Integrated Marketing Communications The Process of Planning a Synergistic Approach to Promotions and Communications

Why is Communication Important? uIuIf I build a better mousetrap, they will come … uHuHow does your customer know you have a better mousetrap? PROMOTIONS! uHuHow do they hear me? uTuTV, radio, face to face, billboards, signs, point of purchase, direct mail, etc.

What does Promotion work for in the Marketplace? u Products and Services u Ideas u Political Candidates u Effort Devoted to Cultivating “Brands”

PR Factors – Current Events u Carnival Cruise Lines – PR Disaster u Costa Concordia runs aground u Captain showboating u 12 days laying on its side to be shown on news daily u Missing persons u 30% discount offered on future cruises and refund on cruise that sunk! u Implications - $2.7 billion stock price loss, $800 million in future profits

Integrated Marketing Communications(IMC) u process of developing and implementing various forms of persuasive communications programs with customers and prospects over time

Traditional Promotions Mix u Old School u Advertising u PR u Personal Selling u Sales Promotion u New School u Media Ads u Direct Response Ads u Direct Mail, online u Place Advertising u Billboards, posters u Store Signage and Point of Purchase u Sales Promotions u Event Marketing u Sponsorships u PR u Personal Selling

Key IMC Features u Customer is the starting point for IMC u Brand managers should use multiple forms of communication u Multiple messages must speak with a single voice – positioning statement u Build relationships, not flings! u Don’t lose sight of objective – affect behavior

Trends in IMC u Reduced Role of Mass Media Advertising – Why? u Increased use of targeted communication methods ( , specialty magazines) Heightened demands on suppliers Increased efforts to assess effectiveness of IMC techniques

Marcom Program Implementation Decisions Mixing Elements Creating Message Selecting Media Establishing Momentum Enhancing Brand Equity Affecting Behavior Program Eval Fundamental Decisions Positioning Targeting Setting Objectives Budgeting Outcomes

Fundamental MarCom Decisions – Marketing Perspective u Positioning u The key feature or image that stands out in consumers’ collective mind u Calvin Klein, Ford, Mercedes u Targeting u Deliver precise messages to segments of the market u Psychographics, demos, geos,VALS

Fundamental Decisions Communication Objectives u Building Category Wants u Primary Demand u Creating Brand Awareness u Enhancing Attitudes and Influencing Intentions u Facilitating Purchase

Fundamental Decisions Budgeting u Objective/Task Method best u Set objectives and then determine strategies and costs accordingly u Top Down or Bottom Up u Build upon objective task by allowing area manager to request budget dollars based on costs of strategies

Guiding Structure Ideals u All marketing communications should be: u 1) Clearly positioned u 2) Directed at a particular target market u 3) Created to achieve a particular objective u 4) Undertaken to accomplish objective within budget constraint

Implementation Decisions u Mixing Elements u Look to achieve synergy u PR, advertising, personal selling, sales promotion, social media marketing, SEA u Creating Messages u Use of appeal type, matches objectives and creates synergy, spokespersons u Selecting Media u Matching TM/TA u Minimize wasted coverage u Cost benefits analysis

Implementation Decisions Establishing Momentum investing and timing promotional efforts to maximize potential launch effectiveness

MarComm OutComes u Program Evaluation u Remember should focus on Communication u Sales? u Brand awareness u Message comprehension u Attitude formation

Chapter 2 IMC and is Role in Brand Equity Enhancement

Brand Equity u AMA defines brand as, “name, term, sign, symbol, or design or combination of them intended to identify the goods and services of one seller or a group of sellers and to differentiate them from competition.”

Brand Equity u Components u Brand Awareness u Does the brand name come to mind when consumers think of the product category? u Recall vs. recognition u Brand Image u Types of associations that come to mind for the consumer u Feelings, status, quality

Consumer Based Brand Equity Framework Brand Knowledge Brand Awareness Brand Image

Brand Awareness Brand Awareness Brand Recognition Brand Recall

Brand Image Brand Image Types Of Brand Associations Favorability Strength Uniqueness of Associations Attributes Benefits Functional Symbolic Experiential Overall Evaluation (Attitude)

Five Personality Dimensions of Brands u Sincerity u Honest, wholesome I.e., Campbell’s soup u Excitement u Imaginative, spirited, up to date I.e., Calvin Klein, Sony u Competence u Reliable, intelligent, successful I.e., Maytag u Sophistication u Charming, high end, fashionable, I.e., Rolex, Louis Vuitton u Ruggedness u Tough, durable, outdoorsy I.e., Timex and Timberland

Brand Awareness Pyramid TOMA Brand Recall Brand Recognition Unaware of the Brand

What makes a brand successful? u Excels at delivering benefits customers desire u Is consistent u Portfolio of products makes sense u Brand is properly supported over time u Full use of marketing activities builds equity u Stays relevant to consumer (M&Ms and colors; Sony and innovations) u Pricing system matches impressions of value u Company monitors sources of brand equity u Company recognizes what brand means to TM

Affecting Behavior u Action a difficult outcome for advertising alone u Measuring Effectiveness u Choosing a metric – what are desired outcome measurements – attitude, intentions u Gaining Agreement – financial vs. psychological u Collecting Accurate Data u Identifying tools specific effects

Assessing Effectiveness with Marketing Mix modeling u Y=B(0) + B(1)X1 + B(2)X2 + B(3)X3 …. u Y = estimated sales u X(1) = TV advertising u X(2) = Magazine Advertising u X(3) = Online advertising u X(4) = Out of Home Advertising u (0) = baseline sales without promotional support u Add additional X(n) for other promo tools

Trends in IMC u Reducing budgetary expenditures on mass media advertising … why? u Rely on highly targeted communication methods – direct mail (junk?), , specialty magazines, cable, events u Heightened Demands on suppliers u Make them apart of YOUR marketing team u Increased efforts to assess effectiveness