978-0134492513 Chapter 14 Lecture Notes Part 1

Chapter 14

ENGAGING CONSUMERS and COMMUNICATING

CUSTOMER VALUE: INTEGRATED MARKETING

COMMUNICATION STRATEGY

MARKETING STARTER: CHAPTER 14

SNICKERS: “You’re Not You When You’re Hungry”

Synopsis

Snickers, a Mars product, has for decades been positioned on one overriding brand attribute: Snickers is satisfying.

By the early 2000s, Snickers was in a rut. Its positioning had grown stale; its sales and market share had flattened.

During the 2010 Super Bowl, Snickers introduced a new ad campaign. The new creative concept, “You’re not you

when you’re hungry,” became more successful than the company could have envisioned. It begins with a powerful

and universal appeal…hunger. The concept lends itself to imaginative and entertaining ads and executions across

media platforms. Mars has developed a campaign that is fully integrated across the range of print, TV, digital, mobile,

positional, and other media, even packaging. The campaign has even been extended internationally, something not

always possible with ads largely based on humor. When the campaign began, Snickers was losing market share. It did

not take long for Snickers to pass M&Ms to become the world’s best-selling candy, a position it still holds today.

Snickers contributes more than 10 percent to Mars, Inc.’s total annual revenues. The integrated marketing

communications campaign is a very large part of this success.

Discussion Objective

The chapter-opening Snickers story illustrates a truly integrated promotional campaign. Thus, the discussion will go

far beyond just showing off another clever ad campaign. It will demonstrate how Snickers has connected with

customers using a wide range of carefully integrated promotion elements focused on delivering a unified, relevant

message that has stayed relevant for over six years, with a brand attribute that has worked for decades.

Starting the Discussion

Begin this discussion by visiting the campaign at http://snickers.tumblr.com/. Explore the world of Snickers and

create a meme of yourself when you’re hungry. Help students to discover the substantial breadth of media and PR

elements used in this award-winning campaign and to understand how well integrated the elements are with each

other and with the overall campaign theme. This multimedia site provides a springboard for exploring all the different

aspects of the “You’re Not You When You’re Hungry” campaign. Next, you can explore how Snickers has utilized

social media by visiting the campaign on Facebook, Twitter, and YouTube through links on the page. It has run

contests to engage customers into actively participating in the campaign. Taken as a whole, this campaign is visually

and artistically interesting, so have fun as you move through the discussion. But most importantly, be certain that

students appreciate how well the “You’re Not You When You’re Hungry” campaign integrates its various pieces

around a single simple theme, with a healthy dose of humor to boot.

Discussion Questions

1. Beyond the obvious, what is the key brand message behind the Snickers “You’re Not You When You’re

Hungry” campaign? (Quickly explore the http://snickers.tumbler.com / website. Discuss with students the

fact that this campaign is silly, irreverent, and endearing to Snickers die-hards. Indeed, the curiosity is

always about who will be the next participant in the campaign. It’s become a “badge of honor” to be part of

it.)

2. Does Snickers communicate this message effectively? How? (By now, students should be appreciating that

although there are many pieces to this campaign, the whole is greater than the sum of the parts. From the

website to Facebook page to YouTube videos, everything in the “You’re Not You When You’re Hungry” is

carefully integrated under common themes and imagery. Each aspect of the campaign brings home the

message or pulls consumers into purchasing Snickers at the store, whether ice cream or the numerous variety

of candy bars.)

3. How does the Snickers story relate to the concepts presented in Chapter 14? (The chapter begins by

discussing the rapidly changing marketing communications landscape and the urgent need for integrating

today’s rich assortment of new and traditional media. The “You’re Not You When You’re Hungry” campaign

provides a great example.)

CHAPTER OVERVIEW

Use Power Point Slide 14-1 here

Companies must do more than just create customer value. They must also use promotion to

clearly and persuasively communicate that value. Promotion is not a single tool but, rather, a mix

of several tools. Under the concept of integrated marketing communications (IMC), the company

must carefully coordinate these promotion elements to deliver a clear, consistent, and compelling

message about the organization and its brands.

The chapter begins with an introduction to the various promotion mix tools. Next, we examine the

rapidly changing communications environment and the need for IMC. Finally, the chapter

discusses the steps in developing marketing communications and the promotion budgeting

process.

CHAPTER OBJECTIVES

Use Power Point Slide 14-2 here

1. Define the five promotion mix tools for communicating customer value.

2. Discuss the changing communications landscape and the need for integrated marketing

communications.

3. Outline the communication process and the steps in developing effective marketing

communications.

4. Explain the methods for setting the promotion budget and factors that affect the design of

the promotion mix.

CHAPTER OUTLINE

p. 398 INTRODUCTION

In an industry characterized by constantly shifting

promotional themes, Snickers’ unexpectedly enduring

“You’re Not You When You’re Hungry” campaign—

featuring an unlikely use of celebrities (Betty White as a

football player and William Dafoe as Marilyn Monroe)—

has successfully engaged customers, communicated the

brand’s personality and positioning, and moved Snickers to

the top of the global confectionary market.

p. 399

Ad: Snickers

The key to the Snickers campaign’s success lies in its

remarkable consistency. For more than six years, Snickers

has stuck steadfastly to its simple but potent “You’re Not

You When You’re Hungry” message, and the brand’s use of

celebrities to make the point has been effective.

Building on the basic decades-old message that Snickers

satisfies, Snickers keeps the campaign fresh with an

ever-changing mix of clever message executions and

innovative media placements.

Today, Snickers’ now classic but still contemporary

integrated marketing communications campaign has been

more successful than company officials ever imagined it

could be.

Opening Vignette Questions

1. What are the key brand messages that Snickers

wants to send customers through this campaign?

2. How does this zany integrated campaign

distinguish Snickers from its competitors in the

candy business?

3. What are the key promotion mix tools that the

company utilized to achieve its objectives?

4. How long do you believe that Snickers’ sales

success can last with this campaign? How

permanent is this “brand impression” in

consumers’ minds?

p. 400

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p. 400

PPT 14-4

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p. 401

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Define the five promotion mix tools for communicating

customer value.

THE PROMOTION MIX

A company’s total promotion mix—also called its

marketing communications mix—consists of the specific

blend of advertising, sales promotion, public relations,

personal selling, and direct-marketing tools that the

company uses to pursue its advertising and marketing

objectives, and to communicate customer value and build

customer relationships.

The five major promotion tools are defined as follows:

1. Advertising: Any paid form of nonpersonal

presentation and promotion of ideas, goods, or

services by an identified sponsor

2. Sales promotion: Short-term incentives to

encourage the purchase or sale of a product or

Learning Objective

1

p. 400

Key Terms:

Promotion mix

(marketing

communications

mix)

p. 401

Key Terms:

Advertising, Sales

promotion, Personal

selling,

Public relations

(PR), Direct and

digital marketing

p. 401

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service

3. Personal selling: Personal presentation by the firm’s

sales force for the purpose of making sales and

building customer relationships

4. Public relations: Building good relations with the

company’s various publics by obtaining favorable

publicity, building up a positive corporate image,

and handling or heading off unfavorable rumors,

stories, and events

5. Direct and digital marketing: Direct connections

with carefully targeted individual consumers to both

obtain an immediate response and cultivate lasting

customer relationships—using telephone, mail,

e-mail, the internet, and other tools to communicate

directly with specific customers.

Review Learning Objective 1: Define the five promotion

mix tools for communicating customer value.

Assignments, Resources

Use Discussion Question 14-1 here

Use Additional Project 1 here

Use Individual Assignment 1 here

Use Think-Pair-Share 1 and 2 here

Use Outside Example 1 here

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p. 401

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Discuss the changing communications landscape and the

need for integrated marketing communications.

INTEGRATED MARKETING COMMUNICATIONS

The New Marketing Communications Model

Several major factors are changing the face of today’s

marketing communications.

Consumers are changing. They are better informed

and more communications empowered.

Marketing strategies are changing. As mass markets

have fragmented, marketers are shifting away from

mass marketing. More and more, they are

developing focused marketing programs designed to

build closer relationships with customers in more

narrowly defined micromarkets.

Sweeping changes in digital technology are causing

remarkable changes in the ways in which companies

and customers communicate with each other.

Learning Objective

2

p. 402

Photo: Method

p. 403

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Although television, magazines, and other mass media

remain very important, their dominance is declining.

Advertisers are now adding a broad selection of

more-specialized and highly targeted media to reach smaller

customer segments.

The new media range from specialty magazines, cable

television channels, and made-for-the-Web videos to

Internet catalogs, e-mail, blogs, blogs, mobile phone

content, and online social networks. Information tools

include smartphones, tablets, satellite, and cable television

systems.

Many large advertisers are shifting their advertising budgets

away from network television in favor of more targeted,

cost-effective, interactive, and engaging media.

It seems likely that the new marketing communications

model will consist of a shifting mix of both traditional mass

media and a wide array of exciting new, more-targeted,

more-personalized, more-engaging media. Marketers more

often now are identified as content marketing managers.

Content marketing involves creating, inspiring, and

sharing brand messages and conversations with and among

consumers across a fluid mix of paid, owned, earned, and

shared channels.

p. 403

Key Term: Content

marketing

p. 404

Ad: Content

marketing, Tecate

Assignments, Resources

Use Discussion Question 14-2 here

Use Real Marketing 14.1 here

Use Additional Project 2 here

Use Think-Pair-Share 3 here

Use Small Group Assignment 1 here

p. 403

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The Need for Integrated Marketing Communications

Customers don’t distinguish between message sources the

way marketers do.

In the consumer’s mind, advertising messages from

different media and different promotional approaches all

become part of a single message about the company.

Conflicting messages from these different sources can result

in confused company images and brand positions.

Too often, companies fail to integrate their various

communications channels. Mass-media advertisements say

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one thing, while a price promotion sends a different signal

and a product label creates still another message. Company

sales literature says something altogether different and the

company’s Web site seems out of sync with everything else.

The problem is that these communications often come from

different company sources.

Today, more companies are adopting the concept of

integrated marketing communications (IMC).

Under this concept, as illustrated in Figure 14.1, the

company carefully integrates and coordinates its many

communications channels to deliver a clear, consistent, and

compelling message about the organization and its brands.

IMC calls for recognizing all contact points where the

customer may encounter the company, its products, and its

brands. Each brand contact will deliver a message, whether

good, bad, or indifferent. The company must strive to

deliver a consistent and positive message with each contact.

IMC builds brand identity and strong customer relationships

by tying together all of the company’s messages and

images. Brand messages and positioning are coordinated

across all communication activities and media.

Review Learning Objective 2: Discuss the changing

communications landscape and the need for integrated

marketing communications.

p. 403

Key Term:

Integrated

marketing

communications

(IMC)

p. 405

Figure 14.1:

Integrated

Marketing

Communications

p. 406

Ad: Integrated

marketing

communications;

Lowe’s

Assignments, Resources

Use Discussion Question 14-3 here

Troubleshooting Tip

Some students will require a detailed explanation of

the differences between the various promotional

tools outlined in the chapter. Figure 14.1 will help in

this regard. Asking students for examples from each

channel of communication will also help.

p. 406

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Outline the communication process and the steps in

developing effective marketing communications.

A VIEW OF THE COMMUNICATION PROCESS

IMC involves identifying the target audience and shaping a

well-coordinated promotional program to obtain the desired

Learning Objective

3

p. 406

p. 407

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audience response.

Today, marketers are moving toward viewing

communications as managing the customer relationship

over time.

Because customers differ, communications programs need

to be developed for specific segments, niches, and even

individuals.

The communications process should start with an audit of

all the potential contacts target customers may have with the

company and its brands.

To communicate effectively, marketers need to understand

how communication works. Communication involves the

nine elements shown in Figure 14.2

Sender: The party sending the message to another

party.

Encoding: The process of putting thought into

symbolic form.

Message: The set of symbols that the sender

transmits.

Media: The communication channels through which

the message moves from sender to receiver.

Decoding: The process by which the receiver

assigns meaning to the symbols encoded by the

sender.

Receiver: The party receiving the message sent by

another party.

Response: The reactions of the receiver after being

exposed to the message.

Feedback: The part of the receiver’s response

communicated back to the sender

Noise: The unplanned static or distortion during the

communication process that results in receivers

getting a different message than the one the sender

sent.

p. 407

Figure 14.2:

Elements in the

Communication

Process

Assignments, Resources

Use Discussion Question 14-3 here

Use Critical Thinking Question 14-7 here

Use Think-Pair-Share 4 here

Use Small Group Assignment 2 here

Troubleshooting Tip

One area of concern is found in Figure 14.2

(Elements in the Communication Process). Survey

students to see how many have had a basic course in

business or interpersonal communications. The

model used in Figure 14.2 is standard to most

communication presentations. If most students have

had a course in communications of some type, the

model presents no problem. However, if most have

not had any preparatory coursework, spend time

explaining the model and associated vocabulary.

p. 408

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p. 408

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STEPS IN DEVELOPING EFFECTIVE MARKETING

COMMUNICATION

There are several steps in developing an effective integrated

communications and promotion program.

Identifying the Target Audience

A marketing communicator starts with a clear target

audience in mind. The audience may be potential buyers or

current users, those who make the buying decision or those

who influence it. The audience may be individuals, groups,

special publics, or the general public.

The target audience will heavily affect the communicator’s

decisions on what will be said, how it will be said, when it

will be said, where it will be said, and who will say it.

Determining the Communication Objectives

Once the target audience has been defined, the marketing

communicator must decide what response is sought. The

marketing communicator needs to know where the target

audience now stands and to what stage it needs to be

moved. The target audience may be in any of six

buyer-readiness stages, the stages consumers normally

pass through on their way to making a purchase. (See

Figure 14.3)

The communicator must first build awareness and

knowledge.

Assuming target consumers know about the product, how do

they feel about it? These stages include liking (feeling

favorable about the product), preference (preferring it to

other brands), and conviction (believing that the product is

p. 408

Key Term:

Buyer-readiness

stages

p. 408

Figure 14.3:

Buyer-Readiness

Stages

p. 409

Ad: General Mills

p. 409

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p. 410

best for them).

Some members of the target market might be convinced

about the product, but not quite get around to making the

purchase. The communicator must lead these consumers to

take the final step. Actions might include offering special

promotional prices, rebates, or premiums.

Designing a Message

Having defined the desired audience response, the

communicator turns to developing an effective message.

The message should get attention, hold interest, arouse

desire, and obtain action (a framework known as the AIDA

model).

In putting the message together, the marketing

communicator must decide what to say (message content)

and how to say it (message structure and format).

Message Content

The communicator has to figure out an appeal or theme that

will produce the desired response. There are three types of

appeals.

1. Rational appeals relate to the audience’s

self-interest. They show that the product will

produce the desired benefits.

2. Emotional appeals attempt to stir up either negative

or positive emotions that can motivate a purchase.

Communicators may use positive emotional appeals

such as love, pride, joy, and humor. Communicators

can also use negative emotional appeals, such as

fear, guilt, and shame that get people to do things

they should or to stop doing things they shouldn’t.

3. Moral appeals are directed to the audience’s sense

of what is “right” and “proper.” They are often used

to urge people to support social causes such as a

cleaner environment, better race relations, equal

rights for women, and aid to the disadvantaged.

Message Structure

The communicator must also decide how to handle three

p. 410

message structure issues.

1. The first is whether to draw a conclusion or leave it

to the audience. Recent research suggests that in

many cases, rather than drawing a conclusion, the

advertiser is better off asking questions and letting

buyers come to their own conclusions.

2. The second message structure issue is whether to

present the strongest arguments first or last.

Presenting them first gets strong attention but may

lead to an anticlimactic ending.

3. The third message structure issue is whether to

present a one-sided argument (mentioning only the

product’s strengths) or a two-sided argument

(touting the product’s strengths while also admitting

its shortcomings).

Message Format

The marketing communicator also needs a strong format for

the message.

In a print ad, the communicator has to decide on the

headline, copy, illustration, and color. To attract attention,

advertisers use novelty and contrast; eye-catching pictures

and headlines; distinctive formats; message size and

position; and color, shape, and movement.

If a message is to be carried over the radio, the

communicator has to choose words, sounds, and voices.

If the message is to be carried on television or in person,

then all these elements plus body language have to be

planned. Presenters plan their facial expressions, gestures,

dress, posture, and hairstyles.

If the message is carried on the product or its package, the

communicator has to watch texture, scent, color, size, and

shape.

p. 411

Ad: Reese’s