "Design is at its best a process of making things right. That is, the designer at his best, or hers, makes things that work. But things often do not work. And making things right is not just a generative but a corrective process - a way of righting things, of straightening them out. (Caplan, 1982a, p. 11)

In the context of design as communication, it is important to understand how design conveys meaning to the consumer. Design aligns a product or organization with that of a consumer's self-image or expectations. The meaning of design is interpreted by the consumer according to his or her attitudes, personal experiences and preferences. That a single product is preferred by two or more diverse individuals or groups of people does not necessarily indicate that they like it for the same reasons. Mass media critic Tony Schwartz (1974), in talking about the effects of television and radio on consumers, wrote (note interesting choice of metaphors in first sentence),

"The critical task is to design our package of stimuli so that it resonates with information already stored within an individual and thereby induces the desired learning or behavioral effect. Resonance takes place when the stimuli put into our communication evoke meaning in a listener or viewer. That which we put into the communication has no meaning in itself. The meaning of our communication is what a listener or viewer [or in the case of design, the consumer] gets out of his experience with the communicator's stimuli. The listener's or viewer's brain is an indispensable component of the total communication system. His life experiences, as well as his expectations of the stimuli he is receiving, interact with the communicator's output in determining the meaning of the communication.... To achieve a behavioral effect, whether persuading someone to buy a product or teaching a person about history, one designs stimuli that will resonate with the elements in a communication environment to produce that effect." (pp. 24 - 26, parentheses added)

Positioning is the marketing adaptation of Schwartz's communications theory.
Positioning is a long-term strategic effort by a company to own a "place" in the prospect's mind "Share of mind" is more important to marketers in the long-run than "share of market." Most importantly, this information comes from the consumer, not the marketing manager (Trout & Ries, 1972).

Brigitte Borja de Mozota (1990), a professor at the Universite Rene Descartes in France, makes the distinction between design as a technique that can be used in a communications strategy (graphic and environmental design) and design used in a product development strategy (packaging and product design). "Whatever the final output," she says, "design as an innovation technique is always a problem solving activity" (Borja de Mozota, 1990, p. 73).

While her conclusion is generally agreeable, it could be argued that packaging and product design are communications devices as well as strategic new product development tools. In her explanation of the relationship between design and company profits, Borja de Mozota (1990) touches on the signification and semantic meaning of design in a typical French linguistic criticism fashion:

Innovations produced by designers are signs. A sign is the resultant of a three-dimensional system and of the complex set of relationships between the attributes of each dimension: structure, function, and symbol. All signs or innovations have a three-level communication system:
1 The innovation-itself system means our communication with the structure of the sign, its technological dimension and its syntax.
2 The innovation-user system means our communication with the structure of the sign, its pragmatic dimension and its utility.
3 The innovation-environment system means our communication with the symbolism of the sign, its semantic dimension and the connotative and denotative factors it conveys about our relationship with others.

Hence, if all innovations are signs in their visual, physical aspects, any other environment artifact is also a sign. And the environment is a system of signs with bilateral influence on any new sign or innovation produced.

Design, in order to be considered as an efficient management of innovation technique, has to create value. The signs (graphics or products) conceived by designers have to be profitable. Therefore, we can define the "sign value" concept as the equation of design technique efficiency. This concept explains how design efficiency can be measured. It also explains why design is part of marketing. Design and marketing are both concerned with the exchange relationships between a company and its environment. (pp. 73-74)

Much of the behavioral research done in advertising and visual communication
may be applicable to design studies and leaves much room for future work by design researchers. In the attitude literature, studies have shown attitudes may be influenced by message arguments - central route, or by contextual cues - peripheral route (Petty & Cacioppo, 1981); that attitudes toward the advertisement affect attitudes toward the brand (Gardner, 1985; Mitchell & Olson, 1981; Shimp, 1981); that both ad claims and pictorial elements of an ad influence attitudes toward both the ad and the brand (Miniard, Bhatla & Rose, 1990; Mitchell, 1986); that consumers' brand attitude formation for a novel or unconventional product may depend more on consumers' liking of the advertisement than on brand-related beliefs (Cox & Locander, 1987); that feelings affect attitude toward the ad and attitude toward the brand (Burke & Edell, 1989); that consumer processing of advertising is basically cognitive, rational processing of information (Shimp & Gresham, 1983); that non-cognitive (peripheral) processing of information is equally important to cognitive (central) processing (Thorson, 1983); and that hemispherical lateralization is a subconscious determinant of consumers' processing of information (Janiszewski, 1990). Visuals, because they rely on symbols rather than words for message effectiveness, have potential to communicate cross-culturally through shared meanings (Moriarty, in press) and visual elements of advertisements should be classified as rhetorical as well as verbal elements, and not as merely peripheral cues (Scott, 1990). If the preceding studies, of which only a few of the many in these areas are mentioned, included design (whether product, environmental or corporate identity - in addition to information - advertising), it may be deduced that attitudes toward products or product design would affect attitudes toward brands or companies, that liking of product design would affect attitudes toward the brand and company, et cetera. In other words, similar results might be found; however, this would need to be substantiated with empirical evidence.

Philip Kotler and Alexander Rath (1984) provide the best definition of design as a strategic marketing weapon. ''Design is the process of seeking to optimize consumer satisfaction and company profitability through the creative use of major design elements (performance, quality, durability, appearance, and cost) in connection with products, environments, information, and corporate identity" (Kotler & Rath, 1984, p. 17).

Design's value as a marketing tool is best understood by breaking it down into its major elements as described by Kotler and Rath (1984). The performance aspect is where designers gather information from market research to determine and understand the wants and needs of the target market. Designers are often credited with developing features that augment the product in ways that may never have occurred to the consumer. John Swans and Linda Jones Combs (1976) have identified two types of performance characteristics, instrumental performance and expressive performance. Instrumental performance is the utilitarian expectations consumers have for a product. Does the product serve its intended purpose well and satisfy consumer need? Expressive performance is the psychological level of performance. Does the product create and arouse consumer need? Design's performance role is not limited to products. Consumers can be satisfied or dissatisfied with the instructions for assembling or using a product (information design), a store layout (environment design), or with a company's ability to live up to or surpass expectations promised by its corporate identity. Swan and Combs (1976) found that, "In judging the performance of a product, the consumer compares a set of performance outcomes to the outcomes that were expected for the item. If the performance of the physical product was below expectations, then the product is likely to be categorized as dissatisfactory. If both instrumental and expressive outcomes were equal to or exceeded expectations, then the consumer will tend to judge the product as satisfactory." (p. 33)

The purpose of using design is to ascertain the desired level of performance in a
product and communicate appropriate levels of expectations to the consumer. Thus, high-quality design is just as important in a generic item as in a premium positioned item because it communicates to the consumer exactly what it is that they are buying and what their expectations should be for the performance of the product.

Quality is the second component of design, and perhaps the most important in terms of providing benefits to consumers (For a more in-depth discussion of quality and marketing strategy, please see: Gitlow & Gitlow, 1987; Jacoby & Olson, 1985; Townsend & Gebhardt, 1990). The role of the designer is to determine the optimal level of quality in materials and workmanship that is appropriate for the target market's performance expectations and price range. John Czepiel distinguishes perceived quality from other definitions to mean that "the basic product design - the combination of technical features, aesthetics, and symbolic qualities - is a better fit to the customer's desires for benefits than others' products" (Czepiel, 1992, p. 1(0).

Products should be designed to reflect consumer's desires and tastes - so marketing people, designers and manufacturing must work closely through the whole marketing process; from developing the product idea through production and distribution and finally through research to determine consumers' satisfaction, which is input back into the product development process (Hauser & Gausing, 1988). Design plays a critical role in this cyclical process referred to as "continuous-improvement" (Gitlow & Gitlow, 1987). Urban and Star (1991) describe design as an integral part of "total quality":

Total quality includes the design of the product and customer service. The quality concept begins with design, carries through production, distribution, and service, and ends in total customer satisfaction. In product positioning for quality we must understand how engineering decisions are linked to feature creation; how features are related to the perceptions, preferences, and choices of customers; and how costs, prices and profits are affected by engineering (and design) decisions. The best quality level is the one that meets the needs of customers, can be produced defect free, and earns profits for the firm. Quality is an integral part of creating benefits and positioning a product in a target market segment (p. 141)

Jerry Bowles and Joshua Hammond (1991) credit the concept of quality for the
success of Japanese companies. They say that the Japanese developed a new marketing paradigm where winning organizations were defined by their practices of listening to the customer, designing products that met or exceeded their best expectations, and continuously improving all the organizational processes that lead to customer satisfaction. In reaction to losing markets to higher quality foreign products, many marketing managers in the U.S. are making adjustments in product designs, manufacturing techniques and marketing strategies (Jacobson & Aaker, 1987).

Durability is another component of product quality and is directly related to a product's performance and quality characteristics. Product appearance is a primary form of differentiating and segmenting by appealing to a specific group of consumers. Style is a form of visual durability related to appearance. But, "Design is much more than style. Some well-styled products fail to satisfy the owners because they are deficient in performance characteristics" (Kotler & Rath, 1984, p. 18). Finally, designers are responsible for ensuring that the product is produced and made available within the target market's cost range.

Design is a complex process with many perspectives and plays a major role in determining and providing consumer satisfaction. The most important perspective to a marketer is the advantage of using design to convey information about a company or product to a consumer and the marketing environment to facilitate exchange.

Design and the Marketing Concept
Design is the visual expression of the marketing concept. Designers determine, through research, what it is that the target market wants and translates that back into products, environments, information or corporate identity for the consumers' benefit, using the elements of performance, quality, durability, appearance and cost. This section will investigate the ''why'' of design for marketing.

Designers by nature are concerned with the basic properties of the raw materials in a product, not for what they are but rather for what they might become in terms of satisfying human needs. Design is the outward expression of the manufacturer's regard for both the products it makes as well as for the consumer. Good design is an expression of considerateness on behalf of the organization to the consumer (Dichter, 1975).

Levitt (1975), says "A company must learn to think of itself not as producing goods and services but as buying, creating, and satisfying customers. This approach should permeate every nook and cranny of the organization; if it doesn't, no amount of efficiency in operations can compensate for the lack. (pp. 176) One marketing text describes the marketing concept as the coordinated activities that allow a corporation to achieve its goals and objectives while at the same time satisfying consumers' wants and needs. "Customer satisfaction is the major aim of the marketing concept" (Pride & Ferrell, 1983, p.14). Philip Kotler (1991) describes the marketing concept as "the key to achieving organizational goals by determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than others" (p. 16).

Consumers prefer to do business with a company that genuinely cares about them.
Tom Peters and Robert Waterman (1982), in their book In Search of Excellence, noted that many companies talk a lot about how important customers are, but actually think of them as a "bloody nuisance" (p. 156) and treat them accordingly. Design is the visual expression of the marketing concept, one that should be well managed and coordinated to allow a corporation to achieve its goals. Design is a subtle, genuine expression of caring for the consumer and is absolutely essential to their satisfaction because it customizes information to suit their needs. As we know, actions speak louder than words.

Design and the Marketing Mix
Design is a powerful tool that should be used in every area of an organization's operations to provide a strategic competitive advantage and achieve corporate objectives. Design can provide consumer satisfaction and enhance corporate performance in each component of the marketing mix and the marketing environment The primary advantage of high-quality design is providing information to, and communicating with, consumers, whether through the product, marketing communications, environments, or corporate identity. This section will examine the "when" and "where" of design and marketing.

Communication with the consumer is the essence of the marketing concept Information is the foundation of product utility. Economist, entrepreneur and writer Paul Hawken in his book The Next Economy (1983), describes the importance of the information-to-mass ratio of products. He says, "When we examine a product, it conveys to us something of the knowledge of the producer, through the cut of the garment, the design of the tool, the comfort and solidity of a chair.... The marketplace is where goods are exchanged, and the mechanism behind this transaction is the exchange of information, through both speech and observation. An item's price is an important part of the information in a product, and it is set between the buyer and seller. But most of the information is embodied in the product itself - in its quality, design, utility, and workmanship.... the application of the knowledge of how best to make or accomplish something." (pp. 74 - 76)

Coyne (1992) expands on Hawken's point by saying that, "Since information is replacing raw material as the most important element in the products and services we buy today.... Manufacturers are reevaluating policies ... that competitive advantage belongs to those who can make products at the lowest cost. Today, customers want quality and the designer is in the position of helping business by acting as the ultimate consumer advocate." (p. 18)

Marketing objectives are what a company wants to achieve, the goals of the
organization. Marketing strategy is a company's plan for how it will go about achieving its marketing objectives. The marketing mix represents the tools that a marketer works with, enabling an organization to strategically achieve its goals (Kotler, 1991, chap. 3, pp. 62- 80).

The marketing mix is made up of four "controllable" components that surround the consumer in a marketing-oriented firm: product, price, place and promotion. These components interact with the marketing environment: political, legal, regulatory, societal, economic and technological forces over which the marketer has little or no control (Pride & Ferrell, 1983).

The marketing mix and the marketing environment are affected positively by implementation of design as a positioning and differentiating strategy. Michael Lawless and Robert Fisher (1990) provide a framework that incorporates seven components affecting strategic decisions for competitive advantage: product form, product function, product intangibles, pricing, promotion, distribution, and firm characteristics. These components are design-driven or design related, and each has potential to influence consumer perceptions. This section will examine each of these decision components and how they are affected by design.

The product component is all of the physical characteristics of new product design. Lawless and Fisher divide the product component into function and form characteristics, indicating that, from a managerial perspective, they represent different investment approaches. Functional characteristics are physical attributes that influence a product's performance. Form characteristics relate to design aesthetics such as color, styling, size and shape. Essential product tangibles used for differentiation are features, quality (reliability and performance-related attributes), and styling (Lawless & Fisher, 1990). Joseph Alba and Wesley Hutchinson (1987) have shown that "inexperienced" consumers often use outward form to create opinions about a product's performance.

Citing the old industrial design adage from the Bauhaus school (which is still practiced and preached vigorously and successfully by designers such as Dieter Rams, chief product designer for Braun), "form follows function," Lawless and Fisher (1990) indicate the impact on the consumer is greatest when good form is accompanied by good function.

Product intangibles are the non-physical characteristics of a product and affect consumers' perception of the total offering (Lawless & Fisher, 1990). Product intangibles are also an important form of innovation (Levitt, 1981). Levitt (1980) describes the difference between product tangibles and intangibles. An automobile is not simply a machine for movement visibly or measurably differentiated by design, size, color, options, horsepower, or miles per gallon. It is also a complex symbol denoting status, taste, rank, achievement, aspiration, and being 'smart,' - that is, buying fuel economy rather than display. (p. 84)

Levitt (1980) adds, "Differentiation is not limited to giving the customer what he expects. What he expects may be augmented by things he has never thought about" (p. 87).

Brand image and packaging are considered product or promotion variables.
Graphic and industrial designers' job is to make sure that the product's promise of satisfaction is safely and effectively carried through shipping and handling, onto retailers' shelves and into consumers' homes, and into recycling bins instead of landfills. Graphic designers communicate information about a company or its products in the promotion variable of the marketing mix, which may include advertising, point-of-purchase displays, packaging labels, annual reports and corporate identity. A well communicated image should help establish a company's character and position, insulate the company from competition and enhance market performance. This potential impact of design on a company's performance underscores the importance of managing the image over time. A corporate identity or brand image should be viewed as a long-term investment (Park, Jaworski & McInnis, 1986). This is contrary to the market-share mentality that often dominates marketer's thinking.

Since design plays a major role in communicating brand image, it follows that design should be managed as a strategic competitive tool as well. Roger Blackwell (1987), a marketing professor at The Ohio State University, explains design's role in marketing communications: "All aspects of an organization's activities are focused upon satisfying the customer in a marketing-oriented firm. The same applies to the communications to those consumers. Thus, product design is seen as part of the communications program, as is package design, the decoration of the truck fleet, the uniforms worn by employees, the corporate logo, and the annual report." (p. 247)

Architects, retail planners and interior designers impact the place variable of the
marketing mix with attractive, productive, safe and comfortable office, warehouse and retail environments for employees and consumers. Finally, price is determined by the perceived value (innate qualities) of the product and its appropriateness for its intended purpose. A company may either be able to charge more for a product because of its appearance and functional qualities or it may be able to compete at a strategically low price because of enhancements or efficiencies gained in manufacturing through good industrial design.

Design gives companies a competitive advantage in the marketing environment It communicates a company's position regarding political, legal and regulatory forces and is dynamic in response to issues regarding economic, technological and societal forces that confront organizations. Although marketing environment variables may be uncontrollable, design is a tool with which to anticipate and respond to consumer's needs.

Design communicates information about a company or its products through all parts of the marketing mix and marketing environment to provide consumer satisfaction and enable corporations to achieve their objectives. As an essential part of the marketing mix, design should be managed in much the same way as other marketing mix elements.

Ch II Literature review pt b