(r)imc to buid brand equity

IMC TO BUILD BRAND EQUITY

• Information processing model of communication

• Overview of marketing communication options

• Developing IMC programme

Simple test for marketing communication effectiveness

Current Brand

knowledge

Desired Brand

knowledge

COMMUNICATION

1. What is our current brand knowledge? Have you created a detailed mental map

2. What is our detailed brand knowledge? Have you defined optimal P..O.P. & P.O.D. and brand values?

3. How does the communication option help the brand get from current to desired knowledge with customers?

Information processing model of communication

William Mcguire’s 6 step communication process:1. Exposure2. Attention3. Comprehension4. Yielding5. Intentions6. Behaviour

If there is a breakdown or failure in any one step along the way, then successful communication will not result.Therefore, for successful IMC campaign, marketers must attempt to increase the likelyhood that each step occurs.

Overview of marketing communications options

In designing & evaluating an ad campaign, it is important to distinguish the message strategy or positioning of an ad

from its creative strategy

2 main concerns in devising an advertising strategy:• Defining the proper positioning to maximise brand equity• Identifying the best creative strategy to communicate or

convey the desired positioning

Define positioning & establish brand equity

• Create competitive frame of reference:- nature of competition- target markets

• Point of parity attributes or benefits:- necessary- competitive

• Point of difference attributes or benefits:- desirable- deliverable

Identify creative strategy to communicate positioning concept

Rossiter & Percy’s Grid

Low risk

High risk

Relief

purchase

Relief

purchase

Reward

purchase

Reward

purchase

Established target audience

New target audience

*Brand recognitionat point of purchase

#BrandRecallprior to

purchase

*Brand leads to category requirements#Category requirement leads to the brand

Brand attitudeInformational Transformational

Negative PositiveMotivation

Identify creative strategy to communicate positioning concepts:• Informational (benefit elaboration):

- problem solving

- demonstration

- product comparison

- testimonial (celebrity or unknown consumer)• Transformational (imagery portrayal):

- typical or aspirational usage situation

- typical or aspirational usage of products

- brand personality or values• Motivational (“borrowed interest” techniques):

Humour Sex appeal Fear

Warmth Music Special effects

Alternative Communication Options(Consumer)

• Media Advertising (TV, radio, newspapers, magazines)

• Direct Response Advertising

• Interactive (on-line) Advertising & Web Sites

• Outdoor Advertising (billboards, posters, cinema)

• Point-of-Purchase Advertising

• Trade Promotions

• Consumer Promotions

• Sponsorship of Event Marketing

• Publicity or Public Relations

Radio ads

According to David Aaker four factors are

critical:

1. Identify your ad earlier in the commercial

2. Identify it often

3. Promise the listeners a benefit early in the commercial

4. Repeat it often

Print adsFollowing questions must be answered affirmativelyconcerning the execution elements:1. Is the message clear at a glance?2. Is the benefit in the headline?3. Does the illustration support the headline?4. Does the first line of the copy support or explain the

headline or illustration?5. Is the ad easy to read & follow?6. Is the product easily identifiable?7. Is the brand or sponsor clearly identified?

Ad Campaign Considerations• Campaigns make brands -- not single ads• Be creative and develop creative themes

– Avoid slavishly sticking to executional formulas

• Brand communications should sing like a choir – Multiple voices

– Multiple notes

• Find fresh consumer insights & compelling brand truths

• Productively conduct ad research

Common Mistakes in Developing Advertising

• Failure to distinguish ad positioning (what you say) from ad creative (how you say it)

• Mistaken assumptions about consumer knowledge

• Improperly positioned

• Failure to break through the clutter

• Distracting, overpowering creative in ads

Common Mistakes in Developing Advertising

(cont.)

• Under-branded ads

• Failure to use supporting media

• Changing campaigns too frequently

• Substituting ad frequency for ad quality

Direct Marketing

3 critical ingredients:

1. Developing an up-to-date & informative list of current & future potential cutomers

2. Putting forth the right offer in the right manner

3. Tracking the effectiveness of the marketing programme

On-line

• Banner ads

• “Sky-scrapper” ads

• Personalized messages

Sales promotion

Issues in deciding sales promotion:

1. Type: What type of promotion should be used? Immediate vs. delayed value? Price vs. added value?

2. Product scope: To what pack sizes or models should promotion apply? Multiple or selective?

3. Market scope: In which geographic market should the promotion be offered?

4. Timing: When should promotion be offered & for how long?

5. Discount rate: What implicit or explicit discounts should be attached to the promotion?

6. Terms: What terms of sale should be attached to the promotion?

Event Marketing & SponsorshipReasons for sponsoring events:1. To identify with a particular target market or lifestyle2. To increase awareness of the company or product name3. To create or reinforce consumer perceptions of the key

brand associations4. To enhance corporate image dimensions5. To create experience & evoke feelings6. To express commitment to the community or on social

issues7. To entertain key elements or reward key employees8. To permit merchandise or promotional opportunities

Public Relations & Publicity

MARKETERS NOW RECOGNISE THAT

ALTHOUGH PUBLIC RELATIONS IS INVALUABLE

DURING A MARKETING CRISIS,

IT ALSO NEEDS TO BE A ROUTINE PART OF ANY MARKETING COMMUNICATIONS PROGRAMME.

EVEN COMPANIES THAT PRIMARILY USE ADVERTISING & PROMOTIONS CAN

BENEFIT FROM WELL-CONCEIVED &

WELL-EXECUTED PUBLICITY

Buzz marketing

Occasionally, a product enters the market with a little fanfare

yet is still able to attract a strong consumer base:• Something about the product attracts a core group of

consumers, who are eager to spread the word of the product among their peers

• News travels in this fashion until enough tongues are wagging to constitute a “buzz” about the brand

• Increasingly companies are attempting to create consumer word-of-mouth through various techniques often caled buzz marketing

Developing Integrated Marketing Communications Programme

• Strategies behind marketing communications programmes have changed dramatically over the years

• Marketers should “mix & match” communications options to build brand equity:- choose a variety of different communication options that share common meaning & content but also offer different, complementary options- establishing brand awareness & a positive brand image

in consumer’ minds produces the knowledge structures that can affect consumer response & generate customer customer-based brand equity

Matching communication options

In assessing collective impact of an IMC programme,

the overriding goal is to create the most effective &

efficient communication programme possible

6 criteria identified to achieve this goal:

1. Coverage

2. Contribution

3. Commonality

4. Complementarity

5. Versatility

6. Cost

Matching communication options (contd.)1. Coverage: inherent communication ability of a marketing option, as

suggested by

2. Contribution: create the desired response & communication effect from consumers in the absence of exposure in any other communication option

3. Commonality: create consistent & coherent brand image

4. Complementary: extent to which different associations & linkages are emphasized across communication options

5. Versatility: effect for different group of consumers

6. Cost

CommunicationOption A

Communication Option C

CommunicationOption B

Audience

Audience Communication Option Overlap

Note: Circles represent the market segments reached by various communication options. Shaded portions represent areas of overlap in communication options.

Evaluating IMC Programs• Coverage - what proportion of the target

audience is reached by each communication option employed, as well as how much overlap exists among options

• Cost - what is the per capita expense

Evaluating IMC Programs (cont.)• Contribution - the collective effect on brand

equity in terms of

– enhancing depth & breadth of awareness

– improving strength, favorability, & uniqueness of brand associations

• Commonality - the extent to which information conveyed by different communication options share meaning

Evaluating IMC Programs (cont.)

• Complementarity - the extent to which different associations and linkages are emphasized across communication options

• Versatility - the extent to which information contained in a communication option works with different types of consumers

• Different communications history

• Different market segments

“Keller Be’s”

• Be analytical: Use frameworks of consumer behavior and managerial decision-making to develop well-reasoned communication programs

• Be curious: Fully understand consumers by using all forms of research and always be thinking of how you can create added value for consumers

• Be single-minded: Focus message on well-defined target markets (less can be more)

• Be integrative: reinforce your message through consistency and cuing across all communications

“Keller Be’s”

• Be creative: State your message in a unique fashion; use alternative promotions and media to create favorable, strong, and unique brand associations

• Be observant: Monitor competition, customers, channel members, and employees through tracking studies

• Be realistic: Understand the complexities involved in marketing communications

• Be patient: Take a long-term view of communication effectiveness to build and manage brand equity

Using IMC choice criteria

Can provide some guidance for designing &

implementing IMC programme.

It involves:

• Evaluating communications options

• Establishing priorities & tradeoffs

• Executing the final design & implementation

Using the IMC choice criteria• Commonality & complementarity will often be

inversely related

• Versatility & complementarity will often be inversely related

• Commonality & versatility on the other hand, do not share an obvious relationship