PV231 Integrated Marketing Communications SPRING 2011 1 PV231 Class 2 Integrated Marketing Communications Strategy Course Faculty of Informatics SSME Program PV231 Integrated Marketing Communications SPRING 2011 2 PV231 Integrated Marketing Communications SPRING 2011 3 PROGRAM Room C511 10:00 – 12:15 Lecture 12:15 – 12:30 Short Break 12:30 – 13:30 Project Intro by Mr. Skrabalek 13:30 – 13:50 Team Work 4 ABOUT MARKETING PLANS The Creative Process: Insight Development IMAGINATIVE PHASE “Thinking something different” PRACTICAL PHASE “Getting something done” Key things to remember ABOUT STRATEGIC PLANS WHAT WHY HOW WHEN HOW MUCH Project Deliverables Research Report May 16th Creative Brief May 18th Final IMC Plan DRAFT May 21st Creative Pitch May 21st Final IMC Presentation May 23rd Final IMC Plan May 23rd MARKET ANALYSIS Industry & Category Overview Project Goal & Overview Executive Summary Short 5-7 minute presentation of the plan ideas 20-minute presentation of all ideas in front of the client Executive Summary Consumer Behavior Analysis Research Insight Summary Research Report Research Report Competitive Analysis Audience, Message, Media Overview IMC Plan Communication Strategy: Audience, Message Execution Strategy: Media, Schedule, Budget, Measurement Creative Strategy: Branding Ideas, Creative/Design IMC Plan Communication Strategy: Audience, Message Execution Strategy: Media, Schedule, Budget, Measurement Creative Strategy: Branding Ideas, Creative/Design Brand/Product/ Service Analysis & SWOT Schedule & Budget Research Insights Visual/Creative Strategy Overview Conclusion Conclusion 8 INTERGRATED MARKETING COMMUNICATIONS What is IMC? •  Integrated Marketing Communications uniquely integrates all the pieces of an organization around a single factor: the wants and needs of customers •  Integrated Marketing Communication is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs over time with consumers, customers, prospects, employees, associates and other targeted relevant external and internal audiences. •  The goal is to generate both short-term financial returns and build long-term brand and shareholder value. •  Don Schultz, Northwestern University Who is Don Schultz? •  Don Edward Schultz is Professor Emeritus of Service at Northwestern University's Medill School. He is most notable for his research and writing on Integrated Marketing Communications (IMC). •  In 1992, the American Advertising Federation named him Advertising Educator of the year, and in 1998 Sales and Marketing Management magazine named him one of the 80 Most Influential People in sales and marketing. •  Often referred to as the "father of integrated marketing", Schultz is the author or co-author of 13 books on marketing, including Integrated Marketing Communications (1993), Communicating Globally (2000), and IMC: The Next Generation (2003). He writes a regular column on Integrated Marketing for Marketing Management magazine, the trade publication of the American Marketing Association. •  Prior to his academic career, Schultz worked for 15 years in the field of advertising. •  Schultz earned a Bachelor of Business Administration from University of Oklahoma in 1957, a Master of Arts in Advertising from Michigan State University in 1975, and a Ph.D. in Mass Media from Michigan State in 1977. •  Schultz lectures and consults for various business groups and currently resides in the Chicago metropolitan area. He is also the president and founder of Agora, Inc., a consulting firm based in Evanston, Il. Source: http://en.wikipedia.org/wiki/Don_E._Schultz Solution is in integrated approach that builds long-term brand equity & value Product Price Place Publicity Promotion INTEGRATED APPROACH External Stakeholders Customers Suppliers Interest Groups General Public Internal Stakeholders Employees BRAND IDENTITY & EQUITY BUILDING Marketing Strategy Traditional Organizational Structure Top Management Finance LogisticsMarketingR & D Operations Customer & Prospects Integrated Organization: The ultimate end user, customer must be at the center of any organization. The organization must focus on its end user customers and consumers, for they are the only ones who provide the resources and therefore the rewards for everyone involved. Customer & Prospects Information Technology Top Management Human ResourcesMarketing Finance/Accounting Operations Source: Schultz, IMC The Next Generation IMC Approach – everything is integrated through all media Broadcast Media Direct Marketing Digital/Interactive/Mobile Sales Promotion Public Relations Personal Selling Social Media Sponsorship Programs Event Marketing Internal Marketing Word of Mouth Product Placement Print Media Out-of-Home Media Point-of-Purchase Content & Visual MESSAGE FOR TARGET CONSUMER 15 RESEARCH RECAP Research Report Methods 1.  Data Collection (offline & online) 2.  Interviews Elements 1.  Situation analysis: 1.  Market (Industry/Category) 2.  Consumer behavior 3.  Competitive analysis 4.  Brand analysis 5.  SWOT 2.  Insight Development What is Consumer Behavior? A process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services to satisfy their needs and desires. As a marketer you have to learn about their needs, desires, and passions. You must understand what makes them tick and most importantly, what makes them buy! The Culture Code BY CLOTAIRE RAPAILLE Clotaire Rapaille CULTURE CODE “An ingenious way to understand why people around the world live and buy as they do.” The Culture Code, Clotaire Rapaille Our Brain = Three Brains “emotion drives reason more than reason drives emotion” “MAKING SENSE” (Intelligence) CORTEX/CEREBRAL HEMISPHERES § Where logic resides § Control, rational choices, order § Where we do higher-level reasoning § Handles learning, abstract thought, imagination § Not developed until age 7 “FEELING GOOD” (Emotions) LIMBIC SYSTEM § Deals with emotions § Is involved in motivation & emotional association with memory § Influences the formation of memory by integrating emotional states with stored memories of physical sensations “INSTINCT” REPTILIAN BRAIN (BRAIN STEM & CEREBELLUM) § Programs us for 2 major things: SURVIVAL & REPRODUCTION § More influential than other two brains, born with it, inherited § Physical attraction § Cultures have very strong reptilian dimension; thus we find the codes for certain elements of a culture, when we understand how our reptilian brands address that element Example Work: PT Cruiser, Jeep Wrangler, AT&T, P&G PT Cruiser (US) Issue: What kind of car Americans want? Result of Sessions: Car – PT Cruiser The first imprint of a car was reflected in specific memories of very distinctive cars - cars that have character, that you turn head after when you see one. PT Cruiser is a reptilian car because it has strong identity and when you see it on the street, you immediately recognize it. Culture Code for Car: IDENTITY Jeep Wrangler (US) Issue: Sales problems with Wrangler Result of Sessions: Jeep Wrangler new features (ROUND headlights, removable doors, etc.) The first imprints of Wrangler for majority of participants were this cowboyish images of Wild West and HORSES. Riding a horse where you can feel the wind and savor the nature around you. Culture Code for Jeep: HORSE AT&T (US) Issue: What represents quality and perfection in America? Result of Sessions: Better understanding of Quality Very first imprint of quality was for many a negative one. Positive imprints focused on functionality rather than brilliance of design or excellence of performance. Culture Code for Quality: IT WORKS Result of Sessions: Better understanding of Perfection Perfection is something abstract and inchoate , something distant and maybe even undesirable. Quest for perfection seemed to be something most people preferred to avoid. Culture Code for Perfection: DEATH P&G(US) Issue: What is the Code for health & wellness in America? Result of Sessions: Better understanding of health and wellness Americans are doers. “Just do it.” is right on Code. During the sessions, a powerful theme emerged. For Americans, health and wellness means being able to accomplish your mission - it involves action. Americans believe that if they are strong enough to act, then they are healthy. Their greatest fear about being sick is the inability to do things. Culture Code for Health & Wellness: MOVEMENT Example Codes Germany Codes Code for Car: ENGINEERING Code for America: JOHN WAYNE Code for Germany: ORDER French Codes Code for Cheese: ALIVE Code for Shopping: LEARNING YOUR CULTURE Code for America: SPACE TRAVELLERS Code for France: IDEA US Codes AMERICAN CULTURE: ADOLESCENT (new, abundance, strong belief that mistakes warrant second chances, we want to believe we are forever young, reinvention, optimism, fascination with extremes) Code for Car: IDENTITY Code for Cheese: DEAD Code for Love: FALSE EXPECTATION Code for Seduction: MANIPULATION Code for Sex: VIOLENCE Code for Beauty: MAN’S SALVATION Code for Fat: CHECKING OUT Code for Health & Wellness: MOVEMENT Code for Toilet Paper: INDEPENDENCE Code for Coffee: HOME Code for Dinner: ESSENTIAL CIRCLE Code for Work: WHO YOU ARE Code for Money: PROOF Code for Doctors: HERO Code for Nurse: MOTHER Code for Hospital: PROCESSING PLAN Code for Youth: MASK Code for Home: prefix “RE-” Code for Betty Crocker: THE SOUL OF THE KITCHEN Code for Shopping: RECONNECTING WITH LIFE Code for Luxury: MILITARY STRIPES Code for Presidency: MOSES Code for America: DREAM Code for Quality: IT WORKS Code for Perfection: DEATH Code for Food: FUEL Code for Alcohol: GUN British Codes Code for America: UNASHAMEDLY ABUNDANT Code for England: CLASS The Codes & Consumer Behavior 1. Understand History 2. Understand Culture 3. Understand Logic vs. Emotions vs. Instinct 4. Start the Analysis and Planning Consumer Behavior & Cultural Intelligence Books ResearchReport Market (Industry/ Category) Understand history & culture. Describe the conditions & climate, show trends. Use Google insights Wordle Consumer Behavior Create consumer profile/ personas & describe decision-making process. Include the results from you INTERVIEWS. Competitive analysis Describe competitive environment & create Competitive Positioning Map. Brand analysis & SWOT Describe the current brand environment, create a Branding Map and SWOT table PV231 Integrated Marketing Communications SPRING 2011 27 28 PV231 Integrated Marketing Communications SPRING 2011 29 30 PV231 Integrated Marketing Communications SPRING 2011 31 PV231 Integrated Marketing Communications SPRING 2011 32 The Codes & Consumer Behavior 1. Understand History 2. Understand Culture 3. Understand Logic vs. Emotions vs. Instinct 4. Start the Analysis and Planning Wordle.com: Rohto Message ResearchReport Market (Industry/ Category) Understand history & culture. Describe the conditions & climate, show trends. Use Google insights Wordle Consumer Behavior Create consumer profile/ personas & describe decision-making process. Include the results from you INTERVIEWS. Competitive analysis Describe competitive environment & create Competitive Positioning Map. Brand analysis & SWOT Describe the current brand environment, create a Branding Map and SWOT table Example of a simplified Consumer Profile (Studying online behavior might lead to better understanding of consumer behavior in general) WHO 24 - 35 (Gen Y) Recent College Graduates Single Bright future ahead INTERESTS “I” Technology Fashion Career Personal Looks/Appearance Celebrities/Trends Exotic MOTIVATIONS To Self Express & Share To Have Independence To Find Ones Identity To Feel Attractive/Desired To Know More/Curiosity To Desire Parental Input (Still) ARCHETYPE Explorer Core Desire: To be yourself and find out about world TRAITS Individualist Desire for self-sufficiency Lives in his own light Ahead of their time Fascination with foreign and exotic Spiritual Side PRODUCT MATCH Makes people feel free Pioneering/Non-conformist Can be purchased online “On the go” Explores new things Example of Category-Customized Purchase Behavior Motivations to play games Reasons to buy ANALYSIS FACTORSMOTIVATION FACTORS ACTION Social Connection Mental Challenge Escape and Explore Family Fun Addictive Ownership/ Collection Play Anytime Share with others Gift Decision Influencers Community encouragement Demos Peer reviews Transaction Logistics & Security Purchase Experience Payment Options Rewards for Repeat Purchases Delivery options & shipping costs Support/Customer Service ResearchReport Market (Industry/ Category) Understand history & culture. Describe the conditions & climate, show trends. Use Google insights Wordle Consumer Behavior Create consumer profile/ personas & describe decision-making process. Include the results from you INTERVIEWS. Competitive analysis Describe competitive environment, list potential competitors & create Competitive Positioning Map. Brand analysis & SWOT Describe the current brand environment, create a Mood Board, Branding Map and SWOT table Competitive Positioning Map Rohto Clear Eyes Visine Blink Compare product specs Compare message Compare brand story Compare price ResearchReport Market (Industry/ Category) Understand history & culture. Describe the conditions & climate, show trends. Use Google insights Wordle Consumer Behavior Create consumer profile/ personas & describe decision-making process. Include the results from you INTERVIEWS. Competitive analysis Describe competitive environment, list potential competitors & create Competitive Positioning Map. Brand analysis & SWOT Describe the current brand environment, create a Branding Map and SWOT table Mood Board WORDS COLORS THEME FONTS ABSTRACT BRAND NAME IMAGES MESSAGE BRANDING MAP MESSAGE SIGHT SHAPES SOUND RITUALS TASTE TRADITIONS SMELL SYMBOLS TOUCH/ TEXTURE SWOT Analysis (exercise) STRENGTHS OPPORTUNITIES Reputation Skills & Time Efficiency Office Environment Innovative Approach New Image Visibility Online/Offline New Team Leadership Approach WEAKNESSES THREATS Location No Web Presence Local Competition Not Enough Implants Benefits Awareness IDEAS 47 RESEARCH METHODS Online Research Tools •  Google Search •  Google Insights •  Blog Pulse •  Forums & Message Boards (big-boards.com) •  Boardtracker •  Wikipedia •  Google Patents •  addictomatic.com •  Howsociable.com •  samepoint.com •  surchur.com FATHOM RESEARCH OVERVIEW Conduct 3 interviews •  Select 3 individuals that fit your target audience •  Prepare the questions before-hand •  Record the answers (phone, in-person) •  Summarize & analyze results LinkedIn Polls Facebook Question Tips on creating polls •  ESTABLISH GOAL •  What’s the goal of the poll? What do you want to learn? •  KNOW THE AUDIENCE •  Who is your audience? •  BE MINDFUL OF TIME •  Be considerate of your audience’s time •  DISTRIBUTION CHANNELS •  Use several distribution channels: email, LinkedIn, FB, website 57 CREATIVITY & RESEARCH INSIGHT DEVELOPMENT PROCESS Creativity check •  When was the last time you had a creative idea? •  What was it? •  What motivates you to be creative? The “Whack” Book The Creative Process: Insight Development IMAGINATIVE PHASE “Thinking something different” PRACTICAL PHASE “Getting something done” Ideation observe all the time be open to ideas carry an idea book look for inspiration in unusual places brainstorm & play with the idea Creativity Tools & Techniques Always ask the question What rules can we break? Making the Strange Familiar Use metaphors (MOBERA is like…) Ask “What if” Questions (to come up with different scenarios/opportunities) Be An explorer (at all times & explore other categories) Put on your fool’s cap Listen To your intuition & dreams The Creative Process: Insight Development IMAGINATIVE PHASE “Thinking something different” PRACTICAL PHASE “Getting something done” Research: Developing an insight •  What are the insights from: •  Market (Industry/Category) •  Consumer Behavior •  Competitive Analysis •  Brand Analysis & SWOT •  Your interviews •  What is THE BIG IDEA based on your research and project work? •  MY BIG IDEA IS ……………………………………………………………………………. •  Based on my BIG IDEA , the goal of my strategy will be to…………………………………………………………………………………………………. 72 IMC STRATEGY DEVELOPMENT PROCESS IMC Planning Process: Developing an IMC Plan Research Insight Target Audience(s) Communication Strategy Media Strategy ROCI Measurement Strategy Message Visual/Creative Branding Strategy Positioning Strategy Schedule Budget 74 BRANDING STRATEGY Holistic Branding Consistent Message Shapes Rituals Traditions Symbols Any and all religions have created a Holistic branding The five senses have been fully engaged. Brand Definition " Philip Kotler: a name, term, sign, symbol, or design, or combination of them which is intended to identify the goods and services of one seller to differentiate them from those of competitors. " John Murhpy, Founder of Interbrand: A trademark which, through careful management, skillful promotion and wide use comes in the minds of consumers to embrace a particular set of values and attributes both tangible and intangible. Brands as Legal Assets " In legal terms, the brand consists of a package of separable and transferable legal rights enjoyed by its owner. " Names, descriptions, symbols, logos, sounds, colors, smells, packaging, straplines or taglines, advertising, and many other assets can be protected in a legal sense. Brands as Relationship-Building Assets " Brands activities can be used to create relationships with customers or prospects " These could be functional and emotional attributes that marcom managers attempt to develop through various types of advertising, promotion, etc. " Functional: ensuring brand identification and recognition, providing a guarantee or evidence of origin (made in, Riedel) " Emotional: providing a form of self-expression for the customer through visible use of brand in the marketplace. Brands as Financial Assets " Focus on brand value building over time " Brands create a form of security in existing markets " Brands often command premium prices (Apple) " Brands allow the firm to expand into the new markets " Strong brands provide ease of entry for new products Brand Equity Definition (Don Schultz): Brand equity is the composite of the brand’s presence, identity/image, perceived quality, and commitment among constituents, culminating in the long-term financial value to the firm and its stakeholders. The dimensions of the brand are affected by the actions of competitors as well as attitudes and behaviors of customers, prospects, employees, alliance partners, investors, and other key stakeholders. Competitors Constituencies Financial Value Perceived quality Commitment Identity Image Presence Presence: knowledge of the brand and its meaning recognition and recall Identity/Image: views, impressions and understandings about the brand Commitment: reflects the loyalty the brand commands, brand advocacy Perceived quality: special type of brand association that defines the impressions of product performance during use BRAND: A Key Value Driver © Enakta Customer Growth Brand Building Usage Loyalty Brand Extension Increased Earnings Security of Earnings New Earnings Shareholder Value Advertisement becomes Icon Experience Consistency Sensory Perfume Uniform Behavior The Brand is stronger than the product -BSP the 90’s phenomenon This is the result of millions of dollars of research and development. The sound of a Mercedes Door being shut. Branding a country. Tradition Every James Bond movie will contain certain elements. What are they? IMC Planning Process: Developing an IMC Plan Research Insight Target Audience(s) Communication Strategy Media Strategy ROCI Measurement Strategy Message Visual/Creative Branding Strategy Positioning Strategy Schedule Budget Brand Analysis 1.  Current audience (What’s the current audience(s)?) 2.  Current message (What is the main message?) 3.  Current brand image (Is there a need for rebranding? Colors, imagery, etc. What does the brand represent?) 4.  Current product offering (+, -, quality, functionality, warranty, etc.) 5.  Current price (What’s the pricing strategy?) 6.  Current distribution system 7.  Current website (design, navigation, content, etc.) 8.  Current brand presence 1.  Offline (stores, WOM) 2.  Online (social media, Google search) 100 POSITIONING STRATEGY IMC Planning Process: Developing an IMC Plan Research Insight Target Audience(s) Communication Strategy Media Strategy ROCI Measurement Strategy Message Visual/Creative Branding Strategy Positioning Strategy Schedule Budget Brand’s Position Brand position is something (PERCEPTION) that happens in the mind of the target consumer. It’s about rational and emotional connection. Example #1: Seth Godin Brand Positioning Seth Godin is a best-selling author and one of the most followed bloggers who constantly challenges marketers and the world of marketing Target Marketing Professionals Example #2: MINI Brand Positioning MINI is a 100% customizable, cult car with rich heritage and a vibrant community of car enthusiasts Target True car enthusiasts, edgy Example #3: Red Bull Brand Positioning Red Bull is an energy drink for young people who like adventurerelated sports and parties (use of Student Brand Managers) Target Youth, College Students What’s going to be your Positioning Statement? MOBERA Brand is… Target is… Competitive Positioning Map Rohto Clear Eyes Visine Blink Compare product specs Compare message Compare brand story Compare price 108 COMMUNICATION STRATEGY IMC Planning Process: Developing an IMC Plan Research Insight Target Audience(s) Communication Strategy Media Strategy ROCI Measurement Strategy Message Visual/Creative Branding Strategy Positioning Strategy Schedule Budget Communication •  MESSAGE (What is it you are trying to communication to your target audience?) •  VISUAL (How do you communicate your message visually?) •  MEDIUM (What medium do you use to communicate your message?) IMC Communication Planning Matrix There are both short-term & long-term behavioral effects!!! Awareness Image Recognition Trial Increased usage Stockpiling Trust Reliability Perceived quality Advocacy Retention Migration Cross purchase Brand Messages Brand Incentives Short-term returns (fiscal year) Long-term returns (future years) Business Building Brand Building Increase, accelerate, stabilize cash flow Build or enhance shareholder value PV231 Integrated Marketing Communications SPRING 2011 116 Thank you for your attention. Next Class 3 Wednesday, 5/16, 14:00 – 17:50 Room G101 117 PROJECT OVERVIEW Mr. Jaroslav Skrabalek CEO of Amcee