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6.1
CHAPTER 6:CHAPTER 6:
INTEGRATING MARKETINGINTEGRATING MARKETING
COMMUNICATIONS TO BUILD BRAND EQUITYCOMMUNICATIONS TO BUILD BRAND EQUITY
6.2
OverviewOverview
 Marketing communicationsMarketing communications are the means by whichare the means by which
firms attempt to inform, persuade, and remindfirms attempt to inform, persuade, and remind
consumers—directly or indirectly—about theconsumers—directly or indirectly—about the
brands they sell.brands they sell.
6.3
The 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 losing
their grip on consumers.their grip on consumers.
 Marketers pour $18 billion into InternetMarketers pour $18 billion into Internet
advertising in 2005. While Web advertisingadvertising in 2005. While Web advertising
jumped 20% during this time, spending for TVjumped 20% during this time, spending for TV
ads remained flat.ads remained flat.
6.4
Simple Test forSimple Test for
Marketing CommunicationsMarketing Communications
CurrentCurrent
BrandBrand
KnowledgeKnowledge
DesiredDesired
BrandBrand
KnowledgeKnowledge
6.5
Information Processing Model ofInformation Processing Model of
CommunicationsCommunications
1.1. ExposureExposure
2.2. AttentionAttention
3.3. ComprehensionComprehension
4.4. YieldingYielding
5.5. IntentionsIntentions
6.6. BehaviorBehavior
6.6
Marketing Communications OptionsMarketing Communications Options
 AdvertisingAdvertising
 PromotionsPromotions
 Event marketing and sponsorshipEvent marketing and sponsorship
 Public relations and publicityPublic relations and publicity
 Personal sellingPersonal selling
6.7
AdvertisingAdvertising
 A powerful means of creating strong, favorable,A powerful means of creating strong, favorable,
and unique brand associations and elicitingand unique brand associations and eliciting
positive judgments and feelingspositive judgments and feelings
 Controversial because its specific effects areControversial because its specific effects are
often difficult to quantify and predictoften difficult to quantify and predict
 Nevertheless, a number of studies using veryNevertheless, a number of studies using very
different approaches have shown the potentialdifferent approaches have shown the potential
power of advertising on brand sales.power of advertising on brand sales.
6.8
Ideal Ad CampaignIdeal Ad Campaign
The 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 and
at 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 and
attend 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 the
product 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 deliverable
points-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 stored
communication effects so that they can have an effect when consumers arecommunication effects so that they can have an effect when consumers are
considering making a purchase.considering making a purchase.
6.9
Category 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
6.10
PromotionsPromotions
 Short-term incentives to encourage trial or usage of aShort-term incentives to encourage trial or usage of a
product or serviceproduct or service
 Marketers can target sales promotions at either theMarketers can target sales promotions at either the
trade 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 discounts
given to retailers, distributors, and other members of thegiven to retailers, distributors, and other members of the
trade to stock, display, and in other ways facilitate the sale oftrade to stock, display, and in other ways facilitate the sale of
a product.a product.
6.11
Event Marketing and SponsorshipEvent Marketing and Sponsorship
 Event marketingEvent marketing is public sponsorship of eventsis public sponsorship of events
or 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 of
communication option for marketers. Bycommunication option for marketers. By
becoming part of a special and personallybecoming part of a special and personally
relevant moment in consumers’ lives, sponsorsrelevant moment in consumers’ lives, sponsors
can broaden and deepen their relationship withcan broaden and deepen their relationship with
their target market.their target market.
6.12
Public Relations and PublicityPublic Relations and Publicity
 Public relationsPublic relations andand publicitypublicity relate to a variety ofrelate to a variety of
programs and are designed to promote orprograms and are designed to promote or
protect a company’s image or its individualprotect a company’s image or its individual
products.products.
 Buzz MarketingBuzz Marketing
 Occasionally, a product enters the market with littleOccasionally, a product enters the market with little
fanfare yet is still able to attract a strong customerfanfare yet is still able to attract a strong customer
base.base.
6.13
Personal SellingPersonal Selling
 Personal sellingPersonal selling is face-to-face interaction with one oris face-to-face interaction with one or
more prospective purchasers for the purpose of makingmore prospective purchasers for the purpose of making
salessales
 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
6.14
Integrated 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 and
build relationships with consumersbuild relationships with consumers
 Allow marketers to inform, persuade, provideAllow marketers to inform, persuade, provide
incentives, and remind consumers directly orincentives, and remind consumers directly or
indirectlyindirectly
 Can contribute to brand equity by establishingCan contribute to brand equity by establishing
the brand in memory and linking strong,the brand in memory and linking strong,
favorable, and unique associations to itfavorable, and unique associations to it
6.15
Developing IMC ProgramsDeveloping IMC Programs
 Mixing communication optionsMixing communication options
 EvaluateEvaluate allall possible communication optionspossible communication options
available to create knowledge structures accordingavailable to create knowledge structures according
to effectiveness criteria as well as cost considerations.to effectiveness criteria as well as cost considerations.
 Different communication options have differentDifferent communication options have different
strengths and can accomplish different objectives.strengths and can accomplish different objectives.
 Determine the optimal mixDetermine the optimal mix
6.16
Evaluating IMC ProgramsEvaluating IMC Programs
 Coverage:Coverage: What proportion of the target audienceWhat proportion of the target audience
is reached by each communication optionis reached by each communication option
employed? How much overlap exists amongemployed? How much overlap exists among
options?options?
 Cost:Cost: What is the per capita expense?What is the per capita expense?
6.17
Communication
Option A
Communication Option C
Communication
Option B
Audience
IMC Audience Communication Option Overlap
Note: Circles represent the market segments reached by various communication options.
Shaded portions represent areas of overlap in communication options.
6.18
Evaluating IMC Programs (cont.)Evaluating IMC Programs (cont.)
 Contribution:Contribution: The collective effect on brand equityThe collective effect on brand equity
in 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 of
brand associationsbrand associations
 Commonality:Commonality: The extent to which informationThe extent to which information
conveyed by different communication optionsconveyed by different communication options
share meaningshare meaning
6.19
Evaluating IMC Programs (cont.)Evaluating IMC Programs (cont.)
 Complementarity:Complementarity: The extent to which differentThe extent to which different
associations and linkages are emphasized acrossassociations and linkages are emphasized across
communication optionscommunication options
 Versatility:Versatility: The extent to which informationThe extent to which information
contained in a communication option workscontained in a communication option works
with different types of consumerswith different types of consumers
 Different communications historyDifferent communications history
 Different market segmentsDifferent market segments
6.20
Marketing Communication GuidelinesMarketing Communication Guidelines
 Be analytical:Be analytical: Use frameworks of consumerUse frameworks of consumer
behavior and managerial decision making tobehavior and managerial decision making to
develop well-reasoned communication programsdevelop well-reasoned communication programs
 Be curious:Be curious: Fully understand consumers by usingFully understand consumers by using
all forms of research and always be thinking ofall forms of research and always be thinking of
how 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-defined
target markets (less can be more)target markets (less can be more)
 Be integrative:Be integrative: Reinforce your message throughReinforce your message through
consistency and cuing across all communicationsconsistency and cuing across all communications
6.21
Marketing 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 create
favorable, 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 tracking
studiesstudies
 Be realistic:Be realistic: Understand the complexities involvedUnderstand the complexities involved
in 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 brand
equityequity

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INTEGRATING MARKETING COMMUNICATIONS TO BUILD BRAND EQUITY

  • 1. 6.1 CHAPTER 6:CHAPTER 6: INTEGRATING MARKETINGINTEGRATING MARKETING COMMUNICATIONS TO BUILD BRAND EQUITYCOMMUNICATIONS TO BUILD BRAND EQUITY
  • 2. 6.2 OverviewOverview  Marketing communicationsMarketing communications are the means by whichare the means by which firms attempt to inform, persuade, and remindfirms attempt to inform, persuade, and remind consumers—directly or indirectly—about theconsumers—directly or indirectly—about the brands they sell.brands they sell.
  • 3. 6.3 The 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 losing their grip on consumers.their grip on consumers.  Marketers pour $18 billion into InternetMarketers pour $18 billion into Internet advertising in 2005. While Web advertisingadvertising in 2005. While Web advertising jumped 20% during this time, spending for TVjumped 20% during this time, spending for TV ads remained flat.ads remained flat.
  • 4. 6.4 Simple Test forSimple Test for Marketing CommunicationsMarketing Communications CurrentCurrent BrandBrand KnowledgeKnowledge DesiredDesired BrandBrand KnowledgeKnowledge
  • 5. 6.5 Information Processing Model ofInformation Processing Model of CommunicationsCommunications 1.1. ExposureExposure 2.2. AttentionAttention 3.3. ComprehensionComprehension 4.4. YieldingYielding 5.5. IntentionsIntentions 6.6. BehaviorBehavior
  • 6. 6.6 Marketing Communications OptionsMarketing Communications Options  AdvertisingAdvertising  PromotionsPromotions  Event marketing and sponsorshipEvent marketing and sponsorship  Public relations and publicityPublic relations and publicity  Personal sellingPersonal selling
  • 7. 6.7 AdvertisingAdvertising  A powerful means of creating strong, favorable,A powerful means of creating strong, favorable, and unique brand associations and elicitingand unique brand associations and eliciting positive judgments and feelingspositive judgments and feelings  Controversial because its specific effects areControversial because its specific effects are often difficult to quantify and predictoften difficult to quantify and predict  Nevertheless, a number of studies using veryNevertheless, a number of studies using very different approaches have shown the potentialdifferent approaches have shown the potential power of advertising on brand sales.power of advertising on brand sales.
  • 8. 6.8 Ideal Ad CampaignIdeal Ad Campaign The 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 and at 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 and attend 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 the product 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 deliverable points-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 stored communication effects so that they can have an effect when consumers arecommunication effects so that they can have an effect when consumers are considering making a purchase.considering making a purchase.
  • 9. 6.9 Category 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
  • 10. 6.10 PromotionsPromotions  Short-term incentives to encourage trial or usage of aShort-term incentives to encourage trial or usage of a product or serviceproduct or service  Marketers can target sales promotions at either theMarketers can target sales promotions at either the trade 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 discounts given to retailers, distributors, and other members of thegiven to retailers, distributors, and other members of the trade to stock, display, and in other ways facilitate the sale oftrade to stock, display, and in other ways facilitate the sale of a product.a product.
  • 11. 6.11 Event Marketing and SponsorshipEvent Marketing and Sponsorship  Event marketingEvent marketing is public sponsorship of eventsis public sponsorship of events or 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 of communication option for marketers. Bycommunication option for marketers. By becoming part of a special and personallybecoming part of a special and personally relevant moment in consumers’ lives, sponsorsrelevant moment in consumers’ lives, sponsors can broaden and deepen their relationship withcan broaden and deepen their relationship with their target market.their target market.
  • 12. 6.12 Public Relations and PublicityPublic Relations and Publicity  Public relationsPublic relations andand publicitypublicity relate to a variety ofrelate to a variety of programs and are designed to promote orprograms and are designed to promote or protect a company’s image or its individualprotect a company’s image or its individual products.products.  Buzz MarketingBuzz Marketing  Occasionally, a product enters the market with littleOccasionally, a product enters the market with little fanfare yet is still able to attract a strong customerfanfare yet is still able to attract a strong customer base.base.
  • 13. 6.13 Personal SellingPersonal Selling  Personal sellingPersonal selling is face-to-face interaction with one oris face-to-face interaction with one or more prospective purchasers for the purpose of makingmore prospective purchasers for the purpose of making salessales  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
  • 14. 6.14 Integrated 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 and build relationships with consumersbuild relationships with consumers  Allow marketers to inform, persuade, provideAllow marketers to inform, persuade, provide incentives, and remind consumers directly orincentives, and remind consumers directly or indirectlyindirectly  Can contribute to brand equity by establishingCan contribute to brand equity by establishing the brand in memory and linking strong,the brand in memory and linking strong, favorable, and unique associations to itfavorable, and unique associations to it
  • 15. 6.15 Developing IMC ProgramsDeveloping IMC Programs  Mixing communication optionsMixing communication options  EvaluateEvaluate allall possible communication optionspossible communication options available to create knowledge structures accordingavailable to create knowledge structures according to effectiveness criteria as well as cost considerations.to effectiveness criteria as well as cost considerations.  Different communication options have differentDifferent communication options have different strengths and can accomplish different objectives.strengths and can accomplish different objectives.  Determine the optimal mixDetermine the optimal mix
  • 16. 6.16 Evaluating IMC ProgramsEvaluating IMC Programs  Coverage:Coverage: What proportion of the target audienceWhat proportion of the target audience is reached by each communication optionis reached by each communication option employed? How much overlap exists amongemployed? How much overlap exists among options?options?  Cost:Cost: What is the per capita expense?What is the per capita expense?
  • 17. 6.17 Communication Option A Communication Option C Communication Option B Audience IMC Audience Communication Option Overlap Note: Circles represent the market segments reached by various communication options. Shaded portions represent areas of overlap in communication options.
  • 18. 6.18 Evaluating IMC Programs (cont.)Evaluating IMC Programs (cont.)  Contribution:Contribution: The collective effect on brand equityThe collective effect on brand equity in 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 of brand associationsbrand associations  Commonality:Commonality: The extent to which informationThe extent to which information conveyed by different communication optionsconveyed by different communication options share meaningshare meaning
  • 19. 6.19 Evaluating IMC Programs (cont.)Evaluating IMC Programs (cont.)  Complementarity:Complementarity: The extent to which differentThe extent to which different associations and linkages are emphasized acrossassociations and linkages are emphasized across communication optionscommunication options  Versatility:Versatility: The extent to which informationThe extent to which information contained in a communication option workscontained in a communication option works with different types of consumerswith different types of consumers  Different communications historyDifferent communications history  Different market segmentsDifferent market segments
  • 20. 6.20 Marketing Communication GuidelinesMarketing Communication Guidelines  Be analytical:Be analytical: Use frameworks of consumerUse frameworks of consumer behavior and managerial decision making tobehavior and managerial decision making to develop well-reasoned communication programsdevelop well-reasoned communication programs  Be curious:Be curious: Fully understand consumers by usingFully understand consumers by using all forms of research and always be thinking ofall forms of research and always be thinking of how 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-defined target markets (less can be more)target markets (less can be more)  Be integrative:Be integrative: Reinforce your message throughReinforce your message through consistency and cuing across all communicationsconsistency and cuing across all communications
  • 21. 6.21 Marketing 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 create favorable, 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 tracking studiesstudies  Be realistic:Be realistic: Understand the complexities involvedUnderstand the complexities involved in 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 brand equityequity