Transcript Introduction to Marketing

Integrated Marketing
Communications
Professor Carl Mela
BA 460 Product Management
Fuqua School of Business
• Brand
Management
System
• On Building
A Brand
• Managing
Across
Brands
Promotion – 1
Agenda
• Elements of Integrated Communications
• Developing the Communications Plan
Promotion – 2
Elements of Communications
• Advertising
– Creates favorable associations, but does it work?
•
•
•
•
Sales Promotion
Event Marketing
PR and Publicity
Personal Selling
Promotion – 3
Ignoring Commercials?
How many ads is a
typical American
exposed to in a
single day?
Promotion – 4
Source: USA Today 2/23/99
Ignoring Commercials?
How many ads is a
typical American
exposed to in a
single day?
How many people think
they saw:
# of Ads
1-30
31-50
51-100
101-300
301+
Actual = 270
Men
15%
20%
30%
18%
17%
Source: USA Today 2/23/99
Women
25%
25%
27%
15%
9%
Promotion – 5
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
Promotion – 6
Promotional Planning for
Brand Equity
1. Identify the target market
2. Establish objectives
– Establish brand in memory and create
strong, favorable, and unique
associations
Promotion – 7
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
Promotion – 8
Effects Hierarchy
Adoption
Trial
Favorable Attitude
Brand Knowledge Structures
Brand Awareness
Promotion – 9
Promotional Planning for
Brand 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)
Promotion – 10
Promotional Planning for
Brand 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
Promotion – 11
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)
Promotion – 12
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
Promotion – 13
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
Promotion – 14
Lodish et al. (1999)
• Little relation between recall/
persuasion measure and brand sales
• Ad elasticity is 0.13
Promotion – 15
Trends in
Communications 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
Promotion – 18
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
Promotion – 19