Integrated Marketing Communications (IMC) Exam 1

Integrated Marketing Communications
The coordination of the promotional mix elements with each other and with the elements of the brands marketing mix such that all elements speak with one voice
-Goal: Achieve synergy
5 key features of IMC
1. Start with customer or prospect
2. Use any form of relevant contact
3. Speak with a single voice
4. Build relationships
5. Affect behavior
Marketing
Human activity directed at satisfying needs and wants through exchange processes
Marketing Mix
Product, Price, Place, Promotion
Brand Identity
A combination of: Name, logo symbols, design, packaging, performance, and images/associations
Why not always integrated?
Why is it more difficult to target audiences and communicate effectively?
Elements of Promotional Mix
-Advertising
-Direct Marketing
-Online/Social Media Marketing
-Sales Promotions
-Publicity/Public Relations
-Personal Selling
Push vs. Pull Strategy
Push: Going to the retailers, discounts
Pull: Motivating consumers, creating demand
Brand Equity
Organization Perspective: The goodwill that an established brand has built up over time

Customer Perspective: The extent that people are familiar with the brand and have favorable, strong, and unique brand associations

Outcomes/Benefits of Higher Brand Equity
-Higher market share
-Higher brand loyalty, consumer loyalty
-Able to charge premium prices
-Earning a revenue premium
-Long-term growth and profitability
-Maintain differentiation
-Insulate brand from price competition
Brand
Exists when a marketing entity receives its own name, term, sign, symbol, design, or a combination of these things to identify itself and differentiate from competition
Brand Awareness
You know the brand exists
Brand Awareness Pyramid
Top to Bottom:
-Top of Mind
-Brand Recall
-Brand Recognition
-Unaware of Brand
Brand Image
The associations that are activated in memory when people think about a particular brand
-You recognize the symbol or logo for the brand
-Example: Nike Checkmark
Types of Brand Image – Attributes
Color, size, design, price
Example: McDonalds Golden Arches = cheap
Types of Brand Image – Benefits
1. Functional: intrinsic value
Example: Dollar Menu at McDonalds
2. Symbolic: extrinsic value
Example: Belonging or fitting in
3. Experiential: usage imagery
Example: sensory pleasure, fun, excitement, cognitive stimulation
Product Adoption
The introduction and acceptance of new ideas, including new brands
-Essential to long-term market success
Brand Knowledge Consists Of..
A function of awareness, which relates to consumers’ ability to recognize or recall the brand, and image, which consists of consumers’ perceptions and of associations for the brand.
-Brand awareness and image
Brand Recognition
Recognizing it when you see it
Brand Recall
Yelling out brands for a category
5 Dimensions of Brand Personalities
1. Sincerity
2. Competence
3. Ruggedness
4. Sophistication
5. Excitement
Sincerity
Down-to-earth, honest, family
Example: Chick-Fil-A or Campbell’s
Competence
Reliant, intelligent, successful, good quality
Example: Honda
Ruggedness
Tough, Outdoors, Durable
Example: Jeep, Ford, Chacos
Sophistication
Prestige, upper class
Example: Rolex
Excitement
Daring, current
Example: GoPro or Redbull
Ways to Enhance Brand Equity
1. Speak for itself
2. Message Driven
3. Leveraging
Leveraging to Enhance Brand Equity
Create meaning and associations for their brands by connecting them with other objects that already possess well-known meaning.
Example: Heineken and Skyfall, Doritos and Taco Bell, Adam Levine and ProActive
Sources to Leverage Brand Meaning
1. People: employees, endorsers
2. Places: country of origin, channels
3. Things: events, causes, third party
4. Other Brands: alliances, company, extensions, ingredients
Characteristics of Good Brand Name
1. Distinguish the Brand from Competitive offerings
-Trademarks prevent brands from legally having the same name
-Unique names that provide brand with a distinct identity

2. Facilitates Consumer Learning of Brand Associations
-Brand names can serve as memory cues
-Help recall product attributes and benefits

3. Achieve compatibility with Brand’s Desired Image and with its Product Design or Packaging
Ex: Publix “green wise”

4. Be memorable and easy to Pronounce
Ex: tide, bold, shout, edge, bounce, cheer, swatch, smart. Zune, nike, Coke, Crocs

5. Is suitable for Global Use- make sure it translates well.

Metrics Used to Measure MARCOM Effectiveness
1. Change in brand awareness
2. Improvement in attitudes toward the brand
3. Increased purchase intentions
4. Larger sales volume
Brand Characteristics That Influence Adoption
1. Relative Advantage
2. Compatibility
3. Complexibility
4. Trialability
5. Observability
Relative Advantage
Degree to which consumers perceive a new brand as being better than existing alternatives
Compatibility
Degree to which an innovation is perceived to fit into a persons way of doing things.
Complexibility
Degree of perceived difficulty
-The harder it is to understand or use, the slower the adoption rate
Trialability
Extent that an innovation can be used on a limited basis prior to making a full blown commitment
-Brands that lend themselves to trialability are adopted faster
Observability
Degree to which the user can observe the positive effects of new-product usage
-The Higher the better!!
Market Segmentation
The process of selecting a subset of consumers from a larger market
-Identify bases (e.g., behavior, demographics) to segment the market
-Develop profiles of resulting segments
Market Targeting
-Develop measures of segment attractiveness
-Select the target segment(s)
Market Positioning
-Develop positioning for each target segment
-Develop marketing mix for each target segment
Roles of Logos
-Graphic design element
-A shorthand way of identifying a brand
-Can be used with or without brand names
Trade-Dress
The way you dress a product using elements that aren’t register able to a trademark – not distinctive by themselves but important to your product
-eight red stitches on the hat
Four Segmentation Bases & Variables Used
1. Behavior Segmentation
2. Psychographics (AIOs)
3. Demographics
4. Geodemographics
Major Demographic Aspects
-Age
-Change in household composition
-Ethnic population developments
Cohort Effect
Tendency of members of a generation to be influenced and bound together by significant events in their formative years
-9/11, Technology boom, etc
-I am in Generation Y
Five Criteria for Effective Segmentation
Concentrated Strategies
Targeted to one specific market segment or audience
Differentiated Strategies
When a company creates campaigns that appeal to at least two market segments or target groups.
Classic Model of Communication
Brand Positioning (based on attributes/benefits)
The key feature, benefit, or image that the brand stands for in the target audience’s collective mind
Positioning Statement
The central idea that encapsulates a brand’s meaning and distinctiveness vis-à-vis competitive brands

1)Conveys a consistent message
2) Defines a brand competitive advantage
3) Motivates customers to action

Product Related Attributes
Like safety features or design
Usage and User Imagery (Non-product related attributes)
Sexualized ads
Functional Benefits
Providing a solution to a problem – price, design, color, etc.
Symbolic Benefits
Feelings of belonging, self-worth or image, emotional connection
Experiential Benefits
Appealing to consumers to desire for products that provide some sensory pleasure or variety -out of the ordinary, typically seen in products with high sensory appeal
Marketing Messages – Semiotic Perspective
Object –> Sign/Symbol –> Interpretant
Example: Thumbs up
Meaning Transfer
Socialization
The process through which people learn cultural values, form beliefs, and become familiar with the physical manifestations, or artifacts, of these values and beliefs
Brand Repositioning
Why?
-Increase competitiveness
-Extend product life cycle
-Refresh brand image
-Enter new market segments
How Consumers Process Info (2 perspectives)
1. Consumer Processing Model: Head
Information and choice are a rational, cognitive, systematic and reasoned process
2. Hedonic Experiential Model: Heart
Consumers’ processing of marcom messages and behavior are driven by emotions in pursuit of fun, fantasies, and feeling
Consumer Processing Model Stages
1. Exposure to info
2 Selective attention
3. Comprehension
4.Agreement
5.Retention in memory
6.Retrieval
7. Consumer decision making
8. Action
Use of Figurative Language
Similie
A comparison using like or as
Metaphor
A comparison not using like or as
Ex: Wheaties – the breakfast of champions
Allegory (extended metaphor)
Equates objects in a narrative with meanings lying outside narrative
Example: Geico cavemen
Personification
Abstract qualities assume positive human characteristics
Examples: Joe Camel, Cavemen, BK King, Mr. Clean, Mr. Goodwrench, Geico Gecko, The Michelin Man, Pillsbury Dough Boy, Charlie the Tuna
Difference Between 2 Schools of Thought on Advertising’s Role in Economy
5 Basic Advertising Functions
1. Informing
2. Influencing/persuading
3. Reminding and increasing salience
4. Adding value
5. Assisting other company efforts
4 Functions or Services Ad Agencies Can Provide
1. Creative Services
2.Media Services
3. Research Services
4. Account Management
Creative Services
-Develop advertising copy and campaign
-Copywriters, production staff, graphic/digital artists, creative directors
Media Services
-Selecting the best advertising media
-Media Planners: develop overall media strategy
-Media Buyers: Procure the selected media
Research Media
-Study clients and customers buying habits, purchase references, and responsiveness
-Focus groups, mall intercepts, online studies,
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
Share of Voice
How much a firm spends on advertising relative to other brands in the category
Share of Market
The predicted market share of a firm based on its advertising spending in comparison to the total level of advertising by all firms in its category
Elasticity and its Role in Ad Investment Considerations
Elasticity: A measure of how responsive the demand for a brand is to changes in marketing variables such as price and advertising
4 Situations Discussed to Increase Profit and Relationship to Elasticity
1. Maintain Status Quo (Ep, Ea both inelastic)
2.Build Image Via Advertising (Ea elastic and > Ep)
3. Grow Volume via Price Discounting (Ep elastic and > Ea)
4. Increase Advertising and/or discount prices (Ep, Ea both elastic)