Using Advertising and Promotion to Build Brands

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Presentation transcript:

Using Advertising and Promotion to Build Brands For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Using Advertising and Promotion to Build Brands Chapter 1 Using Advertising and Promotion to Build Brands For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin

What are the functional areas of marketing communication? Chapter Outline What are the functional areas of marketing communication? What is the IMC concept and process? Why is integration so important in marketing communication?

Chapter Perspective: Changing World Old World New World “Talking At” Consumers “Talking At” Consumers Two-way Dialogue With Consumers Two-way Dialogue With Consumers Focus on Winning New Customers Focus on Winning New Customers Focus on Building Long Term Relationships With Consumers Focus on Building Long Term Relationships With Consumers Marketers Relied Primarily on Advertising and Promotions Marketers Relied Primarily on Advertising and Promotions Marketers Use and Coordinate Many Different Forms of Communication With Consumers

Opening Case: AFLAC

Opening Case: AFLAC Challenge: Answer: Results: Only 14% recognized AFLAC brand Only 14% recognized AFLAC brand An IMC program featuring: “The Duck” as an anchor of consistent set of “one look, one voice” messages The coordinated use of advertising, public relations, and sales promotion An IMC program featuring: “The Duck” as an anchor of consistent set of “one look, one voice” messages The coordinated use of advertising, public relations, and sales promotion 90% of targeted consumers are now aware of AFLAC 30% increase in sales

Brands Can Become Very Familiar to Consumers What Is a Brand? Brand: A perception resulting from experiences with, and information about, a company or line of products. Brands Can Become Very Familiar to Consumers

What is Marketing Communication? Marketing Communication: Creating, delivering, managing, and evaluating brand messages which are the information and experiences that impact how a brand is perceived. Product Price Place Promotion Marketing Promotion is the Primary Focus

How would you explain “IMC” to someone? Think About It IMC How would you explain “IMC” to someone?

Coke: A Successful User of MC to Build a Brand

What Are The Functional Areas Of MC? Advertising Functions

Tales From the Real World Since IMC is a relatively young field, even some professionals in the real world are not quite sure what it entails. Unfortunately, a lot of people have the mistaken perception that IMC is simply another term for advertising. When you complete this course, hopefully you’ll add value in your new job by being able to correctly explain that IMC is much more than advertising and by using this knowledge to make your organization more profitable.

What Are The Functional Areas Of MC? Advertising Advertising Direct Marketing Direct Marketing Customer Service Publicity (Public Relations) Publicity (Public Relations) Functions Events & Sponsorships Events & Sponsorships Sales Promotion Sales Promotion Packaging Personal Selling Packaging Personal Selling

What Is IMC Media? IMC Media: The means by which the various types of marketing communication messages are sent and received

The Media of IMC Television Television Radio Radio Telephone Newspapers Newspapers Media Mail Mail Magazines Magazines Internet Outdoor Internet Outdoor

IMC Concept and Process IMC Concept: A process for managing the brand messages that impact customer relationships

IMC In Action: Saturn

IMC In Action: Saturn Challenge: Answer: Results: Launch a new car brand Launch a new car brand An IMC program featuring: “New Kind of Car Company” message Focus on satisfied owners as part of a family No hassle buying and servicing policies An IMC program featuring: “New Kind of Car Company” message Focus on satisfied owners as part of a family No hassle buying and servicing policies Saturn has successfully developed a unique brand image Saturn owners feel part of the Saturn family

Figure 1-1: IMC is an ongoing process

Why Is Integration So Important? Synergy = When brand messages are integrated… When brand messages are integrated… …they reinforce each other… …they reinforce each other… … and create a synergy effect like: 2 + 2 = 5

Results Depend on Interaction of the two (or more) variables Example: “2 + 2 = 5” Statement Not True…Interaction Results Depend on Interaction of the two (or more) variables Example: $10 Billboard = $20 Sales $10 TV Ad = $30 Sales But… $20 TV/Billboard = $60 Sales

FedEx Has Done a Good Job of Integrating Brand Messages

Insight: 4 Benefits of IMC It Drives Brand Differentiation IMC helps make your brand stand out vs. competitors Brings Greater Accountability IMC allows you to track sales and profits based on your brand’s relationships with consumers Increases the Level of Trust IMC focuses on long-term relationships, not one-time sale Provides Internal Focus IMC focuses on “one look, one voice”

Final Note: IMC Cuts Through Message Clutter IMC Strategy

Questions - 1 What is Advertising, Primary Use? Marketing Communication Mix? IMC Definition? Key Elements? Why is Keeping Customers an Ongoing Process? Sales Transactions or relationships? Why? How Does Integration Create Efficiency?