MKTG 4550: The Role of MarcomMKTG 4550: The Role of Marcom

Dr. CampbellTh 1/13/05

Plan for the DayPlan for the Day

• What marketing communications can do

• Brand equity

• Integrated marketing communications

What is Marketing?What is Marketing?

“The process of planning andexecuting the conception, pricing,

promotion, and distributionof ideas, goods, and services to

create exchanges that satisfyindividual and organizational

objectives”

American Marketing Association

Marketing Analysis and the Marketing MixMarketing Analysis and the Marketing Mix

Customers Competitors Company

Product

Price

Promotion

Place

Functions of MarcomFunctions of Marcom

Communicate information

Communicate positioning / build brand equity

Marcom

BrandEquity

An orange…is an orange…is an orange.

What is a Brand?What is a Brand?

• “…A name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” (AMA)

•

Brand Equity: Asset-Based DefinitionBrand Equity: Asset-Based Definition

A set of brand assets and liabilities linked to a brand, its name and symbol, that add to or subtract

from the value provided by a product or service to a firm and/or to that

firm’s customers.

Dave Aaker

Brand Equity: Customer-Based DefinitionBrand Equity: Customer-Based Definition

The differential effect thatThe differential effect thatbrand knowledge has onbrand knowledge has on

consumer response to the consumer response to the marketing of that brand.marketing of that brand.

Kevin Lane Keller

Customer-Based Brand Equity

BRAND EQUITY

Awareness

BrandAssociations

/Meaning

Strong

Favorable

Unique

Benefits of Strong Brand EquityBenefits of Strong Brand Equity

• Greater brand loyalty

• Larger margins

• Less elastic responses to price increase

• More elastic responses to price decreases

• Communication efficiency/effectiveness

• Resistance to competitive marketing actions

• Licensing extension opportunities

• Greater trade cooperation and support

• More “lenient” perceptions

Customer Benefits of BrandsCustomer Benefits of Brands

Building Customer-Based Brand EquityBuilding Customer-Based Brand Equity• Creating a brand requires putting a

label and meaning to a product or service– Label Brand elements

– Meaning Marketing mix• Strong• Favorable• Unique

Role of Marketing CommunicationsRole of Marketing Communications• Marketing Communications are good

at these necessary tasks– Establishing a label

– Creating awareness

– Developing meaning

– Associating the meaning with the label

The Goal of Marcom ManagementThe Goal of Marcom Management

Manage all “brand contacts” to build a cohesive brand

There are Many AudiencesThere are Many Audiences

• External Audiences– Consumer

– Industry• Channel• Competition

– as antagonists

– as potential partners

– Media

– Investment community

• Internal Audiences– Employees

– Stockholders

The Goal of Marcom ManagementThe Goal of Marcom Management

“Brand Equity”

Build

Steps in Creating Strong Brand EquitySteps in Creating Strong Brand Equity• Develop a great product

• Determine desired, differentiated positioning

• Create accessible, favorable brand attitudes by communicating consistent brand position/image in all elements of the marketing mix– Product

– Pricing

– DistributionMarketing Communications

Definition of “Promotion”Definition of “Promotion”

The coordination of all seller initiated efforts to set up

channels of information and persuasionin order to sell goods and services

or promote and idea.

Mike Ray 1972

What are“Integrated Marketing Communications”?

What are“Integrated Marketing Communications”?

American Association of Advertising Agencies

The recognition of the added value in a program that integrates a variety of marketingdisciplines and combines these disciplines toprovide clarity, consistency, and maximum

communications impact.

ConclusionConclusion

Promotional management is the process of developing

communications strategy and coordinating the promotional mix elements to develop and control an integrated program

of effective marketing communication that builds

strong brand equity.

Next class…Next class…

• Read BB Ch 2