Communication - Major Objectives

1. Communication - Major Objectives • Articulation of the brand • Promotion of the Brand/product

2. Articulation of the Brand • Brand development • Create associations • Create awareness • Create favorable impressions • Brand management • Remind of associations or create new ones • Reinforce and remind for enhanced awareness • Reinforce and remind of favorable impressions • May want to simply refresh/refurbish • May want to evolve the brand • Communication message/approaches/content often emotional and affective here as you want to impact or create attitudes – positive ones! • Communication message/approach/content can also be informational with a cognitive impact – want to generate customer learning about your product

3. Promotion of Brand/offering • Arouse interest in product features and advantages • Provide information i.e. location, prices, etc. • Encourage purchase intention • Persuade • Motivate action - Move to purchase – Make the sale! • Communication message/approach/content is motivational to impact behavior – buy the product! • Communication message/approach/content can sometimes be cognitive (informative) – to generate interest and draw attention

4. Communication Vehicles Salesperson Addressable/ customized Web Telemarketing Direct E-mail Direct mail Catalogs Infomercials Media Radio Newspapers Magazine Television Mass Two-way With time lag In response Two-way Instantaneous In response Broadcast--- One-way message

5. Advertising • Mass communication – One way • Non-personal; customer passive • TV, radio, print (magazine & news), internet, billboards, etc. • Reach large numbers – blast at a broad based audience; but can also be reasonably focused by using the right media • Institutional or corporate advertizing – Focused on corporate image. • Product advertising – Focused on product • Spillover depending on brand architecture (whether brand includes corporate name or is somehow identified with firm) • Loss of power??

6. Cooperative Advertising • Where the marketer (manufacturer or originator of the product/offering) shares advertising costs with downstream merchants • Dollars go from the manufacturer to the retailer for (often local) advertising of the retailer but that features the manufacturer and brand prominently in the ad content • Most often involves mass media, one-way, nonpersonal • Programmed approach – certain $ per year; certain % of sales, ect. • Formalized agreements with downstream intermediaries • Some industries more the norm, others not so much (seen in auto and food industries, not so much in clothing)

7. Cooperative Advertising • Tactical fly in the ointment • Constant source of conflict with downstream intermediaries • Paid dollars but do not do the ads • Do the ads but feature the brand/product/manufacturer in only smallest way • Sets up competition at intermediary level • Manufacturers at a disadvantage because it is impossible to monitor and ensure intermediary compliance and execution • Often regardless of the disadvantage, manufacturers stuck because its status quo • Legal issues – because it is vertical it can be seen as restraining trade. Also with large retailers, can be “hidden” price concessions

8. Advertising • Direct - direct mail, catalogs, infomercials • Mass communication; non-personal • Key issue – two way • Some response is involved; some offering made directly that if the customer responds, means purchase • Inherent - customer engagement; customer is activated • Time lag is involved, customer has to mail in, call in, place order, etc. • Promotion like though because of this response – major focus is to induce purchase act • Cost is an issue – extremely high cost with relatively low response • Effectiveness is in question

9. Personal selling • Inter personal; one-on-one • High cost, adaptive message • Traditional personal selling pretty much confined to business markets because of cost and transaction magnitude • Number of sales management issues we touch on in CRM discussions – optimize sales performance relative to contact time & investment • Professional selling practices vary hugely by industry • Important with technologies; engineers and designers sometimes involved in team selling efforts • Sales training a big issue for most companies – invest in specific dedicated programs • Personal selling in consumer markets most often done with email and telemarketers (ugh!!)

10. Promotions • Marketing stimuli especially focused on an immediate response – motivating – buy the product! • Sometimes called “forcing techniques” because of this though we know they don’t really force anything • Attempt to get customer activated and engaged in immediate way • Couponing, POPs, In-store price promotions, contests, sampling • Loyalty programs probably fastest growing promotional technique • Focus on immediate response sometimes results in “promotional spike” in sales • Issues – costs, effectiveness, implementation • Consumers vs trade • Trade promotions – promotions to intermediaries – sales contests, trade allowances, selling incentive

11. Trade Shows • Critical in some industries – the major (only?) market facing mechanism • Traditionally we see them as upstream market development (Jewelry, clothing, electronics) • Major venue for getting to the enduser • Some trade shows focused on consumers popping up – home shows, etc.

12. Public Relations • News releases, press conferences, feature articles • Sponsorships of community support activities – associated with schools, charity, etc. • Seen as highly effective because ostensibly neutral and not initiated by the firm/product • Typically seen as no cost or low cost, but deceptively costly because precisely because it can be so effective • Because not initiated or paid, content and message out of the firm’s control • Negative PR – big problem….

13. Strategic Issues – Push versus Pull • Push – Communication focused on next adjacent intermediary, who will then communicate to the next downstream adjacent intermediary and etc. until it gets to the enduser • Pull – Communication focused on enduser; enduser then requests product from upstream intermediaries thereby “Pulling” the brand down through the distribution channel until it eventually gets to enduser – Starts with enduser and ends with enduser • Often strategic gains from simultaneous push and pull You see a mass media ad about a product that interests you You! Push Pull Product is pulled through back to the retailer by your interest You!

15. The new face of marketing communication • EWOM • Social Networks • FB presence vs activity (Dave’s Killer Bread) – want to get in news feed • Twitter – strong use in business markets, established group motivated to follow • Digital media – more proactive • Blogs • Creates community • Consistency with blogger/purpose • Disclosure • Youtube (others?) • Videos – hope to go viral • http://www.youtube.com/watch?v=mPwhMoQBg_8 • http://www.youtube.com/user/AXE#p/c/C2A5D95162272B87 • http://www.youtube.com/watch?v=-qQvXawnmjk • Seeding issues – how do you get it started • Product placement Products shown in movies or tv shows • Peripheral routes to processing • Customer is not involved/expecting marketing stimuli

16. The new face of marketing communication • Gorilla marketing • Creates BUZZ through something unconventional, unexpected, often stunts • Consumers attend; processing barriers broken down because it is so surprising • Consumers know and understand they are being marketed to • Low budget but high bang, creative • http://www.youtube.com/watch?v=7EYAUazLI9k • Also Expedia yellow suitcase dance • Viral marketing • Creates BUZZ through Word of Mouth (WOM) • Self replicating, spreads as in epidemic • Most often uses internet – youtube video or FB posts • Sometimes coupled with promotion – you get a free T-shirt, ticket, etc., if you text 10 of your friends and tell them about X • Consumers attend because of high entertainment, high shock value, emotional “hot button” • Consumers see the message and know they are being marketed to • http://www.youtube.com/watch?v=NlW8Z4SKc4E • Stealth marketing or undercover marketing • No sell involved, try to interest the consumer and get them intrigued • No buzz, no WOM, focused only on the individual consumer involved • Most often expose consumers to the product in person and get them to try the product • Consumers attend and process but do not realize they are being marketed to • Called the secret sell – criticized for being deceptive • http://www.youtube.com/watch?v=p7LTEFCH54g

17. Leveraging Secondary Brand Associations • Positive associations/knowledge of other entities (their brand) imprints on the focal brand • When brand is linked to entity, consumer infers associations, feelings, judgments that characterize the entity also characterize the brand • Because we need cognitive consistency • Creates new associations for the most part but can affect existing associations • Sponsorships – Events, Athletes • Origin – country • Music – Events, sound

18. Leveraging Secondary Brand Associations

19. Integrated Marketing Communications (IMC) • Effectiveness vs cost issues plague communication • Effectiveness increases substantially when media, vehicles, approaches teamed together, even a simple pairing of print and tv commercial • Presenting stimuli (information) in varied contexts and ways causes information to be encoded and processed in different ways. • So multiple retrieval routes are established in memory. • All routes converge on information and associations with the brand • Recall and associations enhanced • IMC involves the most effective mix and match of communication options to get this “multiple processing” to happen

20. Integrated Marketing Communications (IMC)

21. Integrated Marketing Communications (IMC) • IMC is strategic and programmatic use of communication across multiple media to maximize customer impact and response • 360 degree view of the customer • Considers all “touch points” with the customer • IMC coordinates multiple communication modes to articulate brand and/or move to purchase • Modes are consistent and complementary • Messages are unified and focused on brand concept/positioning concept • Strong segmentation and targeting are prerequisite • Because IMC explicitly considers complementarity and synergies in communication messages and tools, it increases effectiveness, reduces costs, increases efficiency, and eliminates waste and redundancies