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MKT. 642

INTRODUCTION TO INTEGRATED MARKETING

COMMUNICATIONS

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COURSE INTRODUCTION

• PURPOSE– INTRODUCE ROI

• PREMISE– ROI WILL GIVE YOU AN OVERVIEW OF THE

COURSE• PRACTICE AND APPLICATION

– SHOW HOW ROI WORKS• BENEFIT

– PRESENT A METHOD TO DEVELOP AN IMC PLAN

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PLANNING FOR R.O.I

DDB NEEDHAM

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TOPICS TO BE PRESENTED

• PURPOSE OF THE ADVERTISEMENT• BARRIER THEORY• TARGET OF THE ADVERTISEMENT• CONSUMER DEMOGRAPHIC AND PSYCHOGRAPHIC PROFILE• PROMISE OR BENEFIT• SUPPORT• ROI• BRAND PERSONALITY• MEDIA• APERTURE• FIVE VENUES

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PURPOSE OF ADVERTISING

• IN ORDER TO STATE THE PURPOSE:– MUST DECIDE THE PRECISE ACTION WE WANT

THE TARGET AUDIENCE TO TAKE AFTER WATCHING, READING, OR LISTENING TO THE AD

• PURPOSE IS: – TO PERSUADE SOMEONE TO DO SOMETHING

• MUST DECIDE– WHO– WHAT TO DO

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PURPOSE OF ADVERTISING--CONTINUED

• ADVERTISING IS THE CAUSE– BEHAVIOR IS THE EFFECT

• BUY, USE, WRITE, CALL, VISIT DEALER, ORDER BY PHONE

– COMPLETE STATEMENT INCLUDE BUSINESS SOURCE

– KEY TO MARKETING DEFINITION IS SUBSTITUTABILITY

• WHICH PRODUCTS MIGHT THE BRAND BE INTERCHANGEABLE

• SET OF PRODUCTS MIGHT BE SMALLER OR LARGER THAN THE SET OF PRODUCTS BY WHICH THE CATEGORY IS TRADITIONALLY DEFINED

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BARRIER THEORY

• CAN ANY OF THE PROMOTIONAL ELEMENTS OVERCOME THESE BARRIERS IN THE CONSUMER DECISION PROCESS?– AWARENESS– ACCEPTANCE– PREFERENCE– SEARCH– SELECTION– USE– SATISFACTION

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EXAMPLES OF PURPOSE OF ADVERTISING

• PURPOSE OF ADVERTISING IS TO PERSUADE THE AUDIENCE:

– TO BUY RUFFLES INSTEAD OF OTHER BRANDS OF POTATO CHIPS

– TO USE BISQUICK INSTEAD OF PANCAKE MIX

– TO PERSUADE MEMBERS OF THE TARGET AUDIENCE TO COME INTO THE SHOWROOM FOR A TEST DRIVE TO THE AUDI 80/90, RATHER THAN OTHER HIGH-LINE SPORTS SEDANS

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TARGET

• THE GROUP OF PEOPLE WHO ARE THE BEST PROSPECTS FOR THE ADVERTISER’S BRAND

• TO WHOM THE ADVERTISING WILL BE ADDRESSED

• NEED A PERSON TO WRITE TO:

– BUSINESS TRAVELLERS WHO ARE LIKELY TO STAY AT MID-PRICED HOTELS

– HEAVY USERS OF CHARCOAL

– YOUNG WOMEN WHO HAVE ACNE PROBLEMS

– PEOPLE IN THE MARKET FOR AN EXPENSIVE SPORTY EUROPEAN CAR

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NEED TO KNOW DEMOGRAPHIC AND PSYCHOGRAPHIC PROFILE

• BUSINESS TRAVELLERS WHO ARE LIKELY TO STAY AT A MID-PRICE HOTEL, $25,000 TO $50,000 ANNUAL INCOME. EIGHTY PERCENT ARE MALES. THEY CHOOSE MID-PRICE ACCOMMODATIONS BECAUSE THEY ARE PAYING THEIR OWN WAY, OR BECAUSE THEIR EXPENSE ACCOUNTS ARE LIMITED. THEY WANT BASIC, CLEAN ACCOMMODATIONS WITH A MINIMUM OF HASSLE. THEY ARE FREQUENTLY TIRED, USUALLY INPATIENT, AND ALWAYS CRITICAL. SMALL LUXURIES, SPECIAL RESPECT AND ATTENTION ARE IMPORTANT TO THEM

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NEED TO KNOW DEMOGRAPHIC AND PSYCHOGRAPHIC PROFILE--CONTINUED

• HEAVY USERS OF CHARCOAL, FATHERS BETWEEN 25 AND 49. MOST OF THEM LIVE IN THE SUBURBS OR SEMIRURAL AREAS. THEY GET A BIG KICK OUT OF BARBECUING FOR FAMILY AND FRIENDS. THEY WANT THE MEAT TO TURN OUT JUST RIGHT

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EXAMPLE OF PURPOSE AND TARGET

• PURPOSE– TO PERSUADE FREQUENT NEW YORK TO WASHINGTON, DC

TRAVELLERS TO TAKE AMTRACK INSTEAD OF A PLANE

• TARGET– FREQUENT NEW YORK TO WASHINGTON TRAVELLERS ARE

LIKELY TO BE WELL-EDUCATED, WHITE-COLLAR PROFESSIONALS CONDUCTING A DAY’S BUSINESS IN EITHER CITY. THE NEARLY 10,000 PEOPLE WHO FLY DAILY BETWEEN NEW YORK AND WASHINGTON HAVE GROWN ACCUSTOMED TO NO-FRILLS SERVICE, CROWDED SEATING AND “CATTLE CAR” CONDITIONS. THEIR TIME IS AT A PREMIUM AND, DESPITE AIRPORT DELAYS AND TRAVEL TIME TO AND FROM AIRPORTS, THEY BELIEVE PLANES PROVIDE THE SHORTEST TRIP POSSIBLE. SIXTY TO SEVENTY PERCENT ARE MALES

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PROMISE

• BENEFIT OR REWARD FOR BUYING OR USING THE ADVERTISED BRAND

• WHEN I_________. I WILL__________.• THE “I” IN THIS SENTENCE IS THE TARGET AUDIENCE• THE 1ST BLANK REPRESENTS THE PURPOSE OF THE

ADVERTISING• THE 2ND BLANK REPRESENTS THE BENEFIT• NUMBER OF PROMISES

– SINGLE MINDED OR ONE IN MOST CASES– COMBINATION, RATHER THAN ONE BENEFIT, IF IT DEFINES THE

ESSENTIAL NATURE OF THE BRAND (WEIGHT WATCHERS’ ENTREES--REDUCED CALORIES AND GOOD TASTE).

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EXAMPLES OF PURPOSE AND BENEFIT

• WHEN I TAKE AMTRACK INSTEAD OF THE PLANE FROM NEW YORK TO WASHINGTON, DC (PURPOSE). I WILL BE MORE COMFORTABLE, BETTER TREATED, AND MORE VALUED (BENEFIT)

• WHEN I BUY INSURANCE FROM STATE FARM INSTEAD OF FROM SOME OTHER INSURANCE COMPANY (PURPOSE). I WILL KNOW THAT A FRIENDLY STATE FARM AGENT WILL BE AT MY SIDE IF I NEED HELP (BENEFIT)

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PROMISE IS THE HEART OF THE STRATEGY

• THE BENEFIT IS IN THE MIND OF THE CONSUMER, NOT IN THE PRODUCT. PRODUCTS HAVE ATTRIBUTES, NOT BENEFITS

• THE BENEFIT IS A FUTURE EXPERIENCE. IT IS AN (SUBJECTIVE) EXPERIENCE PROMISED TO THE CONSUMER BY THE ADVERTISER AS A REWARD FOR BUYING OR USING THE ADVERTISED BRAND

• THE BENEFIT IS A CONCLUSION, TO BE DRAWN BY THE CONSUMER FROM THE CAMPAIGN AS A WHOLE. THE PROMISE IS NOT A COPY LINE. THE WORDS USED IN THE STRATEGY MAY OR MAY NOT EVER APPEAR IN THE ADVERTISING ITSELF

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EXAMPLE OF BENEFITS

• PRACTICAL– REWARDS WHICH COME FROM SAVINGS TIME OR

MONEY, OR EXPERIENCING GOOD HEALTH• SENSORY

– INTERESTING TEXTURE OR DELICIOUS TASTE• SOCIAL

– APPROVAL FROM FAMILY OR PEERS• EGO-SATISFACTION

– PRIDE IN BEING A GOOD MOTHER, OR FEELING OF ACCOMPLISHMENT FROM HAVING COMPLETED A DEMANDING JOB

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WHEN BENEFITS OCCUR

• WHILE THE PRODUCT IS BEING USED

• AFTER THE PRODUCT HAS BEEN USED

• AS AN INCIDENTAL BY-PRODUCT OF THE PRODUCT’S MAIN EFFECT

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BENEFIT MATRIX--POTENTIAL BENEFITS OF REAL CHEESE

POTENTIALLY REWARDING EXPERIENCES

PRACTICAL SENSORY SOCIAL EGO-SATISFACTION

IN-USE EXPERIENCE

CONVENIENCE; KIDS CAN HELP THEMSELVES

NEW TASTE FOR ROUTINE FOODS

FAMILY WILL BE GRATEFUL

I AM A GOOD MOTHER

RESULTS-OF-USE EXPERIENCE

STRONG BONES FEEL BETTER OTHERS THINK I LOOK GOOD

I AM TAKING GOOD CARE OF MYSELF

INCIDENTIAL-TO-USE EXPERIENCE

LOW-COST NUTRITION

NO MESS ADDS VARIETY TO PARTY REFRESHMENTS

I AM A GOOD COOK

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SUPPORT

• LENDS CREDIBILITY TO THE ADVERTISER’S PROMISE

• SUPPORT REFERS TO EVERYTHING IN THE ADVERTISING THAT LENDS CREDIBILITY TO THE ADVERTISER’S PROMISE

• TWO TYPES OF SUPPORT– INTERNAL AND EXTERNAL

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INTERNAL SUPPORT

• PRODUCT OR INTELLECTUAL FACTS – WHEN I TAKE AMTRACK INSTEAD OF THE PLANE FROM

NEW YORK TO WASHINGTON (PURPOSE). I WILL BE MORE COMFORTABLE, BETTER TREATED, AND MORE VALUED (BENEFIT) BECAUSE AMTRACK PROVIDES WIDER SEATS, MORE LEG ROOM, BETTER SERVICE, AND FREEDOM TO MOVE AROUND (SUPPORT)

• DEMONSTRATIONS (SHOW BRAND AT WORK)– LITERAL--SUFFER EXPERIENCE RELIEF ON SCREEN

– DRAMATIC--PART OF A PLAY--BUD LIGHT

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EXTERNAL SUPPORT

• SUPPORT FOR THE PURPOSE OR THE PROMISE OF THE ADVERTISING CAMPAIGN THROUGH THE USE OF:– SALES PROMOTION– PUBLIC RELATIONS PROGRAMS– ADVERTISING INTENDED TO ELICIT

DIRECT RESPONSE

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PROMISE VS SUPPPORT

• THE PROMISE IS THE MEANING TO BE DRAWN FROM THE AD.– PROMISE TO THE END

• THE SUPPORT IS THE MEANS BY WHICH THAT PROMISE IS CONVEYED.– SUPPORT IS THE MEANS

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WHERE TO LOOK FOR SUPPORT

• BACKGROUND MUST COME FROM CONSUMERS– PRODUCT TESTING– CONSUMER SURVEYS– USER THEMSELVES (i.e., WRITER OF AD)

• MUST BE RELEVANT TO TARGET

• MUST OPERATE IN A COMPETITIVE WORLD

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ROI

• RELEVANCE– MESSAGE MUST BE RELEVANT--TO PRODUCT, TARGET, AND SPECIFIC

BEHAVIOR ADVERTISER INTENDED TO PROMOTE– ATTRIBUTE IS NOT SUPPORT FOR PROMISE UNTIL CUSTOMER

UNDERSTANDS HOW ATTRIBUTE MAKES BRAND A BETTER SATISFIER OF NEEDS

• ORIGINALITY– NEEDS TO BE ORIGINAL TO ATTRACT ATTENTION--BREAK THE

PATTERN

• IMPACT– ABILITY TO BREAK THROUGH INDIFFERENCE AND FOCUS ATTENTION

UPON MESSAGE THE ADVERTISEMENT IS INTENDED TO CONVEY– INTRUSIVENESS--TWO SOURCES: MEDIA AND STRUCTURE OF

ADVERTISING MESSAGE--ELEMENT OF SURPRISE

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LEGS

• IMPACT OF AN INDIVIDUAL ADVERTISEMENT OR LONG-TERM CAMPAIGN

• IDEA MAY YIELD EFFECTIVE VARIATION--LONG WAY– JOE GREEN COMMERCIAL

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BRAND PERSONALITY

• DEFINTION– CONSISTENCY OF TRAITS (DRESS, SPEECH, LOOKS, HABITS,

TRAITS THAT GO TOGETHER IN A MORE-OR-LESS COHERENT WAY) AND PREDICTABILITY (CONSISTENCY

OVER TIME)• BRAND

– SET OF ENDURING CONSUMER PERCEPTIONS WHICH FORMS A BASIS FOR EXPECTATION OF BRAND BENEFITS

– INTERNALLY CONSISTENT, TRAITS MUST FIT TOGETHER, PACKAGE, PRICE, LOOK, SOUND, SMELL, SIZE, NAME, COLOR, SHAPE--MUST HAVE A SINGLE THEME

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BRAND PERSONALITY--CONTINUED

• BRAND PERSONALITY– SEPARATES THE BRAND FROM ITS COMPETITORS– PREDICTS THE FUTURE EXPERIENCE WITH THAT BRAND

• ROLE OF ADVERTISING– BECOMES PART OF THE IMAGE AND TELL WHAT THE

BRAND IS• BUSH BEER--HONEST, RUGGED, MANNLY• STATE FARM INSURANCE--STRAIGHT-FORWARD,

WARM, A GOOD NEIGHBOR• METROLINER--CIVILIZED, INVITING, COMFORTABLE,

CLEAN, DEPENDABLE, SAFE

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MEDIA

• MEDIA– WHAT MEDIA WILL MATCH THE PURPOSE OF THE

ADVERTISING?

• C.P.M. (COST PER THOUSAND IMPRESSIONS)– WHAT MEDIA WILL DELIVER THE MESSAGE TO THE

TARGET AT THE LOWEST POSSIBLE COST?

– WHAT IS THE AVAILABILITY, REACH AND FREQUENCY, AND NEGOTIATED COST PER THOUSAND IMPRESSIONS THAT THE ADVERTISER CAN SPEND WHICH WILL ACHIEVE THE PURPOSE--TO REACH THE TARGET, COMMUNICATE BENEFIT(S) AND SUPPORTING EVIDENCE?

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APERTURE

• WHEN, WHERE, AND UNDER WHAT CIRCUMSTANCES WILL THE TARGET BE MOST RECEPTIVE TO THE MESSAGE

• WHEN THE RELEVANT DECISION GETS MADE– MOTHER’S DAY, FATHER’S DAY, EASTER, CHRISTMAS--ALL

INCREASE INTEREST IN PRODUCTS AND SERVICES APPROPRIATE FOR THOSE TIMES

– BREAKFAST EATERS THINK ABOUT WHAT TO HAVE FOR BREAKFAST AT BREAKFAST TIME, AND ARE LIKELY TO BE OPEN TO MESSAGE ON MORNING RADIO

• PLACE WHERE THE DECISIONS GETS MADE• UNDER WHAT CIRCUMSTANCES THE DECISION GETS

MADE

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EXAMPLES OF APERTURE

• READING FASHION MAGAZINE, MAY MAKE INTERESTED READER EVEN MORE INTERESTED IN MESSAGES ABOUT EXERCISE, DIET, MAKEUP, OR CLOTHES

• MICHELIN PLACED MESSAGES IN WEATHER REPORTS ON CABLE TELEVISION’S WEATHER CHANNEL. THE PREMISE WAS THAT DRIVERS WHO ARE CONCERNED ABOUT THE WEATHER MIGHT ALSO BE CONCERNED ABOUT SECURITY, AND MIGHT THEREFORE BE ESPECIALLY RECEPTIVE TO MESSAGES CONCERNING MICHELIN TIRES

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FIVE VENUES

• DEFINITION

– EACH VENUE REPRESENTS A DIFFERENT RELATIONSHIP BETWEEN THE ADVERTISED PRODUCT AND THE SOURCE OF BUSINESS--PRODUCT (MIGHT BE BOUGHT OR USED INSTEAD)

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VENUE ONE

• OBVIOUS SUPERIORITY

– FOCUS ON THE CUSTOMER--ROI

– EXPAND THE CATEGORY

– PREPARE FOR COMPETITIVE RESPONSE

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VENUE TWO

• MARGINAL SUPERIORITY– LINKS BETWEEN MINOR PHYSICAL

DIFFERENCE AND MAJOR PSYCHOLOGICAL NEEDS CAN PROVIDE DECISIVE COMPETITIVE BENEFITS

• BUSH BEER--MINOR PHYSICAL DIFFERENCE BETWEEN BUSH AND OTHER BRANDS IS THE BUSH MOUNTAIN LOGO. WHEN LINKED WITH THE NOTION THAT BUSCH GOES DOWN “SMOOTH AS A MOUNTAIN STREAM.” THE LOGO SYMBOLIZES A COMPETITIVE LEVERAGE FOR THE BRAND

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VENUE THREE

• PERCEIVED INFERIORITY– TARGET THOSE WHO INFLUENCE THE

BEHAVIOR OF OTHERS

– CORRECTION OF ERRONEOUS BELIEFS--UNDERSTANDING WHY THE BELIEFS ARE STILL HELD

– THE TARGET IS NEVER EVERYONE, EVEN THOUGH EVERYONE MAYBE WRONG

• AMTRACK--UNREALIABLE, UNCOMFORTABLE, AND PROBABLY LATE

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VENUE FOUR

• REAL INFERIORITY

– SEEK OUT AND STRIKE AT ANY WEAKNESS OF THE OTHERWISE SUPERIOR BRAND

– ADVERTISING MUST STILL PROMISE A COMPETITIVE BENEFIT. COMPETITOR’S WEAKNESS IS NOT ENOUGH

– CAN NOT BE SOLD BY ADVERTISING ALONE

• THE BEETLE--DEPENDABLE AND ECONOMICAL, AND WOULD NOT GO OUT OF STYLE

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VENUE FIVE

• PARITY– IMPORT

• FOCUS ON A MAJOR BENEFIT THAT THE BRAND DOES NOT PROVIDE BEFORE THE ADVERTISING STARTS--THAN THE BENEFITS BECOMES TIGHTLY LINKED TO THE BRAND AND IT BECOMES A PROPERTY OF THE BRAND

– BREAKFAST OF CHAMPIONS– THE NIGHT BELONGS TO MICHELOB

– PREEMPT STRATEGY• NON-EXCLUSIVE BENEFIT THAT THE BRAND ALREADY

PROVIDES IS MADE THE EXCLUSIVE PROPERTY OF ADVERTISER’S BRAND

– LIKE A GOOD NEIGHBOR– WE SELL NO WINE BEFORE ITS TIME

• SINGLE MINDED• PERSONALITY

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SUMMARY OF ROI

FIVE BASIC QUESTIONS • WHAT IS THE PURPOSE OF THE ADVERTISING?• TO WHOM WILL THE ADVERTISING BE

ADDRESSED?• WHAT COMPETITIVE BENEFIT WILL BE PROMISED,

AND HOW WILL THAT PROMISE BE SUPPORTED?• WHAT PERSONALITY WILL DISTINGUISH THE

BRAND?• WHEN, WHERE AND UNDER WHAT

CIRCUMSTANCE WILL THE TARGET BE MOST RECEPTIVE TO THE MESSAGE? AND, WHAT MEDIA WILL DELIVER THAT MESSAGE TO THAT TARGET AT THE LOWEST POSSIBLE COST?

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Problem--Multiple Vitamin Supplements • Multiple vitamin supplements make up a large, well-established market with a substantial number of

different brands and manufacturers. The market also displays a wide variety of marketing approaches even though the products themselves are largely homogeneous in physical characteristics. The differences in marketing approaches revolve around the choice of distribution channel. There are five different marketing approaches that are currently in use. They are:

Mail Order—vitamins offered through catalogs mailed directly to prospective consumers. Price to the consumer is low.Proprietary—vitamins sold through retail drug, food, and discount stores and advertised to consumers by the manufacturer. Retail price is high.Ethical—vitamins sold through drugstores and sold to consumers based on recommendations from doctors or druggists. Retail price is high.Door-to-Door—vitamins sold directly to consumers in their home by salespeople of the manufacturer. Price to consumers is high.Private Label—vitamins sold to druggists for resale under the druggist’s own label to consumers. Retail price is low.

Even if it is assumed that the product under each marketing approach is the same, theadvertising effort will vary substantially because of differences is price and distributionchannels.For each marketing approach:

1) will the amount of advertising tend to be high or low compared to the other alternatives?

2) what will be the task of advertising?

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Multiple Vitamin Supplements

Approach Distribution Price Task of Advertising

Amount of Advertising

Mail Order Direct to consumer by mail

Low Make direct sales High—no other selling expense

Proprietary Through retailers by “pulling”

High Develop brand preference through retail outlet

High—must overcome lack of retail selling effort

Ethical Through retailers/

Physician recommendation, push

High Get recommendations and prescriptions

Low—narrow target, high retailer margins

Door-to-Door Direct to consumer by personal selling

High Get sales agent into the home

Low—funds devoted to selling commissions

Private Label Through retailers Low Price Comparisons

Low—margins narrow due to low price