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Chapter 2:

Integrated Brand
Communication
Part 1
Enduring Principles in Times of Turmoil

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Questions to explore
1. How is marketing defined, what is the marketing
process, and what are marketings key concepts?

2. How does marketing communication contribute


to the development of a brand?

3. What is integrated marketing communication,


and what are its key concepts?

4. How is brand communication evolving during a


time of change?

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What is Marketing?

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What is marketing?
Much of a products value is created by marketing
decisions that determine its:

Design
Ease of use
Distribution
Pricing
Marketing
communication

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What is Marketing?
Marketing is designed to build brand and
customer relationships that:

generate sales and profits.


for nonprofits: volunteers and donations.

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Why Marketing 101?
Marketing is the way a product is:

Designed
Tested
Produced
Branded
Priced
Distributed
Promoted

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Why Marketing 101?

Marketing is the activity, set of institutions, and


processes for creating, communicating, delivering,
and exchanging offerings that have value for
customers, clients, partners, and society at large.

The American Marketing Association

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Why Marketing 101?
Marketing also focuses on managing customer
relationships to benefit all of a brands
stakeholders.

Stakeholders are all individuals and groups


who have a stake in the success of the brand.

Positive relationships create value for a brand.

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Why Marketing 101?
Traditionally speaking

The objective of most marketing programs has


been to sell products, i.e, goods, services, or
ideas.

This is done by matching a products


availability to the consumers need, desire or
demand.

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Why Marketing 101?
What is a product category?

It is the classification to which the product is


assigned. Consider:

Apple Macintosh: the computer category


Burger King: the fast-food category

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Why Marketing 101?
Marketing managers manipulate the marketing
mix, also called the four Ps:

1. Product
2. Price
3. Place
4. Promotion

Urban Decay product cosmetics


project a street-smart attitude in their
packaging and product names.

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Why Marketing 101?
The concept of exchange
Marketing helps create demand for a product
leading to an exchange trading something of value
for a desired product.

Demand drives the exchange.

As a class: Consider the Wii launch described in this


chapter. How did Nintendo manipulate demand in
this case?

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Why Marketing 101?
Who are the key players?
There are five categories:

1. Marketers
2. Suppliers
3. Vendors
4. Distributors
5. Marketing partners

How is this information important as a career guide?

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Why Marketing 101?
A market is not only a place, but a type of
buyer. They include:

1. Consumer
2. Business-to-business
3. Institutional
4. Channel

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Why Marketing 101?
Why is services marketing important?
Services are the dominant part of the economy in
most developed countries.

Many goods manufacturers also offer services such as


parts, repair, and financing.

Most companies have a customer service operation to


provide follow-up services.

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A Key principle

In many economies, service marketing,


which is intangible and creates a more
personal relationship with the customer,
dominates goods marketing.

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Why marketing 101?

This group of ads demonstrates advertising directed at three types


of markets: consumer (Keds), institutional (GE aircraft engines), and
channel (Ka-ching). What are the similarities and differences in
these advertisements?

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How does the
marketing process work?
The seven steps:

1. Research the consumer market.


2. Set objectives for the marketing effort.
3. Segment the market and target specific
markets.
4. Differentiate and position the product.
5. Develop the marketing mix strategy.
6. Execute the strategies.
7. Evaluate the effectiveness of the strategy.

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What key concepts
drive marketing practices?
The marketing concept says

Marketing should focus first on identifying


the needs and wants of the consumer,
rather than just the companys production
capabilities.

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What key concepts
drive marketing practices?
Differentiation makes the
brand stand out from
its competition.

This is known as
positioning.

How a brand is different and


superior is called
competitive advantage.

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Lets explore
Maytag washers

How does Maytag differentiate its products?


How are they positioned relative to the
competition?
What competitive advantages does Maytag
enjoy?

To learn more, go to www.maytag.com

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What key concepts
drive marketing practices?
Added value
Marketing communication activities are also
useful because they add value to a product.

Added value makes a product more valuable,


useful, or appealing to a consumer.

Consider the added value of:


Harley-Davidson Motorcycles
Idaho Potatoes

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What is the marketing mix?

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What is the marketing mix?
The product

Design, performance, and quality are key


elements.

Communication works to:


build awareness of a brand.
explain how the new product works.
explain how it differs form competitors.

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What is the marketing mix?
Pricing
It is based on:
What the market will bear.
The competition.
What the consumer can afford.
The relative value of the product.
The consumers ability to gauge that value.

The price sends a message!

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What is the marketing mix?
Place (distribution)
It includes the channels used to make the
product easily accessible to customers.

The distribution channel also sends a message.

The Internet raises new distribution questions


related to clicks or bricks.

Marketers may use a push or pull strategy.

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What is the marketing mix?

Puma is a global brand that has left its paw prints in more than
80 countries. Go to www.puma.com to see Pumas newest
designs. How important is design to this manufacturer? How can
you assess that and other marketing mix decisions from this
website?
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What is the marketing mix?
Marketing communication
This includes:
Advertising
Public relations
Sales promotion
Direct response
Events and sponsorships
Point of sale
Digital media
And more

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The First Principle Of IMC

Every part of the marketing mix, not just


marketing communication, sends a
message.

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What is Marcoms
Role in Branding?

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What is marcoms role in
branding?
Lets define brand:

A brand is a perception, often imbued with


emotion, which results from experiences with
and information about a company or a line of
products.

Products carry brands, but so do organizations

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A Matter of Practice: The Complex
World of Organization Branding

In the early 21st century, almost anything with a


name is regarded as a brand.

Branding relates to all organizations and entities


in society.

The brand is the linchpin between an organization


and its stakeholders.

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The Second Principle of IMC

A brand is a unified vision (the art) and a


complex system (the science).

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How does a brand acquire
meaning?
Meaning-making ideas and images are what
marketing communication delivers to brands.

This perception, called brand meaning, is the


one aspect of a brand that cant be copied.

A brand, then, is a basically perception loaded


with emotions and feelings.

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A Key Principle

A brand transforms products into


something more meaningful than the
product itself.

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What are the key
components of a brand?
Successful brands:

Are distinctive
Create an association
Offer a benefit
Carry a heritage
Are simple
Are often based on a distinctive graphic:
a logo, trademark, character or other visual cue

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What are the key
components of a brand?
Brand position and promise

Brand position identifies the location a


product or brand occupies in consumers
minds relative to competitors.

Brand promise identifies key selling points


for the product.

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What are the key
components of a brand?
Brand image and personality

Brand image is a mental picture or idea


about a brand that contains both associations
and emotions.

Brand personality symbolizes the personal


qualities of people you know

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What are the key
components of a brand?

Celestial Seasonings uses its distinctive packages to send


messages to consumers about its brand image. In what
way do packages like this reinforce the brand
personality?

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How is brand equity
developed?
Brand value

The value of branding lies in the power of


familiarity and trust to win and maintain
consumer acceptance.

Brand value comes in two forms:

1. Value to a consumer
2. Value to the corporation

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How is brand equity
developed?
Brand equity defined
The intangible value of the
brand based on the
relationships with its
stakeholders as well as its
intellectual property
value.

Brands have a financial value


that can be plotted on a
balance sheet.

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The Third Principle of IMC

Brand relationships drive brand value.

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How is brand equity
developed?
Leveraging brand equity

Brand extension
The use of an established brand name with a related
line of products.
Co-branding
Uses two brand names owned by two separate
companies to create a partnership offering.
Brand licensing
The brand is rented to another business partner.
Ingredient branding
The brand name is used in manufacturing,
advertising or other promotion.
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Why Integrated
Marketing Communication?

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Total brand communication
IMC is the practice of unifying all marketing
communication messages and tools, as
well as the messages from the
marketing mix decisions so that they
send a consistent message promoting
the brands strategy.

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The Fourth Principle of IMC

You cant be integrated externally if you


are not integrated internally.

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Brand Communication
in a Time of Change

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Accountability
Managers are challenged to prove they are
pursuing the most effective marketing
strategies.
Return on investment (ROI)
What did the program cost, and what did it
deliver?

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Global marketing
Global marketing is growing rapidly.

A local brand is marketed in a single


country.

A regional brand is one marketed


throughout a global region.

An international brand is available in many


different countries.

A global brand is available virtually


everywhere in the world.
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Where Were Headed Next
In Chapter 3, we will:

Explore social responsibility.


Discuss issues related to the social impact of
marketing communication.
Examine marcom ethics and regulation.

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Its a Wrap
Winning the Video Game War with

Key lessons:
Leo Burnetts campaign for Nintendo beat the
competition at their own game.
The campaign aimed to fundamentally change how
people experience video games.
Nintendo was recently judged tops in game ads for
effectiveness in print, television, and digital media.

As a class: What others can you think of?


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