SEVENTH IEDITION Advertising, Promotion, and Other Aspects of Integrated Marketing Communications Terence A Shimp University of South Carolina Advertising, Promotion, and Other Aspects of Integrated Marketing Communications, 7th Edition Terence A Shimp VP/Editorial Director: Jack W Calhoun Sr Production Project Manager: Emily S Gross Art Director: Stacy Shirley VP/Editor-in-Chief: Dave Shaut Manager of Technology, Editorial: Vicky True Sr Publisher: Melissa Acuña Technology Project Editor: Pam Wallace Internal and Cover Designer: Craig LaGesse Ramsdell www.ramsdelldesign.com Executive Editor: Neil Marquardt Sr Developmental Editor: Susanna C Smart Marketing Manager: Nicole C Moore Sr Marketing Communications Manager: Terron Sanders COPYRIGHT © 2007 Thomson South-Western, a part of The Thomson Corporation Thomson, the Star logo, and South-Western are trademarks used herein under license Printed in the United States of America 10 09 08 07 06 Web Coordinator: Karen Schaffer Manufacturing Coordinator: Diane Lohman Production House: Stratford Publishing Services Cover Images: © Getty Images Photography Manager: John Hill Photo Researcher: Susan Van Etten Printer: Quebecor World Dubuque Dubuque, IA ALL RIGHTS RESERVED No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means— graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution or information storage and retrieval systems, or in any other manner—without the written permission of the publisher Library of Congress Control Number: 2005936424 For permission to use material from this text or product, submit a request online at http://www.thomsonrights.com Thomson Higher Education 5191 Natorp Boulevard Mason, OH 45040 USA ISBN 0-324-32143-0 For more information about our products, contact us at: Thomson Learning Academic Resource Center 1-800-423-0563 Dedication To my dear wife, Judy, who has been my number-one supporter over the years, and who helped me on this edition by locating advertising illustrations and other visuals Since the previous edition, I have been blessed with two additional grandsons, John Parker and Spencer James —now the twenty-first-century version of a basketball team is in place (my brothers know what I refer to) Also, to all of my family members, past and present, to whom I owe whatever positive character traits I may possess, a heartfelt word of appreciation and love This page intentionally left blank BRIEFICONTENTS Preface xv PART 1: Integrated Marketing Communications: Processes, Brand Equity, and the Marcom Environment 1 Overview of Integrated Marketing Communications and the Marcom Process 2 Marcom’s Challenges: Enhancing Brand Equity, Influencing Behavior, and Being Accountable 30 Ethical, Regulatory, and Environmental Issues in Marketing Communications 54 PART 2: The Fundamental Marcom Decisions: Targeting, Positioning, Objective Setting, and Budgeting Marcom Targeting 88 Marcom Positioning 118 Marcom Objective Setting and Budgeting 87 144 PART 3: Marcom for New Products, Store Signage, and Point-of-Purchase Communications 167 Facilitation of Product Adoption, Brand Naming, and Packaging 168 On- and Off-Premise Signage and Point-of-Purchase Communications 212 PART 4: Advertising Management 10 11 12 13 14 15 16 Overview of Advertising Management: Messages, Media, and Measurement Creating Effective and Creative Advertising Messages 262 Selecting Message Appeals and Picking Endorsers 292 Assessing Ad Message Effectiveness 330 Planning for and Analyzing Advertising Media 364 Using Traditional Advertising Media 406 Employing the Internet for Advertising 438 Using Other Advertising Media 464 237 238 PART 5: Promotion Management, Marketing-Oriented Public Relations, and Sponsorships 17 18 19 20 Sales Promotion and the Role of Trade Promotions 488 Consumer-Oriented Promotions: Sampling and Couponing 526 Consumer-Oriented Promotions: Premiums and Other Promotional Methods Marketing-Oriented Public Relations and Sponsorships 576 487 552 Glossary 601 Name Index 609 Subject Index 615 v This page intentionally left blank CONTENTS Preface xv r Part 1: Integrated Marketing Communications: Processes, Brand Equity, and the Marcom Environment The Concept of Brand Equity Chapter 1: Overview of Integrated Marketing Communications and the Marcom Process Marcom Challenge: B2C and B2B Applications of IMC The Nature of Marketing Communications Marketing Communications at the Brand Level The Integration of Marketing Communications 12 IMC Focus: An Authority Declares That Positioning Is Out of Date 14 Changes in Marketing Communication Practices 15 • Obstacles to Implementing IMC 16 36 IMC Focus: Neuromarketing and the Case of Why Coca-Cola Outsells Pepsi 42 Affecting Behavior and Achieving Marcom Accountability 46 Difficulty of Measuring Marcom Effectiveness 47 • Assessing Effects with Marketing-Mix Modeling 49 Summary 50 17 Chapter 3: Ethical, Regulatory, and Environmental Issues in Marketing Communications Fundamental Marcom Decisions 18 • Marcom Implementation Decisions 20 • Marcom Outcomes 23 • Program Evaluation 23 Chapter 2: Marcom’s Challenges: Enhancing Brand Equity, Influencing Behavior, and Being Accountable Global Focus: When Brand Marketers Must Deal with Unfavorable Country Images What Benefits Result from Enhancing Brand Equity? 44 • Characteristics of World-Class Brands 44 Global Focus: Baby Carriages as Touch Points Summary 32 A Firm-Based Perspective on Brand Equity 33 • A Customer-Based Perspective on Brand Equity 33 How Can Brand Equity Be Enhanced? 40 What Exactly Is IMC? • The Payoff from IMC: The Value of Synergy • Key IMC Features A Model of the Marketing Communications Decision-Making Process 24 30 Marcom Challenge: Harley-Davidson—An Iron Horse for Rugged Individualists 30 Desired Outcomes of Marcom Efforts 32 54 Marcom Challenge: Trans Fat Labeling 54 Overview 56 Ethical Issues In Marketing Communications 57 The Ethics of Targeting 58 IMC Focus: An Adman’s Struggle with Joe Camel and Free Speech 61 vii viii Contents Ethical Issues in Advertising 62 • Ethical Issues in Public Relations 65 • Ethical Issues in Packaging and Branding 66 • Ethical Issues in Sales Promotions 67 • Ethical Issues in Online Marketing 67 Global Focus: Is the Use of the “SOR” Brand Logo Too Similar to “SCR”? Regulation of Marketing Communications When Is Regulation Justified? 70 • Regulation of Marketing Communications by Federal Agencies 71 • State Agencies’ Regulation of Marketing Communications 75 • Advertising Self-Regulation 76 67 Fostering Ethical Marketing Communications 68 IMC Focus: A Rigged Promotion for Frozen Coke 69 Environmental, or “Green,” Marketing Communications Part 2: The Fundamental Marcom Decisions: Targeting, Positioning, Objective Setting, and Budgeting 88 Marcom Challenge: Esprit and Gap—No Longer Just for Youth 88 Targeting Customers and Prospects 90 Behaviorgraphic Targeting 90 Online Behavioral Targeting 92 • Privacy Concerns 93 Phychographic Targeting 93 Geodemographic Targeting 98 Demographic Targeting 99 The Changing Age Structure 100 IMC Focus: Tweens and Materialism 105 Global Focus: Can Renault Develop a Hip Image? 106 The Ever-Changing American Household 109 • Ethnic Population Developments 109 113 Summary 114 118 Marcom Challenge: Tango to Success 118 Positioning in Theory: A Matter of Creating Meaning 120 Benefit Positioning 125 87 126 Attribute Positioning 127 • Repositioning a Brand 129 IMC Focus: Diamonds (Given to Yourself) Are Forever 130 Implementing Positioning: Know Thy Consumer 130 The Consumer Processing Model (CPM) 131 • The Hedonic, Experiential Model (HEM) 137 Summary Chapter 6: Marcom Objective Setting and Budgeting 139 144 Marcom Challenge: Brands with the Most Loyal Customers 144 Overview 146 Setting Marcom Objectives 146 IMC Focus: The Cat(fight) Is a Dog 150 Requirements for Setting Suitable Marcom Objectives 152 • Should Marcom Objectives Be Stated in Terms of Sales? 153 Marcom Budgeting 156 Budgeting in Theory 156 The Meaning of Meaning 121 • Meaning Transfer: From Culture to Object to Consumer 121 Positioning in Practice: The Nuts and Bolts Global Focus: The Symbolism of Certifying Products as Fair Traded 82 The Hierarchy of Marcom Effects 147 IMC Focus: A Special Beverage for Latino Consumers, Clamato Chapter 5: Marcom Positioning 77 Green Marketing Initiatives 77 • Guidelines for Green Marketing 81 Summary r Chapter 4: Marcom Targeting 70 Global Focus: The Top-25 Global Marketers’ Advertising Spending 157 Practical Budgeting Methods 159 Summary 123 165 Contents ix r Part 3: Marcom for New Products, Store Signage, and Point-ofPurchase Communications Chapter 7: Facilitation of Product Adoption, Brand Naming, and Packaging 168 167 Chapter 8: On- and Off-Premise Signage and Point-of-Purchase Communications 212 Marcom Challenge: Absolut Wanna Be Becomes Absolute Flop 168 Marcom Challenge: “Shopping Buddy”— an Intelligent Shopping Cart 212 Overview 170 Overview 214 Marcom and New Product Adoption 170 Out-of-Home (Off-Premise) Advertising 214 Product Characteristics That Facilitate Adoption 173 Global Focus: Washing Machines for the Masses in Brazil, China, and India 174 Managing the Diffusion Process 179 Stimulating Word-of-Mouth Influence 180 On-Premise Business Signage 183 Some Anecdotal Evidence 183 • Formal Perspective on Buzz Creation 185 • Using the Internet for Creating Buzz 188 Brand Naming 189 195 Packaging 197 Packaging Structure 197 • Evaluating the Package: The VIEW Model 200 203 221 The Spectrum of P-O-P Materials 222 • What Does P-O-P Accomplish? 222 • P-O-P’s Influence on Consumer Behavior 223 IMC Focus: ABC, CBS, Fox, NBC, and Now Wal-Mart TV Network IMC Focus: Selecting a Name for a New Airline 219 Types of Signs 220 • The ABCs of On-Premise Signs 220 • Don’t Be a Fool 221 Point-of-Purchase Advertising What Constitutes a Good Brand Name? 189 • The Brand-Naming Process 193 • The Role of Logos 195 IMC Focus: Illustrations of Workable Packages Global Focus: Live Soccer Players on Japanese Billboards 217 A Case Study of Billboard Effectiveness 218 Strong and Weak Ties 180 • Opinion Leaders and Market Mavens 181 • Avoid Negative Information 182 Creating “Buzz” Billboard Advertising 215 • Buying Out-ofHome Advertising 215 • Billboard Advertising’s Strengths and Limitations 216 • Measuring OOH Audience Size and Characteristics 217 224 A Vital Result of P-O-P: Increased In-Store Decision Making 226 • Evidence of Display Effectiveness 230 • The Use and Nonuse of P-O-P Materials 232 • Measuring In-Store Advertising’s Alliance 232 Summary 233 Designing a Package 204 Summary r 206 Part 4: Advertising Management Chapter 9: Overview of Advertising Management: Messages, Media, and Measurement 238 Marcom Challenge: Is Advertising Rocket Science? 238 Overview 240 The Magnitude of Advertising 240 IMC Focus: B2B Advertising on Television 241 Advertising-to-Sales Ratios 244 • Advertising Effects Are Uncertain 245 Advertising Functions Informing 246 • Influencing 247 • Reminding and Increasing Salience 247 • Adding Value 247 • Assisting Other Company Efforts 248 246 237 Global Focus: A Global Advertising Campaign for Exxon Mobil 248 The Advertising Management Process 249 Managing the Advertising Process: The Client Perspective 249 • The Role of Advertising Agencies 250 • Agency Compensation 253 Ad-Investment Considerations 254 The Case for Investing in Advertising 254 • The Case for Disinvesting 255 • Which Position Is More Acceptable? 255 Summary 259 ... IEDITION Advertising, Promotion, and Other Aspects of Integrated Marketing Communications Terence A Shimp University of South Carolina Advertising, Promotion, and Other Aspects of Integrated Marketing. .. dynamic nature of this field or to make a career in advertising, promotions, or some other aspect of marketing, Advertising, Promotion, and Other Aspects of Integrated Marketing Communications. .. illustrations and examples Advertising, Promotion, and Other Aspects of Integrated Marketing Communications is intended for use in undergraduate or graduate courses in marketing communications, advertising,