Download The Conceptual Model of Brand Response Based on IMC

The Conceptual Model of Brand Response Based on IMC
ZONG Yi
School of Commerce, Tianjin University of Commerce, P.R.China, 300134
[email protected]
Abstract: On the basis of summarizing and analyzing on existing research which the relations of
Integrated Marketing Communications (IMC) and brand, this paper indicates that the inner mechanism
of IMC and customer brand response is elaborated inadequately in present research. Therefore, this
paper adopts the method which combines theory analysis with case study. Firstly, by means of existing
concept of brand response, this paper proposes an improved one which regards IMC campaigns as the
requirement to generate customer brand response. Moreover, this paper constructs a conceptual model of
brand response based on IMC, which is also an innovation of the paper. The aim of the model is to get
the effect that enterprise builds brand image in fore period and customer generates brand response in the
later period by using various IMC tools. Next, taking one of Chinese brand names –Haier as the case,
this paper uses the model to analyze Olympic Marketing of Haier to verify the feasibility of the model.
Then the conclusion is drawn: IMC is exactly the effective way for enterprise to build strong brand and
generate customer brand response.
Keywords: Integrated Marketing Communication (IMC), Brand response, Brand cognition, Brand value,
Brand loyalty
1 Introduction
It is now widely accepted that intangible assets provide the most sustainable source of competitive
advantage [1] [2]. Indeed, among the intangible assets (such as brands, logos, trademarks, advertising
jingles, slogans, patents, and copyrights) in an organization, brand equity often accounts for a major
portion of shareholder value [3]. Therefore, how to build brand cognition, transmit brand value and gain
brand loyalty has already been an assurance to satisfy the demands of consumers better and capture
market shares steadily. Indeed, whatever cognizing brand, perceiving brand value or forming brand
loyalty, is the behavior of customers. The all decision-makings of enterprises to build strong brand, such
as brand positioning, brand name choice, brand hold strategy and brand developing strategy, regard
approval and preference of customers on brand as the goal, since brand express cognition and feelings of
customers on a product, and also express the meaning of the product or service in customers’ mind.
Therefore, the process of building a strong brand is as well as a process of close communication
between enterprises and customers. For example, communication with customers by advertising is one
of the most commonly used ways. As the world’s first brand, McDonald’s expends $ 500 million on
advertising a year to construct brand preference and loyalty of customers. However, customers have not
been limited to traditional forms of communications to know about a brand any more, they are
surrounded with various broad connection and contact points. Besides brand advertising,
multi-transmission ways, such as first hand experience, word-of-mouth influence, telephone
communication, web page of companies……make customers gain more brand information. If
information from different channels has collision, the image of enterprise and positioning of brand will
be confused in consumers’ mind [4]. Consequently, it is a key that how to transmit brand information
effectively and reasonably which make it communicate to targeted customers in proper time point.
Integrated Marketing Communications(IMC), the theory on which base synergizing all kinds of
communication tools to provide a clarity, consistency and convincing image of enterprise and brand
information, the goal is to make marketing campaigns communicate “one-to-one” to form a overall
impression and affective commitment, which aiming to various customers. The process of constructing
relatively stable and unified impression by consumer segmentation is also a process of building brand,
which is to create brand influence and raise brand loyalty [5]. In addition, other scholars attributed IMC
has the potential to be a leading contributor on how to apportion marketing expenditure between
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customer acquisition and customer retention (e.g. Neckermann 2004)[6], and central player within, this
new paradigm. Lucy Stafford proposed that using an integrated media strategy is the most effective way
to reach target audience via a number of different media channels, therefore reinforcing the brand while
generating response [7]. In 2005, on the basis of former CEVITA(Capability Economic Value of
Intangible and Tangible Assets)conceptual model, Janek Ratnatunga and Michael T. Ewing built a new
model to evaluate tangible and intangible assets for enterprises by using IMC, which one of the goals is
to extend the model to incorporate the effect of marketing communication on brand value and sales.
Thus, a preliminary quantitative analysis of contribution of IMC to brand value appeared. In summary,
although scholars have already seen the important role of IMC which strengthen brand and cultivate
customer relationships, the inner mechanism of IMC and customer brand response is elaborated
inadequately, as well as practical evaluation of operational effectiveness in existing research. The paper
is working on the above problems, by which firstly construct a brand response conceptual model to
elaborate inner relationship of IMC and brand, then taking one of Chinese brand names –Haier as the
case to analyze Olympic Marketing of Haier to verify the feasibility of the model.
2 The Conceptual Model of Brand Response Based on IMC
2.1 The 5 developing stages of IMC theory
In present international academe, the definitions of IMC still not coincide in opinion. Five typical
definitions of IMC are presented and summarized by Jerry Kliatchho(2005). Three definitions come
from the pioneers of IMC from Northwestern University, such as Schultz(1989, 1991 and 1998), one
definition by Duncan(1992 and 1994), and the contributions by Nowah and Phelps(1994)[8]. This paper
combines the above definitions to summarize 5 developing stages of IMC theory from the angle of the
relationship of brand and customer.
2.1.1 The stage one
In 1989, American Association of Advertising Agencies(4As) proposed the first time definition of IMC,
which only considered IMC is a synergy “planning” which using various promotion tools including
general advertising, direct response, sales promotion, and public relations. It differs from traditional
promotion tools which always in separate ways. The core of IMC emphasizes “synergy of various tools”.
This 4As definition has been the most widely used since 1989 up to the present, and the most often cited
by academics and practitioners, even if it has not been universally endorsed[9].
2.1.2 The stage two
In 1991, although only passed by 2 years, the core of IMC theory changed which emphasizes “a
customer or prospect”, that is, Schultz proposed that “IMC is the process of managing all sources of
information about a product/service to which a customer or prospect is exposed which behaviorally
moves the consumer toward a sale and maintains customer loyalty[10]”. It is a revolutionary change that
cultivating the relationships between customer and brand and making brand loyalty are emerged.
2.1.3 The stage three
From 1992 to 1994, Duncan developed IMC theory by summarizing the above definitions, and pointed
out the core of IMC is “brand value and customer relationship [11].” The same year, conceptualizations of
IMC by through what they termed as three broad was proposed by Nowah and Phelps. The goal of the
conceptualizations, indeed the goal of IMC is to produce a holistic campaign to achieve synergy that
both develops awareness and builds brand image, at the same time evoking a behavioral response from
the target audiences.
2.1.4 The stage four
In 1998, Schultz and Schultz (1998) redefined IMC. They considered IMC is a “strategic business
process [12]”, which is applied to brand communication with all kinds of consumers. The core of the
definition is customer orientation entirely. Moreover, this most recent definition also expands the
understanding of the term brand communication programmes from its traditional view (i.e. advertising,
public relations, and so on) to all other contact points between the organization and its brands and the
consumers or prospects.
2.1.5 The stage five
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Entering the 21st century, IMC theory is increasingly applied in practice. Accordingly, many scholars
present a new trend, which is the combination of IMC and Integrated Brand Communications (IBC). In
2006, Carolyn Ray put forward that IBC is derived from brand value management. IBC is a whole
communication strategy by integrating multi-communication campaigns, which includes public relations,
advertising, investor relations, interaction or internal communications, in order to manage brand that the
precious asset of enterprise[13]. In 2007, a peak conversation was carried out between two experts, one is
Li Guangdou who is the domestic brand strategy expert, and the other is Schultz who is the forerunner
of IMC theory. The two scholars explicitly pointed out that the final goal of IMC is not for the
short-term marketing interest but for accumulating brand equity, which is also the essence of IBC[14].
2.2 The construction of brand response conceptual model based on IMC
2.2.1 The conception of brand response
The conception of brand response is advanced by Lucy Stafford in 2005, which thought that brand
response is essentially a carefully executed direct response campaign with longer-term goals such as
customer retention, brand loyalty and improving customer relationships with the brand itself [15]. The
conception indicates brand response is a campaign, and the success of such a campaign depends on the
use of consistent creative that reinforces the brand over time and delivers the messages through all
media used—whether that be door-drops, direct mail, press advertising, radio, the Internet or TV. Indeed,
the conception discusses the effect of how to strengthen brand by IMC tools from the angle of brand,
which is exactly the same with IBC theory. However, the limitation of the conception is not to explain
the subject and content of brand response, and how to achieve brand loyalty.
On that basis, this paper proposes the improved conception of brand response. Through inducement and
stimulus of various IMC tools, brand response is a series of process which customer generates cognition
of brand image built by enterprise, then gains more brand perceiving value and finally forms brand
loyalty. The process has two subjects, one is enterprise, and the other is customer. The conception
regards IMC campaigns as the requirement to generate customer brand response, and the successful
customer response consists of brand cognition, brand value perceiving and brand loyalty.
2.2.2 The construction of brand response conceptual model based on IMC
On the basis of improved conception of brand response, this paper tries to establish a brand response
conceptual model based on IMC in order to show the inner relationships between IMC and brand
response (see Figure 1). The whole process of brand response can be divided into two stages. Firstly in
fore period, as the preparation of enterprise, it is a stage to build brand image by using IMC tools, and
also a process of brand positioning. The aim of the stage is to build a differential brand image from
competitors in consumers’ mind by using belief positioning, which is hard to imitate, then can gain the
goal of differential brand image in deed. It strongly emphasizes affective impact on consumers’ mind. To
enterprise, it must depend on a variety of communication tools such as strong advertising, web
communication or public relations to achieve the brand image impact on consumers, Therefore, the
interest, service and experience of the brand can be transferred to targeted customers all along.
Next, on that basis in fore period, the brand response must generate inevitably in the later period. Under
the powerful offensive of brand image, targeted customers first cognize brand connotation. Then if the
brand is faithful, once customers form purchasing behaviors they can realize brand value, that is, the
perception of brand value. The perception is deeper, the brand preference is stronger. Finally multiple
purchasing behaviors will appear and brand loyalty can form.
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IMC disciplines
general
advertising
sales
promotion
public
relations
using
belief positioning
personal
selling
direct
response
building
Fore period:
enterprise
brand image
generating
Later period:
customer
brand response
brand
cognition
brand
perceived value
brand
loyalty
Figure 1 The Conceptual Model of Brand Response Based on IMC
3 The Successful Application of Brand Response Model—Olympic IMC of Haier
A great success of Beijing Olympic Games in 2008 is not only the success of China, but the success of
enterprises which operate and enhance brand awareness by virtue of Olympic Games. Haier Group is
worthy of the domestic model of Olympic Marketing. This paper proposed that the process of Haier
Olympic Marketing can be considered as the successful application of brand response model.
3.1 Haier—Building brand image by using IMC in fore period
In consumers’ mind, the brand—Haier means the spirit of “devotion and dedication” and “in search of
excellence”, as well as the high quality product which constantly enterprising and innovative. It is not
only the brand positioning of Haier Group, but exactly the same with the Olympic spirit in this regard.
When interviewed by the People’s Daily, Zhang Ruimin said that he think the Olympic spirit can be
comprehended by all mankind. The reason is the Olympic spirit which is Citius, Altius, Fortius
represents continuously pursuing and fighting. The essence of the Olympic spirit is precisely for Haier
to challenge and defeat oneself under the situation of global competition [16]. Accordingly, using belief
positioning that fits in with the Olympic spirit, the brand image of Haier Olympic Marketing is to
challenge oneself and pursue excellent quality, which is the final goal of Haier IMC campaigns. Under
the unified theme, Haier using various IMC tools to build its Olympic brand image.
3.1.1 Public relations
Firstly Haier applied the event marketing. On the night of July 13, 2001, the 50 million Yuan advertising
of congratulations with sentences “Haier wishes great motherland in a successful bid of Olympic
Games” was on CCTV at the first time, which the goal is to share the privilege with all the Chinese
people in the world. Secondly Haier developed a variety of public benefit activities as follows: On Feb.
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16, 2007, Haier started up “CCTV-Haier Olympic City Travel” to spread Beijing Olympic ideas and
promote the Olympic spirit to the world. Haier also started up “Olympic Hope project” and “Olympic
Hope Primary School” to transmit the Olympic spirit to children. In addition, Haier started up “Gold
Medal of Family General Mobilization” to make common people experience Olympic Games [17].
3.1.2 General advertising and sales promotion
Firstly in August of 2007, Haier made a public service advertising named “We are masters of 2008
Olympic Games” to connect the Olympic spirit with Haier brand. Secondly in June of 2008, Haier
developed event sales promotion of presenting digital camera when buying project for customers
recording best moment of Olympic Games at any time. Thirdly in August of 2008, Haier introduced a
big event named “the Olympic Fun Family” of kitchen modules to call on consumers participating in
athletic contests themselves. Haier also used more than one way such as presents, discount, and Olympic
packet to reward consumers.
3.1.3 Network marketing
During the Olympic Games, Haier set a special channel of “Haier and Olympic Games” in website
which not only reported news of Haier participating Olympic Games, but also cooperated with public
benefit activities to increase pageview. The channel introduced products lineup of for netizens, and also
encouraged people to participate in the Olympics by using blog, pictures and video [18].
3.2 Customers—Generating brand response in the later period
3.2.1 Brand cognition
Through IMC, Haier induced customers to know and cognize its Olympic brand image by using various
communication tools. For instance, through the event marketing of successful bid of Olympic Games,
although Haier did not gain direct benefit from the campaign, the memorable value and symbolic
meaning of the event can enhance the communication between the brand Haier and consumers, which
the added value is inestimable. In addition, through a series of public benefit activities, Haier fulfilled its
social responsibility, enlarged brand cognition of public, and spread deeper brand connotation.
3.2.2 Brand perceived value
Under the strong offensive of IMC by Haier, many customers chose the products and service of Haier
during the Olympics. Especially air conditioners and water heaters of Haier won the award of bid in
Olympic venues. As the only sponsor of white good in Beijing Olympics, Haier knew the key of
Olympic marketing that is how to make consumers perceive brand value. Therefore, Haier introduced
“Olympic-level products and service”, such as “08 Olympic light refrigerator” and “08 Olympic wind
air conditioner”. Moreover, Haier made full use of service while guaranteed quality to design
differential service solution. Consequently Haier greatly enhanced interaction with consumers, and then
made publics enjoy the Olympic-level treatment and perceive Chinese brand value [19].
3.2.3 Brand loyalty
Through the experience on products and service of Haier, customers perceived brand value and
appeared strong brand preference. As a result multiple purchasing behaviors were generated and brand
loyalty was formed. For example, the feedback of Olympic marketing on Haier central air-conditioning
was ideal. It is the product that won the maximum bid of Olympic project and the amount of
accumulative bid was highest in Beijing Olympic venues. At the same time, the success marketing of
Haier central air-conditioning promoted increase of abroad market department, which up 56% over the
same period last year in Euro-market in the first half of 2008 and exceeded total annual sales of 2007[20].
4 Conclusion
Since the construction of IMC theory from 1980’s, the conception and practice of IMC have been
widely researched and applied in the world. Many scholars mentioned the importance of IMC to
enterprise brand, but the inner relationships of IMC and customer brand response is elaborated
inadequately, as well as practical application in existing research.
The contribution of this paper can be brought under three points. Firstly this paper summarizes five
developing stages of IMC theory according to the typical definitions of IMC, which the goal is to
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emphasize brand and customer relationships become gradually the core of IMC; Secondly on the basis
of existing conception, this paper proposed improved conception of brand response, which brings the
inducement of IMC on customers into the conception regarded as the requirement to generate customer
brand response. And this paper also presents three programmes of brand response that is brand cognition,
brand perceived value and brand loyalty; Thirdly this paper constructs brand response conceptual model
based on IMC, which the goal is to visually represent the inner relationships between IMC and brand
response.
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