MKTG 405-2 Integrated Marketing Communications Spring 2007.
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MKTG 405-2 Integrated Marketing Communications Spring 2007
Week of January 22, 2007 What is IMC? What are the elements of IMC? What is the IMC planning model? What is market analysis, and how important is it to IMC? How do the marketing mix elements affect IMC, and vice-versa (push & pull, etc.)? What is the difference between client organizations and IMC agencies? How are IMC agencies structured?
What is Integrated Marketing Communications (IMC)? IMC is the coordination and integration of all marketing communication tools, avenues, and sources within an organization that results in a seamless program, which has the desired impact on consumers and other end users at an acceptable cost to the organization.
What is a brand? The word “brand” is derived from the Old Norse word “brandr,” which means “to burn.” According to the AMA, a brand is a “name, term, sign, symbol, or design, or combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.”
What distinguishes a product from a brand? A product is any entity offered to a market for attention, acquisition, use or consumption that might satisfy a need or want (Kotler,2000). A brand is the sum total of consumers’ perceptions and feelings about the product’s attributes and how they perform, about the brand name and what it stands for, and about the company associated with the brand. (Achenbaum, 1993)
Customer-Based Brand Equity “... the differential effect that brand knowledge has on customer response to the marketing of that brand.” brand knowledge Kevin Lane Keller, 1998
Brand Knowledge “... is a function of awareness, which relates to consumers’ ability to recognize or recall the brand, and image, which consists of consumers’ perceptions of and associations for the brand.” –Keller, 1998
Brand Knowledge Brand Image Brand Awareness Brand Recall Brand Recognition Types of Brand Associations Favorability of Brand Associations Strength of Brand Associations Unique Nature of Brand Associations Attributes Benefits Attitudes Non-Product Related Product- Related Price User & Usage Imagery Brand Personality Feelings & Experiences Functional Experiential Symbolic Brand Knowledge
Positive brand equity results in: Greater perceived differentiation Stronger brand loyalty Larger profit margins Higher trade support Increased marketing communication effectiveness Opportunities to extend and license brand name
Brand Equity: 2005 Big Winners 2005 RankBrand2005 Brand Value ($billions) 2004 Brand Value ($billions) Percent Change 55EBAY$5.70$4.70+21% 29HSBC10.438.67+20 20SAMSUNG14.9612.55+19 41APPLE7.996.87+16 44UBS7.576.53+16
Brand Equity: 2005 Big Losers 2005 RankBrand2005 Brand Value ($billions) 2004 Brand Value ($billions) Percent Change 28SONY$10.75$12.76-16% 33MORGAN STANLEY 9.7811.50-15 56VOLKS- WAGEN 5.626.41-12 96LEVI’S2.662.98-11 13HEWLETT- PACKARD 18.8720.98-10
Other elements of IMC Direct Interactive/Internet Sales Promotion PR/Publicity Personal Selling
IMC Planning Model Review of the marketing plan Analysis of promotional program situation Analysis of communications process Budget determination Develop IMC program Integrate and implement marketing communication strategies Monitor, evaluate, and control IMC program
A Fundamental Approach to Marketing Strategy Segmentation Targeting Positioning
Definitions of Market Segmentation, Targeting, and Positioning Market segmentation: a process of dividing a heterogeneous market into homogeneous subparts Targeting: a process of selecting a market segment(s) to pursue. Positioning: a process of creating and serving a market niche defined by the customer (often relative to the competition)
What Constitutes a “Good” Segment? Uniqueness - Are there large between- group differences in segments? Responsiveness - If we design specific strategies for a segment, will that segment respond? Actionability - Can we take action with this segment? Stability - Will the segment be stable over time? Profitability - Will this segment benefit the organization?
Purposes of and Bases for Segmenting Consumer Markets Decision-making purpose Product design Advertising message Advertising media Packaging Distribution Price Bases for segmentation Benefits or attributes sought Product usage situation Benefits or attributes sought Product usage situation Buyer characteristics Heavy user characteristics Volume or size of purchase Product usage situation Shopping patterns Significance of purchase Price sensitivity Volume or size of purchase
Purposes of and Bases for Segmenting Business-to-Business Markets Decision-making purpose Sales force allocation to accounts Product design and communication appeals Communication targets Bases for segmentation Volume Location Product usage (industry type) Product usage (application type) Benefits/attributes sought Buying center members
The Targeting Decision Segment size and growth rate Firm objectives and resources Does this segment fit with our objectives? What are the success requirements for this segment? Do we possess the needed competencies?
Positioning What is positioning? Why positioning? How do you know your position?
Approaches to Positioning Attribute Price/quality Use or application Product user Product class Competition