Integrated Marketing Communications to Build Brand Equity

Building Customer-Based Brand Equity

BRAND BUILDING TOOLS AND OBJECTIVES
Choosing Brand Elements Brand name Logo Symbol Character Packaging Slogan Memorability Meaningfulness Appeal Transferability Adaptability Protectability Brand Awareness Recall Recognition Possible Outcomes Greater loyalty Depth Less vulnerability to competitive marketing actions and crises Larger margins More elastic response to price decreases

CONSUMER KNOWLEDGE EFFECTS

BRANDING BENEFITS

Breadth Developing Marketing Programs Product Price Distribution channels Communications Tangible and intangible benefits Value perceptions Integratepush and pull Mix and match options

Purchase Consumption

More inelastic response to price increases

Brand Associations Relevance Consistency Desirable Deliverable Point-of-parity Point-of-difference Greater trade cooperation and support Increased marketing communication efficiency and effectiveness Possible licensing opportunities More favorable brand extension evaluations

Strong Leverage of Secondary Associations Company Country of origin Channel of distribution Other brands Endorsor Event Favorable Awareness Meaningfulness Transferability

Unique

CBBE and IMC

According to CBBE, IMC contributes to BE by Creating awareness and forming the desired brand knowledge structures by Linking and generating strong favorable and unique associations in memory. Thereby Eliciting positive brand judgments and feelings Facilitating stronger brand connection and resonance By forming the desired brand knowledge structures, it provides the incentive that elicit the differential response that makes up BE

Role of Integrated Marketing Communications

Role of IMC

It creates the knowledge structure by

Establishing the brand in memory and Linking it with strong, favorable, and unique associations It informs, persuades, incants, and reminds consumers directly or indirectly Establishes a dialogue and evokes a response Builds relationships with consumers.

It is the voice of the brand that

Role of Integrated Marketing Communications (Cont.)

Consumers can be told or shown

how and why a product is used (needs met) by what kinds of people (user imagery) and where and when it is consumed, purchased (use occassions)

Learn about the company build credibility

who makes the product and what the company and brand stand for
People , Places , Events, Brands , Experiences, Feelings, Things

Brand can be linked to other entities

Consumers can be given incentives or rewards for trial or usage

Integrated Marketing Communications and Customer-Based Brand Equity

Implications of the CBBE framework

The manner in which brand associations are formed does not matter The resulting strength, favorability, and uniqueness matters

Simple Test for Marketing Communications

The way to judge advtg. is by its ability to achieve the desired brand knowledge and elicit the differential response (i.e. BE)

How well does a campaign create awareness, maintain and strengthen brand associations?

Does sponsorship allow for more favorable brand judgments and feelings? Does the promotion encourage one to buy more of the product? At what price premium?

Simple Test for Marketing Communications

1. Current Brand Knowledge 3. 2. Desired Brand Knowledge

1. What is the current brand knowledge? Have you created a mental map? 2. What is your desired brand knowledge? Have you defined optimal POPs and PODs and brand values? 3. How does the current communication option help the brand get from the current to the desired knowledge with consumers?

Information Processing Models of Communications

William McGuire Model has 6 steps

1.

2. 3.

4.

5.

6.

Exposure must see / hear (did media plan miss the mark?) Attention must notice (boring creative?) Comprehension understand the intended message (is lack / extent of category knowledge, awareness and familiarity with brand considered?) Yielding respond favorably (irrelevant / unconvincing claims?) Intensions plan to act in desired manner (lack immediate perceived need?) Behavior actually act in a desired manner (failure to recall ad when faced with brand?)

But Advertising has limited power

Information Processing Models of Communications

Successful campaign ensures that 1.

2.

3.

4.

5. 6.

Right consumer is Exposed to the right message at the right place at the right time Ad must cause consumers to notice and attend to the ad and not get distracted Ad should properly reflect the consumers level of understanding about product and brand Ad correctly positions the brand in terms of desirable POPs and PODs Ad must motivate consumer to consider purchase Ad creates strong brand associations to all of those stored communication effects when consumers are considering purchase

Designing Integrated Marketing Communications Programs

From the CBBE perspective, marketers should

Evaluate all possible communication options available to create knowledge structures according to their effectiveness criteria, as well as cost considerations.

Different communication options have different strengths , can accomplish different objectives. Advertising is a central element of Mar. Com. But it is not the only or most important element for building BE

Alternative Communication Options (Consumer)

Media Advertising (TV, radio, newspapers, magazines) Direct Response Advertising Interactive (on-line) Advertising & Web Sites Outdoor Advertising (billboards, posters, cinema) Point-of-Purchase Advertising Trade Promotions Consumer Promotions Sponsorship of Event Marketing Publicity or Public Relations

Alternative Communication Options Guidelines

Advertising in designing and evaluating brand campaign, it is important to distinguish Message strategy (Positioning) from Creative strategy

Ad Strategy - research is crucial for clarifying

Communication objectives Target markets Positioning alternatives Informational (product related attributes and benefits) Transformational (non-product related benefits) Attract attention (particularly in low-involvement consumer processing) using devices like babies, celebrities, sex appeal

Creative strategy how brand claims are expressed

But these devises may distract from the product claim

Alternative Communication Options Guidelines

Advertising 6 success factors are considered
1.
2. 3. 4.

5.
6.

Targeting Ad creative Consumer understanding Brand Positioning Consumer motivation Ad memorability

Results should not be the basis of go / no go decisions, but play a diagnostic role to find out how the brand works

Copy testing to gauge reactions to ads

Print Ad Evaluation Criteria

Is the message clear at a glance? Is the benefit in the headline? Does the illustration support the headline? Does the first line of the copy support or explain the headline and illustration? Is the ad easy to read and follow? Is the product easily identified? Is the brand or sponsor clearly identified?

Common Mistakes in Developing Advertising

Failure to distinguish ad Positioning (what you say) from ad creative (how you say it) Improperly Positioned Mistaken assumptions about consumer knowledge Failure to break through the clutter Distracting, overpowering creative in ads

Common Mistakes in Developing Advertising

(cont.)

Under-branded ads Failure to use supporting media Changing campaigns too frequently Substituting ad frequency for ad quality

Ad Campaign Considerations
Campaigns make brands (not single ads) and should be Creative and develop creative themes

But avoid slavishly sticking to executional formulas Multiple voices different media Multiple notes different executions

Sing like a choir one key message delivered by

Reflect fresh consumer insights and compelling brand truths Conduct ad research

Buzz Marketing (Emanuel Rosen)

Keep it simple Simple messages spread across social networks more easily. Tell us whats new The message must be relevant and newsworthy for people to want to tell others about it. Dont make claims you cant support Making false claims will kill buzz or, worse, lead to negative buzz. Ask your customers to articulate whats special about your product or service If customers can explain why they like the product or service, they can then communicate this to others. Start measuring buzz This can help determine which strategies generate the most buzz. Listen to the buzz Monitoring consumer reaction can yield insights such as how to improve the product or service.

Alternative Communication Options

Sponsorships rationale Consumer involvement in event allows brand to broaden and deepen relationship with target market Reasons for sponsorships

To identify with a particular target market or life style attendee attitude and usage of the brand - Nike To increase awareness of the company or product name To create / reinforce consumer perceptions about key brand image associations product demonstration, users, etc. To enhance corporate image dimensions To create experiences and promote feelings To express commitment to community / to social issues To entertain key clients or entertain key employees To permit merchandising or promotional activities It can inspires sales people, attracts new customers, etc.

Alternative Communication Options

Sponsorships potential disadvantages

Success of the event cannot be controlled There can be much clutter Consumers may resent commercialization of the event Choose the appropriate event Design the optimal sponsorship program Measure the effects of sponsorship on BE

Guidelines

Alternative Communication Options

Sponsorships choose sponsorships carefully
Marketing objectives and communication strategy must be met by the event Consider Target Market match Create sufficient awareness of event, and desired image, capable of creating the desired effect on target market Ensure consumers will make favorable attributions to sponsor for involvement Ancillary marketing activities that enhance brand image can be carried out Companies can create their own events Use their names for stadiums, concert halls, etc.

Alternative Communication Options

Sponsorships designing programs

The marketing program that accompanies a sponsorship determines its success (2 or 3 times the amount is often spent on it) It can identify itself by banners, signs and programs Supplement such activities with samples, prizes, advertising, retail promotions and publicity

Alternative Communication Options

Sponsorships measuring sponsorship activity 2 basic approach

Supply-side method potential brand exposures

Based on media coverage and converted into equivalent value in advertising But media coverage content cannot be equated with advertising

Demand-side method brand knowledge structures generated by exposure to event Surveys to check awareness, attitude and sales
After the event recall of event sponsor as well as attitude and intentions towards the sponsor

Alternative Communication Options (Business-to-Business)

Media Advertising (TV, radio, newspaper, magazines) Trade Journal Advertising Interactive (on-line) Advertising & Web Sites Directories Direct Mail Brochures & Sales Literature Audio-Visual Presentation Tapes Giveaways Sponsorship or Event Marketing Exhibitions, Trade Shows, Conventions Publicity or Public Relations

Developing an IMC Program

Mix and match communication options that offer complentary advantages to build BE

Mix communication options based on

IMC objectives, contact options, budgets, other communication options

Match communication options evaluate for effectiveness criteria and cost

Coverage, Contribution, Commonality, Complementarity, Versatility, Cost

Designing and implementing - using IMC choice criteria as guidelines

Communication options, Establishing priorities and tradeoffs, Execute the final design and implementation

Developing an IMC Program

1. Mix communication options evaluated for effectiveness criteria and cost considerations

IMC objectives

Awareness and familiarity (are linked) Many exposure opportunities will enable Recognition Recall - calls for more elaborate processing so that strong links to product category must be established in many different ways for recall in different contexts

Contact options - consider all options for building brand knowledge structure and image

Contact is any information bearing experience that the customer has with the brand / category or its market Draw brand contact maps to identify contact points

Developing an IMC Program

1. Mixing communication options optimal mix
consider the following Budgets - variety of approaches used based on

brand life cycle, business and communication objectives budget of the firm, product characteristics, media strategy of competitors,

Budgets must be higher if there is

no channel support, change in message strategy, hard to reach segment, differentiated products, non-homogeneous needs, frequent purchases in small quantities

Developing an IMC Program

1.

Mixing communication options optimal mix

consider the following

Other communication options

Personal selling - important when the unit value is high, technical nature, requires demonstration, customized solutions, purchased infrequently Different options chosen for different segments

Developing an IMC Program

2. Matching communication options
6 criteria for an efficient IMC program I. II. III. IV. V. VI.

Coverage Contribution Commonality Complementarity Versatility Cost

Evaluating IMC Programs

2. Matching communication options
1.

Coverage - what proportion of target audience is reached by each communication option employed, and how much overlap exists among the options Since there is overlap, the communication program should be designed optimally taking into account that there is already some communication effect in memory

A communication option may reinforce the existing brand association and strengthen linkages Or address other associations and linkages that are not the focus of other communication options If no overlap exist the program must take this into consideration

Audience Communication Option Overlap

Communication Option A Communication Option B

Communication Option C
Note: Circles represent the market segments reached by various communication options. Shaded portions represent areas of overlap in communication options.

Evaluating IMC Programs (cont.)

2. Matching communication options
2. Contribution of an option depends on how well it plays its designated role (generate awareness, induce sales, reminds, etc.)

How it affects the consumer processing of communication, and

How it affects outcomes (effect of a communication option)

Its collective effect on BE can be in terms of

enhancing depth and breadth of awareness

improving strength, favorability, uniqueness of brand associations

Provoking action

Evaluating IMC Programs (cont.)

2. Matching communication options 3. Commonality extent to which common associations are reinforced across options (information conveyed by different communication options share same meaning)

IMC should be coordinated to deliver a consistent and cohesive brand image in which brand associations share content and meaning

Information that is consistent in meaning (unlike unrelated information) is easier to learn and recall associations, and to evoke responses But unexpectedness of inconsistent information can lead to more elaborate processing and stronger associations than information that is consistent in meaning. But it can also lead to a diffused and confused image and create less favorable associations

Evaluating IMC Programs (cont.)

2. Matching communication options
3. Commonality when common associations are reinforced across options

Easier for additional associations and responses to be linked to brand memory Multiple communication options allows coding to happen in slightly different contexts and ways, creating multiple retrieval routes, which enhances recall encoding variability principle Excutional consistency across communication options (through non-product related information) serves as a retrieval cue for other communication effects - symbols More abstract the association the more it can be reinforced in different ways across heterogeneous options contemporary rather than rich chocolate taste

Evaluating IMC Programs (cont.)

2. Matching communication options
4. Complementarity - Communication options are more effective when used in tandem carrying different associations and linkages

Different associations can be emphasized through options that are best suited to elicit a particular response or establish a particular type of association The options should be mutually compensatory and reinforced to create the knowledge structure Advertising, Sales Promotion, Event

Evaluating IMC Programs (cont.)

2. Matching communication options
5. Versatility

2 types of consumer versatility

different types of consumers, and extent of information is contained in a communication option

Communication history (consumers with previous exposure to brand and category information, as against those without) Different market segments with disparate backgrounds Multiple Information Provision strategy - different information within an option. Issues such as info overload, confusion are a concern Broad information provision strategy information that is rich or ambiguous enough to work may lack precision / details for impact

2 ways of achieving a dual communication objective

1.

2.

Evaluating IMC Programs (cont.)

2. Matching communication options
6. Cost checked at 2 levels

Per capita expense per option Absolute costs of each option

IMC Choice Criteria

3. Designing and implementing IMC using IMC choice criteria guidelines It involves establishing 1. Communication options - evaluation by response and communication effects 2. Establishing priorities and tradeoffs -

decide on IMC program to adopt

3.

Executing the final design and implementation

IMC Choice Criteria

3. IMC choice criteria
1. Establish Communication options Evaluate different options by response and communication effects (different options have different strengths and weaknesses) Check for differences in contribution and complementarity Check for cost - all are expensive but may vary in CPT Communication types vary

by breadth and depth of coverage Commonality and versatality

IMC Choice Criteria

3. IMC choice criteria
2. Establish priorities and trade offs Priorities depend partly on how choice criteria are ranked

Objectives of the IMC program (short term / long term) Objectives of marketing program in general

Trade offs with IMC choice criteria deal with 3 factors

1.

3.

Commonality and complementarity (inversely related) The more the various options emphasize the same brand attributes, the ability of various options to emphasize other attributes and benefits is lower Versatility and complementarity (inversely related) The more the communication options emphasize complementarity, the less critical the versatility of any communication options (any one option need not appeal to different consumers.) Commonality and versatility (no obvious relationship) an adequately abstract message can be communicated through multiple options

IMC Choice Criteria

Using the IMC choice criteria
Evaluation of final decision and implementation Executional details of each option to be determined - as creatively as possible to achieve objectives Media plan in place

Concentration amount of communication they will receive Continuity distribution of exposures (how massed or diffused

Keller Bes

Be analytical: Use frameworks of consumer behavior and managerial decision-making to develop wellreasoned communication programs Be curious: Fully understand consumers by using all forms of research and always be thinking of how you can create added value for consumers Be single-minded: Focus message on well-defined target markets (less can be more) Be integrative: reinforce your message through consistency and cuing across all communications

Keller Bes

Be creative: State your message in a unique fashion; use alternative promotions and media to create favorable, strong, and unique brand associations Be observant: Monitor competition, customers, channel members, and employees through tracking studies Be realistic: Understand the complexities involved in marketing communications Be patient: Take a long-term view of communication effectiveness to build and manage brand equity