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Ders Kitabı - Promotion Management

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0% found this document useful (0 votes)
132 views48 pages

Ders Kitabı - Promotion Management

Uploaded by

Deniz Köşe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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This is a special edition of an established title widely used by colleges and

GLOBAL universities throughout the world. Pearson published this exclusive edition
for the benefit of students outside the United States and Canada. If you
GLOBAL
EDITION purchased this book within the United States or Canada, you should be aware EDITION

EDITION
GLOB AL
that it has been imported without the approval of the Publisher or Author.

Advertising and marketing today face a rapidly shifting media environment where the number
Integrated Advertising,

Integrated Advertising, Promotion, and


of ways to connect and interact with consumers has never been bigger. Amid the cacophony of
messages across these various channels, firms must speak with a single, clear voice that coordinates
Promotion, and

Marketing Communications
and integrates all marketing tools.

Marketing Communications
The ninth edition of Integrated Advertising, Promotion, and Marketing Communications continues to
expand its coverage of marketing communications tools, avenues, and sources, all of which must
cohere into seamless strategic programs in order to engage customers. Real-world examples of
marketing communications principles and a huge selection of advertisements, from large brands
as well as small businesses, give students practical insights into the effective management of every
communication channel. NINTH EDITION
Key Features
• NEW and UPDATED—Coverage of social media, digital media, and mobile marketing
has been expanded to include current industry practices.
• NEW and UPDATED—A short vignette at the beginning of each chapter presents a business
story about a company or product, which introduces the key concepts to be covered.
• NEW and UPDATED—Cases at the end of each chapter provide students with scenarios that
test their understanding of the chapter material and their ability to apply what they have learned.
• Each chapter contains a section called International Implications, which examines the major
topics covered in the chapter from the perspective of global marketing.

Available for purchase separately is MyLab Marketing for Integrated Advertising, Promotion, and

EDITION
NINTH
Marketing Communications, an optional suite of course-management and assessment tools that
allow instructors to set and deliver courses online, tailored to the needs of their students. When
combined with Pearson’s trusted content, MyLab Marketing delivers learning outcomes that
enhance a student’s comprehension and experience.

Also available separately for purchase is Revel for Integrated Advertising, Promotion, and Marketing
Communications, an interactive digital learning environment with media resources and assessments,

Clow • Baack
which provide opportunities for reading and practicing course material in tandem.

Kenneth E. Clow
Donald Baack

CVR_CLOW1217_09_GE_CVR_Vivar.indd 1 10/06/21 2:06 PM


Integrated Advertising,
Promotion, and Marketing
Communications

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Integrated Advertising,
Promotion, and Marketing
Communications
N i nth E d i ti o n

G l o b al E d i ti o n

Kenneth E. Clow
University of Louisiana at Monroe

Donald Baack
Pittsburg State University

Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Dubai • Singapore • Hong Kong
Tokyo • Seoul • Taipei • New Delhi • Cape Town • São Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan

A01_CLOW1217_09_GE_FM.indd 3 10/06/2021 16:20


Pearson Education Limited
KAO Two
KAO Park
Hockham Way
Harlow
Essex
CM17 9SR
United Kingdom

and Associated Companies throughout the world

Visit us on the World Wide Web at: www.pearsonglobaleditions.com

© Pearson Education Limited 2022

The rights of Kenneth E. Clow and Donald Baack to be identified as the authors of this work have been asserted by them in accordance
with the Copyright, Designs and Patents Act 1988.

Authorized adaptation from the United States edition, entitled Integrated Advertising, Promotion, and Marketing Communications, 9th
edition, ISBN 978-0-13-558980-9, by Kenneth E. Clow and Donald Baack published by Pearson Education © 2022.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any
means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a
license permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby
Street, London EC1N 8TS.

PEARSON, ALWAYS LEARNING, REVEL, and MYLAB are exclusive trademarks owned by Pearson Education, Inc. or its affiliates
in the U.S. and/or other countries.

All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or
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endorsement of this book by such owners. For information regarding permissions, request forms, and the appropriate contacts within the
Pearson Education Global Rights and Permissions department, please visit www.pearsoned.com/permissions.

British Library Cataloguing-in-Publication Data


A catalogue record for this book is available from the British Library

ISBN 10: 1-292-41121-X


ISBN 13: 978-1-292-41121-7
eBook ISBN 13: 978-1-292-41134-7

This eBook is a standalone product and may or may not include all assets that were part of the print version. It also does not provide
access to other Pearson digital products like MyLab and Mastering. The publisher reserves the right to remove any material in this eBook
at any time.

Cover Photo: peterschreiber.media/Shutterstock


Typeset in Times LT Pro 10.5/12 by Straive
eBook formatted by Straive
To my sons Dallas, Wes, Tim, and Roy, who provided
­encouragement, and especially to my wife, Susan, whose
­sacrifice and love made this textbook possible.
Kenneth E. Clow

I would like to dedicate my efforts and contributions to this


edition to my friend, Kenneth E. Clow, and his wife, Susan.
Thanks for everything, Ken.
Donald Baack

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Brief Contents

PART 1 | THE IMC FOUNDATION 21

1 Integrated Marketing Communications 21


2 Brand Management 42
3 Buyer Behaviors 71
4 The IMC Planning Process 102

PART 2 | IMC ADVERTISING TOOLS 129

5 Advertising Campaign Management 129


6 Advertising Design 159
7 Traditional Media Channels 195

PART 3 | DIGITAL, MOBILE, AND ALTERNATIVE MARKETING 227

8 Digital and Mobile Marketing 227


9 Social Media 253
10 Alternative Marketing 278

PART 4 | IMC PROMOTIONAL TOOLS 303

11 Database and Direct Response Marketing


and Personal Selling 303
12 Sales Promotions 331
13 Public Relations and Sponsorship Programs 357

PART 5 | IMC ETHICS, REGULATION, AND EVALUATION 381

14 Regulations and Ethical Concerns 381


15 Evaluating an Integrated Marketing Program 408

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Contents Your Career: 36
Summary 37 • Key Terms 37 • Review Questions 38 •
Critical Thinking Exercises 38 • Integrated Learning Exercises 39 •
Blog Exercises 39 • Student Project 39
CASE 1 KFC Changes Spokespersons 40
Preface 15
CASE 2 Mike’s Old-Time Ice Cream and Chocolate Shop 40

2  BRAND
MANAGEMENT 42
Corporate and Brand Image 43
Components of Brand Image 44
The Role of Brand Image—Consumer Perspective 46
The Role of Brand Image—Company Perspective 47
Brand Names and Brand Types 48
Family Brands 51
Brand Extensions 51
Flanker Brands 51
Co-Branding 52
Brand Logos 53
Identifying the Desired Brand Image 55
Creating the Right Brand Image 56
Rejuvenating a Brand’s Image 56
Changing a Brand’s Image 57
Developing and Building Powerful Brands 58
Brand Loyalty 60
THE
 IMC
PART 1 FOUNDATION 21
Brand Equity 60
Private Brands 61

1
Advantages to Retailers 62
 INTEGRATED MARKETING Responses from Manufacturers 62
COMMUNICATIONS 21 Packaging 63
Labels 63
The Nature of Communication 21
Ethical Issues in Brand Management 64
Integrated Marketing Communications 25
International Implications 64
An Integrated Marketing Communications Plan 26
Emerging Trends in Marketing Communications 26 Your Career: A Personal Brand 65
Emphasis on Accountability and Measurable Results 26 Summary 66 • Key Terms 66 • Review Questions 67 •
Mobile Marketing 27 Critical Thinking Exercises 67 • Integrated Learning Exercises 68 •
Integration of Media Platforms 28 Blog Exercises 68 • Student Project 68
Changes in Channel Power 29 CASE 1 Creating a Company Name 69
Increases in Global Competition 29 CASE 2 Brand Alliances and Brand Resurrections 70
Increases in Brand Parity 30
Emphasis on Customer Engagement 30

3
Focus on Convenience 30
Cause-related Marketing and Advertising 30  BUYER
The Role of Integrated Marketing Communications 32 BEHAVIORS 71
IMC Components and the Design of this Text 32 Information Searches and the Consumer Purchasing
IMC Foundation 33 Process 72
Advertising 33 Internal Search 73
Digital, Mobile, and Alternative 34 External Search 73
Selling Components 34 Consumer Attitudes 76
Integration 35 Consumer Values 78
International Implications 36 Cognitive Mapping 78

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Contents 9

Evaluation of Alternatives 81 Product Positioning 115


The Evoked Set Method 81 Approaches to Positioning 116
The Multiattribute Approach 82 Other Elements of Positioning 117
Affect Referral 83 Marketing Communications Objectives 118
Trends in the Consumer Buying Environment 84 Types of Budgets 119
Age Complexity 84 Percentage of Sales 119
Gender Complexity 84 Meet the Competition 119
Active, Busy Lifestyles 84 “What We Can Afford” 119
Diverse Lifestyles 85 Objective and Task 120
Communication Revolution 85 Payout Planning 120
Experience Pursuits 85 Quantitative Models 120
Health Emphasis 86 Communications Schedules 120
Business-to-Business Buyer Behaviors and Influences 87 IMC Components 121
Organizational Influences 87 International Implications 122
Individual Factors 88
Your Career: Planning Process 123
Types of Business-to-Business Sales 90
Summary 124 • Key Terms 124 • Review Questions 125 •
The Business-to-Business Buying Process 91
Critical Thinking Exercises 125 • Integrated Learning
Identification of Needs 91
Exercises 126 • Blog Exercises 126 • Student Project 127
Establishment of Specifications 92
Identification of Vendors 92 CASE 1 Landscape Designs and Moore 127
Vendor Evaluation 92 CASE 2 Phase 2 Fitness Center 128
Vendor Selection 92
Negotiation of Terms 93
Postpurchase Evaluation 93
Dual Channel Marketing 93
Spin-Off Sales 93
Marketing Decisions 93
International Implications 94
Your Career: Buyer Behaviors and Career Choices 95
Summary 95 • Key Terms 96 • Review Questions 96 •
Critical Thinking Exercises 97 • Integrated Learning Exercises 98 •
Blog Exercises 98 • Student Project 99
CASE 1 Electric, Hybrid, or Fossil Fuel? 99
CASE 2 Choosing A Life Insurance Policy 100

4  THE IMC PLANNING


PROCESS 102
Communications Research 102
Market Segmentation by Consumer Groups 104
IMC ADVERTISING
Segments Based on Demographics 105 PART 2
Psychographics 109 TOOLS 129
Based on Generations 111

5  ADVERTISING CAMPAIGN
Segmentation by Geographic Area 112
Geodemographic Segmentation 112
Benefit Segmentation 112
MANAGEMENT 129
Usage Segmentation 113 Advertising Theory 129
Business-to-Business Market Segmentation 114 Hierarchy of Effects 129
Segmentation by Industry 114 Means–End Theory 131
Segmentation by Size 114 Verbal and Visual Images 132
Segmentation by Geographic Location 114 The Impact of Advertising Expenditures 135
Segmentation by Product Usage 115 Threshold Effects 136
Segmentation by Customer Value 115 Diminishing Returns 136

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10 Contents

Carryover Effects 136 Scarcity Appeals 176


Wear-Out Effects 137 Executional Frameworks 177
Decay Effects 137 Animation Executions 177
In-House versus External Advertising Agencies 137 Slice-of-Life Executions 177
Budget Allocation Considerations 139 Storytelling Executions 178
Crowdsourcing 139 Testimonial Executions 178
Choosing an Agency 140 Authoritative Executions 179
Goal Setting 140 Demonstration Executions 180
Selection Criteria 141 Fantasy Executions 180
Creative Pitch 142 Informative Executions 180
Agency Selection 143 Sources and Spokespersons 181
Roles of Advertising Personnel 143 Celebrity Spokespersons 182
Account Executives 143 CEO Spokespersons 183
Creatives 143 Experts 184
Traffic Managers 143 Typical Persons 184
Account Planners 144 Source Characteristics 184
Data Scientists 144 Matching Source Types and Characteristics 186
Digital and Social Media Managers and Consultants 144 International Implications 188
Specialist Positions 144
Your Career: Resume and Application Letter Design 188
Advertising Campaign Parameters 144
Summary 189 • Key Terms 189 • Review Questions 190 •
Advertising Goals 145
Critical Thinking Exercises 190 • Integrated Learning
Media Selection 146
Exercises 191 • Blog Exercises 192 • Student Project 192
Taglines 147
CASE 1 Home Security Marketing 192
Consistency 148
Positioning 149 CASE 2 Felicity’s Fine Formalwear 193
Campaign Duration 149

7
The Creative Brief 149
The Objective 150  TRADITIONAL MEDIA
The Target Audience 150 CHANNELS 195
The Message Theme 150
The Media Strategy 196
The Support 151
The Constraints 151 Media Planning 197
Media Planners 198
International Implications 152
Media Buyers 198
Your Career: Advertising Theory and a Job Search 153 Small versus Large Markets 199
Summary 153 • Key Terms 154 • Review Questions 154 • Advertising Terminology 199
Critical Thinking Exercises 155 • Integrated Learning Frequency 199
Exercises 155 • Blog Exercises 156 • Student Project 156 Opportunities to See 200
CASE 1 YouWearz 157 Gross Rating Points 200
CASE 2 Jake’s Trophy Shop 158 Cost 200
Ratings and Cost per Rating Point 200
Continuity 202

6
Impressions 203
 ADVERTISING
Achieving Advertising Objectives 203
DESIGN 159 The Three-Exposure Hypothesis 203
Message Strategies 159 Recency Theory 203
Cognitive Message Strategies 161 Effective Reach and Frequency 204
Affective Message Strategies 164 Brand Recognition 204
Conative Message Strategy 165 Brand Recall 205
Types of Advertising Appeals 166 Media Selection 205
Fear Appeals 166 Television 205
Humor Appeals 168 Radio 211
Sex Appeals 170 Out-of-Home Advertising 213
Music Appeals 173 Print Media 214
Rational Appeals 174 Magazines 215
Emotional Appeals 175 Newspapers 217

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Contents 11

Media Mix 218 Search Engine Optimization (SEO) 245


Media Selection in Business-to-Business International Implications 246
Markets 219
Your Career: Digital Marketing 247
International Implications 220
Summary 248 • Key Terms 248 • Review Questions 249 •
Your Career: Your First Job 221 Critical Thinking Exercises 249 • Integrated Learning
Summary 221 • Key Terms 222 • Review Questions 222 • Exercises 249 • Blog Exercises 250 • Student Project 251
Critical Thinking Exercises 223 • Integrated Learning CASE 1 Koro to Majin 251
Exercises 224 • Blog Exercises 224 • Student Project 224 CASE 2 The Hyena’s Den 252
CASE 1 RadinPlay 225

9
CASE 2 Cindy’s Auto Body Repair Shop 226
 SOCIAL
MEDIA 253
Social Networks 253
Social Media Sites 255
Facebook 255
YouTube 256
Instagram 258
Twitter 259
Pinterest 259
Snapchat 260
TikTok 260
Social Media Marketing 261
Social Media Marketing Strategies 264
Building a Social Media Presence 265
Content Seeding 265
Behavioral Targeting 266
Real Time Marketing 266
Video Marketing 267
Influencer Marketing 268
Interactive Blogs 270
Consumer-Generated Reviews 270
Viral Marketing 271
DIGITAL, MOBILE, AND
PART 3 International Implications 272
ALTER­NATIVE MARKETING 227
Your Career: Social Media 272

8
Summary 273 • Key Terms 273 • Review Questions 274 •
 DIGITAL AND MOBILE
Critical Thinking Exercises 274 • Integrated Learning
MARKETING 227 Exercises 275 • Blog Exercises 275 • Student Project 276
Digital Marketing 228 CASE 1 Shelby’s Stables 276
Consumer Shopping Patterns 228 CASE 2 L’Oréal 277
E-Commerce 230

10
Mobile Marketing 234
Digital Strategies 236
 ALTERNATIVE
Interactive Marketing 236 MARKETING 278
Content Marketing and Native Advertising 237 Alternative Marketing Programs 278
Location-Based Advertising 239 Buzz Marketing 280
Remarketing 240 Consumers Who Like a Brand 280
Behavioral Targeting 240 Sponsored Consumers 280
Blogs, Podcasts, and Newsletters 241 Company Employees 281
Email Marketing 242 Buzz Marketing Stages 282
Web Advertising 243 Buzz Marketing Preconditions 282
Programmatic Advertising 243 Buzz Marketing and Fund Raising 283
Impact of Online Advertising 244 Stealth Marketing 283
Offline Advertising 245 Guerrilla Marketing 283

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12 Contents

Lifestyle Marketing 285 Purchase and Communication Histories 306


Experiential Marketing 285 Personal Preference Profiles 306
Product Placements and Branded Customer Information Companies 306
Entertainment 286 Geocoding 306
Product Placements 286 Database Coding and Analysis 307
Branded Entertainment 287 Lifetime Value Analysis 307
Achieving Success 288 Customer Clusters 307
Location Data Tracking 308
Alternative Media Venues 289
Data Mining 308
Video Game Advertising 289
Cinema Advertising 291 Database-Driven Marketing Communications 309
Other Alternative Media 292 Identification Codes 309
Personalized Communications 310
In-Store Marketing 293
Customized Content 310
In-Store Marketing Tactics 293
Inbound Telemarketing 310
Point-of-Purchase Marketing 293
Trawling 310
Designing Effective Point-of-Purchase Displays 294
Measuring Point-of-Purchase Effectiveness 295 Database-Driven Marketing Programs 311
Permission Marketing 312
Brand Communities 295
Frequency Programs 314
International Implications 296
Customer Relationship Management 315
Your Career: Alternative Marketing 297 Direct Response Marketing 316
Summary 297 • Key Terms 298 • Review Questions 298 • Mobile Marketing 317
Critical Thinking Exercises 299 • Integrated Learning Direct Mail 317
Exercises 300 • Blog Exercises 300 • Student Project 301 Catalogs 318
CASE 1 Alternative Marketing: Ethnic Holidays 301 Traditional Media 318
Search Engines and Email 318
CASE 2 Matt and Jerry’s Disc Golf Course 302
Direct Sales 319
Telemarketing 319
Personal Selling 320
Generating Leads 320
Qualifying Prospects 321
Knowledge Acquisition 322
The Sales Presentation 322
Handling Objections 323
Closing the Sale 323
Follow-Up 323
International Implications 324
Your Career: Selling Yourself 325
Summary 325 • Key Terms 326 • Review Questions 326 •
Critical Thinking Exercises 327 • Integrated Learning
Exercises 328 • Blog Exercises 328 • Student Project 329
CASE 1 Salon Sensational 329
CASE 2 Turkbit 330

PART 4
IMC PROMOTIONAL
TOOLS 303 12  SALES
PROMOTIONS
Consumer Promotions 332
331

11
Coupons 333
 DATABASE AND DIRECT
Coupon Distribution 333
RESPONSE MARKETING AND Disadvantages of Coupons 334
PERSONAL SELLING 303 Premiums 335
Database Marketing 303 Types of Premiums 335
Building a Data Warehouse 304 Keys to Successful Premium Programs 336
Email, Mobile, and Internet Data 305 Contests and Sweepstakes 336

A01_CLOW1217_09_GE_FM.indd 12 10/06/2021 16:20


Contents 13

Contests 337 Event Marketing 372


Sweepstakes 337 Selecting Sponsorships and Events 372
Perceived Value 337 Determining Objectives 373
The Internet and Social Media 338 Matching the Audience to the Company’s Target
Goals of Contests and Sweepstakes 338 Market 373
Refunds and Rebates 338 Promoting the Event 373
Sampling 339 Advertising at the Event 373
Sample Distribution 339 Tracking Results 374
Benefits of Sampling 339 Cross-Promotions 374
Successful Sampling Programs 340 International Implications 374
Bonus Packs 340
Your Career: Public Relations 375
Types of Bonus Packs 340
Keys to Successful Bonus Packs 341 Summary 375 • Key Terms 376 • Review Questions 377 •
Price-Offs 341 Critical Thinking Exercises 377 • Integrated Learning
Benefits of Price-Offs 341 Exercises 378 • Blog Exercises 379 • Student Project 379
Problems with Price-Offs 342 CASE 1 Esports: Creating New Sponsorship Opportunities 379
Overlays and Tie-Ins 342 CASE 2 Coconuts: A Picking Problem 380
Planning for Consumer Promotions 342
Trade Promotions 344
Trade Allowances 344
Trade Contests 346
Trade Incentives 346
Trade Shows 348
Concerns with Trade Promotions 350
International Implications 350
Your Career: Sales Promotions 351
Summary 351 • Key Terms 352 • Review Questions 352 •
Critical Thinking Exercises 353 • Integrated Learning
Exercises 354 • Blog Exercises 354 • Student Project 354
CASE 1 Marketing Sports Equipment 355
CASE 2 Razor Wars and Sales Promotion Tactics 356

13  PUBLIC RELATIONS AND


SPONSORSHIP PROGRAMS
Public Relations 357
357

Internal versus External Public Relations 359


Public Relations Tools 359 IMC ETHICS, REGULATION,
PART 5
Public Relations Functions 359 AND EVALUATION 381
Identifying Stakeholders 360

14
Internal Stakeholders 360
External Stakeholders 361
 REGULATIONS AND
Assessing Corporate Reputation 361 ETHICAL CONCERNS 381
Corporate Social Responsibility 363 Marketing Communications Regulations 381
Creating Positive Image-Building Activities 363 Governmental Regulatory Agencies 381
Cause-Related Marketing 364 The Federal Trade Commission 383
Green Marketing and Pro-Environmental Activities 365 Unfair and Deceptive Marketing Practices 383
Preventing or Reducing Image Damage 367 Deception Versus Puffery 384
Proactive Prevention Strategies 367 Substantiation of Marketing Claims 384
Reactive Damage-Control Strategies 368 How Investigations Begin 386
The Coronavirus Challenge 370 FTC Settlements 387
Sponsorships 370 Consent Order 387
Forms of Sponsorships 370 Administrative Complaints 388
Sponsorship Objectives 372 Courts and Legal Channels 388

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14 Contents

15
Corrective Advertising 389
 EVALUATING AN INTEGRATED
Trade Regulation Rulings 389
Industry Oversight of Marketing Practices 390
MARKETING PROGRAM 408
Council of Better Business Bureaus 390 Evaluation Metrics 408
IMC and Ethics 393 Matching Methods with IMC Objectives 411
Ethics and Advertising 393 Message Evaluations 412
Perpetuating Stereotypes 393 Advertising Tracking Research 412
Advertising Unsafe Products 394 Copytesting 415
Offensive Advertisements 394 Emotional Reaction Tests 417
Advertising to Children 395 Cognitive Neuroscience 418
Marketing and Ethics 395 Evaluation Criteria 419
Brand Infringement 395 Online Evaluation Metrics 421
Marketing of Professional Services 396
Behavioral Evaluations 424
Gifts and Bribery in Business-to-Business Marketing
Test Markets 426
Programs 396
Purchase Simulation Tests 428
Spam and Cookies 397
Ambush Marketing 397 International Implications 428
Stealth Marketing 399 Your Career: Evaluating a Job Search Process 429
Responding to Ethical Challenges 400 Summary 429 • Key Terms 430 • Review Questions 430 •
Ethics Programs 400 Critical Thinking Exercises 430 • Integrated Learning
Ethics Training Programs 401 Exercises 431 • Blog Exercises 432 • Student Project 432
Codes of Ethics 401
CASE 1 The Vaseline Healing Project 432
Ethics Consulting Systems 401
CASE 2 Home Repair Referrals: Two Levels of Evaluation 433
International Implications 402
Your Career: Ethics and Social Responsibility 402
Summary 403 • Key Terms 403 • Review Questions 404 •
Critical Thinking Exercises 404 • Integrated Learning
Endnotes 435
Exercises 405 • Blog Exercises 406 • Student Project 406
CASE 1 FanDuel, DraftKings, and Legalized Sports Gambling 406 Name Index 451
CASE 2 Herbal Remedies, Oils, and Alternative Medicine 407 Subject Index 459

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Preface

A
dvertising, promotions, and communications remain integral components of mar-
keting. For marketing majors, understanding how companies effectively commu-
nicate and interact with customers and potential customers creates the foundation
they need to develop effective marketing skills. This will help our readers succeed in their
marketing careers.
If your students are not marketing majors, consider the role of marketing commu-
nications around them. Any company or organization they work for will be involved in
marketing its products or services. Knowing how organizations develop marketing com-
munications constitutes valuable knowledge. It helps students recognize the methods used
by people in the marketing departments where they will work and provides them with
better information to function as consumers.
We continue to refine Integrated Advertising, Promotion, and Marketing Communications,
in part, to help students understand the importance of integrating all marketing communications
(IMC) and how they are produced and transmitted. When the first edition was written, most
marketing communication textbooks focused primarily on advertising. As your students
know from their everyday experiences and the courses they have taken in college, marketing
communications incorporates much more. It includes promotions, such as coupons, price
discounts, and contests. Marketing has expanded to extensive use of mobile marketing, social
media, internet programs, customer product reviews, instant messaging, and other programs,
such as buzz marketing and stealth marketing. These venues create vital links to effectively
reach consumers. These should be carefully integrated into one clear message and voice for
customers to hear and see. We created this textbook and the additional materials in ways that
will best help your students to understand integrated marketing communications.

What’s New in the Ninth Edition?


The ninth edition of Integrated Advertising, Promotion, and Marketing Communications
offers several new features.

• Emphasis on social media. One of the most rapidly evolving aspects of advertising
and promotion has been the increased use of social media. This edition expands cov-
erage of the ways companies currently use social media for marketing purposes and
how it is integrated with other communication strategies.
• Updated digital media chapter. Digital media and especially mobile devices have
changed the ways companies market products. The digital media chapter has been
updated with information about the most current industry practices.
• Updated mobile marketing content. Digital media channels and especially mobile
devices have changed. The sections on mobile marketing have been expanded to
coincide with a shift of marketing dollars to those activities.
• New opening vignettes and cases. Many of the chapter opening vignettes and cases
are new to this edition. We have new vignettes that feature issues such as incidents
of racism and company responses, the growth of influencer marketing, co-marketing
programs, programmatic advertising, chatbots, and the role of marketing communica-
tions in holiday celebrations.
• New advertisements. Throughout the text, more than 100 new advertisements have
been incorporated into the chapters, including many brands such as Walgreens,
Starburst, Interstate Batteries, V8, GEICO, Home Depot, and Dick’s Sporting Goods,
along with ads for smaller, independent businesses.
• Updated examples. New examples of marketing communications principles have
been incorporated to provide relevant information about companies. 15

A01_CLOW1217_09_GE_FM.indd 15 10/06/2021 16:20


16 Preface

• Active blog. We continue to maintain the book blog at blogclowbaack.net. It pro-


vides information and examples from current events that relate to the materials in each
chapter. Instructors can use these blog entries to enhance classroom presentations or
as assignments for individual students or even small groups.

Additional Chapter-by-Chapter Changes


in This Edition
All Chapters New blog exercises
Updated examples of concepts regarding newer companies and programs
Notation of preliminary effects of the coronavirus outbreak on marketing
communications (also found in authors’ blog)
New advertisements
Chapter 1 New “Lending Tree” opening vignette
Update on models of communication
New materials regarding emerging trends in marketing communications
(convenience, cause-related programs)
New Introduction to “Your Career”
New case: “KFC Changes Spokespersons”
Chapter 2 New “Michelin” opening vignette
Updates on brands and logos
New “Your Career: A Personal Brand”
New case: “Creating a Company Name”
Chapter 3 Notation of the role of influencers in marketing programs
New “Your Career: Buyer Behaviors and Career Choices”
New case: “Electric, Hybrid, or Fossil Fuel?”
Chapter 4 New “Co-marketing and IMC” opening vignette
Updated segmentation by consumer groups presentation
Refinement of marketing communications objectives section
New “Your Career: Planning Process”
New case: “Landscape Designs and Moore”
Chapter 5 Update on crowdsourcing
Additional content on roles of advertising personnel, including specialist positions
Expanded section regarding the creative brief
New “Your Career: Advertising Theory and a Job Search”
New “Creative Corner” for preparing a creative brief
New case: “YouWearz”
Chapter 6 Analysis of a key source/spokesperson characteristic: Personal character
New “Your Career: Resume and Application Letter Design”
New case: “Home Security Marketing”
Chapter 7 New “Mother’s Day Marketing” opening vignette
Continued importance of traditional media advertising, noted in introduction
Cites cord cutting as a key new issue
Identifies provider fragmentation in television
Discusses connection between YouTube and television
Spells out role of local radio
New “Your Career: Your First Job”
New case: “RadinPlay”

A01_CLOW1217_09_GE_FM.indd 16 10/06/2021 16:20


Preface 17

Chapter 8 New “Artificial Intelligence, Programmatic Advertising, and Chatbots” opening


vignette
Additional mobile marketing emphasis in chapter content
Updates to consumer shopping patterns presentation
Describes offline marketing integration systems
Notes consumer-to-consumer (C2C) marketing
New “Your Career: Digital Marketing”
New case: “Koro to Majin”
New case: “The Hyena’s Den”
Chapter 9 Additional discussion of popular social media sites
Added material to social media marketing section, including a caution
New section regarding influencer marketing
New “Your Career: Social Media”
New case: “L’Oréal”
Chapter 10 New “The Country Music Awards” opening vignette
Section regarding buzz marketing and fund raising
Expansion of video game marketing discussion
New “Your Career: Alternative Marketing”
New case: “Alternative Marketing: Ethnic Holidays”
Chapter 11 Current examples throughout the chapter
New “Your Career: Selling Yourself”
New case: “Turkbit”
Chapter 12 New “Mentos: Gumming Up an IMC Program” opening vignette
Addition of materials about how consumer promotions also apply to services
New “Your Career: Sales Promotions”
New case: “Marketing Sports Equipment”
Chapter 13 New “Racism Incidents and Public Relations” opening vignette
Update on greenwashing
Special section on coronavirus
New “Your Career: Public Relations”
New case: “Esports: Creating New Sponsorship Opportunities”
New case: “Coconuts: A Picking Problem”
Chapter 14 New “Lumosity Pays $2 Million Settlement” opening vignette
Update on comparison advertising
Changes to ethics sections
New “Your Career: Ethics and Social Responsibility”
New case: “Herbal Remedies, Oils, and Alternative Medicine”
Chapter 15 New “Closing the Loop: Interstate Batteries” opening vignette
New content on emotional advertising evaluation
Evaluation of combination approaches to marketing communications
New “Your Career: Evaluating a Job Search Process”
New case: “Home Repair Referrals: Two Levels of Evaluation”

Solving Teaching and Learning


Challenges
In each edition of this textbook, we have created and updated devices to help students learn
the materials being presented. For many students, advertising and marketing communica-
tions are already interesting and enjoyable subjects. These materials were developed to
make learning interactive and fun.

A01_CLOW1217_09_GE_FM.indd 17 10/06/2021 16:20


18 Preface

• Lead-in Vignettes. Each chapter begins with a short vignette related to the topic to
be presented. The majority of these updated vignettes revolve around success stories
in companies and about products most students will recognize. They help introduce
your students to the concepts presented throughout the chapter.
• International Marketing Issues. A section called “International Implications”
appears at the end of every chapter.
• Cases. A new case appears in each chapter. These cases provide plausible scenarios
that require careful consideration and review of chapter materials.
• Your Career. At the conclusion of each chapter, the subject matter is applied to indi-
vidual students and their efforts to succeed in the coming years. These features were
written to offer career advice while also integrating materials from the chapter in a
new and different way.
• Critical Thinking Exercises and Discussion Questions. The end-of-chapter materi-
als include a variety of exercises designed to help students comprehend and apply the
chapter concepts. These exercises are designed to challenge students’ thinking and
encourage them to dig deeper. The best way to verify that your students have truly
learned a concept or theory is to see them apply it to a different situation.
• Integrated Learning Exercises. At the end of each chapter, a set of questions guides
students to the internet to access information that ties into the subject matter covered.
• Blog Exercises. This edition offers a set of exercises from the authors’ blog. These
exercises can be fun for students and can be used for individual or group assignments.
Some are ideal for classroom instruction or to gain the interest of students at the begin-
ning of class.
• Creative Corner Exercises. Most students enjoy the opportunity to use their creative
abilities. As a result, we feature a new exercise called the “Creative Corner,” which asks
students to design advertisements and other marketing-related materials. The exercises
are intended to help students realize they are more creative than they might think.

Instructor Resources For more information and resources, visit www


.pearsonglobaleditions.com.

Acknowledgments
We would like to thank the following individuals who assisted in the development of this
edition and previous editions through their careful and thoughtful reviews:
Jeffrey C. Bauer, University of Cincinnati–Clermont
John Bennett, University of Missouri–Columbia
Debbie Campbell, Temple University
MaryEllen Campbell, University of Montana, Missoula
Susan Carder, Northern Arizona University
Jerome Christia, Coastal Carolina University
Sherry Cook, Missouri State University
Catherine Curran, University of Massachusetts–Dartmouth
Linden Dalecki, Pittsburg State University
Michael A. Dickerson, George Mason University
Steve Edwards, Southern Methodist University
Donna Falgiatore, St. Joseph’s University
Larry Goldstein, Iona College
Charles S. Gulas, Wright State University

A01_CLOW1217_09_GE_FM.indd 18 10/06/2021 16:20


Preface 19

Kathleen Havey, University of Maryland


Diana Haytko, Missouri State University
Jiyoung Hwang, University of North Carolina at Greensboro
Joni Jackson, Robert Morris University
Bryan Johnson, Pennsylvania State University
Charles Larson, Northern Illinois University
Al Mattison, University of California–Berkeley
Diane Mauro, Harrisburg Area Community College
Rick Morris, University of North Texas
Deanna Mulholland, Iowa Western Community College
Jim Munz, Illinois State University
Prema Nakra, Marist College
Laurel Schirr, VA Polytech Institute/State University
Charlie Schwepker, University of Central Missouri
Eugene Secunda, New York University
Allen E. Smith, Florida Atlantic University
Bonni Stachowiak, Vanguard University
Jennifer Sundstrom Fitzgerald, Temple University
Amanda Walton, Indiana Business College
Rod Warnick, University of Massachusetts–Amherst
Patti Williams, Wharton Business School

Although many individuals assisted us with advertising programs, we want to thank


a few who were particularly helpful. We appreciate the owners and employees of Zehnder
Communications, Choice Marketing, and Origin Bank for providing a large number of
advertisements. We especially want to thank Jeff Zehnder from Zehnder Communications
as well as Karen Plott and Dave Woods from Choice Marketing for their assistance. Garrett
Ramsey and his co-workers at Ramsey Mediaworks; Stan Richards, Mary Price, Dave
Snell, Elena Petukhova, and Carrie Dyer from The Richards Group; Charlie Brim, Felicia
Cruz, and Haley Horn from Interstate Batteries; and Lee McGuire from Skyjacker were
very generous with their time. Thanks go to W. Peter Cornish, former senior vice president
for the J. Walter Thompson company and current professor at the University of South
Carolina for his inputs and advice.
On a personal note, we wish to thank many individuals at our publisher, Pearson
Education, including Leah Johnson, who signed us for the first edition of the book. Thank
you to Lynn Huddon and Yasmita Hota for their work on this edition, plus Stephanie Wall,
Mark Gaffney, Jennifer Collins, Jackie Martin, and Ashley Santora for helping with previ-
ous editions. We appreciate Kathy Smith and Nicole Suddeth at SPi Global for guiding
the editing and production processes. Finally, we would like to thank the entire Pearson
production group.
Donald Baack would like to acknowledge Mimi Morrison for her continued assistance
in all his work at Pittsburg State University.

Final Note As some of you may know, Ken Clow had become ill when preparations
for this ninth edition began. After some thought, he enthusiastically decided to continue
work on it, even as his health failed. He passed away in late 2018, with one of his final
wishes being that this work would come to life. Ken will be sorely missed by all who knew
him and especially those of us who had the great privilege of working with him on this and
other projects. His personable, friendly, easygoing temperament, plus his love of learning
and teaching, provide wonderful life lessons.

A01_CLOW1217_09_GE_FM.indd 19 10/06/2021 16:20


20 Preface

In past editions of this textbook, Ken thanked the University of Louisiana at M­ onroe
for providing a positive environment in which to work on this text. He especially appreci-
ated the school chair, Dr. Henry Cole, and the Dean, Dr. Ron Berry, for their understanding
of the time involved in working on a textbook and their willingness to offer support. He
was thankful to his sons Dallas, Wes, Tim, and Roy, who always provided encouragement
and support.
Prior to his passing, Ken wished to especially recognize his wife, Susan Clow. I also
am very thankful to mine, Pam Baack. Both ladies were patient and supportive during
those times when we were swamped by the work involved in completing this edition. They
have been enthusiastic and understanding throughout this entire journey.

Donald Baack

Global Edition Acknowledgments


Pearson would like to thank the following people for their work on the Global Edition:

Contributors
Adele Berndt, Jönköping University
Mariusz Soltanifar, Hanze University of Applied Sciences, Groningen
Jon Sutherland

Reviewers
Yap Li Lian, Wawasan Open University
Muneeza Shoaib
Karan Vishwanath, City, University of London

A01_CLOW1217_09_GE_FM.indd 20 10/06/2021 16:20


PART 1 | THE IMC FOUNDATION

Integrated Marketing
CHAPTER
1 Communications

Advertising and marketing face a ­rapidly


OVERVIEW LEARNING OBJECTIVES
shifting landscape. A new order has
After reading this chapter, you should
emerged from the decline in traditional media viewership, be able to answer the following
­combined with a dramatic rise in internet and social media questions:
usage. The variety of available media means that effective
1.1 How does communication take
advertising and marketing promotions require more than place?
just one well-made commercial. Advertising and marketing
1.2 What is an integrated marketing
venues range from simple standalone billboard advertise- communications program?
ments to complex, multilingual global websites, and social
1.3 Which trends are affecting
media posts. The number of ways to reach potential customers marketing communications?
­continues to increase while alternative methods expand and
1.4 What are the components of an
become ­increasingly popular. Connectivity and interaction with integrated marketing communi-
­consumers through methods such as mobile marketing have cations program?
changed much of marketing communications to real-time 1.5 What is meant by GIMC?
conversations as consumers make purchasing decisions.
In the face of these cluttered conditions, firms continue to seek
to be heard. In response, some advertisers and companies have
moved to innovative new approaches to reach ongoing and poten-
tial new customers.

The Nature of Communication


OBJECTIVE 1.1 How does communication take place?

Communication involves transmitting, receiving, and processing informa-


tion. As a person, group, or organization sends an idea or message, commu-
nication occurs when the receiver (another person or group) comprehends
the information. The communication model shown in Figure 1.1 displays the
pathway a message takes from one person to another or others.1
Advertising and marketing messaging programs rely on effective com-
munication. Consider a person planning to dine at a quick-serve chicken
restaurant. In the communications model (Figure 1.1), the senders include

21

M01_CLOW1217_09_GE_C01.indd 21 10/06/2021 17:03


22 Part 1 THE IMC FOUNDATION

Lending Tree

N
ew product ideas come from a variety of sources,
one of which is frustration. Zappos.com arose out
of a buyer’s irritation with shopping for, but not
finding, shoes in a variety of stores. UNTUCKit originated
from a person’s desire to wear a shirt out rather than in,
and not being able to find one that fit correctly. The Head
Blade began when a bald man decided the world needed
a curved razor for those who wished to shave their domes.
In 1996, Doug Lebda experienced a similar problem
when seeking to obtain a mortgage for a townhouse.

rSnapshotPhotos/Shutterstock
Roaming from lender to lender, filling out loan applica-
tions, and seeking an approval from just one company
led to an innovation: Why not put lenders and borrowers
together on a common site, where borrowers could shop
for the ideal loan and lenders would be able to track ideal
candidates for mortgages? As a result, Lending Tree was
born.
The marketing communications challenges for
Lending Tree evolved quickly over the past two decades. One recent Lending Tree messaging program fea-
At first, capturing the attention of home buyers took pre- tured an animated spokescharacter, a green Muppet-like
cedence, as did convincing lending institutions they should persona that appears in company advertising and across
buy into the Lending Tree approach. Then, persuading social media platforms. The system sought to direct poten-
those individuals that Lending Tree offered a better, more tial borrowers to the organization’s site, where a variety of
efficient solution to the challenge of obtaining a mort- services, including home loans, business loans, credit card
gage became vital. offers, and student loans, appear. These services accompany
Two issues emerged. First, in the 1990s, distrust of a link to obtain an individual’s personal credit score, along
internet shopping remained a significant concern. Second, with mortgage calculators to help the customer under-
many consumers continued to think first of contacting a stand what her monthly payment would be for a loan, and
local savings and loan or bank rather than an internet com- ratings and reviews of various lending institutions.
pany with no known reputation. Results have been impressive. Lending Tree ranks
As consumer acceptance of the internet rose, competi- among the top 100 in a recent Fortune 500 list of the
tion entered. Most recently, fast-track mortgage provid- fastest-growing companies. Consumer awareness of the
ers such as Quicken Loans/Rocket Mortgage have captured company has grown, and confidence in the firm continues
consumer interest. Although the program offered by to rise. The organization’s success story demonstrates many
Lending Tree differs, the primary benefits of convenience of the principles regarding the need for quality communica-
and speed are available from both types of companies. tion and consumer engagement described in this chapter.2

the chains KFC, Chick-fil-A, Popeyes, Church’s Chicken, Bojangles, and Raising Cane’s
Chicken Fingers. These companies try to capture the customer’s attention. They hire adver-
tising agencies or utilize in-house teams to produce the messages to be sent.
Encoding is forming verbal and nonverbal cues. In marketing, the person in charge
of designing an advertisement transforms an idea into an attention-getting message.

M01_CLOW1217_09_GE_C01.indd 22 10/06/2021 17:03


Chapter 1 Integrated Marketing Communications 23

FIGURE 1.1
Transmission The Communication Process
Sender // Encoding // // Decoding // Receiver
Device

// Feedback //
// = Noise

A commercial consists of cues placed in various media, such as the internet, television,
magazines, and billboards. The message will be encoded on every venue.
Messages travel to audiences through transmission devices. Marketing communi-
cations move through various channels or media. The channel may be a television station
carrying an advertisement, a Twitter post, a Sunday paper with a coupon placed inside, a
website, or a Facebook page.
Decoding occurs when the message reaches one or more of the receiver’s senses. This advertisement for Bare
Consumers both hear and see television ads. Other consumers handle (touch) and by Solo seeks to communicate
read (see) a coupon offer. An individual can even smell a message. A well-placed per- that the product is better for
fume sample might entice a buyer to purchase the the environment.
magazine containing the sample and the perfume
being advertised. Hungry people tend to pay closer
attention to advertisements and other information
about food.
Quality marketing communication takes
place when customers (the receivers) decode or
understand the message as it was intended by the

Solo®, Bare® and the Bare Design are Trademarks of Solo Cup Operating Corporation. Used with permission.
sender. In the bare advertisement on this page,
effective marketing communications depend
on receivers encountering the right message
and responding in the desired fashion, such as
by seeking out the company and purchasing its
products.
Chick-fil-A’s approach to social media pro-
vides an example of a successful communication
approach that integrates the web with both online
and offline advertising to build customer loyalty.3
Engaging consumers constitutes the primary goal
for Chick-fil-A. According to John Keehler, direc-
tor of interactive strategy at ClickHere, “One of
the mistakes we’ve seen is brands would gather
a lot of friends, but wouldn’t get people to inter-
act with them.” With Chick-fil-A, people interact
through its various social media platforms includ-
ing Facebook, Twitter, Instagram, Tumblr, and
YouTube. When a new store opens, marketers
make an announcement on social media outlets,
which invites fans to participate in grand-opening
festivities.
Companies combine social media messages
with offline advertising and promotions. For many
years, Chick-fil-A hosted a “Cow Appreciation
Day” each July. The event encouraged customers to
dress as cows and post their photos on Facebook and
Instagram and videos on YouTube. Television and
billboard advertising features cows urging people to

M01_CLOW1217_09_GE_C01.indd 23 10/06/2021 17:03


24 Part 1 THE IMC FOUNDATION

“Eat Mor Chikin.” Using the same tagline and theme on all channels
transmits a universal message to consumers. A stronger brand pres-
ence becomes the result.
In the communication process, feedback takes the form of the
receiver’s response to the sender. In marketing communications, feed-
back includes purchases, inquiries, complaints, questions, store visits,
blogs, and website hits.
Noise consists of anything that distorts or disrupts a mes-
sage, including marketing communications. It occurs during any
stage in the communication process. Clutter remains the most
common form of noise affecting marketing communications.
Figure 1.2 provides examples of noise that affects advertising
messages.

Recent Developments Several new iterations of the commu-


nications model displayed in Figure 1.2 have evolved. At present,
many view communication in a manner that more closely resembles a
“dance” between a sender and receiver, each transmitting and receiv-
ing verbal and nonverbal cues interactively. Just as a partner responds
in real time to the eye contact, movement, and the subtle press of
personal touch transmitted along with words by the other person,
companies are required to react and reply to messages received from
consumers, all the while seeking to continue to transmit consistent,
Donald E. Baack

memorable, and persuasive messages. Both partners (companies and


customers) deal with the challenge of noise and clutter as the interac-
tion progresses. In essence, Figure 1.2 has become faster and more
interactive than ever before. At the same time, the fundamentals of
preparing and presenting effective marketing messages remain largely
A Chick-fil-A contest winner. the same.

FIGURE 1.2
Examples of Communication • Talking on the phone during a • Scrolling past internet ads without
Noise commercial on television looking at them
• Driving while listening to the radio • Becoming annoyed by ads appearing
• Looking at a sexy model in a magazine on a social media site
ad and ignoring the message and brand • Ignoring tweets on Twitter because
• Scanning a newspaper for articles to they are not relevant
read • Being offended by the message on a
• Talking to a passenger as the car passes flyer for a local business
billboards

A billboard serves as the


Newcomer, Morris & Young, Inc.

transmission device for the


Courtesy of T. Graham Morris/

St. Francis Medical Center


with a consistent theme that
appears in other marketing
messages.

M01_CLOW1217_09_GE_C01.indd 24 10/06/2021 17:03


Chapter 1 Integrated Marketing Communications 25

Consequently, the marketing profession-


als involved in the communication process pay

Courtesy of Michael Kerrigan/Walton County Tourist


attention to each aspect of the communications
model to ensure that every audience member
encounters a consistent message. They make
sure it cuts through noise and clutter. Common
objectives marketing teams seek to achieve
include an increase in market share, sales, and
brand loyalty. As noted, communicating with
consumers and other businesses requires more

Development Council
than creating attractive advertisements. An
effective program integrates all marketing activ-
ities and develops high speed interactions with
consumers through a variety of mobile devices.
The upcoming section describes the nature of
integrated marketing communications.
This social media post is a
transmission device promoting
Integrated Marketing Communications Seagrove Beach in Florida.
OBJECTIVE 1.2 What is an integrated marketing communications program?

The communications model provides the foundation for advertising and marketing pro-
grams. Integrated marketing communications (IMC) is the coordination and inte-
gration of all marketing communications tools, avenues, and sources in a company into a
kesintisiz=seamless program designed to maximize the impact on customers and other stakeholders.
The program covers all of a firm’s business-to-business, market channel, customer-focused,
and internally-directed communications.4
Before further examining an IMC program, consider the traditional framework of mar-
keting promotions. The marketing mix, which consists of products, prices, distribution
systems, and promotions, is the starting point. Traditional promotional activities include
advertising, sales promotions, and personal selling activities. Now, however, companies
incorporate digital and mobile marketing, social media, and alternative methods of com-
munication into the program. The marketing mix requires additional activities including
database marketing, direct response marketing, personal selling tactics, sponsorships, and
public relations programs (see Figure 1.3).

FIGURE 1.3
Components of Promotion
Advertising
Public Digital
Relations Marketing

Sales
Social Media
Promotions Promotions

Personal Alternative
Selling Marketing

Direct Database
Response Marketing

M01_CLOW1217_09_GE_C01.indd 25 10/06/2021 17:03


26 Part 1 THE IMC FOUNDATION

FIGURE 1.4
Steps of a Marketing Plan • Current situational analysis • Marketing strategies
• SWOT analysis • Marketing tactics
• Marketing objectives • Implementation
• Target market • Evaluation of performance

A complete IMC plan combines the elements of the marketing mix: products, prices,
distribution methods, and promotions. While this textbook primarily deals with the promo-
tions component, note that, in order to present a unified message, the other elements of the
marketing mix will be blended into the program.

An Integrated Marketing Communications Plan


A strategic marketing plan forms the basis for integrated marketing communications. The
plan coordinates the components of the marketing mix to achieve harmony in the mes-
sages and promotions relayed to customers and others. Figure 1.4 lists the steps required
to complete a marketing plan.
A current situational analysis involves an examination of the firm’s present market
situation. Next, marketers conduct a SWOT analysis by studying the factors in the organi-
zation’s internal and external environments. SWOT identifies internal company strengths
and weaknesses along with the marketing opportunities and threats present in the external
environment.
Defining primary marketing objectives establishes targets such as higher sales, an
increase in market share, a new competitive position, or desired customer actions includ-
ing visiting the store and making purchases. Marketing objectives are assigned to key
target markets. Understanding both helps company leaders prepare an effective integrated
marketing communications program.
Based on the marketing objectives and target market, the team develops marketing
strategies. These strategies apply to the ingredients in the marketing mix and include
all positioning, differentiation, and branding strategies. Marketing tactics guide the
day-by-day activities necessary to support marketing strategies. The final two steps in
the marketing plan consist of stating how to implement the plan and specifying methods
to evaluate performance.
The steps of the strategic marketing plan pull together all company activities into one
consistent effort. They provide guidance to company leaders and marketing experts as they
coordinate the firm’s overall communications package.

Emerging Trends in Marketing


Communications
OBJECTIVE 1.3 Which trends are affecting marketing communications?

Many forces impact marketing communications. Financial pressures have caused the com-
pany leaders who hire advertising agencies to conclude that they cannot pay unlimited
dollars for marketing programs. Competition, both domestic and global, forces manag-
ers to examine their communications plans to ensure maximum effectiveness. Figure 1.5
highlights the current trends affecting marketing communications.

Emphasis on Accountability and Measurable Results


Company leaders expect advertising agencies to produce tangible outcomes. Any coupon
promotion, contest, social media program, or advertising campaign should yield measur-
able gains in sales, market share, brand awareness, customer loyalty, or other observable
results.

M01_CLOW1217_09_GE_C01.indd 26 10/06/2021 17:03


Chapter 1 Integrated Marketing Communications 27

FIGURE 1.5
• Emphasis on accountability and • Increase in brand parity Trends Affecting Marketing
measurable results • Emphasis on customer engagement Communications
• Mobile marketing • Focus on convenience
• Integration of media platforms • Cause-related marketing and
• Shift in channel power advertising
• Increase in global competition The integration of digital
media and mobile marketing
techniques has affected a wide
variety of industries, including
The increasing emphasis on accountability and mea-
banking in rural areas.
surable results has been driven by chief executive officers
(CEOs), chief financial officers (CFOs), and chief market-
ing officers (CMOs). According to Martyn Straw, former
chief strategy officer of the advertising agency BBDO
Worldwide, corporate executives and business owners
are less willing to “funnel cash into TV commercials and
glossy ads” that keep increasing in cost while appearing
to achieve less and less.
Many companies have replaced 30-second television
spots with digital, social, and alternative communication
advertisements. They connect marketing messages with
special events in which names, profiles, and addresses
of prospective customers can be collected and tracked.
Straw suggests that marketing should not be viewed as an
expense, but rather as an investment in which promotional
dollars generate sales and profits.5

Mobile Marketing
Over the past decade, internet-based marketing commu-
nications were created as individual web advertisements
along with interactive websites, blogs, and social media
messages. Currently, smartphones, tablets, and text-
messaging systems have created a new landscape and
nearly a new language. Ingenious digital mobile market-
ing techniques create experiences with a brand rather than
mere purchases with little or no emotional attachment.
Many companies have cut traditional media expen-
ditures, moving the dollars to digital media. Procter &
Gamble (P&G), AT&T, Johnson & Johnson, Kraft Foods,
and Toyota have reduced company television advertis-
ing budgets while expanding funds for digital and social
media. Campbell’s Soup doubled digital spending to Courtesy of Patrick O’Neal/Lamar Bank & Trust Co.
40 percent of the total media budget.6 A General Motors
executive noted, “Some 70 percent of consumers who
shop for a new car or truck do web research.”7 The same
holds true for other products.
Social media and digital channels provide consum-
ers with access to a wealth of information about com-
panies, products, and brands, many times as they begin
the process of shopping or seeking a product or ser-
vice. Individuals communicate with each other, sending
favorable or unfavorable ratings and information. Con-
sequently, digital and mobile marketing programs have
evolved into a mandatory ingredient rather than an option.
When P&G introduced its Star Wars limited edition of

M01_CLOW1217_09_GE_C01.indd 27 10/06/2021 17:03


28 Part 1 THE IMC FOUNDATION

CoverGirl, the company utilized Snapchat and geo-targeted advertising to drive in-store
sales. With Snapchat, P&G set up geofilters around its 868 Ulta stores throughout the
United States. As individuals posted photos or videos to Snapchat within the designated
boundaries around the Ulta stores, a branded overlay, or filter, was placed at the top of the
post. Anyone who viewed the photo or video would also see the CoverGirl Star Wars cos-
metic line and the location of a nearby Ulta store. This mobile marketing approach allowed
P&G to focus on consumers who were near Ulta stores and most likely to be interested in
the Star Wars CoverGirl cosmetics.8

Integration of Media Platforms


Consumers spend more than five hours each day in front of a screen that does not involve
television. When combined with television (which consumers watch for an additional four-
plus hours per day), the total becomes as much as 10 hours every day examining some kind
of screen, whether it is a computer, tablet, mobile device, or television.9 Understanding
how consumers include multiple devices into their daily lives assists marketers in devising
methods to reach them. Recent research by Flamingo Research and Ipsos OTX identified
four venues in which consumers interact across multiple media formats (see Figure 1.6).10
Content grazing involves looking at two or more screens simultaneously to access
content which is not related. For instance, someone watching TV and texting a friend at
the same time is grazing. Investigative spider-webbing occurs when a consumer pursues
or investigates specific content across multiple platforms, such as a person watching a
football game and accessing stats for various players on a PC or mobile device. Quantum
journey focuses on completing a specific task, such as when a consumer looks for a
Chinese restaurant using a PC to locate one in the area, then obtains consumer reviews of
the units close by on a smartphone, and finally employs a map app to locate the restaurant
or to place an order. The fourth pathway, social spider-webbing, takes place when consum-
ers share content or information across multiple devices. Posting pictures on Facebook
from a laptop and then texting friends to go check them out is an example.
To reach consumers, marketers recognize that today’s consumers use multiple devices
in several ways. Many individual television and banner ads go unnoticed. Advertisers
look for ways to engage consumers with a brand through mobile portals. That same ad
or message delivered across all platforms in various formats increases the chances it will

FIGURE 1.6 80%


Pathways Consumers Use to
Interact across Media Devices
70% 68%

60% 57%
Percent of Consumers

50%
46%

40% 39%

30%

20%

10%

0%
Content Grazing Investigative Quantum Journey Social
Spider-Webbing Spider-Webbing

M01_CLOW1217_09_GE_C01.indd 28 10/06/2021 17:03


Chapter 1 Integrated Marketing Communications 29

be viewed and assimilated by consumers. For example, a recent print ad for Jimmy’s Egg
restaurants placed in newspaper inserts promoted a new loyalty app that offered a “First
Reward” coupon for consumers who downloaded the app.

Changes in Channel Power


A marketing channel consists of a producer or manufacturer vending goods to various
wholesalers or middlemen, who, in turn, sell items to retailers who offer the items to
consumers. Recent technological developments have altered the levels of power held by
channel members.
Retailers seek to maintain channel power by controlling shelf space and purchase
data that allows them to determine which products and brands are placed on store shelves.
Through checkout scanners, retailers know which products and brands are selling. Many
retailers share the data with suppliers and require them to ensure that store shelves remain
well stocked. The size and power of mega-retailers mean manufacturers and suppliers have
no choice but to follow their dictates.
At the same time, the growth of the internet along with other methods of communica-
tion has shifted some channel power to consumers.11 Individuals obtain information about
goods and services and purchase them using the internet. Forrester Research, U.S. notes
that internet-driven sales have risen tremendously.12
Consumer relationships with brands have transformed. Individuals wield greater
power. Social media enables dissatisfied customers to instantly vent about bad experiences
to large audiences, where little forgiveness takes place. Fifty-seven percent of consumers
say they will not buy a particular brand after one negative experience and 40 percent are
likely to tell others not to purchase that brand.13 Previously held positive feelings about a
company may be quickly forgotten.
The same principles apply to business-to-business purchasing activities. Buyers who
shop on behalf of organizations and other company members seeking business-to-business
products are also quick to visit social media sites to complain about brands that did not
deliver as promised. Consequently, a similar shift in channel power has taken place in the
business-to-business sector.
Fortunately, the environment is not completely negative. Approximately 50 percent
of consumers share positive brand experiences. Consumers routinely seek the opinions
of friends and relatives concerning products. As a result, about 70 percent of consumers
say friends and families are a primary source of information regarding various brands.14
It will take some time to understand how the 2020 coronavirus outbreak will affect
channel power dynamics. Many shopping patterns shifted and retailer methods, including
pick-up lanes, online ordering, contactless delivery, and other tactics will undoubtedly
affect the ways in which consumers and businesses obtain items in future years, which
will in turn affect the nature of channel power.

Increases in Global Competition


Advances in information technology and communication mean competition no longer takes
place with just the company down the street. It may also come from a firm 10,000 miles
away. Consumers desire convenience and high quality along with low prices. The company
that delivers these features makes the sale, often regardless of location. Advancements in
delivery systems make it possible for purchases to arrive in a matter of days from anywhere
in the world.
Doritos’ marketing team recognized how new communication technologies and social
media make the world smaller. Consumers travel and communicate with each other. In
response, Doritos launched its first global campaign by updating packaging and the com-
pany’s logo to give a consistent look across 37 countries. Before this global effort, Doritos
offered 25 different package designs and utilized numerous marketing approaches in vari-
ous countries. In the new global campaign called “For the Bold,” Doritos featured digital
and TV spots in the United States, Mexico, England, Canada, Spain, and Turkey, as well

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30 Part 1 THE IMC FOUNDATION

as social media initiatives. The campaign provided


a venue to connect fans worldwide, a consistent sto-
ryline, and the same look and feel for the Doritos
brand across multiple countries. Today, Doritos
remains the largest tortilla/corn chip brand in the
world with a 39-percent market share.15

Increases in Brand Parity


Many currently available products offer nearly
identical benefits. When consumers believe that
various items provide the same set of attributes,
imtmphoto/Shutterstock

brand parity results. When it occurs, shoppers


select from a group of brands rather than one spe-
cific brand.16 Brand parity means quality becomes
less of a concern because consumers perceive only
minor differences between companies and products.
Consequently, other criteria such as price, availabil-
ity, or a specific promotional deal affect purchase
Advances in information decisions. The net effect becomes a steady decline in brand loyalty.17 When consumers
and communication do not perceive a specific brand to be superior, they more readily switch to another. In
technologies enable shoppers response, marketers work to convince consumers that their company’s brand stands out
to purchase products from and projects an image of superiority or a meaningful difference.
other countries as well as from
local firms.
Emphasis on Customer Engagement
brand parity= marka denkligi
The expanding number of available brands perceived to be roughly equivalent requires an
additional response. To build loyalty, marketers seek to engage customers with the brand
at every contact point; that is, any place where customers interact with or acquire addi-
tional information about a firm. Customer engagement programs utilize digital and social
media and have become part of the total integrated marketing approach.
An effective contact establishes two-way communication. Firms build levels of
engagement by offering incentives and reasons for the consumer to interact with them.
For customers to take advantage of these initiatives, however, they must develop emotional
commitments to the brand and experience feelings of confidence, integrity, pride, and
passion toward it.18 The brand, in turn, must deliver on promises and provide reasons for
consumers to continue to interact with the company.

Focus on Convenience
Many of today’s consumers value time in new and important ways. The term convenience
marketing notes the increasing emphasis on making purchases simple and time-saving.
Home delivery systems and store pick-up programs continue to rise. Cars can be pur-
chased online via Carvana, CarGurus, and other sites. Many services, including insurance,
banking, home loans, stock purchases, and college courses are made from a consumer’s
smartphone or tablet. Advertisers note the importance of featuring convenience as part of
messages that are transmitted to consumers.

Cause-related Marketing and Advertising


As the newest generation of purchases increases in levels of spending, many organizations
have noted a rise in interest in buying products attached to socially responsible efforts and
causes. As long as the advertisement connects logically with the cause involved, individu-
als respond with positive feelings toward the brand. Walgreens, for example, has supported
Red Nose Day USA for the last 6 years. Red Nose Day is a program that helps to end

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Chapter 1 Integrated Marketing Communications 31

Customer
engagement remains
important in times of
disaster.
Courtesy of Karen Plott/Choice Marketing

childhood poverty in the United States and globally. The image on the next page provides
an example of how they communicate this impact to their customers during the program
timeframe in store. Grubhub also received favorable responses to a program in which
consumers can “round up” purchase payments, with the extra money being donated to the
No Kid Hungry program. This trend greatly increased during the coronavirus outbreak.

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32 Part 1 THE IMC FOUNDATION

FIGURE 1.7
Five Reasons Integrated • Unifies strategy and message across • Connects with multiple audiences
Marketing Works channels • Creates meaningful insights
• Streamlines timing • Maximizes impact

The Role of Integrated


Marketing Communications
The trends described in this section have led to
a shift in the mindsets of marketing executives.
They realize that integrating all marketing com-
munication efforts will be vital to success. Zehnder
Communications, an advertising agency that created
a number of ads in this textbook, posted five reasons
on the company’s blog why integrated marketing
works and why it is essential (see Figure 1.7).
According to Zehnder, “integrated marketing
combines multiple types of outreach tactics to most
effectively reach a brand’s key audiences at every
phase of the customer journey.”19
Effective integrated marketing communica-
tions ensure a brand’s target audiences hear the
same message across all traditional and alternative
media channels. A single strategy should guide the
creative development process for each campaign
piece. An integrated approach sequences the release
of individual campaign components in a manner
that maximizes a customer’s journey from aware-
ness to purchase as it connects a brand with each
Courtesy of Walgreen Co.

audience. Integrated marketing communications


produce meaningful insights across multiple chan-
nels. The marketing team measures the impact of
the individual components of a campaign and the
various channels that are featured, although these
elements should be analyzed within the context of
the entire campaign. This makes it possible for a
This advertisement for brand manager to identify the channels that work
Walgreens Red Nose Day best and the components that resonate with the target audience to help maximize the
creates a positive bond with impact of a promotional effort.
consumers by connecting the
store with helping children.
IMC Components and the Design
of this Text
OBJECTIVE 1.4 What are the components of an integrated marketing communica-
tions program?

Figure 1.8 presents an overview of the IMC approach featured in this textbook. As
shown, the foundation of an IMC program consists of a careful review of the com-
pany’s image, the buyers to be served, and the markets in which the buyers are located.
Marketers build advertising programs on this foundation along with the other elements
of the promotional mix. The integration tools located at the peak of the pyramid help the
company’s marketing team make certain all of the elements of the plan remain consistent
and effective.

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Chapter 1 Integrated Marketing Communications 33

FIGURE 1.8
Overview of Integrated
Marketing Communications

Regulation Evaluation
& Ethics

Database, Public
Sales
Direct Response, Relations &
Promotions
& Personal Selling Sponsorships

Digital Social Alternative


Marketing Media Channels

Advertising Advertising Traditional


Management Design Media

Corporate Image Buyer


IMC Planning Process
Brand Management Behaviors

IMC Foundation
The first section of this text builds the foundation for an IMC program. Chapter 2 “Brand
Management” examines the elements of corporate image and brand management.
Strengthening the firm’s image and brand answers the question, “Who are we, and what
message are we trying to send?” Branding includes the development of packages and
labels that speak with the same voice as other marketing messages and pieces.
Chapter 3 “Buyer Behaviors” describes buyer behaviors. The steps of the consumer
purchasing process explain how individuals make choices. Marketers identify the motives
leading to purchases and factors affecting those decisions. Then, they design the IMC
program to influence consumer thinking. The chapter examines business-to-business
(B2B) buyer behaviors. Discovering viable business-to-business marketing opportunities
by reaching purchasing managers and other decision makers in the target business often
plays a vital role in achieving success.
Chapter 4 “The IMC Planning Process” explains the IMC planning program. This
includes identifying all target markets, most notably consumer and business-to-business
market segments. Then quality communications objectives can be set. The plan becomes
complete when communications budgets have been developed and all appropriate media
have been identified.

Advertising
Advertising issues are described in the second section of this text. Chapter 5 “IMC
Advertising Tools” describes advertising campaign management and addresses the major
advertising activities, including the selection of an advertising agency. Campaign manage-
ment identifies the general direction the company will take. The chapter also explains vari-
ous advertising theories along with the principles of advertising effectiveness. Advertising
theories form the background used to design advertisements.
Chapter 6 “Advertising Design” begins with an analysis of the ingredients involved in
creating effective message strategies. Then, various advertising appeals can be featured,
including those oriented toward fear, humor, sex, music, and rational methods. Next, the
chapter discusses the types of executional frameworks used in advertising. Executional

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34 Part 1 THE IMC FOUNDATION

Advertising is an important
component of the Interstate
Batteries integrated marketing
communications program.

Courtesy of Felicai Cruz/Interstate Batteries


frameworks provide the means to construct the actual commercial or advertisement.
Finally, the chapter examines the employment of sources or spokespersons as part of an
advertising program.
The traditional media channels, including television, radio, outdoor, magazines, and
newspapers, are described in Chapter 7 “Traditional Media Channels,” along with the
advantages and disadvantages of each one. The chapter explains the roles provided by
media planners and media buyers.

Digital, Mobile, and Alternative


The third section of this text contains information about the growing use of innovative
methods of reaching potential customers. Chapter 8 “Digital and Mobile Marketing”
examines digital and mobile marketing efforts designed to integrate e-commerce programs
with recent trends in interactive marketing. Online advertising approaches are presented.
Many online activities begin with a search. As a result, concepts regarding search engine
optimization (SEO) are discussed in the chapter. Due to the rise in smartphone use, the
chapter explores new trends in mobile advertising.
Social media has exploded in usage in recent years and is the topic of Chapter 9. While
Facebook remains the leading platform, others have created an impact on both consumer
and business markets. The chapter examines current trends in social media and how busi-
nesses employ these venues to encourage brand engagement.
Many communication channels are available beyond the traditional networks, the
internet, and social media. Chapter 10 “Alternative Marketing” describes methods such
as buzz marketing, guerrilla marketing, product placements, branded entertainment, and
lifestyle marketing. The chapter also investigates brand communities.

Selling Components
The next level of the IMC pyramid adds database and direct response marketing programs,
personal selling, trade promotions, consumer promotions, public relations efforts, and
sponsorship programs. Each of these efforts helps to stimulate sales. When marketing

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Chapter 1 Integrated Marketing Communications 35

managers carefully design all of the steps taken up to this point, the firm can integrate
these activities. Messages presented in the advertising campaign can be reinforced through
a variety of communication promotions.
Chapter 11 “IMC Promotional Tools” explains database programs, direct response
marketing efforts, and personal selling tactics. It first describes effective data collection
and analysis. Then, the information gained can be used to develop data-driven marketing
programs, including permission marketing, frequency programs, and customer relation-
ship management (CRM) systems as well as personal selling activities. Personal selling
involves contacts with retail customers and other businesses.
Chapter 12 “Sales Promotions” describes consumer and trade promotions. Trade
promotions include trade incentives, cooperative advertising, slotting fees, and other
promotions and discounts that help the manufacturer or channel member to push the
product through the distribution channel. Consumer promotions are directed at end
users and include coupons, contests, premiums, refunds, rebates, free samples, and
price-off offers.
Chapter 13 “Public Relations and Sponsorship Programs” explores public relations
programs that connect with consumers in positive ways. This involves emphasizing posi-
tive events and dealing with negative publicity. The marketing team utilizes public relations
efforts to help a sponsorship program achieve the greatest impact.

Integration
The final level of an IMC program adds the integration tools needed to make sure the
company effectively serves all customers. Chapter 14 “IMC Ethics, Regulation, and
Evaluation” begins with a presentation of the legal and regulatory issues that are part of
the advertising and promotions environment. The chapter discusses several ethical issues
that have emerged in marketing communications.
Finally, Chapter 15 “Evaluating an Integrated Marketing Program” explains the evalu-
ation of integrated marketing communications (IMC) programs. Evaluations often begin
prior to any promotional campaign and continue during the campaign to post-campaign
evaluations. They generate valuable information to alter campaigns before they are com-
mercially introduced, as well as provide input to modify programs that have already run.
A promotions evaluation process holds everything together and drives the entire IMC
process. Fully integrated marketing requires a well-defined linkage between planning and
evaluation processes.

Companies often utilize


the expertise of marketing
research firms such as ReRez to
evaluate IMC programs.
Courtesy of Debbie Peternana/ReRez

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36 Part 1 THE IMC FOUNDATION

International
Implications
OBJECTIVE 1.5 What is meant by GIMC?

The same trends that exist among advertising agen-


cies in the United States occur in the international
arena. Instead of IMC, international programs are
called GIMC, or globally integrated marketing
Photocreo Bednarek/Fotolia

communications programs.20 The goal remains the


same: to coordinate marketing efforts across all plat-
forms. The challenges become greater due to larger
national and cultural differences in target markets.
Marketers can employ two different strategies
for global companies. Standardization, in which
a company features a uniform product and message
across countries, offers one option. The approach
When developing
involves generating economies of scale in production while creating a global product
communications campaigns,
using a more universal promotional theme. The language may be different, but the basic
company leaders in a
marketing message stays the same.
country such as France will
The second approach, adaptation, results in the creation of products and market-
choose the best approach––
ing messages designed for and adapted to individual countries. The manner in which a
standardization or adaptation.
company markets a product in Mexico differs from the methods used in Italy, India, or
Australia.
The standardization method may be easier to apply; however, GIMC principles can
and should be used with either adaptation or standardization.21 To reduce costs, careful
coordination of marketing efforts should occur across countries. Even when a firm uses
the adaptation strategy, marketers from various countries learn from each other. Synergies
take place between countries and regions. More important, learning can occur.
Recently, Adrian Hallmark, former global brand director of Jaguar, commented that
“for too many luxury consumers, there is awareness of the Jaguar brand, but not con-
sideration and modern relevance.” To restore its iconic status, Jaguar’s marketing group
launched a multinational ad campaign created by Spark 44, a London ad agency. The cam-
paign debuted on websites JaguarUSA.com, Facebook, and YouTube with a 45-second
version of a 30-second TV ad. Jaguar then introduced print, digital, and outdoor advertis-
ing in the United States, Austria, Spain, France, Germany, Italy, Russia, Korea, Japan,
Australia, and South Africa. The campaign included an 18-city roadshow in the United
States to encourage prospective buyers to try the new Jaguar. The ads were adapted to
individual markets in each country using the central theme of the campaign “How alive
are you?” which was featured in every print, digital, outdoor, television, and video ad.22

Your Career
At the conclusion of each chapter in this textbook, ideas regarding ways to incorporate the
various concepts are presented as methods to help manage your career. The field of adver-
tising and marketing communications is rich with opportunities, both in the ad agency side
of the business as well as in work with individual companies.
Most new graduates start at the entry level, regardless of the type of firm. In a retail,
business-to-business, nonprofit, or market channel company, this will probably mean the
job will not be directly involved in creating marketing communications programs, but rather
responding to them and helping the organization portray itself in the most favorable light. It
makes good career sense to fully understand how a company presents itself in all marketing
messages prior to applying for a job and then again following acceptance as a new employee.
Those who find jobs in the advertising agency side should first understand the scope
of the company. Some firms are boutiques that deal with one specific aspect, such as public

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Chapter 1 Integrated Marketing Communications 37

relations, media purchasing, or creative endeavors. Other full-service agencies deliver


the entire range of activities and functions. Knowing the difference will help in making
choices of which companies to pursue and in eliminating those that are outside of your
primary interests.
In every instance, part of career management can be viewed as a marketing commu-
nications activity. A personal image that emphasizes your strengths will help in finding
the right fit as a career begins.

SUMMARY
Communication consists of transmitting, receiving, and pro- media strongly influence IMC programs through the use of
cessing information. It is a two-way street in which a sender channels such as mobile marketing. Marketing professionals
establishes a connection with a receiver. Effective commu- seek to find ways to integrate all media platforms together to
nication forms the basis for a solid and successful market- present a consistent message.
ing program. In the marketing arena, senders are companies Channel power has shifted in many ways. Company
seeking to transmit ideas to consumers, employees, other leaders adjust in order to maintain a strong market stand-
companies, retail outlets, and others. Encoding devices ing, and IMC programs can assist in this effort. New levels
provide the means of transmitting information and include of global competition drive marketers to better understand
advertisements, public relations efforts, press releases, sales customers and be certain that those end users hear a clear
activities, promotions, and a wide variety of additional and consistent message from the firm.
verbal and nonverbal cues sent to receivers. Transmission As consumers develop a stronger sense of brand parity,
devices include the media and spokespersons that carry the wherein consumers perceive no real differences in product or
message. Decoding occurs when the receivers (customers or service quality, marketers seek to create situations in which
retailers) encounter the message. Noise takes many forms a company or brand develops a distinct advantage. This may
in marketing, most notably the clutter of an abundance of be difficult because consumers collect and integrate informa-
messages in every available channel. tion about products from a wide variety of sources, including
Integrated marketing communications (IMC) takes the internet and social media. Quality IMC programs help
advantage of the effective management of the communica- maintain the strong voice a company needs to ensure cus-
tion channels. Within the marketing mix of products, prices, tomers hear its message through an emphasis on customer
distribution systems, and promotions, firms that speak with engagement in all marketing activities. An increased empha-
one clear voice are able to coordinate and integrate all mar- sis on convenience combined with consumer preferences for
keting tools. firms featuring cause-related programs generates additional
The fields of advertising, promotions, and market- complications for marketing professionals.
ing communications have experienced several new trends. When a firm conducts business internationally, a GIMC,
Marketing departments and advertising agencies, as well or globally integrated marketing communications system,
as individual account managers, brand managers, and cre- can be of great value. By developing one strong theme and
atives, encounter strong pressures. They are held account- then adapting it to individual countries, the firm conveys a
able for expenditures of marketing communications dollars. message that integrates international operations into a more
Company leaders expect tangible results from promotional coherent marketing package. The successful development of
campaigns and marketing programs. an IMC program helps firms remain profitable and vibrant,
IMC plans are vital to achieving success. The explosion even when the complexities of the marketplace make these
of digital media, new information technologies, and social goals more difficult to attain.

KEY TERMS
communication Transmitting, receiving, and processing transmission devices All items that carry a message
information from the sender to the receiver
senders The person(s) attempting to deliver a message or decoding What occurs when the receiver employs any of
idea his or her senses (hearing, seeing, feeling) in an attempt
encoding The verbal (words, sounds) and nonverbal (ges- to capture a message
tures, facial expressions, posture) cues that the sender receivers The intended audience for a message
utilizes in dispatching a message

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38 Part 1 THE IMC FOUNDATION

feedback The information the sender obtains from the brand parity What occurs when there is the perception
receiver regarding the receiver’s perception or interpre- that most goods and services are essentially the same
tation of a message contact point Any place where customers interact with or
noise Anything that distorts or disrupts a message acquire additional information about a firm
clutter What exists when consumers are exposed to hun- standardization A program in which a firm features uni-
dreds of marketing messages per day and most are tuned form products and market offerings across countries
out with the goal of generating economies of scale in pro-
integrated marketing communications (IMC) The duction while using the same promotional theme
coordination and integration of all marketing commu- adaptation What takes place when products and market-
nications tools, avenues, and sources in a company into ing messages are designed for and adapted to individual
a seamless program designed to maximize the impact on countries
customers and other stakeholders
marketing mix The elements of a marketing program,
including products, prices, places (the distribution sys-
tem), and promotions

REVIEW QUESTIONS
1-1. Define communication. How does it play a crucial 1-11. Identify and describe four ways consumers can inter-
role in marketing and business? act with multiple media formats.
1-2. What are the parts of an individual communications 1-12. Why is it vital for marketing professionals to check
model? the marketing messages they send?
1-3. Who are the typical senders in marketing communica- 1-13. What is meant by the term “quality marketing
tions? Who are the receivers? communication?”
1-4. Name the transmission devices, both human and non- 1-14. Identify the role of integrated marketing in relation to
human, that carry marketing messages. new marketing trends.
1-5. Define clutter. Name some of the forms of clutter in 1-15. In the marketing process, what does an advertiser
marketing communications. hope for in customer feedback?
1-6. Why are different marketing objectives assigned to 1-16. What are the components of an integrated market-
different key markets? ing communications program, as outlined in this
1-7. What are the foundations of marketing strategies? textbook?
1-8. What are the key purposes of a SWOT analysis? 1-17. What is a GIMC? Why is it important for multina-
1-9. What trends were given to explain the growth in tional firms?
importance of IMC plans in this chapter? 1-18. What is the difference between standardization and
1-10. How has the use of digital media impacted marketing adaptation in GIMC programs?
communications?

CRITICAL THINKING EXERCISES


1-19. The Lean Cuisine effort to shift consumer perceptions quality. Discuss the problems she is likely to encoun-
of frozen products included a multi-faceted approach. ter in the communication process. Explain how noise
Access the firm’s website and evaluate the marketing or clutter interferes with the communication process
messages presented. Do they convince you to recon- when using social media advertising.
sider your views of various products? Is the effort 1-21. How many different forms of advertising are you
working, or do you still perceive Lean Cuisine to just exposed to over the course of a normal day? Do you
be “diet” food? Explain your answer. recall any specific advertising that had relevance and
1-20. Amara is a clothes designer in West Bengal, India. She resonance with you? Compare your observations
sells her jute product range, Hooghly Modes, direct with those of the other members of the class.
to her customers using Facebook advertising as her 1-22. Why do advertisers ensure that they feature their mar-
primary channel. Her products are marketed as being keting messages across multiple forms of media?
handmade, limited edition, green, and of superior

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Chapter 1 Integrated Marketing Communications 39

1-23. In 2018 and 2019, Facebook and Twitter came under 1-25. Brand parity has become a major issue for companies.
governmental and consumer scrutiny due to privacy Identify three product categories in which the brand
concerns and other issues. Discuss your personal use you purchase is not very important. Why is the brand
of the two sites. Has your opinion changed regarding not important? Identify three product categories in
them? Do you use the same or different social media which the brand is important. What brand or brands
platforms? Why did you select those particular ones? do you typically purchase in each category? Why?
How do you use social media? 1-26. The marketing director for a manufacturer of automo-
1-24. Explain how advances in information technology and bile tires has been asked to integrate the company’s
communication have increased global competition global marketing program. Should the director use a
for goods and services. How has the growth of global standardization or adaptation approach? How could
competition, in turn, impacted brand parity, the need the company be certain that its marketing program
for customer engagement, and changes in channel will effectively be integrated among the different
power? Be specific by identifying examples to illus- countries in which it sells tires?
trate your thoughts.

INTEGRATED LEARNING EXERCISES


1-27. Access the website of Yum Brands at www.yum a. PayPal (www.paypal.com)
.com. Access the website of Yum Brands’ competitors, b. Mini (www.mini.com)
­McDonalds (corporate.mcdonalds.com/mcd.html), c. Moet & Chandon (www.moet.com)
Starbucks (www.starbucks.com), Subway (www
d. Lenovo (www.lenovo.com)
.subway.com), and Domino’s Pizza (www.dominos
.com). Identify the social media being used by each 1-29. Information is one of the key ingredients for develop-
brand. Compare and contrast the information avail- ing a successful integrated marketing ­communications
able and the design of each company’s website. program. Access each of the following websites.
Which website did you like best? Why? Which one Describe the type of information and news available
did you like least? Why? on each site. How would this information help in
developing an integrated marketing campaign?
1-28. According to Interbrand, the four brands in the list
a. Juwai (list.juwai.com): Chinese marketing trends
below are the top rising global brands. Identify the
social media that is listed on each brand’s website, b. Marketing Malaysia (www.marketingmagazine
then access the pages. Go to YouTube and locate a .com.my): Malaysian trends
TV ad of the brand. Discuss how well the website, c. Gulf Marketing (gulfmarketingreview.com):
social media sites, and ad you located on YouTube are Middle East trends
integrated. (Provide the URLs for the website, social d. Marketing Mag (www.marketingmag.com.au):
media sites, and TV ads.) Australian trends

BLOG EXERCISES
Access the authors’ blog for this textbook at the URLs pro- 1-31. Facebook, blogclowbaack.net/2018/08/13/
vided to complete these exercises. Answer the questions facebook-chapter-1-chapter-9/
posed on the blog. 1-32. Communication patterns, blogclowbaack.net/
1-30. Gas Station Advertising, blogclowbaack.net/ 2019/08/06/communication-patterns-chapter-1/
2018/08/13/gas-station-advertising-chapter-1-
chapter-10/

STUDENT PROJECT
CREATIVE CORNER The study also revealed that Middle Eastern readers were
Northwestern University in Qatar, in partnership with the also increasingly turning to online newspapers for their news.
Doha Film Institute, examines trends in social media across These findings suggest that advertisers need to ­reassess their
the Middle East each year. The 2019 study found that Twitter spending patterns. Write a report that discusses each of the
use had declined from 45 percent of all social media users social media used by individuals in your own country and
in 2013 to 22 percent in 2019. Facebook had dropped from how effective advertising is in reaching the target audiences.
88 percent to 71 percent, but Instagram and Snapchat had Cite specific examples of advertisers’ social media pages
grown in popularity. WhatsApp was virtually unchanged. using screenshots.

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40 Part 1 THE IMC FOUNDATION

CASE 1 KFC CHANGES SPOKESPERSONS

A ny longstanding product or brand runs the risk of becom-


ing stale in the eyes of consumers. At times the messages
being sent may be altered; at others, the message stays the
same, and some other factor will be changed. For many years, a
company known as Kentucky Fried Chicken relied on two stan-
dard features: the presence of the actual Colonel Harlan Sanders
as spokesperson and the reliance on the phrase “secret blend

Darryl Brooks/Shutterstock
of eleven herbs and spices” in company advertisements. The
approach led to great success and a massive expansion over sev-
eral decades.
As a new era of competition took place, the organization
was forced to respond. One method included the inclusion of new
food items, including pot pies and variations on the original recipe
to include a crispy version, bar-b-que flavors, and other items.
Many units opened buffet services for customers.
KFC changed spokespersons in company commercials
In 1991, the company changed its name to KFC. In part, the
to help keep the brand fresh in the perceptions of
move appeared to modernize and renovate the brand. The new
consumers.
name also took place in response to trademark challenges issued
by the Commonwealth of Kentucky.23 The new brand provided invigoration of the firm’s integrated market communications
marketing opportunities to refresh and renew the company’s program helps explain the level of success.
image and messaging.
1-33. Use the model of communication presented in this chap-
Three decades later, the organization once again sought to
ter to demonstrate the transmission of KFC’s message to
capture consumer attention through a new approach. Colonel
consumers.
Sanders evolved from an animated version to a real person por-
trayed by a series of actors and comedians, including Rob Lowe, 1-34. Which of the emerging trends in marketing communications,
Rob Riggle, Jim Gaffigan, Billy Zane, and Darrell Hammond. especially those related to social media, might affect KFC?
In 2018, a more dramatic innovation took place. KFC intro- 1-35. What is the basic message KFC should transmit to cus-
duced a female, country music star Reba McIntire, to play the tomers and potential customers? Do the changes in
Colonel. The lighthearted approach captured a great deal of individuals portraying Colonel Sanders help to send a
attention and even a small amount of backlash from some males, clear and consistent theme to the public? Defend your
who believed the Colonel should remain a character only played answer.
by a man.24 1-36. Should KFC employ a standardization or adaptation
KFC, which is part of the Yum! Brands family, continues to approach to its GIMC program? Explain how you would
enjoy popularity. The organization has a strong market share utilize one strategy or the other if you were in charge of
in the United States as well as in other countries.25 Continual the marketing communications division of KFC.

CASE 2 MIKE’S OLD-TIME ICE CREAM AND CHOCOLATE SHOP

M ike Swann was excited to open his new business venture


in the springtime. Mike’s Old-Time Ice Cream and Choco-
late Shop was established to take advantage of several oppor-
including a nearby forest. Then, he was able to obtain a passen-
ger car and caboose from a now-defunct railroad company that
could be set up as a place to enjoy ice cream in a unique seating
tunities and reach multiple audiences, all in one location. In the arrangement in addition to the regular tables inside the shop.
summertime, ice cream should sell best. In the winter and spring, Outside of the rail cars, Mike placed a swing set and other items
chocolate products may be given as Christmas, Valentine’s, Easter, for children.
and Mother’s Day presents. Mike also decided to sell fast food The biggest challenge Mike faced was getting the word out.
throughout the year, including hamburgers, hot dogs, grilled He contacted a local advertising and promotions agency to help
cheese sandwiches, pretzels, fries, and other items. him get started. The first question the account executive asked
To make his store stand out, Mike chose to locate on the was, “Well, what is going to make your store stand out?”
outskirts of town, where parking would be readily available, and Mike responded, “Several things. First, I am re-opening a
the store would be surrounded by a more natural environment company that served this area for years, called ‘Stevenson’s Ice

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Chapter 1 Integrated Marketing Communications 41

with a local chocolatier that is on the far side of town. We’ll be


selling their products in our store. And third, we are appealing to
that old-fashioned, old-time relaxation that people enjoy in the
summer. Families should love that.”
Next, the executive asked, “Who are your major competitors?”
Mike answered, “For ice cream, I suppose it is Baskin-Robbins
and Dairy Queen. For chocolate, it’s probably Nestlé and Hershey’s.
But we are set up in such a unique way we should be able to
attract people differently.”
The executive and Mike agreed that the company’s launch
was a key time to communicate this difference. They also believed
the target audience would be pretty large, including families with
children, grandparents with grandkids, and other people look-
ing to enjoy high-quality chocolate and ice cream in a unique
atmosphere, possibly after enjoying a quick meal. The executive
pointed out that getting people to visit for the first time would
be one factor but that generating return business throughout
the year was the real key to long-term success. It was time to
get started.
1-37. Mike’s store will be a local business that competes with
large national companies. What communication challenges
does that present? What opportunities does it offer?
rh2010/Fotolia

1-38. Which of the emerging trends in marketing communica-


tions can Mike use to promote his new business? Explain
how it can be used.
Mike’s biggest challenge was getting the word out 1-39. What should be the first message that Mike should try to
about his “Old-Time Ice Cream and Chocolate Shop.” communicate to all potential customers? Should he empha-
size price, value, or some other element of his business?
Cream.’ I plan to generate publicity letting everyone know that 1-40. Will Mike be able to use social media and mobile market-
we will be selling the same kind of great-tasting ice cream that ing techniques as part of his marketing communications
used to be offered by that company. Second, I have a partnership efforts? If so, how? If not, why not?

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CHAPTER
2 Brand Management

A brand is the word, term, or phrase featured


LEARNING OBJECTIVES OVERVIEW
as the name of a product, product line, or
After reading this chapter, you should
be able to answer the following company. Managing an organization’s brand image constitutes
questions: a critical element in the successful maintenance of an integrated
marketing communications plan. A corporation’s brand image
2.1 How does a brand’s image affect
consumers, other businesses, and reflects the feelings consumers and businesses hold regarding the
the company itself? overall organization as well as its individual products or prod-
2.2 What types of brands and brand uct lines. Advertising, consumer promotions, trade promotions,
names do companies use? ­personal selling, the company’s website, and other marketing activ-
2.3 What characteristics do effective ities affect consumer perceptions. A strong brand generates major
logos exhibit? advantages for any good or service. Conversely, when the image
2.4 How do marketers identify, of an organization or one of its brands becomes tarnished, sales
create, rejuvenate, or change a revenues and profits often plummet. Rebuilding or revitalizing the
brand’s image? brand’s image then becomes difficult.
2.5 How can a company develop, The marketing team works to understand the firm’s overall
build, and sustain a brand in image and the strengths of individual product brands in order to
order to enhance brand equity
establish solid connections with consumers and business-to-­business
and fend off perceptions of
brand parity? customers. A sturdy integrated marketing communications (IMC)
foundation combines an analysis of the firm’s image and brands
2.6 What current trends affect
private brands? with assessments of consumer and business buyer behaviors.
­Marketing professionals prepare consistent messages designed
2.7 How can packaging and labels
support an IMC program domes- to reach any individual who might purchase a firm’s products. At
tically and in foreign settings? times, such a process involves rejuvenating or adjusting the image a
2.8 How do firms manage brands in brand conveys.
international markets?

42

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Chapter 2 Brand Management 43

Michelin
brand association = marka cagrisimi

W
hen consumers consistently connect a prod-

Olaf Naami/Shutterstock
uct’s name with a specific meaning, concept,
or idea, the term brand association applies.
One such brand has held such a distinction over several
decades. The Michelin Tire company, based in France,
developed and maintained a consistent linkage between
its products and beliefs about safety and security in the
minds of many consumers in the United States and around
the world.
For years, the Michelin Tire Man has portrayed a con- Tire Assistance” enables consumers who experience unex-
sistent image from which the organization built and main- pected problems to get help. These activities reside under
tained consumer brand recall. Concepts associated with the banner of the Michelin Promise Plan.
the tires include product durability, reliability, quality, More recently, the Michelin executive team introduced
and most important, protection and safety. The secret to an emphasis on sustainability. Used, worn out tires are
keeping the company’s strong reputation has been a high-­ notorious sources of environmental damage. In response,
quality marketing communications program. Michelin Tire the company developed systems to build tires using the
Man advertisements show the character protecting people most sustainable processes.
in their vehicles and babies surrounded by the tires, safe An additional feature appears on the company’s
and secure. Such a brand image only succeeds when the ­website. Michelin devotes an entire section to safe driv-
product matches the promotions. The organization has ing, from the perspective of product advantages but also
been a consistent innovator in the areas of tire safety and with hints about how to keep tires in the best and safest
quality, beginning with the development of radial passen- condition as well as how to drive in a safe and respon-
ger tires in the 1950s. sible manner. The result of these efforts has been a stable,
Carefully selected product names accompany the over- growing, profitable company that created and maintained
all Michelin brand. Tire labels include Defender, Protector, a consistent image in the United States and many other
Pilot, Premier, and Energy. Each reinforces the consistent countries. The firm’s success illustrates many of the prin-
themes of quality and safety. In addition, a strong warranty ciples regarding brand and image development described
program remains in place. A program entitled “3 Year Flat in this chapter.1

Corporate and Brand Image


OBJECTIVE 2.1 How does a brand’s image affect consumers, other businesses,
and the company itself?

A corporate or brand image expresses what the company and its products stand for as well
as how it is to be known in the marketplace. Whether it is the “good hands” of Allstate
Insurance or the “good neighbors” at State Farm Insurance, creating a specific impression
in the minds of clients and customers will be the goal of image management. Insurance
companies often accomplish this by stressing helpfulness, safety, and security as elements
of a powerful image.
Consumer beliefs about a firm are more important than how company officials perceive
the image. Corporate brand names such as Bank of America, Toyota, Kraft Heinz, and Wells
Fargo create impressions, some favorable and some not, in the minds of clients and customers.

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44 Part 1 THE IMC FOUNDATION

This advertisement for Rev


Select creates a new element
for the company’s image that
incorporates the digital age
into modern farming.

Courtesy of Brenda Tarver/Alliance One Advertising Inc.


Lee is a well established
brand in the market for jeans.
Although the actual version of the image varies from con-
sumer to consumer or for each business-to-­business buyer,
the combined views of all publics determine the overall cor-
porate image, which can be positive or negative.
The same holds true for individual brands. Some compa-
nies, such as Kraft Heinz, sell a number of different brands.
The corporate name Kraft Heinz projects an image and iden-
tity along with the individual product brands the company
offers, including Oscar Mayer, Maxwell House, Planters, and
Velveeta. Other firms feature only one brand for the entire
organization, which means the corporation’s and brand’s
image coincide. Therefore, with regard to the various con-
cepts presented in this chapter, the ideas refer to various
brands sold by a company, such as Kraft Heinz, or to an over-
all corporate brand, such as State Farm, Allstate, or Walmart.

Components of Brand Image


Gari Wyn Williams/Alamy Stock Photo

Brand images contain invisible and intangible elements (see


Figure 2.1). Consumers encounter these elements as they
interact with a company or brand. A recent study of the res-
taurant industry indicated that the quality of a company’s
goods and services ranked as the most important component
of brand image. The willingness of a firm to stand behind
its goods and services when something went wrong placed
second. The third set of perceptions focused on whether
the firm dealt with customers by being pleasant, helpful, or
professional.2

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Chapter 2 Brand Management 45

FIGURE 2.1
Tangible elements Intangible elements Elements of Brand Image
• Goods or services sold • Corporate personnel
• Retail outlets where the product is sold • Ideals
• Advertising • Beliefs
• Conduct
• Marketing communications
• Environmental policies
• Name and logo
• Corporate culture
• Package and labels
• Country location
• Employees
• Media reports

Courtesy of Christopher Harbin/Miller Transporters

This advertisement for Miller Transporters emphasizes a strong


record of safety in order to promote a positive brand image.

Negative publicity often stains or injures consumer perceptions of a corporation’s or


brand’s image. Examples include the damage to reputations of financial institutions, such
as Bank of America when it faced charges of misleading investors, Toyota following qual-
ity control problems, United Airlines when a video showed a passenger being physically
removed from an airplane and injured in the process due to an overbooking problem, and

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46 Part 1 THE IMC FOUNDATION

more recently Facebook’s issues with ­sharing infor-


mation to a politically-driven group without users
being fully aware of the process.3 Each ­organization
undertook efforts to restore a more positive image.
An image consists of a unique set of features.
The corporate brand image of an automobile man-
ufacturer such as Kia, Porsche, Mazda, Toyota,
Ford, or General Motors results from: evaluations
of its vehicles; whether the company is foreign or
Minerva Studio/Shutterstock

domestic; customer views of each company’s adver-


tisements; and reactions to the local dealership. A
corporation’s image includes consumer assessments
of company employees. In fact, the mechanic repair-
ing a vehicle at a local Chevrolet dealership garage
might become the dominant factor that shapes a cus-
tomer’s perception of General Motors.
In the past, Walmart encountered criticisms
A mechanic at a local regarding employee discontent, conditions at foreign factories, and bribery allegations in
Chevrolet dealer can impact other countries. To boost the brand’s image, Walmart’s marketing team launched a multi-
the image a customer has million dollar “American Success Story” campaign. The national effort featured custom-
of General Motors and the ers, store employees, and truck drivers sharing personal stories and warm feelings about
Chevrolet brand. the organization.4 The campaign sought to show the public a positive side of the company.
A strong brand image provides tangible and intangible benefits. Organizational leaders
devote considerable time and energy to constructing and maintaining a favorable brand
image. Client companies expect advertising agencies to design marketing programs that
take advantage of the benefits of a strong brand image.

The Role of Brand Image—Consumer Perspective


From a consumer’s perspective (or business customer’s perspective), brand image serves
several functions, including those displayed in Figure 2.2. A well-known brand provides
customers with assurance about what to expect. A can of Coke or Pepsi purchased in
Santa Cruz, California, tastes like one purchased in Liverpool, England, or Kuala Lumpur,
Malaysia. Products ordered online from Target are the same as those purchased in retail
stores in California or New Jersey.
Positive assurance produces value when customers purchase goods or services with
which they have little experience. Consider families on vacation. A family visiting Brazil
might normally not stay at the Holiday Inn, but the familiar name makes it seem like a
lower risk option. Consumers often believe that purchasing from a familiar corporation
will be a “safer” option than buying something from an unknown company. Taking a room
at an unfamiliar hotel might feel riskier.
Purchasing from a familiar firm reduces search time and saves effort. An individual or
company loyal to Ford spends fewer hours searching for a new car than someone without such
loyalty. The same may be true when buying low cost items such as groceries or office products.
Purchasing from a highly recognized company often provides psychological rein-
forcement and social acceptance. Psychological reinforcement comes when a consumer
concludes that she made a wise choice, resulting in confidence that the good or service
will perform well. Social acceptance comes from believing that other individuals including

• Provides confidence regarding purchase decisions


• Gives assurance about the purchase when the buyer has little or no previous
experience

FIGURE 2.2 • Reduces search time in a purchase decision


Brand Image: Benefits to • Provides psychological reinforcement and social acceptance of the purchase
Consumers

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Chapter 2 Brand Management 47

family and friends who purchased the same brand will


approve of the choice. Each year, Interbrand produces a list
of the top 100 brands (for example, go to www.interbrand
.com/best-brands/best-global-brands/2018/ranking/).

The Role of Brand Image—Company


Perspective
From the firm’s point of view, a highly reputable image
generates benefits, as noted in Figure 2.3. A quality image
offers the basis for the development of new goods and ser-
vices. The introduction of a product becomes easier when
potential customers recognize the brand name and image.
Long-term patrons become more willing to try new items
and transfer trust in and beliefs about the brand to those prod-
ucts. A brand alliance, in which two companies use brand
strength to develop and co-market a new product featuring
both names (such as Old Spice and Head & Shoulders) has
recently begun to emerge.
Many customers believe they “get what they pay for.”
Consumers often associate better quality with a higher price.
A solid brand image allows a company to charge more for
goods and services, which can lead to improved markup mar-

Monkey Business/Fotolia
gins and profits.
Firms with well-developed brand images enjoy customer
loyalty, which leads to more frequent purchases. Dedicated
customers are less inclined to make substitute purchases
when competing brands offer discounts, sales, and similar
enticements.
Heightened levels of customer loyalty often lead to
Social acceptance can be
positive word-of-mouth endorsements, in person or digitally. Favorable comments
one benefit of purchasing a
well-known brand.
Courtesy of Felicia Cruz/Interstate Batteries

Interstate Batteries has


accrued benefits from a strong
corporate brand image.

• Extension of positive customer feelings to new products


• Ability to charge a higher price or fee
• Consumer loyalty leading to more frequent purchases
• Positive word-of-mouth endorsements
• Higher level of channel power
• Ability to attract quality employees FIGURE 2.3
• More favorable ratings by financial observers and analysts Brand Image: Benefits to
Companies

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