INTEGRATED MARKETING COMMUNICATIONS TO BUILD BRAND EQUITY

Session 7 (I think)

ROLE OF INTEGRATED MARKETING COMMUNICATIONS

Marketing communications
are

the voice of the brand and are a means by which it can establish a dialogue and build relationships with consumers. allow marketers to inform, persuade, incentivize, 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.
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INTEGRATED MARKETING COMMUNICATIONS AND CUSTOMERBASED BRAND EQUITY

One implications of Kellers CBBE framework is that the manner in which brand associations are formed does not matter -- only the resulting strength, favorability, and uniqueness Different communication options have different strengths and can accomplish different objectives.

Participants in IMC Management

Marketing Organization Marketing Organization Marketing Plan Marketing Plan Goal & Objectives Goal & Objectives Brand Audit (what you Brand Audit (what you are doing now are doing now Advertising Agency Advertising Agency Research Research Creative Strategies Creative Strategies Production Production Message Placement Message Placement

IMC IMC Management Management

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Specialized Promotion Specialized Promotion Organizations Organizations Media Organizations Media Organizations Event Management Firms Event Management Firms Web Site Designers Web Site Designers Sales Promotions Agencies Sales Promotions Agencies Direct Marketing Agencies Direct Marketing Agencies Public Relations Firms Public Relations Firms P-O-P Agencies & Designers P-O-P Agencies & Designers

Advertising Advertising Internet advertising Internet advertising Direct Marketing Direct Marketing Sales Promotions Sales Promotions Public Relations Public Relations Personal Selling Personal Selling

RELATIONSHIP BETWEEN PROMOTION, THE PROMOTIONAL MIX, AND INTEGRATED MARKETING COMMUNICATIONS (CONT)
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Promotion: Promotion Mix: IMC:

Process Tools Management of the Promotion Mix

RELATIONSHIP BETWEEN PROMOTION, THE PROMOTIONAL MIX, AND INTEGRATED MARKETING COMMUNICATIONS
PROMOTION Communication Process in Marketing Used to Create a Favorable Predisposition Toward: Brand of Product Service Idea Person PROMOTIONAL MIX Blend of Communications Tools and Activities Used by a Firm Carries out the Promotion Process Communicates Directly with Target Markets
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RELATIONSHIP BETWEEN PROMOTION, THE PROMOTIONAL MIX, AND INTEGRATED MARKETING COMMUNICATIONS (CONT)
INTEGRATED MARKETING COMMUNICATIONS (IMC) Manages the Processes and Activities of Using Promotional Tools Unified Way Produces a Synergistic Communications Effect
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INTEGRATED MARKETING COMMUNICATIONS

FACTORS CONTRIBUTING TO IMCs RISING PROMINENCE Fragmentation of Media Better Audience Assessment Through Database Technology Consumer Empowerment Increased Advertising Clutter Shifting Channel Power Desire of Greater Accountability

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IMC HISTORY

Disney (1950-60s)
Synergy:

coordinated marketing efforts (print, television, movies, merch, and theme park Each part of the Disney MM promoted other aspects of the mix that together built the Disney Brand revenue stream

SIMPLE VS. SYNCHRONIZED INTEGRATION

Simple
Secondary

media (radio, print, in-store) designed to support the primary medium (television) using consistent messaging across channels medium dominates All are equal

Synchronized
No

Surround Sound analogy

Example of synchronized integration: M&M new candy color

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INTEGRATED COMMUNICATION OPTIONS (BUSINESS-TO-CONSUMER)

Media Advertising (TV, radio, newspapers, magazines) Direct Response Advertising Interactive (on-line) Advertising & Web Sites Outdoor Advertising (billboards, posters, cinema) Point-of-Purchase Advertising Trade Promotions Consumer Promotions Sponsorship of Event Marketing Publicity or Public Relations

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INTEGRATED COMMUNICATION OPTIONS (BUSINESS-TO-BUSINESS)

Media Advertising (TV, radio, newspaper, magazines) Trade Journal Advertising Interactive (on-line) Advertising & Web Sites Directories Direct Mail Brochures & Sales Literature Audio-Visual Presentation Tapes Giveaways Sponsorship or Event Marketing Exhibitions, Trade Shows, Conventions Publicity or Public Relations

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THE RISKS OF INTEGRATION

In order for IMC to work, there must be strong coordination amongst the different marketing disciplines This need creates an Achilles heel for integration
Can

prevent rapid responses to unexpected situations and emerging opportunities Failure of any one component can have dire consequences for other reliant components

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COMMON CAUSES OF IMC FAILURE

Incorrect strategic assumptions Inferior tactical execution Unanticipated marketplace changes Unforseen delays
Product

to market, integrated marketing elements

Conflicts between integration partners Rogue partner behavior

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HOW DO WE ADDRESS THESE CHANGES?

Overall, the difficulty is the result of inflexibility due to centralized command of IMC Col. John Boyd

Competitiveness is dependent on the rate at which decisions can be made and applied Faster maneuvering can destabilize opponents by continually short-circuiting their normal decision-making structures, thus providing even more tactical opportunity as the opponent struggles continually to reorient itself.

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HOW DOES THIS RELATE TO IMC?

Competitiveness is best achieved by relaxing command structures, thus allowing team members to react fluidly to a changing competitive landscape that they can observe firsthand.
Central

leadership exists to provide high-level direction

Was there any mention of M&M doing any specific marketing-related activity?

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HARMONIZING IMC
Allow adequate feedback and flexibility to facilitate response amongst various marketing elements Do not allow elements to get distracted from ultimate strategic goals of IM program Leadership should allow elements to spontaneously work together, to address issues that may be missed
M&M

Color vote example

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EVALUATING IMC PROGRAMS

Coverage - what proportion of the target audience is reached by each communication option employed, as well as how much overlap exists among options Cost - what is the per capita expense
Are

we getting good eyeball return on investment?

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EVALUATING IMC PROGRAMS (CONT.)

Contribution - the collective effect on brand equity in terms of

enhancing improving

depth & breadth of awareness

strength, favorability, & uniqueness of brand associations

Commonality - the extent to which information conveyed by different communication options share meaning
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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

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SPECIAL FOCUS: ADVERTISING

While channel opportunities are expanding, most communication strategies involve advertising at some level There are a number of considerations for ad campaigns related to creating BE

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THE NATURE AND SCOPE OF ADVERTISING

Advertising Paid, Mass-Media Attempt to Persuade Advertisement Specific Message Placed to Persuade an Audience Advertising Campaign Series of Coordinated Advertisements that Communicate a Reasonably Cohesive & Integrated Theme

Theme May Be Made Up of Several Claims Should be Essentially One Theme Advertising Campaigns may be Developed Around a Single Advertisement, or Several Advertisements
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AD CAMPAIGN CONSIDERATIONS
Campaigns make brands -- not single ads Be creative and develop creative themes Brand communications should sing like a choir
Multiple

voices Multiple notes

Find fresh consumer insights & compelling brand truths

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How coordinated are these ads?

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Business to Business Advertisements

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AT WHAT LEVEL CAN WE STRATIFY GEOGRAPHICALLY?

Globalized

Advertising International Advertising National Advertising Regional Advertising Local Advertising Co-op Advertising
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Not All Advertising is International or Even National- This Ad Targets a Local Audience

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ADVERTISING MESSAGE STRATEGIES

Message Strategy Consists of the Objectives to Pursue and Methods Used in an Advertisement or Advertising Campaign
Promote

brand recall Link attributes to brand name Create brand preference Scare customer into action Transform consumption experience

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PROMOTING RECALL

Repetition
Multiple

advert buys Multiple mentions of brand in appeal

Slogans
You

deserve a break today The best part of waking up is Folgers in your cup You are in good hands with Allstate

Jingles
Example

1, example 2, example 3
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ADVERTISING MESSAGE STRATEGIES

Situate

the brand socially Define the brand image/identity Customer Persuasion

Reason-Why Ads Hard-Sell Ads Comparison Ads Information-Only Ads Testimonial Ads Demonstration Ads Advertorial Ads
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WHAT TYPE OF AD IS THIS?

Information Brand Image Hard sell

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What Message Strategy is Being Used Here? Identity Demonstration

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PRINT AD EVALUATION CRITERIA

Is the message clear at a glance? Is the benefit in the headline? Does the illustration support the headline? Does the first line of the copy support or explain the headline and illustration? Is the ad easy to read and follow? Is the product easily identified? Is the brand or sponsor clearly identified?

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COMMON MISTAKES IN DEVELOPING ADVERTISING

Failure to distinguish ad positioning (what you say) from ad creative (how you say it) Mistaken assumptions about consumer knowledge Improperly positioned Failure to break through the clutter Distracting, overpowering creative in ads

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COMMON MISTAKES IN DEVELOPING ADVERTISING (CONT.)

Under-branded ads Failure to use supporting media Changing campaigns too frequently Substituting ad frequency for ad quality

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KELLER BES FOR IMC

Be analytical: Use frameworks of consumer behavior and managerial decision-making to develop well-reasoned 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 welldefined target markets (less can be more) Be integrative: reinforce your message through consistency and cuing across all communications

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KELLER BES FOR IMC

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

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