6.1CHAPTER 6:CHAPTER 6:INTEGRATING MARKETINGINTEGRATING MARKETINGCOMMUNICATIONS TO BUILD BRAND EQUITYCOMMUNICATIONS TO BUILD BRAND EQUITYKevin Lane KellerKevin Lane KellerTuck School of BusinessTuck School of BusinessDartmouth CollegeDartmouth College
6.2OverviewOverview Marketing communicationsMarketing communications are the means by whichare the means by whichfirms attempt to inform, persuade, and remindfirms attempt to inform, persuade, and remindconsumers—directly or indirectly—about theconsumers—directly or indirectly—about thebrands they sell.brands they sell.
6.3The New Media EnvironmentThe New Media Environment Traditional advertising media such as TV, radio,Traditional advertising media such as TV, radio,magazines, and newspapers seem to be losingmagazines, and newspapers seem to be losingtheir grip on consumers.their grip on consumers. Marketers pour $18 billion into InternetMarketers pour $18 billion into Internetadvertising in 2005. While Web advertisingadvertising in 2005. While Web advertisingjumped 20% during this time, spending for TVjumped 20% during this time, spending for TVads remained flat.ads remained flat.
6.4Simple Test forSimple Test forMarketing CommunicationsMarketing CommunicationsCurrentCurrentBrandBrandKnowledgeKnowledgeDesiredDesiredBrandBrandKnowledgeKnowledge
6.5Information Processing Model ofInformation Processing Model ofCommunicationsCommunications1.1. ExposureExposure2.2. AttentionAttention3.3. ComprehensionComprehension4.4. YieldingYielding5.5. IntentionsIntentions6.6. BehaviorBehavior
6.6Marketing Communications OptionsMarketing Communications Options AdvertisingAdvertising PromotionsPromotions Event marketing and sponsorshipEvent marketing and sponsorship Public relations and publicityPublic relations and publicity Personal sellingPersonal selling
6.7AdvertisingAdvertising A powerful means of creating strong, favorable,A powerful means of creating strong, favorable,and unique brand associations and elicitingand unique brand associations and elicitingpositive judgments and feelingspositive judgments and feelings Controversial because its specific effects areControversial because its specific effects areoften difficult to quantify and predictoften difficult to quantify and predict Nevertheless, a number of studies using veryNevertheless, a number of studies using verydifferent approaches have shown the potentialdifferent approaches have shown the potentialpower of advertising on brand sales.power of advertising on brand sales.
6.8Ideal Ad CampaignIdeal Ad CampaignThe ideal ad campaign would ensure that:The ideal ad campaign would ensure that:1.1. The right consumer is exposed to the right message at the right place andThe right consumer is exposed to the right message at the right place andat the right time.at the right time.2.2. The creative strategy for the advertising causes the consumer to notice andThe creative strategy for the advertising causes the consumer to notice andattend to the ad but does not distract from the intended message.attend to the ad but does not distract from the intended message.3.3. The ad properly reflects the consumer’s level of understanding about theThe ad properly reflects the consumer’s level of understanding about theproduct and the brand.product and the brand.4.4. The ad correctly positions the brand in terms of desirable and deliverableThe ad correctly positions the brand in terms of desirable and deliverablepoints-of-difference and points-of-parity.points-of-difference and points-of-parity.5.5. The ad motivates consumers to consider purchase of the brand.The ad motivates consumers to consider purchase of the brand.6.6. The ad creates strong brand associations to all of these storedThe ad creates strong brand associations to all of these storedcommunication effects so that they can have an effect when consumers arecommunication effects so that they can have an effect when consumers areconsidering making a purchase.considering making a purchase.
6.9Category of AdvertisingCategory of Advertising TelevisionTelevision RadioRadio PrintPrint Direct responseDirect response Interactive: websites, online adsInteractive: websites, online ads Mobile marketingMobile marketing Place advertising:Place advertising: Billboards; movies, airlines, and lounges; product placement;Billboards; movies, airlines, and lounges; product placement;and point-of-purchase advertisingand point-of-purchase advertising
6.10PromotionsPromotions Short-term incentives to encourage trial or usage of aShort-term incentives to encourage trial or usage of aproduct or serviceproduct or service Marketers can target sales promotions at either theMarketers can target sales promotions at either thetrade or end consumerstrade or end consumers Consumer promotionsConsumer promotions Consumer promotions are designed to change the choices,Consumer promotions are designed to change the choices,quantity, or timing of consumers’ product purchases.quantity, or timing of consumers’ product purchases. Trade promotionsTrade promotions Trade promotions are often financial incentives or discountsTrade promotions are often financial incentives or discountsgiven to retailers, distributors, and other members of thegiven to retailers, distributors, and other members of thetrade to stock, display, and in other ways facilitate the sale oftrade to stock, display, and in other ways facilitate the sale ofa product.a product.
6.11Event Marketing and SponsorshipEvent Marketing and Sponsorship Event marketingEvent marketing is public sponsorship of eventsis public sponsorship of eventsor activities related to sports, art, entertainment,or activities related to sports, art, entertainment,or social causes.or social causes. Event sponsorship provides a different kind ofEvent sponsorship provides a different kind ofcommunication option for marketers. Bycommunication option for marketers. Bybecoming part of a special and personallybecoming part of a special and personallyrelevant moment in consumers’ lives, sponsorsrelevant moment in consumers’ lives, sponsorscan broaden and deepen their relationship withcan broaden and deepen their relationship withtheir target market.their target market.
6.12Public Relations and PublicityPublic Relations and Publicity Public relationsPublic relations andand publicitypublicity relate to a variety ofrelate to a variety ofprograms and are designed to promote orprograms and are designed to promote orprotect a company’s image or its individualprotect a company’s image or its individualproducts.products. Buzz MarketingBuzz Marketing Occasionally, a product enters the market with littleOccasionally, a product enters the market with littlefanfare yet is still able to attract a strong customerfanfare yet is still able to attract a strong customerbase.base.
6.13Personal SellingPersonal Selling Personal sellingPersonal selling is face-to-face interaction with one oris face-to-face interaction with one ormore prospective purchasers for the purpose of makingmore prospective purchasers for the purpose of makingsalessales The keys to better sellingThe keys to better selling Rethink trainingRethink training Get everyone involvedGet everyone involved Inspire from the topInspire from the top Change the motivationChange the motivation Forge electronic linksForge electronic links Talk to your customersTalk to your customers
6.14Integrated Marketing CommunicationsIntegrated Marketing Communications(IMC)(IMC) The “voice” of the brandThe “voice” of the brand A means by which it can establish a dialogue andA means by which it can establish a dialogue andbuild relationships with consumersbuild relationships with consumers Allow marketers to inform, persuade, provideAllow marketers to inform, persuade, provideincentives, and remind consumers directly orincentives, and remind consumers directly orindirectlyindirectly Can contribute to brand equity by establishingCan contribute to brand equity by establishingthe brand in memory and linking strong,the brand in memory and linking strong,favorable, and unique associations to itfavorable, and unique associations to it
6.15Developing IMC ProgramsDeveloping IMC Programs Mixing communication optionsMixing communication options EvaluateEvaluate allall possible communication optionspossible communication optionsavailable to create knowledge structures accordingavailable to create knowledge structures accordingto effectiveness criteria as well as cost considerations.to effectiveness criteria as well as cost considerations. Different communication options have differentDifferent communication options have differentstrengths and can accomplish different objectives.strengths and can accomplish different objectives. Determine the optimal mixDetermine the optimal mix
6.16Evaluating IMC ProgramsEvaluating IMC Programs Coverage:Coverage: What proportion of the target audienceWhat proportion of the target audienceis reached by each communication optionis reached by each communication optionemployed? How much overlap exists amongemployed? How much overlap exists amongoptions?options? Cost:Cost: What is the per capita expense?What is the per capita expense?
6.17CommunicationOption ACommunication Option CCommunicationOption BAudienceIMC Audience Communication Option OverlapNote: Circles represent the market segments reached by various communication options.Shaded portions represent areas of overlap in communication options.
6.18Evaluating IMC Programs (cont.)Evaluating IMC Programs (cont.) Contribution:Contribution: The collective effect on brand equityThe collective effect on brand equityin terms ofin terms of enhancing depth and breadth of awarenessenhancing depth and breadth of awareness improving strength, favorability, and uniqueness ofimproving strength, favorability, and uniqueness ofbrand associationsbrand associations Commonality:Commonality: The extent to which informationThe extent to which informationconveyed by different communication optionsconveyed by different communication optionsshare meaningshare meaning
6.19Evaluating IMC Programs (cont.)Evaluating IMC Programs (cont.) Complementarity:Complementarity: The extent to which differentThe extent to which differentassociations and linkages are emphasized acrossassociations and linkages are emphasized acrosscommunication optionscommunication options Versatility:Versatility: The extent to which informationThe extent to which informationcontained in a communication option workscontained in a communication option workswith different types of consumerswith different types of consumers Different communications historyDifferent communications history Different market segmentsDifferent market segments
6.20Marketing Communication GuidelinesMarketing Communication Guidelines Be analytical:Be analytical: Use frameworks of consumerUse frameworks of consumerbehavior and managerial decision making tobehavior and managerial decision making todevelop well-reasoned communication programsdevelop well-reasoned communication programs Be curious:Be curious: Fully understand consumers by usingFully understand consumers by usingall forms of research and always be thinking ofall forms of research and always be thinking ofhow you can create added value for consumershow you can create added value for consumers Be single-minded:Be single-minded: Focus message on well-definedFocus message on well-definedtarget markets (less can be more)target markets (less can be more) Be integrative:Be integrative: Reinforce your message throughReinforce your message throughconsistency and cuing across all communicationsconsistency and cuing across all communications
6.21Marketing Communication GuidelinesMarketing Communication Guidelines(Cont.)(Cont.) Be creative:Be creative: State your message in a unique fashion;State your message in a unique fashion;use alternative promotions and media to createuse alternative promotions and media to createfavorable, strong, and unique brand associationsfavorable, strong, and unique brand associations Be observant:Be observant: Monitor competition, customers,Monitor competition, customers,channel members, and employees through trackingchannel members, and employees through trackingstudiesstudies Be realistic:Be realistic: Understand the complexities involvedUnderstand the complexities involvedin marketing communicationsin marketing communications Be patient:Be patient: Take a long-term view of communi-Take a long-term view of communi-cation effectiveness to build and manage brandcation effectiveness to build and manage brandequityequity