Advertising & IMC: Principles & Practice Eleventh Edition Chapter 1 Strategic Brand Communication Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Part 1 Principle: All Communications One Voice Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Key Objectives 1. What is the marketing mix, and how does it send messages? 2. What is integrated marketing communication? 3. Understand how this text will prepare you for your career. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Chapter Opener: A Fresh Take on an Established Market Niche New Pig Corporation, an international business-to-business (B2B) company, has built a unique brand position in the often-dull niche markets of industrial absorbent products and workplace safety. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. The Marketing Foundation Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. What Does Marketing Do? Builds brand and customer relationships that generate: • Sales and profits • For nonprofits, memberships and donations Traditional goals have been to sell: • Goods • Services • Ideas Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. The Marketing Mix (1 of 2) Marketing accomplishes its goal by managing the four Ps: 1. Product 2. Place 3. Pricing 4. Promotion Urban Decay cosmetics projects a street-smart attitude in their packaging and product names. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. The Marketing Mix (2 of 2) • Customer relationships must benefit 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 © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Marketing and Messages Marketing communication (marcom) involves: • Advertising • Public relations • Sales promotion • Direct response • Events and sponsorships • Point of sale • Digital media • Packaging • Personal sales Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Brand Communication Includes: • All marketing communication messages and brand experiences that create and maintain a coherent brand. • Personal experiences that create and maintain a coherent brand image. • Word of mouth. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Brand Communication’s Role in Marketing Marketing is designed to build brand and customer relationships that generate: • sales and profits. • for nonprofits, volunteers and donations. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Principle (1 of 4) “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 © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Who are the Key Players? There are four categories: 1. Marketers 2. Marketing partners 3. Suppliers and vendors 4. Distributors and retailers How is this information important to your career path? Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. What are the Most Common Types of Markets? 1. Consumer 2. Business-to-business (B2B) 3. Institutional 4. Channel Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Figure 1.1: Four Types of Markets The consumer market, which is the target of consumer advertising, public relations, and promotion, is important, but it is only one of the four types of markets. The other three are reached through professional and trade marketing communication. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. How Does the Marketing Mix Send Messages? (1 of 4) Product • Design, performance, and quality • Communication works to: – build awareness of a brand. – explain how the new product works. – explain how it differs form competitors. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Figure 1.2: The Marketing Mix The four marketing mix elements and their related tools and marketing communication techniques are basic components of marketing. Brand communication is shown in the middle and overlaps the other three Ps— product, place/distribution, and price—because all have communication effects. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. The Product as an Element of the Marketing Mix The Apple Watch launched in 2015 has a clean design and is a wellconstructed smartwatch with hundreds of apps and the ability to send and receive calls, similar to an iPhone. It’s also like a super iPod combined with a fitness device that’s worn on the wrist. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. How Does the Marketing Mix Send Messages? (2 of 4) Pricing Based on: • What the market will bear • Competition • Relative value of the product • Consumer’s ability to gauge that value The price sends a “quality” or “status” message! Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. How Does the Marketing Mix Send Messages? (3 of 4) Place/Distribution • Includes channels used to make the product accessible to customers. • Distribution channel also sends a message. • Marketers may use a “push” or “pull” strategy. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. The Price as an Element of the Marketing Mix This sign for McDonald’s highlights its $1 items. The $1 menu has become a competitive battleground for the fast-food category. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. How Does the Marketing Mix Send Messages? (4 of 4) Other functions in the mix • Personal sales • Lead generation • Customer service Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. What is the Added Value of Marcom? • Added value is a strategy/activity making the product more useful or appealing to the consumer/distribution partners. • The three Ps of product, price, and place add more tangible value. • Marcom also adds psychological value. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. An Example of Promotion from the 19th Century Ads for Lydia Pinkham’s Vegetable Compound appeared in newspapers in the 1870s with claims that the product “goes to the very root of all female complaints.” Other turn-of-the-century concoctions made even more dramatic and extreme claims. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. What is Integrated Marketing Communication? Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Integrated Marketing Communication (IMC) Defined • 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 © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Principle (2 of 4) IMC is like a musical score that helps the various instruments play together. The song is the meaning of the brand. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Why Focus on Brands? Let’s define “brand:” a perception, often imbued with emotion, that results from experiences with and information about a company, an organization, or a line of products.” Products carry brands, but so do organizations. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Figure 1.3: The Hierarchy of Brand Communication Brand communication begins with a brand strategy that is outlined in a marketing plan. Then specific plans are developed for the relevant marcom areas that are needed to implement the marketing and brand strategy. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Branding Differentiates Products and Organizations There are many different types of tennis shoes. The advertising challenge is to create a distinctive brand image for the product. What do you think this ad says about the Keds brand? Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. How Does a Brand Acquire Meaning? • Marketing communication delivers meaning-making cues and images to brands. • This perception, called brand meaning, is the one aspect of a brand that can’t be copied. • A brand is: – a perception loaded with emotions and feelings. – tangible elements such as a trademark or package design. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. What is the Brand Essence of this Campaign? As this travel planner cover shows, Billings finds its brand essence as a Montana city that connects you to the authentic historical West. The starting point idea was supported in the “trail” graphic with its “X marks the spot” symbol. The “Where Ya Headin’?” tagline expresses the idea that Billings is the gateway for adventure. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Principle (3 of 4) A brand is an integrated perception derived from personal experiences with and messages about the brand. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. How Does Brand Transformation Work? (1 of 4) 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 © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. The Coca-Cola Brand in the Chinese Market Although the distinctive logo is known around the world, Coca-Cola’s brand name needed to be represented in Chinese characters that had meaning for the Chinese market. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. How Does Brand Transformation Work? (2 of 4) • Brand identity cues are generally the brand name, but they can also be visual symbols. • A logo is similar to a cattle brand in that it stands for the product’s source. • A trademark is a legal sign that indicates legal ownership. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. The Dangers of Trademark Abuse Ads such as this one warn against using Xerox as a general term for a copy machine or as a verb for making a copy. The zipper is a reminder that the Zipper brand lost the rights to its name when the term became used as a category label. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. How Does Brand Transformation Work? (3 of 4) Brand position and promise • 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 © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. A Parity Product Becomes a Powerful Brand The development of the Ivory Soap brand by Procter & Gamble in 1879 represented a major advance in branding because of the way its makers built a meaningful brand concept to transform a parity product (a product with few distinguishing characteristics)— soap—into a powerful brand—Ivory. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. How Does Brand Transformation Work? (4 of 4) Brand image • 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 © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Packaging Sends a Brand Message Celestial Seasonings uses its distinctive packages to send messages to consumers about its brand image. In what way do package like this reinforce the brand personality? Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Brand Value and Brand Equity (1 of 3) • Brand value comes in two forms: – Its value to a consumer – Its value to the corporation • Cause marketing helps communities and nonprofit organizations while generating goodwill, positive word of mouth. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Brand Value and Brand Equity (2 of 3) Brand equity is 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 © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Principle (4 of 4) Brand relationships drive brand value. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Brand Value and Brand Equity (3 of 3) Leveraging brand equity • Brand extension: the use of an established brand name with a related line of products. • Cobranding: uses two brand names owned by two separate companies to create a partnership offering. • Brand licensing: the brand is rented to a business partner. • Ingredient branding: the brand name is used in manufacturing, advertising or other promotion. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Intel Inside Uses Ingredient Branding Intel Inside is an example of ingredient branding, in which a computer manufacturer advertises that it is using Intel chips as a testimony to the product’s quality. On what brands have you seen this Intel Inside logo exhibited? Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Brand Communication in a Time of Change Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Accountability • 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 © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Brand Relationship Strategies • Relationship building programs shift the strategy from onetime purchases to repeat purchases and long-term brand loyalty. • Brand relationship programs involve all the brand’s critical stakeholders. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Word-of-Mouth Marketing • 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 © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Global Marketing (1 of 2) • 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 © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Global Marketing (2 of 2) • 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 © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Convergence • Consumers are empowered and engage in both sending and receiving messages. • Media forms are becoming blurred: print, television, online, cell phones, and watches. • Advertising, public relations, and other marcom areas are blurring their functions as well as integrating their programs. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Diversity • Marketing programs and marketing communication are becoming more socially inclusive. • Ethnicity is equally important. • A 2015 Google study concluded that messages about diversity and equality have widespread impact. • Brands are held accountable for their stance on political and social issues. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Barbie Builds Diversity in the 21st Century The traditional blond Barbie has become more culturally diverse after Mattel launched its Fashionista line with 23 dolls in 8 skin tones, 14 facial styles, 18 eye colors, 22 hairstyles, and 23 hair colors, along with a variety of different fashions. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Looking Ahead • Marketing and marcom begin with coordination across a variety of communication functions and tools. • That coordination is complicated by changes in the industry. • We will continue to track these changes in the next three chapters. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. It’s a Wrap “Kiss a Pig and Hug a Sock” • When it comes to marketing and product innovation, New Pig has excelled. • Its marketing team delights customers with catalogs, advertisements, videos, and other communications. • New Pig fights grime with clever marketing communication designed to make dull products fun. Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved. Copyright Copyright © 2019, 2015, 2012 Pearson Education, Inc. All Rights Reserved.
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