Title: Integrated Marketing Communications
1Integrated Marketing Communications
- Professor Carl Mela
- BA 460 Product Management
- Fuqua School of Business
- Brand Management System
- On Building A Brand
- Managing Across Brands
2Agenda
- Elements of Integrated Communications
- Developing the Communications Plan
3Elements of Communications
- Advertising
- Creates favorable associations, but does it work?
- Sales Promotion
- Event Marketing
- PR and Publicity
- Personal Selling
4Ignoring Commercials?
- How many ads is a typical American exposed to in
a single day?
Source USA Today 2/23/99
5Ignoring 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
6Your 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
7Promotional Planning for Brand Equity
- 1. Identify the target market
- 2. Establish objectives
- Establish brand in memory and create strong,
favorable, and unique associations
8Brand 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
9Effects Hierarchy
Adoption Trial Favorable Attitude Brand
Knowledge Structures Brand Awareness
10Promotional 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)
11Promotional 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
12Promotional 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)
13Promotional 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
14Lodish 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
15Lodish et al. (1999)
- Little relation between recall/ persuasion
measure and brand sales - Ad elasticity is 0.13
16Marketing 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
17Marketing 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
18Trends 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
19Summary
- 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