Chap 6, integrated marketing communications to build brand equity
..6.2Overview• Marketing communications are the means bywhich firms attempt to inform, persuade, andremind consumers—directly or indirectly—about the brands they sell.
..6.3The New Media Environment• Traditional advertising media such as TV,radio, magazines, and newspapers seem to belosing their grip on consumers.• Marketers pour $18 billion into Internetadvertising in 2005. While Web advertisingjumped 20% during this time, spending for TVads remained flat.
..6.4Simple Test forMarketing CommunicationsCurrentBrandKnowledgeDesiredBrandKnowledge
..6.6Marketing Communications Options• Advertising• Promotions• Event marketing and sponsorship• Public relations and publicity• Personal selling
..6.7Advertising• A powerful means of creating strong,favorable, and unique brand associations andeliciting positive judgments and feelings• Controversial because its specific effects areoften difficult to quantify and predict• Nevertheless, a number of studies using verydifferent approaches have shown thepotential power of advertising on brand sales.
..6.8Ideal Ad CampaignThe ideal ad campaign would ensure that:1. The right consumer is exposed to the right message at the right placeand at the right time.2. The creative strategy for the advertising causes the consumer to noticeand attend to the ad but does not distract from the intended message.3. The ad properly reflects the consumer’s level of understanding aboutthe product and the brand.4. The ad correctly positions the brand in terms of desirable anddeliverable points-of-difference and points-of-parity.5. The ad motivates consumers to consider purchase of the brand.6. The ad creates strong brand associations to all of these storedcommunication effects so that they can have an effect when consumersare considering making a purchase.
..6.9Category of Advertising• Television• Radio• Print• Direct response• Interactive: websites, online ads• Mobile marketing• Place advertising:– Billboards; movies, airlines, and lounges; productplacement; and point-of-purchase advertising
..6.10Promotions• Short-term incentives to encourage trial or usage of aproduct or service• Marketers can target sales promotions at either thetrade or end consumers• Consumer promotions– Consumer promotions are designed to change the choices,quantity, or timing of consumers’ product purchases.• Trade promotions– Trade promotions are often financial incentives ordiscounts given to retailers, distributors, and othermembers of the trade to stock, display, and in other waysfacilitate the sale of a product.
..6.11Event Marketing and Sponsorship• Event marketing is public sponsorship ofevents or activities related to sports, art,entertainment, or social causes.• Event sponsorship provides a different kindof communication option for marketers. Bybecoming part of a special and personallyrelevant moment in consumers’ lives,sponsors can broaden and deepen theirrelationship with their target market.
..6.12Public Relations and Publicity• Public relations and publicity relate to avariety of programs and are designed topromote or protect a company’s image or itsindividual products.• Buzz Marketing– Occasionally, a product enters the market withlittle fanfare yet is still able to attract a strongcustomer base.
..6.13Personal Selling• Personal selling is face-to-face interaction with oneor more prospective purchasers for the purpose ofmaking sales• The keys to better selling– Rethink training– Get everyone involved– Inspire from the top– Change the motivation– Forge electronic links– Talk to your customers
..6.14Integrated Marketing Communications (IMC)• The “voice” of the brand• A means by which it can establish a dialogueand build relationships with consumers• Allow marketers to inform, persuade, provideincentives, and remind consumers directly orindirectly• Can contribute to brand equity by establishingthe brand in memory and linking strong,favorable, and unique associations to it
..6.15Developing IMC Programs• Mixing communication options– Evaluate all possible communication optionsavailable to create knowledge structures accordingto effectiveness criteria as well as costconsiderations.– Different communication options have differentstrengths and can accomplish different objectives.– Determine the optimal mix
..6.16Evaluating IMC Programs• Coverage: What proportion of the targetaudience is reached by each communicationoption employed? How much overlap existsamong options?• Cost: What is the per capita expense?
..6.17CommunicationOption ACommunication Option CCommunicationOption BIMC 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.)• Contribution: The collective effect on brandequity in terms of– enhancing depth and breadth of awareness– improving strength, favorability, and uniqueness ofbrand associations• Commonality: The extent to which informationconveyed by different communication optionsshare meaning
..6.19Evaluating IMC Programs (cont.)• Complementarity: The extent to which differentassociations and linkages are emphasizedacross communication options• Versatility: The extent to which informationcontained in a communication option workswith different types of consumers• Different communications history• Different market segments
..6.20Marketing Communication Guidelines• Be analytical: Use frameworks of consumerbehavior and managerial decision making todevelop well-reasoned communication programs• Be curious: Fully understand consumers by usingall forms of research and always be thinking ofhow you can create added value for consumers• Be single-minded: Focus message on well-defined target markets (less can be more)• Be integrative: Reinforce your message throughconsistency and cuing across all communications
..6.21Marketing Communication Guidelines (Cont.)• Be creative: State your message in a unique fashion;use alternative promotions and media to createfavorable, strong, and unique brand associations• Be observant: Monitor competition, customers,channel members, and employees through trackingstudies• Be realistic: Understand the complexities involvedin marketing communications• Be patient: Take a long-term view of communi-cation effectiveness to build and manage brandequity
..6.22Marketing Communication Guidelines (Cont.)• Be creative: State your message in a unique fashion;use alternative promotions and media to createfavorable, strong, and unique brand associations• Be observant: Monitor competition, customers,channel members, and employees through trackingstudies• Be realistic: Understand the complexities involvedin marketing communications• Be patient: Take a long-term view of communi-cation effectiveness to build and manage brandequity