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Integrated Marketing Communications to Build

Brand Equity

Session 7 (I think)

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Day Summary

• Finish Up Group Presentations• Where you should be with your BA• Integrated Marketing Communications

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Where should we be on our Brand Audits?

• You have completed• Brand Portfolio• Marketing Research• Understand Brand and Org Drivers

• You can describe both of these, or define what they should be if they do not exist

• Understand SKS/psychology of creating BE• How to measure as well

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Where should we be on our Brand Audits?

• What is left• Write up Brand and Org drivers

• Describe• Evaluate

• Assess MR results• Do your results match your team’s beliefs regarding the

Brand?

• Make recommendations about the Brand • Changes to Brand or Org drivers?• New ideas for Brand Conveyors?

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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 Customer-Based Brand Equity

• One implications of Keller’s 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.

1.23

Participants in IMC Management

Marketing Organization•Marketing Plan•Goal & Objectives•Brand Audit (what you are doing now

Marketing Organization•Marketing Plan•Goal & Objectives•Brand Audit (what you are doing now

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

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

Advertising Agency•Research•Creative Strategies•Production•Message Placement

Advertising Agency•Research•Creative Strategies•Production•Message Placement Advertising

Internet advertisingDirect MarketingSales PromotionsPublic RelationsPersonal Selling

Advertising Internet advertising

Direct MarketingSales PromotionsPublic RelationsPersonal Selling

IMC Management

IMC Management

1.4

Relationship Between Promotion, the Promotional Mix, and Integrated Marketing Communications (con’t)

• Promotion: Process

• Promotion Mix: Tools

• IMC: Management of the Promotion Mix

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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

1.3

Relationship Between Promotion, the Promotional Mix, and Integrated Marketing Communications (con’t)

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 IMC’s 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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Promotion and IMCHelp Cut Through the Clutter of Advertising

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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

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Simple vs. synchronized integration

• Simple• Secondary media (radio, print, in-store) designed to

support the primary medium (television) using consistent messaging across channels

• Synchronized• No medium dominates – All are equal

• “Surround Sound” analogy

• Example of synchronized integration: M&M new candy color

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Case Study: M&Ms global color vote

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What Integrated Components were used?

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Public Relations

Internet Presence

Television and Print

Audience

Synchronized Communication (M&M Example)

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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 depth & breadth of awareness

• improving 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 Be’s” 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 well-defined target markets (less can be more)

• Be integrative: reinforce your message through consistency and cuing across all communications

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“Keller Be’s” 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