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Integrated

Marketing
2 Communications
For Libraries
Adjunct Lecturer:

Debbie Goodman MSc, BBA, LCCI, Dip

September to December 2013

1-1
Integrated
Marketing Communications
2 For Libraries
Session Overview
Session 2 Topics:
• Defining Target Audiences.
• Market Segmentation.
• The Corporate Image.
• Components of a Corporate Image.
• The Role of a Corporate Image
• Promoting the desired Image
• Corporate Image and Logos
• Branding Strategies
• The Role of Corporate Advertising in building
the Brand Image
• Positioning.
Session Two

2-2
Defining Target
Audiences
A group of people who receive
marketing communication
messages and have significant
potential to respond to the
messages.

Session Two

2-3
Market Segmentation
IMC experts use segmentation to
identify specific purchasing groups
based on their needs, attitudes and
interests.

A market segment is a set of


businesses or groups of individuals,
consumers with distinct characteristics.
Session Two

2-4
Market Segmentation
Benefits of Segmentation: It focuses on the
advantages consumers receive from a
product/service rather than the characteristics of
consumers themselves. Segmenting the market
also:
- Helps marketers identify company strengths and
weakness as well as opportunities
- Serves to match the goals of the firm with a set of
consumers
- Clarify marketing objectives
- Link company strategies to select group of
customers
Session Two

2-5
Methods of Market
Segmentation
Demographics
These are population characteristics. Typical
demographics segmentation variables useful
in IMC include: Gender, age, education,
income, race and ethnicity. This is based on
the idea that people with distinguishable
characteristics have different needs.

Session Two

2-6
Methods of Market
Segmentation Continued
Psychographics
These emerge from patterns of responses
that reveal a person’s attitude, interest and
opinions (AIO). AIO measures can be
combined with demographic information to
provide marketers with a more complete
understanding of the market to be targeted.

Session Two

2-7
Methods of Market
Segmentation Continued
Generations
The concept behind this method of
segmentation is that common experiences
and events create bonds between people
beyond those based merely on age.

Session Two

2-8
Methods of Market
Segmentation Continued
Geographic Area
This method is especially useful for retailers
who want to limit marketing communications
programmes to specific areas. The primary
disadvantage is that everyone in a
geographic area receives the communication
or is exposed to the advertisement
regardless of interest.

Session Two

2-9
Methods of Market
Segmentation Continued
Geodemographic Segmentation
This method is a hydrid form as it combines
census (demographics) data with
psychographic information.

Session Two

2-10
THE CORPORATE IMAGE
A firm’s image is based on the feelings consumers and businesses
have about an organization as well as evaluations of individual
brands. Advertising, sales promotions, websites, trade promotions,
personal selling and other marketing activities are all part of the
larger umbrella of the firm’s general image.

If the image of the organization or one of its brands becomes


tarnished, profit often plummets, and rebuilding or revitalizing that
image is a momentous task.

Corporate images summarize what the company stands for


and how well its position has been established. Developing
and maintaining a quality image is one key responsibilities
management and all employees. Employees are expected to
be brand ambassadors.
Session Two

2-11
Components of a Corporate Image

Tangible Elements Intangible Elements

1. Goods and services sold.


2. Retail outlets where product
is sold. 1. Corporate, personnel, and
3. Factories where product is environmental policies.
produced. 2. Ideals and beliefs of corporate
4. Advertising, promotions, and personnel.
other forms of communications. 3. Culture of country and location
5. Corporate name and logo. of the company.
6. Employees 4. Media reports.

Session Two

2-12
A corporate
image
advertisement
by State Farm

A State Farm
advertisement
informing
consumers about
the company’s goal
of making driving
safer.

Source: Courtesy of
State Farm Insurance
Companies

Session Two

2-13
Role of Corporate Image continued

• Consumer perspective
• Assurance regarding purchase decision of
familiar products in unfamiliar settings
• Assurance concerning purchases where
there is little previous experience
• Reduction of search time in purchase
decision
• Psychological reinforcement and social
acceptance

Session Two

2-14
Role of Corporate Image continued

• Business to Business Perspective


• Reduces risk
• Reduce search and decision making process
• Psychological reinforcement
• Ease in expanding internationally

Session Two

2-15
Role of Corporate Image continued
• Company Perspective
• Extension of positive consumer feelings to
new products
• The ability to charge a higher price or fee
• Consumers loyalty leading to more frequent
purchases
• Positive word-of-mouth endorsements
• The ability to attract quality employees
• More favorable ratings by financial observers
and analysts

Session Two

2-16
PROMOTING THE DESIRED IMAGE

Communicating proper image is


critical to an organization's success.
The nature of a company’s image
include its customers, suppliers and
employees.

Session Two

2-17
PROMOTING THE DESIRED IMAGE
Continued
In making decisions about the image to be
projected, marketers should be cognizant of the
following:
• The image being projected must accurately portray
the firm and coincide with the products and services
being sold.
• Reinforcing or rejuvenating a current image that is
consistent with the view of consumers is easier to
accomplish than changing a well established image.
• It is very difficult to change the images people hold
about a given company. In some cases, modifying or
developing a new image simply cannot be done.
• Any negative or bad press can quickly destroy an image
that took years to build. Reestablishing or rebuilding the
firm’s image takes a great deal of time once its reputation
has been damaged. Session Two

2-18
Promoting the Right Image

• Creating the right image.


• Conveys a clear message about the organization.
• Should portray the nature of the firm.
• Fit with products being sold.
• Rejuvenating an image.
• Easier than changing a well-established image.
• Add new elements but continue current image.
• Changing an image
– Extremely difficult.
– Necessary when
• Target market has shrunk or disappeared.
• Current image not consistent with industry trends.

Session Two

2-19
CORPORATE NAMES AND LOGOS

A corporate name is the overall banner


under which all other operations occur.
“The corporate name is really the
cornerstone of a company’s relationship
with its customers” (David Placek,
president and founder of Lexicon Inc.). “It
sets an attitude and tone and it is the first
step toward a personality.”

Session Two

2-20
Test for Effective Logos
• Should be easily recognizable.
• Should be familiar.
• Should elicit a consensual meaning among
firm’s target market.
• Stimulus codeability
• Should evoke positive feelings.

Session Two

2-21
Benefits of Logo Recognizability

 Aids in recall of specific brands.


 Aids in recall of advertisements.

 Reduces shopping effort.

 Reduces search time and evaluation of


alternatives.

Session Two

2-22
Logo Recognizability

McDonald’s Golden Arches logo is recognizable


enough to stand on its own.
Session Two

2-23
Companies often
create product icons
to develop an identity
for their products.

Mr. Clean icon


Is an effective
representative
for its product.

Session Two

2-24
BRANDING
Brands are names generally assigned to a
product or service or a group of complementary
products while a corporate image covers every
aspect of the company.

A company such as Procter and Gamble carries


many brands such as Tide, Cheer and Bold laundry
detergents; Crest and Gleem; Old Spice, Secret and
Sure deodorants.

Session Two

2-25
BRANDING continued

A Well Known Brand


• Provides quality assurance.
• Reduces search time.
• Allows a company to charge more.
• Reduces brand similarity.
• Consumers choose a brand because it is:
– Outstanding
– Memorable
– Noteworthy
Session Two

2-26
The Ford brand name:
 is among world’s top 10.
 provides assurance of
quality.
 has high brand equity.

Session Two

2-27
Developing a Strong Brand Name
Developing a strong brand begins with the discovering
why consumers buy and rebuy a brand. The following
must be considered:
• What are the most compelling benefits?
• What emotions are elicited by the brand either
during or after the purchase?
• What one word best describes the brand?
• What is important to consumers in the purchase of
the product?

Session Two

2-28
PACKAGING
• Traditional elements
• Protect the product inside
• Provide for ease of shipping, moving, and
handling
• Provide for easy placement on store shelves
• Prevent or reduce the possibility of theft
• Prevent tampering
• New trends
• Meet consumer needs for speed, convenience
and portability
• Must be contemporary and striking
• Must be designed for ease of use
Session Two

2-29
LABELS

• Must meet legal requirements.

• Provide another marketing opportunity.

Session Two

2-30
BRAND EQUITY

Brand equity is the set of


characteristics unique to a brand
that allows the company to
charge a higher price and retain
a greater market share than
would otherwise be expected for
an undifferentiated product.

Session Two

2-31
Benefits of Brand Equity

• Higher prices
• Higher gross margins
• Channel power
• Additional retail shelf space
• Reduces customer switching
behavior
• Prevents erosion of market share

Session Two

2-32
Building Brand Equity

1. Research current brand image.


2. Decide what makes the brand unique.
3. Communicate brand’s uniqueness.
4. Spend heavy on advertising.
5. Make domination the goal.
6. Deliver on uniqueness.

Session Two

2-33
SUCCESSFUL
BRAND DEVELOPMENT

• Continue commitment to the brand


• Increase market penetration
• Understand the brand’s target market
• Leverage the effects of penetration

Session Two

2-34
THE ROLE OF
CORPORATE ADVERTISING
IN BUILDING BRAND IMAGE
Corporate advertising can be defined as paid use
of media that seeks to benefit the image of the
corporation as a whole rather than its products or
services alone. ---Paul Argenti

Corporate advertising is designed to promote the


firm overall—by enhancing its image, assuming a
position on a social issue or cause, or seeking
direct involvement from the market.

Session Two

2-35
Head and Shoulders
is one of the brands
sold by Proctor &
Gamble.

Session Two

2-36
Role of Corporate Advertising
in Building Brand Image (continued)

One of the earliest documented corporate


advertisements was paid for by American Telephone
and Telegraph Company (AT&T) in June 1908.

During the Second World War the use of this form of


advertising was increased to maintain ‘top of the mind
awareness”.
.

Session Two

2-37
Role of Corporate Advertising
in Building Brand Image (continued)
oAfter World War ІІ corporate advertising faded from view
until the 1970’s when oil companies needed to defend
themselves from allegations of exorbitant profits during the
oil crisis. Today advertising has become highly visible and
intensely scrutinized by constituencies.
oCorporate image advertising should “brand” a
company the way product advertising brands a
product.
oProduct and corporate advertising should reflect a unified
strategy since all of a company’s advertising contributes to
its overall image.
oIn some cases, the company and the product are one
and the same, and so in such a case, corporate
advertising can also mean product advertising.
Session Two

2-38
Role of Corporate Advertising
in Building Brand Image (continued)

As a result of this strong association, any corporate


advertising campaign should be:

Strategic: looking toward the future of the company


so that it will have longevity and won’t become
stagnant.

Consistent: in keeping with images of products or


businesses of the company….a consistent message
is sent to the target audience.
Session Two

2-39
Role of Corporate Advertising
in Building Brand Image (continued)

Corporate and product advertising differ mainly in


terms of who pays for each of the two types of
advertising. Product-related advertising is typically the
responsibility of the firm’s marketing department, and
as such is paid for out of the department’s budget.

Session Two

2-40
Role of Corporate Advertising
in Building Brand Image (continued)

The Scope and Objectives of Corporate


Advertising
Corporate advertising should present a clear identity
and image for the organisation based on a careful
assessment of its overall communication
strategy…Argenti

The objectives for corporate advertising are well


focused. In fact, corporate advertising shares similar
purposes with proactive public relations.

Session Two

2-41
Role of Corporate Advertising
in Building Brand Image (continued)
 To build the image of the firm among customers,
shareholders, the financial community, and the
general public
 To boost employee morale or attract new
employees
 To communicate an organization’s views on social,
political, or environmental issues
 To better position the firm’s products against
competition, particularly foreign competition, which
is often perceived to be of higher quality; and
 To play a role in the overall integrated marketing
communications of an organization.
Session Two

2-42
Role of Corporate Advertising
in Building Brand Image (continued)
Corporate Image Advertising
The goal is to enhance the broad image of the firm and
this includes:
 General image or positioning ads ---these ads are
designed to create a specific image of the company
in the minds of the public. (e.g. Guardian Group)
 Sponsorships---by sponsoring special events,
programs, or even television shows, companies
hope to create an image of themselves. (e.g.
bmobile & Digicel)

Session Two

2-43
Role of Corporate Advertising
in Building Brand Image (continued)

• Recruiting---companies create images through their


recruiting ads (an accounting firm) advertised for
“free thinking” college graduates. Others have
created an image of themselves as companies for
those interested in “challenging careers.”

• Companies attempt to create images of themselves


for potential investors. They may run ads showing
their strong stock performance, sound investments,
or the security of investing in them. (Eg. Sagicor)

Session Two

2-44
Role of Corporate Advertising
in Building Brand Image (continued)

Advocacy Advertising
 Advocacy advertising attempts to establish an
organization’s position on important social, political,
or environmental issues.

 Advocacy advertising is defined as "advertising


that addresses and attempts to influence public
opinion on issues of concern to the sponsor.”

Session Two

2-45
Role of Corporate Advertising
in Building Brand Image (continued)

Cause-Related Advertising
 Cause-related advertising is part of cause-related
marketing efforts undertaken by a firm.
 Firms often affiliate themselves with worthwhile
social causes—reducing poverty, increasing
literacy, or curbing drug abuse.
 Cause-related advertising is advertising that
identifies corporate sponsorship of philanthropic
activities.
Session Two

2-46
Role of Corporate Advertising
in Building Brand Image (continued)
Advantages of Corporate Advertising
It offers an excellent means for positioning the firm and
a way of reaching target markets not reached through
other forms of advertising. It also takes advantage of
the efforts of public relations.

Disadvantages of Corporate Advertising


Corporate Advertising is often considered controversial
and/or of dubious benefit to the firm---it is not
considered to be of value by all advertisers. Its
effectiveness is questioned. In addition to the high price
attached for such advertising campaigns. Some
managers shy away from it because of the costs
involved and the difficulties in measuring its near-term
effect on sales. Session Two

2-47
Role of Corporate Advertising
in Building Brand Image (continued)

Measuring the Effectiveness of Corporate


Advertising

The effectiveness of corporate advertising may be


measured through the employment of:
 Attitude surveys,
 Studies relating to corporate advertising and
stock prices, and
 Focus group research.

Session Two

2-48
TYPES OF BRANDS AND
BRANDING STRATEGIES
Brands have personalities. They include strengths,
weakness and flaws. Many brands produce family trees.

Family brands – a group of related products sold under


one name

Brand extension – the use of an established brand


name on products or services not related to the core
brand

Flanker brand – the development of a new brand sold


in the same category as another product
Session Two

2-49
Types of Brands and Branding Strategies
(continued)
Co-branding – the offering of two or more brands in a
single marketing offer.

Ingredient branding - the placement of one brand


within another brand

Cooperative branding – the joint venture of two or


more brands into a new product or service

Complementary branding - the marketing of two


brands together for co-consumption

Private brands – brands marketed by an organization


and sold within the organization's outlets
Session Two

2-50
Advantages of having a
Private Brands

1. Quality improvement.
2. Lower prices.
3. Higher store loyalty.
4. Lower loyalty for manufacturer brands.
5. Increase in advertising of private brands.
6. Increase in quality of private brand in-
store displays.
Session Two

2-51
POSITIONING

Positioning is the process of creating a


perception in the consumer’s mind
regarding the nature of a company and
its products relative to its competition.

Session Two

2-52
POSITIONING

Positioning is created by variables such as:


- The quality of products
- The price of the product
- Methods of distribution
- Image and other factors

Session Two

2-53
POSITIONING

Positioning consists of two important elements:

1. It is established relative to the competition.


2. It exists in the minds of consumers.

Note: Although firms attempt to position its products


through advertising and other marketing
communication, consumers ultimately determine the
position of the firm’s products. To be effective, firms
must either reinforce what consumers already believe
about a product and its brand name or shift the
consumer’s view towards a more desirable position.
Session Two

2-54
Positioning Approaches
1. Is relative to competition.
2. Exists in the mind of the consumer.

Attributes.
Competitors
•Consumer markets
Use or application •B-to-B markets
Price/quality. •International markets
Product user
Product class
Cultural symbol
Session Two

2-55
POSITIONING
Achieving Effective Positioning

Effective positioning can be achieved by:


- Product Attribute
An attribute is a product trait that sets it apart from other
products. (e.g. Ultra Brite positions itself the attribute that
it makes teeth their brightest.
- Using Competitors
Using competitors to garner a position in the consumer’s
mind is another common tactic, whereby one brand is
contrasted to show the position of another.

Session Two

2-56
POSITIONING
Achieving Effective Positioning continued

- Use of application
Positioning involves creating a memorable set of uses
for a product.

- A Product User
Product User positioning strategy distinguishes a
brand or product by clearly specifying who might use it.
Apple computers originally positioned itself as the
computer for educational institutions.

Session Two

2-57
POSITIONING
Achieving Effective Positioning continued

- Price Quality Relationship


Businesses on the extremes of the price quality range
often use the price quality relationship. At the top end,
businesses emphasize high quality while at the bottom
end, low prices are emphasized.

- Product Class
Firms sometimes seek to position themselves in a
particular product class. (e.g. orange juice was long
established as part of the breakfast drink.

Session Two

2-58
POSITIONING
Achieving Effective Positioning continued

- Cultural Symbol
Identifying a product with a cultural symbol is
sometimes difficult, however can be done
successfully. (e.g. Digicel sponsorship of West
Indian cricket.

Session Two

2-59
POSITIONING

Brand positioning is never completely


fixed and can be changed. (e.g. Gillette,
traditionally firmly entrenched with men
launched a massive campaign to position
itself in the women’s market. Likewise,
Stag’s campaign “A Man’s Beer” sought
to position Stag as strong.)

Session Two

2-60
Building Your IMC Campaign

• Choose a brand name for your product.


• What image do you want to project?
• Create a brand logo.
• Choose a positioning strategy.

Session Two

2-61

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