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BRAND MANAGEMENT

INTEGRATING MARKETING COMMUNICATION TO


BUILD BRAND EQUITY

Satadruta Mookherjee
Assistant Professor of
Marketing
GEM
OUTLINE OF THE SESSION
1. The new media environment
2. Three major marketing communication options
3. Brand amplifiers
4. Developping IMC communication programs

à Group work

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1. THE NEW MEDIA ENVIRONMENT
1. THE NEW MEDIA ENVIRONMENT
o Advertising and other communication options can play
different roles in the marketing program
– They all serve is to contribute to brand equity!

o The CBEE and pyramid models à marketing communications


can contribute to brand equity in a number of different ways:
– Creating awareness of the brand
– Linking points-of-parity and points-of-difference associations to
the brand in consumers’ memory
– Eliciting positive brand judgments or feelings
– Facilitating a stronger consumer–brand connection and brand
resonance

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1. THE NEW MEDIA ENVIRONMENT
o How to develop marketing communication programs to
build brand equity?
– Assuming that the other elements of the marketing program
have been properly put into place (STP + product + pricing +
distribution)

o The media environment has changed dramatically in recent


years
– Traditional advertising media (television, radio, magazines,
and newspapers) seem to be losing their grip on consumers due
to increased competition for consumer attention
– The digital revolution offers a host of new ways for consumers
to learn and talk about brands with companies or with each
other
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1. THE NEW MEDIA ENVIRONMENT

Marketing Communications
Options

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1. THE NEW MEDIA ENVIRONMENT
Distribution of global advertising expenditure from 2015 to 2020, by media
Digital TV Newspapers Out of home Radio Magazines Cinema

120%

100% 0,5% 0,6% 0,6% 0,6% 0,6% 0,6%


6,9% 6,3% 5,6% 5% 4,5% 4%
6,3% 6,2% 6,1% 5,9%
6,6% 6,5%
6,3% 6,3% 6,3%
6,3% 6,3%
6,9%
80% 7,1% 6,3%
9,1% 8%
10,4%
12,4%
Share

60% 32,4%
33,6%
34,9%
36,6%
38,3%
42%
40%

41,8% 44,5%
20% 39%
35,6%
31,8%
24,6%

0%
2015 2016 2017 2018 2019* 2020*
https://assets-eu-01.kc-usercontent.com/07a6724e-e8d5-01e9-e1a2-cf80ed35c199/c3b1bea5-50a8-4c10-
7 Brand Management b031-242dbe4af489/DAN-AdSpend-June-2019_FINAL.PDF
1. THE NEW MEDIA ENVIRONMENT
o Challenges in Designing Brand-Building Communications
The simplest—but most useful—way to judge any communication option is by its
ability to contribute to brand equity
Does a sponsorship cause
consumers to have more
How well does a proposed ad favorable brand judgments
campaign contribute to brand and feelings?
awareness or to creating,
maintaining, or strengthening
certain brand associations?

To what extent does an


online promotion encourage
consumers to buy more of a
product?

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1. THE NEW MEDIA ENVIRONMENT
o Challenges in Designing Brand-Building Communications
Simple Test for Marketing Communication Effectiveness

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1. THE NEW MEDIA ENVIRONMENT
o Information Processing Models of Communications
– Several models have been put forth over the years to explain
communications and the steps in the persuasion process

§ The hierarchy of effects model: created in 1961 by Robert J


Lavidge and Gary A Steiner. Suggests 6 steps from viewing a
product advertisement to product purchase à to encourage the
customer to go through the six steps and purchase the product

§ This model tells marketers how to create communications so


that the prospect goes through the 3 different stages

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1. THE NEW MEDIA ENVIRONMENT
The hierarchy of effects model

THINK

When the consumer


FEEL gathers knowledge about
the product and becomes
aware of it
DO

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1. THE NEW MEDIA ENVIRONMENT
The hierarchy of effects model

When the consumer starts


developing an emotional
THINK bond with the product

FEEL

DO

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1. THE NEW MEDIA ENVIRONMENT
The hierarchy of effects model

THINK When the consumer, after


weighing the pros and
cons, purchase the
product
FEEL

DO

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1. THE NEW MEDIA ENVIRONMENT
o Information Processing Models of Communications
– William McGuire (1968) further developed the Yale Approach to
Persuasion
– He broke down the persuasion process into 6 sequential steps

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1. THE NEW MEDIA ENVIRONMENT
Exposure
• Audiences are presented with a message through a channel Easiest
Attention/awarness
• Audiences will see and recognize the message with either creative
exposure, or repeated exposure. Often 3 times or more
Comprehension/understanding
• Audiences comprehend the value or point of the message

Acceptance
• Audiences believe the message

Retention
• Audiences remember the message, and identify the message with
the company and its products / services. Company becomes branded
Action
• Audiences change their behavior in the desired direction. Purchase!
Hardest

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1. THE NEW MEDIA ENVIRONMENT
Exposure
• Audiences are presented with a message through a channel Easiest
Attention/awarness
• Audiences will see and recognize the message with either creative
exposure, or repeated exposure. Often 3 times or more
Comprehension/understanding
• Audiences comprehend the value or point of the message

Acceptance
• Audiences believe the message

Retention
• Audiences remember the message, and identify the message with
the company and its products / services. Company becomes branded
Action
• Audiences change their behavior in the desired direction. Purchase!
Hardest

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1. THE NEW MEDIA ENVIRONMENT
o Information Processing Models of Communications

One implication of the information processing model is that,


to increase the odds for a successful marketing
communications campaign, marketers must attempt to
increase the likelihood that each step occurs

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1. THE NEW MEDIA ENVIRONMENT
o The ideal ad campaign would ensure that:
1. The right consumer is exposed to the right message in 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 advertisement 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 the purchase of the
brand
6. The ad creates strong brand associations to all these stored
communication effects so that they can have an effect when
consumers are considering making a purchase
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1. THE NEW MEDIA ENVIRONMENT
o How much and what kinds of marketing communications
are necessary?
NOI = $44,99bn

$44,29bn

$41,86bn

$36,21bn

$34,30bn

$37,27bn
https://learnbonds.com/news/coca-cola-spent-4.24bn-for-advertising-
19 Brand Management in-2019-20bn-in-the-last-5-years/
1. THE NEW MEDIA ENVIRONMENT
o Role of Multiple Communications
– Marketers will employ multiple communications to achieve their
goals
§ SMART goals have to be defined

– They must understand how each communication option works


and how to assemble and integrate the best set of choices

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2. THREE MAJOR MARKETING
COMMUNICATION OPTIONS
2. THREE MAJOR MARKETING
COMMUNICATION OPTIONS

(1) Advertising and


promotion

(2) Interactive marketing

(3) Events and experiences

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2. THREE MAJOR MARKETING
COMMUNICATION OPTIONS
o Advertising (TV, Radio, Print, Direct response, Place)
– Any paid form of nonpersonal presentation and promotion of
ideas, goods, or services by an identified sponsor
– A powerful means of creating strong, favorable, and unique
brand associations and eliciting positive judgments and feelings,
advertising
– BUT controversial because its specific effects are often difficult
to quantify and predict.
à A number of studies using very different approaches have
shown the potential power of advertising on brand sales
• Kumar, V., Choi, J. B., & Greene, M. (2017). Synergistic effects of social media and traditional marketing on brand sales: Capturing the time-varying
effects. Journal of the Academy of marketing Science, 45(2), 268-288.
• Bruce, N. I., Becker, M., & Reinartz, W. (2020). Communicating brands in television advertising. Journal of Marketing Research, 57(2), 236-256
• Keller, K. L. (1999). Managing brands for the long run: Brand reinforcement and revitalization strategies. California management review, 41(3), 102-
124.
• Ansari, M. E., & Joloudar, S. Y. E. (2011). An investigation of TV advertisement effects on customers' purchasing and their satisfaction. International
Journal of Marketing Studies, 3(4), 175.

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2. THREE MAJOR MARKETING
COMMUNICATION OPTIONS
o Advertising _ TV
– A powerful advertising medium because it allows for sight,
sound, and motion and reaches a broad spectrum of consumers

On average, Americans aged


18 and older spend more than
four hours a day watching TV

Younger people are more


likely to use streaming
services such as Netflix and
Amazon Prime Video instead
of watching “traditional” TV

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2. THREE MAJOR MARKETING
COMMUNICATION OPTIONS
o Advertising _ Radio
– Radio is a particularly effective medium in the morning and can
effectively complement or reinforce TV ads
Weekly radio reach in the United States as of September 2020, by age and gender

During an average week in


September 2020, radio reached
90.5 percent of all American
aged between 35 and 64 years
of age

https://www-statista-com.grenoble-
25 Brand Management em.idm.oclc.org/statistics/475891/internet-radio-reach-age-usa/
2. THREE MAJOR MARKETING
COMMUNICATION OPTIONS
o Advertising _ Print
– Print media has taken a huge hit in recent years as more and
more consumers choose to collect information and seek
entertainment online

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2. THREE MAJOR MARKETING
COMMUNICATION OPTIONS
o Advertising _ Direct response
– Mail, telephone, Internet, and other contact tools to
communicate with or solicit a response from specific customers
and prospects
– Infomercials, formally known as direct response TV marketing is
popular
§ A cross between a sales call and a television ad

https://www.youtube.com/watch?v=masVbx2a5IY

$400 million in
revenue in 2015

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2. THREE MAJOR MARKETING
COMMUNICATION OPTIONS
o Advertising _ Place
– Out-of-home advertising, is a broadly defined category that captures
advertising outside traditional media
– Because traditional advertising media are becoming less effective,
marketers are better off reaching people in other environments, such
as where they work, play, and, of course, shop
– Billboards and posters; movies, airlines, lounges, and other places;
product placement; and point-of-purchase advertising

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2. THREE MAJOR MARKETING
COMMUNICATION OPTIONS
o Promotion
– Sales promotions are short-term incentives to encourage trial or
usage of a product or service and come in all forms
– Change the behavior of consumers so that they buy a brand for
the first time, buy more of the brand, or buy the brand earlier or
more often

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2. THREE MAJOR MARKETING
COMMUNICATION OPTIONS
o Online Marketing Communications
– With the pervasive incorporation of the Internet into everyday
personal and professional lives, marketers are scrambling to
find the right places to be in cyberspace
– The low cost and the level of detail and degree of customization
it offers
– SEO, display, affiliation, social media, emails…

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2. THREE MAJOR MARKETING
COMMUNICATION OPTIONS
o Events and Experiences
– Range from an extravagant multimillion dollar sponsorship of a
major international event to a simple local in-store product
demonstration or sampling program
– Event marketing can be defined as public sponsorship of
events or activities related to sports, art, entertainment, or social
causes

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2. THREE MAJOR MARKETING
COMMUNICATION OPTIONS
o Events and Experiences

https://www.youtube.com/watch?v=prndAD
wvteI&feature=emb_logo

This year, NBCUniversal is charging


advertisers $6.5 million to run a 30-second
ad.

https://www.youtube.com/watch?v=h3NhX
6-5mO0
²

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3. BRAND AMPLIFIERS
3. BRAND AMPLIFIERS

o Complementing these three broad sets of marketing


communication activities are efforts to engage consumers and
the public via:
– 1/ word-of-mouth
– 2/ public relations and publicity

o They can perform many different functions, they are


especially well-suited at amplifying the effects created by
other marketing activities

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3. BRAND AMPLIFIERS

o Word-of-Mouth
– A critical aspect of brand building as consumers share their likes,
dislikes, and experiences with brands and with each other
– The power of word-of-mouth is the credibility and relevance it often
brings
– Study after study has shown that the most trusted source of
product information is friends and families (peers)
– Companies are attempting to create this consumer word-of-mouth
through various techniques such as influencer marketing (the
practice of using social influencers to spread word-of-mouth about
a product or a brand)
• De Bruyn, A., & Lilien, G. L. (2008). A multi-stage model of word-of-mouth influence through viral marketing. International journal of
research in marketing, 25(3), 151-163.
• Groeger, L., & Buttle, F. (2014). Word-of-mouth marketing influence on offline and online communications: Evidence from case study
research. Journal of Marketing Communications, 20(1-2), 21-41.
• Arenas-Márquez, F. J., Martínez-Torres, M. R., & Toral, S. L. (2021). How can trustworthy influencers be identified in electronic word-
of-mouth communities?. Technological Forecasting and Social Change, 166, 120596.

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3. BRAND AMPLIFIERS

o Word-of-Mouth

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3. BRAND AMPLIFIERS

o Word-of-Mouth

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3. BRAND AMPLIFIERS

o 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
products
– Publicity is nonpersonal communications such as press
releases, media interviews, press conferences, feature articles,
newsletters, photographs, films, and tapes
– Public relations may also include annual reports, fundraising
and membership drives, lobbying, special event management,
and public affair

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4. DEVELOPPING INTEGRATED
MARKETING COMMUNICATION
PROGRAMS
4. DEVELOPPING INTEGRATED MARKETING
COMMUNICATION PROGRAMS

Brand Management
4. DEVELOPPING INTEGRATED MARKETING
COMMUNICATION PROGRAMS
o How to develop an integrated marketing communication (IMC)
program by choosing the best set of options and managing
the relationships between them?
– Marketers should “mix and match” communication options to
build brand equity
– Choose a variety of communication options that share common
meaning and content but also offer different, complementary
advantages so that the whole is greater than the sum of the
parts

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4. DEVELOPPING INTEGRATED MARKETING
COMMUNICATION PROGRAMS
o Criteria for IMC Programs
– In assessing the collective impact of an integrated marketing
communication program, the goal is to create the most effective
and efficient communication program possible
– Six relevant criteria, known as “the 6 Cs”
1. Coverage
2. Contribution
3. Commonality
4. Complementarity
5. Conformability
6. Cost

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4. DEVELOPPING INTEGRATED MARKETING
COMMUNICATION PROGRAMS
o Criteria for IMC Programs_Coverage
– The proportion of the audience reached by each
communication option, as well as how much overlap exists
among communication options

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4. DEVELOPPING INTEGRATED MARKETING
COMMUNICATION PROGRAMS
o Criteria for IMC Programs_Contribution
– The inherent ability of a marketing communication to create the
desired response and communication effects from consumers in
the absence of exposure to any other communication option
– Describes the main effects of a marketing communication option in
terms of how it affects consumers’ processing of a communication and
the resulting outcomes

o Criteria for IMC Programs_Commonality


– The extent to which common information conveyed by different
communication options shares meaning across communication
options
– Most definitions of IMC emphasize only this criterion—sending target
audiences the same consistent message across communication
options
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4. DEVELOPPING INTEGRATED MARKETING
COMMUNICATION PROGRAMS
o Criteria for IMC Programs_Complementarity
– Describes the extent to which different associations and linkages
are emphasized across communication options
– The ideal marketing communications program would ensure that the
communication options chosen are mutually compensatory and
reinforcing to create desired consumer knowledge structures

o Criteria for IMC Programs_Conformability


– Refers to the extent that a marketing communication option is robust
and effective for different groups of consumers (prior exposure or not)
– A marketing communication option is conformable when it achieves its
desired effect regardless of consumers’ past communication history

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4. DEVELOPPING INTEGRATED MARKETING
COMMUNICATION PROGRAMS
o Criteria for IMC Programs_Cost
– Evaluations of marketing communications on all of the preceding
criteria must be weighed against their cost to arrive at the most
effective and efficient communication program

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LEGO BATMAN « THE MOVIE » (2017)
Connection Shopper
experience experience

Product
experience
Engage bond
influence

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LEGO BATMAN « THE MOVIE »
o A lot of previews

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LEGO BATMAN « THE MOVIE »
o Digital media

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LEGO BATMAN « THE MOVIE »
o Partnerships and sponsorings

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LEGO BATMAN « THE MOVIE »
o Influencers and celebrities

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LEGO BATMAN « THE MOVIE »
o Engagement on social networks

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LEGO BATMAN « THE MOVIE »
o Press coverage

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LEGO BATMAN « THE MOVIE »
o Billborad campaign in the subway

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LEGO BATMAN « THE MOVIE »
o Street marketing

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LEGO BATMAN « THE MOVIE »
o Point of sales marketing

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LEGO BATMAN « THE MOVIE »
o Digital advertising

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LEGO BATMAN « THE MOVIE »
o Video games

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LEGO BATMAN « THE MOVIE »
o Associated products

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IN CONCLUSION…
General Marketing Communication Guidelines: The “Keller Bs” (in Keller’s book)

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GROUP WORK
SUMMARY OF THE SESSION
o Three main types of communications were identified as being critical: (1)
advertising and promotion, (2) interactive marketing, and (3) events and
experiences.

o A number of specific communication options—broadcast, print, direct


response, and place advertising media; consumer and trade promotions;
Web sites, online ads, videos, and social media online marketing; and
events and experiences—were reviewed in terms of basic characteristics
as well as success factors for effectiveness.

o Brand amplifiers that enhance these effects in the form of publicity and
public relations, word-of-mouth, and buzz marketing were also discussed.
The chapter also provided criteria as to how different communication
options should be combined to maximally build brand equity

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SUMMARY OF THE SESSION
o Two key implications emerges:
– First, from the perspective of customer-based brand equity, all
possible communication options should be evaluated regarding
their ability to affect brand equity. In particular, the CBBE
concept provides a common denominator by which the effects of
different communication options can be evaluated: Each
communication option can be judged in terms of the
effectiveness and efficiency by which it affects brand awareness
and by which it creates, maintains, or strengthens favorable and
unique brand associations. Different communication options
have varying strengths and can accomplish differing objectives.
Thus, it is important to employ a mix of communication options,
each playing a specific role in building or maintaining brand
equity.

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SUMMARY OF THE SESSION
o Two key implications emerges:
– The second important insight that emerges from the conceptual
framework is that the marketing communications program
should be put together in a way such that the whole is greater
than the sum of the parts. As such, there should be a match
among certain communication options so that the effects of any
one type of communication option are enhanced by the
presence of another option.

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