Role & Challenge Of IMC In Facilitating The Success Of Brands Week 01. W. Rofianto
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1 Role & Challenge Of IMC In Facilitating The Success Of Brands Week 01 W. Rofianto
2 What is Marketing? 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. (American Marketing Association s official definition of marketing, Approved July 2013)
3 Defining IMC IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences. The goal of IMC is to generate financial returns and build brand equity.
4 The Promotional Mix Advertising Advertising Direct Direct Marketing Marketing Interactive/ Interactive/ Internet Internet Marketing Marketing Sales Sales Promotion Promotion Publicity/Public Relations Relations Personal Selling
5 The Tools of Marketing Communications 1. Media Advertising TV Radio Magazines Newspapers 2. Direct Response and Interactive Advertising Direct mail Telephone solicitation Online advertising 3. Place Advertising Billboards and bulletins Posters Transit ads Cinema ads 4. Store Signage and Point-of- Purchase Advertising External store signs In-store shelf signs Shopping cart ads In-store radio and TV 5. Trade- and Consumer- Oriented Promotions Trade deals and buying allowances Display and advertising allowances Trade shows Cooperative advertising Samples Coupons Premiums Refunds/rebates Contests/sweepstakes Promotional games Bonus packs Price-off deals 6. Event Marketing and Sponsorships Sponsorship of sporting events Sponsorship of arts, fairs, and festivals Sponsorship of causes 7. Marketing-Oriented Public Relations and Publicity 8. Personal Selling Source: Shimp (2010), adapted from Figure 1.1 in Kevin Lane Keller, Mastering the Marketing Communications Mix: Micro and Macro Perspectives on Integrated Marketing Communication Programs, Journal of Marketing Management 17 (August, 2001),
6 Why Not Integrated? The Integration of Marketing Communications Tradition of separation communication tools Influence of specialized outside suppliers Managerial parochialism Skeptics who consider IMC to be a fad Using multiple communication tools in conjunction with one another can produce greater results (synergistic effects) than tools used individually and in an uncoordinated fashion.
7 Basic IMC Issues Marketing Communicators Challange How to enhance brand equity How to affect customer behavior How to justify marcom investments How to demonstrate financial accountability
8 IMC Keys 1. Start with the customer or prospect. 2. Use any form of relevant contact or touch point. 3. Speak with a single voice. 4. Build relationships. 5. Affect behavior.
9 Coordinated Marketing Mix Elements Build Image
10 The Marketing Communications Decision-Making Process Source: Shimp (2010)
11 A Firm-Based Perspective on Brand Equity The degree to which consumers favorably perceive the brand s features and benefits as compared to competitive brands and how strongly these views are held in memory Brand Equity Higher market share Increased brand loyalty Premium pricing Revenue premiums
12 Children s Taste Preferences (In percents) Source: Shimp (2010)
13 A Customer-Based Brand Equity Framework Source: Shimp (2010), adapted from Kevin Lane Keller, Conceptualizing, Measuring, and Managing Customer-Based Brand Equity, Journal of Marketing 57 (January 1993), 7.
14 The Brand Awareness Pyramid Source: Shimp (2010), adapted from David A. Aaker, Managing Brand Equity (New York: Free Press, 1991), 62.
15 Enhancing Brand Ways of Enhancing Brand Equity Equity Speak-for-Itself Message-Driven Leveraging
16 Measuring Marcom Effectiveness, Why? Demands for greater accountability on the marketing function To become better at marcom activities What to Measure? Change in brand awareness Improvement in attitudes toward the brand Increased purchase intentions Larger sales volume
17 Measuring Marcom Effectiveness Marketing-Mix Modeling
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19 IMC: Facilitate successful new product introductions, Reduce the product failure rate (potentially 35-45%)
20 Model of the Brand Adoption Process
21 Brand Characteristics That Facilitate Adoption Relative Advantage Complexity Compatibility Observability Trialability
22
23 Brand Name Brand Naming company s unique designation or trademark, which distinguishes its offering from other product category entries. Speed of Brand Awareness Overall Brand Image Brand Equity Formation
24 Brand Name Fundamentals Distinguishable from competitors Compatible with desired image Facilitates consumer learning Memorable and pronounceable Suitable for global use
25 Exceptions to Naming Facilitating Rules Consumer Learning of Brand Associations Some brands become successful in spite of their names First brand in a new product category can be successful regardless of its name if it offers distinct advantages. Empty vessels - names can be intentionally meaningless at inception
26 Logos
27 The Role of Logos graphic design element related to a brand name Good Logo Designs Are natural neither too simple nor too complex Are readily recognized Convey same meaning to all target market members Evoke positive feelings Are suited for periodic updating
28 Packaging Contain and protect product Draw attention to brand Break through competitive clutter Package Justify price and value Signify features and benefits Motivate brand choice Convey emotionality
29 Packaging Structure Packaging Structure Color Design Shape Functional, Symbolic, and Experiential Components of Packaging Structure Size Physical Materials Information Labeling
30 Evaluating the Package: The VIEW Model Visibility Information Emotional Appeal Workability Does package: Attract attention at the point of purchase Stand out on the shelf yet not to detract brand s image Require special seasonal and holiday packaging Does package: Provide usage instructions, claimed benefits, slogans, and supplementary information Stimulate trial purchases, encourage repeat purchases, and provide correct usage instruction Does package: Evoke the desired feeling or mood Properly blend informational and emotional content to simultaneously appeal to consumers Does package: Protect the product contents against breakage and pilferage Facilitate easy storage and handling Simplify consumer s task in accessing and using the product Appear to be environmentally friendly
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