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Advertising and Integrated Brand communication
M.R MahmoothMBA, MSc, Chartered Marketer
Contents
• What is advertising• Why advertising • What is IBC• The key characteristics of advertising • Key characteristic of IBC
Advertising
• Definition – A Paid mass-mediated attempt to persuade (disseminate information)
• The company who pays – Client/Sponsor • Is Publicity an mode of Advertising???• For Example -
Marketing Communications mix
• Advertising• Direct marketing• Sales Promotion• Personal selling• PR and Publicity Each of these has its own uses and limitations
and hence a judicious mix is employed by most companies.
Integrated Marketing Communications
• This brings about synergy and better use of communication funds
• Balancing the ‘push’ and ‘pull’ strategies• Improves the company’s ability to reach the
right consumer at the right place at the right time with the right message.
So what are the key characteristics for a good communication/Advert
Different methods of Advertising
• What is Marketing
You see a gorgeous girl at a party. You go up to her and say, "I am very rich. Marry me!"
That's
=Direct Marketing=
• You're at a party with a bunch of friends and see a gorgeous girl. One of your friends goes up to
her and pointing at you says,
"He's very rich. Marry him."
That's
=Advertising=
• You see a gorgeous girl at a party.
You go up to her and get her telephone number.
The next day you call and say, "Hi, I'm very rich. Marry me."
That's
=Tele Marketing=
• You're at a party and see a gorgeous girl. You get up and straightenyour tie; you walk up to her and pour her a
drink.
You open the door for her, pick up her bag after she drops it, offer hera ride, and then say, "By the way, I'm very rich "Will you marry me?"That's
=Public Relations=
You're at a party and see a gorgeous girl. She walks up to you and says,"You are very rich, I want to marry you."
That's
=Brand Recognition=
• You see a gorgeous girl at a party.
You go up to her and say, "I'm rich. Marry me"
She gives you a nice hard slap on your face. That's
=Customer Feedback=
¿How would you like to travel on your vacations this year?
¿This way..??
The Communications Process
Sender EncodingMessage Media Decoding Receiver
ResponseFeedback
Noise
Marketing Communications mix
• Advertising• Direct marketing• Sales Promotion• Personal selling• PR and Publicity Each of these has its own uses and limitations
and hence a judicious mix is employed by most companies.
Integrated Marketing Communications
• This brings about synergy and better use of communication funds
• Balancing the ‘push’ and ‘pull’ strategies• Improves the company’s ability to reach the
right consumer at the right place at the right time with the right message.
Distortions in Communication
• Selective attention• Selective distortion• Selective retention
Factors influencing effectiveness of communications
• when the recipient’s source of communication is single
• When message is in line with recipients opinions and beliefs
• When issues are unfamiliar or peripheral issues• When the source is an expert, of high status, likeable,
has power and can be identified with• When social context or reference group will mediate
the communication and influence acceptability
Communications model
• AIDA model• The hierarchy of effects model• The innovation – adoption model
AIDA Model
Attention
Interest
Desire
Action
Marketing Communication
• Factors influence Marketing Communications
1. Changing Consumers• The availability of information and increased resistance in
mass-market broadcasting
2. Changing Marketing Strategies • Fragmented market and more personalised marketing
strategies
3. Changes in Technology • e.g. Internet, Mobile, Ipod, Satellite & Cable
Armstrong and Kotler (2009) Chpt 12
IMC: Mix and Match
• Integrated Marketing Communication
– A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organisation are relevant to that person and consistent over time
American Marketing Association
Communication Mix Strategies
• Two basic strategies
– Push Strategy
• Pushing the product through marketing channels to final consumers
• Personal selling and trade promotion are relatively emphasised
ProducerRetailers and Wholesalers Customers
Marketing Activities
Marketing Activities
Communication Mix Strategies
• Two basic strategies
– Pull Strategy
• Producer direct its marketing activities directly to consumers to induce their demand for the product
• Advertising and promotion are relatively emphasised
ProducerRetailers and Wholesalers Customers
Marketing Activities
38
Marketing Communications at the Brand Level
This is the key means for
differentiating one company’s offering
from another’s
A well-known and respected brand is an invaluable asset
Brand
A successful brand can create barriers to entry for
competitors
Factors influencing effectiveness of communications
• when the recipient’s source of communication is single
• When message is in line with recipients opinions and beliefs
• When issues are unfamiliar or peripheral issues• When the source is an expert, of high status, likeable,
has power and can be identified with• When social context or reference group will mediate
the communication and influence acceptability
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–40
Introduction to Marketing Communications (Marcom)
Business-to-Consumer(B2C)
Business-to-Business(B2B)
Integrated MarcomB2C&B
Integrated Marketing Communication (IMC)
Programs
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–41
The Tools of Marketing CommunicationsTable 1.1
Source: Adapted from Figure 1.1 in Kevin Lane Keller, “Mastering the Marketing Communications Mix: Micro and Macro Perspectives on Integrated Marketing Communication Programs,” Journal of Marketing Management 17 (August, 2001), 823–851.
1. Media Advertising• TV• Radio• Magazines• Newspapers
2. Direct Response and Interactive Advertising
• Direct mail• Telephone solicitation• Online advertising
3. Place Advertising• Billboards and bulletins• Posters• Transit ads• Cinema ads
4. Store Signage and Point-of-Purchase Advertising
• External store signs• In-store shelf signs• Shopping cart ads• In-store radio and TV
5. Trade- and Consumer-Oriented Promotions
• Trade deals and buying allowances
• Display and advertising allowances
• Trade shows• Cooperative advertising• Samples• Coupons• Premiums• Refunds/rebates• Contests/sweepstakes• Promotional games• Bonus packs• Price-off deals
6. Event Marketing and Sponsorships
• Sponsorship of sporting events
• Sponsorship of arts, fairs, and festivals
• Sponsorship of causes7. Marketing-Oriented Public
Relations and Publicity8. Personal Selling
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–42
The Integration of Marketing Communications
• Why Not Integrated?– Tradition of separation communication tools– Influence of specialized outside suppliers– Managerial perception
• Fear of budget cutbacks
– Resistance of outside suppliers to broadening their functions
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–43
The Integration of Marketing Communications (cont’d)
• IMC and Synergy– Using multiple communication tools in
conjunction with one another can produce greater results (synergistic effects) than tools used individually and in an uncoordinated fashion.
45
MarCom Outcomes
Enhancing Brand Equity Affecting Behavior
Outcomes
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–46
Five Key Features of IMCTable 1.2
1. Start with the customer or prospect.
2. Use any form of relevant contact or touch point.
3. Speak with a single voice.
4. Build relationships.
5. Affect behavior.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–47
Key IMC Feature # 1
• The Consumer or Business Customer Must Represent the Starting Point for All Marketing Communications Activities– Consumers in Control
• Outside-in approach: learn the media preferences and lifestyles of customers/prospects to know the best contexts to reach them with brand messages.
– Reduced Dependence on Mass Media• Consumers are increasingly in control of their media
choices for acquiring information about brands.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–48
Selecting the Appropriate Marcom Tools
Identify Marcom Program Goals
Determine Best Way to Allocate
Marketing Budget
Media-Neutral Approach
Courtesy of WISK®, Unilever United States, Inc.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–49
Key IMC Feature # 2• Use Any and All Marcom Tools
That Are Up to the Task– 360-Degree Branding
• A brand’s touch points should be everywhere the target audience is.
– Not All Touch Points Are Equally Engaging
• Surround customers/prospects with the message, but not to the point of being irritatingly present.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–50
Key IMC Feature # 3• Multiple Messages Must Speak
with a Single Voice– 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.
© Richard B. Levine / Newscom
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–51
Key IMC Feature # 4• Build Relationships Rather
Than one off engagement– Loyalty programs promote long-
term relationships between customers and brands that lead to customer retention.
– Experiential marketing programs can create brand experiences that make positive and lasting impressions on customers.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–52
Key IMC Feature # 5
• Don’t Lose Focus of the Ultimate Objective: Affect Behavior– The goal of IMC is to influence the target audience
in such a way that the audience engages in a specific desired behavior.
– The effectiveness of an IMC program is judged by its success in terms of its ultimate influence on behavior.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–53
Obstacles to Implementing IMC
• Integration requires tight coordination among all elements of a marcom program.– Few providers of marketing communication
services have the diversity of skills required to execute an IMC program.
– Direct-to-customer advertising is more difficult than a mass media campaign.
– The greatest challenge is making sure that all marcom tools are consistently executed.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–54
Marketing Communications
• Marketing Communications’ Objective– To enhance brand equity by moving customers to
favorable action toward the brand—trying it, repeat purchasing it, and becoming loyal toward the brand.
• Brand Equity– The degree to which consumers favorably perceive
the brand’s features and benefits as compared to competitive brands and how strongly these views are held in memory
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–55
Making Brand-Level Marcom Decisions and Achieving Desired Outcomes
Figure 1.1
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1–56
Fundamental Marcom Decisions
Targeting PositioningSetting
ObjectivesBudgeting
Fundamental Marcom Program
Decisions
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–57
Fundamental Marcom Decisions (cont’d)
Top-down(TD)
Bottom-up/Top-down(BU/TD)
Top-down/Bottom-up(TD/BU)
Bottom-up(BU)
Budgeting Procedures
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–58
Fundamental Marcom Decisions: Commit-to-Memory Mantra
1. Directed to a specifictarget market
2. Clearly positioned
3. Created to achieve a specific objective
4. Undertaken within budget constraints
All marketing communications
should be:
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–59
Marcom Implementation Decisions
MixingElements
CreatingMessages
SelectingMedia
EstablishingMomentum
Marcom ProgramImplementation
Decisions
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–60
A Buy-One-Get-One-Free Promotion
Figure 1.2
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–61
Marcom Outcomes
Enhancing Brand Equity
Affecting Behavior
Marcom Outcomes
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
1–62
Marcom Program Evaluation
Measuring Resultsfor Accountability
BehavioralImpact
Communication Outcomes
Providing Feedback
Taking Corrective Action
Greater InvestmentDifferent
Communication Combinations
Revised StrategyRevised Allocations
Marcom Program Implementation