Integrated Brand

Communication
Chapter No. 2
 MARKETING
• Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at
large.
• It is a function within an organization that focuses on
managing customer relationships to benefit all of a brand’s
stakeholders
• all the individuals and groups who have a stake in the success of the
brand. Positive relationships create value for a brand.
 EXCHANGE
• The act of trading something of value (money) for a desired product,
either goods or service.
• The company makes a product and offers it for sale at a certain price;
the customer gives money to the company to buy that product.
Money is exchanged for goods or services – ECONOMIC EXCHANGE
• Marketing communication provides both information (facts, ideas,
brand image cues) and the opportunity for customer–company
interaction – COMMUNICATION EXCHANGE
• In other words, people have to know about it before they can buy it or
sign up for it or donate to it.
 KEY PLAYERS OF MARKETING
• Marketer or Client is any company or organization behind the brand
—that is, the organization, company, or manufacturer
producing the product or service and offering it for sale.
• Suppliers Or Vendors are the companies that produce the materials
and ingredients used in production.
• Distributers or Retailers are various companies involved in moving a
product from its manufacturer to its buyers.
• Marketing Partners are the companies that involve in building
marketing relationships, cooperative programs and alliances
between two companies that work together as to create products
and promotions.
 TYPES OF MARKET
• CONSUMER MARKETS consist of people who buy goods and services for personal or
household use.
• BUSINESS-TO-BUSINESS (B2B) MARKETS consist of companies that buy products or
services to use in their own businesses or in making other products.
• INSTITUTIONAL MARKETS include a wide variety of nonprofit organizations, such as
hospitals, government agencies, and schools that provide services for the benefit of
society.
• CHANNEL MARKETS include members of the distribution chain, which is made up of
businesses we call Resellers, or Intermediaries.
• CHANNEL MARKETING, the process of targeting a specific campaign to members of
the distribution channel, is more important now that manufacturers consider their
distributors to be partners in their marketing programs.
TYPES OF MARKET
 MARKETING PLANNING PROCESS
• MARKETING PROCESS is to create and execute a marketing
plan
• MARKETING PLAN is a document that sets up objectives
and proposes strategies for using marketing elements to
achieve the objectives.
• The process of creating a marketing plan—and managing its
execution—begins with marketing research.
• RESEARCH PROCESS helps marketers make a set of key
strategic and tactical decisions that guide deployment of the
marketing mix.
 MARKETING PLANNING PROCESS
• In this process, FOLLOWING STEPS are involved:
• SITUATION ANALYSIS or SWOT ANALYSIS (Strengths, Weaknesses, Opportunities,
Threats).
• OBJECTIVES SETTING for the marketing campaign
• This step is THREE-FOLDED
 ASSESS consumer needs and wants relative to the product;
 SEGMENT the market into groups that are likely to respond;
 TARGET specific markets
• DIFFERENTIATE AND POSITION THE PRODUCT relative to the competition
• FORMULATE MARKETING MIX STRATEGY - product design and performance criteria,
pricing, distribution, and marketing communication.
• EXECUTE THE STRATEGIES
• EVALUATE THE EFFECTIVENESS OF THE STRATEGY
 KEY CONCEPTS DRIVING MARKETING
• TWO MAJOR PHILOSOPHIES

• Production – Driven Philosophy - historically marketers

developed a product and then found a market for it.

• Marketing – Driven Philosophy - turned Marketers’ Attention

toward consumer needs and wants,
 MARKETING – DRIVEN PHILOSOPHY

• FOCUS ON CONSUMERS
• DIFFERENTIATION, COMPETITIVE ADVANTAGE,
AND POSITIONING
• VALUE ADDITION
 FOCUS ON CONSUMER
• INVOLVES TWO STEPS:
 DETERMINE THROUGH RESEARCH what the customer needs and wants; and
 DEVELOP, MANUFACTURE, MARKET, AND SERVICE GOODS that fill those needs and wants—that
is, create solutions for customers’ problems.
• Marketers are able to match consumer needs and wants to their products
• In business-to business marketing, the customer may even be involved as a
partner in designing a new product or service
• Marketing communication can be designed to acquire consumer feedback
then feeds back into marketing plans, where it can stimulate new product
developments that are better designed to more efficiently and effectively
meet customer needs.
 DIFFERENTIATION, COMPETITIVE ADVANTAGE,
AND POSITIONING
• POSITIONING is formulating the strategies that are informed
by consumers, but led by fundamental marketing decisions
that make the brand stand out as different from its
competition
• COMPETITIVE ADVANTAGE is how a brand is different and
superior in some way
• PRODUCT DIFFERENTIATIOIN is the point of difference is
seen in the way the product is positioned relative to its
competitors.
 ADDED VALUE
• A marketing communication activity that makes the
product more valuable, useful, or appealing to the
consumer.
Adding some extra feature
Increasing the Quality
Adding some news or information
Reducing the price
Adding after-sale service
Making product more convenient for customers
 MARKETING MIX
• Traditional Marketing Mix includes four primary elements,
sometimes referred to as the “FOUR Ps”
• PRODUCT – Any thing that can be offered to market to use,
acquisite or resell
• PRICE – The value of the product
• PLACE – Availability of the product in the reach of customers
• PROMOTION – Making the product persuaded,
communicated and well-defined for building a reputable
position in the minds of customers for increasing the market
share
MARKETING MIX
 MARCOM’S ROLE IN BRANDING
• BRAND is a perception, often imbued with emotion, which results
from experiences with and information about a company or a line of
products
• BRANDING is the management function that creates the tangible
and intangible elements of a brand.
• In fact, all organizations with a name can be considered brands.
• Companies make products but they sell brands.
• A successful brand is the product of both SCIENCE—in the
management of a complex system of activities—and ART—a vision
of the essence of the brand in which all the pieces and parts fit
together perfectly in a coherent brand perception.
 HOW A BRAND ACQUIRES MEANING?
• A BRAND IS A PERCEPTION - An identification that we assign to the products
we know and use.
• A perception loaded with emotions and feelings (intangible elements), not just
a trademark or package design (tangible elements).
• An aggregation of everything a customer (or other stakeholder) sees, hears,
reads, or experiences about a company or a specific brand.
• BRAND TRANSFORMATION A basic principle of branding is that a brand
transforms a product—goods as well as services—into something more
meaningful than the product itself.
• A brand creates value for consumers in the sense that it makes it easier to find
and re-purchase a familiar product.
 KEY COMPONENTS OF A BRAND
• BRAND IDENTITY - If branding works, then you refer to a specific brand by
name, rather than a generic category when
discussing a product.
• BRAND POSITION AND PROMISE – A way to identify the location a product
or brand occupies in consumers’ minds relative to its competitors—higher,
lower, bigger, more expensive.
• BRAND IMAGE AND PERSONALITY
• BRAND IMAGE - A mental picture or idea about a brand that contains
associations—luxury, durable, cheap—as well as emotions.
• BRAND PERSONALITY - The personal qualities of people you know—bold,
fun, exciting, studious, geeky, daring, boring, whatever
SUCCESSFUL BRAND’S CHARACTERISTICS
• DISTINCTIVE - A common name that is unrelated to a product category, such as
Apple for a computer, ensures there will be no similar names creating
confusion.
• ASSOCIATION – Associating the name with some characteristics of a location,
area, or insight in order to highlight the association
• BENEFIT - The brand promise promoted by the company to be delivered with
the brand
• HERITAGE – Reflecting the maker with the brand to deliver the credibility in the
product
• SIMPLICITY - Making a brand name easier to recognize and remember, short
and easy to pronounce.
 DEVELOPING BRAND EQUITY
• BRAND EQUITY - The intangible Value Of The Brand based on the
relationships with its stakeholders, as well as intellectual property, such as
product formulations.
• BRAND VALUE - The power of familiarity and trust to win and maintain
consumer acceptance.
• BRAND VALUE IS TWO FOLDED:
Value to a consumer; and
The value to the corporation
• BRAND RELATIONSHIP - Programs that lead to loyalty are important brand
strategies
• BRAND LOYALTY - Programs that offer rewards for repeat business.
 LEVERAGING BRAND EQUITY
• BRAND EXTENSION - The use of an established brand name
with a related line of products.
• CO-BRANDING - A strategy that uses two brand names owned
by two separate companies to create a partnership offering.
• BRAND LICENSING – When a partner company rents the brand
name and transfers some of its brand equity to another
product.
• INGREDIENT BRANDING - the use of a brand name for a
component used in manufacturing in advertising and other
promotion.
 WHY INTEGRATED MARKETING COMMUNICATION?
• INTEGRATED MARKETING COMMUNICATION (IMC) is the
practice of unifying all marketing communication messages
and tools as well as the messages from the marketing mix
decisions, so that they send a consistent message promoting
the brand’s strategy.
• TOTAL BRAND COMMUNICATION - IMC is, among other
things, a process for doing advertising and promotion better
and more effectively in the process of building brands.
• ORGANIZING FOR IMC - The coordination of all of the
agencies involved in creating the various brand messages.
WHY INTEGRATED MARKETING COMMUNICATION?
 IMC PRINCIPLES AND PRACTICES
• FIRST PRINCIPLE OF IMC: Everything communicates
PRACTICE 1.1: Everything in the marketing mix can send a message.
PRACTICE 1.2: Everything a brand does, and sometimes what it doesn’t do,
can send a message.
• SECOND PRINCIPLE OF IMC: A brand is a unified vision (the
art) and a complex system (the science).
• THIRD PRINCIPLE OF IMC: Brand relationships drive brand
value.
• FOURTH PRINCIPLE OF IMC: You can’t be integrated
externally if you are not integrated internally
BRAND COMMUNICATION IN A TIME OF CHANGE
• ACCOUNTABILITY - Marketing managers are being challenged
by senior management to prove that their decisions lead to
the most effective marketing strategies.
• GLOBAL MARKETING - In most countries markets are
composed of local, regional, international, and global brands.
LOCAL BRAND - one marketed in a single country.
REGIONAL BRAND - one marketed throughout a region
INTERNATIONAL BRAND - available in a number of different countries in
various parts of the world.
GLOBAL BRAND - available virtually everywhere in the world, such as Coca-
Cola