Download Advertising and Marketing Communications: 266B

MKTG 4550:
The Role of Marcom
Dr. Campbell
Th 1/13/05
Plan for the Day
• What marketing communications can do
• Brand equity
• Integrated marketing communications
What is Marketing?
“The process of planning and
executing the conception, pricing,
promotion, and distribution
of ideas, goods, and services to
create exchanges that satisfy
individual and organizational
objectives”
American Marketing Association
Marketing Analysis and the Marketing Mix
Customers
Product
Price
Place
Promotion
Competitors
Company
Functions of Marcom
Communicate information
Communicate positioning /
build brand equity
Brand
Equity
Marcom
An orange…is an orange…is an orange.
What is a Brand?
• “…A name, term, sign, symbol, or design, or a
combination of them, intended to identify the
goods and services of one seller or group of
sellers and to differentiate them from those of
competition.” (AMA)
•
Brand Equity: Asset-Based Definition
A set of brand assets and
liabilities linked to a brand, its name
and symbol, that add to or subtract
from the value provided by a product
or service to a firm and/or to that
firm’s customers.
Dave Aaker
Brand Equity: Customer-Based Definition
The differential effect that
brand knowledge has on
consumer response to the
marketing of that brand.
Kevin Lane Keller
Customer-Based Brand Equity
Awareness
BRAND EQUITY
Brand
Associations
/Meaning
Strong
Favorable
Unique
Benefits of Strong Brand Equity
• Greater brand loyalty
• Larger margins
• Less elastic responses to price increase
• More elastic responses to price decreases
• Communication efficiency/effectiveness
• Resistance to competitive marketing actions
• Licensing extension opportunities
• Greater trade cooperation and support
• More “lenient” perceptions
Customer Benefits of Brands
Building Customer-Based Brand Equity
• Creating a brand requires putting a label
and meaning to a product or service
– Label
Brand elements
– Meaning
Marketing mix
•
Strong
•
Favorable
•
Unique
Role of Marketing Communications
• Marketing Communications are good at
these necessary tasks
– Establishing a label
– Creating awareness
– Developing meaning
– Associating the meaning with the label
The Goal of Marcom Management
Manage all “brand contacts”
to build a cohesive brand
There are Many Audiences
• External Audiences
– Consumer
– Industry
•
Channel
•
Competition
– as antagonists
– as potential partners
– Media
– Investment community
• Internal Audiences
– Employees
– Stockholders
The Goal of Marcom Management
“Brand Equity”
Build
Steps in Creating Strong Brand Equity
• Develop a great product
• Determine desired, differentiated
positioning
• Create accessible, favorable brand
attitudes by communicating consistent
brand position/image in all elements of the
marketing mix
– Product
– Pricing
– Distribution
Marketing Communications
Definition of “Promotion”
The coordination of all
seller initiated efforts to set up
channels of information and persuasion
in order to sell goods and services
or promote and idea.
Mike Ray 1972
What are
“Integrated Marketing Communications”?
The recognition of the added value in a
program that integrates a variety of marketing
disciplines and combines these disciplines to
provide clarity, consistency, and maximum
communications impact.
American Association of Advertising Agencies
Conclusion
Promotional management is the
process of developing
communications strategy and
coordinating the promotional
mix elements to develop and
control an integrated program
of effective marketing
communication that builds
strong brand equity.
Next class…
• Read BB Ch 2