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Advertising and Integrated Brand communication

M.R MahmoothMBA, MSc, Chartered Marketer

Contents

• What is advertising• Why advertising • What is IBC• The key characteristics of advertising • Key characteristic of IBC

Advertising

• Definition – A Paid mass-mediated attempt to persuade (disseminate information)

• The company who pays – Client/Sponsor • Is Publicity an mode of Advertising???• For Example -

Marketing Communications mix

• Advertising• Direct marketing• Sales Promotion• Personal selling• PR and Publicity Each of these has its own uses and limitations

and hence a judicious mix is employed by most companies.

Integrated Marketing Communications

• This brings about synergy and better use of communication funds

• Balancing the ‘push’ and ‘pull’ strategies• Improves the company’s ability to reach the

right consumer at the right place at the right time with the right message.

So what are the key characteristics for a good communication/Advert

Different methods of Advertising

• What is Marketing

You see a gorgeous girl at a party. You go up to her and say, "I am very rich. Marry me!"

That's

=Direct Marketing=

• You're at a party with a bunch of friends and see a gorgeous girl. One of your friends goes up to

her and pointing at you says,

"He's very rich. Marry him."

That's

=Advertising=

• You see a gorgeous girl at a party.

You go up to her and get her telephone number.

The next day you call and say, "Hi, I'm very rich. Marry me."

That's

=Tele Marketing=

• You're at a party and see a gorgeous girl. You get up and straightenyour tie; you walk up to her and pour her a

drink.

You open the door for her, pick up her bag after she drops it, offer hera ride, and then say, "By the way, I'm very rich "Will you marry me?"That's

=Public Relations=

You're at a party and see a gorgeous girl. She walks up to you and says,"You are very rich, I want to marry you."

That's

=Brand Recognition=

• You see a gorgeous girl at a party.

You go up to her and say, "I'm rich. Marry me"

She gives you a nice hard slap on your face. That's

=Customer Feedback=

¿How would you like to travel on your vacations this year?

¿This way..??

The Communications Process

Sender EncodingMessage Media Decoding Receiver

ResponseFeedback

Noise

Marketing Communications mix

• Advertising• Direct marketing• Sales Promotion• Personal selling• PR and Publicity Each of these has its own uses and limitations

and hence a judicious mix is employed by most companies.

Integrated Marketing Communications

• This brings about synergy and better use of communication funds

• Balancing the ‘push’ and ‘pull’ strategies• Improves the company’s ability to reach the

right consumer at the right place at the right time with the right message.

Distortions in Communication

• Selective attention• Selective distortion• Selective retention

Factors influencing effectiveness of communications

• when the recipient’s source of communication is single

• When message is in line with recipients opinions and beliefs

• When issues are unfamiliar or peripheral issues• When the source is an expert, of high status, likeable,

has power and can be identified with• When social context or reference group will mediate

the communication and influence acceptability

Communications model

• AIDA model• The hierarchy of effects model• The innovation – adoption model

AIDA Model

Attention

Interest

Desire

Action

Marketing Communication

• Factors influence Marketing Communications

1. Changing Consumers• The availability of information and increased resistance in

mass-market broadcasting

2. Changing Marketing Strategies • Fragmented market and more personalised marketing

strategies

3. Changes in Technology • e.g. Internet, Mobile, Ipod, Satellite & Cable

Armstrong and Kotler (2009) Chpt 12

IMC: Mix and Match

• Integrated Marketing Communication

– A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organisation are relevant to that person and consistent over time

American Marketing Association

Communication Mix Strategies

• Two basic strategies

– Push Strategy

• Pushing the product through marketing channels to final consumers

• Personal selling and trade promotion are relatively emphasised

ProducerRetailers and Wholesalers Customers

Marketing Activities


Communication Mix Strategies

• Two basic strategies

– Pull Strategy

• Producer direct its marketing activities directly to consumers to induce their demand for the product

• Advertising and promotion are relatively emphasised

ProducerRetailers and Wholesalers Customers


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Marketing Communications at the Brand Level

This is the key means for

differentiating one company’s offering

from another’s

A well-known and respected brand is an invaluable asset

Brand

A successful brand can create barriers to entry for

competitors

Factors influencing effectiveness of communications

• when the recipient’s source of communication is single

• When message is in line with recipients opinions and beliefs

• When issues are unfamiliar or peripheral issues• When the source is an expert, of high status, likeable,

has power and can be identified with• When social context or reference group will mediate

the communication and influence acceptability

© 2010 South-Western, a part of Cengage Learning. All rights reserved.

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Introduction to Marketing Communications (Marcom)

Business-to-Consumer(B2C)

Business-to-Business(B2B)

Integrated MarcomB2C&B

Integrated Marketing Communication (IMC)

Programs


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The Tools of Marketing CommunicationsTable 1.1

Source: Adapted from Figure 1.1 in Kevin Lane Keller, “Mastering the Marketing Communications Mix: Micro and Macro Perspectives on Integrated Marketing Communication Programs,” Journal of Marketing Management 17 (August, 2001), 823–851.

1. Media Advertising• TV• Radio• Magazines• Newspapers

2. Direct Response and Interactive Advertising

• Direct mail• Telephone solicitation• Online advertising

3. Place Advertising• Billboards and bulletins• Posters• Transit ads• Cinema ads

4. Store Signage and Point-of-Purchase Advertising

• External store signs• In-store shelf signs• Shopping cart ads• In-store radio and TV

5. Trade- and Consumer-Oriented Promotions

• Trade deals and buying allowances

• Display and advertising allowances

• Trade shows• Cooperative advertising• Samples• Coupons• Premiums• Refunds/rebates• Contests/sweepstakes• Promotional games• Bonus packs• Price-off deals

6. Event Marketing and Sponsorships

• Sponsorship of sporting events

• Sponsorship of arts, fairs, and festivals

• Sponsorship of causes7. Marketing-Oriented Public

Relations and Publicity8. Personal Selling


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The Integration of Marketing Communications

• Why Not Integrated?– Tradition of separation communication tools– Influence of specialized outside suppliers– Managerial perception

• Fear of budget cutbacks

– Resistance of outside suppliers to broadening their functions


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The Integration of Marketing Communications (cont’d)

• IMC and Synergy– Using multiple communication tools in

conjunction with one another can produce greater results (synergistic effects) than tools used individually and in an uncoordinated fashion.

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MarCom Outcomes

Enhancing Brand Equity Affecting Behavior

Outcomes


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Five Key Features of IMCTable 1.2

1. Start with the customer or prospect.

2. Use any form of relevant contact or touch point.

3. Speak with a single voice.

4. Build relationships.

5. Affect behavior.


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Key IMC Feature # 1

• The Consumer or Business Customer Must Represent the Starting Point for All Marketing Communications Activities– Consumers in Control

• Outside-in approach: learn the media preferences and lifestyles of customers/prospects to know the best contexts to reach them with brand messages.

– Reduced Dependence on Mass Media• Consumers are increasingly in control of their media

choices for acquiring information about brands.


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Selecting the Appropriate Marcom Tools

Identify Marcom Program Goals

Determine Best Way to Allocate

Marketing Budget

Media-Neutral Approach

Courtesy of WISK®, Unilever United States, Inc.


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Key IMC Feature # 2• Use Any and All Marcom Tools

That Are Up to the Task– 360-Degree Branding

• A brand’s touch points should be everywhere the target audience is.

– Not All Touch Points Are Equally Engaging

• Surround customers/prospects with the message, but not to the point of being irritatingly present.


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Key IMC Feature # 3• Multiple Messages Must Speak

with a Single Voice– A brand’s positioning statement must:

• Present a clear idea of the brand in its target market’s mind

• Consistently deliver the same unified message across all media channels on all occasions.

© Richard B. Levine / Newscom


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Key IMC Feature # 4• Build Relationships Rather

Than one off engagement– Loyalty programs promote long-

term relationships between customers and brands that lead to customer retention.

– Experiential marketing programs can create brand experiences that make positive and lasting impressions on customers.


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Key IMC Feature # 5

• Don’t Lose Focus of the Ultimate Objective: Affect Behavior– The goal of IMC is to influence the target audience

in such a way that the audience engages in a specific desired behavior.

– The effectiveness of an IMC program is judged by its success in terms of its ultimate influence on behavior.


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Obstacles to Implementing IMC

• Integration requires tight coordination among all elements of a marcom program.– Few providers of marketing communication

services have the diversity of skills required to execute an IMC program.

– Direct-to-customer advertising is more difficult than a mass media campaign.

– The greatest challenge is making sure that all marcom tools are consistently executed.


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Marketing Communications

• Marketing Communications’ Objective– To enhance brand equity by moving customers to

favorable action toward the brand—trying it, repeat purchasing it, and becoming loyal toward the brand.

• Brand Equity– The degree to which consumers favorably perceive

the brand’s features and benefits as compared to competitive brands and how strongly these views are held in memory


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Making Brand-Level Marcom Decisions and Achieving Desired Outcomes

Figure 1.1


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Fundamental Marcom Decisions

Targeting PositioningSetting

ObjectivesBudgeting

Fundamental Marcom Program

Decisions


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Fundamental Marcom Decisions (cont’d)

Top-down(TD)

Bottom-up/Top-down(BU/TD)

Top-down/Bottom-up(TD/BU)

Bottom-up(BU)

Budgeting Procedures


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Fundamental Marcom Decisions: Commit-to-Memory Mantra

1. Directed to a specifictarget market

2. Clearly positioned

3. Created to achieve a specific objective

4. Undertaken within budget constraints

All marketing communications

should be:


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Marcom Implementation Decisions

MixingElements

CreatingMessages

SelectingMedia

EstablishingMomentum

Marcom ProgramImplementation

Decisions


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A Buy-One-Get-One-Free Promotion

Figure 1.2


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Marcom Outcomes

Enhancing Brand Equity

Affecting Behavior

Marcom Outcomes


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Marcom Program Evaluation

Measuring Resultsfor Accountability

BehavioralImpact

Communication Outcomes

Providing Feedback

Taking Corrective Action

Greater InvestmentDifferent

Communication Combinations

Revised StrategyRevised Allocations

Marcom Program Implementation