Transcript Bus472-FALL2008

“There are no products or
services . . .
There are only customers”
Peter Drucker
Monologue
Dialogue
Dialogue
Experience
Dialogue
Experience
Relationship
Marketing is the process
that creates and keeps a
satisfied customer
“If you can’t turn yourself
into a customer, you
probably shouldn’t be in the
advertising business at all”
Leo Burnett
Listen
Whole Brain Thinking
Customers make purchase decisions
with the head (rational),
and the heart (emotional)
“Marketing is the whole
organization taken from
the customer’s point of
view.”
Peter Drucker
Best Advice on Building
Bridges To Customers
• Think and Feel Like The Customer
• Always Anticipate
• Have Fun
• Intention
• Insight
• Individual
• Inclusion
• Ingenious
• Interactive
• Investment
• Integrity
• Inevitable
IMC is a new way of thinking about and
planning the marketing process.
Mass advertising is aimed AT the customer.
Integrated marketing communications is
WITH the consumer.
Mass advertising or communications is abou
SELLING something.
Integrated communications should be about
BUYING something.
The new reality:
Brand… or Die
And Death is
Not an option
What is a Brand?
“The internalized sum of all
impressions reviewed by customers
resulting in a distinctive position
in their mind’s eye based on perceived
emotional and functional benefits.”
Duane Knapp
A brand is a set of
differentiating promises kept
that build a loyal relationship
with a customer.
Three Questions To
Ask Yourself About
Your Brand.
1.Is it truly distinctive or different
in a way that is important or
valued by its consumer?
2.Is it committed to providing
certain emotional and functional
benefits to the consumer?
3.Does it consistently fulfill its
promise and deliver on its
commitment?
Products are what the company
makes… what the customer buys
is the brand.
Products are about doing…
Brands are about feeling
(and doing)
In hyper competitive markets
your brand equity reduces risk
for the consumer and increases
loyalty for you.
Loyal customers can:
• reduce marketing costs
• create brand awareness for new
customers
• provide companies with more
time to respond to competitive
advances
What’s in it for CFO?
“Companies which base their
business on brands have out
performed the stock market
during the past 15 years.”
Citigroup
Brand Value to Market Cap
 Ford
$32.2B 57.2B
58%
 AT&T
$24.2B 102.5B
24%
 Nokia $20.7B 46.9B
44%
 BMW
16.7B
77%
5.6B
77%
11.3B
 Apple 4.3B
Great Branding Starts at Home
• holistic
• customer - centric
• brand apostles
• walk the talk
Promise - keepers
Brand Basics
1.Don’t try to be something that
you are not.
2.Differentiate your brand from
the competitors.
3.Provide associations that add
value and provide a unique
reason to purchase.
4.Maintain consistency and meet
expectations over time and all
contacts.
Give your customers a great
brand experience.
 Three New P’s of Marketing
 Three New P’s of Marketing
 • Profit
 • Passion
 • Pride
And Have Phun
Chapter 1
Integrated
Marketing
Communications:
An Overview
Copyright © 2008 Pearson Education Canada
Factors Encouraging IMC
• Media consumption trends
• Customer relationship management (CRM)
• Expanding role of database management
techniques
• Digital communications technologies
• Demand for efficiency and accountability
Needs and Motives
Needs
Absence of something
useful
Motives
Condition that prompts
action to satisfy a need
Personality and
Self-Concept
• Personality – the individual distinguishing
psychological characteristics that lead to
relatively consistent and enduring responses
to the environment
Real-Self
Self-Image
Looking-Glass
Self
Ideal Self
Focus here
Personality and
Self-Concept
• Personality – the individual distinguishing
psychological characteristics that lead to
relatively consistent and enduring responses
to the environment
Real-Self
Self-Image
Looking-Glass
Self
Ideal Self
Focus here
Demographic Segmentation:
Aging Population
Demographic Segmentation:
Other Trends
•
•
•
•
Urban growth
Household formations are different
Ethnic diversity
Gender economics
Psychographic Segmentation
• Psychographic Segmentation –
identification of a target market according
to lifestyle characteristics
– Activities, interests, and opinions (AIOs)
Reference Groups
Reference
Groups
The desire to “fit in”
affects behaviour and
buying decisions
A group of people with
a common interest
Business Market Requirements
Quality
Consistent quality on
every order
Service
Reputable suppliers with
prompt service
Supply Continuity
Provision of goods over
the long term
Price
Lowest price is not
always accepted
The Buying Centre
The Power of a Brand
Identical cereals tasted by consumers:
Vs.
59% Chose
Kellogg’s
41% Chose
No Brand
Identical TV sets examined by consumers:
Vs.
Consumers willing to pay $75 more for Hitachi than GE
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