Integrated Marketing Communications

1. Professor Carl Mela BA 460 Product Management Fuqua School of Business Brand Management System On Building A Brand Managing Across Brands Integrated Marketing Communications

2. Agenda • Elements of Integrated Communications • Developing the Communications Plan

3. Elements of Communications • Advertising • Creates favorable associations, but does it work? • Sales Promotion • Event Marketing • PR and Publicity • Personal Selling

4. How many ads is a typical American exposed to in a single day? Ignoring Commercials? Source: USA Today 2/23/99

5. How many ads is a typical American exposed to in a single day? How many people think they saw: # of AdsMenWomen 1-30 15% 25% 31-50 20% 25% 51-100 30% 27% 101-300 18% 15% 301+ 17% 9% Actual = 270 Ignoring Commercials? Source: USA Today 2/23/99

6. Your Marketing Strategy Drives Your Advertising Strategy Marketing strategy: • What benefit is being offered: MESSAGE • Who is the target segment: AUDIENCE Advertising strategy: • How do we convey the message effectively: CREATIVE STRATEGY • How do we get to the audience effectively: MEDIA PLANNING

7. Promotional Planning for Brand Equity 1. Identify the target market 2. Establish objectives • Establish brand in memory and create strong, favorable, and unique associations

8. Brand Associations Exist at Several Levels • Brand Objectives • maintain awareness; increase share • focus on selective demand (i.e., pick us over a competitor) • Category Objectives • attract new users to the category • Corporate Objectives • umbrella branding

9. Effects Hierarchy Adoption Trial Favorable Attitude Brand Knowledge Structures Brand Awareness

10. Promotional Planning forBrand Equity 3. Design the Message • Content (What the communication conveys) • Favorability, strength, and uniqueness of brand associations (e.g, brand personality) • Format (How it is conveyed - break through the clutter) • Source (Next Page)

11. Promotional Planning forBrand Equity • 3. Design the message (cont.) • Source (Where it is conveyed) • TV; radio; newspapers; magazines; direct mail; outdoor; other (e.g., placement in a movie) • what media mix? what media schedule? • exposure = reach x frequency % of target group reached # of times an individual is exposed

12. Promotional Planning for Brand Equity 4. Decide on the Promotional Mix • Push v. pull • Stage in the decision process • Consumer v. industrial • Consistency of message across elements • Complementarity of promotions (ads make deals and sales more effective)

13. Promotional Planning for Brand Equity 5. Develop the budget 3.1. objective (e.g,. mkt share goal) 3.2. task (e.g., desired reach and frequency) 3.3. budget (budget to do it) 6. Measure the result • Recall, recognition, persuasion, behavior • Share of voice & GRP against sales (% of target who saw ad at least once during specified time period) x (# of exposures for average person) 7. Manage the process

14. Lodish et al. (1995) • Advertising weight has no correlation with sales! • T.V. ads work when • Objective is to increase penetration or change attitudes, or the copy is changed • Media levels shift over time, or high at beginning and end • In categories that are growing or have short purchase cycles • For new brands/extensions • In earlier periods of campaign and in prime time

15. Lodish et al. (1999) • Little relation between recall/ persuasion measure and brand sales • Ad elasticity is 0.13

16. Trends inCommunications Strategy • IMC - Integrated Marketing Communications • look at information flow as the customer sees it • Accountability • justify your communications expenditures • Relationship Marketing • capitalizing on database information about customers • Interactive Media

17. Summary • “Evaluate marketing communications options strategically to determine how they can contribute to brand equity.” - Keller • Communications Include • Ads, PR, Sales, Sales Promotion, Event Marketing • The Communications Planning Process