Chapter 2
Integrated Brand Communication
CHAPTER CONTENT
CHAPTER KEY POINTS
1. What is the difference between marketing communication and brand communication?
2. How is marketing the marketing mix related to marketing communication?
3. What is integrated marketing communication?
4. How does marketing communication contribute to the development of a brand?
5. What current trends affect marking and brand communication?
CHAPTER OVERVIEW
This chapter opens by providing a definition of both marketing communication and brand
communication, and then discussing brand communication’s role in marketing. The
marketing mix is discussed, along with other basic principles of strategic market
planning, such differentiation, competitive advantage, push strategy, pull strategy and
added value. Next, integrated marketing communications (IMC) is defined, and then the
role of communication in branding is explained. In this section, the various elements of
branding strategy are explored, including brand meaning, brand transformation, brand
position, and brand promise. An emphasis on the role of effective communication in
building strong, viable brands is woven throughout this discussion, and also the
importance of monitoring all brand communication tools to ensure a singular, unified
message is reinforced. The chapter closes with a discussion of brand communication in a
time of change and how the practice of marketing is evolving, especially in this new
social media period.
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CHAPTER OUTLINE
WHAT IS BRAND AND MARKETING COMMUNICATION?
Marketing communication (marcom) involves the use of a variety of tools and
functions, such as advertising, public relations, sales promotion, direct response
events and sponsorships, point of sale, digital media, and the communication
aspects of packaging, as well as personal sales and a number of new forms of
online communication that have recently emerged.
They deliver a complex system of brand messages we refer to as brand
communication – all various marketing communication messages and brand
experiences that create and maintain a coherent brand.
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Principle: The challenge is to manage all of the messages delivered by all aspects
of marketing communication so that they work together to present the brand in a
coherent and consistent way.
BRAND COMMUNICATION’S ROLE IN MARKETING
Marketing is designed to build brand and customer relationships that generate
sales and profits or, in the case of nonprofits, memberships, volunteers and
donations. Traditionally, the goal of most marketing programs has been to sell
products, defined as goods, services, or ideas. This is accomplished by matching a
product’s availability and the company’s production capabilities to the consumer’s
need, desire, or demand for the product.
Marketing accomplishes its goal by managing a set of operations and strategic
decisions referred to as the marketing mix, also called the four Ps. These include
the design and performance of the product, its distribution, its pricing strategies,
and its promotion.
Marketing also focuses on managing customer relationships to benefit all of a
brand’s stakeholders, i.e., all individuals and groups who have a stake in the
success of the brand, including employees, investors, the community, business
partners and customers.
Who Are the Key Players?
The marketing industry is a complex network of professionals. The four categories of
key players include 1) marketers, 2) suppliers and vendors, 3) distributors and retailers,
and 4) marketing partners, such as advertising agencies.
The marketer, also referred to as the advertiser or the client, is any company or
organization behind the product, that is, the organization, company, or
manufacturer producing the product and offering it for sale.
The materials and ingredients used in producing the product are obtained from
other companies, referred to as suppliers or vendors. The phrase supply chain is
used to refer to this complex network of suppliers whose product components and
ingredients are sold to manufacturers.
The distribution chain or distributionchannel refers to the various companies
that are involved in moving a product from its manufacturer into the hands of its
buyers. Suppliers and distributors are also partners in the communication process.
Marketing relationships also involve cooperative programs and alliances between
two companies that work together as marketing partners to create products and
promotions.
What Are the Most Common Types of Markets?
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The word market originally meant the place where the exchange between seller
and buyer took place. Today, we speak of a market not only as a place but also as
a particular type of buyer — for example, the youth market or the motorcycle
market. The phrase share of marketrefers to the percentage of the total market in
a product category that buys a particular brand.
As Figure 2.1 shows, the four main types of markets are 1) consumer, 2)
business-to-business (or industrial), 3) institutional, and 4) channel. We can
further divide each of these markets by size or geography.
Consumer markets(B2C)refers to businesses selling to consumers who buy
goods and services for personal or household use. As a student, you are
considered a member of the consumer market for companies that sell jeans,
athletic shoes, sweatshirts, pizza, music, textbooks, backpacks, computers,
education, checking accounts, bicycles, travel, and vacations, along with a
multitude of other products that you buy at drug and grocery stores, which the
marketing industry refers to as packaged goods.In Europe, these are called
fast-moving consumer goods.
Business-to-business marketsconsist of companies that buy products or
services to use in their own businesses or in making other products.
Advertising in this category tends to be heavier on factual content, but can
also be beautifully designed. The Day in the Life feature in this chapter
describes the job of a marketing and communication manager who works on
the client side in the B2Borganization.
Institutional marketsinclude a wide variety of profit and nonprofit
organizations, such as hospitals, government agencies, and schools that
provide goods and services for the benefit of society. Ads for this category are
very similar to B2B in that they are heavy on copy and light on visuals and
emotional appeals.
Channel marketsinclude members of the distribution chain, which is made up
of businesses that we call resellers. Channel marketing, the process of
targeting a specific campaign to members of the distribution channel, is more
important now that manufacturers consider their distributors to be partners in
their marketing programs. As giant retailers, particularly Wal-Mart, become
more powerful, they can dictate to manufacturers what products their
customers want to buy and how much they are willing to pay for them.
The consumer market is only one of four types of markets. The other three are
reached through professional and trade advertising.
Most marketing communication dollars are spent on consumers markets, although
B2B advertising is becoming almost as important. Firms usually reach consumer
markets through mass media and other marketing communication tools. They
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typically reach the other three markets – industrial, institutional, and channel or
reseller – through trade and professional advertising in specialized media.
How Does the Marketing Mix Send Messages?
Marketing managers construct the marketing mix, also called the four Ps, to
accomplish marketing objectives. These marketing mix decisions are key
elements of marketing strategy.
To a marketing manager, marketing communication is just one part of the
marketing mix, but to a marcom manager all of these marketing mix elements also
send messages that can sometimes contradict planned messages or even confuse
consumers.
Principle: Every part of the marketing mix – not just marketing communication –
sends a message.
Product:
The focus of the four Ps is the product (goods, services, ideas). Design,
performance and quality are key elements of a product brand’s success. When a
product brand performs well, this sends a positive message that this brand is okay
to repurchase. A positive brand experience also motivates the buyer to recommend
the brand to others, extending the reach of the positive experience into personal
communication, which we refer to as ‘word of mouth.’
Some brands are known for their design, which becomes a major point of
differentiation from competitors. When this point of difference is of significant
importance to customers, it also becomes a competitive advantage.
A product launch for a new brand depends on announcements in the media,
usually involving both publicity and advertising. The goals of the communication
are to build awareness of the new brand, explain how this new product works, and
how it differs from competitors.
Principle: Product performance sends the loudest message about a product or
brand and determines if it will be purchased again.
Pricing
The price a seller sets for his product sends a ‘quality’ or ‘status’ message. The
price is based not only on the cost of making and marketing the product, but also
on the seller’s expected margin of profit, as well as the impact of the price on the
brand image.
Ultimately, the price of a product is based upon what the market will bear, the
competition, the economic well-being of the consumer, the relative value of the
product, and the consumer’s ability to gauge the value, which is referred to as
price/value proposition.
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Psychological pricing strategies use marketing communication to manipulate the
customer’s judgment of value.
Principle: The treatment of the price in marketing communication cues a
meaning that puts the price/value proposition in perspective.
Advertising is often the primary vehicle for telling the consumer about price. The
term price copy, which is the focus of much retail advertising,refers toadvertising
copy devoted primarily to this type of information.
Recession, fast-food chains, as well as Wal-Mart and discount and dollar stores,
depend on value pricing strategy. Promotional pricing is used to communicate a
dramatic or temporary price reduction through terms such as sale, special and
today only.
Place (Distribution)
Distribution includes the channels used to make the product easily accessible to its
customers. There are many routes to distribution and marketing managers consider a
variety of channels when developing distribution strategies. A common distribution
strategy involves the use of intermediaries, such as retailers.
Direct marketing companies distribute their products directly to a consumer without
the use of a reseller. “Clicks or bricks” is a phrase used to describe whether a product
is sold online or in a traditional store.
A pushstrategy offers promotional incentives, such as discounts and money for
advertising to retailers. Distribution success depends on the ability of these
intermediaries to market the product, which they often do with their own advertising.
In contrast, a pullstrategy directs marketing communication efforts at the consumer
and attempts to pull the product through the channel by intensifying consumer
demand.
Other Factors in the Mix
Personal selling relies upon face-to-face contact between the marketer and a
prospective customer, rather than contact through the media. It is particularly
important in B2B marketing and high-end retail. Marketers use personal selling to
create immediate sales to shoppers.
Marketing communication works as partner with sales programs to develop leads,
the identification of potential customers or prospects. Lead generation is a
common objective for trade promotion and advertising.
Customer service refers to the help provided to a customer before, during, and
after a purchase. It also refers to the company’s willingness to provide such help.
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Many companies now provide more assistance to customers through online
connections than face-to-face.
Added Value
Added value refers to a strategy or activity that makes the product more useful or
appealing to the consumer as well as distribution partners. Added value is the
reason consumers are willing to pay more for one brand over its competition.
Advertising and other marketing communication not only showcase the product’s
value but also may add value by making the product appear more desirable.
WHY INTEGRATED MARKETING COMMUNICATIONS?
Integrated marketing communications (IMC) is the practice of coordinating all
marketing communication messages as well as the messages from the marketing
mix decisions. One of the important things that IMC does is send a consistent
message about the brand.
Principle: IMC is like a musical score that helps the various instruments play
together. The song is the meaning of the brand.
IMC is still evolving, and both professionals and professors are engaged in
defining the field and explain how it works. Integrationmeans every message is
focused and works together, which creates synergy. When the pieces are
effectively coordinated, the whole has more impact than the sum of its parts.
The problem arises when the marcom tools are not aligned with other marketing
mix communication messages that deliver brand communication. The point is that
marketing communication is at the center of brand communication, and the
effectiveness of the brand communication depends on how well all the pieces are
integrated.
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