Topic One: Overview

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Topic OneOverview Social Responsibility,
Environmental Analysis and Branding

• Advertising Management
• Session 1

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The Importance of Integrated Marketing
Communications

• Highly competitive global marketplace
• Need to invest marketing dollars wisely
• Firms are demanding accountability
• Changing role expectations of marketing
• Relationship marketing
• Loyalty marketing
• Database marketing
• Internal marketing

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Marketing Mix

• Product
• Price
• Distribution
• Promotion

• What the consumer wants/needs
• What will it cost to satisfy that want/need?
• How do we make it convenient to buy?
• How do we communicate this?

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Marketing Mix

• Product
• Differential advantages easily duplicated or
  offset
• Virtually no learning curves
• Distribution
• Easily replicated
• Price
• Market efficiency means margins pared to the bone.

• Promotions
• Make all the difference
• Product is perception
• Company
• Products
• Relationships

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Items to be Included in an IMC Program

• Company logo
• Product brand name and company name
• Business cards
• Letterhead
• Carry home bags (paper or plastic)
• Wrapping paper
• Coupons
• Promotional giveaways (coffee mugs, pens,
  pencils, calendars)
• Design of booth for trade shows
• Advertisements (billboards, space used on cars
  and busses, television, radio, magazines and
  newspapers)
• Toll free 800 number
• Company database

• Cooperative advertising with other businesses
• Personal selling pitches
• Characteristics of target market buyers
• Characteristics of business buyers
• Sales incentives provided to sales force
  (contests, prizes, bonuses and commissions)
• Internal messages
• Company magazines and newspapers
• Statements to shareholders
• Speeches by company leaders
• Public relations releases
• Sponsorship programs
• Web site

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Relationship Marketing

• The development, growth, and maintenance of
  long-term, cost-effective exchange relationships
  with individual customers, suppliers, employees,
  and other partners for mutual benefit.

Advocate
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Components of a Corporate Image
Intangible Elements
Tangible Elements

• Goods/services sold.
• Retail outlets.
• Factories.
• Advertising, promotions, and other forms of
  communications.
• Corporate name/logo.
• Employees.

• Corporate, personnel, and
  environmental policies.
• Ideals and beliefs of corporate
  personnel.
• Culture of country location of the
  company.
• Media reports.

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Role of Corporate Image

• Consumer perspective.
• Business-to-business perspective.
• Company perspective.

• Creating the right image.
• Rejuvenating an image.
• Changing an image

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Why Logos?

• Aids in recall of specific brands.
• Aids in recall of advertisements.
• Reduces shopping effort.
• Reduces search time and evaluation of
  alternatives.

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Test for Effective Logos

• Recognizable.
• Familiar.
• Consensual meaning.
• Positive feelings.

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Branding Terms

• Brand
• Brand name
• Brand mark
• Trade character
• Trademark

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Why Branding?

• Identifies firm, product
• Repeat purchases
• Promotes loyalty
• Reduces feelings of risk
• New products in line
• Resellers
• Evaluate quality

• Helps price
• Reduced need for price comparisons
• Premium pricing (?)
• Helps advertising
• Line cohesion
• Helps segment
• Self-expression

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Some Definitions

• Brand awareness
• Consumers call it to mind when thinking about the
  product category (recognition)
• Brand image
• The impression a consumer has about the
  characteristics of a particular brand
• Brand loyalty
• Customers favorable attitude towards a specific
  brand
• Brand equity
• Marketing and financial value associated with a
  brands strength

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Building Brand Equity

• Research current brand image.
• Decide what makes the brand unique.
• Communicate brands uniqueness.
• Spend heavy on advertising.
• Make domination the goal.
• Deliver on uniqueness.

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Types of Brands

• Family brands
• Brand extensions
• Flanker brands
• Co-branding
• Ingredient branding
• Cooperative branding
• Complementary branding
• Private brands
• Generic brands

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Corporate Social Responsibility Pyramid
LEGAL
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Regulating Marketing Communications

• Unfair and deceptive marketing practices
• Lanham Act (1947)
• An advertisement or communication is deceptive or
  misleading if
• A substantial number of people or typical person
  is left with false impression or
  misrepresentation.
• The misrepresentation induces people or the
  typical person to make a purchase.
• Deception vs puffery

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Ethics and Social Responsibility In Marketing
Communications
Morals vs. Ethics

• Morals beliefs or principles that individuals
  hold concerning what is right or wrong
• Ethics principles which serve as operational
  guidelines for both individuals and organizations

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Ethical Issues in Advertising

• Causes people to buy more than they can afford.
• Creates false needs.
• Overemphasizes materialism.
• Increases the costs of goods and services.
• Perpetuates stereotyping.
• Offensive advertisements.
• Advertisements linked to bad habits and intimate
  subjects.
• Use of unfair tactics.
• Deceptive and misleading advertisements.
• Advertising of professional services.
• Advertising to children.
• Salespeople use deceptive practices.

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Examples of Socially Responsible Activities
Image Destroying Activities
Image Building Activities

• Discrimination
• Harassment
• Pollution
• Misleading communications
• Deceptive communications
• Offensive communications

• Employee empowerment
• Diversity
• Charitable contributions
• Sponsoring local events
• Selling environmentally safe products
• Outplacement programs
• Support community events

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Cause-Related Marketing

• Support of a social cause through financial
  transactions with the firms customers.
• Cause-related marketing studies
• 83 of consumers have a more positive image of
  companies that support causes the customer cares
  about.
• Most Americans believe companies should have a
  positive impact on environment and community.
• 76 willing to switch to a brand that supports a
  cause they believe in if price and quality
  perceived equal.

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Green Marketing

• Green marketing is the development and promotion
  of products that are environmentally safe.
• Only 10 strong supporters, most give only lip
  service.
• Initial response poor because of higher prices
  and inferior product quality.

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Other Socially Responsible Marketing

• Diversity
• Consumerism
• Community Relations

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Marketing Mix - Controllables
Product
Promotion
Price
Distribution
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Marketing Environment
PRESCOM
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Environmental Trends

• Verbal versus visual
• Functional illiteracy
• Media fragmentation
• Growth of the value and importance of perceptions
  rather than facts.