BRAND MANAGEMENT

MKT 543
 INTEGRATING MARKETING
COMMUNICATIONS TO BUILD Chapter 6
BRAND EQUITY
 MARKETING COMMUNICATION
Means by which firms attempt to inform, persuade, and
remind consumers about the brands they sell
 Can contribute to brand equity by:
▪ Creating awareness of the brand
▪ Linking points-of-parity and points-of-difference
associations to the brand in consumers’ memory
▪ Eliciting positive brand judgments or feelings
▪ Facilitating a stronger consumer-brand connection
and brand resonance
 THE NEW MEDIA ENVIRONMENT
Has changed dramatically in recent years
 Traditional advertising media seem to be losing their
grip
 Digital revolution has changed the way consumers
learn and talk about brands
 Changing media landscape has forced marketers to
re-evaluate how they should best communicate with
consumers
Challenges in
Designing
Brand-Building
Communications Information processing model of communications

Role of Multiple
Communications
 CHALLENGES IN DESIGNING BRAND-BUILDING
COMMUNICATIONS

Skilfully designed and implemented marketing

communications programs
 Should be efficient and effective
 Require careful planning and creative knack
 INFORMATION PROCESSING MODEL OF
COMMUNICATIONS
For a person to be persuaded by any form of
communication the following steps must occur:
 Exposure - Seeing or hearing communication
 Attention - Noticing communication
 Comprehension - Understanding the intended
message
 Yielding - Responding favorably to the message
 Intentions - Planning to act in the desired manner of
communication
 Behavior - Actually acting in the desired manner
AN IDEAL ADVERTISEMENT CAMPAIGN
WOULD ENSURE:
• The right consumer is exposed to the right message
at the right place and at the right time.
• The creative strategy for the advertising causes the
consumer to notice and attend to the ad but does
not distract from the intended message.
• The ad properly reflects the consumer’s level of
understanding about the product and the brand.
AN IDEAL ADVERTISEMENT CAMPAIGN
WOULD ENSURE:
• The ad correctly positions the brand in terms of
desirable and deliverable points-of-difference and
points-of-parity.
• The ad motivates consumers to consider purchase of
the brand.
• The ad creates strong brand associations to all
these stored communication effects so that they can
have an effect when consumers are considering
making a purchase.
FIGURE - SIMPLE TEST FOR MARKETING
COMMUNICATION EFFECTIVENESS
 ROLE OF MULTIPLE COMMUNICATIONS
Advantages of multiple communications
 Optimal utilization of monetary and other
resources
 Different communication options also may
target different market segments
MARKETING COMMUNICATION OPTIONS
Advertising and
Promotion

Interactive Marketing
Marketing
Communication
Events and Experiences

Mobile Marketing
ADVERTISING
Any paid form of non-personal presentation and
promotion of ideas, goods, or services by an
identified sponsor
Powerful means of creating strong, favorable, and
unique brand associations and eliciting positive
judgments and feelings
Specific effects are difficult to quantify and
predict
TYPES OF ADVERTISING MEDIA

Television Radio Print

Direct Place
Response
 TELEVISION
Advantages
• Effective means of vividly demonstrating product attributes and
persuasively explaining their corresponding consumer benefits.
• Compelling means for dramatically portraying user and usage
imagery, brand personality, emotions, and other brand
intangibles.
Disadvantages
• Due to the fleeting nature of the message, consumers can
overlook product-related messages and the brand itself.
• The large number of ads and nonprogramming material on
television creates clutter that makes it easy for consumers to
ignore or forget ads.
• The large number of channels creates fragmentation, and the
widespread existence of digital video recorders gives viewers
the means to skip commercials.
 TELEVISION
Guidelines
• In designing and evaluating an ad campaign, marketers
should:
• Define the proper positioning to maximize brand
equity.
• Identify the best creative strategy to communicate
or convey the desired positioning.
• Effective TV ad should contribute to brand equity in
some demonstrable way.
• Copy testing can be conducted to evaluatethe
effectiveness of message and creative strategies.
 RADIO
Advantages
• Is flexible and stations are highly targeted.
• Ads are relatively inexpensive to produce and place.
• Effective medium in the morning and can effectively complement or reinforce
TV ads.
• Enables companies to achieve a balance between broad and localized
market coverage.
Disadvantage
• Lack of visual image.
• Relatively passive nature of consumer processing.
Guidelines
• Identify your brand early in the commercial.
• Identify it often.
• Promise the listener a benefit early in the commercial.
• Repeat it often.
 PRINT
Advantages
• Self-paced, provides detailed product information.
• Magazines are particularly effective at building user and usage
imager.
• Newspapers are more timely and pervasive
Disadvantages
• Poor reproduction quality and short shelf life diminish some of the
possible impact of newspaper advertising.
Guidelines
• Creative guidelines for print ads are that of clarity, consistency,
and branding.
 DIRECT RESPONSE
Advantages
• Makes it easier for marketers to establish relationships with consumers.
• Allows marketers to explain new developments with their brands to
consumers on an ongoing basis.
• Allows consumers to provide feedback to marketers about their likes
and dislikes.
Guidelines
• Develop an up-to-date and informative list of current and potential
future customers.
• Put forth the right offer in the right manner.
• Track the effectiveness of the marketing program.
• Precision marketing - Combining data analytics with strategic
messages and compelling colors and designs in their communication.
 PLACE
Known as “non-traditional,” “alternative,” “support” or out- of- home
advertising
• Marketers reach out to people in environments, where they work,
play, and, of course, shop
Advantages
• Can reach a very precise and captive audience in a cost-effective
and increasingly engaging manner.
• More effective at enhancing awareness or reinforcing existing
brand associations than at creating new ones.
Guidelines
• As the audience must process out-of-home ads quickly, the message
must be simple and direct.
• Marketers must stress on creative means of placing the brand in
front of consumers.
PROMOTION
PROMOTION
• Are short-term incentives to encourage trial or
usage of a product or service.
• Are designed to change the behavior of the:
• Trade so that they carry the brand and
actively support it.
• Consumers so that they buy a brand for the
first time, buy more of the brand, or buy the
brand earlier or more often.
 CONSUMER PROMOTIONS
• Designed to change the choices, quantity, or timing of
consumers’ product purchases.
• Type of consumer promotions:
• Customer franchise building promotions like samples,
demonstrations, and educational material.
• Noncustomer franchise building promotions such as
price-off packs, premiums, sweepstakes, and refund
offers.
• Customer franchise building promotions can affect
brand loyalty.
• Marketers evaluate sales promotions by their ability to
contribute to brand equity and generate sales.
 TRADE PROMOTIONS
• Financial incentives given to channel members to
facilitate the sale of a product through slotting
allowances, point-of-purchase displays, contests and
dealer incentives, training programs, trade shows,
and cooperative advertising.
• Designed either to secure shelf space and
distribution for a new brand, or to achieve more
prominence on the shelf and in the store.
 PROMOTIONS
Advantages
 Permit manufacturers to charge different prices to groups of
consumers who vary in their price sensitivity
 Convey a sense of urgency to consumers
 Can build brand equity through actual product experience
 Encourage the trade to maintain full stocks and support the
manufacturer’s merchandising efforts
Disadvantages
 Decreased brand loyalty and increased brand switching
 Decreased quality perceptions, and increased price sensitivity
 Inhibit the use of franchise
 Divert marketing funds sales promotion
 Increase the importance of price as a factor in consumer decisions
 May subsidize buyers who would have bought the brand anyway
ONLINE MARKETING COMMUNICATION

Web Sites Online Ads Social Media

and Videos
 ONLINE MARKETING COMMUNICATION
Advantages of marketing on the Web
• Low cost, greater level of detail and higher
degree of customization.
• Can accomplish almost any marketing
communication objective .
• Valuable in terms of solid relationship
building.
WEB SITES
• Encourages the collaborative effort required
for brand building, between consumers and
marketers.
• Marketers must carefully monitor different
forums and Web site pages that may include
ratings, reviews, and feedback on brands.
 ONLINE ADS AND VIDEOS
Use banner ads, richmedia ads, and other types of ads for
the purpose of advertisement.
Advantages
• Accountable
• Nondisruptive
• Targets consumers such that only the most promising
prospects are contacted, who can seek information as
they desire.
Disadvantage
• Consumers may ignore banner ads and screen them
out with pop-up filters.
 SOCIAL MEDIA
Advantages
• Allows brands to establish a public voice and
presence on the Web.
• Complements and reinforces other communication
activities.
• Helps promote innovation and relevance for the
brand.
• Provide an easy means for consumers to learn from
and express attitudes and opinions to others.
Disadvantage
• Not everyone actively participates in social media.
 EVENTS AND EXPERIENCES
Focus on engaging the consumers’ senses and imagination
as a part of brand building
Event marketing: Public sponsorship of events or
activities related to sports, art, entertainment, or social
causes
Range from extravagant sponsorship events to a simple
local in-store product demonstration
Rationale
Guidelines
 RATIONALE
• To identify with a particular target market or lifestyle.
• To increase awareness of the company or product
name.
• To create or reinforce consumer perceptions of key
brand image associations.
• To enhance corporate image dimensions.
• To create experiences and evoke feelings.
• To express commitment to the community or on social
issues.
• To entertain key clients or reward key employees.
• To permit merchandising or promotional opportunities.
 GUIDELINES
Choosing sponsorship opportunities
• Must meet the marketing objectives and
communication strategy defined for the brand.
Should closely match the ideal target market in
terms of the audience attending the event.
Designing sponsorship programs
• Sponsor should strategically identify itself at an
event through banners, signs, and programs.
Measuring sponsorship activities
• Supply-side and Demand-side method
 MOBILE MARKETING
Product advertising on various mobile platforms
Geotargeting: Marketers send messages to consumers
based on their location and the activities they are
engaging in
Opt-in advertising - Users agree to allow advertisers to
use specific, personal information send them targeted
ads and promotions
DEVELOPING INTEGRATED MARKETING
COMMUNICATION PROGRAM (IMC)

Criteria for Using IMC

IMC Programs Choice Criteria
 CRITERIA FOR IMC PROGRAM
Coverage: Proportion of the audience reached by each
communication option, as well as how much overlap exists among
communication options.
Contribution: Inherent ability of a marketing communication to create
the desired response and communication effects from consumers in
the absence of exposure to any other communication option.
Commonality: Extent to which common information conveyed by
different communication options shares meaning across
communication options.
Complementarity: Describes the extent to which different
associations and linkages are emphasized across communication
options.
Conformability: Extent that a marketing communication option is
robust and effective for different groups of consumers.
Cost: To arrive at the most effective and efficient communication
program evaluations of marketing communications on all of the
preceding criteria must be weighed against their cost.
 USING IMC CHOICE CRITERIA
Evaluating Communication Options
Communication types vary in their:
• Breadth and depth of audience coverage.
• Commonality and conformability according to the number of
modalities they employ.
To arrive at a final mix requires making decisions on priorities and
tradeoffs among the IMC choice criteria.
Establishing Priorities and Trade-Offs
Three possible tradeoffs with the IMC choice criteria resulting from
overlaps in coverage are:
• Commonality and complementarity will often be inversely related.
• Conformability and complementarity will also often be inversely
related.
• Commonality and conformability do not share an obvious
relationship.
GENERAL MARKETING COMMUNICATION
GUIDELINES