Integrated Marketing Communication

Geo-Fencing

(She said during the review to understand it, but it probably won't be on the test) :involves targeting customers within designated areas (usually near the firm's location)

Geo-Conquesting

(She said during the review to understand it, but it probably won't be on the test) :occurs when companies use promotions applied to their competitor's location.

Brand Characteristics that Facilitate Adoption

(She said there will be several questions over this topic) 1. Relative advantage 2. Complexity 3. Observability 4. Trialability 5. Compatibility

How Brand Concepts can be developed: (2) Symbolic needs

(associating the brand with symbolic objects): directed at consumers' desire for self-enhancement, role position, group membership, and belongingness ex. Nike advertisement from class

How Brand Concepts can be developed: (3) Experiential needs

(sensory pleasures, personal experience): products that provide sensory pleasure, variety, and/or cognitive stimulation. ex. Car ad from class

How Brand Concepts can be developed: (1) Functional needs

(solving problems): products that attempt to fulfill the consumer's consumption-related problems -ex. L'Oreal hair care ad with Blake Lively

(extra info) Use a full-service ad agency

*Advantages* -In-depth knowledge and skills -Obtaining negotiating muscle with the media -Coordinating advertising and marketing efforts *Disadvantages* -Some control is lost -Larger clients are favored over small clients -Occasionally inefficient in media buying

Types of Advertising Agencies

*In-House Advertising Operation*: company does not use ad agency. *Purchase Services as Needed*: not only a single full-service agency to perform all advertising and related functions, and advertiser may recruit the services of a variety of firms to do it. *Use a full-service ad agency*: Offering at least four basic functions for the clients: 1. Creative Services 2. Media Services 3. Research Services 4. Account Management (3 types, know them all)

How can we measure World-class brands

*Quality*: score ranging from 0 to 10 (unacceptable/ poor to outstanding/ extraordinary) *Salience*: score ranging from 0 to 100 (percentage of people who feel sufficiently well informed about a brand to rate it) *Equity*: score ranging from 0 to 100 (determined by multiplying the quality and salience scores and dividing the product by 10)

Key Features of IMC: (2) Use any form of relevant contact

*Touch point (contacts*): any message medium capable of reaching target customers and presenting the brand in a favorable light *360 Degree marketing*: (aka immersive videos) are video recordings here a view in every direction is recorded at the same time, shot using an omnidirectional camera or collection of cameras • Ex. (for both) Apple Pay

Advertising's Effect on the Economy

-*Advertising=Market Power*: advertising yields market power in being able to differentiate physically homogenous products -*Advertising=Information*: informing consumers about product benefits, advertising increases consumer price sensitivity and their ability to obtain the best value -*A Synthesis*: neither view is correct by itself several questions

Extra info for test

-35 multiple choice questions -look at assignment 2 and 3 (key located in week 4 course content tab) -blue/grey business college scantron

How to improve brand equity

-Allow brand to speak-for-itself -Create message-driven associations -Leveraging current meanings or associations

Good logo designs

-Are natural—neither too simple nor too complex -Are readily recognized -Convey same meaning to all target market members -Evoke positive feelings -Are suited for periodic updating

Key Features of IMC: (4) Build relationships

-Build relationships rather than engage in flings -Costs 5-10x more to acquire a new customer than keep a current one (therefore we use..) 1. *Loyalty programs* to promote long-term relationships between customers and brands that lead to customer retention. 2. *Experiential marketing programs* which can create brand experiences that make positive and lasting impressions on customers.

Difficulty of Measuring Marcom Effectiveness

-Choosing a Metric -Gaining Agreement -Collecting Accurate Data -Calibrating Special Effects

Obstacles to Implementing IMC

-Few providers have the skills required to execute. -Mass media campaigns easier than direct-to-customer. -The real challenge is to make sure that tools are consistently executed.

(extra info) 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

Difficulty of Measuring Marcom Effectiveness: (1) Choosing a metric

-Metric: specific measures -Change in brand awareness -Improved consumer attitude toward the brand -Increased purchase intentions -Larger sales volume (e.g., via scanner data; marketing mix models)

How to name a brand

-it can influence early trial of a new brand and affect future sales volume -use "cerebral switches" that activate images in target audiences' collective minds. -A brand name affects the speed at which consumers become aware of the brand, influences brand image, and plays a major role in brand equity formation. Important to note *Brand name suggestiveness* implies particular attributes or benefits in the context of a product category (e.g., Healthy Choice). ADD (know this- she mentioned it should be easy, observable, etc)

Why we need full-service ad agency

1. *Creative services* -Develop advertising copy and campaigns -Copywriters, production staff, graphic/digital artists, and creative directors 2. *Media services* -Selecting the best advertising media -Media planners develop overall media strategy -Media buyers procure the selected media 3. *Research services* -Study clients' /customers' buying habits, purchase preferences, and responsiveness (account/market planners) -Focus groups, mall intercepts, online studies, acquisition of syndicated research data 4. *Account Management* -Link the agency with the client -Act as liaisons so that the client does not need to interact directly with several different service departments and specialists -Any other agency personnel needed??

Elements of Promotional Mix

1. Advertising 2. Public relations 3. Sales promotion 4. Digital Marketing/Social Media 5. Personal Selling 6. Direct Marketing (She said there are several questions about this)

Segmentation (aka "Market segmentation")

1. Behavior Segmentation 2. Psychographics 3. Demographics 4. Geodemographics

Basic Functions of Advertising

1. Informing 2. Influencing (Persuading) 3. Reminding and Increasing Salience 4. Adding Value 5. Assisting Other Company Efforts

Key Features of IMC

1. Start with customer or prospect 2. Use any form of relevant contact 3. Achieve synergy 4. Build relationships 5. Affect behavior

Objectives of Promotion

1. inform 2. persuade 3. induce action *Promotion Management*: coordination of promotional mix elements in setting objectives, establishing budgets, designing programs, evaluating performance, and taking corrective action. (1 or 2 questions related to this)

Key Features of IMC: (3) Achieve Synergy

1. multiple messages must speak with a single voice 2. *Positioning statement:* encapsulates what kind a brand is intended to stand for in its target market's mind then consistently delivers the same idea across all media channels 3. A brand's positioning statement MUST: -present a clear idea of the brand in its target market's mind -Consistently deliver the same unified message across all media channels on all occasions.

Brand

: A name, term, sign, symbol, or design intended to *identify* the goods and services of one seller or groups of sellers and *differentiate* them from those of competition. -A brand is everything that one company's particular offering stands for in comparison to other brands in a product category. -Brand represents a set of values that its marketers, senior company officials, and other employees consistently embrace and communicate for an extended period

Brand concepts

: the specific meaning that brand managers create and communicate to the target market. -this is accomplished by appeals to functional, symbolic, and experiential needs

What is marketing?

:*human activity directed at satisfying needs and wants through exchange processes* :Marketing is the study and management of exchange relationships. The American Marketing Association has defined marketing as *"the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." * (She discussed 2 slides with definitions for marketing)

Integrated Marketing Communications (IMC)

:The coordination of the *promotional mix* elements with each other and with other elements of the brand's *marketing mix* such that all elements speak with *one voice.*

Brand equity

:The goodwill that an established brand has built up over its existence. (She noted that "this could create brand loyalty" and that it was going to be on the test)

Brand Adoption (aka "Product adoption")

:The introduction and acceptance of new ideas, including new brands Essential to long-term market success Marketing Communications - Facilitate successful new product introductions - Reduce the product failure rate (potentially 35-45%)

Revenue premium

:The revenue differential between a branded item and a corresponding private-labeled (store brand) item. b= Brand b pl= private-label item (understand it, she said it's probably not on the test)

Elements of Promotional Mix:(6) Direct marketing

:represents an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location. Direct response advertising involves the use of any of several media to transmit messages that *encourage buyers to purchase directly from the advertiser.*

Marketing Communications

:the collection of all elements of a firm's *marketing mix* that *facilitate exchange* by establishing *shared meaning* with the firm's customers. Marketing communications -> Business to business, business to customer, non-profits -*Marketing Mix*: specific collection of certain levels of elements of a brand's 4 P's- product, price, place and promotion The payoff from IMC is that brand managers achieve: *SYNERGY* o The integration of multiple communication tools and media yield more positive communication results than the tools used individually (she specifically mentioned synergy in the review over this topic)

Effective Segmentation

?

A Customer-Based Perspective on Brand Equity aka "brand knowledge"

A brand can be said to possess equity to the extent that people are familiar with the brand and have stored in memory favorable, strong, and unique brand associations (the particular thoughts and feelings that consumers have liked in memory with a particular brand). It consists of two forms of brand-related knowledge: 1. Brand image 2. Brand awareness

Basic Functions of Advertising: (2) Influencing (persuading)

Advertising influences prospective customers to try advertised products by *stimulating primary demand—demand for the entire product category, or secondary demand—demand for a specific company's brand.*

Basic Functions of Advertising: (3) Reminding and Increasing Salience

Advertising keeps a company's brand fresh in the consumer's memory. It makes a brand more salient by enriching the memory trace for the brand. Effective advertising also increases the consumer's interest in mature brands and thus the likelihood of purchasing brands that otherwise might not be chosen.

Basic Functions of Advertising: (1) Informing

Advertising makes consumers aware of new brands, educates them about a brand's distinct features and benefits, and facilitates the creation of positive brand images. It achieves this largely by *increasing consumers' top-of-mind awareness (TOMA)*.

Basic Functions of Advertising: (5) Assisting Other Company Efforts

Advertising's primary role is at times to facilitate other marcom efforts (e.g., used as a vehicle to deliver coupons and sweepstakes or assist sales representatives).

The brand awareness pyramid

Brands can have personalities just like people. The five *brand-related personality dimensions*: 1. Sincerity 2. Excitement 3. Competence 4. Sophistication 5. Ruggedness

Elements of Promotional Mix: (4) Digital marketing/social media marketing

DM: is the promotion of product and services over the Internet. SMM: refers to forms of electronic communication through which user-generated content (information, ideas, and videos) can be shared within the user's social network.

Key Features of IMC: (5) Affect behavior

Don't lose focus of the ultimate objective: *Affect Behavior* IMC must do more than just influence brand awareness or enhance consumer attitudes - the objective is to *move people to action.*

Good Brand

Evoking feelings of trust, confidence, security, strength, durability, speed, status, and many other desirable associations. (look at pages 31-44 for a good understanding of this topic)

Exchange

For *?* to occur, there must be... 1. *Two parties* and each party must... 2. have *something of value* to the other party, 3. be capable of *communication* and *delivery*, 4. be *free to accept/reject the offer*, and there must be an *agreement to terms*.

Basic Functions of Advertising: (4) Adding Value

Innovating, improving quality, and altering consumer perceptions. *Advertising adds value by influencing perceptions*. By making a brand more valuable, advertising generates incremental discounted cash flow (DCF)1. https://www.youtube.com/watch?v=X6BwCS9ORGk

Logo

Is a graphic design element related to a brand name Not all brand names are associated with a distinct logo

(extra info) A Firm-Based Perspective on Brand Equity

It focuses on outcomes extending from efforts to enhance a brand's value to its various stakeholders. As Brand Equity Increases... -A higher market share is achieved -Brand loyalty increases -Premium prices can be charged -The brand earns a revenue premium

Market Segmentation, Market Targeting, and Market Positioning

MS: -Identify bases (e.g., behavior, demographics) to segment the market -Develop profiles of resulting segments MT: -Develop measures of segment attractiveness -Select the target segment(s) MP: -Develop positioning for each target segment -Develop marketing mix for each target segment

(extra slide) Is marketing=selling?

NO

Advertising-to-Sales Ratio

Ranges from 0.1% to 60% (but average is 2% to 10%) -retailers (Walmart, Amazon, Home deopt, JC Penny) ranges from <0.1% to 3% -restaurants are a little more 1-4% -MOVIE INDUSTRY uses 60% (Important! lets us know how much to invest in advertising)

Leveraging Brand Meaning by other brands

She said to be able to compare!! (this picture from the slides is on another card too)

(additional picture for Brand Adoption)

The trier class: is the group of consumers who actually try a new product, the second step in which an individual become a new brand consumer. Repeater Class: ensure repeat purchases, which is a function of five primary forces - personal selling, advertising and social media, price, distribution, and product satisfaction.

Difficulty of Measuring Marcom Effectiveness: (3) collecting accurate data

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? (She only posted 2 questions related to this topic, no definition)

Advertising

a paid, mediated form of communication from an identifiable source, designed to persuade the receiver to take some action, now or in the future. Advertising expenditure---sales boom later! advertising momentum is like exercise (consistent invenstment spending is the key factor underlying successful advertising)

Brand Characteristics that Facilitate Adoption: (2) Complexity

an innovation's degree of perceived difficulty. The more difficult an innovation is to understand or use, the slower the rate of adoption.

Brand-related personality dimensions: (2) Excitement

brands scoring high on the excitement dimension are perceived as daring, spirited, imaginative, and up to date. ex. iPhone example from class

Brand-related personality dimensions: (3) Competence

brands scoring high on this personality dimension are considered reliable, intelligent and successful. ex. Cartier and Corvette examples from class

Brand-related personality dimensions: (4) Sophistication

brands that are considered upscale and charming score high on the sophistication dimension. ex. Cartier and Rolex examples from class

4. Geodemographics

consumers who reside within geographic clusters such as zip codes or neighborhoods *and also* share demographics and lifestyle similarities typical clusters -bohemian mix -suburban pioneers

1. Behavior segmentation (behaviorographics)

describes *how people behave* with respect to a particular product category or class of related products assumes that *the best predictor of future behavior is past behavior* -*online behavioral targeting:* tracks the online site-selection behavior of users so as to enable advertisers to serve targeted ads -privacy concerns: technological advancements increase the ability to serve consumers at risk of invading their privacy

2. Psychographics

describes aspects of consumers' psychological makeups and lifestyles as they relate to buying behavior in a particular product category -attitudes -values -motivations 2 examples: -Mindbase Segments -VALS Segments

Brand-related personality dimensions: (1) Sincerity

includes brands that are perceived as being down-to-earth, honest, authentic, wholesome, and cheerful. ex. Disney picture from class

Elements of Promotional Mix: (1) Advertising

is a paid, mediated form of communication from an identifiable source, designed to persuade the receiver to take some action, now or in the future. This includes mass media outlets such as television, magazines, newspapers, and out-of-home.

Elements of Promotional Mix: (5) Personal selling

is a paid, person-to-person communication in which a seller determines needs and wants of prospective buyers and attempts to persuade these buyers to purchase the company's products or services.

Brand awareness

is an issue of whether a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked. (Picture of "the brand awareness pyramid" attached from slides)

Elements of Promotional Mix: (2) Public relations (PR)

is an organizational activity involved with fostering goodwill between a company and its various publics (e.g., employees, suppliers, consumers, government agencies, stockholders).

Elements of Promotional Mix:(3) Sales Promotion

refers to all promotional activities (excluding advertising, public relations, personal selling, direct marketing, and digital marketing/social media) that stimulate short-term behavioral responses from (1) consumers, (2) the trade (e.g., distributors, wholesalers, or retailers), and/or (3) the company's sales force. -*Trade sales promotion*: includes using display allowances, quantity discounts, and merchandise assistance to activate wholesale and retailer responses. -*Consumer sales promotion*: includes the use of coupons, premiums, free samples, contests/sweepstakes, and rebates.

Brand image

represents the associations that are activated in memory when people think about a particular brand. These associations can be conceptualized in terms of type, favorability, strength, and uniqueness.

Brand-related personality dimensions: (5) Ruggedness

rugged brands are thought of as tough and outdoorsy. ex. Timberland, The North Face and Range Rover examples from class

Brand concept management/How Brand Concepts can be developed

the analysis, planning, implementation, and control of a brand concept throughout the life of a brand. How BC can be developed: 1. Functional needs (solving problems) 2. Symbolic needs 3. Experimental needs

Brand Characteristics that Facilitate Adoption: (5) Compatibility

the degree to which an innovation is perceived to fit into a person's way of doing things.

Brand Characteristics that Facilitate Adoption: (1) Relative advantage

the degree to which consumers perceive a new brand as being better than existing alternatives with respect to specific attributes or benefits. a new product offers (1) better performance compared to other options, (2) savings in time and effort, or (3) immediacy of reward

Brand Characteristics that Facilitate Adoption: (3) Observability

the degree to which the product user of a new brand or other people can observe the positive effects of new-product usage.

Brand Characteristics that Facilitate Adoption: (4) Trialability

the extent to which an innovation can be used on a limited basis prior to making a full-blown commitment.

Key Features of IMC: (1) Start with the customer or prospect

•*Consumer In Control*: the key reality for marcom programs is that the consumer increasingly wants to be in control •*Reduce dependence on the mass media*