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ntegrating Marketing Communications to Build Brand Equity

Marketing communications are the means by which firms attempt to inform, persuade &
remind consumers indirectly or directly about the brands that they sell.
t represents the voice of the brand and are a means by which brand can establish a dialogue
and build relationship with consumers.
Though advertising is a central element of marketing communication program but it is not the
only element.
Marketing communications can contribute to brand equity by creating awareness of the
brand; linking strong favorable and unique associations to the brand in consumer memory;
eliciting positive judgments or feelings, and facilitating a strong consumer based brand
connection or resonance.
n addition marketing communications programs can provide incentives that elicit the
differential response
Overall objective is how to optimally develop marketing communication programs to build
brand equity.
Test for Marketing Communication Effectiveness
nformation Processing Model of Communications
For a person to be persuaded by any form of communication following six steps must occur:
1. Exposure: A person must see or hear the communication.
2. Attention: A person must notice the communications
3. Comprehension: A person must understand the intended message or arguments
of the communication.
4. Yielding: A person must respond favorable to the intended message or
arguments of the communication.
5. ntentions: 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.
Overview of Marketing Communication Process-
Advertising
Advertising can be defined as any paid form of non personal presentation and
promotion of ideas, goods or services by an identified sponsor.
t is a promotional device for mass communication on wide scale.
Features of Advertising:
a. Advertisement persuades customers to buy the product/service advertised.
b. t appeals to the mass.
c. Non personal
d. Quick & Effective
e. Advertisement has a price.
Advertising Options
Television
Radio
Newspaper
Magazines
Overview of Marketing Communication Process-
Advertising Options- Television
TeIevision:
Television is generally considered the most powerful medium because it allows for sight, sound and
motion and reaches a broad spectrum of consumers.
TV advertising can be an effective means of vividly demonstrating product attributes and
persuasively explaining their corresponding consumer benefits.
TV advertising can be a means for portraying non- product- related user and usage imagery, brand
personality and so on.
Drawback of TV advertising could be high cost of production.
Large number of advertisement & channel creates clutter that makes it easy for consumers to
ignore or forget adverts.
n designing and evaluating ad campaign it is important to distinguish the message strategy or
positioning of an ad from its creative strategy.
Overview of Marketing Communication Process-
Advertising Options- Radio
Radio :
Radio is generally flexible- stations are very targeted- and are relatively inexpensive to produce and
place.
Disadvantage of radio is lack of visual image and relatively passive nature of consumers.
Processing that result. But still clever use of music, sounds, humor and other creative devices can
tap into listener's imagination.
Four factors to be considered while making Radio Adverts:
a. dentify your brand early in the commercial
b. dentify it often
c. Promise the listener a benefit early in the commercial
d. Repeat it often
Overview of Marketing Communication Process-
Advertising Options- Print
Print :
Two main print media- Newspaper & Magazines have many of the same advantage &
disadvantage. However magazines are effective at brand building user and usage imagery where
as newspaper is meant for mass.
Print advert elicit quick response. They can provide detail product information. As soon as print
media reach customers those who need the product have remained in gap so far hasten to buy the
product.
t doesn't involve high cost in view of public coverage and cost per reader.
Adjustment is possible as per requirement . Space can be adjusted .
The static nature of the visual images in print media makes it difficult to provide dynamic
presentations or demonstration.
t's a fairly passive medium.
Poor production quality and short shelf life can diminish the impact of newspaper advert compared
to magazine advertisement.
Overview of Marketing Communication Process-
Direct Response Options
Direct Response Options:
Direct response refers to the use of mail, telephone and other non personal contact tools to
communicate with or solicit a response from specific customers and prospects.
Mail, Telephone, Computer Related, Media Related, Print media etc.
Overview of Marketing Communication Process-
Advertising Options- Place Advertisement
PIace Advertisement :
This is called non traditional or alternative or support advertising because has arisen in recent
years as a means to complement more traditional advertising media.
Place or out of home advertisings are showing up in unusual spots.
Some of the options are bill boards, movie, airlines and lounges, Vehicle adverts, transit adverts in
subway, train, bus shelters, kiosks , toiled, garden etc
Billboards doesn't even necessarily have to stay in one place. Marketers can buy ad space on
billboards laden trucks.
Advertisers are placing traditional TV and print ads in unconventional places, such as airport
lounges, bus stations, shopping malls and other public areas.
Point of Purchase:
Communicate with consumers at the point of purchase.
n store advertising includes ads on shopping carts, shelves as well as in strore demonstrations and
teller.
Product PIacement:
Products can make appearance in movies and on televisions.
Exact amount depend upon the amount and nature of the brand exposure.
Air Tel an official telephone to use phone call as a life line on KBC on Star Plus.
Some firms benefit from product placement at no cost by supplying their product to the movie
company in return for eg Nike
Overview of Marketing Communication Process-
Promotions Options
SaIes Promotion :
Sales promotion can be defined as short-term incentives to encourage trial or usage of
a product or service.
ts always short term.
Sales promotions can be targeted at either the trade or at end consumers.
Sales promotions offer consumers an incentive to buy.
Objective of SaIes promotions
a. To change the behavior of the trade so that they carry the brand and actively support it.
b. To change the behavior of consumers so that they buy a brand for first time, buy more of the
brand or buy the brand earlier or more often.
Trade Promotions Consumer Promotions
Trade deals and buying allowance Samples
POP display allowances Coupons
Push Money Premiums
Contest & Dealer ncentives Refunds & Rebates
Trade Show Bonus Pack
Training programs Price Offs
Contest
Overview of Marketing Communication Process-
Promotions Options
Objective:
Consumer Target Trade Target
To persuade new users Distribution
To persuade existing consumers Maintain/increase existing distribution, shelf facing, shelf location
Consumer Loyalty Additional Stock
Trade to stock a complete line of producer's products.
Support
To persuade outlets to provide temporary price cuts, displays
To provide retailers with an opportunity to increase in store excitement
To achieve secondary placement of brand
Inventories
To increase the average trade order size
To increase trade inventories
GoodwiII
To protect consumer price negotiation at Point of purchase.
To protect trade from a temporary sales reduction.
Overview of Marketing Communication Process-
Promotions Options
John QueIch argues that Six issues must be addressed to deveIop effective Promotion PIan
1. Type: What type of promotion shouId be used
mmediate V/s Delayed value, Price Cut v/s Added Value
2. Product Scope: To what pack sizes or modeIs shouId the promotion appIy?
Multiple or selective, More or less popular
3. Market Scope: In which geographic markets shouId be promotion offered?
National or regional
4. Timing: When shouId the promotion be offered and for how Iong?
When to promote ( in or off season), Duration ( long or short) Frequency ( high or low)
5. Discount Rate: What expIicit or impIicit discount shouId the promotion incIude?
Deep or shallow
6. Terms: What terms of saIe shouId be attached to promotions
Tight or loose
Overview of Marketing Communication Process-
Event Marketing & Sponsorship
Event marketing refers to public sponsorship of events or activities related to sports,
art, entertainment or social causes.
Event sponsorship provides a different kind of communication options for marketers.
By involvement in events brand can broaden and deepen their relationship with their
target.
Why marketers sponsor events:
a. To identify with a particular target market or lifestyle
b. To increase awareness of the company or product name.
c. To help create brand association.
d. To enhance corporate image dimensions
e. To create experience feelings
f. To express commitment to the community or on social issues
g. To entertain key clients or key employees
h. To permit merchandising or promotional opportunities.
ChaIIenges in event sponsorship:
Success of an event can be unpredictable.
There can be much clutter in sponsorship
Choosing the appropriate event, designing, and measuring effects of sponsorship.
Overview of Marketing Communication Process-
Event Marketing & Sponsorship
Choosing Sponsorship Opportunities
The marketing objective and communication strategy that have bee defined for brand
must be met by the event.
Event must have sufficient awareness and posses the desired image and be capable
of creating the desired effect with the target market.
An ideal event might be one whose audient closely matches the ideal target market.
nstead linking to an event some sponsors create their event.
Designing Sponsorship Program
Sponsor can strategically identify itself at an event in number of ways including branding and programs.
Sponsor can supplement such activities with samples, prizes, advertising, retail promotion, publicity etc
Measuring Sponsorship Activities
Two basic approaches:
SuppIy side Method Demand Side Method
Focus on potential exposure to the brand by Focus on reported exposure from consumers.
assessing the extent of media coverage.
Spectators can be identified and surveyed after
event to measure recall of event's sponsor etc
Overview of Marketing Communication Process-
Public Relation & Publicity
PubIic ReIation & PubIicity:
PR and Publicity relate to variety of programs that are designed to promote or protect
a company's image or its individual products.
Publicity is any communication about an organization, its products or policies through
the media that is not paid for by the organization.
Publicity includes press release, media, interviews, press conference, newsletter etc
PR involves activities such as annual report, fund raising, special events, CSR
BUZZ Marketing:
Overview of Marketing Communication Process-
Personal Selling
PersonaI SeIIing:
As a process of informing customers and persuading them to purchase products
through personal communication in an exchange transaction.
t is a device of direct personal contact.
Features:
a. Personal Persuasion
b. A sales person enables a consumer to buy a product which gives him full satisfaction
c. nformative and educative
d. Various approaches may be used as per the need of product.
e. ntensive efforts are made to win every consumers
f. t smoothens relations between buyers and seller.
Overview of Marketing Communication Process-
Personal Selling
ow to make PersonaI SeIIing More Effective:
Rethink training : Sales representative needs new skills. They must learn to become
customer advocates whose detailed knowledge of their customers business helps
them spot sales opportunities and service problems.
Get everyone involved
nspire from the top
Change the motivation
Talk to your consumer
Electronic links: use computerized marketing and distribution technology to track relationship with
customers to make sure right product gets to right stores at right times and make order taking easy.
Types of SaIes Person:
1. Manufacturer's SaIes Person
a. Creative Sales Person b. Merchandising Sales Person c. Dealer Servicing Sales Person
2. WhoIesaIers SaIes Person
3. RetaiIers SaIes Person
a. ndoor Sales Person b. Outdoor Sales Person
4. SpeciaIity SaIes Person
Major and high cost item require service of speciality sales person. For eg tv, equipment,
automobiles etc
5. Service SaIes Person:
S/He helps to sell services. Stock Brockers, Ad collectors, nsurance Agents etc.
Overview of Marketing Communication Process-
Matching Communication Options
Criteria to create most effective and efficient communication program:
1. Coverage:
Proportion of audience reached by each communication option employed as well as how much overlap
exists.
2. Contribution:
abiIity of marketing communication to create the desired response and communication effect from
consumers in absence of exposure to any other communication options.
3. Cost
4. CommonaIity
extent to which common associations are reinforced across communications options, that is the extent to
which information conveyed by different communication options shares meaning.
Combination of different communication elements should be designed and combined so that they work
effectively together to create a consistent and cohesive brand image.
5. CompIementarity: extent to which different associations and linkages are emphasized across
communication options.
ideal marketing communication porgram whould ensure that the communication options chosen are
mutually compensatory.
6. VersatiIity : Marketing communication option is effective for different groups of consumers
Leveraging Secondary Brand Knowledge to Build Brand Equity
Different Means by which secondary brand knowIedge can be created by Iinking the brand
to the foIIowing:
1. Companies ( eg through branding strategies)
2. Countries or other geographic areas ( eg through identification of product origin)
3. Channels of Distribution ( e.g, through channel strategy)
4. Other Brands ( e.g, co branding)
5. Characters ( e.g, through licensing)
6. Spokespersons ( e.g, through endorsements)
7. Events ( through event sponsorship)
8. Other third party sources ( eg through rewards or reviews)
Leveraging Secondary Brand Knowledge to Build Brand Equity
Different Means by which secondary brand knowIedge can be created by Iinking the brand
to the foIIowing:
1. Companies ( e.g, through branding strategies)
The branding strategy adopted by company is an important determinants of the strength of
association from the brand to the company.
Create a new brand
Adopt or modify an existing brand
Combine an existing and new brand
Leveraging Secondary Brand Knowledge to Build Brand Equity
Different Means by which secondary brand knowIedge can be created by Iinking the brand
to the foIIowing:
2. Country of Origin and other Geographic Areas
Besides the company that makes the product, the country or geographic location from which
it is seen as originating may also become linked to secondary association
Many countries have become known for expertise in certain product categories.
Besides country of origin, states, regions and cities may also be possible.
t is a legal necessity for the country of origin to appear visibly somewhere on the product or
package.
Leveraging Secondary Brand Knowledge to Build Brand Equity
Different Means by which secondary brand knowIedge can be created by Iinking the brand
to the foIIowing:
3. ChanneIs of Distribution
Channel of distribution can directly affect the equity of the brand they sell.
Retail Store can indirectly affect the brand equity of the product they sell by influencing the
nature of association.
Because of product, pricing, credit, quality of service and so on retailers have their own
brand image.
Transfer of store image association can be either positive or negative for a brand. Tapping a
new channel of distribution may have both effect.
Leveraging Secondary Brand Knowledge to Build Brand Equity
Different Means by which secondary brand knowIedge can be created by Iinking the brand
to the foIIowing:
4. Co Branding
Co branding also called as brand bundling or brand alliances occurs when two or more
existing brands are combined into a joint product or are marketed together in some fashion.
For example Pizza Hut & Cocacola
Advantages Disadvantage
1. Product may be uniquely positioned 1. Lack of control
2. t can create more compelling POD 2. Consumers expectation is high
3. Can generate greater sales 3. Negative feedback effect
4. Can reduce cost of product introduction 4. Lack of brand focus if one brand has
entered into number of co-branding.
Licensing invoIves contractuaI agreements whereby firms can use the names, Iogos,
characters and so forth of other brands to market their own brands.
Leveraging Secondary Brand Knowledge to Build Brand Equity
Different Means by which secondary brand knowIedge can be created by Iinking the brand
to the foIIowing:
5 . Characters
Licensing involves contractual agreements whereby firms can use the names, logos,
characters and so forth of other brands to market their own brands.
6 . Spokespersons ( endorsement)
Well known and admired people to promote products.
Draw attention to brand, shape the perceptions of the brand.
n choosing a celebrity endorser, it is important for the celebrity to be well enough known
that the awareness, image and responses for the brand may be improved.
Potential Problem:
1. Endorser endorsing too many brands
2. Endorser loosing popularity
3, Reasonable match between celebrity and product
Leveraging Secondary Brand Knowledge to Build Brand Equity
Different Means by which secondary brand knowIedge can be created by Iinking the brand
to the foIIowing:
7. Events
Sponsored events can contribute to the brand equity by becoming associated to the brand
and improving brand awareness.
The extent to which transfer takes place depends upon the which events is selected and how
the sponsorship program is designed.
A brand may seem more likeable or perhaps more trustworthy
8. Third party Sources: ( Rewards/ Reviews)