CHAPTER 6: INTEGRATED MARKETING COMMUNICATIONS TO

BUILD BRAND EQUITY

1. Learning Objectives:
After reading this chapter, you should be able to

1. Describe some of the changes in the new media environment.

2. Outline the major marketing communication options.
3. Describe some of the key tactical issues in evaluating different communication options.
4. Identify the choice criteria in developing an integrated marketing communication program.
5. Explain the rationale for mixing and matching communication options.

2. List of Contents: Chapter 6 IMC to Build Brand Equity

1. The New Media Environment

1.1 Challenges in Designing Brand-Building Communications

1.2 Role of Multiple Communications

2. Overview of Marketing Communication Options

2.1 Advertising
2.1.1 Ideal Ad Campaign
2.1.2 Category of Advertising
2.2 Promotion
2.3 Events and Experiences
2.4 Public Relations and Publicity
2.5 Word-of-Mouth

3. Developing Integrated Marketing Communication Programs

3.1 Criteria for IMC Programs

3.2 Evaluating IMC Program
3.3 Using IMC Choice Criteria
3.4 Marketing Communication Guidelines

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3. Description of Contents:
Marketing communications are the means by which firms attempt to inform, persuade, and
remind consumers—directly or indirectly—about the brands they sell. According to CBBE
model, marketing communication can contribute to brand equity.

1.1 The New Media Environment

 Traditional advertising media such as TV, radio, magazines, and newspapers seem to be
losing their grip on consumers.

 Marketers pour $18 billion into Internet advertising in 2005. While Web advertising
jumped 20% during this time, spending for TV ads remained flat.

Simple Test for Marketing Communications

1.2 Information Processing Model of Communications:

To provide some perspective, let’s consider in more depth the process by which marketing
communications might affect consumers. A number of different models have been put forth
over the years to explain communications works. One of the model is given by Social
Psychologist William McGuire of Yale. In his model he shows that for any person to be
persuaded by any means of communication the below mentioned steps are a must (a TV
advertisement, newspaper editorial, or blog posting)

1. Exposure: A person must see or hear the communication.

2. Attention: A person must notice the communication.

3. Comprehension: A person must understand the intended message or arguments of the

communication.

4. Yielding: A person must respond favorably to the intended message or arguments of the
communication.

5. Intentions: A person must plan to act in the desired manner of the communication.

6. Behavior: A person must actually act in the desired manner of the communication.

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2. Marketing Communications Options

 Advertising

 Promotions

 Event marketing and sponsorship

 Public relations and publicity

 Personal selling

2.1 Advertising

 A powerful means of creating strong, favorable, and unique brand associations and
eliciting positive judgments and feelings.

 Controversial because its specific effects are often difficult to quantify and predict.

 Nevertheless, a number of studies using very different approaches have shown the
potential power of advertising on brand sales.

2.1.1 Ideal Ad Campaign

The ideal ad campaign would ensure that:

1. The right consumer is exposed to the right message at the right place and at the right time.

2. The creative strategy for the advertising causes the consumer to notice and attend to the ad
but does not distract from the intended message.

3. The ad properly reflects the consumer’s level of understanding about the product and the
brand.

4. The ad correctly positions the brand in terms of desirable and deliverable points-of-difference
and points-of-parity.

5. The ad motivates consumers to consider purchase of the brand.

6. The ad creates strong brand associations to all of these stored communication effects so that
they can have an effect when consumers are considering making a purchase.

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2.1.2 Category of Advertising

 Television: Television is a powerful advertising medium because it allows for sight,

sound, and motion and reaches a broad spectrum of consumers.

 Radio: Radio is a pervasive medium. The main advantage to radio is flexibility—stations

are highly targeted, ads are relatively inexpensive to produce and place, and short
closings allow for quick responses.

 Print: Print media has taken a huge hit in recent years as more and more consumers
choose to collect information and seek entertainment online. In response, publishers are
doing their own digital innovation in the form of iPad apps and a stronger Web presence.

 Direct response: In contrast to advertising in traditional broadcast and print media,

which typically communicates to consumers in a nonspecific and nondirective manner,
direct response uses mail, telephone, Internet, and other contact tools to communicate
with or solicit a response from specific customers and prospects.

 Interactive: websites, online ads: With the use of increasing use of internet, this media is
getting popular day by day. It provides quick and cost effective communication options.

 Mobile marketing: Company can communicate their target customer directly through
sending text, picture, links etc. through mobile operators.

 Place advertising: Billboards; movies, airlines, and lounges; product placement; and
point-of-purchase advertising

2.2 Promotions

 Short-term incentives to encourage trial or usage of a product or service

 Marketers can target sales promotions at either the trade or end consumers

 Consumer promotions

 Consumer promotions are designed to change the choices, quantity, or timing of

consumers’ product purchases.

 Trade promotions

 Trade promotions are often financial incentives or discounts given to retailers,

distributors, and other members of the trade to stock, display, and in other ways
facilitate the sale of a product.

2.3 Event Marketing and Sponsorship

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  Event sponsorship provides a different kind of communication option for marketers. By
becoming part of a special and personally relevant moment in consumers’ lives, sponsors
can broaden and deepen their relationship with their target market.

Event Marketing refers to public sponsorship of events or activities related to sports, arts
entertainment or special causes. Event sponsorship provides a different kind of
communication option. Marketers report a number of reasons why they sponsor events.

Rationale For Going for this sort of sponsorship

1. To identify with a particular target market or lifestyle

2. To increase awareness of the company or product name

3. To create or reinforce consumer perceptions of key brand image associations

4. To enhance corporate image dimensions

5. To create experiences and evoke feeling

6. To express commitment to the community or on social issues

7. To entertain key clients or reward key employees

8. To permit merchandising or promotional opportunities.

Despite these advantages there are certain disadvantages like success unpredictability, clutter

etc.

2.4 Public Relations and Publicity

 Public relations and publicity relate to a variety of programs and are designed to promote
or protect a company’s image or its individual products. Publicity refers to non-personal
communications such as press releases, media interviews, press conferences, feature
articles, newsletters, photographs, films and tapes. PR may also involve such things as
annual reports, lobbying, special event management, public affairs etc.

 Buzz Marketing Being a routine part of overall IMC marketers are using BUZZ
Marketing that means consumer word of mouth (WOM). Occasionally, a product enters
the market with little fanfare yet is still able to attract a strong customer base.

 Guidelines for better buzz marketing: a. Keep it simple & tell us what's new. b. Don't

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 make claims that you can't support. c. Ask your customers to articulate what's special about
your product or service. d. Start measuring buzz. e. Listen to the buzz.

2.5 Personal Selling

 Personal selling is face-to-face interaction with one or more prospective purchasers for
the purpose of making sales.

 The keys to better selling

 Rethink training

 Get everyone involved

 Inspire from the top

 Change the motivation

 Forge electronic links

 Talk to your customers

3. Integrated Marketing Communications (IMC)

 The “voice” of the brand

 A means by which it can establish a dialogue and build relationships with consumers.

 Allow marketers to inform, persuade, provide incentives, and remind consumers directly
or indirectly.

 Can contribute to brand equity by establishing the brand in memory and linking strong,
favorable, and unique associations to it.

3.1 Developing IMC Programs

 Mixing communication options

 Evaluate all possible communication options available to create knowledge

structures according to effectiveness criteria as well as cost considerations.

 Different communication options have different strengths and can accomplish

different objectives.

 Determine the optimal mix.

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3.2 Criteria for Evaluating IMC Programs In order to match the communication options six
relevant criteria should be considered.

 Coverage: What proportion of the target audience is reached by each communication

option employed? How much overlap exists among options?

 Cost: What is the per capita expense?

 Contribution: The collective effect on brand equity in terms of

 enhancing depth and breadth of awareness

 improving strength, favorability, and uniqueness of brand associations

 Commonality: The extent to which information conveyed by different communication

options share meaning

 Complementarity: The extent to which different associations and linkages are emphasized
across communication options

 Versatility: The extent to which information contained in a communication option works

with different types of consumers

 Different communications history

 Different market segments

3.3 General Marketing Communication Guidelines

 Be analytical: Use frameworks of consumer behavior and managerial decision making

to develop well-reasoned 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.

 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.

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  Be patient: Take a long-term view of communication effectiveness to build and manage
brand equity.

Case

Case 6.1: GROUPON

Groupon launched in 2008 as a company offering a new marketing vehicle to businesses. By

leveraging the Internet and e-mail, the company helps businesses use promotions as a form of
advertisement. Specifically, Groupon maintains a large base of subscribers who receive a
humorously worded daily deal—a specific percentage or dollar amount off the regular price—for
a specific branded product or service. Through these e-mail discounts, Groupon offers three
benefits to businesses: increased consumer exposure to the brand, the ability to price
discriminate, and the creation of a “buzz factor.” For these benefits, Groupon takes a 40–50
percent cut in the process. Many promotions are offered on behalf of local retailers such as spas,
fitness centers, and restaurants, but Groupon also manages deals on behalf of national brands
such as Gap, Southwest Airlines, and FTD. In 2010, Groupon expanded from 1 to 35 countries,
grew its subscriber base from 2 million to over 50 million, partnered with 58,000 local
businesses to promote over 100,000 deals, and saved consumers over $1.5 billion. Although
some businesses complain that Groupon just attracts deal-seekers and is not as effective in
converting regular customers, its 2011 revenue was reported to be between $3 billion and $4
billion. Groupon now faces several competitors in the market it helped create, including
LivingSocial, Bloomspot, and Buywithme. Partly in response, Groupon Now was launched.
Leveraging its massive sales force to sell Groupon Now, Groupon enlists local businesses to
offer time and location-specific deals that customers can obtain via the Web or their smartphone.
The iPhone app for the new service has two buttons, “I’m Bored” and “I’m Hungry” to trigger
possible deals in real time. For businesses, the service is a way to boost traffic at otherwise slow
times. Even a popular restaurant might still consider some midday and midweek discounts
knowing the place is rarely full then.

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Source: Cassie Lancellotti-Young, “Groupon Case,”Glassmeyer/McNamee Center for Digital
Strategies, Dartmouth College, 2011; Brad Stone and Douglas MacMillan, “Are These Four
Words Worth $25 Billion,”Bloomberg BusinessWeek, 27 March 2011; Brad Stone, “Coupon
Deathmatch, Party of Two?,” Bloomberg BusinessWeek, 10 October 2010.

Collected From: “Strategic Brand Management: Building, Measuring, and Managing Brand
Equity”, Kevin Lane Keller, 4th Edition, PEARSON

Case 6. 2: NATIONWIDE

Nationwide Insurance has a highly successful partnership with NASCAR racing. It sponsors the
NASCAR Nationwide Series of stock car races and is also the official auto, home, and life
insurance partner of NASCAR. After the third year of a seven-year deal, Nationwide research
showed that the insurance company was up 183 percent on lead generation, had raised brand
awareness among NASCAR fans by 50 percent, and had increased buying rates for three
consecutive years. Nationwide had anticipated NASCAR fans’ legendary loyalty, but its
executives were still surprised by the quality and profitability of the relationships they built. As
one executive noted: “They’re a higher-value consumer. They tend to buy more than one product
and be more responsible, resulting in fewer claims.” Nationwide has also developed business -
to-business relationships with other sponsors, racing teams, and tracks. As a result of all these
developments, the sponsorship broke even early in the third year of the sponsorship, sooner than
expected.
Source: Noreen O’Leary, “Nationwide CMO Talks Sports Sponsorship and ROI, Adweek, 19
October 2010; Nate Ryan, “NASCAR Sponsorship Proves a Boon for Nationwide Insurance,”
USA TODAY, 27 August 2010.

Collected From: “Strategic Brand Management: Building, Measuring, and Managing Brand
Equity”, Kevin Lane Keller, 4th Edition, PEARSON

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Questions:

1. Gather all marketing communication materials of BANGLALINK, a tele communication

brand of Bangladesh. How effectively have they “mixed and matched” marketing
communications? Have they capitalized on the strengths of different media and
compensated for their weaknesses at the same time? How explicitly have they integrated
their communication program?

2. Which category of product do you think can effectively use Internet for building brands?
How would you evaluate a Web site for a major brand of that category?

3. What kind of consumer promotion do you think attract the young age people? How
promotion can help to build brand equity? Try to find a good example and a poor
example of brand-building promotions.

4. Take any sports event as an example and identify its sponsors? How are they building
brand equity with their sponsorship? Are they integrating the sponsorship with other
marketing communications?

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