Chapter Fourteen: Integrated Marketing Communications TOOLS FOR INSTRUCTORS 1. Learning Objectives 2. Annotated Chapter Outline with Instructor’s Notes/Teaching Tips 3. Answers to End of Chapter Learning Aids Concept Review Marketing Application Questions Net Savvy Chapter Case Study 4. Video Activities Learning Objectives 1. Outline the process that firms use to communicate with consumers 2. List the steps in planning an integrated marketing communication campaign 3. Describe what appeals advertisers use to get customers’ attention 4. Identify how firms determine which media to use 5. Summarize how firms measure integrated marketing communications success 6. Explain the six tools of integrated marketing communication campaigns Annotated Chapter Outline PowerPoint Slides Instructor’s Notes Chapter 14 will focus on Integrated Marketing Communications. These questions are the learning objectives guiding the chapter and will be explored in more detail in the following slides. Opening Vignette: I’m Lovin’ It The introduction of McDonald’s I’m Lovin’ It tagline created one advertising platform integrating marketing communications that could be used on a global basis. The campaign was used across a variety of media including television, direct mail, print advertising and online communications. This integration created a consistent global message and achieved cost savings. Per chapter introduction: the case study focuses on the success of McDonald’s & how they integrated worldwide marketing campaigns to facilitate this success. First launched in 2003, I’m Lovin’ It, has become the platform for the company’s worldwide integrated marketing communications. It is the company’s most successful & longest-running campaign. The campaign lifted the relevance of McDonald’s & revitalized its image, framing it as a modern & contemporary lifestyle brand. Being able to build on one platform helps McDonald’s deliver a consistent global message & achieve cost savings. Having a solid platform facilitates the introduction of unique components. McDonald’s latest campaign in Canada, Our Food”, answers questions from consumers related to the food items available. It has been widely successful & has won top honours in marketing awards. Although new campaigns will always be introduced, they are built on the same solid foundation. Integrated marketing communication (IMC) encompasses a variety of communication disciplines: general advertising, personal selling, sales promotions, public relations, direct marketing, and digital media. In combination, these disciplines can provide clarity, consistency, and maximum communicative impact. Each of the firm’s marketing communications elements represent part of a whole and offers a different means to connect with the target audience. The goal of IMC is to ensure all the various marketing mix elements work together to deliver a consistent message. Therefore, IMC takes the best of each communications medium and combines it to achieve the most effective marketing communications campaign possible. LO1: Communicating with Consumers More media choices make it more complex to reach target customers. The Communication Process • The sender must be clear to the intended audience. • The transmitter, such as a creative department, works with the sender to develop marketing communications. • Encoding converts the sender’s idea into a message. • The communication channel is the medium that carries the message. • The receiver reads, hears, or sees and processes the information, then decodes it by interpreting the sender’s message. • Noise refers to any interference that stems from competing messages, a lack of clarity, or a flaw in the medium and thus poses problems for all communication channels. • Feedback loops allow receivers to communicate with the sender and indicate whether the message was received and decoded properly. New media options fragment communications and make it more difficult and complex to reach the desired target audience. Ask students: What media do you use on a daily basis? This should lead to a discussion of new and alternative media. Marketers must understand how the communication process works and identify possible communication breakdowns. Group activity: Play the game of telephone. Start with a short message, verbally pass it around the room, and see what emerges. Sample phrase: I caught the train heading for Richmond but went to Richland instead. Answer D; see page 433 How Consumers Perceive Communication • Receivers decode messages differently, perhaps not in the way the sender intended. • Senders adjust messages according to the medium used and receivers’ traits. Marketers must remember that they do not have control over the decoding process, because each receiver decodes the message in his or her own way. Group activity: Identify advertisements or brand images that often result in different reactions from different consumers (e.g. ads for beer, cigarettes, and personal care products.) Why do these ads generate differing responses? For example, a cigarette ad for smokers may arouse smokers and induce the desire for a cigarette. For former smokers it may induce a sense of loss. For non-smokers it may not illicit any emotion. Ask students how this ad handles the challenges of decoding the fact that this is a breakfast food and not a lunch/dinner which is what SmartOnes is known for. LO2: Steps in Planning an IMC Campaign 1. Identify Target Audience • The success of any advertising program depends on how well the advertiser can identify its target audience. • Knowing the target audience enables the advertiser to develop an appropriate tone, proper media selections, and effective advertising elements. These steps will be covered in the following slides. Emphasize that although the textbook walks through these steps as they relate to an advertising campaign, the same steps can be used for all IMC communications. You might consider visiting the Marketing Magazine website http://www.marketingmag.ca/ to have students see current issues in advertising. Just as the target market is at the centre of all marketing mix decisions, the target audience is at the centre of all advertising-related decisions. 2. Set Objectives • Objectives derive from the overall goals of the marketing program. • The IMC plan refers to a subsection of the firm’s overall marketing plan that explicitly outlines 1. The objective of a campaign. 2. How the campaign can accomplish that objective 3. How the firm can measure the campaign’s success. Push and pull marketing strategies were discussed in the Distribution chapter but play a role in IMC too. • With a pull strategy, advertisers try to get consumers to pull the product into the supply chain by demanding it. • A push strategy increases demand by focusing on wholesalers, distributors, and salespeople to motivate them to highlight the product, rather than the products of competitors, and thus push the product onto consumers. The advertising plan must be specific to the identified target audience and include the strategic objectives and tactics to be used. Objectives can be short-term (generate inquiries, increase awareness, prompt trial) or long-term (increase sales, market share, loyalty) and may aim to inform, persuade or remind customers. (These objectives are discussed in more detail in Chapter 15.) Group activity: Develop an advertising plan for a product you like. What are the objectives of the campaign? How are you going to accomplish those objectives? How will you measure the campaign’s success? Consumers move through a readiness continuum. At each stage they need information to help them progress to the next stage. The objective of some IMC campaigns may primarily be to generate awareness (e.g. new technology such as BluRay) while other campaigns aim to have consumers buy a new product (e.g. Fitbit.) Each IMC tool can be used to move consumers through the buyer readiness continuum in different ways. For example, advertising may do a good job of creating awareness and even knowledge for a company that offers marketing consulting services but it may require a call from a sales person at that company to convince a small business, new start-up venture or entrepreneur to enlist the services of that consulting company. Answer C; see page 437 3. Determine the Budget • Firms must consider how IMC helps them meet their overall promotional objectives. • Expenditures vary over the course of the PLC. • The market and product nature influence the size of budgets. Setting the promotional budget is not easy, and advertising often is the largest single expenditure in the promotional budget. Thus, firms must carefully weigh the benefits of advertising versus other communications when deciding how much to allocate. Budgeting Methods 1. The objective-and-task method determines the budget required to undertake specific tasks and accomplish communication objectives. • Establish a set of communication objectives. • Determine which media best reach the target market. • Determine how much it will cost to run the number and types of communications necessary. Other methods use prior sales and communications activities to determine communication budgets. 2. Competitive parity: The firm’s share of communication expenses equals its share of the market. 3. Percentage of sales: The communication budget is a fixed percentage of forecasted sales. 4. Affordable budgeting: Marketers forecast sales and expenses, excluding communication, then reserve the difference between sales and expenses, plus desired profit, for the communication budget. Many IMC elements require significant expenditures, and firms are reluctant to invest in marketing communications without some guarantee of return. Ask students: What are the pros and cons of each method? Why would a company choose one method over another? Answer: Each method has advantages and disadvantages. See Exhibit 14.4 for more specifics. Answer C; see page 438 LO3: Appeals Used in IMC 4. Convey the Message A. Firms must determine the key message they want to communicate to the target audience. 1. A unique selling proposition (USP) defines the common theme or slogan in a campaign. 2. A USP must be meaningful and unique to be sustainable over time. B. Firms also must decide what appeal most effectively conveys their message. 1. Rational appeals offer factual information and strong arguments that encourage consumers to evaluate the brand favourably because of the key benefits it provides. 2. Emotional appeals satisfy consumers’ emotional desires rather than utilitarian needs by using emotions to create a bond between the consumer and the brand. The USP concept conveys core benefits to the target audience. The best USPs stand the test of time; consider examples such as those on the slide. Ask students: Do you believe these will stand the test of time? Nokia has been using “connecting people” for a long time; however Boost Mobile is using a popular slang phrase that is more likely to become dated and will probably have to be changed. Appeals depend on the target audience, chosen media, and type of product/service. Each appeal persuades in different ways. Whereas rational appeals are more cognitive and persuade using rational thought, emotional appeals persuade by triggering an emotional response rather than offering rational arguments. Ask students: How does the Coca Cola polar bear ad make you feel? Would it make you purchase Coke products? Informational appeals are more cognitive and persuade using rational thought. Emotional appeals persuade by triggering an emotional response rather than offering rational arguments. 5. LO4: Evaluate and Select Media • Media planning involves evaluating and selecting the media mix. • The media mix refers to the combination of media used and frequency of advertising through each medium. • A media buy means purchasing airtime or print pages and generally represents the largest expense in the advertising budget. • Mass media include national newspapers, magazines, radio, and television and therefore are ideal for reaching many anonymous audience members. • Niche media are more focused and generally used to reach narrower segments with unique demographic characteristics or interests. The ability of any one media outlet to reach a mass audience is declining due to the fragmentation of media and the proliferation of new media outlets. This trend represents a double-edged sword, because fragmenting media have also allowed for very fine targeting in media buys. Ask students: How would a firm use both mass and niche media in the same campaign? Have them consider give examples of how McDonald’s is using both mass and niche media. Often firms will use mass media to reach a broad audience with a product message and then choose specific niche media to customize that same message for various audiences. Choose the Right Medium. • Consumers use different media for different purposes. • Advertisers therefore must match their messages to consumers’ uses. Ask students: What media do you use and the circumstances in which you use them? For example, do you listen to the radio while driving in your car or watch television when you get home at night? Use these lists to discuss how the usage context of each medium affects how marketers design messages for them. For example most people listen to radio in their cars, often by themselves. Radio is considered a more personal medium, thus marketers often use ads that employ dialogues. This allows the person to place themselves in the conversation. This same technique cannot be used in print. Determine the Advertising Schedule. A continuous schedule runs throughout the year. • Suited for continually and steadily consumed products and services. • Required for products and services that need constant persuasive and/or reminder advertising. A flighting schedule implements advertising in spurts. • Heavy advertising followed by a period of no advertising. • This pattern generally works well for products whose demand fluctuates. A pulsing schedule combines continuous and flighting schedules by maintaining a base level of advertising but increasing intensity during certain periods. Every advertising campaign has a set duration, and during that period, marketers must determine how often and when to show the ads. Ask students: In a media buy when would each strategy be employed? For a frequently purchased good such as soda, most firms use a continuous strategy. A flighting schedule is often used for seasonal goods since they are only advertised during certain times of the year. A pulsing schedule is used by firms who have certain fluctuations in their demand and need to increase advertising during the periods of high or low demand. 6. Create Communications • Translate the message and appeal into words, pictures, colors, and/or music. • The type of medium determines the execution. • The campaign objectives also dictate the execution. • Although creativity can be important, advertisers must be careful not to let their creativity overshadow the message. Ads attempt to make maximum use of the medium’s ability to deliver the message. Discuss the benefits and limitations of various media. For example, television enables advertisers to combine imagery, movement, and music, whereas radio must rely solely on sound to deliver the message. Answer A; see page 444 LO5: Measuring IMC 7. Assess Impact Using Marketing Metrics • Before implementing a campaign, marketers pretest to ensure the various elements work in an integrated, appropriate fashion. • Tracking involves monitoring key indicators, such as daily or weekly sales volume, during the advertising span, to address any problems with the message or medium. • Post testing evaluates the campaign’s impact after its implementation. Group activity: Your group has been assigned to assess the impact of a campaign for a new perfume. The goal of the campaign is to increase awareness of the brand within a chosen target market by 20% over the campaign. What measures would you need to take to ensure that the campaign is remaining on track? Answer: You could design a tracking study that measures sales, website visits and sample requests generated over the course of the campaign. You also might measure awareness levels of the target market at various stages of the campaign. Results: Measuring IMC Success Firms must understand the outcomes they want to achieve before beginning a campaign. Whether long- or short-term, goals must be explicitly defined and measured. Measurements indicate whether each step has motivated consumers to move to the next step in the buying process. 1. Frequency indicates how often the audience is exposed to a communication within a specific period of time. 2. Reach refers to the percentage of the target population exposed to a marketing communication. 3. Gross rating points (GRP) equal reach multiplied by frequency. 4. Web-tracking software indicates how much time viewers spend on Web pages and the number of pages they view. 5. Click-through tracking measures how many times users click on banner advertising on Web sites. 6. Online couponing allows consumers to print coupons directly from a site and then redeem them in a store. 7. Online referring prompts consumers to fill out an interest or order form to receive a referral to an offline dealer that offers the product or service of interest. Group activity: Your group has been assigned to assess the impact of a campaign for a new perfume. The goal of the campaign is to increase awareness of the brand within a chosen target market by 20% over the campaign. What measures would you need to take to ensure that the campaign is remaining on track? Answer: You could design a tracking study that measures sales, website visits and sample requests generated over the course of the campaign. You also might measure awareness levels of the target market at various stages of the campaign. Ask students: How do firms determine whether their IMC strategy has worked? Answer: It depends on the IMC objective. If the objective is to create awareness for a new product, then the firm would measure increases in customer knowledge and awareness. If it were to generate sales, like an ad in the paper, then sales would be the objective measure. Every communication may be measured in terms of reach and frequency. Remind students that because of the lagged effect, marketers must not only expose the target audience to the message but also ensure that it has multiple opportunities to view it. This combined measure is GRP. Technology has introduced a host of new products for tracking online communications, as well as new communication formats. Group activity: List the types of information firms might gather from Web-tracking software, click-through tracking, online couponing, and online referrals. What can firms do with this information? Many firms use this type of information in direct mail or other campaigns, it can also be used to customize the website and to build a network of buyers that are interlinked. Answer: Firms can use this type of information to better understand the consumer decision process and, their purchase patterns. This information can used to redesign the website, develop loyalty programs, and direct mail/e-mail campaigns. Planning, Implementing and Evaluating IMC Programs – an Illustration of Google Advertising Ask students what Transit would want to measure if they were buying Google adwords for “sneaker store” and “NYC sneakers”. The metrics are on the following slide. He can see his total cost in column 3 and the sales from his adwords in column 4. The ROI in column 6 is higher for “sneaker store” due to its lower cost even though the sales were a bit lower. Ask students how else they can use the website for their IMC objectives? Gently lead them to the charts on the following slide. Ask students why this was important for Transit. They should comment that the click throughs tell us nothing about the attitude, only the actions of the consumer. LO6: Integrated Marketing Communication Tools For any communications campaign to succeed, companies must deliver the right message to the right audience through the right media. The goal of IMC is to ensure all the various marketing mix elements work together to deliver a consistent message. Therefore, IMC takes the best of each communications medium and combines it to achieve the most effective marketing communications campaign possible. There are six key IMC tools, most of which can be used in both online and offline environments. Each tool can range from being passive to very interactive. To get the right message to the right audience through the right tool and medium, an IMC planner must understand how each medium communicates and how to combine it with other media to generate the most impact. Advertising is a paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future. • It is extremely effective for creating awareness of a product or service and generating interest. • Since the 1990s, advertising’s share of total promotional dollars has fallen as budgets for other forms of promotion increase. Note: Chapter 15 covers advertising, the most visible element of IMC, in depth. Ask students: Think about how an advertisement has made you aware of or interested in a specific product. You can use students’ chosen advertisements as the basis for subsequent discussions. Ask students what “advertainment” might be? It is advertising that is focused on entertaining the end user. One of the earliest and best examples are Reebok’s Terry Tate ads. Personal Selling • Personal selling is the two-way flow of communication between a buyer and a seller, designed to influence the buyer’s purchase decision. • It can take place in various settings, including face-to-face, video teleconferencing, on the telephone, or over the internet. • The cost of communicating directly with potential customers is high compared with other forms of promotion, but it is the best and most efficient way to sell certain products and services. Note: Chapter 15 covers personal selling, the most costly form of IMC, in detail. Ask students: For what kind of purchases is personal selling most appropriate? Their answers should note that this form of IMC works best when the purchase is complicated, because the salesperson can customize the communication to meet the needs of that specific buyer and purchase situation, which other IMC elements cannot. Sales Promotions • Sales promotions are special incentives or excitement-building programs that encourage the purchase of a product or service. • They include coupons, rebates, contests, free samples, and point-of-purchase displays. Note: Chapter 15 covers sales promotion in detail. Remind students that sales promotions can be used in a wide variety of situations to stimulate demand among either end users or other channel members. Direct Marketing • Direct marketing includes sales and promotional techniques that deliver promotional materials to potential customers using a wide variety of tools. • The greatest increase in aggregate spending has been devoted to direct marketing. • Customer databases enable marketers to identify and track consumers over time and across purchase situations. As advertising has declined as a percentage of the total communications budget, direct marketing has increased. Ask students: What characteristics of direct marketing might explain this increased popularity? Direct marketing allows marketers to personalize their message. This enables marketers to communicate with an audience that is more likely to respond to their efforts. Note: While all forms of direct marketing are shown, the section that follows focuses on direct mail/email, catalogues, direct response television, and kiosks. Personal selling is addressed in Chapter 15. Direct Marketing Characteristics Direct marketing and plays an important role in selling both products and services. Stress the four defining characteristics that make it different from conventional retailing. Direct Mail/E-mail Ask students: How much mail do you receive that is not well-targeted? Most likely students will tell you it is “junk mail.” Use this point to stress the need to start with a good list. Catalogues Ask students: How many of you remember thumbing through the Sears Wish Book as children? Ask what types of products do they order from catalogues versus buying in a store? DRTV Most students will associate DRTV with longer infomercials such as those used to sell the George Foreman grill, but they can also be shorter commercials. Click on the Canadian Blood Services link to show a 30, 60 or 120 second ad from their Save a Life campaign. Kiosks Digital Media Websites and social media make up some of the many forms of online marketing. Other forms are discussed in more detail below. • Corporate blogs contain periodic posts on a common Web page. • Social media covers a wide variety of platforms such as Facebook, LinkedIn, Twitter, YouTube, Pinterest, etc. • Mobile apps and text messaging represents an increasingly important way for marketers to communicate with consumers. As technology improves, new media emerge (e.g. social networking sites) and marketers must incorporate them into the IMC mix. The Internet has radically altered the retail marketplace. Many traditional bricks-and-mortar retailers create synergy between online and traditional retailing. Multichannel customers buy more than single channel customers. Ask students: Have you ever started shopping online, and then visited the store to make the actual purchase? What kind of product did you buy using this method? Ask students: How would you like to receive advertising text messages? Answer: A lot of folks do not want such messages. However, the instant-messaging generation is likely to be much more tolerant about it. Social media is covered in more depth in Chapter 16. Social media is media content distributed through social interactions. Three major online facilitators of social media are YouTube, Facebook, and Twitter. Public Relations (PR) Public relations refers to the organizational function that manages the firm’s communications to achieve a variety of objectives, including • Building and maintaining a positive image. • Handling or heading off unfavourable stories or events. • Maintaining positive relationships with the media. As the cost of other promotional media has increased, PR has grown in importance, but its influence has declined as consumers become more skeptical. Cause-related marketing refers to commercial activities in which businesses and charities partner to market an image, product, or service for their mutual benefit. Sponsorships occur when corporations support various activities, usually in the cultural, sports, or entertainment sectors. Ask students: Do you view PR as credible, because it is not “advertising,” or not credible, because it comes from the company? Although the various tools in the PR toolkit work differently, the most common and visible is sponsorship. Firms choose sponsorship opportunities that appeal to their target market and are consistent with their branding message and strategy. Ask students: What corporate sponsorships represent consistent messages? Avon’s Pink Ribbon campaign is an excellent example of a PR campaign that is consistent across. Athletic clothing and equipment firms often sponsor popular athletes and their teams. What do these firms do when athletes change teams? Ask students: How does the sponsorship of athletes benefit firms? How might it harm firms? What can firms do when an athlete they sponsor does something to embarrass the brand? With a popular athlete, firms stand to gain a lot of sales, but when a star athlete becomes a liability, firms quickly distance themselves and focus on another branding element. Answer D; see page 456 Concept Review Generally, the concept questions are designed to achieve a single purpose – to encourage students to test their knowledge and understanding of the theoretical content of the chapter. These questions encourage recall and reflection, which will better prepare students to answer the marketing applications questions based on their understanding of the theory. 1. Briefly describe the marketing communication process and identify the possible sources of noise at each stage of the process. Answer: • The message originates from the sender, who must be clearly identified to the intended audience. Noise, which is any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium, may result if the sender of the message is disguised. • An intermediary such as an advertising agency acts as the transmitter to develop the message. Noise may be caused by lack of clarity in the message. • Encoding converts the sender’s ideas into a message, which could be verbal or visual. Noise may result is the message is not correctly encoded into a form that receivers understand. • The communication channel is the medium—print, broadcast, the Internet—that carries the message. Noise may result because of too many competing messages, for example, too many TV ads. • The receiver is the person who reads, hears, or sees and processes the information contained in the message and/or advertisement. Noise may result because of a flaw in the medium, for example, a blurry or grainy photo in a newspaper ad. • The feedback loop allows the receiver to communicate with the sender and thereby informs the sender whether the message was received and decoded properly. 2. What is meant by integrated marketing communication? Answer: Integrated marketing communication (IMC) encompasses communication disciplines such as advertising, personal selling, sales promotion, public relations, direct response marketing, and digital media in combination to provide clarity, consistency, and maximum communicative impact. 3. Describe the integrated marketing communication tools marketers use in campaigns. Answer: • Advertising is a paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future. • Personal selling is the two-way flow of communication between a buyer and a seller that is designed to influence the buyer’s purchase decision. • Sales promotions are special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase displays. • Public relations manages the firm’s communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavourable stories or events, and maintaining positive relationships with the media. • Direct response marketing is sales and promotional techniques that deliver promotional materials individually to potential customers. • Digital media tools range from simple e-mail and website content to far more interactive features like corporate blogs. 4. Explain the differences between advertising and sales promotions. Answer: Advertising is extremely effective for creating awareness of a product or service and generating interest. While advertising is designed to persuade the receiver to take some action, now or in the future, sales promotions are designed to create excitement that builds short-term sales. 5. Describe some of the elements in a PR Toolkit. Why would a company include PR in its IMC mix? Answer: • Publication, e.g. brochures, special purpose single-issue publications such as books • Video and audio, e.g. programs, public service announcements • Annual reports • Media relations, e.g. press kits, news releases, speeches, event sponsorships • Digital media, e.g. websites, e-mail campaigns Some reasons a company would want to include PR in its IMC mix would be to highlight areas of expertise, draw attention to new products or services, provide required financial performance data, inform others about unique activities of the organization, generate news coverage about its activities or products/services, or support cause-related marketing efforts. 6. Identify some of the key digital media that marketers are using to communicate with their customers. How are these media changing the nature of the communication between the firm and its customers? Answer: Digital media tools range from simple email and website content to far more interactive features like corporate blogs, online games, mobile apps, text messaging, and social media. These tools allow a company to create viral campaigns that quickly produce positive word of mouth. Digital media can also strengthen customer loyalty and provide valuable feedback to a company. They change the nature of the relationship from one-way communications to much more interactive, two-way relationships. Social media provides an environment with considerably more transparency and honesty than in most forms of marketing communication. 7. What are the steps involved in developing an IMC campaign? Briefly explain each step. Answer: 1. Identify target audience – decide who the company wants to reach with its message. The target audience must be clearly identified to set the tone and help select the media to deliver the message. 2. Set objectives – determine the outcome to be achieved 3. Determine the budget – choose between objective and task or rule of thumb methods (affordable, competitive parity, percentage of sales) 4. Convey message – decide what is to be conveyed about a product or service (key benefits, USP) and choose an appeal (rational, emotional) 5. Evaluate and select media – determine which media to use (mass or niche), choose right medium (e.g. television, print, radio, online) and set an advertising schedule (continuous, pulsing, flighting) 6. Create communication – translate the message and appeal into words, pictures, colours and/or music 7. Assess impact – determining the effectiveness of a campaign through pre-testing, tracking, post-testing and measuring sales 8. Describe why a company would use a pull strategy versus a push strategy in its marketing communications. Answer: Pull strategies are generally aimed at consumers whereas push strategies focus on intermediaries. The objective of a pull strategy is to get consumers to pull a product into the supply chain by demanding a retailer carry it. A company that has launched a new product and is trying to get shelf space may use a pull strategy to secure distribution. Push strategies, on the other hand, are designed to increase demand by convincing wholesalers, distributors, retailers and sales people to highlight the product so that they sell it, or push it, out to consumers. 9. Briefly describe the two main appeals of advertising. Answer: • Rational appeals offer factual information and strong arguments built around relevant issues to encourage consumers to evaluate a brand • Emotional appeals aims to satisfy consumers’ emotional desires rather than their utilitarian needs. 10. Explain the three different ways marketers use to measure the success of their marketing communications? What types of information does each method provide? Answer: Marketers use measures of frequency and reach to gauge consumers’ exposure to marketing communications. • Frequency of exposure—how often the target audience is exposed to a communication within a specified period of time • Reach describes the percentage of the target population exposed to a specific marketing communication • Exposure is usually measured in terms of gross rating points (GRP), or reach multiplied by frequency (GRP = reach x frequency). Marketing Applications 1. The designer jean company Juicy Couture has embarked on a new IMC strategy. It has chosen to advertise on the NBC Nightly News and in Time Magazine. The message is designed to announce new styles for the season and uses a 17-year-old woman as the model. Evaluate this strategy. Instructor’s Notes: To succeed, each element of an IMC strategy must have a well-defined purpose and support and extend the message delivered by all the other elements. This question challenges students to determine which elements of Juicy Couture’s IMC strategy might miss the mark. Example answers: Juicy Couture’s new IMC strategy will not be very successful, because its target audience of teenaged, fashion-forward girls probably do not watch NBC Nightly News or read Time Magazine. The message might be right, but the media for delivery are not. The company might be better of showing the advertisement during American Idol and putting the print ad in a magazine like YM. Juicy Couture’s IMC strategy of advertising on NBC Nightly News and in Time Magazine aims to reach both a broad and a more niche audience, leveraging both TV and print media. The choice of a 17-year-old model could resonate well with younger consumers and fashion enthusiasts. However, to effectively evaluate the strategy: 1. Target Audience Alignment: If Juicy Couture’s target market includes both mainstream viewers and fashion-conscious readers, this approach is sound. The choice of media (NBC Nightly News for a broad audience and Time Magazine for a more upscale, engaged audience) could effectively capture attention from different segments. 2. Brand Image Consistency: Using a young model aligns with Juicy Couture’s youthful and trendy brand image. Ensuring the message is consistent across both media channels is crucial for reinforcing brand identity. 3. Engagement and Reach: Advertising in a prime-time news slot and a prominent magazine ensures high visibility. However, evaluating the effectiveness would require assessing the actual engagement levels and consumer response. Overall, the strategy appears well-targeted if it aligns with Juicy Couture’s brand image and audience demographics. 2. It’s holiday time, and you’ve decided to purchase a jewellery item for the person of your choice at Tiffany & Co. Evaluate how Tiffany’s advertising, personal selling, public relations, and digital media might influence your purchase decision. How might the relative importance of each of these IMC elements be different if your parents were making the purchase? Instructor’s Notes: Student must imagine the relative weight they, as well as their parents, might put on each element of Tiffany’s IMC strategy. Student likely will weight on public relations and digital media more heavily, whereas their parents probably appreciate personal selling more. Example answers: Tiffany’s advertising might pique my interest about the possibility of seeing what products it has to offer. Through its PR, the company may have gotten one of my favourite celebrities to wear its products, which subtly sends me the signal that I might want such products as well. The company’s Web site could increase my interest and desire to buy something. Finally, personal selling by a Tiffany’s sales associate in the store location would help me pick out the right gift, and I probably would make my purchase at that point. If my parents were making the purchase however, they might not pay as much attention to the PR or digital media elements and instead rely almost completely on personal selling. For You: 1. Advertising: Tiffany’s luxury branding in ads creates aspirational value and influences your perception of quality and prestige, making you more likely to choose their products. 2. Personal Selling: In-store sales representatives provide personalized service, enhancing your buying experience and addressing specific needs, which can make the decision easier. 3. Public Relations: Positive media coverage and endorsements enhance Tiffany’s reputation, building trust and reinforcing your decision to buy from a reputable brand. 4. Digital Media: Social media and online content offer inspiration and convenience, helping you explore options and make an informed decision based on reviews and online presence. For Your Parents: 1. Advertising: They might be influenced more by traditional advertising, associating it with reliability and quality. 2. Personal Selling: Personalized service becomes more crucial, as they may value detailed guidance and reassurance from knowledgeable staff. 3. Public Relations: The brand’s reputation and positive media coverage might carry more weight, given their focus on long-term trust and value. 4. Digital Media: They may rely less on digital media and prefer traditional research methods, like visiting stores or consulting with friends. 3. Choose one of the ads featured in this book and explain whether it uses a rational appeal or an emotional appeal. Instructor’s Notes: This question reinforces the concept of advertising appeal, and answers again will depend on which ad students choose. Example answers: The Burger King ad predominantly uses emotional appeals. The Star Wars–inspired visuals should get consumers, especially fans of the movie, excited, and the “Kings of the Court” section suggests a hip or cool attitude. However, it also contains some informational appeals. For example, the ad points out that consumers can wear the watch eight different ways, which emphasizes a key benefit of flexibility. To determine whether an ad uses a rational or emotional appeal, select an ad from the book and consider the following: • Rational Appeal: Focuses on logical arguments, facts, and features of the product, aiming to inform and persuade through reason. It highlights benefits, product details, and cost-effectiveness. • Emotional Appeal: Targets feelings and emotions, aiming to create a connection or evoke a response. It uses imagery, stories, or sentiments to appeal to the audience’s emotions, such as happiness, nostalgia, or desire. For example, if the ad features a car emphasizing its safety features, fuel efficiency, and technical specifications, it uses a rational appeal. If the ad shows a family enjoying a vacation in the car, creating a warm, emotional connection, it uses an emotional appeal. 4. Bernard’s, a local furniture company, targets college students with apartments and households of young people purchasing their first furniture items. If you worked for Bernard’s, what type of media would you use for your advertising campaign? Justify your answer. Instructor’s Notes: To engage in media planning and determine the proper media mix for Bernard’s, students must consider what will enable the store to target its desired market segments clearly and consistently. Example answers: To reach the target consumer segments, Bernard’s should use a combination of local television advertising, newspaper ads, and Internet marketing. Local television ads would give the firm wide reach in the geographic area, especially if Bernard’s shows them during popular local events, such as televised college sporting events or local home-improvement shows. Newspaper ads would reach other members of these consumer segments, especially if the store puts its ads in a free weekly paper, which many young people prefer to traditional newspapers. Finally, it could use Internet banner ads on Web sites commonly frequented by these segments. For targeting college students and young people purchasing their first furniture, you should use: 1. Social Media: Platforms like Instagram, TikTok, and Facebook are popular with younger audiences, ideal for showcasing trendy, affordable furniture and engaging with potential customers through visuals and interactive content. 2. Online Advertising: Use targeted ads on websites and apps frequently visited by students and young professionals, such as lifestyle blogs, home decor sites, and rental platforms. 3. Influencer Partnerships: Collaborate with influencers who resonate with your target demographic to build trust and drive engagement. 4. Campus and Local Events: Sponsor or participate in college events and local community activities to directly reach students and young buyers. These media choices effectively reach and engage your target audience, aligning with their media consumption habits and preferences. 5. Should Bernard’s use continuous, pulsing, or flighting for its advertising schedule? Why? Instructor’s Notes: In extending their consideration of the appropriate strategy for Bernard’s, this question asks students to think about the three different schedules and which will be most effective in this case. Example answers: Bernard’s should use a pulsing schedule and ensure it maintains a base level of advertising (e.g., newspapers and the Internet) to communicate its existence and the products it offers. Then, it should increase advertising intensity during specific periods, such as when students come back to school or during graduation, when more target consumers might make furniture purchases. Bernard’s should use a pulsing advertising schedule. Reason: Pulsing combines continuous and flighting strategies by maintaining a base level of advertising throughout the year, with increased intensity during peak times, such as back-to-school seasons or apartment lease turnovers. This approach ensures consistent visibility while capitalizing on times when college students and young people are most likely to be shopping for new furniture. 6. Suppose you saw your instructor for this course being interviewed on TV about the impact of a big storm on an upcoming holiday’s sales. Is this interview part of your college’s IMC program? If so, do you believe it benefits the college? How? Instructor’s Notes: Where is the line between commercial and non-commercial speech? Students must determine how to define commercial or non-commercial speech depending on what they believe the professor might say. Example answers: The interview likely is part of a larger IMC strategy to get the college more exposure in the marketplace by arranging for the school’s faculty to act as experts on television, online, or in print media. Each time a professor offers his or her expert opinion, the college’s name gets mentioned, and repeated exposure to such mentions builds awareness in the minds of consumers. The school can benefit from such exposure and awareness, because more students might apply, or corporations might donate more. Yes, the interview is part of the college's IMC (Integrated Marketing Communications) program if it’s designed to enhance the college’s public image and engagement. Benefits: The interview can: 1. Increase Visibility: Highlight the college’s expertise and thought leadership in relevant topics. 2. Enhance Reputation: Position the college as a knowledgeable and authoritative institution. 3. Build Relationships: Strengthen connections with the community and potential students by showcasing the college's involvement in current issues. 7. A retail store places an ad in the local newspaper for Capri pants. The sales of the featured pants increase significantly for the next two weeks; sales in the rest of the sportswear department go up as well. What do you think are the short- and long-term objectives of the ad? Justify your answer. Instructor’s Notes: Students’ responses could focus on various factors, including increased sales of the promotional item, increased sales of items throughout the store, or increased awareness among consumers that may enhance future business. Example answers: The short-term objective of the ad is to promote the particular product (Capri pants), sell more of that product, and get consumers into the store to sell them more than Capri pants; the increase in sales in the rest of the store demonstrates the ad’s success on this last point. The long-term objective is probably to increase consumers’ awareness of the store and what it has to offer, pique their interest, and plant the seed in their mind that they could come back to buy from the store again. Short-Term Objectives: 1. Boost Sales: Increase sales of Capri pants immediately following the ad. 2. Drive Traffic: Attract customers to the store, which can lead to higher sales of other sportswear items as well. Long-Term Objectives: 1. Brand Awareness: Strengthen the store's brand presence and recognition in the local market. 2. Customer Loyalty: Encourage repeat visits by creating a positive shopping experience and offering desirable products. 3. Market Positioning: Position the store as a go-to destination for trendy and affordable sportswear. 8. As an intern for Michelin tires, you have been asked to develop an IMC budget. The objective of the IMC strategy is to raise Michelin’s market share by 5% in the United States in the next 18 months. Your manager explains, “It’s real simple; just increase the budget 5% over last year’s.” Evaluate your manager’s strategy. Instructor’s Notes: If they summon the objective-and-task method for budgeting, which determines the budget according to the specific tasks required to accomplish communication objectives, students should be able to discern the flaws in the manager’s recommendation. Example answers: The manager’s strategy probably will not work, because there is no guarantee that increasing the budget by 5% will lead to a corresponding 5% increase in market share. The manager’s strategy also assumes that marketing communication costs have remained constant, when media rates for TV, print, and even digital media probably change considerably over time. Increasing the budget by 5% might mean just keeping pace with media price changes! Increasing the IMC budget by 5% over last year’s may not be sufficient to achieve the objective of raising Michelin’s market share by 5% in the U.S. within 18 months. Evaluation: 1. Insufficient Analysis: Simply increasing the budget does not consider the specific needs, opportunities, or competitive landscape that may require a more tailored approach. 2. Lack of Strategy Alignment: The budget increase should be aligned with detailed strategies, such as targeting key demographics, enhancing media spend, and integrating new channels, rather than a flat percentage increase. 3. Effectiveness Over Budget: Effectiveness of spending on various IMC activities (advertising, promotions, digital marketing) is crucial. It’s better to allocate budget based on expected returns from each activity rather than a general percentage increase. A more strategic approach would involve analyzing past performance, identifying gaps, and allocating the budget where it can most effectively impact market share. 9. McDonald’s spends millions of dollars on advertising. Discuss how it can assess the impact of its advertising by using marketing metrics. Instructor’s Notes: The textbook examines some marketing metrics such as tracking and post campaign testing. Students should also consider the impact on sales. Example answers: McDonald’s likely does pre-testing of its campaigns before launching them. For example, they heavily tested the I’m Lovin’ It tagline and associated ads at the outset and years later when the decision was made to take the campaign to the next level. However they should also track the campaign using metrics such as hits to a website, “Likes” on a Facebook page, and of course, sales at McDonald’s outlets to determine the impact of the advertising. McDonald’s can assess the impact of its advertising using marketing metrics such as: 1. Sales Data: Track changes in sales before, during, and after the advertising campaign to measure direct impact. 2. Brand Awareness: Use surveys and brand recognition studies to gauge shifts in consumer awareness and recall. 3. Customer Engagement: Analyze engagement metrics from digital channels (e.g., social media interactions, website traffic) to assess how the ad drives consumer interest. 4. Return on Advertising Spend (ROAS): Calculate the revenue generated per dollar spent on advertising to evaluate financial effectiveness. 5. Market Share: Monitor changes in market share to determine if the advertising contributed to capturing a larger portion of the market. These metrics provide a comprehensive view of the advertising’s effectiveness in driving sales, enhancing brand awareness, and achieving overall marketing goals. 10. You heard a friend talking about GNC’s healthy drinks and decided to visit its website. Assume that GNC used the services of behavioural advertising firm Tacoda to track how consumers move through its website and to create more targeted advertising. Would you view these efforts as an invasion of privacy? Do you believe this action constitutes an ethical IMC strategy? How will it affect your attitude toward GNC and likelihood that you will purchase its products? Instructor’s Notes: This scenario forces students to question to what degree tracking efforts might violate ethical standards. Example answers: • Most students will not see tracking via cookies on a website or ads targeted specifically to them as an invasion of privacy. In some cases, they may find such customization of advertising messages helpful if they are interested in the products. However, they may state that consumers should be made aware that such tracking efforts are being used. Some students may feel that this action disrespects their privacy rights in terms of avoiding unwanted or unsolicited marketing. • The discussion of whether this action constitutes an ethical IMC strategy could lead to a good in-class discussion since this issue may not be seen as a black and white. • Students who are interested in GNC products may not care that their movement through the website is being tracked or that ads are being created to better target them as a result. However, a student who is simply visiting the site out of curiosity because of the friend’s comment, may be less enamoured with this approach. • Students who see the actions as unethical may think very negatively of GNC and avoid buying the product for just those reasons—no matter how good the product might actually be! Privacy Concern: Tracking consumer behavior to create targeted advertising can feel like an invasion of privacy if not transparently communicated or if it involves excessive data collection. Ethical IMC Strategy: It can be ethical if GNC ensures transparency, obtains consent, and uses data responsibly to enhance the user experience without compromising privacy. Impact on Attitude and Purchase Likelihood: If you value personalized and relevant advertising and GNC handles data responsibly, it could positively influence your attitude and increase the likelihood of purchasing. Conversely, if the tracking feels intrusive, it might negatively impact your perception and reduce your likelihood of buying. Net Savvy 1. Visit http://www.taxi.ca to view the Web site of Taxi, a well-known Canadian IMC consulting firm. The site contains a lot of information about what IMC is and how it can be used effectively by a wide variety of companies. Of particular interest is the case studies section. Locate the case studies link, read a case, and discuss the following: What were the goals of the IMC campaign? Which IMC components were used in that particular campaign? How do those components contribute to the success of the IMC campaign in achieving its stated goals? Instructor’s Notes: To deepen students’ understanding of how the different elements of an IMC campaign can achieve a particular goal, this question asks them to consider a specific case study by Taxi. Example answers: One case study on the website at the time of writing refers to an IMC campaign for the LCBO (Liquor Control Board of Ontario), whose goal was to increase sales in the spirits category. The challenge was to expand the appeal of cocktails to people in their late 20s and early 30s who were not traditionally exposed to cocktail culture. Most people assumed cocktails were complicated to make so the “Shake it Up” campaign was launched to show that making cocktails could be fun and easy. The campaign extended to the web, signage in stores, shopping bags and a cocktail-themed music CD. The campaign ran for four weeks and increased sales by 3.5% or $2.8 million. Web traffic was up 200% over the same period in the previous year. LCBO.com experienced the highest ever one day total number as 10,000 unique visitors came to the site. To answer this question, follow these steps: 1. Visit the Taxi Website: Go to [Taxi's website](http://www.taxi.ca) and find the case studies section. 2. Select and Review a Case Study: Choose a case study of interest and identify the goals of the IMC campaign outlined. 3. Identify IMC Components: Determine which IMC components (e.g., advertising, public relations, digital media, personal selling) were utilized in the campaign. 4. Evaluate Contribution to Success: Assess how these components contributed to achieving the campaign's goals, such as increasing brand awareness, driving sales, or enhancing customer engagement. Example Answer (based on a hypothetical case study): • Goals: Increase brand awareness and drive sales for a new product line. • IMC Components Used: Advertising (TV and digital ads), public relations (media coverage), social media (campaign engagement), and in-store promotions. • Contribution to Success: The combination of these components created a cohesive message across multiple touchpoints, enhanced visibility, engaged the target audience effectively, and drove both online and in-store traffic, contributing to achieving the campaign’s goals. 2. The Canadian Direct Marketing Association is the primary source of information about direct marketing activities for both academics and practitioners. The website for the CMA, at http://www.the-cma.org/, contains a wealth of information about direct marketing practices and self-regulation. How many different target markets does the CMA address on its home page? Click on the “Consumer Information” tab. What services does the CMA provide for consumers? Why do you think it offers those services? Now return to the home page and click on the “Marketing Resources” tab and check out some of the articles, case studies or white papers and reports. Instructor’s Notes: The CMA offers an excellent source for direct marketers and consumers, so students should get a good sense of the available resources as they investigate this question. Example answers: The CMA provides various services to consumers, including educational programs on how to be “cyber savvy” and secure online, guidance on how to stop direct marketing phone calls to their homes, information about consumer rights, and suggestions for keeping children safe online. It offers these services as a way to improve the reputation of direct marketing in the marketplace and to avoid liability by informing consumers openly. The CMA website includes tips for dealing with SPAM and identifying fraudulent offers. CMA members provide consumers with information on their products and services using addressed mail, telephone, television, radio, newspaper, magazines and the Internet. Members must abide by a Code of Ethics that requires adherence to high standards of honesty, truth, accuracy and fairness in all customer dealings. Target Markets on CMA Home Page: The CMA’s home page addresses various target markets, including businesses, marketers, and academics. Consumer Information Services: 1. Consumer Rights: Information on privacy rights and how to opt-out of direct marketing communications. 2. Complaint Resolution: Mechanisms for addressing and resolving complaints related to direct marketing practices. Reason for Offering Services: The CMA provides these services to ensure transparency, protect consumer privacy, and build trust in direct marketing practices by promoting ethical standards and self-regulation. Marketing Resources: • Check the “Marketing Resources” tab for access to articles, case studies, white papers, and reports that provide insights and best practices in direct marketing. These resources support industry professionals with valuable information and research. End-of-Chapter Case Jay-Z and Bing: The Campaign to Convert Jay-Z Decoders into Bing Users Questions: 1. What different IMC components did the Jay-Z–Bing campaign use? Were these marketing elements integrated, in the sense defined in this chapter? Example answers: The advertising agency, Droga5, used outdoor advertising, search engines, a broad media strategy and open source publishing to develop this intricate scavenger hunt that incorporated the use of the Bing search engine and Jay-Z’s book Decoded. IMC, as defined in this chapter, encompasses a variety of communication disciplines to provide clarity, consistency, and maximum communicative impact. All of the components of the Jay-Z-Bing campaign were integrated to promote both the book and Bing. The book’s sales increased and Bing became one of the top 10 most frequently visited websites. The campaign presented here appears to have been very integrated towards a common goal. The Jay-Z–Bing campaign used the following IMC components: 1. Advertising: TV commercials and online ads featuring Jay-Z. 2. Public Relations: Media coverage and press releases about the campaign. 3. Digital Media: Interactive elements on the Bing website and social media engagement. 4. Promotions: Special offers and exclusive content related to the campaign. Integration: Yes, these elements were integrated. The campaign seamlessly combined advertising, PR, digital media, and promotions to create a cohesive and consistent message across multiple channels, enhancing overall effectiveness and reach. 2. How might the various interested parties (e.g., Jay-Z, his publisher, Droga5, Clear Channel, Bing) measure the effectiveness of the campaign? Example answers: Jay-Z and his publisher might measure effectiveness by the sales of the book. The advertising agency, Droga5 might measure effectiveness by the amount of brand awareness the campaign generated (for both Jay Z and Bing), as well as the feedback and response it received from other advertising agencies. Bing would measure success by the increase in customer usage of its search engine. In addition, Bing might also consider the number of new visitors, as well as the number of repeat visitors. Jay-Z: Measures engagement and reach through social media metrics, fan interactions, and any increase in personal brand visibility. Publisher: Evaluates impact on book or music sales and tracks any related upticks in sales figures or media coverage. Droga5 (Agency): Assesses campaign performance through KPIs such as ad impressions, click-through rates, and overall return on investment (ROI). Clear Channel (Media Partner): Analyzes ad reach and effectiveness using radio and digital advertising metrics, such as audience engagement and ad recall. Bing: Measures increases in search volume, website traffic, and user engagement resulting from the campaign, along with conversions and overall ROI. Video Activities Video: Innovative IMC at HSN Learning Objective: LO2 Integrated Marketing Communications Description: The Home Shopping Network uses integrated marketing communications to reach consumers. It starts with three screen platforms: television, computer and mobile devices. Its website allows more than 30% of consumers to access its products at their leisure and see product demos. It also uses social media to expand its reach and convey the message to consumers by posting videos to YouTube, and by using Twitter and Facebook. Key Words: television, online, direct mail, digital media, mobile Activity: Ask students to visit the Home Shopping Network. http://www.hsn.com Have them choose one product and identify how HSN could use other Integrated Marketing Communication tools (besides digital media) to reach their target audience. Have them recommend which three of the six IMC tools make the most sense for HSN and why they would choose those three over the others. Focus on reach of each tool, cost and efficacy when evaluating student answers. Solution Manual for Marketing Dhruv Grewal, Michael Levy, Shirley Lichti, Ajax Persaud 9781259030659, 9781259104312
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