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COURSE TITLE : STRATEGIC BRAND MANAGEMENT

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1 COURSE TITLE : STRATEGIC BRAND MANAGEMENT
Ashesi University COURSE TITLE : STRATEGIC BRAND MANAGEMENT SEMESTER : SECOND, 2009/2010 MODULE 6: Designing Marketing Programmes to Build Brand Equity I: Integrated Marketing Communications Lecturer: Ebow Spio

2 Learning Outcomes Understand the role of Marketing Communications (MC) in building brand equity Learn how to develop Marketing Communications programmes to build brand equity Describe the new realities in MC & the changing media landscape Evaluate how the major MC options contribute to brand equity Learn how to integrate MC options to build brand equity

3 Marketing Communications
Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the brands they sell.

4 Role of Marketing Communication
Differentiate products and services Remind and reassure customers and potential customers Inform Persuade targets to think and act in a particular way.

5 Integrated Marketing Communications is the coordination and integration of all marketing communication tools, avenues and sources within a company into a seamless program which maximizes the impact on consumers and other end-users at a minimal cost. The IMC includes all business-to-business, channel, customer, external communications and internal communications Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

6 Integrated Marketing Communications (IMC)
The “voice” of the brand A means by which it can establish a dialogue and build relationships with consumers Allow marketers to inform, persuade, provide incentives, 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 26

7 The New Media Environment
Traditional advertising media such as TV, radio, magazines, and newspapers seem to be losing their grip on consumers. Marketers pour $18 billion into Internet advertising in While Web advertising jumped 20% during this time, spending for TV ads remained flat.

8 Simple Test for Marketing Communications
Desired Brand Knowledge Current Brand Knowledge

9 Information Processing Model of Communications
Exposure : A person must see or hear the communication Attention : A person must notice the communication Comprehension : A person must understand the intended message or arguments of the communication: Yielding : A person must respond favourably to the intended message or arguments Intentions : A person must plan to act in the desired manner of the communication Behavior : A person must actually act in the desired manner of the communication 26

10 Marketing Communications Options or Tools
Advertising Promotions Event marketing and sponsorship Public relations and publicity Personal selling Direct Marketing 26

11 Marketing Communications Mix or Promotion Mix
The promotion mix is the specific blend of advertising, public relations, personal selling, and direct-marketing tools etc that the company uses to persuasively communicate customer value and build customer relationships

12 Marketing Communication Mix
Event marketing and sponsorship Sports Arts Entertainemnt Fairs and festivals Cause –related Place advertising Billboards and posters Movies, airlplaines, lounges Product placement Point of purchase Media advertising TV Radio Newspaper Magazines Consumer promotions Samples Coupons Refunds and rebates Contests and sweepstakes Bonus packs Price offs Point of purchase Shelf talkers Aisle markers Shpping cart ads In store radio or tv Direct response Advertising Mail Telephone/Mobile Video Cd-ROM Trade promotions Trade deals and buying allowances Point of purchase display allowances Push money Contests and dealer incentives Cooperative advertising On line WEb sites Interactive ads Publicity and PR Source: Strategic Brand Management – Kevin Lane Keller

13 Steps in Developing Effective Communications Plan
CONTEXT ANALYSIS Key Issues COMMUNICATION OBJECTIVES Market Research COMMUNICATION STRATEGY Target Audience Positioning Choice Promotional Mix Push, Pull and Profile Strategy Creative and Media Strategy INTEGRATED COMMUNICATION PLAN Budgets Scheduling Implementation

14 Steps in Developing Effective Communication
Determining the Communications Objectives Marketers seek a purchase response that results from a consumer decision-making process that includes the stages of buyer readiness Awareness o Knowledge Liking Preference Conviction Purchase SMART objectives Example: “The marketing communications objective for the period January-March 2003 is to create 65% prompted awareness in the ABC1, male year old age group and those earning £25,000 plus” 14-24

15 Promotion Tools : Advertising
Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor through mass media with the purpose of achieving set objectives such as creating awareness or encouraging trial.

16 Advertising A powerful means of creating strong, favorable, and unique brand associations and eliciting positive judgments and feelings Controversial because its specific effects are often difficult to quantify and predict Nevertheless, a number of studies using very different approaches have shown the potential power of advertising on brand sales.

17 Stages in Developing Advertising Campaign
Define campaign responsibilities Define target audience Set campaign objectives Set budgets Media Selection and planning Advertising development and testing (message strategy, creative concept & message execution) Implementation and scheduling Campaign evaluation

18 Advertising Brief Format
Why do we want new brand communication? Launch, What consumer understanding or insight drives this brief? Who is our target audience? What do they think and do now? State of mind or current behaviour What would we like them to think and do in response to the advertising? Objectives What is most likely to achieve this change? (i.e. the differentiator or unique selling proposition) Could be functional as well emotional Why should they believe it? Supporting evidence Practical Considerations : e.g. type of ad, media, duration

19 Advertising Message Four elements important:
• The balance : information vrs pleasure • The structure: conclusion drawing, One or two sided message, Primary vrs recency • The source/credibility : company, opinion leader or former • The presentation to the target audience: Information (factual, slice of life, demonstration, comparative advertising) vrs Emotion & Feeling (fear, humour, animation, sex, music, fantasy

20 Brief Communications Idea Executional Idea Brief Communications Idea
Distils the point of difference that makes the brand preferred Communications Idea A creative vehicle which dramatises the point of difference Executional Idea A single expression of the communications idea which strengthens its impact to keep the idea fresh Judge the execution as a powerful and relevant expression of the communications idea. Remember to judge it in the context of the world of the consumer not your own.

21 Communication Ideas are vehicles for the communication message
They are NOT the message Sunlight message was “Good on colours” Pepsodent in Chile wanted to communicate that their toothpaste repaired teeth

22 The Communications Idea
“Road works” Activation Ideas should be driven by: Guidance note for speaker Read chart

23 Consumer competitions
Newspaper PR Buses TV Press conference Promoters Packaging Internet Judging event Store-promotions SMS

24 Ideal Ad Campaign The ideal ad campaign would ensure that:
The right consumer is exposed to the right message at the right place and at the right time. The creative strategy for the advertising causes the consumer to notice and attend to the ad but does not distract from the intended message. The ad properly reflects the consumer’s level of understanding about the product and the brand. The ad correctly positions the brand in terms of desirable and deliverable points-of-difference and points-of-parity. The ad motivates consumers to consider purchase of the brand. The ad creates strong brand associations to all of these stored communication effects so that they can have an effect when consumers are considering making a purchase.

25 Category of Advertising
Television Radio Print Direct response Interactive: websites, online ads Mobile marketing Place advertising: Billboards; movies, airlines, and lounges; product placement; and point-of-purchase advertising

26 Television Advantages Disadvantages High reach
High frequency potential Low cost per contact Creative opportunities High intrusion value Segmentation possibilities Impact of sight, sound and motion Vivid demonstration & explanation Dramatic portraying of user, usage imagery, brand personality Clutter Channel surfing during commercials Short amount of copy High cost per ad Low recall due to clutter

27 Radio Advantages Disadvantages Low cost per spot Low production cost
Use of music High segmentation potential Flexibility in making new ads Ability to modify ads quickly and locally DJ intimacy Mobility Short exposure time Low attention Poor national audience capability Target duplication in many areas Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

28 Outdoor Advantages Disadvantages Large ads Select geographic areas
Accessible for local ads Low cost per impression Broad reach High frequency Legal limitations Short-exposure time Brief message Limited segmentation Cluttered travel routes Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

29 Magazines Advantages Disadvantages High segmentation
High color quality Long life Direct response techniques Read during leisure Longer attention to ads Long lead time Little flexibility High cost Clutter Declining readership Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

30 Newspapers Advantages Disadvantages Priority to local ads Clutter
Coupons and special response ads High credibility Strong audience interest Longer copy High flexibility Cumulative volume discounts Clutter Short time span Poor quality reproduction Limited audience Poor national buying procedures Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

31 Promotions Short-term incentives to encourage trial or usage of a product or service Marketers can target sales promotions at either the trade or end consumers Consumer promotions Consumer promotions are designed to change the choices, quantity, or timing of consumers’ product purchases. Trade promotions Trade promotions are often financial incentives or discounts given to retailers, distributors, and other members of the trade to stock, display, and in other ways facilitate the sale of a product.

32 Two Broad Categories of Sales Promotion
Trade Promotions are the incentives used by manufacturers and other members of the marketing channel to help push products through the retailers Entice another member of the channel to purchase goods for eventual resale. They are aimed at retailers, wholesalers, distributors, brokers or agents. Role: Build stronger relations with members of the channel Consumer Promotions are incentives that are aimed at the end user Goals: entice the customer to take the decision to make a purchase, increase traffic to the store, generate brand loyalty etc. Trade Promotion Tools: Trade Allowances, Trade Contests, Trade Incentives, Training Programmes, Vendor Support Programmes, Trade Shows, Specialty Advertising, Point of Purchase Advertising Types of Consumer Promotions: Coupons, Premiums, Contests and Sweepstakes, Refunds and Rebates, Sampling Bonus Packs, Price-offs

33 A value orientation of sales promotions
Value increasing (alters price/quantity or price/quality equation) Value adding (offers “something extra” while leaving the core product and price unchanged) Discount Pricing Money-off coupons Payment terms (e.g. interest free credit) Refunds Guarantees Multipack or multi-buys Quantity increase Buybacks Samples Special Features (limited editions) Valued packaging Product Trial In-packs gifts In mail gifts Piggy back gifts Gift coupons Information (e.g. brochure, catalogue) Club or Loyalty programmes Competitions/prize draws

34 Trade Displays

35 Event Marketing and Sponsorship
Event marketing is public sponsorship of events or activities related to sports, art, entertainment, or social causes. Event Sponsorship is a commercial activity whereby one party permits another the opportunity to exploit an association with a target audience in return for funds, services or resources

36 Sponsorship Sponsorship is a two-way mutually beneficial partnership
between an organization being the sponsored and the sponsor. It works on the premise that the association affects image and the sponsor may exchange money or goods/services. It is often enables media coverage for the sponsor. Rationale or Goals of Sponsorship Build brand awareness Build and enhance corporate/brand image Build customer loyalty Create experiences and evoke feelings To entertain key clients & reward employees To permit merchandising and promotional opportunities Obtain media coverage where legislation restricts media exposure Play a supporting or secondary role

37 Factors to consider in taking up sponsorship
Fit with brand image Business opportunities Period of impact Uniqueness of sponsorship agreement The level of spin off promotions

38 Public Relations and Publicity
involves building good relations with the company’s various publics by obtaining favorable publicity, building up/protect corporate image or its individual product, handling or heading off unfavorable rumors, stories, and events Publicity involves the dissemination of messages through third party media, such as magazines, newspapers or news programmes. Buzz Marketing Occasionally, a product enters the market with little fanfare yet is still able to attract a strong customer base.

39 PR Techniques Press releases Press conferences Publications
Media relations Investor Relations Events Annual reports Lobbying: presentation of papers to parliament or government Private public sector partnership

40 Personal Selling Personal selling is face-to-face interaction with one or more prospective purchasers for the purpose of making sales The keys to better selling Rethink training Get everyone involved Inspire from the top Change the motivation Forge electronic links Talk to your customers

41 Direct Marketing Direct Marketing is a strategy used to create personal and intermediary free dialogue with customers It is an interactive system which uses one or more advertising media to effect a measurable response at a location e.g. Direct Mail, mail order, Telephone sales, direct response advertising,

42 Direct Marketing Disseminate information Generate sales leads
Increase repeat orders Build a relationship Used to create a personal dialogue with customers and stakeholders (not through an intermediary) Breakthrough ad clutter Better Targeting to reduce waste • Widely used • Technology enabled

43 Direct Response Advertising
It is another form of direct marketing and appears in the standard broadcast and standard print media. Different from other forms of advertising as it actually demands a response by giving a website address, telephone number or coupon for personal visit.

44 Personalizing Marketing
All of these approaches are a means to create deeper, richer, and more favorable brand associations. Relationship marketing has become a powerful brand-building force. Can slip through consumer radar May creatively create unique associations May reinforce brand imagery and feelings Nevertheless, there is still a need for the control and predictability of traditional marketing activities. Models of brand equity can help to provide direction and focus to the marketing programs.

45 Personalizing Marketing Concepts
Experiential marketing One-to-one marketing Permission marketing

46 Reconciling the New Marketing Approaches
One-to-one, permission, and experiential marketing are all potentially effective means of getting consumers more actively involved with a brand.

47 Experiential Marketing/Activation
Bringing brand to life through relevant experiences Focuses on customer experience Focuses on the consumption situation Views customers as rational and emotional elements Drives sales and builds long term consumer relationships Uses electric methods and tools

48 Events 4000 Heads Washed & styled 40000 visitors

49 Cell C for the City Local artists commissioned to design urban murals to enhance blank walls Any design, as long as it incorporated a ‘C’

50 Cell C for the City Permanent branded locations Street signs in Soweto
Red walls in suburbs of Johannesburg Street signs in Soweto Advertising in airports and city suburbs PR exploitation

51 One-to-One Marketing: Competitive Rationale
Consumers help to add value by providing information. Firm adds value by generating rewarding experiences with consumers. Creates switching costs for consumers Reduces transaction costs for consumers Maximizes utility for consumers

52 One-to-One Marketing: Consumer Differentiation
Treat different consumers differently Different needs Different values to firm Current Future (lifetime value) Devote more marketing effort on most valuable consumers (and customers)

53 One-to-One Marketing: Five Key Steps
Identify consumers, individually and addressably Differentiate them by value and needs Interact with them more cost-efficiently and effectively Customize some aspect of the firm’s behavior Brand the relationship

54 Permission Marketing (Seth Godin)
“Encourages consumers to participate in a long-term interactive marketing campaign in which they are rewarded in some way for paying attention to increasingly relevant messages.” Anticipated Personal Relevant Permission marketing can be contrasted to interruption marketing.

55 Five Steps in Permission Marketing
Offer the prospect an incentive to volunteer. Offer the interested prospect a curriculum over time, teaching consumers about the product. Reinforce the incentive to guarantee that prospect maintains the permission. Offer additional incentives to get more permission from the consumer. Over time, leverage the permission to change consumer behavior toward profits.

56 Developing IMC Programs
Mixing communication options Evaluate all possible communication options available to create knowledge structures according to effectiveness criteria as well as cost considerations. Different communication options have different strengths and can accomplish different objectives. Determine the optimal mix

57 Evaluating IMC Programs
Coverage: What proportion of the target audience is reached by each communication option employed? How much overlap exists among options? Cost: What is the per capita expense? 29

58 IMC Audience Communication Option Overlap
Option A Communication Option C Option B Audience IMC Audience Communication Option Overlap Note: Circles represent the market segments reached by various communication options. Shaded portions represent areas of overlap in communication options.

59 Evaluating IMC Programs (cont.)
Contribution: The collective effect on brand equity in terms of enhancing depth and breadth of awareness improving strength, favorability, and uniqueness of brand associations Commonality: The extent to which information conveyed by different communication options share meaning 29

60 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

61 Marketing Communication Guidelines
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

62 Marketing Communication Guidelines (Cont.)
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 communi-cation effectiveness to build and manage brand equity

63 Key Points It is through marketing communications that brands build relationships with consumers. 2. Development of an integrated marketing communications campaign entails “mixing and matching” options based on their ability to produce a whole that is greater than the sum of its parts. 3. Creating a dialogue with consumers requires thinking beyond traditional advertising and promotion strategies. 4. Consistency is the key to creating brand awareness and strong brand associations.

64 Tutorials Pick a brand and gather all its marketing communication materials. How effectively have they “mixed and matched” marketing communications? Have they capitalized on the strengths of different media and compensated for their weaknesses at the same time? How explicitly have they integrated their communication program? What do you see as the role of the Internet for building brands? How would you evaluate a Web site for a major brand, e.g., Nike, Disney, or Starbucks? Develop Marketing Communications Plan for Beacon Books


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