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Part One FROM MARKETING COMMUNICATION TO IMC1

1 From Marketing Communication to IMC2

Chapter Perspective:Moving from Transactions to Relationships3

Effectiveness Case:AirTran:How IMC Helped Rebuild a Brand4

Integrated Marketing Communication(IMC)7

What IMC Means8

Communication Drives Relationships10

IMC and the Marketing Umbrella11

The Concept of a Brand13

The Marketing Concept13

The Marketing Mix14

Marketing Communication15

The Marketing Communication Functions15

Types of Brand Contact17

The Marketing Communication Mix17

Integration Involves More Than Marketin Communication19

What Needs to Be Integrated?22

Employees22

Customers and Business Partners23

Databases23

Corporate Mission24

Corporate Culture and Learning24

The Evolution of IMC25

Move to Mass Marketing25

Move to Mass Communication26

Trends Driving Integration27

External Trends27

Internal Trends30

Integrity31

A Final Note:The Relationship Revolution32

2 Brands and Stakeholder Relationships38

Chapter Perspective:A Special Relationship39

Effectiveness Case:Building a Relationship with Boots the Chemists40

Creative Strategy42

Message Delivery42

Evaluation of the Boots Campaign42

What Brand Means43

How Brands Work:Transformation44

The Brand Promise45

Brand Equity46

How Brands Are Built48

Steps in Building a Brand48

Distinction50

Association50

Pronounceability50

Choosing a Brand Name50

Benefit Description50

Choosing a Brand Symbol51

Branding Strategies52

Brand Extensions53

Multi-tier Branding53

Co-branding55

Ingredient Branding55

Brand Licensing56

Brand Relationships56

Stakeholder Support56

Employees57

Customers57

Other Stakeholders58

IMC in Action:Pumping Up Employee Loyalty59

Stakeholder Overlap60

Stakeholder Capital Equals Brand Value61

The Anatomy of Brand Relationships62

Acquisition versus Retention62

Trust62

A Tale of Two Companies:Edward Jones and Prudential63

Intensity65

Managing Expectations67

Loyalty67

Profitable Brand Relationships68

Technology in Action:Cleaning Up on License Plates69

Benefits of Brand Relationship Programs69

How Customers Benefit from Brand Relationships71

A Final Note:IMC Builds the Relationship That Build Brands72

3 IMC Partners and Cross-Functional Organization78

Chapter Perspective:Organization Is the Foundation of IMC79

Effectiveness Case:The Agency of the Consumer80

Overview of the Marketing Communication Business82

The Industry/Product Category84

The Corporate Side84

Roles and Positions87

IMC in Action:Harnessing Peon Power88

Cross-Functional Planning and Management90

A Tale of Two Companies:Cross-Functional Planning at Met Life and General Electric92

Cross-Functional IMC Teams92

Agency Partners94

Types of Agency Services96

Full-Service Agencies96

Agency Networks98

Media Buying Services99

How Agencies Specialize99

Business-to-Business Specialists100

Ethnic Agencies100

High-Tech Agencies100

In-House Agencies101

IMC Agencies101

Public Relations Firms102

Direct-Response Agencies104

Sales Promotion Agencies104

Other MC Agencies105

MC Suppliers106

Creative Boutiques106

Freelancers106

Agency Approaches to IMC107

Add-on Functions107

Reinvention107

Agency Compensation109

Lead Agency109

Commission110

Fee or Retainer110

Markups110

Performance-Based Compensation111

Agency Evaluation111

Media Partners112

A Final Note:The Agency-Client Relationship114

Part Two STRATEGIC FOUNDATIONS OF IMC119

4 The Brand Communication Process120

Chapter Perspective:A Gooey Interface121

Effectiveness Case:Love and Ice Cream:The HB Case122

How Communication Works125

How Marketing Communication Works126

1.The Message128

Everything Communicates128

The Four Types of Brand Messages129

Planned Messages129

A Tale of Two Companies:Southwest and American Airlines Deliver Messages130

Product Messages131

Service Messages133

Technology in Action:The Customer Side of Demand Pricing134

Unplanned Messages135

Three Types of Brand Contact Points138

Managing the Message Typology138

2.Media Channels and Brand Contact Points138

Global Focus:Coffee with Car to Go139

Company-Created Contact139

Intrinsic Contact Points140

Customer-Created Contacts141

3.Noise from Conflict and Clutter142

Mixed Messages and Message Conflict143

Message Clutter and Overload143

4.Receiver Decoding and Perceptions144

The Importance of Perceptions145

5.Feedback and Interactivity146

The Role of Communication in Perception146

Purposeful Dialogue147

The Five Rs of Purposeful Dialogue148

Recourse148

Recognition149

Responsiveness149

Respect149

Reinforcement150

Final Note:Two-Way Communication150

5 The Brand Decision Process156

Chapter Perspective:Speaking to the Head and the Heart157

Effectiveness Case:Using Heads and Hearts to Make Health Decisions158

Involvement160

Factors That Influence Brand Decisions160

Customers and Prospects161

Consumers and Businesses162

Three Buying-Behavior Situations164

Cognitive Decision Making164

Experiential Decision Making165

IMC in Action:Marketing the Experience166

Habit/Repeat Decision Making166

Basic Brand Decision-Making Steps168

Step 1:Problem and Opportunity Recognition168

Needs and Wants169

The Attention Factor170

Step 2:Information Search171

The Awareness Factor171

The Relevance Factor172

Central and Peripheral Routes173

Step 3:Evaluation of Choices174

Cognitive Responses174

Evoked Sets175

Affective Responses175

Technology in Action:Shower Yourself with Pleasure177

Attitude Formation178

Creditility179

Likability179

IMC Strategy:Changing Attitudes and Behaviors with a Gross-out Campaign180

Step 4:Behavior and Action182

Step 5:Review of Buying Decision182

Learning182

Cognitive Dissonance183

Persuasion:Hierarchy-of-Effects Models183

Think/Feel/Do Model183

A Final Note:Persuading People to Persuade Themselves186

6 IMC Planning192

Chapter Perspective:Knowing the Score193

Effectiveness Case:Traveling with an Envoy194

Strategic Planning197

Objectives199

How Planning Works199

Strategies200

Tactics200

Cascading Objectives and Strategies201

The Zero-Based Planning Process201

Step 1:Analyzing SWOTs202

Internal Factors202

External Factors204

Customer-Focused Analysis205

IMC In Action:Using a Customer Focus to Create an IMC Attitude206

Account Planning207

Prioritizing SWOTs207

Step 2:Analyzing Targets and Relationships210

A Tale of Two Companies:Snapple before and after Quaker212

Step 3:Determining MC Objectives213

Communication Objectives214

Behavioral Objectives216

Step 4:Developing Strategies and Rationales216

IMC Strategy:Price/McNabb s Brand Studio217

Selecting the MC Mix218

Creating the Big Idea219

Step 5:Budgeting220

Providing the Rationale220

Selecting the Media Mix220

Step 6:Timing and Scheduling223

Step 7:Test Marketing MC Mixes224

Step 8:Evaluating Effectiveness224

Internal Marketing225

Communication Dimensions225

Informing226

Empowering226

Listening226

Internal Communication Systems227

A Final Note:Playing from the Same Score228

Technology in Action:Creating a Brochure via an intranet228

7 Segmenting and Targeting232

Chapter Perspective:Carving Up the Market233

Effectiveness Case:Insights from Everywhere234

Reasons for Segmenting and Targeting238

Moving Away from Mass Marketing238

Segments and Niches240

Segments of One241

Segmentation Strategies241

Current Customers242

Buyers versus Users243

Profitability Segmentation243

Relationship Maintenance Costs244

Recency,Frequency,Monetary(RFM)245

IMC in Action:Midas Turns Segments into Gold246

Activity-Based Costing247

New Customers and Self-Selection247

Types of Market Segmentation248

Behavior/Benefits Segments248

Demographic Segments250

Ethnic Segments251

Geodemographic Segments251

Psychographic Segments252

Lifestyle and Life Stage Segments253

Relationship Segments256

Combining Profile Variables with Size Segments257

Adopter Segments258

How Targeting Works259

Media and Message Dimensions of Targeting260

IMC Strategy:Hip-Hop and the Hood261

Profitability-Based Targeting262

Segmenting and Targeting BtB Customers263

Ethics of Targeting264

Ethics and Issues:Offensive Targeting265

A Final Note:Balancing Acquisition and Retention266

8 Data-Driven Communication270

Chapter Perspective:Relationships of Steel271

Effectiveness Case:British Airways Leisure Relationship Marketing Program Takes Off272

What Is Data-Driven Communication?275

Customer Relationship Management(CRM)275

Databases276

Digitization277

Information Technology(IT)278

Learning Organizations279

Database Applications280

Privacy and Security Issues281

Data Collection281

Privacy and Situational Ethics282

Ethical Data Use283

Ethics and Issues:How Much Is Too Much?283

Designing Database Programs284

Setting Up a Customer Database285

Database Architecture286

Collecting Customer Data287

Scanner Data288

Data from Marketing Communication Efforts288

Relationship Tracking291

Data Overlays292

Data Mining292

Technology in Action:The Data Gold Mine293

Data Maintenance295

How to Manage and Use Customer Databases296

Using Databases to Manage Relationship Stages297

Acquisition Programs297

Retention Programs297

IMC Strategy:Skiing Goes Downhill298

Customer Growth Programs299

Reacquisition Programs300

Personalizing the Message301

Customer Recognition and Reward302

A Final Note:Relationship Memory303

Part Three CREATING,SENDING,AND RECEIVING BRAND MESSAGES307

9 IMC Message Strategy308

Chapter Perspective:Strategic Mandates for the Creative Side309

Effectiveness Case:Creating Brand Value for a Biscuit310

Brand Message Strategy Development313

The Creative Message Brief313

Targeting and Customer Insight315

Selling Strategy316

Purpose or Key Problem316

Functional-Area Message Objectives317

Standard Message Strategies317

A Tale of Two Brands:Clamato and Quik318

Appeals and Selling Premises322

Strategic Consistency323

One-Voice,One-Look324

Strategic Consistency324

Core Values325

IMC Strategy: Steaking Out a Quality Position326

Marketing Level327

Marketing Communication Level327

The Consistency Triangle327

Consistency Gaps328

A Final Note:A Mess of Messages329

10 Brand Message Execution334

Chapter Perspective:The Big O335

Effectiveness Case:How a Shark Swims Past the Secretary336

Brand Message Executions339

Creating the Big Idea339

The Creative Concept339

IMC in Action:Black Gold:Turning a Brand Around with an Event340

Creative Thinking341

Exploration342

Insight343

Execution343

Evaluation343

The Anatomy of a Brand Message344

Printed Pieces344

Functional-Area Executions344

Ethics and Issues:You Be the Judge345

Broadcast Pieces347

Message Formats347

Tone and Style350

Words and Pictures350

Writing351

Writing for Electronic Media353

Writing Publicity Messages355

Art and Design356

Visualizing Creative Strategies357

Corporate and Brand Image Design359

Package Design360

Print Layout and Design361

Exhibit Design362

Video Design363

Online Design364

A Final NOte:The ROI Of the Creative Side364

11 Media Characteristics368

ChaPter Perspective:Connecting with Customers369

Effectiveness Case:Driving a ReLauneh370

The Media Business373

Media Overview373

Media Classifications374

IMC in Action:Martha Stewart s Omnimedia Empire375

Mass versus Niche Media376

Addressable and Interactive Media377

Media Intrusiveness377

Media Strengths and Weaknesses378

Print Media378

Newspapers380

Formats and Features380

Classified,Display,and Inserts380

Coverage and Audiences381

Sales and Pricing382

Newspaper Strengths and Weaknesses382

Magazine Formats and Features383

Magazines383

Magazine Coverages and Audiences384

Magazine Sales and Pricing386

Magazine Strengths and Weaknesses386

Directories387

Broadcast Media388

Technology in Action:Directories Go Electronic388

Audience Measurement389

Sales and Pricing390

Radio391

Radio Formats and Features391

Radio Audience Measurement394

Coverage and Audiences394

Radio Sales and Pricing395

Strengths and Weaknesses of Radio395

Television396

TV Formats and Features398

TV Sales and Pricing399

TV Strengths and Weaknesses400

Infomercials401

Interactive TV401

Out-of-Home Media401

Outdoor401

Signs and Posters402

Audience Measurement403

Strengths and Weaknesses of Outdoor403

Cinema and Video404

Nontraditional Media405

Product Placement406

A Final Note: Connectivity407

12 The Internet and Interactive Media412

Chapter Perspective:Adding Two-Way to One-Way Media413

Effectiveness Case:An E-Business Pioneer414

Communication and Technology415

The Internet417

Intranets and Extranets418

Communication Networks418

Benefits of Network Technology419

Wireless Communication420

Technology in Action:M-Commerce Is the Future of Interactive Media421

Addressable and Interactive Media421

Mail Formats and Features423

Costs423

Strengths and Limitations424

Phone Formats and Features424

Outbound Calls425

Inbound Calls425

E-mail Formats and Features427

Strengths and Limitations427

Strengths and Limitations429

E-Commerce429

Offline Advertising431

E-Commerce Navigation431

Online Marketing Communication433

Online Advertising433

Banners434

Classified Advertising436

Ad Targeting437

Online Public Relations437

Website Design and Operation438

Online Sponsorship and Events438

Promoting Brands through Online Communities438

Strategic Planning for a Website439

Setting Up the Website440

Designing the Website440

Managing the Website442

Customer Service443

Infrastructure444

Internet Privacy444

Privacy Policies445

Ethics and Issues:The Cookie Monster447

A Final Note:Hypercharged Cybermarketing448

Security448

13 Media Planning454

Chapter Perspective:Planning Media Connections455

Effectiveness Case:Using a Media Context to Help Revive an Old Brand456

Media Planning Overview458

Brand Contacts and Media458

Media Planning and Buying Functions459

Media Integration461

Basic Media Planning Concepts462

Media Audiences462

Ethics and Issues:Lighting Fire under Tobacco Media463

How to Determine CDIs,BDIs466

Reach467

Measuring Reach469

Targeted Reach470

How Much Reach Is Enough?471

Media Waste472

Frequency472

Effective Frequency473

Frequency Distribution Analysis475

Media Environment475

Cost per Thousand476

Free Media476

Media Cost476

Cost per Point and Cost per Response478

Creating the Media Plan480

Target Audiences481

Media Objectives481

Media Strategy Considerations483

Customers Buying Decision Process483

Response Media484

Apertures485

Self-Selection485

Media Weight:Gross Rating Points485

Calculating GRPs486

Targeted Rating Points486

Caluclating Targeted Rating Points487

Media Scheduling488

Seasonality and Timing488

Product Introduction490

Purchase Cycle490

Media Mix490

Lead Time490

Media Concentration491

Technology in Action:Optimizing the Media Buy492

Creative Strategy Considerations493

A Final Note:Closed-Loop Media Marketing494

Part Four MARKETING COMMUNICATION FUNCTIONS499

14 Advertising:The Awareness Builder500

Chapter Perspective:The Mass in Brand Building501

Effectiveness Case:The Natal Sharks Win More Than Matches502

Mass Media Advertising:The Awareness Builder506

Overview of the Advertising Industry507

The Function of Mass Media Advertising508

IMC in Action:The Ad Works When the Company Works509

Types of Advertising509

Target Audiences509

Strengths and Objectives of Mass Media Advertising510

Geography510

Media510

The Added Value of Advertising511

Cost-Effectiveness513

Control513

IMC-Related Strengths513

Technology in Action:Dialing for Dealers514

Objectives514

Limitations of Mass-Media Advertising515

Low Credibility516

Clutter516

One-Way Communication516

Waste516

Ethics and Issues:Ad Jamming517

Merchandising and POP:The Reminder Drivers518

Strengths and Limitations of Merchandising519

Packaging:The Last Ad Seen before Buying520

Objectives of Packaging521

The Package as a Free Medium522

Strengths and Limitations of Packaging522

A Final Note:Everything Says Sharks523

15 Public Relations:The Credibility Builder528

Chapter Perspective:The Relationship Angle529

Effectiveness Case:Swimming to Industry Leadership530

The Practice of Public Relations532

Overview of the Public Relations Industry533

Types of Public Relations534

Public Relations Strategy and Planning535

IMC Strategy:Maytag Takes a Spin with Public Relations536

Corporate Communication537

Corporate Advertising538

Corporate Mission and Vision539

Corporate Culture540

Change Agent540

Corporate Image and Reputation540

IMC in Action:Fanning the Goblet of Fire PR Blaze543

Marketing Public Relations543

Marketing and Public Relations545

MPR Media546

News Releases547

Advertising versus Editorial551

Strengths and Objective of MPR551

Brand Awareness552

Acceptance and Credibility552

Cost-Effectiveness552

IMC in Action:The Beetle s Back553

Reaching the Hard to Reach554

Limitations of MPR554

Clutter Busting554

Other Public Relations Functions That Affect Brands555

Ethics and Issues:The Incredible Credibility Crisis555

Crisis Management556

Word of Mouth558

Social Marketing559

A Final Note:Reputation and Relationships559

16 Sales Promotion:Intensifying the Brand Message Consideration564

Chapter Perspective:Intensifying the Brand Message565

Effectiveness Case:Nescafe Serves Continuous Happiness566

Sales Promotion:The Value-Added Function569

How Sales Promotion Works570

Coupons572

Consumer Sales Promotions Tools572

Price Reductions573

Rebates573

Ethics and Issues:Can Teens Responsibly Handle Credit?574

Premiums574

Specialties575

Sampling575

Sweepstakes and Contests576

Tie-in Promotions577

Loyalty Programs577

Loyalty Programs:The Retention Driver577

How Loyalty Programs Work577

Loyalty Program Strengths and Limitations578

Managing a Loyalty Program579

Media of Consumer Sales Promotion579

Strengths of Consumer Sales Promotion580

MC Objectives581

IMC in Action:Promotions for Segments of One583

Limitations of Consumer Sales Promotion583

Trade and BtB Promotions585

Trade Promotion Objectives586

Types of Trade Promotions586

BtB Promotions588

A Final Note:Promotion and Strategic Creativity589

17 The Personal Connection:Direct Response and Personal Sales594

Chapter Perspective:Making It Personal595

Effectiveness Case:Charlotte Pipe and Foundry596

Direct Response:The Dialogue Builder600

Size and Scale of Direct-Response Marketing600

Four Basic Components of Direct Marketing602

The Offer602

The Database603

The Response605

Fulfillment605

The Media of Direct Marketing606

Types of Direct Response606

Telemarketing607

IMC in Action:Dialing for Flowers607

Call Centers609

Direct Mail609

Catalogs611

Infomercials612

Measuring the Results612

Testing614

Strengths of Direct-Response Marketing615

Limitations of Direct-Response Marketing616

Personal Sales:The Face-to-Face Function617

Acquiring New Customers618

Retaining Current Customers618

The Functions of Personal Sales618

The Personal-Selling Process620

Qualifying Leads620

Measurement of Personal-Selling Efforts621

SFA and CRM622

Compensation and Rewards623

Personal Selling Strengths and Limitations624

Limitations of Personal Sales625

A Final Note:Contact with Integrity626

18 Experiential Contact:Events,Sponsorships,and Customer Service630

Chapter Perspective:Getting Involved with the Brand631

Effectiveness Case:Jeans for Genes632

Events and Sponsorships:The Experience Builders634

Event Marketing635

Types of Events636

Creating Events636

Participating Events637

Trade Shows638

Trade Show Strengths and Objectives639

Sponsorships640

Sports Sponsorships641

Global Focus:The Olympics Tops the List642

Cause Marketing643

Mission Marketing644

Strengths and Limitations of Events and Sponsorships646

Customer Service:The Responsiveness Driver646

Ethics and Issues:The Strategic Debates Behind a Sponsorship647

Customer Service Functions648

Complaints and Compliments649

Customer Contact649

Customer Feedback649

How Customer Service Works650

Characteristics of Good Customer Service651

Accessibility651

Product Knowledge651

Customer-Service Support652

Attitude and Behavior652

Responsiveness652

Strengths and Limitations653

A Final Note:Adding Experience to a Brand Relationship653

Part Five THE BIG PICTURE659

19 Social,Ethical,and Legal Issues660

Chapter Perspective:Managing MC with Sensitivity661

Effectiveness Case:Winning the Big Brother Match662

The Role of Marketing Communication in Society665

Does MC Mirror or Shape Society?667

Concerns about Marketing Communication667

Ethics and Marketing Communication671

Children672

Stereotyping672

Targeting Vulnerable Groups672

Ethics and Issues:Joe Camel and Kids673

Minorities674

The Elderly674

Developing Countries675

Offensive Brand Messages675

Sex675

Taboo Topics676

Manipulation Issues676

Puffery677

Legal Aspects of Marketing Communication677

Fraud678

Regulatory Methods and Agencies678

Questionable Business-to-Business Tactics678

Self-Regulation679

Internal Policies679

Industry Standards680

Media Review680

Government Oversight681

Federal Trade Commission(FTC)682

State and Local Regulations683

Foreign Regulations683

Approval Processes684

Consumer Groups684

Dbligations of Marketing Communication Professionals684

Dealing with Corporate Ethics685

A Final Note:Social Marketing685

20 International Marketing Communication690

Chapter Perspective:Marketing to the World691

Effectiveness Case:Whiskas Creates a Tiny Tiger692

Defining Global Marketing695

Successful Global Companies695

The Cultural Factor696

Cultural Differences and Similarities697

Hofstede s Dimensions699

High and Low Context699

Culture and Values699

Dimension of Culture699

Cultural Sensitivity and Social Responsibility700

Media Sensitivity701

Cultural Imperialism702

Exploitation702

Cultural Mistakes702

Segmenting International Target Markets703

By Geography703

By Level of Development703

IMC in Action:Building Brands in the Bush705

By Cultural Cohort Group705

The Global Youth Market706

Message Design:Think Globally,Act Locally707

Standardize or Localize?707

Combination Strategies707

Message Delivery:Media and Technology710

Level of Media Development710

The Growth in International Media710

Global Focus:Capturing the World Cup Audience711

Internet:A True Global Medium712

Media Convergence714

Global Tracking Systems for the Internet714

Media Regulation715

A Final Note:Integration at the International Level716

21 Measurement,Evaluation,and Effectiveness722

Chapter Perspective:The Mandate for Accountability723

Effectiveness Case:Buitoni Repositions Its Brand Image724

Evaluating the IMC Process726

The IMC Mini-Audit727

The IMC In-Depth Audit727

Examples of Audit Findings729

Benefits of an IMC Audit731

Communication Audits732

Evaluation and Measurement of Brand Messages733

What Should Be Evaluated?734

The Cost/Value Factor734

What Information Already Exists?735

When Should Evaluation be Conducted?735

The Critical Role of Objectives736

Measuring Objectives736

Baselines and Benchmarks737

Measurement and Evaluation Methods737

Concept,Creative Strategy Testing738

Measuring Communication Effects739

Copytesting for Predicting Communication and Persuasion739

Attention740

Awareness and Knowledge740

IMC in Action:The Starch Challenge742

Emotional Responses742

Physiological Responses742

Measuring Persuasion Effects742

Theater Tests744

Theater Tests with Purchase744

Test Marketing744

Scanner Market Tests745

Tracking Studies746

Real-Time Tracking748

BtB Measurement749

Online Measurement and Evaluation749

Online Panels versus Spam Surveys750

Advantages and Disadvantages of Online Surveying752

Relationship Metrics752

Benefits and Limitations of Evaluation754

Benefits754

Limitations754

A Final Note:Continuous Feedback757

Glossary761

Index769