Promotion – 1 Integrated Marketing Communications Professor Carl Mela BA 460 Product Management Fuqua School of Business Brand Management System On Building A Brand Managing Across Brands

Promotion – 2 Agenda Elements of Integrated Communications Developing the Communications Plan

Promotion – 3 Elements of Communications Advertising –Creates favorable associations, but does it work? Sales Promotion Event Marketing PR and Publicity Personal Selling

Promotion – 4 Ignoring Commercials? How many ads is a typical American exposed to in a single day? Source: USA Today 2/23/99

Promotion – 5 Ignoring Commercials? How many ads is a typical American exposed to in a single day? How many people think they saw: # of AdsMenWomen %25% %25% %27% %15% %9% Actual = 270 Source: USA Today 2/23/99

Promotion – 6 Your Marketing Strategy Drives Your Advertising Strategy Marketing strategy: –What benefit is being offered: MESSAGE –Who is the target segment: AUDIENCE Advertising strategy: –How do we convey the message effectively: CREATIVE STRATEGY –How do we get to the audience effectively: MEDIA PLANNING

Promotion – 7 Promotional Planning for Brand Equity 1. Identify the target market 2. Establish objectives –Establish brand in memory and create strong, favorable, and unique associations

Promotion – 8 Brand Associations Exist at Several Levels Brand Objectives maintain awareness; increase share focus on selective demand (i.e., pick us over a competitor) Category Objectives attract new users to the category Corporate Objectives umbrella branding

Promotion – 9 Effects Hierarchy Adoption Trial Favorable Attitude Brand Knowledge Structures Brand Awareness

Promotion – 10 Promotional Planning for Brand Equity 3. Design the Message –Content (What the communication conveys) Favorability, strength, and uniqueness of brand associations (e.g, brand personality) –Format (How it is conveyed - break through the clutter) –Source (Next Page)

Promotion – 11 Promotional Planning for Brand Equity 3. Design the message (cont.) –Source (Where it is conveyed) TV; radio; newspapers; magazines; direct mail; outdoor; other (e.g., placement in a movie) what media mix? what media schedule? exposure = reach x frequency % of target group reached# of times an individual is exposed

Promotion – 12 Promotional Planning for Brand Equity 4. Decide on the Promotional Mix –Push v. pull –Stage in the decision process –Consumer v. industrial –Consistency of message across elements –Complementarity of promotions (ads make deals and sales more effective)

Promotion – 13 Promotional Planning for Brand Equity 5. Develop the budget 3.1. objective (e.g,. mkt share goal) 3.2. task (e.g., desired reach and frequency) 3.3. budget (budget to do it) 6. Measure the result –Recall, recognition, persuasion, behavior –Share of voice & GRP against sales (% of target who saw ad at least once during specified time period) x (# of exposures for average person) 7. Manage the process

Promotion – 14 Lodish et al. (1995) Advertising weight has no correlation with sales! T.V. ads work when –Objective is to increase penetration or change attitudes, or the copy is changed –Media levels shift over time, or high at beginning and end –In categories that are growing or have short purchase cycles –For new brands/extensions –In earlier periods of campaign and in prime time

Promotion – 15 Lodish et al. (1999) Little relation between recall/ persuasion measure and brand sales Ad elasticity is 0.13

Promotion – 16 Marketing Causes of Low Levels of Customer Response Poor ResponseProblemUnderlying Cause Low AwarenessMktg- poor media selection Commun.- insufficient frequency - poor ad. copy PoorMktg- insufficient frequency ComprehensionCommun.- poor ad. copy Low InterestProduct- insufficient benefits Positioning- high price - poor ad. copy Sourse: Best (1997), p.244

Promotion – 17 Marketing Causes of Low Levels of Customer Response Poor ResponseProblemUnderlying Cause Low IntentionsProduct- weak value proposition Positioning- need for low-cost trial - not readily available Low PurchaseDistribution- not available Leveland In-Store- hard to find in-store - insufficient in-store services Sourse: Best (1997), p.244

Promotion – 18 Trends in Communications Strategy IMC - Integrated Marketing Communications –look at information flow as the customer sees it Accountability –justify your communications expenditures Relationship Marketing –capitalizing on database information about customers Interactive Media

Promotion – 19 Summary “Evaluate marketing communications options strategically to determine how they can contribute to brand equity.” - Keller Communications Include –Ads, PR, Sales, Sales Promotion, Event Marketing The Communications Planning Process