Advertising Management

Opening Lecture

Lecture Objectives

• Explain the concept of brand

• Identify Marketing Communication tools used to develop brands

• Describe the importance of brand relationships and brand equity

• Discuss why branding is so important

What is a brand?

• Principles of Marketing definition– “a name, term, sign, symbol, or design…

intended to identify the goods or services of a seller…and to differentiate them from those of competitors.”

But it’s more than that

• A promise• Beliefs in your target’s mind about your

product or service• Driven by what your company says and

does• A relationship

Duncan on Brands

A perception resulting from experiences with, and information about, a company or line of products”

Why is branding so important?

• For the Consumer– Simplifies their decision making and reduces

risk– Provides benefits above and beyond the

product or service itself

• For the Producer– Provides a process to grow share, revenue,

and profit over the long-term– Provides a way to more easily make

business and creative decisions

Why is branding so important?

• For the Distributor/Retailer– Drives inventory turns and the profit per

transaction– Can help them position their own business

to reach a certain target audience

Proof in the Pricing

• Messaging and packaging so people are willing to pay more for similar core products or services– Toothpaste (Dove vs. Safeguard)– Coffee (Starbucks vs. Nescafe)

Characteristics of strong brands

• Based on deep consumer and market understanding

• Have a distinct, relevant, and credible position

Positioning is what we do to the mind (convince the market of the differences) – Physical (product itself or channel, personnel)– Psychological (image)

More Characteristics of Strong Brands

• Have a distinct brand personality

• Have engaging and compelling messaging consistently communicated

• Provide excellent delivery of promised benefits

• Maintain their relevance

Levels of Relationship Intensity

Aware of brand

Identify with brand

Feel connected with brand

Belong to brand community

Brand advocates

0% 100%

High intensity

(some are cult brands)

Marketing Communication

• Collective term for all the various types of planned messages used to build a brand-advertising, public relations, sales promotion, direct marketing, personal selling, packaging, events and sponsorships, and customer service.

Functional Areas of IMC

Customer Service

Customer Service

Events & Sponsorships

Events & Sponsorships

Publicity (Public Relations)

Publicity (Public Relations)

Sales Promotion

Sales Promotion

AdvertisingAdvertising Direct Marketing

Direct Marketing

PackagingPackaging Personal Selling

Personal Selling

Events & Sponsorships

Events & Sponsorships

Publicity (Public Relations)

Publicity (Public Relations)

Sales Promotion

Sales Promotion

AdvertisingAdvertising Direct Marketing

Direct Marketing

PackagingPackaging Personal Selling

Personal Selling

FunctionsFunctions

Functional Areas of MC

• Advertising- non-personal, paid announcements by an identified sponsor.

• Direct Marketing-an interactive, database-driven marketing communication process that uses a range of media to motivate a response from customers and prospects.

Functional Areas…Cont’d

• Public Relations- communication activities that help “an organization and its publics adapt mutually with each other”.

• Sales Promotion- short-term, added-value offer designed to motivate an immediate response.

Functional Areas…Cont’d

• Personal Selling- interpersonal communication in which a salesperson uncovers and satisfies the needs of a customer to the mutual benefit of both.

• Packaging- container and conveyor of information

Functional Areas…Cont’d

• Events- highly targeted brand-associated activities designed to actively engage customers and prospects and generate publicity.

• Sponsorships- financial support of an organization, person or activity in exchange for brand publicity and association.

Functional Areas…Cont’d

• Customer Service- a company’s attitude and behavior during interactions with customers.

Using IMC to Build Brands

• Planned (and unplanned) messages

• Formed by all customer “touch points”– Internal– External – Experience with the product

Integrated Marketing Communication (IMC)

• Process for planning, executing and monitoring the brand messages that create customer relationships.

• An ongoing process

Integration

• Combining separate parts to a unified whole

Synergy

• Outcome of integration which is the interaction of individual parts in a way that makes the integrated whole greater than the sum of its parts.

• 2+2=5

IMCBRAND MESSAGES

Communicated by advertising, sales promotion, direct

response, packaging, etc.

ONE AND TWO-WAY MEDIARadio, Print, TV, events,

sponsorships, mail, phone, internet, packaging. Etc.

CUSTOMERS’ BRAND EXPERIENCE

Evaluating and Planning

WEAK BRAND RELATIONSHIPS

Lose customers, sales and brand equity

STRONG BRAND RELATIONSHIPS

Increased sales, customers and brand equity

IMC Media

• The means by which the various types of marketing communication messages are sent and received

Traditional IMC Media

MailMail

NewspapersNewspapers

MagazinesMagazines

TelevisionTelevision RadioRadio

InternetInternet OutdoorOutdoor

MailMail

InternetInternet OutdoorOutdoor

MagazinesMagazines

NewspapersNewspapers

RadioRadioTelevisionTelevision

TelephoneTelephone

MediaMedia

What is the role of IMC in the marketing process?

Marketing & Promotions Process Model

The End

Thanks