Integrated Marketing Communication
Examples of companies using 4Cs well #3
Red Bull: -brand associates itself to the extremes (extreme sports, adrenaline, etc) -thoroughly adopted and popularized content marketing, engaging on all fronts, including social media -has introduced its content marketing around and about the product but is never directly correlated to drink itself -have built unique universe and community that keeps engaged and interested by providing high quality content (red bull signature series on youtube, fb)
Major Selling idea (J. Jewelet)
Should emerge as the strongest singular thing you can say about your product or service. This should be the claim with the broadest and most meaningful appeal to your target audience. Once you determine the message, be certain you can live with it; be sure it stands strong enough to remain the central issue in every ad and commercial in the campaign.
Michael Kors successful social media campaign #1
Stop hunger campaign: (partnered w UN food programme and partnered w Halle Berry) created limited ed. watch for cause. Donated 600k meals in 2013. Used twitter and insta with #watchhungerstop and donated money everytime hashtag was used. World hunger day t-shirt available in select cities...huge growth of followers
Marketing mix
The 4 p's (price, product, place, promotion)
What is culture (Hofstede)
The collective programming of the mind which distinguishes the members of one group from another
Brand Nirvana (from N. Klein 'No logo'
There's no competition, and you've got full synergy, full vertical integration, and there's no need for marketing.
Advertising Appeals
Two categories: 1) Informational/rational 2) Emotional
What about big brands eliminates customer choice (N. Klein 'No logo')
When companies become so embedded in the fabric of our minds it becomes impossible to separate what is the "created brand" from what we interpret and thus eliminates the choice consumers have. We literally cannot escape them.
NGO's can now speak on social media about brands
ex: VW had successful star wars campaign but Greenpeace parodied it bc of VW cover up
Creative Strategies (Goodby and Silverstein)
"Advertising works best when it sneaks into people's lives, when it doesn't look or feel like advertising. It's about treating people at their best, as opposed to dealing with them at their lowest common denominator."
Creative Strategies (L. Clow)
"No rule book will tell you how to target masses anymore. The best of us understand sociocultural realities of people and how they interact with the media. If we didn't, we couldn't make the kinds of messages that people would be able to connect with.
Creative Strategies (A. Vagoni)
"The modern creative kings don't write books, rarely give interviews or lay out their theories on advertising. They've endorsed no set of rules, professed no simple maxim like Mr. Ogilvy's famous "when you don't have anything to say, sing it". If pronouncements and books are out the window, what's replaced them is a conscious desire to lift the intelligence level of advertising. Today's leaders see advertising as an uplifting social force, as a way to inspire and entertain.
Michael Kors successful social media campaign #2
#fallinginlovewith campaign: -valentines day encouraged fans to upload photos of what they love to twitter, fb and insta -multi-faceted and successful -3000 ner followers/day
"Generation Like"
-"likes", "follows" and interactions are the currency of social media -marketers try to engage individuals belonging to groups to seem more human and broaden their scope -both the follower and the company benefit from generation like: customer feels they are personally valued and companies gain insight
Why people used social media to talk about companies (global customer service barometer)
-50% seek response from company to deal with service issue -48% praise company for good service/experience -47% share info with larger audience about company -46% vent frustration with bad experience -33% praise an individual working in company for great service experience
What unhappy customers expect from social media
-65% believe it is the best way to interact if they want to complain or need help -42% expect a response within an hour
Legal restrictions on ads example
-Alcohol -In France must mention negative health effects -advertising of all alcoholic beverages above 1.2% is prohibited on TV -alcohol companies cannot sponsor cultural and sports events -cannot be advertised on radio after midnight
Example of bad crisis response #2
-BP oil spill -communication was inaccurate and inconsistent -insensitive language was used -scapegoating, accidental, justification, compensation strategies used
Loosing control ted talk (Tim Leberecht)
-Companies need to manage the fact that they are loosing control by using the following techniques ("they have never been more in control of being less in control"): 1) Give consumers/employees more control 2) Give consumers/employees less control 3) Be beyond control
Corporate comm. vs. marketing comm.
-Corporate aim vs. marketing aim: building company reputation vs. brand building -corporate scope of comm. vs. marketing scope of comm.: company vs. product/service provided by company -corporate target audience vs. marketing target audience: multiple stakeholders vs. customers -corporate mode vs. marketing mode: multiple channels vs. defined set of channels -corporate creativity vs. marketing creativity: restrained vs. room for creativity -corporate consistency vs. marketing consistency: with corporate identity, image, philosophy vs. with product attributes and brand identity.
Gross Rating Points (GRP)
-GRP=reach (audience) x frequency (avg. frequency) -consider following media buy: 50% audience reached 1 time, 30% 5 times, 20% 10 times. -Avg. frequency=4 -Avg. frequency number can be misleading, and using it to calculate GRPs might result in underexposing the chosen audience
Corporate Social Responsibility
-Idea of double bottom line: a company makes profits while simultaneously contributing to society's well-being. - "cause related marketing" -centres the corporate brand on associations with good cause and corporations contributions to it -enhances reputation and have positive effects on employee motivation ex: ben and jerry's
Example of good crisis response
-Midwest Airlines -express sorry, extend sympathies -say what will happen as a result -state that safety is priority
Corporate Branding
-More and more companies are choosing to focus on marketing the entire organization rather than individual products and services. -the idea of an organization as a brand is a logical extension of the product branding approach -it reflects increasing interest in the corporation behind the brand, but also the recognition that the point of difference from competitor brands often rests on corporation values, technology or specific capabilities
Example of bad crisis response #1
-Quantum tech -"a lot of lives were lost in tuesday's tragedy and a lot of data was lost, too" -cold, unemotional, uninformative, etc.
Personal selling w. respect to promotional mix
-a form of person-to-person communication in which seller attempts to assist or persuade prospective buyers to purchase the company's product or service -interaction gives the marketer communication flexibility -used often by b2b businesses
Public Relations w. respect to promotional mix
-a management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest and executes a program of action to earn public understanding/acceptance. -main goal is to establish and maintain a positive image of the company among its various publics -uses publicity and other tools like special publications, participation in community activities, fund-raising, event sponsorship, etc. to enhance an organizations image and reputation
Stereotypes
-a perceptual and cognitive process in which specific behavioural traits are ascribed to individuals on the basis of their apparent membership in a group
The promotional mix
-advertising -direct marketing -interactive/internet marketing -sales promotion -public relations/publicity -personal selling
Positioning (J. Trout and Al Ries)
-advertising is used to establish or "position" the product or service in a particular place in the consumer's mind -can be done for products or brands as a whole
Inherent Drama (L.Burnett)
-advertising should be based on the foundation of consumer benefits with an emphasis on the dramatic element in expressing those benefits -greatly exaggerated ex: hallmark xmas ad
Option #1: Giving consumers/employees more control w. respect to "Loosing Control" (Tim Leberecht)
-allow them to start conversations while you listen and engage -allow them to contribute to the creation of ideas/content -allow them to set their own price (ex. radiohead "set your own price" album online sold more copies than any of their other albums) -change the value of transactions to interaction (chocolate store and KLM gifts) ex. patagonia says check out old products before buying new ones (setting the value) -research shows by giving employees more control they are happier and more productive (ex. brazilian company lets employees set their own work schedules and salaries) (ex. amazon and netflix have open vacation policies)
Advertising w. respect to promotional mix
-any paid form of communication about an organization, product, service or idea by an identified sponsor -media advertising remains the most cost-effective way to reach large numbers of consumers -advertising also remains one of the most powerful ways of building brand value
Creating w. respect to 4 C's of digital marketing
-anybody can create content; content created by marketers should be aimed not at selling a product, but driving conversation, enhancing loyalty and helping retain brand values
Is 3 hit theory still valid? (Jack Mayers)
-argued that it was valid in 70's when consumers only saw 1000 ads a day -not today, tho, because we see 5000 ads a day -suggested 12 exposures may be minimum level of frequency required
Initial crisis response best practices
-be quick and issue initial statement in 1st hour -accurate by carefully checking all facts -consistent by keeping spokespeople informed of events and key message points -make public safety #1 priority -use all available channels (internet, intranet, mass notification systems) -provide expression of concern/sympathy for victims -include employees in initial response -ready to provide stress/trauma counsling to victims of crisis and families, including employees
Publicity w. respect to promotional mix
-communications regarding an organization, product, service or idea not directly paired with or run under identifiable sponsor -usually comes in form of news story, editorial, press conference, films, online activities, etc. -company attempts to get media to cover or run favourable story on product, service, etc to cause awareness, knowledge, opinions and behaviours -advantage over other forms is credibility -disadvantage is that is never fully under control
Crisis Communication
-crisis is an event or issue that represents an immediate threat to an organization's operations and requires decisive and immediate action -can represent 3 interrelated threats: 1) public safety, 2) financial loss, 3) reputation loss
advertising w. respect to second class
-definition is the same (paid communication, etc). -most visible and prevalent element of promotional mix and a crucial part of IMC -marketers turn to ad agencies to develop, prepare, and implement their creative strategy since the agencies are specialists in the creative function of advertising
Unique selling proposition (R. Reeves)
-each ad must make a proposition to the consumer -the proposition must be one that the competition either cannot or does not offer -proposition myst be strong enough to move the milions -reeves suggests that the key benefit that forms the basis of the USP should dominate the ad and be emphasized through repetitive advertising
Connecting w. respect to 4 C's of digital marketing
-engage customers and create communities of shared interest
Tools for Neuromarketing
-fMRI to capture and measure activities in certain parts of the brain -eye tracking -heart rate, pulse, respiratory rate -facial coding, etc.
Message formats
-factual -scientific/technical evidence -demonstration -comparison -testimonial -slice of life (problem-solution) -animation -personality/character symbol -dramatization/story telling -humour -combination of the above
Informational/rational appeals
-focus on the consumer's practical, functional or utilitarian need for the product or service -the content emphasizes facts, learning, and the logic of persuasion -many rational motives can be used as a basis for advertising appeals, including comfort, convenience, economy, health and sensory benefits, quality, efficiency, performance, etc. ex. red bull "from a to b without any zzz's"
Option #2: Giving consumers/employees less control w. respect to "Loosing Control" (Tim Leberecht)
-give them less control to counter the abundance of choice and make them happier ex: nexposition tour guides (don't know where you're going til you get there) -force employees to help others because it increases their sense of productivity -less control/more choice=richer social interactions
Decision Paralysis
-grocery store displayed 24 types of jam and offered samples: 60% customers stopped to sample but only 3% made a purchase -next day displayed only 6 types: 40% stopped to sample, 30% made a purchase
Crisis Management
-handles all of the threats and attempts to minimize the negative impact on the stakeholders and on the organization -communication in times of crisis is essential as the crisis may call into question all previous communications and there is great risk of losing stakeholders' trust and damaging brand image and reputation
Option #3: Being Beyond Control w. respect to "Loosing Control" (Tim Leberecht)
-hyper-connectivity exposes companies so they must stay true to themselves as the "only sustainable value proposition" -authenticity and openness (although radical openness is ineffective because "if everything is open, nothing is open") -"smile" and remain open to whatever happens
Why BP had such bad crisis management conclusion
-ill-prepared and did not have a plan -spokespeople including the CEO were not trained well to withstand pressure and communicate with empathy which hurt their credibility -did not use social media efficiently and made it worse by buying up search results (making company look out of control) -unsuccessful attempts to stop leak couple with viral images of the damage made a devastating impact on their reputation
Michael Kors successful social media campaign #4 (insta)
-in 2013 insta ads launched (one of first luxury brands to participate) -not easy to sell items on insta -photo sharing platform doesn't allow links to users to investigate -engagement rates on insta are 15-25 times higher than fb and twitter -customers register from program with email address -when they like an insta they are emailed a link to product
Digital revolution
-in the old days: a command-and-control model with messages being issued from top of organization -web 2.0 and social media tech have fostered a more interactive and free-flowing conversation between various stakeholders -social media is less about control and more about proactive engagement and creating web-based communities of shared interests
Direct marketing w. respect to promotional mix
-involves a variety of activities such as: direct mail, mail-order catalogues, direct selling, telemarketing, direct-response ads. -direct-response ads are ads that encourage the consumer to buy directly from the advertiser ex: coupon to cut and mail, business reply card, toll-free telephone number, hotspot on internet to click.
Why do we stereotype and what are the dangers?
-its a means of simplifying the world, a shortcut -dangers include focusing on one trait/characteristic at the expense of others or intergroup variation
Successful examples of slogans
-just do it! -im loving it! -you're worth it!
Regulations/social/ethical considerations
-legal restrictions on ads -social and ethical: ads are part of popular culture and audiences are getting more divers. Ads should communicate inclusively and attempt to not offend any diverse groups
J. Kilbourne "Killing us Softly"
-main arguments that women are objectified in advertising -it has happened for decades and is still happening -consequences are that it affects young girls (eating disorders, depression, self-harm, etc). -counter examples: magic mike?
Sales promotion w. respect to promotional mix
-marketing activities that provide extra value or incentives to the sales force, the distributors or the ultimate consumer and can stimulate immediate sales. ex: coupons, rebates, contests, premiums, samples, etc. -can take up to 60-70% of promotional budget.
Reach vs. Frequency
-much debate over how many times seeing an ad makes it stick -1:1 exposure ration doesn't exist -Thomas Smith says 20 exposures necessary -usually situated bw 3-10 exposures -famous "3 hit" theory suggest 3 times necessary
Neuromarketing
-new form of market research that draws extensively on neuroscience to measure the emotional impact of marketing messages and to improve their effectiveness
Diversity and Advertising
-organizations now increasingly work with external stakeholders that are equally diverse so they must be culturally sensitive and adapt or they could loose audience/customers -good ex: HSBC the world's local bank
Opportunities of social media
-our lives provide goldmines of info to companies: personalized offers -companies can engage more directly with customers, employees and other stakeholders in more interactive and inclusive ways -company can present more humane image and have conversational tone -stakeholders can share ideas/experiences and organize action quickly and at scale. This means opportunities from WOM and peer-to-peer influence when individuals self-organize and may become advocates for the org.
4 p's of marketing reconsidered in an online world
-promotion: increased precision and accuracy -product: the focus on the product remained, but the user experience is vastly different when shopping online or researching online -place: fight for visibility online -price: the least affected, but more competitive offerings expected by customers
Social Media and internal communication
-redefines privacy bc employees have "freedom" to say anything about boss/company ex: server at applebees fired after posting customer receipt on social media, a social media manager at HMV live tweets layoffs from company account, teacher fired for tweeting naked twerk photos and drugs, etc.
Emotional appeals
-relate to customer's social and/or psychological needs for purchasing product or service -many consumers' motives for their purchase decisions are emotional, and their feelings about a brand can be more important than their knowledge of its features/attributes -ads often rely on the concept of emotional integration, whereby they portray the characters in the ad as experiencing emotional benefit or outcome from using a product or service ex: emporio armani "diamonds for men" shows a man surrounded by women bc of his cologne
How do companies react on social media?
-respond more quickly to positive as opposed to negative comments
How to measure the value of a follower/like
-several attempts -firm "Syncapse" releases annual reports on question since 2010 -2013 they said avg. value of fb fan is $174 (28% up from 2010) -varies for brands
United Colors of Benetton
-shocking, emotional ads with big content -failed to communicate values to staff -did not connect ad messages with company objectives (seemed inauthentic)
Curating w. respect to 4 C's of digital marketing
-social media managers are curators of content in that they sift through enormous amounts of info and pre-select the pieces they think will be of interest and relevance to their target audience
Which is more effective: emotional or rational
-study of 880 campaigns found purely emotional content is nearly 2 times a likely to generate large profit vs. purely rational -emotional works so well by reducing price sensitivity and strengthening the ability for brands to charge premiums
Challenges of social media
-tech developments move quickly so its hard to keep up -increasing expectation for transparent and authentic communication on part of various stakeholder groups -almost impossible to control flow of info so the org is no longer the only actor that is actively producing messages about the org.
Greatest difference bw. traditional and neuromarketing
-the former relies on consumer's self-evaluation whereas the latter one tries to capture physical and physiological changes in one's body/brain
Key benefit claim
-the purpose of the big idea is to cut through the clutter -advertisers focus on communication the key benefit claim which refers to the benefit thought by the advertiser to be the key to selling the product -must be conveyed dramatically and effectively
How we learn to stereotype
-through the process of socialization -we learn and assimilate the dominant ideologies of a given society -unconscious and happens early age -agents of socialization: school, family, church, et. -mass media is a very powerful agent of socialization
BP failure on social media in crisis
-used it only as an information source -no interactions on almost any platform -used youtube but used it as ads instead of apologies, etc. -individuals at the company were saying terrible things and BP wasn't managing it
Social Media
-websites and applications that enable users to create and share content or to participate in social networking. -the rise of social media means we are constantly connected and info is much faster -opportunities for companies to connect more efficiently but challenges in terms of what will be positively received and negatively received (with trends and individuals vs. groups)
Culture w. respect to 4 C's of digital marketing
-your brand must be part of the larger culture and evolve constantly
4 Cs of digital marketing
1) Creating 2) Curating 3) Connecting 4) Culture
Evaluating Campaigns: ROI
1) Relevance 2) Originality 3) Impact
Sales promotion 2 major categories w. respect to promotional mix
1) consumer-oriented activities 2) trade-oriented activities
"3 hit theory" for frequency/exposure
1) first time you gain consumers' awareness 2) second time you show the relevance of the product 3) third time you show its benefits
Wally Olins Framework of companies
3 Identity structures of companies: 1) Monolithic 2) Endorsed 3) Branded
Breakdown of communication
55% facial expressions and body language 37% tone of voice 8% words themselves
Lifestyle branding (from N. Klein 'No logo')
A lifestyle brand is a company that markets its products or services to embody the interests, attitudes, and opinions of a group or a culture. Lifestyle brands seek to inspire, guide, and motivate people, with the goal of their products contributing to the definition of the consumer's way of life.
Corporate communication
A management function that offers a framework for the effective coordination of all internal and external communication with the overall purpose of establishing and maintaining favourable reputations with stakeholder groups.
Communication
A process of conveying information through the exchange of ideas, feelings, attitudes etc. through speech, gestures, behaviour, writing and other means
Marketing
A process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
Integrated Marketing communication (Don Schultz)
A strategic business process used to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time with consumers, customers, prospects, employees, associates, and other targeted relevant internal and external audiences. The goal is to generate both short-term financial returns and build long-term brand and shareholder value.
Example of companies that embody the "golden circle" (S. Sinek)
Apple, Bernie Sanders, Starbucks, etc.
Brand/Brand Identity
Brand identity is a combination of many factors including the name, logo, symbols, design, packaging, and performance of the product or service as well as the image or types of associations that come to mind when consumers think about a particular company or product. About offer customers added value.
Examples of companies using 4Cs well #5
Cadbury "thanks a million": -showed appreciated for online followers after hitting 1m
Example of companies that communicate successfully without the "golden circle" (S. Sinek)
Charmin ultra (toilet paper) they start with the features because its a product that is almost entirely feature based.
Examples of companies using 4Cs well #2
Coke: -send a pic of yourself drinking it to be featured in collage ad
Reputation (Fombrund and Van Riel)
Companies with strongest reputations are characterized by high levels of: -visibility -distinctiveness -authenticity -transparency -consistency
Endorsed structure w. respect to Wally Olins Framework
Definition: businesses and product brands are endorsed or badged with the parent company name ex: general motors, kellogg, nestle
Branded structure w. respect to Wally Olins Framework
Definition: individual businesses or product brands each carry their own name (and are seemingly unrelated to each other) ex: procter and gamble, unilever, loreal, LVMH
Monolithic structure w. respect to Wally Olins Framework
Definition: single all-embracing identity (products all carry the same corporate name) ex: sony, BMW, Virgin, Philips
First companies to sell a lifestyle (N. Klein 'No logo')
Disney, IKEA, Patagonia, etc.
Exposure (J. Ostrow)
Establishing frequency goals for an advertising campaign is a mix of art and science but with a definite bias toward art.
Michael Kors successful social media campaign #3 (fb)
FB exclusives: -created exclusive line devoted to 1 social media channel -2012 reached 5M fans--released 500 pairs of limited edition zebra-print sneakers exclusively available to FB fans
Major Selling idea (David Ogilvy)
I doubt if more than one campaign in a hundred contains a big idea. I am supposed to be on of the more fertile inventors of big ideas, but in my long career as an advertiser I have not had more than 20, if that.
What is the "golden circle" (S. Sinek)
Instead of traditional marketing where people are feature/product centered, the golden rule suggests that people are successful when they start with the idea and the feeling and work outwards. After "why" people move to "how"--products are not the most important aspect, you have to appeal to people's values. Finally, the "what" stage is just the manifestation of the final product. (centre=why, middle=how, outer circle=what)
Examples of companies using 4Cs well #4
Michael Kors: -has gained avg. of 50,000 fans per week in 2013 across all social media -capitalized on subtle diffs bw each social media platform--adapts content to offer diversity to fans -uses social media to promote itself as a lifestyle brand
Brand image w. respect to class 2 (Ogilvy)
Ogilvy explains that the idea here is that "every ad should be thought of as a contribution to the complex symbol which is the brand image". Which means the brand is the aggregate of all their communications
Examples of companies using 4Cs well #1
Oreo: -fairly boring product but fun regular content online, where users are actively invited to participate -wonderfilled campaign -snack hacks