Marketing management Chapter 17 pps

Marketing communications can contribute to brand equity by establishing the brand in memory and crafting a brand image.. As Figure 17.1 shows, marketing communications activities contrib

COMMUNICATING VALUE

IN THIS CHAPTER, WE WILL

ADDRESS THE FOLLOWING

4 What is the communications mix

and how should it be set?

5 What is an integrated marketing

communications program?

CHAPTER 17 DESIGNING AND

MANAGING INTEGRATED MARKETING

COMMUNICATIONS

M o d e r n m a r k e t i n g calls f o r m o r e t h a n d e v e l o p i n g a g o o d p r o d u c t ,

p r i c i n g i t attractively, a n d m a k i n g it accessible C o m p a n i e s m u s t also communicate w i t h present and p o t e n t i a l stakeholders, a n d t h e general public For most companies, t h e question is n o t w h e t h e r t o communicate b u t rather w h a t t o say, h o w t o say it, t o w h o m , and

h o w o f t e n But communications g e t harder and harder as more a n d

m o r e companies clamor t o g r a b t h e consumer's increasingly d i v i d e d

a t t e n t i o n To reach t a r g e t markets and b u i l d b r a n d equity, holistic marketers are creatively e m p l o y i n g m u l t i p l e f o r m s o f communica- tions 1 In introducing t h e M i n i , f o r e x a m p l e , B M W d i d n o t even use

TV advertising

A poster ad for the Mini Cooper, part of the guerrilla communications

campaign

535

he tiny Mini automobile was sold for only seven years in the United

States, during the 1960s, before it was withdrawn due to stiff

emis-sion regulations In March 2002, BMW decided to relaunch a new,

I ioaernized Mini Cooper in the United States, targeting hip city dwellers

/ho wanted a cool, fun, small car for under $20,000 With only $20 million to

pend on the introduction, the Mini marketers decided to launch a guerrilla

communications campaign featuring nontraditional uses of billboards,

posters, print ads, and grassroots efforts No TV ads The Mini was stacked

on top of three Ford Excursion SUVs and driven around national auto shows

and 21 major cities The car showed up in other unusual places such as inside

a sports stadium as seats and inside Playboy as a centerfold Text-only billboards proclaimed: "THE SUV BACKLASH OFFICIALLY STARTS NOW," "GOLIATH LOST," and "XXL-XL-L-M-S-MINI." Many communications were linked to a cleverly designed Web site that provided necessary product information The imaginative campaign resulted in a buyer waiting list that was six months long in spring 2002 2

Marketing communications can have a huge payoff This chapter describes how

communications work and what marketing communications can d o for a

com-pany It also addresses how holistic marketers combine and integrate marketing

communications Chapter 18 examines the different forms of mass (nonpersonal)

communications (advertising, sales promotion, events and experiences, and

pub-lic relations and pubpub-licity); Chapter 19 examines the different forms of personal

communications (direct marketing, including e-commerce, and personal selling)

• • •

• • • The Role of Marketing Communications Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the products and brands that they sell In a sense, marketing communications represent the "voice" of the brand and are a means by which it can establish a dialogue and build relationships with consumers

Marketing communications perform many functions for consumers Consumers can be told or shown how and why a product is used, by what kind of person, and where and when; consumers can learn about who makes the product and what the company and brand stand for; and consumers can be given an incentive or reward for trial or usage Marketing com-munications allow companies to link their brands to other people, places, events, brands, experiences, feelings, and things Marketing communications can contribute to brand equity by establishing the brand in memory and crafting a brand image

M a r k e t i n g Communications and Brand Equity

Although advertising is often a central element of a marketing communications program, it is usually not the only one—or even the most important one—in terms of building brand equity The marketing communications mix consists of six major modes of communication:3

1 Advertising -Any paid form of nonpersonal presentation and promotion of ideas, goods,

or services by an identified sponsor

2 Sales promotion - A variety of short-term incentives to encourage trial or purchase of a

product or service

3 Events and experiences - Company-sponsored activities and programs designed to

cre-ate daily or special brand-relcre-ated interactions

4 Public relations and publicity-A variety of programs designed to promote or protect a

company's image or its individual products

5 Direct marketing - Use of mail, telephone, fax, e-mail, or Internet to communicate

directly with or solicit response or dialogue from specific customers and prospects

6 Personal selling- Face-to-face interaction with one or more prospective purchasers for

the purpose of making presentations, answering questions, and procuring orders Table 17.1 lists numerous communication platforms Company communication goes beyond those specific platforms The product's styling and price, the shape and color of the package, the salesperson's manner and dress, the store decor, the company's stationery—all

DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS CHAPTER 17 537

T A B L E 1 7 1 Common Communication Platforms

Advertising Sales Promotion Events/Experiences Public Relations Personal Selling

_

Direct Marketing

Print and broadcast ads Contests, games, Sports Press kits Sales presentations Catalogs

Packaging-outer sweepstakes, lotteries Entertainment Speeches Sales meetings Mailings

Packaging inserts Premiums and gifts Festivals Seminars Incentive programs Telemarketing Motion pictures Sampling Arts Annual reports Samples Electronic shopping Brochures and booklets Fairs and trade shows Causes Charitable donations Fairs and trade TV shopping

Posters and leaflets Exhibits Factory tours Publications shows Fax mail

Directories Demonstrations Company museums Community relations E-mail

Reprints of ads Coupons Street activities Lobbying Voice mail

Display signs Low-interest financing Company magazine

Point-of-purchase displays Entertainment

Audiovisual material Trade-in allowances

Symbols and logos Continuity programs

Videotapes Tie-ins

communicate something to buyers Every brand contact delivers an impression that can

strengthen or weaken a customer's view of the company

As Figure 17.1 shows, marketing communications activities contribute to brand equity in

many ways: by creating awareness of the brand; linking the right associations to the brand

image in consumers' memory; eliciting positive brand judgments or feelings; and/or

facili-tating a stronger consumer-brand connection

One implication of the concept of brand equity is that the manner in which brand

asso-ciations are formed does not matter In other words, if a consumer has an equally strong,

favorable, and unique brand association of Subaru with the concepts "outdoors," "active,"

FIG 17.1 Integrating Marketing Communications

to Build Brand Equity

A magazine ad, with coupon, for

Kleenex® Soft Pack Tissues

Soft Pack Tissues from Kleenex:

and "rugged" because of exposure to a TV ad that shows the car driving over rugged terrain

at different times of the year, or because of the fact that Subaru sponsors ski, kayak, and mountain bike events, the impact in terms of brand equity should be identical

But these marketing communications activities must be integrated to deliver a consistent message and achieve the strategic positioning The starting point in planning marketing communications is an audit of all the potential interactions that customers in the target market may have with the brand and the company For example, someone interested in pur-chasing a new computer might talk to others, see television ads, read articles, look for infor-mation on the Internet, and look at computers in a store Marketers need to assess which experiences and impressions will have the most influence at each stage of the buying process This understanding will help them allocate communications dollars more effi-ciently and design and implement the right communications programs

K L E E N E X S O F T P A C K

To launch its new Kleenex Soft Pack product, Kimberly-Clark budgeted 75 percent of its overall advertising lars to television, 23 percent for print, and 2 percent online to build awareness and drive trial Online ads were found to help reach an audience that TV might have overlooked, and online and magazine ads were found to be the most effective mix for brand awareness 4

dol-Armed with these insights, marketers can judge marketing communications according to its ability to build brand equity and drive brand sales For example, how well does a proposed

ad campaign contribute to awareness or to creating, maintaining, or strengthening brand associations? Does a sponsorship cause consumers to have more favorable brand judg-ments and feelings? To what extent does a promotion encourage consumers to buy more of

a product? At what price premium?

DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS CHAPTER 17 539

From the perspective of building brand equity, marketers should evaluate all the

differ-ent possible communication options according to effectiveness criteria (how well does it

work) as well as efficiency considerations (how much does it cost) This broad view of

brand-building activities is especially relevant when marketers are considering strategies

to improve brand awareness

Brand awareness is a function of the number of brand-related exposures and experiences

accumulated by the consumer.5 Anything that causes the consumer to notice and pay

atten-tion to the brand can increase brand awareness, at least in terms of brand recogniatten-tion The

visibility of the brand typically found with sponsorships suggests that these activities may be

especially valuable for enhancing brand recognition To enhance brand recall, however,

more intense and elaborate processing may be necessary so that stronger brand links to the

product category or consumer needs are established to improve memory performance

Similarly, because brand associations, responses, and relationships can be created in

many different ways, all possible marketing communication options should be considered

to create the desired brand image and knowledge

B O S T O N S Y M P H O N Y O R C H E S T R A I N C

With classical music audiences dwindling to a small core of older and more affluent concertgoers, the Boston

Symphony Orchestra (BSO) knew that it had to revamp its advertising to reach new audiences through a variety

of communications channels Prior to 1998, the BSO rarely relied on the Internet But then, through a carefully

coordinated series of market research efforts that included detailed surveys and focus groups, it discovered that

while there was little difference between older and younger audiences when it came to product interest, there

was a big gap in terms of media preferences The older concertgoers were more avid readers of both books and

magazines while younger people were more involved with the Internet and electronic media The BSO developed

an integrated campaign that combined direct mail, e-mail marketing, customized online infomercials, and

taxi-top ads As a result, it increased online revenues from tickets and other sales to $3.7 million in fiscal year 2002,

up from $320,000 in fiscal year 1997 Total sales reached $19 million in 2002, up from $16.7 million in 1997 6

The Communications Process M o d e l s

Marketers should understand the fundamental elements of effective communications Two

models are useful: a macromodel and a micromodel

MACROMODEL OF THE COMMUNICATIONS PROCESS Figure 17.2 shows a

communica-tions macromodel with nine elements Two represent the major parties in a communication—

sender and receiver Two represent the major communication tools—message and media, Four

represent major communication functions—encoding, decoding, response, and feedback The

last element in the system is noise (random and competing messages that may interfere with

the intended communication).7

The model emphasizes the key factors in effective communication Senders must know

what audiences they want to reach and what responses they want to get They must encode

their messages so that the target audience can decode them They must transmit the

mes-sage through media that reach the target audience and develop feedback channels to

mon-itor the responses The more the sender's field of experience overlaps with that of the

receiver, the more effective the message is likely to be

F I G 1 7 2

Elements in the Communications Process

Note that selective attention, distortion, and retention processes—concepts first duced in Chapter 6—may be operating during communication, as follows

intro-1 Selective attention - People are bombarded by about 1,500 commercial messages a day,

which explains why advertisers sometimes go to great lengths to grab audience attention through fear, music, or sex appeals, or bold headlines promising something, such as "How

to Make a Million." Ad clutter is also a major obstacle to gaining attention—noneditorial or programming content ranges from 25 to 33 percent for TV and radio to over 50 percent for magazines and newspapers

2 Selective distortion - Receivers will hear what fits into their belief systems As a result,

receivers often add things to the message that are not there (amplification) and do not notice other things that are there (leveling) The task is to strive for simplicity, clarity, interest, and repetition to get the main points across

3 Selective retention - People will retain in long-term memory only a small fraction of the

messages that reach them If the receiver's initial attitude toward the object is positive and he or she rehearses support arguments, the message is likely to be accepted and have high recall If the initial attitude is negative and the person rehearses counterargu-ments, the message is likely to be rejected but to stay in long-term memory Because per-suasion requires the receiver's rehearsal of his or her own thoughts, much of what is called persuasion is actually self-persuasion.8

MICROMODEL OF CONSUMER RESPONSES Micromodels of marketing tions concentrate on consumers' specific responses to communications Figure 17.3 sum-

communica-marizes four classic response hierarchy models

All these models assume that the buyer passes through a cognitive, affective, and ioral stage, in that order This "learn-feel-do" sequence is appropriate when the audience has high involvement with a product category perceived to have high differentiation, as in purchasing an automobile or house An alternative sequence, "do-feel-learn," is relevant when the audience has high involvement but perceives little or no differentiation within the product category, as in purchasing an airline ticket or personal computer A third sequence,

behav-"learn-do-feel," is relevant when the audience has low involvement and perceives little ferentiation within the product category, as in purchasing salt or batteries By choosing the right sequence, the marketer can do a better job of planning communications.9

dif-Here we will assume that the buyer has high involvement with the product category and

perceives high differentiation within the category We will illustrate the hierarchy-of-effects model (in the second column of Figure 17.3) in the context of a marketing communications

campaign for a small Iowa college named Pottsville:

F I G 1 7 3 |

Response Hierarchy Models

Sources: aE K Strong The Psychology of

Selling (New York: McGraw-Hill 1925),

p 9; b Robert J Laviclge and Gary A Steiner,

"A Model for Predictive Measurements of

Advertising Effectiveness," Journal of

Marketing (October 1961): 61; c Everett M

Rogers, Diffusion of Innovation (New York: The

Free Press, 1962), pp 79-86: "various

sources

Models

Stages

Cognitive Stage

Affective Stage

Behavior Stage

Purchase

Innovation-Adoption Model 0

Awareness

Interest

Evaluation

T Trial

Adoption

Communications Model d

Exposure

T Reception

Cognitive response

Attitude

Intention

Behavior

DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS CHAPTER 17 541

m Awareness If most of the target audience is unaware of the object, the communicator's

task is to build awareness Suppose Pottsville seeks applicants from Nebraska but has no

name recognition there Suppose there are 30,000 high school juniors and seniors in

Nebraska who may potentially be interested in Pottsville College The college might set the

objective of making 70 percent of these students aware of Pottsville's name within one year

a Knowledge The target audience might have brand awareness but not know much more

Pottsville may want its target audience to know that it is a private four-year college with

excel-lent programs in English, foreign languages, and history It needs to learn how many people

in the target audience have little, some, or much knowledge about Pottsville If knowledge is

weak, Pottsville may decide to select brand knowledge as its communications objective

B Liking If target members know the brand, how do they feel about it? If the audience looks

unfavorably on Pottsville College, the communicator has to find out why If the unfavorable

view is based on real problems, Pottsville will have to fix its problems and then communicate

its renewed quality Good public relations calls for "good deeds followed by good words."

a Preference The target audience might like the product but not prefer it to others In this

case, the communicator must try to build consumer preference by comparing quality, value,

performance, and other features to likely competitors

E Conviction A target audience might prefer a particular product but not develop a

con-viction about buying it The communicator's job is to build concon-viction and purchase intent

among students interested in Pottsville College

0 Purchase Finally, some members of the target audience might have conviction but may

not quite get around to making the purchase The communicator must lead these consumers

to take the final step, perhaps by offering the product at a low price, offering a premium, or

letting consumers try it out Pottsville might invite selected high school students to visit the

campus and attend some classes, or it might offer partial scholarships to deserving students

To show how fragile the whole communications process is, assume that the probability of

each of the six steps being successfully accomplished is 50 percent The laws of probability

suggest that the probability of all six steps occurring successfully, assuming they are

inde-pendent events, would be 5 x 5 x 5 x 5 x 5 x 5, which equals 1.5625 percent If the

proba-bility of each step occurring, on average, was a more moderate 10 percent, then the joint

probability of all six events occurring would be 0001; in other words, only 1 in 10,000!

To increase the odds for a successful marketing communications campaign, marketers

must attempt to increase the likelihood that each step occurs For example, from an

adver-tising standpoint, the ideal ad campaign would ensure that:

1 The right consumer is exposed to the right message at the right place and at the right time

2 The ad causes the consumer to pay attention to the ad but does not distract from the

intended message

3 The ad properly reflects the consumer's level of understanding about the product and

the brand

4 The ad correctly positions the brand in terms of desirable and deliverable

points-of-difference and points-of-parity

5 The ad motivates consumers to consider purchase of the brand

6 The ad creates strong brand associations with all of these stored communications effects

so that they can have an impact when consumers are considering making a purchase

Ill Developing Effective Communications

Figure 17.4 shows the eight steps in developing effective communications We begin with the

basics: identifying the target audience, determining the objectives, designing the

communi-cations, selecting the channels, and establishing the budget

Identify t h e Target A u d i e n c e

The process must start with a clear target audience in mind: potential buyers of the company's

products, current users, deciders, or influencers; individuals, groups, particular publics, or the

general public The target audience is a critical influence on the communicator's decisions on

what to say, how to say it, when to say it, where to say it, and to whom to say it

The target audience can potentially be profiled in terms of any the market segments

iden-tified in Chapter 8 It is often useful to define target audience in terms of usage and loyalty

Identify target audience

' i

Determine objectives

Design communications

i •

Select channels

Establish budget

1 ' Decide on media mix

Measure results

Manage integrated marketing communications

F I G 1 7 4 I Steps in Developing Effective Communications

loyalty involved Image analysis can be conducted to profile the target audience in terms of

brand knowledge to provide further insight

A major part of audience analysis is assessing the current image of the company, its ucts, and its competitors Image is the set of beliefs, ideas, and impressions a person holds regarding an object People's attitudes and actions toward an object are highly conditioned

prod-by that object's image

The first step is to measure the target audience's knowledge of the object, using the arity scale:

famili-Never Heard of Know a Know a Fair Know Very Heard of Only Little Bit Amount Well

If most respondents circle only the first two categories, the challenge is to build greater awareness

Respondents who are familiar with the product can be asked how they feel toward it,

using the favorability scale:

Very Somewhat Somewhat Very Unfavorable Unfavorable Indifferent Favorable Favorable

If most respondents circle the first two categories, then the organization must overcome a negative image problem

The two scales can be combined to develop insight into the nature of the communication challenge Suppose area residents are asked about their familiarity with and attitudes toward four local hospitals, A, B, C, and D Their responses are averaged and shown in Figure 17.5 Hospital A has the most positive image: Most people know it and like it Hospital B is less familiar to most people, but those who know it like it Hospital C is viewed negatively by those who know it, but (fortunately for the hospital) not too many people know it Hospital

D is seen as a poor hospital, and everyone knows it!

Each hospital faces a different communications task Hospital A must work at ing its good reputation and high awareness Hospital B must gain the attention of more peo-ple Hospital C must find out why people dislike it and take steps to improve its quality while keeping a low profile Hospital D should lower its profile, improve its quality, and then seek public attention

maintain-Images are "sticky"; they persist long after the organization has changed Image tence is explained by the fact that once people have a certain image, they perceive what is consistent with that image It will take highly disconfirming information to raise doubts and open their minds, especially when people do not have continuous or new firsthand experi-ences with the changed object

persis-H A A G E N - D A Z S

In recent years, the premium ice cream maker has battled an onslaught of new premium brands hampered by the image it acquired back in the 1980s The brand hired ad agency Goodby, Silverstein and Partners to peel off Haagen-Dazs's sticky image with a new campaign "The name brought up cheesy luxury and [people] thought

of the snobby hedonism of the '80s, like the guy in the ascot leaning against the Bentley," said Goodby's ciate creative director Albert Kelly Goodby developed a campaign that focused on the product's high quality, especially the quality of its ingredients Two spots, "Strawberry" and "Vanilla," show strawberry fields and vanilla plants with the tagline "Haagen-Dazs Made Like No Other," in contrast to previous advertising that focused on luxury with lines such as "Pure Pleasure," or "Just Perfect." 10

asso-D e t e r m i n e t h e Communications Objectives

As we showed with Pottsville College, communications objectives can be set at any level of the hierarchy-of-effects model Rossiter and Percy identify four possible objectives, as follows:11

1 Category Need - Establishing a product or service category as necessary to remove or

satisfy a perceived discrepancy between a current motivational state and a desired tional state A new-to-the-world product such as electric cars would always begin with a communications objective of establishing category need

emo-DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS CHAPTER 17 543

2 Brand Awareness -Ability to identify (recognize or recall) the brand within the category,

in sufficient detail to make a purchase Recognition is easier to achieve than recall—

consumers are more likely to recognize Stouffer's distinctive orange packages than recall

the brand if asked to think of a brand of frozen entrees Brand recall is important outside

the store; brand recognition is important inside the store Brand awareness provides a

foundation for brand equity

3 Brand Attitude - Evaluation of the brand with respect to its perceived ability to meet a

currently relevant need Relevant brand needs may be negatively oriented (problem

removal, problem avoidance, incomplete satisfaction, normal depletion) or positively

oriented (sensory gratification, intellectual stimulation, or social approval) Household

cleaning products often use problem-solution; food products, on the other hand, often

use sensory-oriented ads emphasizing appetite appeal

4 Brand Purchase Intention - Self-instructions to purchase the brand or to take

purchase-related action Promotional offers in the form of coupons or two-for-one

deals encourage consumers to make a mental commitment to buy a product But

many consumers do not have an expressed category need and may not be in the

mar-ket when exposed to an ad, making intentions less likely to be formed For example,

in any given week, only about 20 percent of adults may be planning to buy detergent;

only 2 percent may be planning to buy a carpet cleaner; and only 0.25 percent may be

planning to buy a car

The most effective communications often can achieve multiple objectives For example,

Geico advertises that a 15-minute phone call can result in a 15 percent reduction on auto

insurance, combining both brand attitude and a call to action to build brand purchase

intentions

Developing creative strategy: This ad for Tilex, a household product, focuses on problem-solution—Tilex is called The Mold Killer™

Design t h e Communications

Formulating the communications to achieve the desired response will require solving three problems: what to say (message strategy), how to say it (creative strategy), and who should say it (message source)

MESSAGE STRATEi In determining message strategy, management searches for appeals, themes, or ideas that will tie into the brand positioning and help to establish points-of-parity or points-of-difference Some of these may be related directly to product or service performance (the quality, economy, or value of the brand) whereas others may relate to more extrinsic considerations (the brand as being contemporary, popular, or traditional) John Maloney saw buyers as expecting one of four types of reward from a product: ratio-nal, sensory, social, or ego satisfaction.12 Buyers might visualize these rewards from results-of-use experience, product-in-use experience, or incidental-to-use experience Crossing the four types of rewards with the three types of experience generates 12 types of messages For example, the appeal "gets clothes cleaner" is a rational-reward promise following results-of-use experience The phrase "real beer taste in a great light beer" is a sensory-reward promise connected with product-in-use experience

It is widely believed that industrial buyers are most responsive to performance messages They are knowledgeable about the product, trained to recognize value, and accountable to others for their choices Consumers, when they buy certain big-ticket items, also tend to gather information and estimate benefits

CREATIVE STRATEGY Communications effectiveness depends on how a message is being expressed as well as the content of the message itself An ineffective communication may mean that the wrong message was used or the right message was just being expressed poorly

Creative strategies are how marketers translate their messages into a specific

communica-tion Creative strategies can be broadly classified as involving either "informational" or

"transformational" appeals.13 These two general categories each encompass several ent specific creative approaches

differ-I n f o r m a t i o n a l A p p e a l s An informational appeal elaborates on product or

service attributes or benefits Examples in advertising are problem-solution ads (Excedrin stops headache pain quickly), product demonstration ads (Thompson Water Seal can withstand intense rain, snow, and heat), product comparison ads (Verizon offers better on-line Internet access than Comcast), and testimonials from unknown or celebrity endorsers (NBA phenome-non LeBron James pitching Coca-Cola and Nike) Informational appeals assume very rational processing of the communication on the part of the consumer Logic and reason rule

Hovland's research at Yale has shed much light on informational appeals and their tion to such issues as conclusion drawing, one-versus two-sided arguments, and order of argument presentation Some early experiments supported stating conclusions for the audi-ence Subsequent research, however, indicates that the best ads ask questions and allow readers and viewers to form their own conclusions.14 If Honda had hammered away that the Element was for young people, this strong definition might have blocked older age groups from buying it Some stimulus ambiguity can lead to a broader market definition and more spontaneous purchases

rela-You would think that one-sided presentations that praise a product would be more tive than two-sided arguments that also mention shortcomings Yet two-sided messages may be more appropriate, especially when negative associations must be overcome Heinz

effec-ran the message "Heinz Ketchup is slow good" and Listerine effec-ran the message "Listerine tastes bad twice a day."15 Two-sided messages are more effective with more educated audi-ences and those who are initially opposed.16

Finally, the order in which arguments are presented is important.17 In the case of a sided message, presenting the strongest argument first has the advantage of arousing atten-tion and interest This is important in media where the audience often does not attend to the whole message With a captive audience, a climactic presentation might be more effective In the case of a two-sided message, if the audience is initially opposed, the communicator might start with the other side's argument and conclude with his or her strongest argument.18

one-T r a n s f o r m a t i o n a l A p p e a l s A transformational appeal elaborates on a

non-product-related benefit or image It might depict what kind of person uses a brand (VW advertises to active, youthful people with their "Drivers Wanted" campaign) or what kind of experience results from using the brand (Coast soap has been advertised as "The Eye

DESIGNING A N D M A N A G I N G INTEGRATED MARKETING C O M M U N I C A T I O N S

Opener!") Transformational appeals often attempt to stir up emotions that will motivate

purchase This is the route Clairol took to revive a moribund brand from the 1970s

C L A I R O L H E R B A L E S S E N C E S

"Yes, Yes, Yes," actresses exclaim as they simulate sexual ecstasy while washing their hair and enjoying what

the tag line dubs, "ATruly Organic Experience." Some women find the ad's coy double entendre demeaning The

Advertising Women of New York Club even gave the ad "The Grand Ugly" Award However, Proctor & Gamble,

which acquired Clairol in 2002, credits the ad with bringing the near-dead brand back to life Herbal Essences

became one of the fastest-growing brands in the world, climbing in sales from zero to $700 million in seven

years In explaining its success, the agency creator, The Kaplan Thaler Group, maintains "emotion is the lightning

rod, the trigger to making a purchase." 19

Communicators use negative appeals such as fear, guilt, and shame to get people to do

things (brush their teeth, have an annual health checkup) or stop doing things (smoking,

alcohol abuse, overeating) Fear appeals work best when they are not too strong

Furthermore, fear appeals work better when source credibility is high and when the

com-munication promises to relieve, in a believable and efficient way, the fear it arouses.20

Messages are most persuasive when they are moderately discrepant with what the audience

believes Messages that state only what the audience already believes at best only reinforce

beliefs, and if the messages are too discrepant, they will be counter-argued and disbelieved

Communicators also use positive emotional appeals such as humor, love, pride, and joy

Motivational or "borrowed interest" devices—such as the presence of cute babies, frisky

puppies, popular music, or provocative sex appeals—are often employed to attract

con-sumer attention and raise their involvement with an ad

Borrowed interest techniques are thought to be necessary in the tough new media

envi-ronment characterized by low-involvement consumer processing and much competing ad

and programming clutter In 2003, British singer Sting, who in the 1980s had refused to allow

the lyrics of "Don't Stand So Close to Me" to be used in a deodorant ad, made a lucrative deal

with Ford Motor Company as part of the company's efforts to reach consumers aged 35 and

over In an ad for Jaguar, he was shown being driven around in the car while his latest single,

"Desert Rose," played in the background.21

Although these borrowed interest approaches can attract attention and create more

lik-ing and belief in the sponsor, they may also detract from comprehension, wear out their

wel-come fast, and overshadow the product.22 Attention-getting tactics are often too effective

and distract from brand or product claims Thus, one challenge in arriving at the best

cre-ative strategy is figuring out how to "break through the clutter" to attract the attention of

consumers—but still be able to deliver the intended message

The magic of advertising is to bring concepts on a piece of paper to life in the minds of

the consumer target In a print ad, the communicator has to decide on headline, copy,

illus-tration, and color For a radio message, the communicator has to choose words, voice

qual-ities, and vocalizations The "sound" of an announcer promoting a used automobile has to

be different from one promoting a new Cadillac If the message is to be carried on television

or in person, all these elements plus body language (nonverbal clues) have to be planned

Presenters have to pay attention to facial expressions, gestures, dress, posture, and hairstyle

If the message is carried by the product or its packaging, the communicator has to pay

atten-tion to color, texture, scent, size, and shape

Every detail matters Think how the legendary ad taglines listed on the right were able to

bring to life the brand themes listed on the left

Brand Theme

Our hamburgers are bigger

Our tissue is softer

No hard sell, just a good car

We don't rent as many cars, so we have

to do more for our customers

We provide long-distance phone service

Ad Tagline Where's the Beef? (Wendy's restaurants) Please, Don't Squeeze the Charmin (Charmin bathroom tissue)

Drivers Wanted (Volkswagen automobiles)

We Try Harder (Avis auto rental)

Reach Out and Touch Someone (AT&T telecommunications)

MESSAGE SOURCE Many communications do not use a source beyond the company itself Others use known or unknown people Messages delivered by attractive or popular sources can potentially achieve higher attention and recall, which is why advertisers often use celebrities as spokespeople Celebrities are likely to be effective when they personify a key product attribute Catherine Deneuve's beauty did this for Chanel No 5 perfume, and Paul Hogan's Aussie ruggedness did this for the Subaru Outback wagon On the other hand, using James Garner and Cybill Shepherd to sell beef backfired: Garner subsequently had quintuple bypass surgery, and Shepherd proclaimed she was a vegetarian

What is important is the spokesperson's credibility What factors underlie source bility? The three most often identified are expertise, trustworthiness, and likability.23

credi-Expertise is the specialized knowledge the communicator possesses to back the claim Trustworthiness is related to how objective and honest the source is perceived to be

Friends are trusted more than strangers or salespeople, and people who are not paid to endorse a product are viewed as more trustworthy than people who are paid.24 Likability

describes the source's attractiveness Qualities like candor, humor, and naturalness make

a source more likable

The most highly credible source would be a person who scores high on all three dimensions Pharmaceutical companies want doctors to testify about product benefits because doctors have high credibility Anti-drug crusaders will use ex-drug addicts because they have higher credibility Before his death, Dave Thomas, who had folksy appeal and inherent credibility, did over 800 Wendy's commercials in his trademark red tie and short-sleeve shirt

A well-chosen celebrity endorsement can catapult even the most unlikely product to stardom

S A L T O N A N D G E O R G E F O R E M A N

Salton was a little-known manufacturer of oddball appliances that gained temporary fame in the 1950s with its Saltan Hot Tray, a must-have item for every bridal registry at the time In the early 1990s, the company came up with an indoor grill that seemed destined for obscurity until two-time heavyweight champ George Foreman chose

to not only endorse it, but partner with the company to sell it Foreman and his Lean, Mean, Fat-Reducing Grilling Machine proved to be a match made in hamburger heaven Foreman, now presented as a lovable lug, was renowned for his love of cheeseburgers A year after the launch, he went on home shopping channel QVC to sell the grills The camera caught him in an unscripted moment while presenters were chatting, leaving George with nothing to do except look at the sizzling burgers He took a roll, grabbed one, started eating, and the phone lines began to buzz Foreman has helped Salton sell more than 40 million grilling machines since the mid-1990s, and because he gets

a share of the proceeds, he has earned more than he did as a boxer—over $150 million While the overall wares industry expands only 7 percent annually, Salton has grown more than 46 percent a year since 1995 25

house-"Marketing Insight: Celebrity Endorsements as a Strategy" focuses on the use of testimonials

If a person has a positive attitude toward a source and a message, or a negative attitude

toward both, a state of congruity is said to exist What happens if the person holds one

atti-tude toward the source and the opposite toward the message? Suppose a consumer hears a

likable celebrity praise a brand that she dislikes? Osgood and Tannenbaum say that attitude change will take place in the direction of increasing the amount of congruity between the two evaluations 26 The consumer will end up respecting the celebrity somewhat less or respect-ing the brand somewhat more If a person encounters the same celebrity praising other dis-liked brands, he or she will eventually develop a negative view of the celebrity and maintain negative attitudes toward the brands The principle of congruity implies that communica-tors can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience

Multinational companies wrestle with a number of challenges in developing global communications programs: They must decide whether the product is appropriate for a country They must make sure the market segment they address is both legal and customary They must decide if the style of the ad is acceptable, and they must decide whether ads should be created at headquarters or locally.27

1 Product - Many products are restricted or forbidden in certain parts of the world Beer,

wine, and spirits cannot be advertised or sold in Muslim countries Tobacco products are subject to strict regulation in many countries

DESIGNING A N D M A N A G I N G INTEGRATED MARKETING C O M M U N I C A T I O N S CHAPTER 17 547

A well-chosen celebrity can draw attention to a product or brand, as

when Sarah, Duchess of York — better known as "Fergie"—showed

how she slimmed down thanks to Weight Watchers; or, the celebrity's

mystique can transfer to the brand—Bill Cosby entertains a group of

kids while eating a bowl of Jell-0

The choice of the celebrity is critical The celebrity should have

high recognition, high positive affect, and high appropriateness to the

product Britney Spears has high recognition but negative affect

among many groups Robin Williams has high recognition and high

positive affect but might not be appropriate for advertising a World

Peace Conference Tom Hanks, Meryl Streep, and Oprah Winfrey

could successfully advertise a large number of products because

they have extremely high ratings for familiarity and likability (known

as the Q factor in the entertainment industry)

Celebrities show up everywhere In the hotly contested

male-impotence drug category, pharmaceutical marketers have turned to

celebrities to gain product attention and relevance Initially advertised

by retired politician Bob Dole, Pfizer turned to 40-year-old baseball

slugger Rafael Palmeiro and 45-year-old NASCAR driver Mark Martin

to give its market leader drug, Viagra, a younger appeal Competitor

Levitra turned to famed football coach Iron Mike Ditka to assure its

audience of its speed and quality Only number-three brand Cialis

eschewed celebrity endorsers, spending $100 million to run ads

showing couples in romantic settings

Athletes are commonly employed to endorse athletic products,

beverages, and apparel One of the premier athletic endorsers is cyclist

Lance Armstrong, who battled and beat testicular cancer on his way to

winning six consecutive Tour de France championships He endorses a

number of bicycle and sports products companies, including Trek, PowerBar, and Nike Armstrong's improbable "against all odds" suc- cess story enabled him to win endorsement contracts from companies not affiliated with sports, such as Bristol-Myers Squibb pharmaceuti- cals, Coca-Cola, Subaru, and the U.S Postal Service The total amount

he earned from endorsements in 2003 topped $10 million

Celebrities can play a more strategic role for their brands, not only endorsing a product but also helping design, position, and sell merchandise and services Since signing Tiger Woods in 1996, Nike has seen its share of the golf ball market jump from 1 to 6 percent

Woods has played a key role in developing a series of golf products and apparel that Nike has periodically altered to reflect his changing personality and design tastes

Using celebrities poses certain risks The celebrity might hold out for a larger fee at contract renewal time or withdraw Just as can happen with movies and records, celebrity campaigns can some- times be an expensive flop Even though Celine Dion was locked into

a three-year, $14 million deal, Chrysler chose to discontinue her ads when they deemed them ineffective Similarly, Pepsi chose to drop star endorsers Britney Spears and Beyonce Knowles, whose person- alities may have been too overpowering for the brand, to focus on promoting occasions that go well with drinking Pepsi

The celebrity might lose popularity or, even worse, get caught in a scandal or embarrassing situation After NBA legend Magic Johnson went public with his HIV diagnosis and his extramarital affairs in 1991, his ads were pulled from the air and his endorsement deals were not renewed McDonald's chose not to renew a $12 million annual con- tract with basketball star Kobe Bryant after accusations of rape

Sources: Irving Rein, Philip Kotler, and Martin Scoller, The Making and Marketing of Professionals into Celebrities (Chicago: NTC Business Books, 1997);

Greg Johnson, "Woods Cautious Approach to the Green," Los Angeles Times, July 26,2000, p A1; Bruce Horovitz, "Armstrong Rolls to Market Gold," USA

Today, May 4,2000, p 1B; Theresa Howard, "Pepsi Takes Some Fizz off Vanilla Rival," USA Today, November 16,2003; Keith Naughton, "The Soft Sell,"

Newsweek, February 2,2004, pp 46-47; Betsy Cummings, "Star Power," Sales & Marketing Management, (April 2001): 52-59

2 Market Segment - U.S toy makers were surprised to learn that in many countries

(Norway and Sweden, for example) no TV ads may be directed at children under 12

Sweden lobbied hard to extend that ban to all EU member countries in 2001 but failed

To play it safe, McDonald's advertises itself as a family restaurant in Sweden

3 Style - Comparative ads, while acceptable and even common in the United States and

Canada, are less commonly used in the United Kingdom, unacceptable in Japan, and

illegal in India and Brazil PepsiCo had a comparative taste test ad in Japan that was

refused by many TV stations and eventually led to a lawsuit

4 Local or Global - Today, more and more multinational companies are attempting to

build a global brand image by using the same advertising in all markets When Daimler

AG and Chrysler merged to become the world's fifth-largest automaker, they ran a

three-week ad campaign in more than 100 countries consisting of a 12-page magazine insert, 9

newspaper spreads, and a 24-page brochure that was sent to business, government, and

union leaders and to the news media The campaign's tagline was "Expect the

extraordi-nary," and it featured people from both companies working together

Companies that sell their products to different cultures or in different countries must be

prepared to vary their messages In advertising its hair care products in different countries,

Helene Curtis adjusts its messages Middle-class British women wash their hair frequently,

whereas the opposite is true among Spanish women Japanese women avoid overwashing

their hair for fear of removing protective oils

The California Milk Processor Board's famed ad campaign "Got Milk?" successfully appealed to every major demographic group—but one

r- G O T M I L K ?

When the California Milk Processor Board set out to target Hispanics whose dominant language was Spanish, research uncovered an interesting finding: The "Got Milk?" tagline translated roughly to "Are You Lactating?" Moreover, Hispanics' reaction to the irreverent ads showing what a pain it was to be out of milk was decidedly different Executive Director Jeff Manning observed, "We found out that not having milk or rice in Hispanic households is not funny; running out of milk means you failed your family." A totally different campaign, with the theme "Generations," was created to target Hispanic mothers, posing the question, "Have You Given Them Enough Milk Today?" Instead of deprivation, the ads showed milk as an almost sacred ingredient in cherished

• recipes, handed down from grandmother to mother to daughter in traditional Mexican families 28

Select t h e Communications Channels

Selecting efficient channels to carry the message becomes more difficult as channels of munication become more fragmented and cluttered Think of the challenges in the pharma-ceutical industry: Over 63,000 U.S sales reps "detail" doctors every day, hoping to get five min-utes of a busy doctor's time Some 40 percent of calls do not even result in seeing the doctor, which makes sales calling extremely expensive The industry has had to expand its battery of communications channels to include ads in medical journals, direct mail (including audio and videotapes), free samples, and even telemarketing Pharmaceutical companies sponsor clinical conferences at which they pay physicians to spend a weekend listening to leading physicians extol certain drugs in the morning, followed by an afternoon of golf or tennis

com-All of these channels are used in the hope of building physician preference for their branded therapeutic agent Pharmaceutical companies are also using new technologies

to reach doctors through handheld devices, online services, and videoconferencing ment.29

equip-Communications channels may be personal and nonpersonal Within each are many subchannels

PERSONAL < COMMUNICATIONS CHANNELS Personal communications channels

involve two or more persons communicating directly face-to-face, person-to-audience, over the telephone, or through e-mail Instant messaging and independent sites to collect consumer reviews are another means of growing importance in recent years Personal com-munication channels derive their effectiveness through individualized presentation and feedback

A further distinction can be drawn among advocate, expert, and social communications

channels Advocate channels consist of company salespeople contacting buyers in the target market Expert channels consist of independent experts making statements to target buyers Social channels consist of neighbors, friends, family members, and associates talking to tar-

get buyers In a study of 7,000 consumers in seven European countries, 60 percent said they were influenced to use a new brand by family and friends.30

A study by Burson-Marsteller and Roper Starch Worldwide found that one influential son's word of mouth tends to affect the buying attitudes of two other people, on average That circle of influence, however, jumps to eight online There is considerable consumer-to-consumer communication on the Web on a whole range of subjects Online visitors increas-ingly create product information, not just consume it They join Internet interest groups to share information, so that "word of Web" is joining "word of mouth" as an important buying influence Words about good companies travel fast; words about bad companies travel even faster As one marketer noted, "You don't need to reach 2 million people to let them know about a new product—you just need to reach the right 2,000 people in the right way and they will help you reach 2 million."31

per-Personal influence carries especially great weight in two situations One is with products that are expensive, risky, or purchased infrequently The other is where the product suggests something about the user's status or taste People often ask others for a recommendation for

a doctor, plumber, hotel, lawyer, accountant, architect, insurance agent, interior decorator,

or financial consultant If we have confidence in the recommendation, we normally act on the referral In such cases, the recommender has potentially benefited the service provider

DESIGNING AND MANAGING INTEGRATED MARKETING COMMUNICATIONS CHAPTER 17 549

Marketers' growing interest in word-of-mouth, buzz, and viral

mar-keting have led to a number of new concepts and ideas Here are

three sets of such insights

Research conducted by Renee Dye, a strategy expert with

McKinsey, suggests that buzz evolves according to basic

princi-ples Dye contends that companies seeking to take advantage of

buzz must first overcome five misconceptions about marketing

contagion Here are "The 5 Myths of Buzz":

1 Only outrageous or edgy products are buzz-worthy The

most unlikely products, like prescription drugs, can generate tremendous buzz

2 Buzz just happens Buzz is increasingly the result of shrewd

marketing tactics in which companies seed a vanguard group, ration supplies, use celebrities to generate buzz, leverage the power of lists, and initiate grassroots marketing

3 The best buzz-starters are your best customers Often, a

counterculture has a greater ability to start buzz

4 To profit from buzz, you must act first and fast Copycat

companies can reap substantial profits if they know when to

jump in—and when not to

5 The media and advertising are needed to create buzz

When used either too early or too much, the media and tising can squelch buzz before it ignites

Marketing author Michael Cafferky's Word-of-Mouth Marketing

Tips Web site offers many suggestions on how to build a network

of referral sources Here are five:

1 Involve your customers in the process of making or

delivering your product or service

BUZZ MARKETING

Solicit testimonials from your customers: Use a response

form that asks for feedback—and permission to quote it

3 Tell true stories to your customers: Stories are the central

vehicle for spreading reputations because they communicate

on an emotional level

4 Educate your best customers: You can pick any topic

that is relevant to your best customers and have them become the source of credible, up-to-date information on that topic

5 Offer fast complaint handling: A speedy response is vital

to preventing negative word of mouth from starting, because negative feelings about a product or service may linger for years

Power of Context

Malcolm Gladwell claims that three factors work to ignite lic interest in an idea He calls the first "The Law of the Few."

pub-Three types of people help spread an idea like an epidemic

First are Mavens, people who are knowledgeable about big and small things Second are Connectors, people who know

and communicate with a great number of other people Third

are Salesmen, those who possess great natural persuasive

power

Any idea that catches the interest of Mavens, Connectors, and Salesmen is likely to be broadcast far and wide A second factor is "stickiness." An idea must be expressed so that it moti- vates people to act Otherwise "The Law of the Few" will not lead

to a self-sustaining epidemic A third factor, the Power of Context, will control whether those spreading an idea are able to organize groups and communities around it

Sources: Renee Dye, "The Buzz on Buzz," Harvard Business Review (November-December 2000): 139: Scott R Herriott, "Identifying and Developing Referral

Channels," Management Decision 30, no 1 (1992): 4 - 9 ; Peter H Riengen and Jerome B Kernan, "Analysis of Referral Networks in Marketing: Methods and

Illustration," Journal of Marketing Research (November 1986): 37-78; Jerry R Wilson, Word of Mouth Marketing (New York: John Wiley, 1991); Cafferky's

Free Word-of-Mouth Marketing Tips, 1999, available at < www.geocities.com/wallstreet/6246> Also see Emanuel Rosen, The Anatomy of Buzz (New York:

Doubleday, 2000); Malcolm Gladwell, The Tipping Point: How Little Things Can Make a Big Difference (Boston: Little, Brown & Company, 2000)

as well as the service seeker Service providers clearly have a strong interest in building

refer-ral sources

Communication researchers are moving toward a social-structure view of interpersonal

communication.32 They see society as consisting of cliques, small groups whose members

interact frequently Clique members are similar, and their closeness facilitates effective

com-munication but also insulates the clique from new ideas The challenge is to create more

openness so that cliques exchange information with others in the society This openness is

helped by people who function as liaisons and bridges A liaison is a person who connects

two or more cliques without belonging to either A bridge is a person who belongs to one

clique and is linked to a person in another clique

Many companies are becoming acutely aware of the power of word of mouth or buzz

(See "Marketing Insight: Buzz Marketing.") Products and brands such as Converse

sneak-ers, Hush Puppies shoes, JanSport knapsacks, Krispy Kreme doughnuts, and the

block-buster movie The Passion of The Christ were built through buzz.33 Companies such as Body

Shop, USAA, Starbucks, Palm Pilot, Red Bull, and Amazon were essentially built by word of