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2. Integrated marketing communications and brand equity enhancement
Chapter 1
Integrated marketing communications and brand equity enhancement

3. Learning objectives
After studying this chapter, you should be able to understand and explain:
the nature of marketing communications
the foundations of integrated marketing communications
the marketing communication process
the concept of brand equity
the rationale of co-branding and world-class brands.

4. Understanding marketing communications
To understand marketing communications, we should examine the two elements that make up the concept.
Marketing
Communication

5. Marketing
Marketing is a mix of related activities that transfers the idea of ‘value’ to customers through the process of exchange.

6. Communication
Communication is the process that conveys thoughts and shared meaning between individuals, or between organisations and individuals.

7. Marketing communications
Facilitates exchanges by targeting a group of customers.
Positions the product away from competitors to offer ‘uniqueness’.
Shares a common meaning with the target audience.

8. Marketing communication mix
Process
Marketing communication elements
Advertising
Digital marketing communications
Point-of-purchase communications
Direct marketing
Sales promotion
Personal
Sponsorship
Marketing public relations
Concept
Synergy

9. Integrated marketing communications (IMC)
The concept relies on delivering the marketing message to all relevant stakeholders.
Synergy works to ensure that all marketing communications are coordinated and consistent.
A process determines the types of messages and media channels that will best reach the chosen market segment.

10. Integrated marketing communications (IMC)
A strategic process aimed at enhancing brand equity by:
providing a consistent message
targeting a group of consumers
creating unique mental associations
optimising long-term value of the brand.

11. Key features of IMC 1 Profile the identified target market
2 Use the relevant media channel
3 Achieve communication synergy, i.e. same brand message
4 Positively influence the target market’s behaviour
5 Build customer relationships, e.g. loyalty programs

12. Traditional marketing versus IMC
A fundamental, strategic change from traditional marketing communications, IMC includes:
exploring advertising channels outside the traditional mass media outlets
a more focused communications method that better targets selected segments
expectations from advertising agencies of greater diversity of communication channels, while still creating a consistent message
ensuring optimal ROI due to higher levels of accountability
creating a culture of ethical behaviour.

13. IMC building blocks
IMC is a communication process involving the planning, creation, integration and implementation of diverse forms of marketing communications that are delivered over time to a brand’s targeted customers and prospects.

14. Brand is the key to marketing communications
Most marketing communications occur at the brand level.
Brands can be an invaluable asset.
Successful brands can create barriers to entry for competitors.
A brand helps differentiate products from competitors.
IMC can lead to higher levels of brand equity (four fundamental decisions need to be addressed).

15. Fundamental marketing communication decisions that can enhance brand equity
Positioning
Targeting
Setting objectives
Budgeting

16. Positioning and targeting
A brand’s position is directly related to the target segment.
The position represents the brand’s meaning and shows off its uniqueness.
Targeting offers a cost-effective approach to communications.
Positioning and targeting encompass demographics, values and lifestyles.

17. Setting objectives and budgeting
Communication decisions reflect the brand’s goals.
Some goals include:
introduction, building and defending a brand
developing awareness, recall and intention to buy the brand.
Communications decisions should remain cost-effective.

18. Fundamental marketing communication decisions
Position and target
(What to say and who to reach)
Budget
(How much to spend)
Objective
(What to accomplish)
Guiding structure

19. Marketing communication implementation decisions
Select the mix of communication elements
Create the messages
Select media outlets
Establish the brand
Evaluate program

20. Program evaluation
Measure campaign results against marketing objectives.
Measure communication outcomes:
Awareness
Comprehension
Attitude
Attention
Increasing accountability related to effectiveness.

21. ICM should positively affect brand equity
‘Brand’ is a perception made of a singular element or a combination of:
name
term
sign
symbol
design.

22. Brand equity goals Increase market share Increase brand loyalty
Set premium pricing strategies

23. (familiarity with the brand) (strong and unique brand associations)
Brand equity
Brand awareness
(familiarity with the brand)
Brand image
(strong and unique brand associations)
Brand equity
(Two dimensions form brand knowledge.)

24. Two dimensions of brand knowledge
Brand awareness
Does a brand name come to mind when consumers think about a particular product category? How easily is the name evoked?
Brand image
What types of associations (thoughts and feelings) come to consumers’ minds when deciding whether to purchase a particular brand?

25. Brand awareness Move brands from a state of unawareness to awareness
To recall
Ultimately move to top-of-mind awareness (TOMA)
TOMA
Brand recall
Brand recognition
Unaware of brand
Source: Reprinted with the permission of The Free Press, a Division of Simon & Schuster Adult Publishing Group, from Managing Brand Equity: Capitalizing on the Value of a rand Name by David A. Aaker, Copyright  1991 by David A. Aaker. All rights reserved

26. Brand image
The associations (specific thoughts and feelings) about a particular brand
Stored in memory
Recollections of experiences
Conceptualised as:
type
favourability
strength
uniqueness

27. Customer-based brand equity framework

28. Enhancing brand equity
Favourable brands do not emerge automatically.
IMC should develop a favourable message and strong, unique associations.
One example is Coca-Cola’s message of fun, freedom and refreshment.

29. Leveraging brand meaning

30. Extending the brand
Various marketing techniques allow for the parent brand to be extended:
Co-branding
Ingredient branding
Products carry multiple brand names.
Associations of each brand are likely to be shared.
The names of brands that make up a product can be promoted, leading to more favourable and stronger associations.

31. World-class brands Some brands have exceptional (global) presence.
This can be measured globally by researching:
awareness
perceived quality
intention.