Advertising & IMC: Principles & Practice

Eleventh Edition

Chapter 1
Strategic Brand
Communication

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Part 1
Principle: All Communications One Voice

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Key Objectives
1. What is the marketing mix, and how does it send
messages?
2. What is integrated marketing communication?
3. Understand how this text will prepare you for your career.

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Chapter Opener: A Fresh Take on an
Established Market Niche

New Pig Corporation, an international business-to-business (B2B)

company, has built a unique brand position in the often-dull niche
markets of industrial absorbent products and workplace safety.

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The Marketing Foundation

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What Does Marketing Do?
Builds brand and customer relationships that generate:
• Sales and profits
• For nonprofits, memberships and donations

Traditional goals have been to sell:

• Goods
• Services
• Ideas

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The Marketing Mix (1 of 2)
Marketing accomplishes its goal by managing the four Ps:
1. Product
2. Place
3. Pricing
4. Promotion

Urban Decay cosmetics projects

a street-smart attitude in their
packaging and product names.
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The Marketing Mix (2 of 2)
• Customer relationships must benefit a brand’s
stakeholders.
• Stakeholders are all individuals and groups who have a
stake in the success of the brand.
• Positive relationships create value for a brand.

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Marketing and Messages
Marketing communication (marcom) involves:
• Advertising
• Public relations
• Sales promotion
• Direct response
• Events and sponsorships
• Point of sale
• Digital media
• Packaging
• Personal sales

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Brand Communication
Includes:
• All marketing communication messages and brand
experiences that create and maintain a coherent brand.
• Personal experiences that create and maintain a coherent
brand image.
• Word of mouth.

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Brand Communication’s Role in Marketing
Marketing is designed to build brand and customer
relationships that generate:
• sales and profits.
• for nonprofits, volunteers and donations.

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Principle (1 of 4)
“The challenge is to manage all of the messages delivered
by all aspects of marketing communication so that they work
together to present the brand in a coherent and consistent
way.”

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Who are the Key Players?
There are four categories:
1. Marketers
2. Marketing partners
3. Suppliers and vendors
4. Distributors and retailers
How is this information important to your career path?

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What are the Most Common Types of
Markets?
1. Consumer
2. Business-to-business (B2B)
3. Institutional
4. Channel

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Figure 1.1: Four Types of Markets

The consumer market, which is the target of consumer advertising, public

relations, and promotion, is important, but it is only one of the four types of
markets. The other three are reached through professional and trade marketing
communication.
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How Does the Marketing Mix Send
Messages? (1 of 4)
Product
• Design, performance, and quality
• Communication works to:
– build awareness of a brand.
– explain how the new product works.
– explain how it differs form competitors.

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Figure 1.2: The Marketing Mix

The four marketing mix elements and their related tools and marketing
communication techniques are basic components of marketing. Brand
communication is shown in the middle and overlaps the other three Ps— product,
place/distribution, and price—because all have communication effects.
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The Product as an Element of the Marketing
Mix

The Apple Watch launched in 2015 has a clean design and is a well-
constructed smartwatch with hundreds of apps and the ability to send
and receive calls, similar to an iPhone. It’s also like a super iPod
combined with a fitness device that’s worn on the wrist.
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How Does the Marketing Mix Send
Messages? (2 of 4)
Pricing
Based on:
• What the market will bear
• Competition
• Relative value of the product
• Consumer’s ability to gauge that value

The price sends a “quality” or “status” message!

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How Does the Marketing Mix Send
Messages? (3 of 4)
Place/Distribution
• Includes channels used to make the product accessible to
customers.
• Distribution channel also sends a message.
• Marketers may use a “push” or “pull” strategy.

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The Price as an Element of the Marketing
Mix

This sign for McDonald’s highlights its $1 items. The $1 menu has
become a competitive battleground for the fast-food category.

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How Does the Marketing Mix Send
Messages? (4 of 4)
Other functions in the mix
• Personal sales
• Lead generation
• Customer service

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What is the Added Value of Marcom?
• Added value is a strategy/activity making the product
more useful or appealing to the consumer/distribution
partners.
• The three Ps of product, price, and place add more
tangible value.
• Marcom also adds psychological value.

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An Example of Promotion from the 19th
Century
Ads for Lydia Pinkham’s Vegetable
Compound appeared in newspapers
in the 1870s with claims that the
product “goes to the very root of all
female complaints.”
Other turn-of-the-century
concoctions made even more
dramatic and extreme claims.

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What is Integrated Marketing
Communication?

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Integrated Marketing Communication
(IMC) Defined
• IMC is the practice of coordinating all brand
communication messages and messages from the
marketing mix decisions.
• Integration means every message is focused and works
together.
• This creates synergy: the whole has more impact than the
sum of its parts.

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Principle (2 of 4)
IMC is like a musical score that helps the various
instruments play together. The song is the meaning of the
brand.

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Why Focus on Brands?
Let’s define “brand:”

a perception, often imbued with emotion, that results from

experiences with and information about a company, an
organization, or a line of products.”

Products carry brands, but so do organizations.

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Figure 1.3: The Hierarchy of Brand
Communication

Brand communication begins with a brand strategy that is outlined in a

marketing plan. Then specific plans are developed for the relevant
marcom areas that are needed to implement the marketing and brand
strategy.
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Branding Differentiates Products and
Organizations
There are many different
types of tennis shoes.
The advertising challenge is to
create a distinctive brand
image for the product.
What do you think this ad
says about the Keds brand?

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How Does a Brand Acquire Meaning?
• Marketing communication delivers meaning-making cues
and images to brands.
• This perception, called brand meaning, is the one aspect
of a brand that can’t be copied.
• A brand is:
– a perception loaded with emotions and feelings.
– tangible elements such as a trademark or package
design.

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What is the Brand Essence of this Campaign?

As this travel planner cover shows,

Billings finds its brand essence as
a Montana city that connects you
to the authentic historical West.
The starting point idea was
supported in the “trail” graphic with
its “X marks the spot” symbol. The
“Where Ya Headin’?” tagline
expresses the idea that Billings is
the gateway for adventure.

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Principle (3 of 4)
A brand is an integrated perception derived from personal
experiences with and messages about the brand.

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How Does Brand Transformation Work? (1 of 4)
Successful brands:
• Are distinctive
• Create an association
• Offer a benefit
• Carry a heritage
• Are simple
• Are often based on a distinctive
graphic: a logo, trademark,
character or other visual cue

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The Coca-Cola Brand in the Chinese Market

Although the distinctive logo is known around the world, Coca-Cola’s

brand name needed to be represented in Chinese characters that had
meaning for the Chinese market.

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How Does Brand Transformation Work? (2 of 4)
• Brand identity cues are generally the brand name, but they
can also be visual symbols.
• A logo is similar to a cattle brand in that it stands for the
product’s source.
• A trademark is a legal sign that indicates legal ownership.

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The Dangers of Trademark Abuse

Ads such as this one warn against using Xerox as a general term for a
copy machine or as a verb for making a copy. The zipper is a reminder
that the Zipper brand lost the rights to its name when the term became
used as a category label.

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How Does Brand Transformation Work? (3 of 4)
Brand position and promise
• Brand position identifies the location a product or brand
occupies in consumers’ minds relative to competitors.
• Brand promise identifies key selling points for the
product.

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A Parity Product Becomes a Powerful Brand

The development of the Ivory Soap

brand by Procter & Gamble in 1879
represented a major advance in
branding because of the way its
makers built a meaningful brand
concept to transform a parity
product (a product with few
distinguishing characteristics)—soap
—into a powerful brand—Ivory.

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How Does Brand Transformation Work? (4 of 4)
Brand image
• Brand image is a mental picture or idea about a brand
that contains both associations and emotions.
• Brand personality humanizes an organization or a brand.
It symbolizes the personal qualities of people you know.

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Packaging Sends a Brand Message

Celestial Seasonings uses its distinctive packages to send messages to

consumers about its brand image. In what way do package like this
reinforce the brand personality?
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Brand Value and Brand Equity (1 of 3)
• Brand value comes in two forms:
– Its value to a consumer
– Its value to the corporation
• Cause marketing helps communities and nonprofit
organizations while generating goodwill, positive word of
mouth.

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Brand Value and Brand Equity (2 of 3)
Brand equity is the
intangible value of the brand
based on the relationships
with its stakeholders as well
as its intellectual property
value.
Brands have a financial
value that can be plotted on
a balance sheet.

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Principle (4 of 4)
Brand relationships drive brand value.

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Brand Value and Brand Equity (3 of 3)
Leveraging brand equity
• Brand extension: the use of an established brand name
with a related line of products.
• Cobranding: uses two brand names owned by two
separate companies to create a partnership offering.
• Brand licensing: the brand is rented to a business
partner.
• Ingredient branding: the brand name is used in
manufacturing, advertising or other promotion.

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Intel Inside Uses Ingredient Branding
Intel Inside is an example of
ingredient branding, in which a
computer manufacturer
advertises that it is using Intel
chips as a testimony to the
product’s quality.
On what brands have you seen
this Intel Inside logo exhibited?

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Brand Communication in a Time of
Change

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Accountability
• Managers are challenged to prove they are pursuing the
most effective marketing strategies.
Return on investment (ROI)
• What did the program cost, and what did it deliver in
sales?

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Brand Relationship Strategies
• Relationship building programs shift the strategy from one-
time purchases to repeat purchases and long-term brand
loyalty.
• Brand relationship programs involve all the brand’s critical
stakeholders.

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Word-of-Mouth Marketing
• Word-of-mouth communication has emerged because
of its inherent persuasiveness.
• You tend to believe what you hear from a friend, family
member, or other important person in your life.
• Viral marketing refers to information spread quickly on the
Internet through a wide network of contacts.

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Global Marketing (1 of 2)
• Global marketing is growing rapidly.
• A local brand is marketed in a single country.
• A regional brand is one marketed throughout a global
region.
• An international brand is available in many different
countries.
• A global brand is available virtually everywhere in the
world.

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Global Marketing (2 of 2)
• Here are a few brands
that represent different
types of geographical
marketing strategies.
• As a class: See if you
can identify each of
these.

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Convergence
• Consumers are empowered and engage in both sending
and receiving messages.
• Media forms are becoming blurred: print, television, online,
cell phones, and watches.
• Advertising, public relations, and other marcom areas are
blurring their functions as well as integrating their
programs.

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Diversity
• Marketing programs and marketing communication are
becoming more socially inclusive.
• Ethnicity is equally important.
• A 2015 Google study concluded that messages about
diversity and equality have widespread impact.
• Brands are held accountable for their stance on political
and social issues.

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Barbie Builds Diversity in the 21 st Century

The traditional blond Barbie has become more culturally diverse after
Mattel launched its Fashionista line with 23 dolls in 8 skin tones, 14 facial
styles, 18 eye colors, 22 hairstyles, and 23 hair colors, along with a
variety of different fashions.
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Looking Ahead
• Marketing and marcom begin with coordination across a
variety of communication functions and tools.
• That coordination is complicated by changes in the
industry.
• We will continue to track these changes in the next three
chapters.

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It’s a Wrap

“Kiss a Pig and Hug a Sock”

• When it comes to marketing and product innovation, New
Pig has excelled.
• Its marketing team delights customers with catalogs,
advertisements, videos, and other communications.
• New Pig fights grime with clever marketing communication
designed to make dull products fun.

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Copyright

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