Integrated Marketing Communications Fifth Canadian Edition Chapter 1 Integrated Marketing Communications: An Overview Copyright © 2018 Pearson Canada Inc. Learning Objectives 1. Appreciate role of integrated marketing communications (IMC) planning in business today. 2. Identify the components of the IMC mix. 3. Identify the conditions that have led to the emergence of IMC. 4. Identify basic ethical issues confronting IMC practices. 5. Describe the role laws and regulations play in guiding IMC in Canada. Copyright © 2018 Pearson Canada Inc. Integrated Marketing Communications • Organizations need complete solutions to communications. • Today’s environments are rapidly changing due to the strong influence of technology. • Consumption of media is changing. • Must deliver same message through a variety of media to have synergistic impact on the target market. Copyright © 2018 Pearson Canada Inc. The Integrated Marketing Communications Mix IMC Coordination of all forms of marketing communications into a unified program that maximizes impact on intended target audience. Copyright © 2018 Pearson Canada Inc. Copyright © 2018 Pearson Canada Inc. Advertising • Advertising – A paid, persuasive form of marketing communications designed to stimulate a positive response from a defined target market. ▪ Product Advertising ▪ Promotional Advertising Copyright © 2018 Pearson Canada Inc. Direct Response Communications • Direct Response Communications – Involves the delivery of a message to a target audience of one. ▪ Direct Mail ▪ Direct Response Television (DRTV) ▪ Telemarketing ▪ Mobile Communications Copyright © 2018 Pearson Canada Inc. Digital (Interactive) Communications • Digital (Interactive) Communications – Using electronic devices to reach target markets. ▪ Internet ▪ Smartphone – Customer Relationship Management (CRM) Copyright © 2018 Pearson Canada Inc. Sales Promotion • Sales Promotion – Activities that provide special incentives to stimulate an immediate reaction from consumers and distributors. Copyright © 2018 Pearson Canada Inc. Public Relations • Public Relations – Communications primarily directed toward gaining public understanding and acceptance. ▪ Placing messages in media requiring no payment ▪ Offers legitimacy ▪ Crisis management Copyright © 2018 Pearson Canada Inc. Experiential Marketing • Experiential Marketing – Blend of marketing communications disciplines that engage people with a brand in a more personal way. – Event marketing ▪ planning, organizing, and marketing an event for a company or a brand – Sponsorship ▪ providing money to an event in return for specified marketing privileges Copyright © 2018 Pearson Canada Inc. Sports Marketing Sponsorship – National Bank Copyright © 2018 Pearson Canada Inc. Personal Selling • Personal Selling – Involves the delivery of a personalized message from a seller to a buyer. ▪ Presents features, attributes, and benefits of a product or service ▪ Offers a personal component – Handle consumer inquiries effectively – Secure product distribution and availability Copyright © 2018 Pearson Canada Inc. Group Exercise: Factors Encouraging IMC • In Groups of 4-6 investigate the factors that encourage IMC • Pick a brand and present how the brand uses IMC to effectively advertise and communicate to the target audience. • Why does this media tactics work for the target audience? Present your case Copyright © 2018 Pearson Canada Inc. Factors Encouraging Integrated Marketing Communications • Shift in consumer media habits • Social media penetration and popularity • Mobile Communications: The Next Big Thing • Database management techniques and CRM • Demand for efficiency and accountability Copyright © 2018 Pearson Canada Inc. Ethical Issues in IMC • Privacy Issues in an Online World • Sex in Advertising • Dangerous or Disturbing Advertising • Misleading Advertising • Exaggerated Green Claims • Targeting Children • Cultural Diversity Copyright © 2018 Pearson Canada Inc. Example of Sexual Imagery Copyright © 2018 Pearson Canada Inc. Laws and Regulations Governing Marketing Communications • Advertising Standards Canada (ASC) – Industry body committed to creating and maintaining community confidence in advertising. https://adstandards.ca/ • Competition Bureau – Responsible for the administration and enforcement of the Competition Act which governs business conduct and marketing practices in Canada. https://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/home Copyright © 2018 Pearson Canada Inc. Ad Standards Copyright © 2018 Pearson Canada Inc. Chapter Review 1. IMC strategies are needed to resolve marketing problems due to rapid change in business. 2. IMC mix is comprised of seven unique but complementary components. 3. Several key issues and trends have led to emergence of IMC. 4. IMC practitioners must contend with ethical issues when devising message strategies. 5. Advertising Standards Canada and Competition Bureau regulate and control IMC industry. Copyright © 2018 Pearson Canada Inc. Integrated Marketing Communications Fifth Canadian Edition Chapter 2 Strategic Planning Principles Copyright © 2018 Pearson Canada Inc. Learning Objectives 1. Identify essential external trends and conditions that influence organizational planning. 2. Describe the steps in the strategic planning process. 3. Identify the distinctions and relationships among the various types of plans. 4. Characterize the essential elements of a corporate plan. 5. Outline the structure and content of a marketing plan. 6. Outline the structure and content of a marketing communications plan. 7. Show how integrated marketing planning provides solutions to marketing problems. Copyright © 2018 Pearson Canada Inc. Strategic Planning • Strategic planning includes three common variables: Objectives Statements of what is to be accomplished Strategies Statements that outline how objectives will be achieved Tactics (Execution) Action-oriented details Copyright © 2018 Pearson Canada Inc. External Influences Affect All Levels of Planning Copyright © 2018 Pearson Canada Inc. Economic Influences • State of economy has direct impact on business plans. • Determined by growth rates in: – Gross domestic product (GDP) – Inflation rates – Employment levels – Canadian dollar valuation – Consumer income distribution • Economies go through cycles – Recession Depression Recovery Prosperity • Sudden market changes can also affect the economy. Copyright © 2018 Pearson Canada Inc. Competitor Influences • Most Canadian markets are either: – Oligopoly – Monopolistically Competitive • Forms of competition: – Direct Indirect Copyright © 2018 Pearson Canada Inc. Demographic & Social Influences Key Canadian Trends Demographic Influences: Social Influences: • Aging population • Changing Canadian lifestyles • Trend towards urbanization – Emphasis on quality of life • Changing household formations – Concern for health and welfare • Ethnic diversity • Spending power and wealth • Concern for the natural environment Copyright © 2018 Pearson Canada Inc. Example – Healthier Living Trends Copyright © 2018 Pearson Canada Inc. Technology Influences • Several factors combine to make an impact on how we gather information on products: – Availability of information through Internet – Obsession with electronic devices: smartphones, tablets • Rise of Consumer-Generated Content – Facebook, Twitter, Instagram, YouTube • Marketers are moving towards campaign strategies dealing with selective reach and target engagement. Copyright © 2018 Pearson Canada Inc. Legal & Regulatory Influences Most laws and regulations are overseen by government. Industry also follows self-regulating codes. Government Regulation: Regulatory Codes: • Competition Act • ASC: Canadian Code of Advertising Standards • Privacy Act • Personal Information Protection and Electronic Documents Act (PIPEDA) • CMA: Code of Ethics and Standards of Practice. Copyright © 2018 Pearson Canada Inc. Strategic Planning Process Integration of a strategic plan will help achieve short-term and long-term objectives. Copyright © 2018 Pearson Canada Inc. The Corporate Plan • A strategic plan formulated at the executive level to guide the development of functional plans. • Includes: – A Mission Statement ▪ Vision Statement – Corporate Objectives – Corporate Strategies Copyright © 2018 Pearson Canada Inc. Mission and Vision Statements • A mission statement consists of an organization’s purpose and the operating philosophy the organization follows. – A good statement is customer- and marketing-oriented. • A vision statement is what an organization would like to be. Copyright © 2018 Pearson Canada Inc. Corporate Objectives • Statements of a company’s overall goals; used to evaluate the (in)effectiveness of a company’s strategic plan. • Financially based and can be either quantitative or qualitative in nature. • Examples include: – Sales revenues, market share, return on investment, and social responsibility Copyright © 2018 Pearson Canada Inc. Corporate Strategic Factors • Several factors are considered when determining a corporate strategy: – Marketing Strength – Degree of Competition – Financial Resources – Research and Development Capabilities – Managerial Commitment Copyright © 2018 Pearson Canada Inc. Corporate Strategies • Strategic Direction requires: – Strategic Alternatives ▪ Divestment ▪ Acquisition ▪ Penetration ▪ New Product Development ▪ Strategic Alliances – $ for Marketing and Other Operations Copyright © 2018 Pearson Canada Inc. Marketing Planning Overview Analyzing Market Opportunities Planning Marketing Strategies Implementing Marketing Initiatives Controlling Marketing Programs Copyright © 2018 Pearson Canada Inc. Marketing Planning Focus • Market plans are short term (one year), specific – usually involving one product and action-oriented. • Include a contingency plan. • Concentrate on the needs of the target market based on segmentation variables. – Demographic, Psychographic, and Geographic characteristics – Behaviour response Copyright © 2018 Pearson Canada Inc. Marketing Planning: Format • There is no one standard for marketing plans. • Vary from one organization to the other in length, detail, and content. • Modified to suit the needs of each organization. • Usually divided into two sections: – Marketing background – The marketing plan itself Copyright © 2018 Pearson Canada Inc. Market Background Components Market Background includes: • SWOT Analysis • External Influences • Market Analysis • Target Market Analysis • Product (Brand) Analysis • Competitor Analysis Copyright © 2018 Pearson Canada Inc. Market Background: SWOT Strengths & Weaknesses Opportunities & Threats • Internal • External • Controllable • Uncontrollable Copyright © 2018 Pearson Canada Inc. Market Background (1 of 3) External Influences: • Economic Trends • Social and Demographic Trends • Technology Trends • Regulatory Trends Copyright © 2018 Pearson Canada Inc. Market Background (2 of 3) Market Analysis Target Market Analysis • Market Size and Growth • Consumer Data • Regional Markets • Consumer Behaviour • Market Segment Analysis • Seasonal Analysis Copyright © 2018 Pearson Canada Inc. Market Background (3 of 3) Product (Brand) Analysis Competitor Analysis • Sales Volume Trends • Market Share Trends • Market Share Trends • Marketing Strategy Assessment • Distribution • Marketing Communications • New Product Activity Copyright © 2018 Pearson Canada Inc. Marketing Plan Components The Marketing Plan includes: • Positioning Strategy • Target Market Profile • Marketing Objectives • Marketing Strategies • Marketing Execution (Tactics) • Budget and Financial Summary • Evaluation and Control Copyright © 2018 Pearson Canada Inc. Marketing Plan: Positioning Strategy • Positioning – Selling concept that motivates purchase, or the image that marketers desire a brand to have in the mind of consumers. • Positioning Strategy Statement – Has a direct impact on the nature of the message delivered to the consumer. Copyright © 2018 Pearson Canada Inc. Marketing Plan: Target Market Profile (1 of 2) Defined by: • Demographic Profile • Psychographic Profile • Geographic Profile • Behaviour Response Copyright © 2018 Pearson Canada Inc. Marketing Plan: Target Market Profile (2 of 2) Defined by: • Demographic Profile • Psychographic Profile • Geographic Profile • Behaviour Response Copyright © 2018 Pearson Canada Inc. Marketing Plan: Marketing Objectives • Statements that identify what a product will accomplish in a one-year period • Usually expressed in terms of sales, market share, and profit • Quantitative and qualitative Copyright © 2018 Pearson Canada Inc. Marketing Plan: Marketing Strategies • Master plan for achieving the objectives. • Role and contribution of each component of the marketing mix are identified. Copyright © 2018 Pearson Canada Inc. Marketing Plan: Marketing Execution (Tactics) • The tactics outlined in the plan are program details drawn directly from the marketing strategy to identify: – What programs will be implemented – How much they will cost – What the timing will be – Who will be responsible for the implementation Copyright © 2018 Pearson Canada Inc. Marketing Plan: Budget and Financial Summary • Shows financial implications of activities being undertaken • Illustrates how money will be spent and how profitable the investment will be • Budgeting methods include: – Percentage of Sales – Fixed Sum Unit – Industry Average – Advertising Share/Market Share – Task (Objective) Copyright © 2018 Pearson Canada Inc. Marketing Plan: Evaluation and Control • Evaluation of activities is essential to monitor if changes are necessary. • Marketing control measures and evaluates the results of marketing strategies and plans and taking corrective action to ensure marketing objectives are achieved. Copyright © 2018 Pearson Canada Inc. Marketing Communications Planning • External agents are often responsible for preparing plans. • Contribution of each communications component must be determined. • Components must be integrated to present a unified message. Copyright © 2018 Pearson Canada Inc. Marketing Communications Plan Model Copyright © 2018 Pearson Canada Inc. Marketing Communications Objectives • Build awareness, interest and trial purchase • Change consumer perceptions • Differentiate product • Engage consumers • Offer incentives • Create goodwill • Motivate distributors • Attract new targets Copyright © 2018 Pearson Canada Inc. Marketing Communications Strategies • Provides a basic outline of how various components of the mix will be used and their priority. • Depending on the marketing communication objectives, not all components are used. • Strategy identifies budget allocated to various activities. Copyright © 2018 Pearson Canada Inc. Measuring & Evaluating Marketing Communications • Essential to monitor all programs to distinguish effective and ineffective activities. • Each element should be accountable for what it can accomplish. Copyright © 2018 Pearson Canada Inc. Chapter Review 1. What are the external trends and conditions that should be considered when beginning a new planning cycle? 2. What are the key components of a corporate plan? What guidance does it provide to marketing and marketing communications? 3. Identify and explain the four variables for describing a target market. 4. What role does a positioning strategy statement play in developing a marketing strategy? 5. What are the differences between marketing strategy and execution? 6. What is the relationship between various components of an IMC plan? Copyright © 2018 Pearson Canada Inc. Integrated Marketing Communications Fifth Canadian Edition Chapter 3 Branding Strategy Copyright © 2018 Pearson Canada Inc. Learning Objectives 1. Describe the concept of branding and the role it plays in marketing communications & other business-building programs. 2. Identify the various components of a brand. 3. Describe the benefits of branding for organizations & consumers. 4. Characterize the various stages of brand loyalty. 5. Describe the role and importance of brand positioning and its relationship to marketing communications plans. 6. Explain various brand positioning strategies commonly used in marketing communications. 7. Describe the role and influence of packaging and product design in the brand-building process. Copyright © 2018 Pearson Canada Inc. What is Brand? Copyright © 2018 Pearson Canada Inc. Copyright © 2018 Pearson Canada Inc. Copyright © 2018 Pearson Canada Inc. Copyright © 2018 Pearson Canada Inc. Brand Strategy and Management What is a Brand? • A brand is the image which stands behind the name, symbol, icon, design, or combination of these, that identifies the maker or marketer of a product. • Branding can add value to a product 9-7 Copyright © 2017 Pearson Canada Inc. Brand Ain’t the Logo • A brand is ALL that goes into delivering a unique experience. Promotions Advertising Products Communications Copyright © 2018 Pearson Canada Inc. Brand Ain’t the Logo • Everything and anything is the brand • Delivery consistency Promotions Advertising Products Communications Distribution Channels Culture Research Processes Values Systems Copyright © 2018 Pearson Canada Inc. Defining the Brand • Brand • Brand Name – the sum of all tangible and • Brand Logo (symbol) intangible characteristics that • Trademark make a unique offer to customers. Copyright © 2018 Pearson Canada Inc. How Apple and Nike have branded your https://www.youtube.com/watch?v=4eIDBV brain 4Mpek Copyright © 2018 Pearson Canada Inc. Brand Strategy and Management Brands • More than names or symbols, brands: ➢ Have status and value ➢ Have personality ➢ Involve emotions ➢ Signify quality ➢ Provide legal protection 9-12 Copyright © 2017 Pearson Canada Inc. Brand Strategy and Management Trademarks • Trademarks can be: ➢ Names, symbols, characters, shapes ➢ Has monetary value ➢ Indicated with a superscript TM 9-13 Copyright © 2017 Pearson Canada Inc. Brand Strategy and Management Brand Meaning • Branding expert Al Reis says that the key to communicating brand meaning is to get consumers to associate your brand with just one word, so that your brand “owns” that word in terms of brand positioning. Company Word Volvo Safety Coors Light Cold Red Bull Extreme 9-14 Copyright © 2017 Pearson Canada Inc. Brand Strategy and Management Brand Relationships • Brands represent consumers’ perceptions and feelings about a product and its performance • A key factor in consumers’ relationships with brands is what they believe about them. 9-15 Copyright © 2017 Pearson Canada Inc. Brand Strategy and Management People as Brands People Are Also Brands • Celebrities and politicians aim to achieve brand power in their name • …. but personal brands (like corporate brands) can be damaged as quickly as they were created 9-16 Copyright © 2017 Pearson Canada Inc. Brand Image and Reputation • Provide customers with assurance of quality and express a set of values. • Good reputation is the result of a consistent approach to marketing and marketing communication efforts. Copyright © 2018 Pearson Canada Inc. Canada’s Brand Leaders by Reputation Figure 3.3 Canada’s Brand Leaders by Reputation 2016 The net score for each brand is based on good and bad opinions expressed about the brands by respondents in the survey. Rank 1 2 3 4 5 6 7 8 9 10 Company/Brand Google Heinz Shoppers Drug Mart Canadian Tire Kellogg Dollarama Samsung Kraft Campbell Tim Hortons % Good Opinion 91 84 83 85 83 81 80 83 80 83 % Bad Opinion 2 5 5 8 7 6 5 9 7 11 Net Score 89 79 78 77 76 75 75 74 73 72 Source: Based on the 2014 Leger Corporate Reputation Study, www.marketingmag.ca. Copyright © 2018 Pearson Canada Inc. Brand Loyalty • Brand Loyalty – Degree of consumer attachment to a particular brand. Copyright © 2018 Pearson Canada Inc. Brand Equity • Brand Equity – The value of a brand to its owners. – Influenced by: ▪ Awareness ▪ Degree of customer loyalty ▪ Perceived quality Copyright © 2018 Pearson Canada Inc. Benefits of Branding: Consumer Suggests Certain Level of Quality Psychological Rewards Distinguishes Competitive Offerings Copyright © 2018 Pearson Canada Inc. Benefits of Branding: Organization Unique Selling Point (USP) Creation and Development of Image Repeat Purchases and Loyalty Copyright © 2018 Pearson Canada Inc. Building the Brand Copyright © 2018 Pearson Canada Inc. Brand Core Values • Core Values – The primary attributes and benefits a brand delivers. ▪ Attribute: a descriptive feature ▪ Benefit: value consumers attach to a brand attribute Copyright © 2018 Pearson Canada Inc. Brand Positioning Concepts • Brand Positioning – The selling concept that motivates purchase, or the image that marketers desire a brand to have in the minds of consumers. – Strategy is influenced by brand’s core values, attributes, and benefits. – A good positioning strategy clearly differentiates a brand from all competing brands. Copyright © 2018 Pearson Canada Inc. Positioning Strategies Product Differentiation * Brand Leadership Head-on (Comparative) Innovation Price (Value) * Lifestyle (Image) Repositioning Copyright © 2018 Pearson Canada Inc. Product Differentiation Advertising Copyright © 2018 Pearson Canada Inc. Price Positioning Advertising Copyright © 2018 Pearson Canada Inc. Planning and Implementing • Building brand loyalty and firmly positioning a brand requires effective marketing programs. – These activities produce strong, favourable associations with a brand in a consumer's memory. • An information transfer process that considers two essential factors: – Decisions to be made concerning employment of various brand elements. – Development of marketing strategies to communicate brand values and positioning. Copyright © 2018 Pearson Canada Inc. Packaging and Brand Building • A good package design helps build a brand. – The “look” must be instilled in the customer’s mind. – Differentiates a brand. – Helps maintain brand identity across product lines. – Growing influence on purchase decisions. – Important consumer touch-point creating familiarity, trust, and consumer loyalty. Copyright © 2018 Pearson Canada Inc. Packaging a Consistent Image Copyright © 2018 Pearson Canada Inc. Roles of Packaging Protect the Product Market the Product Provide Convenience Be Environmentally Friendly Copyright © 2018 Pearson Canada Inc. Branding by Design • Not everything is sold in a package. – The look and style can be key influencer. • Brand design integrates the brand experience into the product or service. – Creative and innovative approaches to design creates a unique brand experience. Copyright © 2018 Pearson Canada Inc. Branding by Design – KitchenAid Copyright © 2018 Pearson Canada Inc. Chapter Review 1. Identify and briefly explain the key components of a brand. 2. Identify two benefits of branding for both the consumer and organizations. 3. Distinguish between brand loyalty and brand equity. 4. Define core brand values and positioning. 5. Differentiate between, and provide examples of, the various positioning strategies. 6. Explain the role packaging plays in the marketing of a brand. 7. Describe the role and influence product design has on prospective buyers. Copyright © 2018 Pearson Canada Inc.
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