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Chapter Fourteen: Integrated Marketing Communications 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. 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? Integrated marketing communication (IMC) encompasses communication disciplines such as advertising, personal selling, sales promotion, public relations, direct response marketing, and electronic media in combination to provide clarity, consistency, and maximum communicative impact. 3. Describe the integrated marketing communication tools marketers use in campaigns. 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. Electronic 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. 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? 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 Electronic 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 electronic 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? Electronic media tools range from simple e-mail and website content to far more interactive features like corporate blogs, online games, text messaging, and social media. These tools allow a company to create viral campaigns that quickly produce positive word of mouth. Electronic 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. 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. Set objectives – determine the outcome to be achieved Determine the budget – choose between objective and task or rule of thumb methods (affordable, competitive parity, percentage of sales) Convey message – decide what is to be conveyed about a product or service (key benefits, USP) and choose an appeal (rational, emotional) 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) Create communication – translate the message and appeal into words, pictures, colours and/or music 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. 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. 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? 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. The strategy chosen by Juicy Couture to advertise on the NBC Nightly News and in Time Magazine, featuring a 17-year-old woman as the model to announce new styles for the season, can be evaluated based on several factors: Target Audience: Juicy Couture is likely targeting an older demographic with more disposable income by advertising in Time Magazine and on NBC Nightly News. However, using a 17-year-old model may attract younger consumers who aspire to the brand's image of youthfulness and luxury. Brand Image: The use of a 17-year-old model may reinforce Juicy Couture's image as a trendy and youthful brand. However, it's essential to ensure that this image aligns with the brand's overall identity and appeals to its target market. Media Selection: Advertising on NBC Nightly News and in Time Magazine provides broad reach and exposure to a diverse audience. However, it's essential to consider whether these platforms effectively reach Juicy Couture's target demographic and if the cost of advertising is justified by the potential return on investment. Integrated Marketing Communication (IMC): By utilizing both television and print media, Juicy Couture is employing a multi-channel approach to reach consumers. This ensures that the message is delivered through various mediums, increasing the likelihood of reaching the target audience. Seasonal Promotion: Announcing new styles for the season is a timely and relevant message that can generate excitement among consumers. Leveraging seasonal trends can help Juicy Couture capitalize on consumer interest and drive sales. Overall, the strategy appears to have some strengths, such as leveraging multiple channels for communication and tapping into seasonal trends. However, the effectiveness of using a 17-year-old model and the choice of media platforms should be carefully evaluated to ensure alignment with Juicy Couture's brand identity and target audience preferences. 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. 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 electronic 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? When considering purchasing a jewelry item from Tiffany & Co., various integrated marketing communication (IMC) elements play significant roles in influencing the decision-making process. Let's evaluate how each element might affect your purchase decision and how it could differ if your parents were making the purchase: Advertising: For you: As a consumer, Tiffany & Co.'s advertising campaigns might catch your attention through various channels such as magazines, social media, or billboards. Their iconic blue boxes and celebrity endorsements could create a sense of desire and prestige around their products. For your parents: Similar advertising tactics may appeal to your parents, but they might also be influenced by traditional print advertisements in newspapers or magazines, as well as television commercials. They might pay more attention to timeless and classic imagery in advertisements. Personal Selling: For you: If you visit a Tiffany & Co. store, the personalized attention from sales representatives could enhance your shopping experience. They might offer insights into the craftsmanship, materials, and meaning behind each piece, helping you make a more informed decision. For your parents: Personal selling could also be crucial for your parents, especially if they prefer face-to-face interactions and value the expertise and guidance of sales professionals when making significant purchases. Public Relations: For you: Positive press coverage, social media influencers flaunting Tiffany jewelry, and events sponsored by the brand might contribute to your perception of Tiffany & Co. as a reputable and desirable luxury brand. For your parents: Your parents might also be influenced by Tiffany & Co.'s philanthropic initiatives, partnerships with prestigious events, and positive reviews from trusted sources, reinforcing their perception of the brand's quality and values. Electronic Media: For you: Social media platforms like Instagram could showcase Tiffany & Co.'s products in aspirational settings, fostering a desire for their jewelry among younger consumers like yourself. Online advertisements and targeted marketing emails might also remind you of Tiffany & Co.'s offerings. For your parents: While electronic media might still play a role, your parents might rely more on traditional websites, email newsletters, and perhaps even online reviews and forums to gather information about Tiffany & Co.'s products and reputation. The relative importance of each IMC element can vary based on individual preferences, age, and shopping habits. While younger consumers might be more influenced by digital channels and aspirational marketing, older consumers, like your parents, might prioritize personal interactions, reputation, and traditional advertising and PR methods. 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 electronic 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 electronic media elements and instead rely almost completely on personal selling. 3. Choose one of the ads featured in this book and explain whether it uses a rational appeal or an emotional appeal. Without knowing which book or ads you're referring to, I can't provide a specific example. However, I can explain the difference between rational and emotional appeals in advertising. A rational appeal focuses on logical reasoning, facts, and features of a product or service. It aims to persuade consumers by presenting information that demonstrates the product's superiority, functionality, or value proposition. Examples of rational appeals include highlighting product specifications, performance metrics, or cost-effectiveness. On the other hand, an emotional appeal targets consumers' feelings, desires, and aspirations. It aims to evoke emotional responses such as happiness, fear, nostalgia, or excitement to create a connection with the audience. Emotional appeals often rely on storytelling, imagery, and music to evoke specific emotions and create a memorable impression. To determine whether an ad uses a rational or emotional appeal, analyze its content, imagery, tone, and messaging. If it primarily focuses on facts, features, and benefits, it's likely using a rational appeal. Conversely, if it seeks to evoke strong emotions or create a personal connection with the audience, it's likely using 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. 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. For Bernard’s targeting college students and young households purchasing their first furniture items, a strategic mix of digital and physical media channels would be most effective in reaching and engaging with the target audience. Here's a breakdown of the types of media and the justification for each: Social Media Advertising: Platforms like Instagram, TikTok, and Facebook are frequented by college students and young adults. Utilizing visually appealing ads showcasing trendy furniture pieces in stylish apartment settings can attract attention and generate interest. These platforms also offer precise targeting options based on demographics, interests, and behaviors, allowing Bernard’s to reach its intended audience effectively. Influencer Marketing: Partnering with influencers popular among the target demographic can significantly amplify Bernard’s brand awareness and credibility. Collaborating with lifestyle, home decor, or interior design influencers to showcase Bernard’s products in their content can create authentic connections with potential customers. Email Marketing: Building an email list through website sign-ups or in-store registrations can enable Bernard’s to nurture relationships with customers over time. Sending out targeted emails featuring promotions, new arrivals, and design tips can keep the brand top-of-mind and encourage repeat purchases. Local Events and Sponsorships: Engaging with the local community through events such as college fairs, apartment complex gatherings, or furniture expos can provide direct exposure to Bernard’s target audience. Sponsorship of relevant events or student organizations can also enhance brand visibility and demonstrate support for the community. Content Marketing: Creating informative and engaging content on topics related to furniture buying tips, apartment decor ideas, or DIY projects can establish Bernard’s as a trusted authority in the furniture industry. Blog posts, how-to videos, and downloadable guides can drive organic traffic to the website and foster long-term customer relationships. Geo-Targeted Advertising: Utilizing geo-targeting capabilities in digital advertising allows Bernard’s to tailor messages to specific locations, such as college campuses or neighborhoods with a high concentration of young adults. This approach ensures that marketing efforts are relevant and impactful to the local audience. Mobile Advertising: Considering the prevalence of smartphones among college students and young adults, optimizing advertising campaigns for mobile devices is essential. Mobile-friendly ads on apps, mobile websites, and social media platforms ensure seamless user experiences and maximize engagement. By combining these various media channels, Bernard’s can create a cohesive advertising campaign that effectively reaches its target audience, builds brand awareness, and drives conversions among college students and young households purchasing their first furniture items. 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. 5. Should Bernard’s use continuous, pulsing, or flighting for its advertising schedule? Why? The advertising schedule strategy for Bernard's should be carefully chosen based on various factors including budget, target audience behavior, market conditions, and the nature of the product or service being promoted. Let's break down the options: Continuous: This approach involves running advertising consistently throughout the year without any breaks. It ensures a steady presence in the market and helps maintain brand awareness. Continuous advertising is suitable for products or services with consistent demand, where the goal is to maintain top-of-mind awareness among consumers. If Bernard's product or service is something that consumers require consistently or if there's strong competition in the market, continuous advertising can be effective. Pulsing: Pulsing involves alternating periods of heavy advertising with lighter advertising or no advertising at all. This strategy is often used when there are seasonal fluctuations in demand or when the budget is limited. Pulsing allows for maintaining a base level of advertising while increasing efforts during peak seasons or times when consumer demand is highest. If Bernard's operates in an industry with seasonal trends or limited budget constraints, pulsing could be a suitable option. Flighting: Flighting involves running advertising in bursts or "flights" with periods of no advertising in between. This approach is common for products or services that experience sporadic demand or when there are specific promotional events or campaigns planned. Flighting allows for concentrated efforts during specific periods to maximize impact while minimizing advertising costs during off-peak times. If Bernard's is launching a new product, running a promotional campaign, or targeting specific events or seasons, flighting could be an effective strategy. Ultimately, the choice between continuous, pulsing, or flighting advertising schedules for Bernard's depends on factors such as budget allocation, market dynamics, target audience behavior, and marketing objectives. A thorough analysis of these factors will help determine the most appropriate approach to maximize the effectiveness of Bernard's advertising efforts. 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. 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? Yes, if the instructor is being interviewed on TV about the impact of a big storm on upcoming holiday sales, it could potentially be part of the college's Integrated Marketing Communications (IMC) program. In an IMC program, faculty members often serve as experts in their respective fields, contributing to media coverage and enhancing the reputation of the college. By having an instructor appear on TV to discuss such a relevant and timely topic, the college can showcase its expertise and thought leadership in areas related to business, economics, or marketing, depending on the focus of the course. This exposure can benefit the college in several ways: Enhanced Reputation: When faculty members are featured in media interviews, it reflects positively on the college's reputation. It demonstrates that the institution employs knowledgeable experts who are actively engaged in real-world issues. Brand Visibility: Being featured in the media increases the visibility of the college's brand. It can attract attention from prospective students, parents, donors, and other stakeholders, potentially leading to increased enrollment, donations, or partnerships. Credibility and Trust: Seeing an instructor from the college providing expert commentary on a relevant topic can enhance the audience's perception of the institution's credibility and trustworthiness. This can be particularly important for attracting students and partnerships. Networking Opportunities: Media appearances can open up networking opportunities for the college. It may lead to collaborations with other organizations, invitations for speaking engagements, or opportunities for faculty and students to participate in relevant projects or research. Overall, featuring instructors in media interviews as part of the IMC program can be a valuable strategy for promoting the college and positioning it as a leader in its field. Instructor’s Notes: Where is the line between commercial and noncommercial speech? Students must determine how to define commercial or noncommercial 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. 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. The short-term objective of the ad is likely to increase sales of Capri pants. This is evident from the immediate increase in sales following the advertisement. By featuring Capri pants in the ad, the retail store aims to draw attention to this specific product and entice customers to make a purchase. Additionally, the increase in sales of other items in the sportswear department suggests that the ad may have also attracted customers to explore other products within the department, resulting in an overall boost in sales in the short term. In the long term, the objectives of the ad may include building brand awareness, establishing the retail store as a go-to destination for sportswear, and fostering customer loyalty. By consistently featuring attractive products in advertisements and effectively promoting them, the store can reinforce its brand image and positioning in the minds of consumers. This can lead to repeat purchases and a sustained increase in sales over time. Moreover, if customers have a positive experience with the Capri pants they purchased, they may be more likely to return to the store for future sportswear purchases, contributing to long-term growth and profitability. Overall, the short-term objective of the ad is to drive immediate sales, while the long-term objectives involve building brand equity and fostering customer loyalty to sustain sales growth over time. 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. 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. While increasing the budget by 5% over last year's might seem like a straightforward approach, it may not be the most effective strategy for achieving the stated objective of raising Michelin's market share by 5% in the United States within the next 18 months. Here are some considerations for evaluating this approach: 1. Lack of Strategic Focus: Simply increasing the budget without a clear strategic direction may result in inefficiencies and wastage of resources. A more targeted approach that focuses on specific marketing channels or campaigns that have the highest potential for increasing market share would likely be more effective. 2. Need for Market Analysis: Before allocating budget resources, it's important to conduct a thorough analysis of the market landscape, including competitor strategies, consumer behavior, and industry trends. This analysis can inform the selection of appropriate marketing tactics and channels. 3. Integrated Marketing Communications (IMC) Approach: While increasing the overall budget is one aspect of an IMC strategy, it's equally important to ensure that the budget is allocated across various communication channels such as advertising, public relations, digital marketing, and social media in a coordinated manner. Simply increasing the budget without considering the integration and synergy among these channels may limit the effectiveness of the overall strategy. 4. Measurement and Evaluation: Setting specific, measurable objectives, such as a 5% increase in market share, is a good starting point. However, it's also important to establish key performance indicators (KPIs) and mechanisms for tracking and evaluating the effectiveness of the IMC initiatives. Without proper measurement, it would be difficult to determine whether the increased budget allocation is yielding the desired results. 5. Flexibility and Adaptability: Markets are dynamic, and consumer preferences can change rapidly. A rigid approach that simply increases the budget may not allow for necessary adjustments in response to changing market conditions or emerging opportunities. Flexibility and adaptability are key principles of effective marketing strategy. In summary, while increasing the budget by 5% over last year's may provide some incremental benefits, a more strategic and holistic approach is needed to achieve the objective of raising Michelin's market share by 5% in the United States within the next 18 months. This approach should include market analysis, a well-defined IMC strategy, measurement and evaluation mechanisms, and flexibility to adapt to changing circumstances. 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 electronic media probably change considerably over time. Increasing the budget by 5% might mean just keeping pace with media price changes! 9. McDonald’s spends millions of dollars on advertising. Discuss how it can assess the impact of its advertising by using marketing metrics. McDonald's, like many large corporations, invests heavily in advertising to drive brand awareness, customer engagement, and ultimately, sales. To assess the impact of its advertising efforts, McDonald's can utilize various marketing metrics: 1. Brand Awareness: McDonald's can measure changes in brand awareness through surveys or studies conducted before and after advertising campaigns. Tracking metrics such as aided and unaided brand recall can help assess the effectiveness of advertising in increasing brand awareness. 2. Reach and Impressions: Metrics such as reach (the number of unique individuals exposed to the advertising) and impressions (the total number of times an advertisement is displayed) can provide insights into the potential audience reached by the campaign. 3. Engagement Metrics: Monitoring engagement metrics, such as click-through rates (CTR) for online ads, likes, shares, comments, and mentions on social media platforms, can indicate the level of audience interaction and interest generated by the advertising content. 4. Sales Impact: McDonald's can assess the direct impact of advertising on sales by tracking sales trends before, during, and after advertising campaigns. This can involve analyzing sales data at specific locations or regions to identify any spikes or changes attributable to advertising efforts. 5. Return on Investment (ROI): Calculating the ROI of advertising campaigns involves comparing the cost of advertising with the resulting increase in sales or other desired outcomes. McDonald's can use ROI analysis to evaluate the efficiency and profitability of its advertising investments. 6. Customer Surveys and Feedback: Conducting surveys or collecting feedback from customers can provide qualitative insights into the impact of advertising on perceptions, attitudes, and purchase intentions. This feedback can help McDonald's understand how advertising resonates with its target audience. 7. Brand Sentiment Analysis: Monitoring online conversations and sentiment around the brand before, during, and after advertising campaigns can provide valuable insights into how advertising influences public perception and brand sentiment. 8. Market Share: Tracking changes in market share relative to competitors can indicate the effectiveness of advertising in capturing a larger share of the market or maintaining McDonald's competitive position. By analyzing these marketing metrics, McDonald's can gain a comprehensive understanding of the impact of its advertising efforts and make data-driven decisions to optimize future campaigns for maximum effectiveness and return on investment. 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. 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? The use of behavioral advertising firms like Tacoda to track consumer movements on a website raises questions about privacy and ethics. On one hand, it can be seen as an invasion of privacy since individuals may not be aware of the extent to which their online activities are being monitored and analyzed. On the other hand, proponents argue that such tracking allows companies to deliver more personalized and relevant advertising, potentially enhancing the user experience. From an ethical standpoint, the use of Tacoda's services by GNC could be viewed differently depending on various factors. If GNC is transparent about its data collection practices and gives users clear options to opt out or control their privacy settings, then it could be considered a more ethical approach. However, if GNC is not forthcoming about its use of behavioral tracking or if it violates users' privacy rights, then it would be considered unethical. In terms of Integrated Marketing Communication (IMC) strategy, the use of targeted advertising based on consumer behavior could be effective in reaching the right audience with relevant messages. However, it must be done ethically and transparently to maintain trust and credibility with consumers. As for its effect on consumer attitudes and purchase likelihood, it can vary. Some consumers may appreciate the personalized recommendations and view GNC as a brand that understands their needs. Others may feel uncomfortable with the level of tracking and view GNC negatively as a result. Ultimately, the impact on purchase likelihood will depend on how consumers weigh the benefits of personalized advertising against their concerns about privacy and ethical business practices. 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! 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? However, I can guide you on how to analyze a case study from the website. When examining a case study from Taxi's website or any IMC consulting firm, you'll typically want to look for the following: Goals of the IMC Campaign: This is usually outlined at the beginning of the case study. Goals might include increasing brand awareness, driving sales, launching a new product, or changing brand perception. IMC Components Used: Look for the various channels and strategies employed in the campaign. This could include advertising (traditional and digital), public relations, social media, content marketing, direct marketing, and others. Contribution to Success: Consider how each component contributed to achieving the stated goals. For example: Advertising: Increased brand visibility and awareness among the target audience. Social Media: Engaged with customers, generated buzz, and facilitated two-way communication. Public Relations: Garnered positive media coverage, enhanced brand reputation, and credibility. Content Marketing: Provided valuable information to consumers, positioned the brand as an authority in its industry. Direct Marketing: Targeted specific segments of the audience with personalized messages, leading to higher conversion rates. By evaluating these components and their contributions, you can assess the effectiveness of the IMC campaign in achieving its objectives. Remember to look for specific metrics or results provided in the case study to support these conclusions. 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. 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. However, I can guide you on how to find the information you're looking for. 1. Number of Target Markets: Upon visiting the Canadian Direct Marketing Association (CMA) website at http://www.the-cma.org/, navigate to the home page and look for sections or links addressing different target markets. This could include sections tailored for businesses, consumers, specific industries, etc. Count the distinct target markets mentioned or represented on the home page. 2. Consumer Information Services: Click on the "Consumer Information" tab on the CMA website. Look for services or resources provided specifically for consumers. These might include guides on consumer rights, complaint resolution mechanisms, educational materials about marketing practices, etc. Consider why the CMA offers these services—it could be to foster trust between consumers and marketers, to educate consumers about their rights and options, or to demonstrate commitment to ethical marketing practices. 3. Marketing Resources: Return to the home page and click on the "Marketing Resources" tab. Explore the available articles, case studies, white papers, and reports. These resources may cover topics such as industry trends, best practices, regulatory updates, and innovative marketing strategies. Consider the purpose of providing these resources—it could be to support professional development within the marketing community, to showcase thought leadership, or to promote ethical and effective marketing practices. By following these steps, you can gather the information needed to answer your questions about the CMA's target markets, consumer services, and marketing resources. 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. End-of-Chapter Case Dove Widens Definition of Beauty in Integrated Campaign Questions: 1. The Dove Campaign for Real Beauty set an objective to widen the definition of beauty versus selling products. How did using an integrated marketing communication campaign help to achieve this objective? Using an integrated marketing communication (IMC) campaign was instrumental in helping Dove achieve its objective of widening the definition of beauty rather than just selling products. Here's how: 1. Consistent Messaging Across Channels: By employing multiple channels such as television, print, digital media, and social platforms, Dove ensured that its message reached a diverse audience. Consistency in messaging across these channels helped reinforce the idea of embracing diverse definitions of beauty. 2. Engagement with Target Audience: Dove's IMC campaign allowed for two-way communication with its audience. Through social media platforms and interactive digital content, Dove encouraged dialogue and engagement with consumers, fostering a sense of inclusivity and empowerment. 3. Storytelling and Emotional Appeal: Dove utilized various channels to tell compelling stories that resonated with its audience. Whether through television commercials, online videos, or print ads, the campaign showcased real people and their personal journeys, evoking empathy and emotional connections. 4. Educational Content: Dove's IMC campaign didn't just promote its products; it also provided educational content on topics related to self-esteem, body positivity, and beauty standards. This helped position Dove as a brand that genuinely cared about societal issues rather than just profit margins. 5. Cross-Promotion and Amplification: Integration across multiple channels allowed Dove to cross-promote its campaign elements effectively. For instance, a television ad could direct viewers to engage with the brand on social media or visit its website for more content, thus amplifying the campaign's reach and impact. 6. Long-Term Brand Building: By focusing on broader societal issues and promoting a positive message of inclusivity, Dove's IMC campaign contributed to long-term brand building. It established Dove as a brand that stood for values beyond beauty standards, fostering loyalty among consumers who shared those values. In essence, Dove's integrated marketing communication campaign enabled the brand to go beyond traditional product-focused advertising and instead initiate a meaningful dialogue about beauty, self-esteem, and societal norms, ultimately achieving its objective of widening the definition of beauty. Instructor’s Notes: In answering this question, students should recognize that this campaign promotes a message of “Be beautiful, be yourself.” This is in stark contrast to most “beauty” brands and so consistency in communications is key in delivering the message through all brand touchpoints. Example answers: The Dove campaign message was built using a variety of integrated marketing communication elements ranging from print and TV ads, billboards, free-standing inserts, a website, sampling, direct mail, in-store promotion and public relations. Sticking with one overriding message throughout this campaign was needed to help women reframe the concept of beauty. Like the Frank and Gordon example in the Opening Vignette, using an integrated campaign helped to break through the clutter and make Dove’s ads instantly recognizable to consumers. 2. In what ways did Dove create value for its target market? Dove created value for its target market through several strategies: 1. Real Beauty Campaign: Dove's "Real Beauty" campaign challenged conventional beauty standards by featuring real women of various ages, sizes, and ethnicities in its advertising. This approach resonated with consumers who felt overlooked or misrepresented by traditional beauty brands, creating a sense of inclusivity and empowerment. 2. Product Innovation: Dove developed a range of products designed to cater to diverse skin and hair types. Their moisturizing body washes, nourishing hair care products, and gentle skincare lines addressed specific concerns of their target market, such as dry skin or damaged hair, offering effective solutions. 3. Emotional Connection: Dove's marketing emphasized emotional storytelling rather than just product features. By focusing on themes like self-acceptance, inner beauty, and confidence-building, Dove forged deeper connections with consumers who sought brands that aligned with their values and aspirations. 4. Educational Initiatives: Dove launched educational programs aimed at promoting positive self-image and self-esteem, particularly among young people. Initiatives like the Dove Self-Esteem Project provided resources and workshops to empower individuals to develop a healthy relationship with their bodies and appearance. 5. Transparency and Authenticity: Dove's commitment to transparency, such as featuring real women without excessive retouching in their ads, helped build trust with consumers. By embracing authenticity and showcasing genuine experiences, Dove positioned itself as a brand that valued honesty and integrity. Overall, Dove's focus on inclusivity, product innovation, emotional resonance, educational initiatives, and authenticity allowed it to create significant value for its target market, fostering loyalty and positive brand perception. Instructor’s Notes: A successful IMC campaign must make the target segment of consumers understand the value being created by the product. While the products may provide benefits, and thus value to consumers, the real value in this campaign extends to initiating a dialogue around the former definition of beauty, work being done with young girls exploring issues related to self-esteem and eating disorders. Example answers: Dove launched an exhibit of photos of women taken by well-known photographers. Proceeds from the photo exhibit started the Dove Self-Esteem Fund to help women and girls celebrate individual beauty. Dove funded a new website www.realme.ca developed by the National Eating Disorder Information Centre to help young women explore issues related to self-worth and body image. Real Beauty Workshops were hosted across Canada for girls aged 8 to 12 to foster their self-esteem. Most of the campaign elements discussed are focused around creating value for the target market as opposed to simply selling products. 3. The Campaign for Real Beauty has received a lot of publicity. What IMC tools will be the most important for this campaign in the future? The Campaign for Real Beauty, launched by Dove, focuses on promoting realistic and inclusive representations of beauty in media and advertising. To sustain and amplify its impact in the future, several integrated marketing communication (IMC) tools will be crucial: Social Media Platforms: Platforms like Instagram, Twitter, and Facebook offer immense potential for reaching a wide audience and sparking conversations. Dove can leverage these platforms to share empowering messages, engage with followers, and encourage user-generated content using campaign hashtags. Content Marketing: Creating compelling and shareable content through blogs, videos, and infographics can deepen the campaign's message. Dove can produce content that challenges beauty stereotypes, shares real stories, and provides resources for body positivity and self-esteem. Influencer Partnerships: Collaborating with influencers who align with the campaign's values can extend its reach and credibility. By working with diverse influencers who promote body positivity and self-love, Dove can connect with different demographics and amplify its message. Public Relations (PR): Maintaining positive relationships with media outlets and influencers is essential for generating earned media coverage. Dove can continue to engage in PR activities such as press releases, media interviews, and events to keep the campaign in the public eye. Experiential Marketing: Creating immersive experiences through events, pop-ups, and workshops can foster real-world engagement with the campaign's message. Dove can organize events focused on self-care, body confidence, and diversity to connect with consumers on a personal level. Branded Partnerships: Collaborating with other brands and organizations that share similar values can amplify the campaign's impact. By partnering with entities in the fashion, entertainment, or wellness industries, Dove can extend its reach and influence. Digital Advertising: Targeted digital ads on platforms like Google, YouTube, and display networks can ensure the campaign reaches specific demographics effectively. Dove can use data-driven approaches to tailor ads to audiences interested in topics related to body positivity and beauty diversity. Community Engagement: Building communities both online and offline can foster long-term engagement and advocacy. Dove can create online forums, support groups, or ambassador programs where individuals can connect, share experiences, and support one another in embracing their unique beauty. By strategically employing these IMC tools, the Campaign for Real Beauty can continue to inspire positive change and redefine societal standards of beauty in the future. Instructor’s Notes: A successful IMC campaign must use a variety of tools. While advertising has been important to increasing brand and product awareness, students should be reminded about the amount of publicity received and assess the value of the free media coverage Dove received. Example answers: Given the success of publicity in this campaign, it is very likely that PR will become the most important tool in this campaign. Students might cite a number of examples as listed below. The Dove Campaign for Real Beauty initiated a dialogue with consumers about the definition of real beauty. The media quickly picked up on this atypical approach to advertising a beauty brand. Over time, some of the events and causes that the Dove brand supported generated favourable media coverage which helped to spread the message in a way that was perceived as much more credible than conventional advertising. The 75 second film, Evolution, attracted millions of views on YouTube only days after being posted. Over the next year, it won numerous awards including two Grand Prix awards at the Cannes Lions International Advertising Festival generating even more media attention. Over $150 million of free publicity has been created from this campaign. 4. Would the same IMC tools be appropriate for use with the Men + Care product line or will Dove have to take a different approach? The IMC (Integrated Marketing Communications) tools that Dove has traditionally used may not necessarily be directly transferable to the Men + Care product line without some modifications. While Dove has built a strong brand identity with its traditional product line, extending this to the Men + Care line may require adjustments to effectively reach and resonate with the male target audience. Here are some considerations for Dove in adapting its IMC tools for the Men + Care product line: Market Research: Conducting thorough market research specific to the male demographic is crucial. This will help Dove understand the preferences, values, and purchasing behavior of men, enabling them to tailor their marketing communications accordingly. Messaging: Dove will need to craft messaging that speaks directly to men's needs, concerns, and aspirations. This may involve emphasizing different product benefits, such as efficacy, performance, and masculinity, while still maintaining Dove's overarching brand values of care and inclusivity. Media Selection: Dove may need to explore different media channels that are more frequented by men, such as sports programming, online gaming platforms, or male-centric publications. Utilizing digital platforms and social media channels effectively can also help reach the target audience where they are most active. Creative Execution: Adapting the creative elements of advertising campaigns to resonate with male consumers is essential. This could involve featuring male-centric imagery, using language and humor that appeals to men, and showcasing real-life scenarios that reflect men's grooming needs and routines. Promotional Strategies: Dove may consider implementing promotional strategies tailored to the Men + Care product line, such as targeted promotions, partnerships with male-oriented brands or influencers, and in-store displays designed to attract male shoppers. Integrated Approach: While Dove may need to adjust specific tactics for the Men + Care line, maintaining consistency in brand messaging and values across all communication channels is still important. Integration ensures a cohesive brand experience for consumers and reinforces Dove's reputation for quality and care. In summary, while Dove's existing IMC tools provide a solid foundation, adapting them to the Men + Care product line will require a nuanced approach that takes into account the unique preferences and characteristics of the male target audience. By conducting thorough research and making strategic adjustments to messaging, media selection, creative execution, and promotional strategies, Dove can effectively engage men and drive success for the Men + Care brand. Instructor’s Notes: Any successful IMC campaign must use a variety of tools. Publicity may have been easier to generate for the women’s line of products since the Campaign for Real Beauty revolved around issues of great interest to women, e.g. self esteem, body image, eating disorders, etc. It may be difficult to get the same traction with men unless new issues important to them can be identified. Example answers: Given the success of the Dove Campaign for Real Beauty, it should be easier to generate awareness of the Dove MEN+CARE line using advertising. However, an integrated approach will still be needed. Publicity will likely play a big role and so should be considered. For example, successful men who are viewed as icons in their field and who are comfortable in their own skin could be recruited to be the “face” of the campaign. Video Activities 1) Video: Innovative IMC at HSN
Learning Objective: LO2 Integrated Marketing Communications
Page Number in Text: 458
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, electronic 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 electronic 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. One product that students could choose from the Home Shopping Network (HSN) website is a fitness tracker. Here's how HSN could utilize other Integrated Marketing Communication (IMC) tools besides electronic media to reach their target audience: 1. Direct Mail: HSN could use direct mail to send out catalogs or flyers promoting the fitness tracker to a targeted list of potential customers. This could include individuals who have previously purchased fitness-related products or have shown interest in health and wellness items. Direct mail allows HSN to reach customers directly in their homes, providing tangible materials that can capture attention and drive sales. 2. Events/Sponsorships: HSN could sponsor fitness events or health expos where they can showcase their products, including the fitness tracker. By participating in relevant events, HSN can engage directly with potential customers, allowing them to interact with the product firsthand and learn about its features. This personal interaction can help build brand awareness and trust among consumers. 3. Public Relations: HSN could leverage public relations efforts to garner media coverage and generate buzz around the fitness tracker. This could include sending out press releases announcing the launch of the product, organizing media events or product demonstrations, and pitching stories to journalists and influencers in the health and fitness space. Positive media coverage can help increase visibility and credibility for the product, driving interest and sales. Choosing these three IMC tools over others makes sense for HSN for the following reasons: • Direct mail provides a targeted and personalized approach to reach potential customers, allowing HSN to tailor their messaging to specific demographics or interests. • Events and sponsorships allow HSN to engage with consumers in a more interactive and experiential manner, fostering a deeper connection with the brand and its products. • Public relations efforts can help amplify HSN's marketing message through third-party endorsements, reaching a wider audience through earned media coverage. Overall, these three IMC tools offer a strategic combination of reach, cost-effectiveness, and efficacy for HSN to effectively promote the fitness tracker and engage with its target audience. 2) Video: Frito Lay: Integrated Marketing Communications Learning Objective: LO2 Integrated Marketing Communications LO5 Identify how firms determine which media to use
Page Number in Text: 458, 476
Description: Engagement marketing was used by Frito Lay when it encouraged consumers to create videos that could air on the Superbowl. This departure from traditional marketing invited customers to interact with the company in a fun and meaningful way via a new website. Several sales promotions were run in conjunction with online and traditional print and TV advertising.
Key Words: television, online, direct mail, electronic media, mobile, message, advertising, offline, online, electronic media, print, TV, interactive
Activity: Use examples of ads from the most recent Superbowl ad for Doritos, e.g. “Man’s Best Friend” or “Sling Baby” from 2012. Remind students that as Superbowl ads mature, companies are not just relying on a 30 second tv spot to promote their messages. They broadcast teaser ads in advance of the big game and encourage viewers to use social media to comment on the ads during the game. You may want to show Doritos ads from the most recent Superbowl, e.g. “Man’s Best Friend” or “Sling Baby” from 2012. (These ads were in the top 10 of social media comments generated in 20120 at 73,724 and 40,990. Source: http://adage.com/article/special-report-super-bowl/10-super-bowl-commercials-won-social-media/232548/) Ask students what how/if the ads work in an integrated campaign and if the use of electronic and social media was appropriate. In analyzing the integrated marketing communications (IMC) approach of Frito Lay's engagement marketing strategy, particularly in the context of the Super Bowl ads for Doritos like "Man's Best Friend" and "Sling Baby" from 2012, it's evident that the company employed a multi-channel approach to reach and engage with consumers. 1. Engagement Marketing: Frito Lay encouraged consumers to create videos for potential airing during the Super Bowl, shifting from traditional marketing to a more interactive and participatory approach. This engagement strategy allowed consumers to actively interact with the brand, creating a deeper connection and sense of ownership. 2. Multi-channel Promotion: Frito Lay utilized a combination of online and offline channels to promote its Super Bowl campaign. This included traditional print and TV advertising, as well as online platforms such as social media and a dedicated website. By utilizing multiple channels, Frito Lay ensured broader reach and engagement with its target audience. 3. Social Media Integration: The company leveraged social media to amplify the impact of its Super Bowl ads. Doritos ads like "Man's Best Friend" and "Sling Baby" generated significant social media buzz, with high numbers of comments and shares. Frito Lay effectively capitalized on this by encouraging viewers to engage with the ads on social media platforms, thereby extending the reach and visibility of the campaign. 4. Teaser Campaigns: Frito Lay employed teaser ads in advance of the Super Bowl to build anticipation and generate excitement among consumers. This strategy not only increased awareness of the upcoming campaign but also encouraged viewers to actively seek out and engage with the ads during the big game. 5. Interactive Experience: By inviting consumers to participate in creating content for the Super Bowl ads, Frito Lay created an interactive and immersive experience for its audience. This not only fostered a sense of community and collaboration but also increased brand loyalty and affinity among participants. Overall, Frito Lay's integrated marketing communications approach effectively combined traditional advertising with innovative engagement strategies, leveraging electronic and social media channels to amplify the impact of its Super Bowl campaign. The use of multiple channels, including social media, teaser campaigns, and consumer participation, contributed to the success of the campaign and its integration into a cohesive marketing strategy. Solution Manual for Marketing Dhruv Grewal, Michael Levy, Shirley Lichti, Ajax Persaud 9780071320382, 9780070984929
