1. IN ADVERTISING AND PROMOTION
INTEGRATED MARKETING
COMMUNICATIONS
IN ADVERTISING AND PROMOTION
Marketing Communications Challenges: Enhancing Brand Equity, Influencing Behavior, and Being Accountable
© 2010 South-Western, a part of Cengage Learning All rights reserved.

2. Chapter Objectives After reading this chapter you should be able to:
Explain the concept of brand equity from both the company’s and the customer’s perspectives.
Describe the positive outcomes that result from enhancing brand equity.
Appreciate a model of brand equity from the customer’s perspective.
Understand how marcom efforts must influence behavior and achieve financial accountability..
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2–2

3. Introduction: Framework for Marcom Process
Fundamental Decisions
Implementation Decisions
Desired Outcomes
Evaluation and Corrective Action
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4. Basic IMC Issues Marketing Communicators How to enhance brand equity
How to affect customer behavior
How to justify marcom investments
How to demonstrate financial accountability
Marketing Communicators
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5. Basic IMC Issues
What can marketing communicators do to enhance the equity of their brands?
How can marketing communicators affect the behavior of their present and prospective customers?
How can marketing communicators justify their investments in advertising, sales promotions, and other marcom elements?
How can marketing communications demonstrate financial accountability?
© 2010 South-Western, a part of Cengage Learning. All rights reserved.

6. Brand Brand Brand Equity Is a name, term, sign, symbol, or design.
Identifies and differentiates goods and services of one seller or group of sellers from those of the competition.
Communicates a particular set of values.
Brand Equity
Can be considered either from the perspective of the organization that owns it or from the vantage point of the customer.
Is valuable when consumers believe the brand can deliver on its promises.
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7. A Firm-Based Perspective on Brand Equity
Higher market share
Increased brand loyalty
Premium pricing
Revenue premiums
Effects of Brand Equity Increases
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8. Children’s Taste Preferences (In percents)
Table 2.1
Children’s Taste Preferences (In percents)
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9. Brand Equity Increases
Revenue Premium
The revenue differential between a branded item and a corresponding private labeled item.
Revenue premium for a branded item (b) compared to a private label (pl) = (volumeb)(priceb) – (volumepl)(pricepl)
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10. A Customer-Based Brand Equity Framework
Figure 2.1
A Customer-Based Brand Equity Framework
Source: Adapted from Kevin Lane Keller, “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity,” Journal of Marketing 57 (January 1993), 7.
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11. Forms of Brand Knowledge
Brand Awareness
Whether a brand name comes to mind when consumers think about a particular product category
The ease with which the name is evoked
Brand Image
The types of associations that come to the consumer’s mind when contemplating a particular brand
Top-of-Mind Awareness (TOMA)
Occurs when a brand is the first brand that consumers recall when thinking about brands in a particular product category.
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12. The Brand Awareness Pyramid
Figure 2.2
The Brand Awareness Pyramid
Source: David A. Aaker, Managing Brand Equity (New York: Free Press, 1991), 62.
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13. Brand image associations that build brand equity
Brand Associations
Positive Attributes
Perceived Benefits
Favorable Attitude
Brand image associations that build brand equity
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14. Dimensions of Brand Personalities
Excitement
Sincerity
Ruggedness
Sophistication
Competence
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15. Ways of Enhancing Brand Equity
Speak-for-Itself
Message-Driven
Leveraging
Enhancing Brand Equity
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16. Leveraging Brand Meaning from Various Sources
Figure 2.3
Leveraging Brand Meaning from Various Sources
Source: Kevin Lane Keller, “Brand Synthesis: The Multidimensionality of Brand Knowledge,” Journal of Consumer Research 29 (March 2003), 598. By permission of the University of Chicago Press.
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17. Types of Branding for Leveraging
Co-Branding
A partnership between two brands
Ingredient Branding
Inclusion of one brand within the other
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18. What Benefits Result from Enhancing Brand Equity?
Increased consumer loyalty
Long-term growth and profitability for the brand
Maintain brand differentiation from competitive offerings
Insulate brand from price competition
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19. Measuring World-Class Brands
Quality
Salience
Equity
Evaluating World-Class Brands
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20. Characteristics of a World-Class Brand
Delivers benefits consumers want
Stays relevant
Price equals value
Good positioning
Consistency
Fits into brand portfolio
Brand helps build brand equity
Brand’s managers understand what the brand means to consumers
Support over long run
Monitoring of the sources of brand equity
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21. Table 2.2
Top Ten World-Class Brands Overall (Among 1,030 total brands included in EquiTrend’s Spring 2006 survey)
Source: Spring 2006 EquiTrend brand study by Harris Interactive, (accessed July 26, 2007).
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22. Interbrand’s Top 20 Global Brands, 2007
Table 2.3
Interbrand’s Top 20 Global Brands, 2007
Source: Interbrand Report, “Best Global Brands 2007,”
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23. Affecting Behavior and Achieving Marcom Accountability
The Importance of Brand Awareness
Creating brand awareness and boosting brand image serve little positive effect unless individuals make purchases or engage in desired behaviors
Marcom’s objective is ultimately to affect sales volume and revenue
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24. Measuring Marketing Investment Performance
Return on Marketing Investment (ROMI)
Measures the effect of marcom, or of its specific elements such as advertising, in terms of whether it generates a reasonable revenue return on the marcom investment
Why Measure Marcom Effectiveness?
Demands for greater accountability on the marketing function
To become better at marcom activities
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25. Measuring Marketing Investment Performance
Difficulties in Measuring Marcom Effectiveness
Choosing an appropriate metric
Gaining agreement on measures
Collecting accurate data for marcom assessment
Determining effects of specific marcom elements
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26. Difficulties in Measuring Marcom Effectiveness: Choosing a Metric
Change in brand awareness
Improvement in attitudes toward the brand
Increased purchase intentions
Larger sales volume
What to Measure?
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27. Difficulties in Measuring Marcom Effectiveness: Gaining Agreement
Finance Departments’ Measures of Success:
Discounted cash flows
Net present values of investment decisions
Marketing Departments’ Measures of Success:
Measures of brand awareness, image, and equity
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28. Difficulties in Measuring Marcom Effectiveness: Collecting Accurate Data and Calibrating Special Effects
What exact sales figures should be used to calculate sales?
How much relative effect does each program element have on sales volume compared to the effect of other elements?
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29. Measuring Marcom Effectiveness
Marketing-Mix Modeling
Employing econometric statistical techniques to estimate the effects that elements of the marcom mix have in driving sales volume.
Example:
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