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Chapter 1OVERVIEW OF INTEGRATED MARKETING COMMUNICATIONS AND THE MARCOM PROCESSChapter Objectives To introduce the topic of marketing communications (marcom) and identify the tools used by practitioners. To describe the philosophy and practice of integrated marketing communications (IMC). To present the five key features of IMC. To identify obstacles to implementing IMC. To introduce a framework that illustrates the activities involved in developing an integrated communications program. To distinguish some of the important trade associations in the marcom field.Chapter Overview This chapter discusses the nature of marketing communications, particularly at the brand level. Whereas the “4P” characterization has led to widespread use of the term “promotion” for describing communications with prospects and customers, the term marketing communications is preferred by most practitioners and educators, and it is used to refer to the collection of advertising, sales promotion, public relations, event marketing, and other communication devices; comparatively, the term promotions is used to refer to sales promotions. Integrated marketing communications (IMC) is the philosophy and practice of carefully coordinating a brands sundry marketing communication elements, and five key features of IMC are discussed: (1) start with the customer or prospect; (2) use any form of relevant contact or touch point; (3) speak with a single voice; (4) build relationships; and (5) affect behavior. Changes in marcom practices as well as obstacles to implementing IMC are given. The latter portion of the chapter describes a model of the marketing communications decision-making process. The model includes fundamental decisions (i.e., targeting, positioning, setting objectives, and budgeting), implementation decisions (i.e., mixing elements, creating messages, selecting media, and establishing momentum), expected outcomes (i.e., enhancing brand equity and affecting behavior), and program evaluation. The chapter appendix provides information on important U.S. trade associations in the marketing communications field.Chapter Outline1. The Nature of Marketing Communications Most marketing communications occurs at the brand level. The term brand is a convenient label for describing any object of concerted marketing efforts, and it could be a product, a service, a retail outlet, a media company, or even a person. A well-known and respected brand is an invaluable asset 2. The Integration of Marketing CommunicationsWhat Exactly Is IMC? IMC is a communication process that entails the planning, creation, integration, and implementation of diverse forms of marcom (advertisements, sales promotions, publicity releases, events, etc.) that are delivered over time to a brands targeted customers and prospects. The goal of IMC is ultimately to influence or directly affect the behavior of the targeted audience. Key IMC Features The Customer Represents the Starting Point for All Marketing Communications Activities Brand Managers and Their Agencies Should Be Amenable to Using Various Marketing Communication Tools Multiple Messages Must Speak with a Single Voice Build Relationships Rather Than Engage in Flings Dont Lose Focus of the Ultimate Objective: Affect Behavior!Changes in Marketing Communication PracticesObstacles to Implementing IMC3. A Model of the Marketing Communications Decision-Making ProcessFundamental Marcom Decisions (conceptual and strategic) Targeting Positioning Setting Objectives Budgeting Concluding Mantra:Marcom Implementation Decisions (practical and tactical) Mixing Elements Creating Messages Selecting Media Establishing Momentum Marcom Outcomes Program Evaluation Chapter 2MARCOMS CHALLENGES: ENHANCING BRAND EQUITY, INFLUENCEING BEHAVIOR, AND BEING ACCOUNTABLEChapter Objectives To explain the concept of brand equity from both the companys and the customers perspectives. To describe the positive outcomes that result from enhancing brand equity. To present a model of brand equity from the customers perspective. To examine how marcom efforts must influence behavior and achieve financial accountability.Chapter Overview The basic issues addressed in this chapter are these: What can marketing communicators do to enhance the equity of their brands and, beyond this, affect the behavior of their present and prospective customers? Also, how can marketing communicators justify their investments in advertising, promotions, and other marcom elements and demonstrate financial accountability? The concept of brand equity is explained from both the companys perspective and the consumers perspective. The firm-based viewpoint of brand equity focuses on outcomes extending from efforts to enhance a brands value to its various stakeholders and discusses various outcomes: (1) achieving a higher market share, (2) increasing brand loyalty, (3) being able to charge premium prices, and (4) earning a revenue premium. From the perspective of the customer, a brand possesses equity to the extent that they are familiar with the brand and have stored in their memory favorable, strong, and unique brand associations. Brand equity from the customers perspective consists of two forms of brand-related knowledge: (1) brand awareness and (2) brand image. The chapter covers three ways by which brand equity is enhanced and labels these the (1) speak-for-itself approach, (2) message-driven approach, and (3) leveraging approach. The chapter then discusses ten traits shared by the worlds strongest brands. The latter portion of the chapter covers the concept of ROMI, or return on marketing investments. Several difficulties of measuring marcom effectiveness are discussed: (1) choosing a metric, (2) gaining agreement, (3) collecting accurate data, and (4) calibrating specific effects. The chapter then discusses marketing-mix modeling (i.e., multivariate regression analysis) and how it can assist managers in determining the effect of each marcom element on sales volume.Chapter Outline1. Desired Outcomes of Marcom Efforts2. The Concept of Brand Equity A brand represents a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.”A Firm-Based Perspective on Brand EquityA Customer-Based Perspective on Brand Equity Brand awareness Brand recognition Brand recall Top-of-mind-awareness (TOMA) Brand Image Five dimensions have been identified for different brands “personalities.”1. Sincerity2. Excitement3. Competence4. Sophistication5. RuggednessHow Can Brand Equity Be Enhanced? What Benefits Result From Enhancing Brand Equity?Characteristics of World-Class Brands3. Effecting Behavior and Achieving Marcom Accountability ROMI: return on marketing investment.Difficulty of Measuring Marcom Effectiveness Choosing a Metric Gaining Agreement Collecting Accurate Data Calibrating Specific Effects Assessing Effects with Marketing-Mix Modeling Chapter 3ETHICAL, REGULATORY, AND ENVIRONMENTAL ISSUES IN MARKETING COMMUNICATIONSChapter Objectives Appreciate the ethical issues in marketing communications. Understand why the targeting of products and marketing communications is a heatedly debated practice. Explore the ethical issues associated with advertising, sales promotions, and other marcom practices. Explain the role and importance of governmental efforts to regulate marketing communications. Understand deceptive advertising and the elements that guide the determination of whether a particular advertisement is potentially deceptive. Explain the regulation of unfair business practices and the major areas where the unfairness doctrine is applied. Recognize the role of the states in regulating unfair or deceptive marketing communications practices. Know the process of advertising self-regulation. Appreciate the role of marketing communications in environmental (green) marketing. Recognize the principles that apply to all green marketing efforts. Chapter Overview This chapter investigates ethical issues and governmental regulations that have considerable relevance to marketing communicators, consumers, and society at large. The goal is for students to fully appreciate that marketing communicators operate under constraints (i.e., governmental, competitive, and moral) that limit certain actions but benefit free markets. The chapter addresses three major topics: (1) ethical issues in marcom, (2) the regulation of marcom practices, and (3) environmental matters and their implications for marketing communications. The ethical issues covered are: (1) targeting marketing communications, (2) advertising, (3) public relations, (4) packaging communications, (5) sales promotions, and (6) Internet marketing. The chapter then turns to the discussion of regulation of marketing communications, beginning with a discussion of when regulation is justified. Then the FTCs policy on deceptive advertising is given. Unfair practices are also discussed, with the definition of unfair advertising given. Advertising self-regulation is covered as well, including coverage of media self-regulation (i.e., advertising clearance process) and the National Advertising Review Council (i.e., NAD and NARB). The latter third of the chapter covers several “green” marketing initiatives, such as green advertising, packaging, seal-of-approval programs, cause-oriented programs, and point-of-purchase programs. Finally, guidelines for green marketing are provided.Chapter Outline1. Ethical Issues in Marketing Communications Ethical Issues in Advertising Ethical Issues in Public Relations Ethical Issues in Packaging and Branding Ethical Issues in Sales Promotions Ethical Issues in Online Marketing2. Regulation of Marketing CommunicationsWhen is regulation justified? Deceptive Advertising Unfair Practices Information Regulation Product Labeling Prescription Drug AdvertisingState Agencies Regulation of Marketing CommunicationsAdvertising Self-Regulation3.Environmental, or “Green,” Marketing CommunicationsGreen Marketing Initiatives Green Advertising Packaging Responses Seal-of-Approval Programs Cause-Oriented Programs Point-of-Purchase ProgramsGuidelines for Green Marketing1. Make Specific Claims. 2. Reflect Current Disposal Options. 3. Make Substantive Claims. 4. Make Supportable Claims. Chapter 4MARCOM TARGETINGChapter Objectives Discuss the importance of targeting marketing communications to specific consumer groups and realize that the targeting decision is the initial and most fundamental of all marcom decisions. Understand the role of behaviorgraphics in targeting consumer groups. Describe the nature of psychographic targeting and the VALS system. Appreciate the major demographic developments such as changes in the age structure of the population and ethnic population growth. Explain the meaning of geodemographics and understand the role for this form of targeting. Recognize that any single characteristic of consumerswhether their age, ethnicity, or income levellikely is not a sufficient basis alone for sophisticated marcom targeting.Chapter Overview This chapter focuses on the first fundamental decision in the marcom decision processtargeting. The chapter focuses on four sets of consumer characteristics that singularly or in combination influence what people consume and how they respond to marketing communications: behaviorgraphics, psychographics, geodemographics, and demographics. Behaviorgraphics represents information about the audiences behavior. Particular attention is given to consumers online behavior and how that can be tracked so that relevant ads can be delivered to them. Psychographics captures aspects of consumers psychological makeups and lifestyles including their attitudes, values, and motivations. Particular attention is given to the VALSTM classification of consumers. Geodemographics is based on demographic characteristics of consumers who reside within geographic clusters such as zip code areas and neighborhoods. Claritass PRIZMNE system of geodemographic profiling is described. Finally, demographics reflect measurable population characteristics such as age, income, and ethnicity, and the chapter covers three major demographic aspects that have considerable relevance for marcom practitioners: (1) the age structure of the population; (2) the changing household composition; and (3) ethnic population developments. The chapter proceeds from the most (behaviorgraphics) to the least predictive indicator of behavior (demographics).Chapter Outline1. Targeting Customers and ProspectsFour sets of consumer characteristics that singularly or in combination influence what people consume and how they respond to marketing communications: Behaviorgraphics Psychographics Demographics Geodemographics 2.Behaviorgraphic TargetingOnline Behavioral TargetingPrivacy Concerns3.Psychographic Targeting VALSTM classification has 8 groups (see Figure 4.2): Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, and Survivors.o The horizontal dimension represents individuals primary motivations, whether in terms of their pursuit of ideals, their need for achievement, or drive to self-express.o The vertical dimension reflects individuals resources as based on their educational accomplishments and income levels.4.Geodemographic Targeting PRIZMNE stands for Potential Rating Index by Zip Markets and NE represents the “new evolution” of Claritas original segmentation system.5.Demographic Targeting The Changing Age Structure The Ever-Changing American Household Ethnic Population DevelopmentsChapter 5MARCOM POSITIONINGChapter Objectives Introduce the concept and practice of brand positioning. Explain that positioning involves the creation of meaning and that meaning is a constructive process involving the use of signs and symbols. Give details about how brand marketers position their brands by drawing meaning from the culturally constituted world. Describe how brands are positioned in terms of various types of benefits and attributes. Explicate two perspectives that characterize how consumers process information and to describe the relevance of each perspective for brand positioning.Chapter Overview This chapter begins by discussing the concept of positioning, first in theory, then in practice. A brands positioning represents the key feature, benefit, or image that it stands for in the target audiences collective mind. In the theoretical discussion, semiotics, signs, and meaning are covered with the focus on how brands draw meaning from the culturally constituted world. In practice, brands can be positioned based on benefits (i.e., functional, symbolic, or experiential needs) or on attributes (i.e., product-related and non-product-related). To implement a positioning strategy, one must “know thy customer,” so a discussion of the consumer processing model (CPM) and the hedonic, experiential model (HEM) is given. The stages of the CPM that are relevant to marcom are: (1) exposure, (2) attention, (3) comprehension, (4) agreement, and (5) and (6) retention and search/retrieval of stored information. While the CPM perspective views consumers from a rational perspective, the HEM perspective concentrates more on the emotional aspect of consumer processing. From this perspective, products are more than mere objective entities and are, instead, subjective symbols that precipitate feelings and promise fun and the possible realization of fantasies.Chapter Outline1. Positioning in Theory: A Matter of Creating Meaning A brands positioning represents the key feature, benefit, or image that it stands for in the target audiences collective mind.The Meaning of MeaningMeaning Transfer: From Culture to Object to Consumer2. Positioning in Practice: The Nuts and Bolts A good positioning statement should satisfy two requirements: reflect a brands competitive advantage and motivate consumers to action.Benefit Positioning Positioning Based on Functional Needs Positioning Based on Symbolic Needs Positioning Based on Experiential NeedsAttribute Positioning Product-related Non-Product-related: Usage and User ImageryRepositioning a Brand 3. Implementing Positioning: Know Thy ConsumerThe Consumer Processing Model (CPM) Stage 1: Being Exposed to Information Stage 2: Paying Attention Stage 3: Comprehension of What is Attended Stage 4: Agreement With What Is Comprehended Stages 5 and 6: Retention and Search and Retrieval of Stored informationThe Hedonic, Experiential Model (HEM) The HEM model better explains how consumers process information when they are carefree, happy, and confronted with positive outcomes. From the HEM perspective, products are more than mere objective entities and are, instead, subjective symbols that precipitate feelings, fun and fantasy.Chapter 6MARCOM OBJECTIVE SETTING AND BUDGETING Chapter Objectives Understand the process of marcom objective setting and the requirements for good objectives. Describe the hierarchy-of-effects model and its relevance for setting marcom objectives. Understand the role of sales as an advertising objective and the logic of vaguely right versus precisely wrong thinking. Understand the nature and importance of marcom budgeting. Explain the relation between a brands share of market (

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