Download Integrated Marketing Communications

Ashesi University
COURSE TITLE : STRATEGIC BRAND
MANAGEMENT
SEMESTER : SECOND, 2009/2010
MODULE 6: Designing Marketing Programmes to
Build Brand Equity I: Integrated Marketing
Communications
Lecturer: Ebow Spio
Learning Outcomes
• Understand the role of Marketing Communications
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(MC) in building brand equity
Learn how to develop Marketing Communications
programmes to build brand equity
Describe the new realities in MC & the changing
media landscape
Evaluate how the major MC options contribute to
brand equity
Learn how to integrate MC options to build brand
equity
Marketing Communications
• Marketing communications are the means by
which firms attempt to inform, persuade, and
remind consumers—directly or indirectly—
about the brands they sell.
6.3
Role of Marketing Communication
• Differentiate products and services
• Remind and reassure customers and potential
customers
• Inform
• Persuade targets to think and act in a particular way.
Integrated Marketing Communications is the
coordination and integration of all marketing
communication tools, avenues and sources
within a company into a seamless program
which maximizes the impact on consumers and
other end-users at a minimal cost. The IMC
includes all business-to-business, channel,
customer, external communications and
internal communications
1-5
Copyright © 2010 Pearson
Education, Inc. publishing as
Prentice Hall
Integrated Marketing Communications
(IMC)
• The “voice” of the brand
• A means by which it can establish a dialogue
and build relationships with consumers
• Allow marketers to inform, persuade, provide
incentives, and remind consumers directly or
indirectly
• Can contribute to brand equity by establishing
the brand in memory and linking strong,
favorable, and unique associations to it
6.6
The New Media Environment
• Traditional advertising media such as TV,
radio, magazines, and newspapers seem to be
losing their grip on consumers.
• Marketers pour $18 billion into Internet
advertising in 2005. While Web advertising
jumped 20% during this time, spending for TV
ads remained flat.
6.7
Simple Test for
Marketing Communications
Desired
Brand
Knowledge
Current
Brand
Knowledge
6.8
Information Processing Model of
Communications
1. Exposure : A person must see or hear the
communication
2. Attention : A person must notice the communication
3. Comprehension : A person must understand the
intended message or arguments of the
communication:
4. Yielding : A person must respond favourably to the
intended message or arguments
5. Intentions : A person must plan to act in the desired
manner of the communication
6. Behavior : A person must actually act in the desired
6.9
manner of the communication
Marketing Communications Options or
Tools
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Advertising
Promotions
Event marketing and sponsorship
Public relations and publicity
Personal selling
Direct Marketing
6.10
Marketing Communications Mix or
Promotion Mix
The promotion mix is the specific blend of
advertising, public relations, personal selling,
and direct-marketing tools etc that the company
uses to persuasively communicate customer
value and build customer
relationships
Marketing Communication Mix
Media advertising
TV
Radio
Newspaper
Magazines
Consumer promotions
Samples
Coupons
Refunds and rebates
Contests and sweepstakes
Bonus packs
Price offs
Place advertising
Billboards and posters
Movies, airlplaines, lounges
Product placement
Point of purchase
Point of purchase
Shelf talkers
Aisle markers
Shpping cart ads
In store radio or tv
Event marketing
and sponsorship
Sports
Arts
Entertainemnt
Fairs and festivals
Cause –related
Direct response
Advertising
Mail
Telephone/Mobile
Video
Cd-ROM
Trade promotions
On line
WEb sites
Interactive ads
Publicity and PR
Trade deals and buying allowances
Point of purchase display allowances
Push money
Contests and dealer incentives
Cooperative advertising
Source: Strategic Brand Management – Kevin Lane Keller
Steps in Developing Effective Communications Plan
CONTEXT ANALYSIS
• Key Issues
COMMUNICATION OBJECTIVES
Market
Research
COMMUNICATION STRATEGY
• Target Audience
• Positioning
• Choice Promotional Mix
• Push, Pull and Profile Strategy
•Creative and Media Strategy
INTEGRATED COMMUNICATION
PLAN
• Budgets
• Scheduling
• Implementation
Steps in Developing Effective Communication
Determining the Communications Objectives
Marketers seek a purchase response that results from
a consumer decision-making process that includes the
stages of buyer readiness
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Awareness o
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Knowledge
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Liking
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Preference
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Conviction
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Purchase
SMART objectives
Example: “The marketing communications objective for the period
January-March 2003 is to create 65% prompted awareness in
the ABC1, male 30-45 year old age group and those earning
14-24
£25,000 plus”
Promotion Tools : Advertising
Advertising is any paid form of non-personal
presentation and promotion of ideas, goods,
or services by an identified sponsor through
mass media with the purpose of achieving set
objectives such as creating awareness or
encouraging trial.
Advertising
• A powerful means of creating strong,
favorable, and unique brand associations and
eliciting positive judgments and feelings
• Controversial because its specific effects are
often difficult to quantify and predict
• Nevertheless, a number of studies using very
different approaches have shown the
potential power of advertising on brand sales.
6.16
Stages in Developing Advertising Campaign
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Define campaign responsibilities
Define target audience
Set campaign objectives
Set budgets
Media Selection and planning
Advertising development and testing
(message strategy, creative concept &
message execution)
• Implementation and scheduling
• Campaign evaluation
Advertising Brief Format
 Why do we want new brand communication? Launch,
 What consumer understanding or insight drives this brief?
 Who is our target audience?
 What do they think and do now? State of mind or current
behaviour
 What would we like them to think and do in response to the
advertising? Objectives
 What is most likely to achieve this change? (i.e. the
differentiator or unique selling proposition) Could be functional
as well emotional
 Why should they believe it? Supporting evidence
 Practical Considerations : e.g. type of ad, media, duration
Advertising Message
Four elements important:
• The balance : information vrs pleasure
• The structure: conclusion drawing, One or two sided
message, Primary vrs recency
• The source/credibility : company, opinion leader or
former
• The presentation to the target audience: Information
(factual, slice of life, demonstration, comparative
advertising) vrs Emotion & Feeling (fear, humour,
animation, sex, music, fantasy
Brief
Communications Idea
Executional Idea
– Brief
• Distils the point of difference that makes the brand preferred
– Communications Idea
• A creative vehicle which dramatises the point of difference
– Executional Idea
• A single expression of the communications idea which strengthens
its impact to keep the idea fresh
Communication Ideas are vehicles for
the communication message
• They are NOT the message
– Sunlight message was “Good on colours”
– Pepsodent in Chile wanted to communicate
that their toothpaste repaired teeth
The Communications Idea
“Road works”
Consumer competitions
Newspaper PR
Buses
TV Press conference
Promoters
Packaging
Internet
Judging event
Store-promotions
SMS
Ideal Ad Campaign
The ideal ad campaign would ensure that:
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The right consumer is exposed to the right message at the right place
and at the right time.
The creative strategy for the advertising causes the consumer to notice
and attend to the ad but does not distract from the intended message.
The ad properly reflects the consumer’s level of understanding about
the product and the brand.
The ad correctly positions the brand in terms of desirable and
deliverable points-of-difference and points-of-parity.
The ad motivates consumers to consider purchase of the brand.
The ad creates strong brand associations to all of these stored
communication effects so that they can have an effect when consumers
are considering making a purchase.
6.24
Category of Advertising
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Television
Radio
Print
Direct response
Interactive: websites, online ads
Mobile marketing
Place advertising:
– Billboards; movies, airlines, and lounges; product
placement; and point-of-purchase advertising
6.25
Television
Advantages
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High reach
High frequency potential
Low cost per contact
Creative opportunities
High intrusion value
Segmentation possibilities
Impact of sight, sound and
motion
Vivid demonstration &
explanation
Dramatic portraying of
user, usage imagery, brand
personality
Disadvantages
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Clutter
Channel surfing during
commercials
Short amount of copy
High cost per ad
Low recall due to clutter
Radio
Advantages
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Disadvantages
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Low cost per spot
Low production cost
Use of music
High segmentation
potential
Flexibility in making new
ads
Ability to modify ads
quickly and locally
DJ intimacy
Mobility
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8-27
Short exposure time
Low attention
Poor national audience
capability
Target duplication in many
areas
Copyright © 2010 Pearson
Education, Inc. publishing as
Prentice Hall
Outdoor
Advantages
Disadvantages
• Large ads
• Select geographic
areas
• Accessible for local ads
• Low cost per
impression
• Broad reach
• High frequency
• Legal limitations
• Short-exposure
time
• Brief message
• Limited
segmentation
• Cluttered travel
routes
8-28
Copyright © 2010 Pearson
Education, Inc. publishing as
Prentice Hall
Magazines
Advantages
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Disadvantages
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High segmentation
High color quality
Long life
Direct response
techniques
Read during leisure
Longer attention to ads
8-29
Long lead time
Little flexibility
High cost
Clutter
Declining
readership
Copyright © 2010 Pearson
Education, Inc. publishing as
Prentice Hall
Newspapers
Advantages
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Disadvantages
Priority to local ads
Coupons and special
response ads
High credibility
Strong audience interest
Longer copy
High flexibility
Cumulative volume
discounts
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8-30
Clutter
Short time span
Poor quality
reproduction
Limited audience
Poor national
buying procedures
Copyright © 2010 Pearson
Education, Inc. publishing as
Prentice Hall
Promotions
• Short-term incentives to encourage trial or usage of a
product or service
• Marketers can target sales promotions at either the
trade 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 or
discounts given to retailers, distributors, and other
members of the trade to stock, display, and in other ways
facilitate the sale of a product.
6.31
Two Broad Categories of Sales
Promotion
Trade Promotions are the incentives
used by manufacturers and other
members of the marketing channel to
help push products through the retailers
Consumer Promotions are incentives that
are aimed at the end user
Goals: entice the customer to take the
decision to make a purchase, increase
Entice another member of the channel to traffic to the store, generate brand
purchase goods for eventual resale.
loyalty etc.
They are aimed at retailers, wholesalers,
distributors, brokers or agents.
Role: Build stronger relations with
members of the channel
Trade Promotion Tools: Trade Allowances,
Trade Contests, Trade Incentives, Training
Programmes, Vendor Support
Programmes, Trade Shows, Specialty
Advertising, Point of Purchase Advertising
Types of Consumer Promotions: Coupons,
Premiums, Contests and Sweepstakes,
Refunds and Rebates, Sampling Bonus
Packs, Price-offs
A value orientation of sales promotions
Value increasing (alters
price/quantity or price/quality
equation)
Value adding (offers “something extra”
while leaving the core product and price
unchanged)
Discount Pricing
Money-off coupons
Payment terms (e.g. interest free credit)
Refunds
Guarantees
Multipack or multi-buys
Quantity increase
Buybacks
Samples
Special Features (limited editions)
Valued packaging
Product Trial
In-packs gifts
In mail gifts
Piggy back gifts
Gift coupons
Information (e.g. brochure, catalogue)
Club or Loyalty programmes
Competitions/prize draws
Trade
Displays
Event Marketing and Sponsorship
• Event marketing is public sponsorship of events
or activities related to sports, art,
entertainment, or social causes.
• Event Sponsorship is a commercial activity
whereby one party permits another the
opportunity to exploit an association with a
target audience in return for funds, services or
resources
6.35
Sponsorship
Sponsorship is a two-way
mutually beneficial partnership
between an organization being the
sponsored and the sponsor.
It works on the premise that the
association affects image and the
sponsor may exchange money or
goods/services. It is often enables
media coverage for the sponsor.
Rational or Goals of
Sponsorship
•Build brand awareness
•Build and enhance
corporate/brand image
•Build customer loyalty
•Create experiences and evoke
feelings
• To entertain key clients &
reward employees
• To permit merchandising and
promotional opportunities
•Obtain media coverage where
legislation restricts media
exposure
•Play a supporting or secondary
role
Factors to consider in taking up
sponsorship
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Fit with brand image
Business opportunities
Period of impact
Uniqueness of sponsorship agreement
The level of spin off promotions
Public Relations and Publicity
Public relations
involves building good relations with the company’s various
publics by obtaining favorable publicity, building up/protect
corporate image or its individual product, handling or heading
off unfavorable rumors, stories, and events
Publicity
involves the dissemination of messages through third party media,
such as magazines, newspapers or news programmes.
Buzz Marketing
Occasionally, a product enters the market with little fanfare
yet is still able to attract a strong customer base.
6.38
PR Techniques
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Press releases
Press conferences
Publications
Media relations
Investor Relations
Events
Annual reports
Lobbying: presentation of papers to
parliament or government
• Private public sector partnership
Personal Selling
• Personal selling is face-to-face interaction with one
or more prospective purchasers for the purpose of
making sales
• The keys to better selling
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Rethink training
Get everyone involved
Inspire from the top
Change the motivation
Forge electronic links
Talk to your customers
6.40
Direct Marketing
• Direct Marketing is a strategy used to create
personal and intermediary free dialogue with
customers
• It is an interactive system which uses one or
more advertising media to effect a measurable
response at a location
e.g. Direct Mail, mail order, Telephone sales, direct
response advertising, e-mail
Direct Marketing
• Disseminate
information
• Used
• Generate sales leads
• Breakthrough ad clutter
to create a personal
dialogue with
customers and
stakeholders (not through an
intermediary)
• Increase repeat orders •Better Targeting to reduce waste
• Build a relationship
• Widely used
• Technology enabled
Direct Response Advertising
• It is another form of direct marketing and
appears in the standard broadcast and
standard print media.
• Different from other forms of advertising as it
actually demands a response by giving a
website address, telephone number or
coupon for personal visit.
Personalizing Marketing
• All of these approaches are a means to create deeper, richer,
and more favorable brand associations.
• Relationship marketing has become a powerful brand-building
force.
– Can slip through consumer radar
– May creatively create unique associations
– May reinforce brand imagery and feelings
• Nevertheless, there is still a need for the control and
predictability of traditional marketing activities.
• Models of brand equity can help to provide direction and
focus to the marketing programs.
5.44
Personalizing Marketing Concepts
• Experiential marketing
• One-to-one marketing
• Permission marketing
5.45
Reconciling the New Marketing
Approaches
• One-to-one, permission, and experiential
marketing are all potentially effective means
of getting consumers more actively involved
with a brand.
5.46
Experiential Marketing/Activation
Bringing brand to life through relevant experiences
• Focuses on customer experience
• Focuses on the consumption situation
• Views customers as rational and emotional
elements
• Drives sales and builds long term consumer
relationships
• Uses electric methods and tools
5.47
Events
4000 Heads
Washed & styled
40000
visitors
Cell C for the City
– Local artists commissioned to design urban
murals to enhance blank walls
• Any design, as long as it incorporated a ‘C’
Cell C for the City
• Permanent branded locations
– Red walls in suburbs of
Johannesburg
• Street signs in Soweto
• Advertising in airports and
city suburbs
– PR exploitation
One-to-One Marketing:
Competitive Rationale
• Consumers help to add value by providing
information.
• Firm adds value by generating rewarding
experiences with consumers.
– Creates switching costs for consumers
– Reduces transaction costs for consumers
– Maximizes utility for consumers
5.51
One-to-One Marketing:
Consumer Differentiation
• Treat different consumers differently
– Different needs
– Different values to firm
• Current
• Future (lifetime value)
• Devote more marketing effort on most valuable
consumers (and customers)
5.52
One-to-One Marketing: Five Key Steps
• Identify consumers, individually and
addressably
• Differentiate them by value and needs
• Interact with them more cost-efficiently and
effectively
• Customize some aspect of the firm’s behavior
• Brand the relationship
5.53
Permission Marketing (Seth Godin)
• “Encourages consumers to participate in a
long-term interactive marketing campaign in
which they are rewarded in some way for
paying attention to increasingly relevant
messages.”
– Anticipated
– Personal
– Relevant
• Permission marketing can be contrasted to
interruption marketing.
5.54
Five Steps in Permission Marketing
1. Offer the prospect an incentive to volunteer.
2. Offer the interested prospect a curriculum over
time, teaching consumers about the product.
3. Reinforce the incentive to guarantee that prospect
maintains the permission.
4. Offer additional incentives to get more permission
from the consumer.
5. Over time, leverage the permission to change
consumer behavior toward profits.
5.55
Developing IMC Programs
• Mixing communication options
– Evaluate all possible communication options
available to create knowledge structures according
to effectiveness criteria as well as cost
considerations.
– Different communication options have different
strengths and can accomplish different objectives.
– Determine the optimal mix
6.56
Evaluating IMC Programs
• Coverage: What proportion of the target
audience is reached by each communication
option employed? How much overlap exists
among options?
• Cost: What is the per capita expense?
6.57
IMC Audience Communication Option Overlap
Communication
Option A
Communication
Option B
Communication Option C
Note: Circles represent the market segments reached
by various communication options.
6.58
Shaded portions represent areas of overlap in communication options.
Evaluating IMC Programs (cont.)
• Contribution: The collective effect on brand
equity in terms of
– enhancing depth and breadth of awareness
– improving strength, favorability, and uniqueness of
brand associations
• Commonality: The extent to which information
conveyed by different communication options
share meaning
6.59
Evaluating IMC Programs (cont.)
• Complementarity: The extent to which different
associations and linkages are emphasized
across communication options
• Versatility: The extent to which information
contained in a communication option works
with different types of consumers
• Different communications history
• Different market segments
6.60
Marketing Communication Guidelines
• Be analytical: Use frameworks of consumer behavior
and managerial decision making to develop wellreasoned communication programs
• Be curious: Fully understand consumers by using all
forms of research and always be thinking of how 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 through
consistency and cuing across all communications
6.61
Marketing Communication Guidelines
(Cont.)
• Be creative: State your message in a unique
fashion; use alternative promotions and media to
create favorable, strong, and unique brand
associations
• Be observant: Monitor competition, customers,
channel members, and employees through
tracking studies
• Be realistic: Understand the complexities
involved in marketing communications
• Be patient: Take a long-term view of communication effectiveness to build and manage brand
equity
6.62
Permission Marketing (Seth Godin)
• “Encourages consumers to participate in a
long-term interactive marketing campaign in
which they are rewarded in some way for
paying attention to increasingly relevant
messages.”
– Anticipated
– Personal
– Relevant
• Permission marketing can be contrasted to
interruption marketing.
5.63
Five Steps in Permission Marketing
1. Offer the prospect an incentive to volunteer.
2. Offer the interested prospect a curriculum over
time, teaching consumers about the product.
3. Reinforce the incentive to guarantee that prospect
maintains the permission.
4. Offer additional incentives to get more permission
from the consumer.
5. Over time, leverage the permission to change
consumer behavior toward profits.
5.64
Key Points
1. It is through marketing communications that brands
build relationships with consumers.
2. Development of an integrated marketing
communications campaign entails “mixing and
matching” options based on their ability to produce a
whole that is greater than the sum of its parts.
3. Creating a dialogue with consumers requires thinking
beyond traditional advertising and promotion
strategies.
4. Consistency is the key to creating brand awareness
and strong brand associations.
Tutorials
1.
Pick a brand and gather all its marketing communication materials. How
effectively have they “mixed and matched” marketing communications?
Have they capitalized on the strengths of different media and
compensated for their weaknesses at the same time? How explicitly
have they integrated their communication program?
2.
What do you see as the role of the Internet for building brands? How
would you evaluate a Web site for a major brand, e.g., Nike, Disney, or
Starbucks?
3.
Develop Marketing Communications Plan for Beacon Books