The New World of Marketing Communication

Chapter 18: The Principles and Practice of IMC

Part 5Principle: IMC and Total Communication Copyright 2015 Pearson Education, Inc. publishing as Prentice Hall18-11What are the eight key IMC concepts, and why are they important?

How would you outline the key parts of an IMC campaign plan?

Which strategic decisions underlie effective international marketing communication?

What do we mean by 360 communication programs?Questions to Explore Copyright 2015 Pearson Education, Inc. publishing as Prentice Hall18-2Key IMC ConceptsCopyright 2015 Pearson Education, Inc. publishing as Prentice Hall18-3

3A customer focus is critical in most IMC strategies.

Although we say customer, we are really referring to all the stakeholders who impact on that customer relationship.

Relationship marketing shifts the focus from the objective of a one-time purchase to the maintenance of long-term involvement from and by all of the firms critical stakeholders.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallStakeholders and Brand Relationships18-4A customer focus is critical in most IMC strategies. Although we say customer, we are really referring to all the stakeholders who impact on that customer relationship.

Relationship marketing shifts the focus from the objective of a one-time purchase to the maintenance of long-term involvement from and by all of the firms critical stakeholders.

4Interactive communication is the glue that joins brands and their stakeholders in respectful long-term relationships.

Relevant messages delivered through media that drive positive experiences create value for consumers.

Brand relationships drive brand value.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallStakeholders and Brand Relationships18-55Permission marketing invites consumers to sign up for messages, self-selecting themselves into a brands target market. This mirrors the shift from one-way to two-way communication.

Brands are becoming more involved in social communication, where online technology permits specialized contacts.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallStakeholders and Brand Relationships18-6Permission marketing invites consumers to sign up for messages, self-selecting themselves into a brands target market. This mirrors the shift from one-way to two-way communication.

Brands are becoming more involved in social communication, where online technology permits specialized contacts.

6In 360 communication planning, many message delivery points impact how a company does business.

A total communication program monitors all these sources of brand messages.

Receiving messages is as important as sending them.

Everything a brand does, but also what it doesnt do, can send a message. You cant NOT communicate.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallTotal Communication18-7In 360 communication planning, many message delivery points impact how a company does business. What does this term mean to you? 7The concept of contact points has redefined our understanding of media as a message delivery system.

Contact points are the various ways a consumer comes in contact with a brand.

This moves from traditional advertising and marketing communication media to experiential contacts.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallMoving from channels to contact points18-88IMC planning is designed to maximize and leverage the good contact points and minimize the bad ones.

Brand touch points are contact points that touch our emotions.

The idea is to connect with consumers in ways that create higher levels of emotional engagement that lead to brand liking and lasting bonds with a brand.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallMoving from channels to contact points18-9Here, the idea is to connect with consumers in ways that create higher levels of emotional engagement that lead to brand liking and lasting bonds with a brand.9Brand communication is about the impact of various impressions and brand meanings that evolve as the messages interact and reinforce one another.

The principle of synergy proposes that 2 + 2 = 5.

Messages that reinforce one another have a multiplier effect that not only cements a brand impression, but also polishes and magnifies it.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallMessage synergy18-10The principle of synergy proposes that 2 + 2 = 5. As a class, how do you think this illustrates the concept of synergy?

It means that messages that reinforce one another have a multiplier effect that not only cements a brand impression, but also polishes and magnifies it.

10Synergy happens when all the messages work together to create a coherent brand perception.

Brand stewards and IMC planners insist that strategic consistency be at the core of the brand, and be clear in every message.

Strategic consistency drives synergy.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallMessage synergy18-1111Message synergy is the basis for seeing a brand as an integrated perception.

People automatically integrate brand messages and experiencesits a natural process in perception.

Synergy happens when all the messages work together to create a coherent brand perception.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallA brand is an integrated perception18-12People automatically integrate brand messages and experiencesits a natural process in perception.

As IMC experts have noted, all brand communication is integrated in the mind of the consumer. The messages cannot be kept separate. 12There is an art and a science to IMC management. A successful brand is the product of both:

Science a complex system of activities.

Art a vision of the essence of the brand in which all the pieces and parts fit together perfectly in a coherent brand perception.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallUnified brand vision18-13There is an art and a science to IMC management.

How is IMC management an art? How is it a science? 13You cant be integrated externally if you are not integrated internally.

A core brand strategya shared visiondrives the entire organization.

Cross-functional management across department lines delivers unity of vision, the foundation for the consumers integrated brand perception.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallInternal integration18-1414 An integrated brand is one that has brand integrity.

It is more believable because what it says and does matches what others say about it.

Being a good corporate citizen adds trust to brand relationships and embellishes a brands reputation.

Integration leads to brand integrity.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallBrand integrity18-15An integrated brand is one that has brand integrity. It is more believable because what it says and does matches what others say about it.

Being a good corporate citizen adds trust to brand relationships and embellishes a brands reputation. 15IMC Campaign PlanningCopyright 2015 Pearson Education, Inc. publishing as Prentice Hall18-1616A key objective is to create consistency among all the marcom tools and platforms.

Spherical branding means that no matter what your angle of vision, the brand always looks the same. We call this 360 planning. Both refer to looking at a brand from all directions and points of view.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallIMC campaign planning18-17A key objective is to create consistency among all the marcom tools and platforms. Spherical branding means that no matter what your angle of vision, the brand always looks the same.

We call this 360 planning. Both refer to looking at a brand from all directions and points of view.

17An IMC campaign is a complex set of interlocking, coordinated activities with a beginning and end.

An IMC campaign plan:

outlines objectives and strategies for different but related marketing communications efforts

that appear in different media, use different marketing communication tools

and convey different but complementary brand-consistent messages.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallWhat is a campaign plan?18-1818A typical plan includes:

Situation analysisKey strategic campaign decisionsMarcom mixMessage strategyIMC media and contact pointsManagement and campaign controls

Lets take a look at each of theseCopyright 2015 Pearson Education, Inc. publishing as Prentice HallWhat is a campaign plan?18-1919After research is compiled, planners try to make sense of the findings using a situation analysis.

SWOT Analysis: The primary tool used to make sense of the information gathered and identify a key problem related to a brand or product.

Strengths and weaknesses are internally focused, and opportunities and threats lie in the marketing environment.

The idea is to leverage the strengths and opportunities and address the weaknesses and threats.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallSituation analysis18-20SWOT Analysis: This is the primary tool used to make sense of the information gathered and identify a key problem related to a brand or product.

What does SWOT stand for?

Strengths and weaknesses are internally focused, and opportunities and threats lie in the marketing environment. The idea is to leverage the strengths and opportunities and address the weaknesses and threats.

20Key communication problem(s)Planners analyze the market situation for communication problems that affect the successful marketing of a product, as well as opportunities.

IMC can solve only message-related problems such as image, attitude, perception, and knowledge or information.

A campaign works if it creates the desired brand impression, influences people to respond, and separates the brand from its competition.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallSituation analysis18-21Planners analyze the market situation for communication problems that affect the successful marketing of a product, as well as opportunities.

Remember -- IMC can solve only message-related problems such as image, attitude, perception, and knowledge or information. 21A strategy can focus on branding, positioning, competition, or creating category dominance.

The strategy may be designed to change consumers perception of brand price or pricevalue relationship.

The strategy may also seek to increase the size of the market or share of wallet.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallCampaign strategy18-2222The message strategy for the launch of Coke Zero used self-deprecating humor with a Big Idea that the Coca-Cola legal department wanted to sue Coke Zero for taste infringement.Copyright 2015 Pearson Education, Inc. publishing as Prentice Hall18-23

23ObjectivesEvery campaign must be guided by specific, clear, and measurable objectives.

One cannot overstate the importance of writing focused and measurable objectives.

With a benchmark, the planner uses a comparable effort, such as a similar product or prior brand campaign, to predict a logical goal. Copyright 2015 Pearson Education, Inc. publishing as Prentice HallCampaign strategy18-24Every campaign must be guided by specific, clear, and measurable objectives. One cannot overstate the importance of writing focused and measurable objectives. 24Targeting and engaging stakeholdersA stakeholder is to any group of people who have a stake in the success of a company or brand.

Employees are particularly important, and their support or buy-in for marketing communication programs is managed through internal marketing.

Overlapping membership complicates message strategy and demands that there be a certain core level of consistency in all brand messages.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallCampaign strategy18-2525Brand strategyMessage consistency needs a heart, core, soul, or DNAa central concept around which various messages can be unified.

This is brand essence; it describes what makes the brand different and distinctive from all other brands in its product category.

Effective IMC plans lead to profitable long-term brand relationships. Copyright 2015 Pearson Education, Inc. publishing as Prentice HallCampaign strategy18-26Message consistency needs a heart, core, soul, or DNAa central concept around which various messages can be unified. This is brand essence; it describes what makes the brand different and distinctive from all other brands in its product category.26IBM used this World Peace ad to demonstrate its commitment to world trade and the international marketing of its products in this ad campaign that ran on the eve of World War II.Copyright 2015 Pearson Education, Inc. publishing as Prentice Hall18-27

27The decision about which marcom tools to use is based on an analysis of their strengths and weaknesses and how they can meet objectives.

Certain tools are better at delivering specific objectives. Copyright 2015 Pearson Education, Inc. publishing as Prentice HallThe IMC mix18-2828The main areas:

AdvertisingPublic relations Consumer sales promotionTrade sales promotionPoint of purchase Copyright 2015 Pearson Education, Inc. publishing as Prentice HallThe IMC mix18-29Direct marketingSponsorship and eventsPackagingSpecialtiesGuerilla marketingCustomer serviceAs you look over the list, think about whats required to launch a new product. Which tools would you select as the most appropriate? 29Message strategies are matched to stakeholders based on insights into what moves them.

Message strategy decisions support the overall campaign objectives and direction.

Strategic consistency comes from the creative theme and the consistent presentation of the brand position and personality.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallMessage strategy18-30Message strategies are matched to stakeholders based on insights into what moves them. Message strategy decisions support the overall campaign objectives and direction.

Strategic consistency comes from the creative theme and the consistent presentation of the brand position and personality.

30An online mini-film commercial for American Express featuring Jerry Seinfeld was designed to entertain and create brand liking. It also generated buzz, which extended its impact through the power of word of mouth.Copyright 2015 Pearson Education, Inc. publishing as Prentice Hall18-31

31When most people think about media, they think about traditional mass media and advertising.

Media planning in an IMC context does more than just deliver targeted messages.

Media also involve, engage, and connect consumers to the brand and to one another.

Copyright 2015 Pearson Education, Inc. publishing as Prentice HallIMC media and contact points18-3232Multichannel and Multiplatform

Media planning involves all different types of traditional media, a practice identified as multichannel or multimedia.

IMC planners think about message delivery systems, and that includes all of the media used in all the various marketing communication functions. Copyright 2015 Pearson Education, Inc. publishing as Prentice HallIMC media and contact points18-33Media planning involves all different types of traditional media, a practice identified as multichannel or multimedia.

IMC planners think about message delivery systems, and that includes all of the media used in all the various marketing communication functions.

33Contact point management

Another distinctive feature of IMC media plans is its emphasis on every important contact point.

These can include a variety of experiential media, as well as conventional media.

As a class: Review the case study on the Tokyo-based Dentsu, and how its ContactPoint Management works.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallIMC media and contact points18-3434Cross-media integration

Media selection also considers message needs. Here, media planning and message planning intersect.

The challenge is to create cross-media integration, which means the various media work together to create coherent brand communication. Copyright 2015 Pearson Education, Inc. publishing as Prentice HallIMC media and contact points18-35Here, the challenge is to create cross-media integration, which means the various media work together to create coherent brand communication.

35In order to manage an IMC a campaign or program, a manager must keep up with a complex set of tasks.

All campaigns are designed to operate within parameters including budgets, schedules, and evaluation.

These controls keep the activities on track, on budget, and on strategy.

Copyright 2015 Pearson Education, Inc. publishing as Prentice HallManagement and campaign controls18-3636Budgeting and schedulingBudgeting depends on the organization, the area it serves, time frame, targeted stakeholders, and media.

The budget determines: how many stakeholders can be targeted.how many media and platforms the campaign can support.the length of time the campaign can run.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallManagement and campaign controls18-37The budget determines how many stakeholders can be targeted, how many media and platforms the campaign can support, and the length of time the campaign can run.

37Budgeting and scheduling

Historical method: Historical information is the source for this common budgeting method. Objective-task method looks at the objectives for each activity and determines the cost of accomplishing each objective.

Percentage-of-sales method compares the total sales with the total budget during the previous year or the average of several years.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallManagement and campaign controls18-3838Budgeting and scheduling

Competitive budgets uses competitors budgets as benchmarks and relates the amount invested in advertising to the products share of market.

All you can afford: When a company allocates whatever is left over to marketing communication, it is using this method.

This is really not a method, but rather a philosophy about advertising.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallManagement and campaign controls18-3939EvaluationAdvertising and other marketing communication agencies are creating tools and techniques to help marketers evaluate their efficiency and effectiveness. The issue of accountability is made more complicated by the growing use of global marketing.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallManagement and campaign controls18-40Advertising and other marketing communication agencies are creating tools and techniques to help marketers evaluate their efficiency and effectiveness. The issue of accountability is made more complicated by the growing use of global marketing.

40International IMC CampaignsCopyright 2015 Pearson Education, Inc. publishing as Prentice Hall18-4141Agencies involved with international campaigns need an international organizational structure.

Organization depends on whether the client company is following a standardization or localization strategy.

Some agencies exercise tight control, while others allow more local autonomy. Copyright 2015 Pearson Education, Inc. publishing as Prentice HallInternational IMC campaigns18-42Agencies involved with international campaigns need an international organizational structure. Organization depends on whether the client company is following a standardization or localization strategy.

Some agencies exercise tight control, while others allow more local autonomy.

42Charmin continues to emphasize softness in its international marketing. This cuddly bear was used in a campaign Mexico. Note that it is largely a nonverbal execution, which is easier to use for global campaigns than those with a lot of words.Copyright 2015 Pearson Education, Inc. publishing as Prentice Hall18-43

43Strategic DecisionsThe problem of managing brand consistency limits most objectives to awareness and recall.

However, more specific objectives may be needed in individual markets. Copyright 2015 Pearson Education, Inc. publishing as Prentice HallInternational IMC campaigns18-4444Setting the BudgetAll the budgeting techniques apply in foreign markets.

With one plan for multiple markets, many companies use objective-task budgeting, which entails a separate budget for each foreign market. Copyright 2015 Pearson Education, Inc. publishing as Prentice HallInternational IMC campaigns18-45With one plan for multiple markets, many companies use objective-task budgeting, which entails a separate budget for each foreign market.

45Central Control versus Local Adaptation

Some marketers develop centralized global campaigns; others develop local campaigns in every major market.

International brand communication campaigns have two basic starting points:

Success in one country A centrally conceived strategyCopyright 2015 Pearson Education, Inc. publishing as Prentice HallInternational IMC campaigns18-4646Central Control versus Local Adaptation

Local initiative: A successful campaign, conceived for national application, is modified for use in other countries. Centrally conceived campaigns: A work team assembles from around the world to present, debate, and agree on a basic strategy as the foundation for the campaign. Copyright 2015 Pearson Education, Inc. publishing as Prentice HallInternational IMC campaigns18-47Under the local initiative model, a successful campaign is conceived for national application and then modified for use in other countries.

In centrally conceived campaigns, a work team assembles from around the world to present, debate, and agree on a basic strategy as the foundation for the campaign.

47Central Control versus Local Adaptation

Variations on central campaigns: Variations on the centrally conceived campaign. The lead agency develops the campaign elements and prepares a standards manual for use in other countries.

Bottom-up creativity: Sometimes a competition may be used to find the best new idea. Copyright 2015 Pearson Education, Inc. publishing as Prentice HallInternational IMC campaigns18-4848Executing an international campaign

Usually more complex than a national campaign.

The creative may need to be reshot with local models and settings as well as language translation.

Language is always a problem for a campaign that is dependent on words rather than visuals. Copyright 2015 Pearson Education, Inc. publishing as Prentice HallInternational IMC campaigns18-49Executing an international campaign is usually more complex than a national campaign. The creative may need to be reshot with local models and settings as well as language translation. Language is always a problem for a campaign that is dependent on words rather than visuals.

49The IMC factor in international campaigns

To create a coherent brand impression on a global level requires horizontal and vertical coordination.

Vertical coordination relates to key planning decisions, such as targeting, positioning, objectives, strategies, and tactics.

Horizontal coordination involves all countries and regions working on the plan.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallInternational IMC campaigns18-5050Managing 360 Communication ProgramsCopyright 2015 Pearson Education, Inc. publishing as Prentice Hall18-5151An ongoing, multichannel, multiplatform, multistakeholder approach to IMC is possible only with an organizational commitment to integrated communication programs.

360-degree communication is driven by a unifying brand vision that surrounds all brand interactions with all stakeholdersa vision that must be shared by everyone involved with the brand.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallManaging 360 Communication Programs18-52An ongoing, multichannel, multiplatform, multistakeholder approach to IMC is possible only with an organizational commitment to integrated communication programs.52Concern for social issues is increasingly important for for-profit companies because they want to be seen as socially responsible.

Being a good citizen in actions as well as words is important in building and maintaining a positive brand reputation.

Adopting a good cause and helping in its fund-raising and other community-oriented efforts is called cause marketing.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallCause and mission marketing18-5353A website powered by good intentions of the Process for Progress site, which explains how the credit card processing company donates 15 percent of its profits to a good cause.Copyright 2015 Pearson Education, Inc. publishing as Prentice Hall18-54

54If a commitment reflects a companys core business strategy, it is called mission marketing.

Mission marketing links a companys mission and core values to a cause that connects with its customers interests.

Mission marketing also contributes to synergy through brand integrity.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallCause and mission marketing18-55If a commitment reflects a companys core business strategy, it is called mission marketing. Mission marketing links a companys mission and core values to a cause that connects with its customers interests. Mission marketing also contributes to synergy through brand integrity.

55The Integration Triangle identifies three key aspects of brand communication that must work together to create integration as well as integrity:

What the company or brand says about itself; How the company or brand performs; What other people say about it.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallCause and mission marketing18-5656The problem of departmental silos with each marcom function going its own way is a barrier to integrated planning.

The solution is cross-functional management with a team of functional area representatives who coordinate their activities.

Another concern is coordinating all the agencies involved in creating the various brand messages. Copyright 2015 Pearson Education, Inc. publishing as Prentice HallInternal integration18-57The problem of departmental silos with each marcom function going its own way is a barrier to integrated planning. The solution is cross-functional management with a team of functional area representatives who coordinate their activities.57A cross-functional brand-focused team involves members from relevant departments that interact with customers, stakeholders, and outside agencies.

The team operates with a singular brand vision as it plans marketing communication, monitors its impact, and tracks consumer response.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallInternal integration18-58Here, a cross-functional brand-focused team involves members from relevant departments that interact with customers, stakeholders, and outside agencies. The team operates with a singular brand vision as it plans marketing communication, monitors its impact, and tracks consumer response.

58In Chapter 19, we will wrap up our marketing communication journey with a discussion of evaluation.

This is the last and most important step in proving the effectiveness of IMC programs and campaigns.

Copyright 2015 Pearson Education, Inc. publishing as Prentice HallWhere Were Headed Next18-59Chipotle Cultivates a Better WorldChipotles annual report summarizes its marketing philosophy and a valuable lesson for students of advertising and IMC:

Our marketing has always been based on the belief that the best and most recognizable brands arent built through advertising and promotional campaigns alone, but rather through all the ways people experience the brand.

Copyright 2015 Pearson Education, Inc. publishing as Prentice HallIts a Wrap18-60Lets analyze this quote as a class. How does such a philosophy toward branding result in greater brand recognition and sales? 60Chipotle Cultivates a Better WorldChipotle is cultivating an identity that is relevant to the audience, the brand, and the company.

The company has moved away from advertising focused primarily on outdoor and radio.

These days, Chipotle engages consumers in new ways, as demonstrated in this campaign.Copyright 2015 Pearson Education, Inc. publishing as Prentice HallIts a Wrap18-61Which key Chapter 18 lessons can you think of that apply to this case? 61