Part 1 Principle: Back to Basics Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

1. What is the difference between marketing communication and brand communication? 2. How is the marketing mix related to marketing communication? 3. What is integrated marketing communication? 4. How does marketing communication contribute to the development of a brand? 5. What current trends affect marketing and brand communication? Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Involves these tools and functions:  Advertising  Public relations  Sales promotion  Direct response  Events and sponsorships  Point of sale  Digital media  And more Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 A complex system of brand messages  All the various marketing communication messages and brand experiences that create and maintain a coherent brand Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Marketing is designed to build brand and customer relationships that:  generate sales and profits.  for nonprofits: volunteers and donations. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Marketing managers manipulate the marketing mix, also called the four Ps: 1. Product 2. Place 3. Pricing 4. Promotion Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Urban Decay cosmetics projects a street-smart attitude in their packaging and product names.

 Marketing also focuses on managing customer relationships to benefit all of a brand’s stakeholders.  Stakeholders are all individuals and groups who have a stake in the success of the brand.  Positive relationships create value for a brand. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

“The challenge is to manage all of the messages delivered by all aspects of marketing communication so that they work together to present the brand in a coherent and consistent way.” Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Who are the key players? There are four categories: 1. Marketers 2. Suppliers 3. Vendors 4. Distributors and retailers 5. Marketing partners Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

These include: 1. Consumer 2. Business-to-business 3. Institutional 4. Channel Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Different Markets This group of ads demonstrates advertising directed at three types of markets: consumer (Keds), institutional (GE aircraft engines), and channel (“Ka-ching”).

Product  Design, performance, and quality are key elements.  Communication works to: ◦ build awareness of a brand. ◦ explain how the new product works. ◦ how it differs form competitors. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Pricing It is based on:  What the market will bear.  The competition.  The economic well-being of the consumer.  The relative value of the product.  The consumer’s ability to gauge that value. The price sends a message! Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Place (distribution)  It includes the channels used to make the product easily accessible to customers.  The distribution channel also sends a message.  The Internet raises new distribution questions related to “clicks or bricks.”  Marketers may use a “push” or “pull” strategy. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

“Every part of the marketing mix -- not just marketing communication -- sends a message.” Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 IMC is the practice of coordinating all brand communication messages and messages from the marketing mix decisions.  Integration means every message is focused and works together.  This creates synergy: the whole has more impact than the sum of its parts. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

“IMC is like a musical score that helps the various instruments play together. The song is the meaning of the brand.” Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Let’s define “brand:” A brand is a perception, often imbued with emotion, which results from experiences with and information about a company or a line of products.” Products carry brands, but so do organizations. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

“A brand transforms products into something more meaningful than the product itself.” Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Successful brands:  Are distinctive  Create an association  Offer a benefit  Carry a heritage  Are simple  Are often based on a distinctive graphic: a logo, trademark, character or other visual cue Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

A name, term, design, or symbol that identifies the goods, services, institution, or idea sold by a marketer. Brand Identity

 Brand position identifies the location a product or brand occupies in consumers’ minds relative to competitors.  Brand promise identifies key selling points for the product. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Perceptual Map

 Brand image is a mental picture or idea about a brand that contains both associations and emotions.  Brand personality humanizes an organization or a brand. It symbolizes the personal qualities of people you know. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Brand value The value of branding lies in the power of familiarity and trust to win and maintain consumer acceptance. Brand value comes in two forms: 1. Value to a consumer 2. Value to the corporation Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Brand equity defined “The intangible value of the brand based on the relationships with its stakeholders as well as its intellectual property value.” Brands have a financial value that can be plotted on a balance sheet. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

“Brand relationships drive brand value.” Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Leveraging brand equity  Brand extension The use of an established brand name with a related line of products.  Co-branding Uses two brand names owned by two separate companies to create a partnership offering.  Brand licensing The brand is rented to another business partner.  Ingredient branding The brand name is used in manufacturing, advertising or other promotion. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 Relationship-building communication programs are used to build strong relationships between loyal customers and the brands they purchase and repurchase.  Brand relationship communication aims to deliver reminders about familiar brands and build trust. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Managers are challenged to prove they are pursuing the most effective marketing strategies. Return on investment (ROI) What did the program cost, and what did it deliver in sales? Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 Global marketing is growing rapidly.  A local brand is marketed in a single country.  A regional brand is one marketed throughout a global region.  An international brand is available in many different countries.  A global brand is available virtually everywhere in the world. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 Here are a few brands that represent different types of geographical marketing strategies.  As a class: See if you can identify each of these. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 Word-of-mouth communication has emerged because of its inherent persuasiveness.  You tend to believe what you hear from a friend, family member, or other important person in your life.  Viral marketing refers to information spread quickly on the Internet through a wide network of contacts. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Golden Arches, Golden Opportunity McDonald’s sells more than fast food; a positive customer experience is its goal.  It has promoted itself with a dynamic, creative, and evolving narrative that involves customers.  It hasn’t forgotten its core of who McDonald’s is. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall