moriarty_app9_inppt_18

Report
Part 5
Principles: IMC and Total Communication
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What do we man by total brand communication in IMC programs?
What is retail marketing communication all about, and what makes
it distinctive?
How does business-to-business marketing communication work?
What are the basic goals and operations of nonprofit and social
marketing?
Which strategic decisions underlie effective international
marketing communication?
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An 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…
to a variety of stakeholders using strategic consistency.
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The decision about which marcom tools to use is
based on:
◦ an analysis of their strengths and weaknesses
◦ how they can be best employed to meet the
campaign’s objectives.
Certain tools are better at delivering specific
objectives.
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360-degree communication
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A unifying brand vision surrounds all the brand’s
interactions with all its stakeholders.
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This vision must be shared by everyone involved with
the brand.
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A manager’s job is to monitor all brand experiences
to ensure they are working together to support the
brand vision.
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360-degree communication
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The problem is departmental silos,
with each marcom function going
its own way.
The only way to monitor and plan
for a diversity of brand
communication is through crossfunctional management.
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A brand can’t be integrated externally if it is not
integrated internally.
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Amid the auto meltdown of the late 2000s, Ford
rallied all its stakeholders with this unifying vision:
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One
One
One
One
Ford
Team
Plan
Goal
This statement conveyed a strategy for returning
Ford to its leadership position.
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As a class:
Review the management case study on Dentsu.
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What is an IMC audit, and how was it conducted for
Dentsu?
What are the major lessons of this case, and its
implications for IMC?
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The management of synergy
One goal of integration is message synergy.
When all pieces work together, the whole is greater than the
sum of its parts.
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The Integration Triangle identifies three key aspects
that must work together to create integration:
1. What the company/brand says about itself (say)
2. How the company/brand performs (do)
3. What other say about the company/brand (confirm)
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(Figure 18.1 visual here)
The Integration Triangle
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The Ten Principles of IMC are summarized in
Table 18.2.
These serve as a manager’s toolkit to guide
the design of a 360-degree brand
communication program.
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The face of retailing is changing rapidly.
Clicks and bricks are changing places as storebased retailers set up websites and e-marketers set
up stores.
The more the retail world changes, the more need
there is for information and promotion.
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Retail advertising accounts for nearly half of all
money spent on advertising.
Retail advertising has two missions:
◦ Selling the brand of the store
◦ Selling individual branded items
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There are three types of retail stores:
◦ Independently owned: e.g., a barber shop
◦ Franchises: e.g., KFC or Hertz
◦ Corporate: e.g., Starbucks or Macy’s
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This visual shows both the comp and the produced ad for Saks Fifth
Avenue. What do you think this ad says about the image of Saks?
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Retail objectives
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The primary objective is to build store traffic.
Retailers also use advertising to:
◦ attract new customers
◦ build store loyalty
◦ increase the average sale
◦ maintain inventory balance
◦ create a sense of urgency
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(Figure 18.2 visual here)
Retail advertising objectives
To build and maintain store traffic: a retail ad strives to meet these
objectives.
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Retail targeting
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The first concern is geography.
◦ Where do my customers live?
◦ How far will they drive to visit my store?
The next concern is consumer taste.
◦ Offers, merchandise, and advertising messages
are tailored to consumer preferences.
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Here, a national brand reimburses the retailer for all
or part of their advertising expenses.
It allows retailers to compensate for their smaller
budgets and limited expertise.
Also called ad allowances or promotional
allowances.
Most retailers won’t consider taking on a new brand
without co-op support.
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People choose a store
based on:
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personnel
location
pricing policy
products
history
stand on social
responsibility issues
For its “Forever 70s”
sale, Virgin Megastores
utilized this character.
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Store location or telephone number is essential.
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Advertising is created by in-house staff, local
media, agencies, or freelancers.
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Successful local campaigns created by local
agencies can go national.
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Smaller retailers use stock artwork; larger ones may
use custom artwork.
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Manufactures offer dealer tags or donuts.
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Local retailers prefer reach over frequency.
Retailers use direct mail because it minimizes
waste.
Newspapers offer audience selectivity:
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Zone editions
Shoppers
Pre-prints
Free-standing inserts
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Local magazines reach upscale consumers. Some
national magazines offer regional, metro editions.
“A Matter of Practice: Life is Great at SPAR” explains
how television advertising can be used to revitalize
a brand image.
Radio is used by local retailers for its low cost and
high selectivity for geography and audience.
The Internet allows stores to sell online.
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Advertising directed at people in business who buy
or specify products for business use.
Business advertising is used to:
◦ create corporate brand awareness.
◦ enhance the company’s reputation.
◦ support salespeople and other channel members.
◦ generate new business leads.
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Businesses buy goods and services because
they need:
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ingredients for products they make.
goods and services to operate their business.
Business marketing differs from consumer
marketing.
◦ Decisions often by committees; focus on rational
factors.
◦ Purchase is negotiated by a buyer.
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B2B advertising focuses on price, service,
quality, and assurance of supply.
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This B2B ad illustrates one company’s quality control standards and
environmental stewardship.
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Industrial
Directed at original equipment manufacturers like General
Motors or IBM.
Government
Local, state, and federal governments are the largest
purchasers of industrial goods.
Trade/channel marketing
Used to persuade distribution channel members to stock the
manufacturer’s products.
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Professional advertising
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Agricultural
Directed at mostly whitecollar workers like lawyers,
doctors, accountants,
teachers.
Promotes products and
services to those involved in
growing, raising, or
producing agricultural
commodities.
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B2B advertising is used to create and maintain
brand awareness, and to support the personal
selling function.
To create effective ads:
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select the strongest benefit.
dramatize most important benefit.
choose relevant visuals.
make the offer clear.
provide contact information.
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Most business marketers use:
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General business and trade
publications
Directory advertising
Consumer media
The Internet
Direct marketing
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Effective marketing and advertising techniques are
also important for nonprofit organizations.
It is used by:
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Hospitals
Government agencies
Zoos
Museums
Orchestras
Religious organizations
Charities
Universities and schools
…to “sell” their services, programs, and ideas.
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Goals include:
◦ Membership (AARP, Chamber of Commerce)
◦ Donations (Red Cross, United Way)
◦ Participation (Habitat for Humanity)
◦ Sales (museum gift shops)
◦ Recruitment (the military, universities)
◦ Attitude change (political parties)
◦ Advocacy (Weyerhaeuser for forest management)
◦ Visits or attendance (state tourism programs, museums)
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Fund-raising or development
◦ Capital campaigns raise a specific amount of money over a
set time for buildings, equipment, or programs.
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Social marketing or public communication
◦ Creates awareness of social needs.
◦ Motivates consumers and businesses to act in certain ways.
◦ A conscious effort to influence publics’ thoughts or actions
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Cause and mission marketing
◦ Adopting a good cause and sponsoring community and fundraising efforts.
◦ Links a company’s mission and core values to a cause.
As a class, learn about:
◦ Target’s community caring effort at www.coneinc.com
◦ Brand connections in “A Principled Practice: Pause for the
Cause: Boosting Brands and Building Goodwill with Cause
Marketing.”
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Growth has been driven by:
◦ development of international
media.
◦ the worldwide spread of
market-based economies.
◦ the expansion of English as an
international language.
◦ the Internet: even small
companies can market
internationally.
IBM used this “World Peace”
ad to demonstrate its
commitment to world trade
and international marketing.
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Stage 1: Exporting
The company sends products to other markets .
Stage 2: Internationalization
◦ Selling to a group of markets in a region, such as
Europe or Asia.
Stage 3: Globalization
◦ Brands are sold throughout the world.
Country of origin often doesn’t apply, but it can
cause problems when countries are anti-American.
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Should companies act as if there is one global
market, motivated by the same wants and desires?
Or, should they account for cultural differences
when developing products and marketing for the
cultures they serve?
As a class:
To gain more insights on this debate, check out The
Practical Tips box at:
www.mypearsonmarketinglab.com
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There are three schools of thought on international
advertising:
1. Standardization: differences are a matter of degree,
so focus on customer similarities and brand
development.
2. Localization: consider differences in culture,
economy, media, legal restriction, and others.
3. Combination: use a standardized strategy but adapt
advertising execution to the local culture.
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Cultural meanings
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High-context cultures
◦ Message meanings are based on contextual cues.
◦ In Japanese, a word can have multiple meanings.
Low-context cultures
◦ A message can be understood as it stands.
◦ Most English words have clearly defined meanings.
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Cultural meanings
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(Figure 18.6 visual here)
It’s more difficult to
write advertising
messages for highcontext cultures.
Here, the meaning is
dependent on
surrounding sentences.
High-to-Low Context Cultures
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Central control versus local adaptation
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Some advertisers develop tightly controlled global
campaigns with minimum local adaptation.
Others develop local campaigns in every major
market.
Most combine standardization and localization.
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Central control versus local adaptation
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International advertising campaigns have two
starting points:
1. Success in one country
2. A centrally conceived strategy
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Local initiative
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Centrally conceived campaigns
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Variations on central campaigns
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Bottom-up creativity
A successful campaign in one country is modified and used in
other countries.
A centralized strategy is developed for use globally (e.g., Xbox)
with a consistent marketing strategy.
Local agencies may be used to adapt creative ideas for each
market, but the strategy remains consistent.
Many agencies may submit ideas; the best one is selected and
used globally.
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International objectives
◦ Typically, the primary objective is reminder.
◦ It may also be awareness and trial.
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Targeting issues
◦ What countries?
◦ Market development level: can the market, literacy levels,
and economy support the expense of marketing?
◦ Cultural cohorts: customers from different countries have
common characteristics, wants, needs.
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Positioning the brand
◦ Problems and opportunities must be identified.
◦ Consumer motives must be established.
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Setting the budget
◦ Which method? What about exchange rate?
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Executing the international campaign
◦ Use local models, language, and settings.
◦ Pepsi’s “Come alive” in Taiwan means “Pepsi will bring your
ancestors back from the dead.”
◦ “Finger lickin’ good” in China means “Eat your fingers off.”
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This campaign by Accenture
used different types of
animals in challenging, but
semi-humorous situations.
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International media buying
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Media is different, evolving in every country.
Local agencies should handle media buys.
Seasons and holidays differ among countries.
Time zone differences can cause delays.
Organizing for international campaigns
◦ This depends on standardization or localization strategy.
◦ Some agencies exert tight, central international control;
others allow local autonomy.
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In IMC, all messages a consumer receives must work
together to create a coherent brand impression.
IMC requires horizontal and vertical integration.
◦ Vertical: coordination of decisions about targeting,
positioning, objectives, strategies, and tactics.
◦ Horizontal: coordination across all countries or regions
involved in a plan.
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A dedicated manager is needed to ensure
consistency among activities.
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In Chapter 19, we will:
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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.
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“Driving Honda’s CR-V
to Number One”
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A successful marketing
campaign for the Honda CRV boosted it from fourth to
second in Iceland.
Research showed that
people in Iceland wanted
SUVs with space and
minimum off-road
capabilities.
Honda carved out a unique
identity for the CRV in the
Icelandic market.
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“Driving Honda’s CR-V
to Number One”
Key lessons:
 Honda challenged the target
group and created a visual
image in their mind of owning
the car.
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In this campaign, a creative
insight, derived from research,
yielded winning results.
As a class: What others can
you think of?
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18-55

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