MKTG 4550: The Role of Marcom

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MKTG 4550 The Role of Marcom

• Dr. Campbell
• Th 1/13/05

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Plan for the Day

• What marketing communications can do
• Brand equity
• Integrated marketing communications

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What is Marketing?
The process of planning and executing the
conception, pricing, promotion, and
distribution of ideas, goods, and services
to create exchanges that satisfy individual and
organizational objectives
American Marketing Association
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Marketing Analysis and the Marketing Mix
Customers Competitors Company
Product
Price
Place
Promotion
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Functions of Marcom

• Communicate information
• Communicate positioning / build brand equity

Brand Equity
Marcom
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An orangeis an orangeis an orange.
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What is a Brand?

• A name, term, sign, symbol, or design, or a
  combination of them, intended to identify the
  goods and services of one seller or group of
  sellers and to differentiate them from those of
  competition. (AMA)

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Brand Equity Asset-Based Definition
A set of brand assets and liabilities linked to
a brand, its name and symbol, that add to or
subtract from the value provided by a product or
service to a firm and/or to that firms
customers.
Dave Aaker
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Brand Equity Customer-Based Definition
The differential effect that brand knowledge has
on consumer response to the marketing of that
brand.
Kevin Lane Keller
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Customer-Based Brand Equity
Awareness
BRAND EQUITY
Brand Associations/Meaning
Strong
Favorable
Unique
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Benefits of Strong Brand Equity

• Greater brand loyalty
• Larger margins
• Less elastic responses to price increase
• More elastic responses to price decreases
• Communication efficiency/effectiveness
• Resistance to competitive marketing actions
• Licensing extension opportunities
• Greater trade cooperation and support
• More lenient perceptions

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Customer Benefits of Brands
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Building Customer-Based Brand Equity

• Creating a brand requires putting a label and
  meaning to a product or service
• Label Brand elements
• Meaning Marketing mix
• Strong
• Favorable
• Unique

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Role of Marketing Communications

• Marketing Communications are good at these
  necessary tasks
• Establishing a label
• Creating awareness
• Developing meaning
• Associating the meaning with the label

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The Goal of Marcom Management
Manage all brand contacts to build a cohesive
brand
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There are Many Audiences

• External Audiences
• Consumer
• Industry
• Channel
• Competition
• as antagonists
• as potential partners
• Media
• Investment community
• Internal Audiences
• Employees
• Stockholders

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The Goal of Marcom Management
Brand Equity
Build
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Steps in Creating Strong Brand Equity

• Develop a great product
• Determine desired, differentiated positioning
• Create accessible, favorable brand attitudes by
  communicating consistent brand position/image in
  all elements of the marketing mix
• Product
• Pricing
• Distribution
• Marketing Communications

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Definition of Promotion
The coordination of all seller initiated efforts
to set up channels of information and
persuasion in order to sell goods and services or
promote and idea.
Mike Ray 1972
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What areIntegrated Marketing Communications?
The recognition of the added value in a program
that integrates a variety of marketing disciplines
and combines these disciplines to provide
clarity, consistency, and maximum communications
impact.
American Association of Advertising Agencies
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Conclusion

• Promotional management is the process of
  developing communications strategy and
  coordinating the promotional mix elements to
  develop and control an integrated program of
  effective marketing communication that builds
  strong brand equity.

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Next class

• Read BB Ch 2