IMC : INTEGRATED MARKETING COMMUNICATIONS Session Plan..!Understanding brand equity !Aaker and Keller models !Value chain !Choosing Brand elements for building equity !Session 5 :!Quiz ( Session 1-4) !Integrated marketing communication !Making a brand plan Chapter Questions !What is the role of integrated marketing communications? !Strategic and Tactical lens !What are the major steps in developing effective communications? !The media challenge!IMC : Key factors to be considered !Evaluating IMC Programs. The voice of the brand A means by which it can establish a dialogue and build relationships with consumers Allow marketers to inform, persuade, provide incentives, and remind consumers directly or indirectly Can contribute to brand equity by establishing the brand in memory and linking strong, favorable, and unique associations to it IMC IMC Basics !Coordinate various communications approaches into a mutually supportive,thematically unified, coordinated whole !Must manage all sources of information about a product that moves the customer towards a sale and maintains loyalty Basic IMC Issues 2010 South-Western, a part of Cengage Learning. All rights reserved. How to enhancebrand equity How to affectcustomerbehavior How to justifymarcominvestments How todemonstratefinancialaccountability MarketingCommunicators What can marketing communicators do to enhance the equity of their brands? How can marketing communicators affect the behavior of their present and prospective customers? How can marketing communicators justify their investments in advertising, sales promotions, and other marcom elements? How can marketing communications demonstrate financial accountability? Source: Adapted from Kevin Lane Keller, Conceptualizing, Measuring, and Managing Customer-Based Brand Equity, Journal of Marketing 57 (January 1993), 7. Revisiting the brand equity model.. Role of IMC ? Copyright 2009 Pearson Education, Inc.Publishing as Prentice Hall17-8 IMC Builds Brands Bridging Elements !Marry behavior-changing efforts of promotions and direct response with image-building efforts of PR and advertising - seamless connection !Tactically-oriented - Integrated executions !Strategically-oriented --Coordinated campaigns Model of IMC Strategic Questions How do we (sustainably) build Brand Equity ? !How do we de-position Sprite with mood lift ? !How do we become more provocative in our approach?Building Brand Equity Assess current situation; call out core task ahead.. !While awareness and consideration scores are increasing, we need to build strong brand affinity that ultimately translates into purchase intent and trial/consumption !Optimising brand performance requires holistic, multi-layered communication which is developed over time !A key task is to identify the best connection points to trigger a consumer response so the right type of communication, in the right location to convey the right message (relevant, impactful and motivating) 7UPs communication journey !From communicating Has Lemon, the brand has moved to the experiential aspect of Lemon refreshment !The next step in the journey should be adding an emotional layer to the brand promise !Mood lift is promising because - It is a benefit the brand offers due to its lemon credentials - It is currently a vacant space that no other player occupies WHO 7UP is and WHO 7UP isnt Not Not Not Not Not Not Street smart, savvy Down to earth, cool Socially-driven Looking to berecognized by his peers One of the guys Looking to help his friends Smooth, slick Trendy, edgy Individually-driven Trying to stand out The leader of the pack Looking for one-upmanship The Power of the idea !Makes 7 Up social vs. individualistic brand One that celebrates friendship vs. one upmanship !Universality of belief - The idea mirrors values that majority of youth will identify more closely with, relate to more intimately and engage with more proactively!Massive appeal - The idea creates a world of belonging, of empathy where people feel there are others who feel the way they do, who believe in the same things that they doA Holistic Communication Approach Functional Truth: Lemon RefreshmentEmotional Truth:Mood UpliftProduct Truth:Lemon DifferenceBenefit:Channel by Objective:Awareness: TV Print Packaging RTB/Codes:Natural Lemon FlavorEffervescence Natural LemonFlavorBENEFIT PRIORITY Digital Purchase: POSM Coupons Offers Outcome of the communication approach !Have diluted Sprites loyalty base !Built differentiation from Sprite !Drop in 7UP rejectors 7UP gaining acceptance in Sprite strong markets !Gained more acceptance amongst women !Created more appeal to youngsters (potential loyalists) So much for the strategic talk.. !Translating into tactical initiatives The 7UP Lemon Pattalam !A pattalam does not just refer to a small group of guys who play cricket.!It means an entire army; a multitude of people who share an attitude; a group of people who have a great sense of belonging among themselves.! We see the Lemon Pattalam as the entire 7Up clan.!A young breed who share a refreshing attitude and a 7Up The 7UP Lemon Pattalam !One of the characteristics of this group is their love of cricket whether they play it or not and their rejoicing of CSK.!At this juncture, with the CSK tie up there is a lot of excitement that await people who belong to this pattalam by being a part of the CSK at many levels: !To support the team uniquely as a group !To scream for it the loudest !To whistle for it differently !To create a unique anthem for it !To sing for it!Dance for it in a special manner !Dress for it (caps and t shirt) as a whole mass in the stadium, in a manner that would be recognized and of which they are proud ! And the Pattalams cream would play with CSK in their own uniquely defined style. The 7UP Lemon Pattalam !This time the Pattalam is not about the group of guys playing cricket It is about the entire community !Their enthusiasm creates a movement: !Across cities, across town, across villages.!Across genders !Across age groups !Across professions Build Stature in TN by broad basing Consumer Engagement Media Synergy"A refreshing format of cricket: " 7 players "7 over's " 7 balls "7 runsNothing but 7 "Be the most visible brand in TN "In stadia promo "Enhanced presenceSalience Volume & Distribution drive" Dominate Visibility in trade "Drive Depth Trade Engagement & Point of Sale branding " Build Stature " Everyone is a winner "Lemon Hats " Match tickets " Sunglasses Reach the Masses " Customized TVC" OOH" Radio " PressDecoding the Communication Process Copyright 2009 Pearson Education, Inc.Publishing as Prentice HallSteps in Developing Effective Communications Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Measure results/ manage IMC Developing Effective Marketing Communications Slide 28 in Chapter 16 !Step 1: Identifying the target audience !Includes assessing the audiences perceptions of the company, product, and competitors company/product image !Step 2: Set Communications Objective !Cognitive, affective, and behavioral objectives may be set !Category expansion,trial stimulation, awareness !Step 3: AIDA model guides message design Developing Effective Marketing Communications Slide 29 in Chapter 16 !Step 4: Selecting Communication Channels !Personal communication channels # Effectiveness derives from personalization and feedback # Several methods of stimulating personal communication channels exist !Nonpersonal communication channels Developing Effective Marketing Communications Slide 30 in Chapter 16 !Step 5: Establishing the Marketing Communications Budget !Affordability method !Percentage-of-sales method !Competitive-parity method !Objective-and-task method !Step 6: Deciding on the Marketing Communications Mix Developing Effective Marketing Communications Slide 31 in Chapter 16 !Step 7:Measure Results !Recognition, recall, attitudes, behavioral responses !Step 8: Manage the Integrated Marketing Communications Process !Provides stronger message consistency and greater sales impact !Improves firms ability to reach right customers at right time with right message Copyright 2009 Pearson Education, Inc.Publishing as Prentice Hall How ?? Modes of Marketing Communications !Advertising & Media !Sales promotion !Events and experiences !Public relations and publicity !Direct marketing !Interactive marketing !Word-of-mouth marketing !Personal selling Communication Platforms Advertising !Print and broadcast ads !Packaging inserts !Motion pictures !Brochures and booklets !Posters !Billboards !POP displays !Logos !Videotapes Sales Promotion !Contests, games, sweepstakes !Premiums !Sampling !Trade shows, exhibits !Coupons !Rebates !Entertainment !Continuity programs That brings us to Media Planning and Media Relations !Critical to coordinate paid and unpaid media as part of IMC efforts !Timing of Message Placement !Reinforcement Across Channels !Compatibility of Editorial Tone !All with the goal of building relationships Changing media landscape Media Planning and IMC !Media Planning Shape IMC Strategy !Media Planning More Critical Than Ever !Media Explosion Creating an Info Glut Must find the balance pointsIntegrated Media Planning !Earlier involvement in strategic planning !Brand insights and research sharing !More conceptual and qualitative analysis !Expand definition of communication !Coordinate all elements, set the timing !Must balance efficiencies of mass comm with advantages of one-to-one !Develop market specific approach !Zero-based, market-by-market media planning!Replaces broad-market approachLots of Questions when it comes to planning Media.. !Who am I trying to reach? !How many can I afford to reach? !How often do people need to encounter my message? !In which vehicles should I pursue message space? !When should I communicate (day, week, month, year)? !What markets and regions should receive extra emphasis and which ones can be ignored? !How can I take advantage of emerging media? Lots of Challenges !Expanding product categories !Multiple brands competing in any category !Proliferation of media categories !Increasing pool of vehicles in any category !Heightened audience control !Technological developments and advances Expanding Options 50s and 60s Today The Era of Choice !Dominant trend affecting strategic communicators:Choice !Three forces drive this trend !Changes in Demographics and Lifestyles !Technological Development !Economic Climate Demographic Changes !Changes in Household Composition !More Women in the Workforce !India getting younger; America ageing!Growth of Ethnic Populations !Polarization of Rich and Poor Lifestyle Changes Consumers differ across their personal choice wrt being!Busy !Social !Participatory !Media-centric !Technologically oriented !etc So, the Questions for Media Planning How do you contend with the clutter of the marketplace?How do you speak to such a diverse, busy, disengaged audience? Is there some communication potential in media fragmentation? Technology !Second Driving Force of Change !Brings more Choice into Media World !Control with Remote Controls !Viewing Selection w/ VCRs, Digi sets, Tivo !Programming with Digital Cable !Multi-media with DVD and CD-ROMs Implication of this technology ( read Internet) advancement.. !Takes fragmentation to a new level !Anyone can be a media producer !Email, Search, Shop, Chat, Plan, Invest !Great potential for customizing, personalizing, tracking, generating buzz, viral marketing !Demands technical and strategic competencies and thus; some more question for media planning !What are the threats of this new media environment for strategic planners? !What opportunities exist within this expanded and fragmented environment? !How might technology of the future create new opportunities and threats?Economics !Third Driving Force of Choice !Fueled by GNP Growth in 80s - 90s #Lots on Investment Capital #Rising Stock Market #Consumers Willing to Spend !Increasing Trend Toward Mergers Recent Downturn !Current Economy Changes Picture !Some contraction in innovation and consumption#Companies focused on saving, not spending Summary !Consumers in general are demassifying !Consumers have more media choices and more control over selection !New tech will provide even more control !Economic climate will determine rate of continued development and opportunity And so !Era of Choice Creates Unique Challenges and Opportunities for Media Planners!Difficult to find your audience !Once you find them, hard to keep them !Difficultto foresee coming changes !Diminished Effectiveness !Hard to Get Noticed !Hard to Get Consumers to Respond !We Need New Ways to Generate Response Case Discussion Deploying media mix for a launch the Brief Unilever was to launch a brand extension, a new Dove series called Fresh Touch, to a young female target group of W15-34. The new product had a fresh, youthful scent that the campaign was to centre around as much as possible. It was also essential that the communication was clearly distinguished from that of other Dove products. The mission was of course to create awareness around this launch despite advertising fatigue in the target group and the heavy competition in the beauty market.Insights available !The women in the target group are genuinely interested in beauty, find it important to care for their bodies and their appearances (85%),and want to be attractive (63%).!A third of the target group admits to being heavy users of commercial TV, specific magazines and Internet, especially communities and blogs.These insights are of course very positive when launching a new beauty product.!At the same time, however, these women experience advertising fatigue. Almost 2/3 dislike TV commercials, half of the target group changes radio stations during commercial breaks and 35% finds Internet banners annoying. !Previous experiences have told us that a combination of visual impact together with scents really enhances the message and motivates purchasing.!Scent communication is however tough to use as a main means of communication in this digital era.!Still, in the channels where it was feasible, scent was to be added in order to strengthen Dove's message. !The strategy of the Dove campaign was to tickle as many senses as possible in relevant environments and in an unexpected manner and through the media mix, get the message of the product's freshness across to the target group. What would be the principles ? Goals of Brand Goals of media Plan Which media vehiclesWhy?/ Role of media vehicles- common or different? The Approach ..a balanced media mix !The approach was to use TV as a continuous base topping that!with a heavy mix of targeted and engaging Internet solutions, innovative OOH ideas, creative scratch n sniff magazine sampling, buzzadors and editorial radio competitions. !To kick-off the campaign, 4000 buzzadors invited friends to test the new products and hopefully create positive blog buzz and word-of-mouth. !On Veckorevyn.com, one of the largest magazine sites in the target audience, there was a Dove memory game competition with Fresh Touch products placed in the editorial area. The Veckorevyn blog network (250 bloggers) connected to the site were exclusively invited the first three days in order to start a buzz. They received a game widget to add to their blogs. The first prize for playing the game the fastest was a "Go fresh day" with the target's most credible & cool blogger, Ebba von Sydow, including spa and products. Dove also presented the prize for "The most original blog", during the Veckorevyn Blog awards. !On Bilddagboken.se, the number one social community in Sweden, there was an editorial competition where the target group could compete with their best picture - "what is spring fresh for you?", connecting nicely with the Fresh touch series. !A media first OOH solution was tailor-made for the Fresh Touch campaign, with the product scent exuding from selected OOH panels in prime locations as people passed by. !Fresh Touch was the exclusive presenter of an editorial SBS radio competition for the freshest designer sunglasses.There were also targeted expanding banners on the MSN website, hotmail and messenger. Video !http://www.mindshareworld.com/what-we-do/case-studies/@DoveGoFresh The Results !The Fresh Touch campaign was a very engaging campaign, with games and competitions creating a buzz, a viral spread and an involved target group. !Sales exceeded expectations by far. Dove's total value share when it comes to deodorants and shower cream increased by 96 and 47% respectively after the campaign. Thus, Go Fresh added value without cannibalising on existing Dove products. !All in all,1.4 million were reached that too unique internet users in the correct target group. !There were 25,000 unique competitors on veckorevyn.com playing 500,000 Dove memory games. The game was so popular that it still sits on veckorevyn.com half a year after the close of the campaign. !There were 17,000 unique contributions on bilddagboken.se !For expanding banners on MSN/hotmail/messenger, awareness was 70 % and 68 % were positive to the brand. !10,000 radio listeners competed for sunglasses and Dove products on The Voice (the station's 2nd best competition ever)4/5 of the target group was reached through TV. !Dove had an exemplary physical meeting with its core target group at the Veckorevyn Blog Awards. Pause Marketing Debate $Has TV advertising lost power? Take a position: 1.TV advertising has faded in importance. or 2. TV advertising is still the most powerful advertising medium. #1 : Social media ought to be integrated/ evaluated along with other media vehicles !PR !Events and Experiences !Direct Marketing !WOM #2 : Bear in mind the macro factors in Setting Communications Mix !Type of product market !Buyer readiness stage !Product life cycle stage !Environmental /Competitive analysis Type of Product market Buyer readiness Product lifecycle #4 : Importantly, customer analysis !Who buys our product or service? !Who initiates and makes the decision!to purchase and who influences the process? !How is the purchase decision made?!What attributes or criteria are important to customers? !What are customers perceptions of and attitudestoward our company, product/service or brands? !What factors influence the decision making process? !Contact points where customers can be reached? AIDA Model . 6.68 Coverage: What proportion of the target audience is reached by each communication option employed? How much overlap exists among options? Cost: What is the per capita expense? Evaluating IMC Programs 6.69 Communication Option A Communication Option C Communication Option B Note:Circles represent the market segments reached by various communication options. Shaded portions represent areas of overlap in communication options. . Contribution: The collective effect on brand equity in terms ofenhancing depth and breadth of awareness improving strength, favorability, and uniqueness of brand associations Commonality: The extent to which information conveyed by different communication options share meaning . Complementarity: The extent to which different associations and linkages are emphasized across communication options Versatility: The extent to which information contained in a communication option workswith different types of consumers Different communications history Different market segments Back up . AdvertisingA powerful means of creating strong, favorable, and unique brand associations and eliciting positive judgments and feelings Controversial because its specific effects are often difficult to quantify and predict Nevertheless, a number of studies using very different approaches have shown the potential power of advertising on brand sales. Category of Advertising . Television Radio Print Direct response Interactive: websites, online ads Mobile marketing Place advertising:Billboards; movies, airlines, and lounges; product placement; and point-of-purchase advertisingPromotions . Short-term incentives to encourage trial or usage of a product or serviceMarketers can target sales promotions at either the trade or end consumersConsumer promotions Consumer promotions are designed to change the choices, quantity, or timing of consumers product purchases.Trade promotions Trade promotions are often financial incentives or discounts given to retailers, distributors, and other members of the trade to stock, display, and in other ways facilitate the sale of a product. . Event marketing is public sponsorship of events or activities related to sports, art, entertainment, or social causes.Event sponsorship provides a different kindof communication option for marketers. By becoming part of a special and personally relevant moment in consumers lives, sponsors can broaden and deepen their relationship with their target market.Event Marketing and Sponsorship . 6.77 Public relations and publicity relate to a variety of programs and are designed to promote or protect a companys image or its individual products.Buzz Marketing Occasionally, a product enters the market with little fanfare yet is still able to attract a strong customer base. Public Relations and Publicity . 6.78 Personal selling is face-to-face interaction with one or more prospective purchasers for the purpose of making salesThe keys to better selling Rethink training Get everyone involved Inspire from the top Change the motivationForge electronic linksTalk to your customers Personal Selling