Integrating Marketing Communications to

Build Brand Equity

 Outline
• Marketing Communication
• Hierarchy of Effects Model
 Marketing Communication
• Marketing communications are the means by
which firms attempt to inform, persuade, and
remind consumers—directly or indirectly—
about the brands they sell.
 Marketing Communication

Informative advertising aims to create brand awareness

and knowledge of new products or new features of
existing products
 Marketing Communication

Persuasive advertising aims to create liking, preference,

conviction, and purchase of a product or service. Some
persuasive advertising uses comparative advertising,
which makes an explicit comparison of the attributes of
two or more brands.
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 Marketing Communication

Reminder advertising aims to stimulate repeat purchase

of products and services.
 Marketing Communication

Reinforcement advertising aims to convince current

purchasers that they made the right choice.
 The New Media Environment
• Traditional advertising media such as TV,
radio, magazines, and newspapers seem to be
losing their grip on consumers.
 Hierarchy of Effects Model
The Hierarchy-of-Effects theory is a model of how
advertising influences a consumer's decision to purchase
or not purchase a product or service. The hierarchy
represents the progression of learning and decision-
making consumer experiences as a result of advertising.
 Information Processing Model of
Communications
A person to be persuaded by any form of
communication, the following six steps must
occur:
1. Exposure
2. Attention
3. Comprehension
4. Yielding
5. Intentions
6. Behavior
 Information Processing Model of
Communications
1. Exposure: A person must see or hear
the communication.
2. Attention: A person must notice the communication.
3.Comprehension: A person must understand the intended
message or arguments of the communication.
4.Yielding: A person must respond favorably to
the intended message or arguments of the communication.
5.Intentions: 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.
 The Ideal Ad Campaign
1. The right consumer is exposed to the right message at the right
place and at the right time.
2. The creative strategy for the advertising causes the consumer to
notice and attend to the ad but does not distract from the
intended message.
3. The ad properly reflects the consumer’s level of understanding
about the product and the brand.
4. The ad correctly positions the brand in terms of desirable
and deliverable points-of-difference and points-of-parity.
5. The ad motivates consumers to consider purchase of the
brand.
6. The ad creates strong brand associations to all these
stored communication effects so that they can have an
effect when consumers are considering making a
purchase.
 Four Major Marketing Communication
Options
(1) Advertising and promotion

(2) Interactive marketing

(3) Events and experiences

(4) Mobile marketing

 Advertising
• A powerful means of creating strong,
favorable, and unique brand associations and
eliciting positive judgments and feelings
• Controversial because its specific effects are
often difficult to quantify and predict
• Nevertheless, a number of studies using very
different approaches have shown the
potential power of advertising on brand sales.
 Category of Advertising
• Television
• Radio
• Print
• Direct response
• Interactive: websites, online ads
• Mobile marketing
• Place advertising:
– Billboards; movies, airlines, and lounges; product
placement; and point-of-purchase advertising
 Promotions
• Short-term incentives to encourage trial or usage of a
product or service
• Marketers can target sales promotions at either the
trade or end consumers
• Consumer promotions
– Consumer promotions are designed to change the
choices,
quantity, or timing of consumers’ product purchases.
• Trade promotions
– Trade promotions are often financial incentives or
discounts given to retailers, distributors, and other
members of the trade to stock, display, and in other ways
facilitate the sale of a product.
 Event Marketing

• Event marketing public sponsorship

is of
events or related to sports,
activities art,
entertainment, or social causes.
• Event provides different
sponsorship a
relevant moment in consumers’ lives, kind
of communication
sponsors optionand
can broaden for marketers.their
By
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deepen and
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personally
 Integrated Marketing Communications
(IMC)
• The “voice” of the brand
• A means by which it can establish a dialogue
and build relationships with consumers
• Allow marketers to inform, persuade, provide
incentives, and remind consumers directly or
indirectly
• Can contribute to brand equity by establishing
the brand in memory and linking strong,
favorable, and unique associations to it
 Developing IMC Programs
• Mixing communication options
– Evaluate all possible communication options
available to create knowledge structures according
to effectiveness criteria as well as cost
considerations.
– Different communication options have different
strengths and can accomplish different objectives.
– Determine the optimal mix
 Criteria for IMC Programs

1. Coverage

2. Contribution

3. Commonality

4. Complementarity

5. Conformability

6. Cost
 Evaluating IMC Programs
• Coverage: What proportion of the target
audience is reached by each communication
option employed? How much overlap exists
among options?
 Evaluating IMC Programs (cont.)
• Contribution: The collective effect on brand equity in
terms of
– enhancing depth and breadth of awareness
– improving strength, favorability, and uniqueness of brand
associations
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• Commonality: The extent to which information
conveyed by different communication options share
meaning
 Evaluating IMC Programs (cont.)
• Complementarity: The extent to which different
associations and linkages are emphasized
across communication options
• Conformability: The extent to which
information contained in a communication
option works with different types of
consumers
• Different communications history
• Different market segments
 Evaluating IMC Programs (cont.)

Cost: Evaluations of marketing communications on all of

the preceding criteria must be weighed against their cost
to arrive at the most effective and efficient
communication program
 Marketing Communication Guidelines
• Be analytical: Use frameworks of consumer
behavior and managerial decision making to develop
well- reasoned communication programs
• Be curious: Fully understand consumers by using
all forms of research and always be thinking of how
you can create added value for consumers
• Be single-minded: Focus message on well-
defined target markets (less can be more)
• Be integrative: Reinforce your message
through consistency and cuing across all
communications
 Marketing Communication Guidelines
(Cont.)
• Be creative: State your message in a unique fashion;
use alternative promotions and media to create
favorable, strong, and unique brand associations
• Be observant: Monitor competition, customers,
channel members, and employees through tracking
studies
• Be realistic: Understand the complexities involved
in marketing communications
• Be patient: Take a long-term view of
communication effectiveness to build and manage
brand equity
 IMC Audience Communication Option Overlap

Communication Communication
Option A Option B

Communication Option C

Note: Circles represent the market segments rea6c1. h9ed by various communication options.
Shaded portions represent areas of overlap in communication options.