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Chapter 1
Integrated marketing communications
and brand equity enhancement
Learning objectives
After studying this chapter, you should be able to
understand and explain:
the nature of marketing communications

the foundations of integrated marketing communications

the marketing communication process

the concept of brand equity

the rationale of co-branding and world-class brands.


Understanding marketing
communications
To understand marketing communications, we should
examine the two elements that make up the concept.
1. Marketing
2. Communication
Marketing

Marketing is a mix of related activities that


transfers the idea of value to customers
through the process of exchange.
Communication

Communication is the process that conveys


thoughts and shared meaning between
individuals, or between organisations and
individuals.
Marketing communications
Facilitates exchanges by targeting a group of customers.
Positions the product away from competitors to offer
uniqueness.
Shares a common meaning with the target audience.
Marketing communication mix

Advertising

Marketing public Digital marketing


relations communications

Marketing
communication Point-of-purchase
Sponsorship
elements communications

Personal Direct marketing

Sales promotion
Integrated marketing
communications (IMC)
Synergy works to ensure
The concept relies on
that all marketing
delivering the marketing
communications are
message to all relevant
coordinated and
stakeholders.
consistent.

A process determines
the types of messages
and media channels that
will best reach the
chosen market segment.
Integrated marketing
communications (IMC)
A strategic process aimed at enhancing brand equity by:
providing a consistent message
targeting a group of consumers
creating unique mental associations
optimising long-term value of the brand.
Key features of IMC

1 Profile the identified target market

2 Use the relevant media channel

3 Achieve communication synergy, i.e. same brand message

4 Positively influence the target markets behaviour

5 Build customer relationships, e.g. loyalty programs


Traditional marketing versus IMC
A fundamental, strategic change from traditional marketing
communications, IMC includes:
exploring advertising channels outside the traditional
mass media outlets
a more focused communications method that better
targets selected segments
expectations from advertising agencies of greater
diversity of communication channels, while still creating a
consistent message
ensuring optimal ROI due to higher levels of
accountability
creating a culture of ethical behaviour.
IMC building blocks

IMC is a communication process involving the


planning, creation, integration and
implementation of diverse forms of marketing
communications that are delivered over time to a
brands targeted customers and prospects.
Brand is the key to marketing
communications
Most marketing communications occur at the brand level.

Brands can be an invaluable asset.


Successful brands can create barriers to entry for
competitors.
A brand helps differentiate products from competitors.
IMC can lead to higher levels of brand equity (four
fundamental decisions need to be addressed).
Fundamental marketing
communication decisions that
can enhance brand equity

Positioning Targeting

Setting
Budgeting
objectives
Positioning and targeting
A brands position is directly related to the target segment.
The position represents the brands meaning and shows
off its uniqueness.
Targeting offers a cost-effective approach to
communications.
Positioning and targeting encompass demographics,
values and lifestyles.
Setting objectives and budgeting
Communication decisions reflect the brands goals.

Some goals include:


introduction, building and defending a brand
developing awareness, recall and intention to buy the brand.

Communications decisions should remain cost-effective.


Fundamental marketing
communication decisions
Position and
target Guiding structure
(What to say and
who to reach)

Objective Budget
(What to (How much to
accomplish) spend)
Marketing communication
implementation decisions

Evaluate
program

Establish
the brand
Select media
outlets
Create the
messages
Select the mix of
communication
elements
Program evaluation
Measure campaign results against marketing objectives.

Measure communication outcomes:


Awareness
Comprehension
Attitude
Attention

Increasing accountability related to effectiveness.


ICM should positively affect
brand equity
Brand is a perception made of a singular element
or a combination of:
name
term
sign
symbol
design.
Brand equity goals
Increase market share
Increase brand loyalty
Set premium pricing strategies
Brand equity
Brand awareness Brand image
(familiarity with the brand) (strong and unique
brand associations)

Brand equity
(Two dimensions form brand knowledge.)
Two dimensions of brand
knowledge
Brand awareness Brand image

Does a brand name What types of


come to mind when associations (thoughts
consumers think and feelings) come to
about a particular consumers minds
product category? when deciding
How easily is the whether to purchase a
name evoked? particular brand?
Brand awareness
Move brands from a state of
unawareness to awareness TOMA

To recall
Brand recall
Ultimately move to
top-of-mind awareness
(TOMA) Brand recognition

Unaware of brand

Source: Reprinted with the permission of The Free Press, a Division of Simon & Schuster Adult Publishing Group, from Managing Brand
Equity: Capitalizing on the Value of a rand Name by David A. Aaker, Copyright 1991 by David A. Aaker. All rights reserved
Brand image
The associations (specific thoughts and feelings)
about a particular brand
Stored in memory

Recollections of experiences

Conceptualised as:
type
favourability
strength
uniqueness
Customer-based brand equity
framework
Enhancing brand equity
Favourable brands do not emerge automatically.

IMC should develop a favourable message and strong,


unique associations.
One example is Coca-Colas message of fun, freedom
and refreshment.
Leveraging brand meaning
Extending the brand
Various marketing techniques allow for the parent brand
to be extended:
Co-branding

Ingredient branding

Products carry multiple brand names.

Associations of each brand are likely to be shared.

The names of brands that make up a product can be promoted,


leading to more favourable and stronger associations.
World-class brands
Some brands have exceptional (global) presence.
This can be measured globally by researching:
awareness

perceived quality

intention.

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