Integrated Marketing Communications

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Integrated Marketing Communications

• Professor Carl Mela
• BA 460 Product Management
• Fuqua School of Business

• Brand Management System
• On Building A Brand
• Managing Across Brands

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Agenda

• Elements of Integrated Communications
• Developing the Communications Plan

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Elements of Communications

• Advertising
• Creates favorable associations, but does it work?
• Sales Promotion
• Event Marketing
• PR and Publicity
• Personal Selling

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Ignoring Commercials?

• How many ads is a typical American exposed to in
  a single day?

Source USA Today 2/23/99
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Ignoring Commercials?

• How many ads is a typical American exposed to in
  a single day?

• How many people think they saw
• of Ads Men Women
• 1-30 15 25
• 31-50 20 25
• 51-100 30 27
• 101-300 18 15
• 301 17 9
• Actual 270

Source USA Today 2/23/99
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Your Marketing Strategy Drives Your Advertising
Strategy

• Marketing strategy
• What benefit is being offered MESSAGE
• Who is the target segment AUDIENCE
• Advertising strategy
• How do we convey the message effectively
  CREATIVE STRATEGY
• How do we get to the audience effectively MEDIA
  PLANNING

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Promotional Planning for Brand Equity

• 1. Identify the target market
• 2. Establish objectives
• Establish brand in memory and create strong,
  favorable, and unique associations

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Brand Associations Exist at Several Levels

• Brand Objectives
• maintain awareness increase share
• focus on selective demand (i.e., pick us over a
  competitor)
• Category Objectives
• attract new users to the category
• Corporate Objectives
• umbrella branding

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Effects Hierarchy
Adoption Trial Favorable Attitude Brand
Knowledge Structures Brand Awareness
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Promotional Planning forBrand Equity

• 3. Design the Message
• Content (What the communication conveys)
• Favorability, strength, and uniqueness of brand
  associations (e.g, brand personality)
• Format (How it is conveyed - break through the
  clutter)
• Source (Next Page)

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Promotional Planning forBrand Equity

• 3. Design the message (cont.)
• Source (Where it is conveyed)
• TV radio newspapers magazines direct mail
  outdoor other (e.g., placement in a movie)
• what media mix? what media schedule?
• exposure reach x frequency
• of target group reached of times an
  individual is exposed

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Promotional Planning for Brand Equity

• 4. Decide on the Promotional Mix
• Push v. pull
• Stage in the decision process
• Consumer v. industrial
• Consistency of message across elements
• Complementarity of promotions (ads make deals and
  sales more effective)

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Promotional Planning for Brand Equity

• 5. Develop the budget
• 3.1. objective (e.g,. mkt share goal)
• 3.2. task (e.g., desired reach and frequency)
• 3.3. budget (budget to do it)
• 6. Measure the result
• Recall, recognition, persuasion, behavior
• Share of voice GRP against sales
• ( of target who saw ad at least once during
  specified time period) x ( of exposures for
  average person)
• 7. Manage the process

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Lodish et al. (1995)

• Advertising weight has no correlation with sales!
• T.V. ads work when
• Objective is to increase penetration or change
  attitudes, or the copy is changed
• Media levels shift over time, or high at
  beginning and end
• In categories that are growing or have short
  purchase cycles
• For new brands/extensions
• In earlier periods of campaign and in prime time

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Lodish et al. (1999)

• Little relation between recall/ persuasion
  measure and brand sales
• Ad elasticity is 0.13

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Marketing Causes of Low Levels of Customer
Response

• Poor Response Problem Underlying Cause
• Low Awareness Mktg - poor media selection
• Commun. - insufficient frequency
• - poor ad. copy
• Poor Mktg - insufficient frequency
• Comprehension Commun. - poor ad. copy
• Low Interest Product - insufficient benefits
• Positioning - high price
• - poor ad. copy

Sourse Best (1997), p.244
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Marketing Causes of Low Levels of Customer
Response

• Poor Response Problem Underlying Cause
• Low Intentions Product - weak value proposition
• Positioning - need for low-cost trial
• - not readily available
• Low Purchase Distribution - not available
• Level and In-Store - hard to find in-store
• - insufficient in-store
• services

Sourse Best (1997), p.244
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Trends inCommunications Strategy

• IMC - Integrated Marketing Communications
• look at information flow as the customer sees it
• Accountability
• justify your communications expenditures
• Relationship Marketing
• capitalizing on database information about
  customers
• Interactive Media

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Summary

• Evaluate marketing communications options
  strategically to determine how they can
  contribute to brand equity. - Keller
• Communications Include
• Ads, PR, Sales, Sales Promotion, Event Marketing
• The Communications Planning Process