Download to read offline
![https://www.ispot.tv/ad/7lp5/clorox-a-clear-choice
29/07/2019 How Clorox moved beyond data to a new human-
centric brand focus | WARC
https://www-warc-
com.ezproxy.lib.uts.edu.au/content/article/event-
reports/how_clorox_moved_beyond_data_to_a_new_humancentr
ic_brand_focus/113267 3/10
“We really showed [OxiClean] and Church &
Dwight,” he said, tongue firmly in
cheek. “And we got sued. And we lost.
“But we kept doing it.
“And we got sued by Reckitt Benckiser, another
competitor. And lost.”
But, in defense of the then state-of-the-art advertising,
“It was the kind of stuff
that permeatedthe category: Spray, spray, wipe,
smile, perfect multicultural,
ethnic mom in a perfect kitchen. Those were
real toilets; not computer-generated
graphics. This was amazing stuff.
“And it really, really worked, I guess
because we spent lots of money on it.”
In early2015, Reynolds was appointed as Clorox’s
Chief MarketingOfficer,
requiring a return to the United States. “And
I knew somethingwas afoot.”](https://image.slidesharecdn.com/workshopweek3post-itnotesbydeanhochmanuts2-221014065653-37a1c5fe/75/WorkshopWeek-3-post-it-notes-by-Dean-HochmanUTS-2-docx-59-2048.jpg)
![“Our industry used to be known for scale. If
we spent enough on TV, we would
win. But those days are over.The new [imperative] is
speed and agility. If we want
our brands to be relevant and exciting to people,
what we better do is learnhow
to get fast.”
The lesson wasn’t just trickling up from the
consumer;it was coming down from
the top. Benno Dorer, who was named as
Clorox’s CEO in late 2014, “was very
clear with what he wanted … ‘There is an
existential crisis in CPG,’ he said. ‘We
are essentially moribund unless we radically change
how we see, think, and work.
We are going to transform Clorox.’”
After 100 years of looking East – specifically,
to New York – as a center of
advertising and media, Reynolds’ team would do an
about-face and start looking
West, to Silicon Valley, for inspiration.
The result: “Over the last threeyears, we've
done almost everything to change
everything.”
29/07/2019 How Clorox moved beyond data to a new human-
centric brand focus | WARC
https://www-warc-
com.ezproxy.lib.uts.edu.au/content/article/event-](https://image.slidesharecdn.com/workshopweek3post-itnotesbydeanhochmanuts2-221014065653-37a1c5fe/75/WorkshopWeek-3-post-it-notes-by-Dean-HochmanUTS-2-docx-61-2048.jpg)
![Platform] ... We started to direct
massive amounts of people, time,and energy into
that existential crisis we felt
like we were facing in CPG.”
But the rush to the new was not smooth: “We did a
huge bid earlyon in
programmatic media,” Reynolds admitted. “We bought
trainloads of banner ads
as a major commitment to try to get to
that right person, the right time,very first,
blah, blah, blah.”
Despite the problems that now seemso obvious,
however, the Clorox CMO told
the ANAaudience in Orlando, “It absolutelyworked
marvelously. Between 2014
and 2015 – in that sleepy, old, boring cleaning
category – we grew by double
digits.”
29/07/2019 How Clorox moved beyond data to a new human-
centric brand focus | WARC
https://www-warc-
com.ezproxy.lib.uts.edu.au/content/article/event-
reports/how_clorox_moved_beyond_data_to_a_new_humancentr
ic_brand_focus/113267 6/10
But as one set of numbers pointed towards
success, another batch identified
deeper problems. Although sales were growing, a report
from brand consultancy
Prophet identified another, and uglier, quantitative](https://image.slidesharecdn.com/workshopweek3post-itnotesbydeanhochmanuts2-221014065653-37a1c5fe/75/WorkshopWeek-3-post-it-notes-by-Dean-HochmanUTS-2-docx-63-2048.jpg)
![time.
Explained Reynolds, “We decided to follow them on
their journey – to celebrate
the fact that, even though people hate cleaning, they
love clean.
“We set out to tell that storythrough what we thinkis
a human-centered and
purpose-driven way. And we adopted a new brand
purpose globally: ‘Clorox
Champions a Clean World Where People
Can Thrive.’”
Reynolds’ corresponding mission: “We were not going to
just think, ‘We're the
people that spray things on counters and wipe
with a sponge.’ The question was,
‘How do we bring it to life?’
“This worked because it reflects the very best of
the brand. It is chock-fullof
humanity. None of those folksare actors. We
had film crews filming real people
for days and weeks and days on end to capture
those moments.
“But you know what? [This positioning] doesn’t
just live in film; it can live in
moments outside. We can be more purposeful, we
can tell people, ‘Clean matters’
in things like outdoor media.”
Case in point: Valentine's Day is soon coming
up. “And, empirically,” Reynolds
reminded the ANAaudience “a clean environment is](https://image.slidesharecdn.com/workshopweek3post-itnotesbydeanhochmanuts2-221014065653-37a1c5fe/75/WorkshopWeek-3-post-it-notes-by-Dean-HochmanUTS-2-docx-66-2048.jpg)
![much more productive to
what we'll call, ‘A successfulrelationship.’”
Watch these ads:
https://www.ispot.tv/ad/IP72/clorox-disinfecting-wipes-clean-
is-the-beginning
https://www.ispot.tv/ad/wGg9/clorox-clean-matters
https://www.ispot.tv/ad/IP72/clorox-disinfecting-wipes-clean-
is-the-beginning
https://www.ispot.tv/ad/wGg9/clorox-clean-matters
29/07/2019 How Clorox moved beyond data to a new human-
centric brand focus | WARC
https://www-warc-
com.ezproxy.lib.uts.edu.au/content/article/event-
reports/how_clorox_moved_beyond_data_to_a_new_humancentr
ic_brand_focus/113267 9/10
About the author
Geoffrey Precourt
US Editor, WARC
[email protected] (mailto:[email protected])
Geoffrey Precourt is WARC's US editor. He reports
from key events across North America.
Priorto joining WARC in July 2008, Geoffrey
held senior editorial roles at titlesincluding
Strategy +
Business, Point, Smart Business and Fortune, and](https://image.slidesharecdn.com/workshopweek3post-itnotesbydeanhochmanuts2-221014065653-37a1c5fe/75/WorkshopWeek-3-post-it-notes-by-Dean-HochmanUTS-2-docx-67-2048.jpg)
![edited the book CMO Thought Leaders.
TOPICS
EMOTION
(http://www.warc.com.ezproxy.lib.uts.edu.au//search/Emot
ion/Emotion)
BRAND POSITIONING
(http://www.warc.com.ezproxy.lib.uts.edu.au//search/Bran
d-positioning/Brand positioning)
mailto:[email protected]
https://www-warc-
com.ezproxy.lib.uts.edu.au/search/Emotion/Emotion
https://www-warc-com.ezproxy.lib.uts.edu.au/search/Brand-
positioning/Brand%20positioning
29/07/2019 How Clorox moved beyond data to a new human-
centric brand focus | WARC
https://www-warc-
com.ezproxy.lib.uts.edu.au/content/article/event-
reports/how_clorox_moved_beyond_data_to_a_new_humancentr
ic_brand_focus/113267 10/10
© Copyright WARC 2017
WARC Ltd.
Americas: 2233 Wisconsin Ave NW, Suite535, Washington,
DC 20007, United States - Tel: +1 202
778 0680
APAC: OUE Downtown 1, #44-03, 6 Shenton
Way, 068809, Singapore - Tel: +65 3157 6200
EMEA: 33 Kingsway, London, WC2B 6UF, United
Kingdom - Tel: +44 (0)20 7467 8100
www.warc.com(https://www-warc-com.ezproxy.lib.uts.edu.au)](https://image.slidesharecdn.com/workshopweek3post-itnotesbydeanhochmanuts2-221014065653-37a1c5fe/75/WorkshopWeek-3-post-it-notes-by-Dean-HochmanUTS-2-docx-68-2048.jpg)
![Orchestration,” and Young and Rubicam talked about the
“Whole Egg.” Through the years, agencies have acquired spe-
cialized boutique firms to enhance their capabilities in PR,
direct marketing, promotions, and other areas of communica-
tions. Recently, the focus of agency acquisitions has been on
different types of digital communication firms to help their cli-
ents with web design, social media, online tracking, and so
forth. At the same time, internally, agencies have also been
Address correspondence to Kevin Lane Keller, Tuck School of
Business, 100 Tuck Hall, Dartmouth College, Hanover, NH
03755.
E-mail: [email protected]
Kevin Lane Keller (PhD, Duke University) is the E.B. Osborn
Pro-
fessor of Marketing, Tuck School of Business, Dartmouth
College.
Color versions of one or more of the figures in the article can be
found online at http://www.tandfonline.com/ujoa.
286
Journal of Advertising, 45(3), 286–301
Copyright � 2016, American Academy of Advertising
ISSN: 0091-3367 print / 1557-7805 online](https://image.slidesharecdn.com/workshopweek3post-itnotesbydeanhochmanuts2-221014065653-37a1c5fe/75/WorkshopWeek-3-post-it-notes-by-Dean-HochmanUTS-2-docx-73-2048.jpg)
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WorkshopWeek 3© post-it notes by Dean HochmanUTS 2.docx
- 1. Workshop Week 3 © post-itnotes by Dean Hochman UTS 24736 Marketing Communications SPRING 2019 Facilitators: Dr. Valeria Noguti & Dr. Kaye Chan 1 Assignment #1 (Individual) Cover Page Campaign Brief Description (note: differently from what is stated at the assignment guidelines, this part does not go in the critique part, it is just the description of the communications piece you choose) Critique Part: Category Positioning and ‘Involvement by Motivation’ Grid Target Customers Marketing Communications Strategy and Objectives Creative Strategy and Tactics Workshop today: we will work on Target Customers and the ‘Involvement by Motivation’ Grid (also used in Assignment #2) 2
- 2. Copyright © UTS Identifybuyer groups likely to be targeted with each ad (put ‘X’ when you think the audience is targeted with the ad): 3Ad 1Ad 2Ad 3Ad 4Ad 5Ad 6Ad 7Ad 8Non-usersLoyals to Competitors (Other-Brand)Other-Brand SwitchersOwn Brand SwitchersOwn Brand Loyals Copyright © UTS Ad 1 4 Assume you have to buy the product to participate Copyright © UTS Ad 2 5 Copyright © UTS Ad 3 6 Copyright © UTS Ad 4 7
- 3. Copyright © UTS Ad5 8 Copyright © UTS Ad 6 9 Copyright © UTS Ad 7 10 Copyright © UTS Ad 8 11 Copyright © UTS Motivations (from last lecture; also see assignment #2 “notes for the campaign plan”) Informational: ‘’negative” (want to remove a problem) Problem removal Problem avoidance
- 4. Incomplete satisfaction Approach-avoidance Depletion (weakerdriver than the previous 4) Transformational: positive (gratifying; makes feel good) Sensory gratification Intellectual stimulation Social approval (i.e., can show off) Power-status (i.e., competence and control) (Rossiter & Percy) 12 Copyright © UTS Exercise: Packaged BREAD ‘Involvement by Motivation’ Grid Is this product category high (search and conviction required prior to purchase) or low involvement (trial experience sufficient)? What is the main motivation leading consumer choice in this category? 13 Low Involvement High Involvement Informational Motivation Transformational Motivation Copyright © UTS Wrapping up Individual assignment introduced Target Customers and the ‘Involvement by Motivation’ Grid discussed
- 5. Next week: Furtherexercises 14 Copyright © UTS Lecture Week 2 Buyers and Marketing Communications © Rustic Look Pencils by Anderson Mancini 1 UTS 24736 Marketing Communications SPRING 2019 Subject Coordinator: Dr. Valeria Noguti 1 Subject Structure MC Strategy Integrated MC and Budgeting Creative Strategy Media Strategy Evaluation and Metrics Introduction to MC MC Industry
- 6. Buyers #1: Advertising, sponsorship #2:Direct marketing, personal selling, sale promotion, field and experiential marketing, placement, exhibitions, packaging, licensing #3: Digital, PR 2 Copyright © UTS Foundations Managing Marketing Communications Marketing Communications Mix Figure 2.1 A linear model of communications Source: Based on Schramm (1955) and Shannon and Weaver (1962). 3 Copyright © UTS Figure 2.2 The influencer model of communications Source: From Essentials of Marketing Communications, Pearson Education (Fill, C. 2011) figure 2.2, p. 39. 4 Reprocess information to influence others, e.g., communicators such as influencers Respected as expert authorities in a subject matter, e.g.,
- 7. dentists, lawyers Copyright ©UTS Figure 2.4 The interactional model of communications Source: From Essentials of Marketing Communications, Pearson Education (Fill, C. 2011) figure 2.4, p. 41. 5 CHALLENGE TO GET YOUR MESSAGE RECEIVED AS INTENDED Copyright © UTS Consumer Effects Motivations Memory: awareness Attitudes Decision Making Depending upon: Involvement: high or low; product, category, or communications Type of user: New User (of category) Loyal Multi-brand loyal Brand Switcher Loyal to Competitor (Other-brand loyals) *** Copyright © UTS Motivations Informational: ‘’negative” (want to remove a problem) Problem removal Problem avoidance
- 8. Incomplete satisfaction Approach-avoidance Depletion Transformational: positive(this is pleasant) Sensory gratification Intellectual stimulation Social approval Power-status (Rossiter & Percy) 7 Copyright © UTS Figure 3.3 Memory and information storage Memory 8 Copyright © UTS Figure 3.4 A standard decay curve 9 Copyright © UTS Brand Awareness Recall Recognition 10 © Walking on Erg Chebbi, Morocco by Dimitri B. Copyright © UTS
- 9. 10 Figure 3.6 Thethree-component attitude model Attitudes 11 Copyright © UTS Figure 3.7 A consumer’s decision-making framework Consumer Decision Making 12 Copyright © UTS Figure 3.8 The buyphases of organisational buying decisions Organisational Buyer Decision Making 13 Copyright © UTS Table 3.2 The main characteristics of the buyclasses Organisational Buying - Types 14 Copyright © UTS B2C vs
- 10. B2B 15 From Chapter 1 Copyright© UTS Figure 3.11 Marketing communications approaches for the two levels of involvement Source: From Essentials of Marketing Communications, Pearson Education (Fill, C. 2011) figure 3.7, p. 74. MC in High vs Low Involvement 16 Copyright © UTS 17 Copyright © UTS 18 Copyright © UTS Buyer Journeys 19 Copyright © UTS Circular Journey 20
- 11. Copyright © UTS 21 Copyright© UTS *** Customer Experience (CX) CX is the set of connections a customer has with a brand via touchpoints. CX maps are built to visualise touchpoints. Online touchpoints: include video views, mobile and desktop content consumption, social media, e-commerce transactions, chatbots, and connected IoT (Internet of Things) devices (e.g., Alexa). Offline touchpoints: include in-store, in-branch, outdoor, and experiential advertising, and sampling. https://www-warc- com.ezproxy.lib.uts.edu.au/content/article/bestprac/what_we_kn ow_about_customer_experience/122499 Variations on CX maps include product consumption (post purchase), interaction with advertising (pre purchase) and other moments. Can also go from very detailed to not so detailed, or focus on some moments and not others. 22 Copyright © UTS Consumer Experience Journey Maps (CXJMs) Milk example: research in the US showed that kids loved drinking milk and ranked milk the same as pizza, as a top favourite food key touchpoint failure: when kids reached into the refrigerator
- 12. for a snackor beverage, milk was not top of mind solution: targeted kids directly; used catchy slogan “Milk It”; used kid influencers (Shimmel & Lorent 2017, ADMAP) 23 Copyright © UTS Purchase Journey Map - Touchpoints (example for product in FMCG category) 24 https://www-warc- com.ezproxy.lib.uts.edu.au/content/article/Five_tips_for_market ing_through_the_customer_journey/112289 Copyright © UTS Involvement by Motivation Grid (Rossiter & Percy) 25 Copyright © UTS Wrapping up Buyers and Marketing Communications discussed Project Product explained Next week: Marketing Communications Strategy 26 Copyright © UTS
- 13. Lecture Week 3 Marketing Communications Strategy ©Rustic Look Pencils by Anderson Mancini 1 UTS 24736 Marketing Communications SPRING 2019 Subject Coordinator: Dr. Valeria Noguti 1 Subject Structure MC Strategy Integrated MC and Budgeting Creative Strategy Media Strategy Evaluation and Metrics Introduction to MC MC Industry Buyers #1: Advertising, sponsorship #2: Direct marketing, personal selling, sale promotion, field and experiential marketing, placement, exhibitions, packaging, licensing #3: Digital, PR 2
- 14. Copyright © UTS Foundations ManagingMarketing Communications Marketing Communications Mix Top 20 Advertisers Australia 2019 Financial Year Total Estimated Spend ($M) 3 https://www.adnews.com.au/news/the-top-20-advertisers-in- australia-for-2019 Copyright © UTS Australian Advertising 2019 4 https://www.adnews.com.au/news/the-top-20-advertisers-in- australia-for-2019 Copyright © UTS Global advertising spending from 2010 to 2019 (in billion U.S. dollars)
- 15. Global advertising spending2010-2019 Note: Worldwide; 2010 to 2018 Further information regarding this statistic can be found on page 8. Source(s): GroupM; ID 236943 2 Copyright © UTS Spending in billion U.S. dollars 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 399.26 418.28 434.04 451.14 467.58 485.17 503.67 521.38 543.71 563.02 Spending in billion U.S. dollars Largest global advertisers in 2017, by ad spending (in billion U.S. dollars) Largest global advertisers 2017 Note: 2017 Further information regarding this statistic can be found on page 8. Source(s): Advertising Age; OnlineMarketing.de; ID 286448 Spending in billion U.S. dollars
- 16. Copyright © UTS Spendingin billion U.S. dollars Samsung Electronics Procter & Gamble Co. L'Oréal Unilever Nestle 11.2 10.5 8.6 8.5 7.2 Advertising spending in the world's largest ad markets in 2018 (in billion U.S. dollars) Advertising spending in the world's largest ad markets 2018 Note: Worldwide; June 2019; estimates; current prices Further information regarding this statistic can be found on page 8. Source(s): Zenith; ID 273736 4 Population: Canada => ~ 37 million Australia => ~ 24.5 million US => ~ 327 million Sweden => ~ 10 million China => ~ 1400 million Ad $ per capita: $292 $506 $703 $400 $62
- 17. Copyright © UTS Column2 UnitedStates China Japan United Kingdom Germany Brazil France South Korea Australia Canada Italy Indonesia IndiaRussia Spain Switzerland Mexico Belgium Netherlands Sweden 229.68 87.08 43.18 27.5 24.92 13.47 13.26 12.89 12.43 10.78 9.0399999999999991 9 8.93 7.48 6.51 6.13 5.1100000000000003 5.1100000000000003 4.8099999999999996 4 Spending in billion U.S. dollars
- 18. Year-over-year change ofadvertising expenditure in selected countries from 2016 to 2018 Ad spend growth 2016-2018, by country Note: Worldwide; January 2018; forecast; current prices; worldwide data based on 12 major markets Further information regarding this statistic can be found on page 8. Source(s): WARC; Website (adobomagazine.com); ID 276805 Year-over-year change Russia: 16: $6.6 bi 17: $8.7 bi 18: $9.7 bi World Cup… UK: 15: $28.6 bi 16: $26.5 bi 17: $25.6 bi 18: $26.5 bi Brexit ref 2016 Copyright © UTS 2018
- 19. IndiaRussia China AustraliaUnited States Brazil Worldwide United Kingdom Italy Japan Germany France 0.13100000000000001 0.11899999999999999 0.08 6.4000000000000001E-2 5.0999999999999997E-2 5.0999999999999997E-2 4.7E-2 3.5000000000000003E-2 3.4000000000000002E-2 0.03 2.3E-2 1.0999999999999999E-2 2017 IndiaRussia China Australia United States Brazil Worldwide United Kingdom Italy Japan Germany France 0.152 0.317 4.7E-2 8.5999999999999993E-2 3.3000000000000002E-2 0.129 0.03 -3.5000000000000003E-27.0000000000000001E-3 - 0.01 1E-3 -1.2999999999999999E-22016
- 20. IndiaRussia China AustraliaUnited States Brazil Worldwide United Kingdom Italy Japan Germany France 6.5000000000000002E-2 6.4000000000000001E-2 4.4999999999999998E-2 5.8000000000000003E-2 8.5000000000000006E-2 3.4000000000000002E-2 3.7999999999999999E-2 - 7.2999999999999995E-2 4.2000000000000003E-2 0.14199999999999999 2.5000000000000001E-2 8.9999999999999993E-3 Distribution of global advertising expenditure from 2015 to 2020, by media Global advertising expenditure 2015-2020, by media Note: Worldwide; 2015 to 2018 Further information regarding this statistic can be found on page 8. Source(s): Dentsu Aegis Network; ID 245440 2 Copyright © UTS Digital
- 21. 2015 2016 20172018 2019* 2020* 0.246 0.318 0.35599999999999998 0.38500000000000001 0.41399999999999998 0.438 TV 2015 2016 2017 2018 20 19* 2020* 0.42 0.38300000000000001 0.36599999999999999 0.35399999999999998 0.34100000000000003 0.33200000000000002 Newspapers 2015 2016 2017 2018 2019* 2020* 0.124 0.104 9.0999999999999998E-2 0.08 7.0999999999999994E-2 6.3E-2 Out of home 2015 2016 2017 2018 2019* 2020* 6.9000000000000006E-2 6.3E-2 6.3E-2 6.3E-2 6.3E-2 6.2E-2 Radio
- 22. 2015 2016 20172018 2019* 2020* 6.6000000000000003E-2 6.5000000000000002E-2 6.3E-2 6.2E-2 0.06 5.8000000000000003E-2 Magazines 2015 2016 2017 2018 2019* 2020* 6.9000000000000006E-2 6.3E-2 5.6000000000000001E-2 0.05 4.4999999999999998E-2 4.1000000000000002E-2 Cinema 2015 2016 2017 2018 2019* 2020* 5.0000000000000001E-3 6.0000000000000001E-3 6.0000000000000001E-3 6.0000000000000001E-3 6.0000000000000001E-3 6.0000000000000001E-3 Share
- 23. Table 5.1 Anaudience interpretation of marketing communications strategy Target x Communications Goal 10 Copyright © UTS Figure 5.3 The direction of a marketing communications pull strategy Source: From Essentials of Marketing Communications, Pearson Education (Fill, C. 2011) figure 4.2, p. 99. Pull Strategies 11 Copyright © UTS Figure 5.4 The direction of a marketing communications push strategy Source: From Essentials of Marketing Communications, Pearson Education (Fill, C. 2011) figure 4.3, p. 102. Push Strategies 12 Copyright © UTS How do Marketing Communications (Marcoms) contribute to profit? Profit = (Price – Cost) x Unit Sales Which can you influence through Marcoms?
- 24. 13 Copyright © UTS Sales& Market Share Objectives Can sales and market share be used interchangeably? Market share is relative to competitors: In growing markets: ↑ Sales => Market Share: no change ↑ Sales => Market Share ↓ (competitors’ sales are gr In declining markets: ↓ Sales => Market Share: no change ↓ Sales => Market Share ↑ (e.g., competitors are leaving the market) Sales always important objective! If market share is used as an objective, the competitive landscape needs to be identified 14 Copyright © UTS Marketing Communications Objectives 15 Marcoms need to align with corporate objectives; Some campaigns designed to promote corporate objectives Primary objectives Intermediary objectives, conducive to the ultimate objectives For long term, sustainable achievement of primary objectives, behavioural objectives are important: e.g., loyalty Copyright © UTS
- 25. Awareness as anObjective 16 Example: promote important/new attribute Novelty, POS activity High involvement ads (faster effect); Classical conditioning (may be slower to build effect) Example: radio which is cheaper than tv, support WOM Provide a lot of information such as a good website, allow experimentation, invest in salespeople, etc Copyright © UTS SMART Objectives 17 Copyright © UTS Category Positioning (mental partitioning) 18 (Rossiter & Percy 2018) Copyright © UTS Automobiles Regular Sedans European cars
- 26. Large Medium SUVs and othertruck-like vehicles Japanese cars Korean cars American cars Small High-priced Medium-priced Chevrolet Monte Carlo Ford Focus Chrysler Sebring
- 27. Low-priced Category Positioning (mentalpartitioning) Defining your market What is the true market that your brand competes in? If consumer wants to satisfy thirst: what options are available? Build a category positioning 19 Copyright © UTS Perceptual Mapping 20 Copyright © UTS Positioning Strategies Product features: Aldi “Good Different” Price/quality: Private label products (e.g., Woolworths Select = good value) Use: After Eight chocolate Product class dissociation: Dove is “not soap” User: Lynx/Axe (from teen repositioned to uni guy “Find your magic”) Competitor: Avis ”we are number 2, we try harder” Benefit: Wash and Go shampoo Heritage or cultural symbol: Patek Philippe watches 21 Copyright © UTS
- 28. The Economist 22 Problem: gettingpeople to subscribe at full price Research: problem caused by targeting wrong consumers Readers: loyal, open-minded and comfortable when challenged Non-readers: lack of awareness or misconception about content (what do you think about the publication?) Task: encourage new audiences to re-evaluate their understanding of the brand, ie.e, get the right target market (open-minded people, comfortable when challenged, “globally curious”) to do this re-evaluation so that they would subscribe; need to screen out the wrong target (someone not likely to read it) Objective: Main: sell x number of subscriptions, ROI of x%, increase retention rate to 25% Intermediary: increase by x% the number of people in the UK that find the brand interesting decrease by x% the number of people in the UK that find the brand boring and dry Budget: only £10,000 *** Questions: What is the positioning strategy used? What is the buyer group the campaign is targeting? What are the direct competitors (partitioning)? How is the campaign contributing to profit? Price, cost, unit sales? Why did it reach the results it did?
- 29. 23 Copyright © UTS Wrappingup Marketing Communications Strategy discussed Next week: Integrated Marketing Communications & Budgeting 24 Copyright © UTS Workshop Week 4 © post-it notes by Dean Hochman UTS 24736 Marketing Communications SPRING 2019 Facilitators: Dr. Valeria Noguti & Dr. Kaye Chan 1 Assignment #1 (Individual) Cover Page Campaign Brief Description (note: differently from what is stated at the assignment guidelines, this part does not go in the critique part, it is just the description of the communications
- 30. piece you choose) CritiquePart: Category Positioning and ‘Involvement by Motivation’ Grid Target Customers Marketing Communications Strategy and Objectives Creative Strategy and Tactics Workshop today: we will work on Marketing Communications Strategy and Objectives (also used in Assignment #2) 2 Copyright © UTS Choosing a communications piece for Assignment #1 The communications piece should be delivering a more complete message by itself, such as a print ad, a radio ad, a video (online or tv), one social media post with it’s hashtags, text, and image(s)/video, one outdoor, one guerrilla marketing campaign execution such as the Economist ice-cream stunt we discussed in the lecture, etc. Do not pick a picture of packaging, or a picture taken of a website. If you think it is necessary, you can include more than one execution of the same type of communication, such as 2 or 3 Facebook posts if they are all slight variations that would help interpret the same campaign, e.g., each post having a different flavour, or using a different actor to deliver the same message. Follow the definition of product provided in the assignment guidelines 3 Copyright © UTS Questions from a student:
- 31. Do we haveto take one single product which is a meat substitute or we can talk about a brand as a whole which creates meat substitute products. For instance, Taking your example from the assignment description, the brand is VBites Cheatin’ which has one of the product i.e. “Beef Style Slices”. So do we have to talk about one particular product or can talk about the brand as a whole which is totally into selling meat substitute products. EITHER WAY, YOU WILL WANT TO TALK ABOUT THE BRAND. WHETHER YOU DISCUSS ONE PARTICULAR PRODUCT ONLY WILL DEPEND ON THE COMMUNICATIONS PIECE THAT YOU SELECT. IF YOU SELECT A PIECE THAT HAS ONLY ONE PRODUCT, THEN DISCUSS THAT PRODUCT. IF YOU SELECT A PIECE THAT HAS SEVERAL PRODUCTS, THEN YOU DISCUSS THE WHOLE SET. THE BRAND WILL IN GENERAL BE THE MOST IMPORTANT, BUT YOU CHOOSE WHETHER YOU TALK ABOUT THE RANGE IN GENERAL (OR CATEGORY) OR ABOUT ONE PRODUCT ONLY. 4 Copyright © UTS Questions from a student: If a meet substitute brand/ product does not position themselves as a meet substitute brand in their communication, they might be positioning themselves as healthy protein alternative or environment friendly etc without telling that it’s a meat substitute in their advertisement though the nature of the product is same as meat substitute. Is that ok? IF IT IS EVIDENT THAT THE BRAND IS TRYING TO BE A
- 32. MEAT SIMILAR, ITIS OK. E.G., FALAFELS ARE NOT OKAY TO CHOOSE BECAUSE THEY DON’T INTEND TO BE LIKE MEAT EVEN THOUGH THEY COULD PLAY THAT FUNCTION OF ADDING PROTEIN TO A VEGETARIAN MEAL OR REPLACING MEAT BALLS FOR EXAMPLE. A SIMPLE VEGGIE PATTIE IS NOT OKAY AS IT CAN BE VERY DIFFERENT TO MEAT, SUCH AS SIMPLY POTATOES, WITHOUT ANY INTENTION OF TASTING OR LOOKING LIKE MEAT. IF THE VEGGIE PATTIE CALLS ITSELF A BURGER, THEN IT IS OK. A PRODUCT THAT IS JUST HEALTHY OR ENVIRONMENT FRIENDLY IS NOT OKAY IF NOT BRANDED AS SIMILAR TO MEAT. 5 Copyright © UTS Questions from a student: Do we have to analyse only one piece of advertisement from any of their campaigns across different marketing channels or we have to talk about the campaign as a whole if they have different ads from the same campaign or same type of communication/ message. YOU HAVE TO CHOOSE JUST ONE PIECE. DIFFERENT EXECUTIONS MAY HAVE DIFFERENT OBJECTIVES. SO YOU ARE ASKED TO BUILD A CRITIQUE OF JUST ONE. BUT NOTE THAT YOUR CRITIQUE WILL BE WAY BETTER IF YOU INCLUDE MORE CONTEXT IN YOUR DISCUSSION. FOR EXAMPLE IN THE DISCUSSION YOU CAN CONTRAST THE PIECE YOU SELECTED WITH PREVIOUS CAMPAIGNS (EG, HOW IT BUILDS ON THEIR LONG TERM BRANDING, OR WHETHER THEY HAVE REPOSITIONED, WHETHER THIS IS GOOD OR BAD, ETC), WITH INFORMATION ABOUT THE BRAND (IS IT A NATIONAL BRAND, NEW
- 33. BRAND, MARKET LEADER,ETC), WHETHER THE CAMPAIGN IS A RESPONSE OR CONTRASTS WITH A MAIN COMPETITOR IN THAT SAME MARKET, ETC. 6 Copyright © UTS Target Audience (put ‘X’ where you think the objective aligns with the buyer group): 7Short-term (activation) objectivesNon-usersLoyals to Other- BrandOther-Brand SwitchersOwn Brand SwitchersOwn Brand Loyals Trial Objectives:CategoryBrandBrand retrialRepeat Purchase Objectives:Maintain repeat rateIncrease repeat rateBuy more per occasionBuy less per occasionAccelerate timingDelay timing Copyright © UTS Positioning Strategies (slide from last lecture) Product features: Aldi “Good Different” Price/quality: Private label products (e.g., Woolworths Select = good value) Use: After Eight chocolate Product class dissociation: Dove is “not soap” User: Lynx/Axe (from teen repositioned to uni guy “Find your magic”) Competitor: Avis ”we are number 2, we try harder” Benefit: Wash and Go shampoo (not the attribute or how it delivers the benefit) Heritage or cultural symbol: Patek Philippe watches 8 Copyright © UTS
- 34. Marketing Communications Objectives(slide from last lecture) 9 Marcoms need to align with corporate objectives; Some campaigns designed to promote corporate objectives Primary objectives Intermediary objectives, conducive to the ultimate objectives For long term, sustainable achievement of primary objectives, behavioural objectives are important: e.g., loyalty Copyright © UTS From what can be inferred from ads 1 and 2: 10AD 1 (Coca-Cola Energy)AD 2 (Taste the Feeling)What is the positioning strategy used? What is the buyer group the campaign is targeting?Does the campaign have short term objectives? eg trial / repeat purchasesWhat are the intermediary objectives of the campaign?What are the direct competitors (partitioning)?How is the campaign contributing to profit? Price, cost, unit sales?What is most positive about this ad piece? What is most negative about this ad piece? What would you change and why? https://www.youtube.com/watch?v=wC416q2vREo https://www.youtube.com/watch?v=8xCqmYbXH9w Copyright © UTS Wrapping up Exercises completed on Marketing Communications Strategy and Objectives Nex Reminder: Assignment #1 due in 2 weeks! Report to be both handed-in at the workshop and uploaded to Turnitin.
- 35. 11 Copyright © UTS MarketShare Measures MARKET DEFINITION AND PARTITIONING CHAPTER 2: PRoFIT, SALES, AND MARKET SHARE OBJEOTIVES 45 be increasin g anyway as category sales increase; market share indicates whetherthe-brand is growing faster than the competition. 2 Flat or Decliníng Markets (Mat share is less important than sales in only way sales can increase in a flat o away from the competition. One mus lncreases are not the spurious results that sales are in fact increasing. Because market share is simply relative sales, the sales measures describedpreviously are also used to ."ârr." market share. In using ,ro." o,"".u."r,the manager has to have access to competitors, or category sales against whichto assess the brand's own sales. Market share, like sales, can be me sales dollars received. The rnanager s in units reveals how well the brand is
- 36. the basic measureof market share informative because it reflects the e are in turn usually related to profit. avenue to profit, for instance, might be share and an increasing dollar mãrket course, would apply to its sales trends purchase alternatives. Actual competiti always easy to determine. For insiance: ' Recall the example of Heineken beer. Heineken has à 2 percentmarket share of the u'S' beer market; however, it has a 40 percent share of theu's' market for imported beers. But does Heineken just compete withimports or does it {sg compete with quasi imports such as Lowenbrau and super-premium u.S. beeis such as r¿i"tr"roui rrro, rr"ìnlten,s .,true,, market share is neither2 percent or 40 percent but sorne ngu..ìl U"t;;. ' Xerox copiers: Does Xerox compete *ittt ull "opi"r., i-nïu¿ing cheaperdesk-top inodels, or maiirly against other expensive, high-speed, murtipre-copy machines? ' sanka-brand coffee: Does sanka compete with ail coffees, or just instantcoffees, or just instant decaffeinated coffees ? ' Digital's compurers: Does Digital Equipment corporation compete with 46 PART 2: MARKETTNG oBJEclvES
- 37. IBM for alltypes of computers, or is Digital's "true" market currently in mid-sized computers? As these examples indicate, market share objectives can be statistically and stralegically misleading if they are not based on an appropriate competitive market definition. Partitioning the Overall Market to Find the True Market (Competitive Frame) An analytical technique of great value to managers in deciding on the "true" market or "competitive frame'l for a brand is known as "partitioning" or ;:'#ä.T:ï'.Tålii*î,tll;.ïåìH":ì"iåJiil,lilif üäl;:ff ffi f i has been applied in many ways by others. The basic idea of partitioning is that the overall market or product category (often industry-defined) can be successively subdivided into partitions or sub- markets which increasingly approximate the true market for a brand or brand- item (as defined from the consumer's standpoint). As you go "down" the hierarchy of partitions, perceived substitutability increases, and actual brand or item switching behavior increases. This is shown in Figure 2.3. Bases for Partitions The partitions that divide a market into sub-
- 38. markets (in consumers' eyes)can be based on a number of factors. Most often these are: I Product forms, where there are distinct physical differences between products (for example, large, medium or mini-computers; margarine in sticks or cups) 2 Benefits sought, where products vary in the features they emphasize (for example, cavity prevention or fresh taste in a toothpaste; status or price-value in a pair of jeans) FIGURE 2.3 Total market partit¡oned into sub-markets in which each brand or brand-item faces the most direct competition. Market Sub-market' Sub-market Perceived subst¡tutes Actual switching CHAPTER 2: PBOFIT, SALES, AND MARKET SHARE OBJECTTVES 47 3 usage situations, where benefits sought in the "same" product may vary
- 39. over usage situations(for example, "special occasion" beers versus "regular" beers; family versus adult movies) 4 Brand names, where the brand name signifies a particular ,,image,'or quality level and various items are available under that brand name (for example, Black & Decker versus Rockwell ¡iower tools; Macy's versus Saks Fifth Avenue department stores) Partitioning and "Positioning" Partitioning is one aspect of "positioning." A brand can be positioned, either deliberately or by consumer perception, in one sub-category or another of the total product category. For example, New coke is positioned in the regular cola sub-category of the cola market and, more broadly, the soft drink market; Sprite is positioned in the regular lemon- lime sub-category. Later, when we examine brand attitude, we will see that a brand can further be positioned within its sub-category with reference to other brands with which it competes. This is the second aspect of "positioning." Here we will focus on the category-membership (competitive frame) aspect ofpositioning rather than the brand-differences aspect. Partitioning is relevant only to the former.
- 40. Determining the orderof Partitions The "trick" in partitioning is deciding on the order of the partitions. For example, in choosing a yogurt, do consumers decide first on a brand nam'e and then on a product benefit such as flavor? or do they choose a flavor first and then a particular brand? In other words, the yogurt market could be partitioned in at least two different ways, as shown in Figure 2.4. Note the importance of the different partition orders. If the yogurt market is pafitioned by consumers in the manner shown in panel (a), Dannon's main advertising and promotion objectiie would bq first to convince consumers to buy the Dannon brand, then offer flavors that suit "Dannon lovers." Alter- natively, if the yogurt market is partitioned by consumers in the manner shown in panel (b), Dannon's main advertising and promotion objective would first be to appeal to, for example, "strawberry lovers," then convince these consumers that Dannon offers better strawberry yogurt than any other brand. Fortunately, determination of the correct order of partitions need not be left to intuition. As we shall see at the end of this section, there are various consumer research measures that can identify the likely ordering by following the basic rule mentioned earlier: that perceived substitution and
- 41. actual switching will begreater the lower the partition is in the hierarchy. lmplications of Partitioning for Setting Market Share Objectives Implications of partitioning for .setting market share objectives are best illustrated by a further example-this time with actual data (deliberately several years old to protect company confidentiality). Table 2.4 shows market share 48 PART 2: MARKETTNG oBJEclvEs Dannon strawberry (etc.) Lemon Strawberry Dannon (etc.) Light 'n' Lively FIGURE 2.4 TABLE 24 MARKET SHARES FOR PERSONAL DEODORANTSf 1973 1976 Llght'n'Lively Stráwberry (etc.) Lemon
- 42. Lemon Dannon (erc.) Light'n' Lively (a) Yogurt (etc.) (b) Yogurt (elc.) Alternativepartitioning of the.yogurt ma(et. (a) Primary competition between brands followed by frequent switching between flavors. (b) Primary competition be veen flavo¡s followed by frequerit switching between brands. (/"1(vù 1 Company shares Gillette Bristol-Myers Procter & Gamble Carler-Wallace 2 Brand Shares Ban (B-M) B¡ght Guard (G) Sure (P&G) Anid (C-W)
- 43. 25 13 11 14 21 20 18 I 12 20 4 14 19 17 11 9 t The f¡gureswere compiled by Maxwell As- sociates and reported in Adven¡sing Age, May 9, 1977, p. 68 (used with permission). CHAPTER 2: pROFtT, SALES, AND MARKET SHARE OBJECTTVÉS 49 trends for the personar deodorant market several years ago.17 panel I showsmarket shares by company and panel 2 shows
- 44. maiket shaîes bybrand. The company share trends arê not very informative ior ttre a¿ve.tising andpromotion manager responsible for an individual u.un¿. gut even moreimportantly, the brand share trends are not very informative either, unless themanager knows how the deodorant market ii partitione¿. it is the trendsoccurring within the partitiors that are importánt i". .ãttìrrg market shareobjectives. Figure 2.5 shows a re for personal deodorants. deodorants has its prima and those who prefe lgecjfc type of applicaror from wirhin their preferred Finally, they select a brand from within the specific Note that market share tre¡ds no¡/ depend cruciaily on market definitionvia partitioning. At the time between the market sharL measurements, 1973and 1976, there was a major crackdown on aerosol spray containers becauseof fears of damage to the earth's ozone layer. Spray, íori u lu.ge share ofmarket, from 75 down to 55 percent, despite tt " int.á¿u"tion or non-aerosol(pump) sprays which reversed some of this trend. Non-sprays benefited witha rise in market share from 25 to 45 percent. Non-spray suusiaia.y products, FIGURE 2'5 Market structure for personal deodorants. Market share trends are shown in parentheses. Firstfigure is i973, second is 1976, an¿ ãnow shows treÀd. personal Deodorants
- 45. Sprays Aerosol Pump (7s aa¡(o 7',) (s Brands Brands 5s)(75 Non-sprays (2s 4s) SticksRoll-on Brands 25) (6 Powder 11) (10 e) ErandsBrands 50 PART 2: MARKETING oBJEcrlvES roll-on and stick deodorants, benefited simultaneously, although the other non- spray alternative, powders, remained fairly constant in usage'
- 46. What if youhad been the advertising and promotion manager for Procter & Gamble's Sure brand in 1976? Sure,aroll- ondeodorant,shouldbesettingitssightsonlla¡eeincreasetn market share. This was not at all evicent from panel 2 in Table 2'4, where Sure could not be sure that its rise from 4 to ll percent did not represent a p"ut ,nur" for the Ut""¿. i" fact, from Figure 2'5' Sure may have gained a lot of this increase urv*äv, *ìrh litûe advertising or promotion, simply by being in the growing category of roll-ons' ButSurehasachancetodominatetheroll- oncategory:Surehasllpercent rare ofthe roll-on category' Sure shguld omotion spending heavily ratirer than ver, the message strategy, instead of e, should also stress its roll-on product remind consumers that it is not one of those "harmful" aerosols. The market share objective and strategy for Sure (albeit hypothetical) would
- 47. noiù" evident hadweïot known how the market was partitioned' "De-paditioning" as a StrategY Most product categories te levels and frequentlY fewe levels there are, the smalle become. Partitioning is esse One could continue to seg she wanted, Provided the fir mixes.,,Thiscanbeprofitableinsomeindustries,suchasgovernment contract rtitioning partition roadly tc address two or more sub-c The reason that de-Parti on being able to offer acom technological or PsYchologi the most difficult, but there and Aqua Fresh toothPaste the gel form (fresh taste) interestlng examPle is Mic premium "image" in an att together. However, one must be sure tha nt the combinatio: of forms or benefits, raising the gical barriers' Fo example, in 1981, a new non-pre ðalled Gemnisyr
- 48. CHAPTER 2: PROFIT,SALES, AND À/ARKET SHARE OBJECTTVES S.l combined aspirin with acetaminophen (the Tylenol non-aspirin ingr-edient) in an attempt to appeal to consumers in both the aspirin and non- aspirin partitions of the pain remedy market. But how many consumers would want both ingredients after having learned from past advertising campaigns that aspirin and acetaminophen are so different? Another example that auto manufacturers have hadproblems with is the concept of a "luxury small car"; luxuriousness Partitioning Markets for Durables However, even for durables, customers do change brands or suppliers and, more pertinently, they are Iikely to confine their selections to a sub-set of similar offerings. Thus, it is still meaningful to partition markets for these less frequently purchased products so that the firm can identify where its true market is and who its real competitors are. Durable goods partitioning examples include savin, who has chipped away at Xerox by specializing in the small copier sub-market. Similarly, Midas hai concentrated on the sub-market of auto muffler buyers who want firm quotations and brand name guarantees in the notoriously risky (overall)
- 49. auto repair and servicemarket. Partitioning is, therefore, a relevant means of market definition for virtually any type of product or service. As we shall see shortly, the main differencã with durables is that the partitioning measure is likely to focus on customer- perceived substitutability rather than, as for packaged goods, on brand- switching behavior. THE POSSIBILITY OF LIMITS TO MARKET SHARE It is comparatively easy to understand that there is a limit to sales of a producî calegory (not everyone wants every product and those who do want it have some limit to oonsumption capacity), but it is rather revolutionary to contem- plate that there may be a limit to a brand's market share of sales within the product-category sales level. After all, isn't it possible for the firm with the best brand to retain 100 percent of a market, if first in, or to gain 100 percent of it, if a later entry? If there are limits to retainable or attainable market 1
- 50. 24736 Marketing Communications SPRING2019 Subject Coordinator: Dr. Valeria Noguti ASSIGNMENT #1 (INDIVIDUAL) Analysis of a marketing campaign for a meat substitute product Value 30% Overview The assignment requires you to analyse a marketing communications campaign within a specific product category. In doing so, you will understand the managerial decisions that were made with respect to a campaign and appreciate the need to plan marketing communications in a comprehensive and integrated manner. Details Select a communication piece (e.g., TV, digital, or print ad, or social media ad, guerrilla marketing material, etc.) from a marketing campaign related to meat
- 51. substitute products. The productshould be designed to resemble meat (any animal meat, i.e., beef, chicken, pork, fish, etc.), though it does not have to be intended to be so similar that people may not detect that it is not real meat when they taste it. The piece has to mention specifically that the product is targeted at replacing real meat. For example, VBites Cheatin’ sells “Beef Style Slices” making prominent in their packaging that it is “a delicious meat-free alternative”. At the same time, products that are not similar to meat are not suitable options for this assignment. For example, an ad for a veggie pattie cannot be chosen for this assignment, unless it specifically mentions the product is designed to resemble meat. A veggie burger, on the other hand, can be used in the assignment as the word ‘burger’ is associated with the idea of real meat. Overall, any non-real- meat product that is labelled with any word that denotes meat can be used for this assignment, e.g., burger, meat, beef, chicken, etc. Usually they appear with modifying words such as in the example above “Beef Style”, and most will mention some related attribute such as that they are “100% plant based”, or “Vegetarian product”, or “Vegan”, etc. The piece can be from anywhere around the world but note that in case it is not in English you are required to provide full translation in your
- 52. submission. You cannot chooseBeyond Meat, Impossible Foods, or Nuggs, but any other brand adering to the description above should be fine. Ask your workshop facilitator if in doubt. CantsleepXia CantsleepXia CantsleepXia CantsleepXia CantsleepXia 2 You are required to develop a critique of elements of the communication piece for the brand (i.e., discuss both positive and negative aspects) in terms of the communications objectives, creative strategies and tactics used, as well as the target customer and category positioning (mental partitioning) involved. In particular, look at positioning (market needs) and customer persona(s). Essentially you are required to apply many class concepts. Make
- 53. sure to conclude witha paragraph stating overall how successful you think the campaign is in reaching the objectives you can infer they want to achieve, and, discussing at least one change (specifically to the material you chose for this assignment) that you think would make the campaign be more successful (even if you think it is already successful) and why. It is likely that you will not have access to information about the entire campaign, so you can make informed inferences by using class content and researching industry information and other sources. You might not be able to consider all the stages (e.g., objectives and budgeting stages) as you would not necessarily have information, however, make an informed guess by stating for example that they “appear to” (or “don’t appear to”), and then provide an explanation to why you think they “appear to” (or “don’t appear to”). Formatting requirements - The report should use standard margins (2.54cm) and 1.5 spacing, 12 size normal font. - The report should include a cover page with student name and number, the tutorial the student is enrolled in (4pm, 5pm, or 6pm), and the name of the
- 54. brand/product chosen. Thisshould be followed by a page with the chosen communication piece details such as an image of a print ad, a storyboard snapshot and link to a video ad, etc. In a new page start the critique, which should contain the following parts: • Campaign Brief Description • Categor Positioning and ‘Involvement by Motivation’ Grid • Target Customers • Marketing Communications Strategy and Objectives • Creative Strategy and Tactics Include references after the critique. If there are any appendices, include last. - Maximum limit of 800 words, excluding cover, chosen communications piece information, references, and appendices (if any). - Appendices should not contain any content expected in the main body of the report and should only be included if deemed really necessary. CantsleepXia 3
- 55. Submission requirements - Hardcopy of your assignment at the beginning of the workshop on the assignment due date. - Submit a soft copy on Turnitin via UTSOnline. - Referencing: if the assignment is not properly referenced in text and does not include a references list, marks will be deducted. For further information on referencing see UTS Business School Guide to Writing Assignments. Other requirements - Marks will be deducted for late submission of the assignment. - If there are any unforeseen changes to the information in this document, they will be announced on UTSOnline and/or in class. It is your responsibility to note any changes. Marking Criteria The assignment will be marked using the following criteria:
- 56. Conviction (50%) Qualityof the argument: strong, sensible, deep, focused, conclusive Completeness (40%) How well the topic/issue is covered; both positive and negative aspects are covered; supported by reliable sources/material Presentation (10%) How well the paper is presented; written-expression; proper referencing Timeline Assignment due in Week 6 – 28 August 2019. CantsleepXia 29/07/2019 How Clorox moved beyond data to a new human- centric brand focus | WARC https://www-warc- com.ezproxy.lib.uts.edu.au/content/article/event- reports/how_clorox_moved_beyond_data_to_a_new_humancentr ic_brand_focus/113267 1/10 How Clorox moved beyond data to a new human- centric brand focus
- 57. 5 min read GeoffreyPrecourt Event Reports, ANAMasters of Marketing, October 2017 SUMMARY Clorox, the cleaning brand, found marketing success by combining a focus on data with tangible human insights. Activating the brand purpose "Clorox Champions a Clean World Where People Can Thrive" ensured that it was truly focused on consumer needs. Previous efforts to enhance the brand's position through prioritizing tech-driven solutions yielded strong sales performance but negatively impacted brand equity. Through activating the insight that cleaning happens before minor and major events in life, Clorox was able to deepen its brand resonance. In 2012, after a half-decade in various US marketing postsfor the Clorox Co., Eric Reynolds moved to London to spend almost ten years as its corporate VP/GM for Europe, Middle East, Africa, and Asia. “When I left, TV was still king,” he told the 2,600-plus delegates at the
- 58. Association of NationalAdvertisers’ (ANA) 2017 Masters of Marketing Conference. And digital, at that time,was a not- very-important conversation. 29/07/2019 How Clorox moved beyond data to a new human- centric brand focus | WARC https://www-warc- com.ezproxy.lib.uts.edu.au/content/article/event- reports/how_clorox_moved_beyond_data_to_a_new_humancentr ic_brand_focus/113267 2/10 “But, you know what? TV worked.” The targeting wasn’t very precise, he allowed, and “at somepoint, someone got up out of the roomand made a sandwich. So, we did have someproblems with TV. But the fact was that if you spent enough money and if you spent more than your competitors … you could win. “We know this story: If you spent enough, you could make just about anything work.” And when Reynolds left Clorox’s Oakland headquarters for the UK, the primary product driver was simple and direct: https://www.ispot.tv/ad/7lp5/clorox-a-clear-choice Watch this ad:
- 59. https://www.ispot.tv/ad/7lp5/clorox-a-clear-choice 29/07/2019 How Cloroxmoved beyond data to a new human- centric brand focus | WARC https://www-warc- com.ezproxy.lib.uts.edu.au/content/article/event- reports/how_clorox_moved_beyond_data_to_a_new_humancentr ic_brand_focus/113267 3/10 “We really showed [OxiClean] and Church & Dwight,” he said, tongue firmly in cheek. “And we got sued. And we lost. “But we kept doing it. “And we got sued by Reckitt Benckiser, another competitor. And lost.” But, in defense of the then state-of-the-art advertising, “It was the kind of stuff that permeatedthe category: Spray, spray, wipe, smile, perfect multicultural, ethnic mom in a perfect kitchen. Those were real toilets; not computer-generated graphics. This was amazing stuff. “And it really, really worked, I guess because we spent lots of money on it.” In early2015, Reynolds was appointed as Clorox’s Chief MarketingOfficer, requiring a return to the United States. “And I knew somethingwas afoot.”
- 60. https://www.youtube.com/watch?v=w0j2VgM9dTU Watch this ad: https://www.youtube.com/watch?v=w0j2VgM9dTU 29/07/2019How Clorox moved beyond data to a new human- centric brand focus | WARC https://www-warc- com.ezproxy.lib.uts.edu.au/content/article/event- reports/how_clorox_moved_beyond_data_to_a_new_humancentr ic_brand_focus/113267 4/10 In this new position, he took on global responsibility for all marketing functions, including brand strategy and management, personnel staffing and development, consumer insights, advanced analytics, agency management, consumer promotion, digital capabilities, media planning and buying, commercial production, and graphic design. His conclusion: “Everything had changed.” London, he reminded his audience, “wasn’t a backwater.” But he’d landed back in the Bay Area, and straight into “the zeitgeist of performance marketing.” And it was clear, he asserted, that the rules of marketing for consumer packaged goods (CPG) had changed: A sector that was not renowned for speed had to pick up the pace.
- 61. “Our industry usedto be known for scale. If we spent enough on TV, we would win. But those days are over.The new [imperative] is speed and agility. If we want our brands to be relevant and exciting to people, what we better do is learnhow to get fast.” The lesson wasn’t just trickling up from the consumer;it was coming down from the top. Benno Dorer, who was named as Clorox’s CEO in late 2014, “was very clear with what he wanted … ‘There is an existential crisis in CPG,’ he said. ‘We are essentially moribund unless we radically change how we see, think, and work. We are going to transform Clorox.’” After 100 years of looking East – specifically, to New York – as a center of advertising and media, Reynolds’ team would do an about-face and start looking West, to Silicon Valley, for inspiration. The result: “Over the last threeyears, we've done almost everything to change everything.” 29/07/2019 How Clorox moved beyond data to a new human- centric brand focus | WARC https://www-warc- com.ezproxy.lib.uts.edu.au/content/article/event-
- 62. reports/how_clorox_moved_beyond_data_to_a_new_humancentr ic_brand_focus/113267 5/10 Initially, theplan was to listen and learn. One West Coast marketer – from a tech company Reynolds declined to mention by name – described how it brought products to market: “We don’t have marketing run by marketers. We're engineers. And we work on growth. Branding is really that emotional drizzle that you guys put on top.” “Emotional drizzle” was tough for Reynolds to swallow. “I know the TV ads weren’t great,” he confessed to his ANAmarketing peers. “But ‘emotional drizzle’?” The hard lesson for Clorox’s marketers: West Coast, tech-focused enterprises “were finding incredible ways to be creative with data and technology – to get down to that human level.” And that was a powerful change for the Clorox cleaning brand: “We built on data science. We brought in new creative partners,” with FCB and mcgarrybowen coming on board. “Our agency partners, OMD and AKQA, ramped things up for us. “We made new friends. We brought in capabilities. We were one of the first people to bring in the [Data Management
- 63. Platform] ... Westarted to direct massive amounts of people, time,and energy into that existential crisis we felt like we were facing in CPG.” But the rush to the new was not smooth: “We did a huge bid earlyon in programmatic media,” Reynolds admitted. “We bought trainloads of banner ads as a major commitment to try to get to that right person, the right time,very first, blah, blah, blah.” Despite the problems that now seemso obvious, however, the Clorox CMO told the ANAaudience in Orlando, “It absolutelyworked marvelously. Between 2014 and 2015 – in that sleepy, old, boring cleaning category – we grew by double digits.” 29/07/2019 How Clorox moved beyond data to a new human- centric brand focus | WARC https://www-warc- com.ezproxy.lib.uts.edu.au/content/article/event- reports/how_clorox_moved_beyond_data_to_a_new_humancentr ic_brand_focus/113267 6/10 But as one set of numbers pointed towards success, another batch identified deeper problems. Although sales were growing, a report from brand consultancy Prophet identified another, and uglier, quantitative
- 64. truth: Out of400 brands, Clorox checked in the bottom third, occupying 278th place. Said Reynolds, “It was really a wakeup call for us that said, ‘Okay, if we're being so successful, why is the brand deteriorating?’” The answer: “A huge case of ‘short-termitis’. “At a time when we could get down to a human level, an individual level, we were so fixated on the data and the technology that we lost the bigger picture.” In more detail, Reynolds continued, “In our rush to get so focused and get so data-enabled, we realized we were filling those moments that matter with cheaply-produced, hollow, vacuous, brand moments. “This was not storytelling.” 29/07/2019 How Clorox moved beyond data to a new human- centric brand focus | WARC https://www-warc- com.ezproxy.lib.uts.edu.au/content/article/event- reports/how_clorox_moved_beyond_data_to_a_new_humancentr ic_brand_focus/113267 7/10 The flat, digital messages were every bit as one- dimensional as the toilet-based comparisons from the previous decade. The human-
- 65. centricity that thebrand knew was part of its DNAwas missing in the data. Looking beyond the information in search of insight, the Clorox team realized, “We’d missed a really clear pointwith cleaning: Why, if everybody hatesto clean, do billions of people around the world clean every day? Why? Because they have goals. They want to thrive. “Cleaning happens before almost anything major, or minor, happens in life. It resets the stagefor life's possibilities. “That insight had been staring us at the face for years, yet we didn’t see it. We didn’t activate it.” 29/07/2019 How Clorox moved beyond data to a new human- centric brand focus | WARC https://www-warc- com.ezproxy.lib.uts.edu.au/content/article/event- reports/how_clorox_moved_beyond_data_to_a_new_humancentr ic_brand_focus/113267 8/10 And the complete transformation of the Clorox brand camewhen it moved beyond product shotsand comparisons to focus on the lives of not just its existing customers, but the people who might come to the brand for the first
- 66. time. Explained Reynolds, “Wedecided to follow them on their journey – to celebrate the fact that, even though people hate cleaning, they love clean. “We set out to tell that storythrough what we thinkis a human-centered and purpose-driven way. And we adopted a new brand purpose globally: ‘Clorox Champions a Clean World Where People Can Thrive.’” Reynolds’ corresponding mission: “We were not going to just think, ‘We're the people that spray things on counters and wipe with a sponge.’ The question was, ‘How do we bring it to life?’ “This worked because it reflects the very best of the brand. It is chock-fullof humanity. None of those folksare actors. We had film crews filming real people for days and weeks and days on end to capture those moments. “But you know what? [This positioning] doesn’t just live in film; it can live in moments outside. We can be more purposeful, we can tell people, ‘Clean matters’ in things like outdoor media.” Case in point: Valentine's Day is soon coming up. “And, empirically,” Reynolds reminded the ANAaudience “a clean environment is
- 67. much more productiveto what we'll call, ‘A successfulrelationship.’” Watch these ads: https://www.ispot.tv/ad/IP72/clorox-disinfecting-wipes-clean- is-the-beginning https://www.ispot.tv/ad/wGg9/clorox-clean-matters https://www.ispot.tv/ad/IP72/clorox-disinfecting-wipes-clean- is-the-beginning https://www.ispot.tv/ad/wGg9/clorox-clean-matters 29/07/2019 How Clorox moved beyond data to a new human- centric brand focus | WARC https://www-warc- com.ezproxy.lib.uts.edu.au/content/article/event- reports/how_clorox_moved_beyond_data_to_a_new_humancentr ic_brand_focus/113267 9/10 About the author Geoffrey Precourt US Editor, WARC [email protected] (mailto:[email protected]) Geoffrey Precourt is WARC's US editor. He reports from key events across North America. Priorto joining WARC in July 2008, Geoffrey held senior editorial roles at titlesincluding Strategy + Business, Point, Smart Business and Fortune, and
- 68. edited the bookCMO Thought Leaders. TOPICS EMOTION (http://www.warc.com.ezproxy.lib.uts.edu.au//search/Emot ion/Emotion) BRAND POSITIONING (http://www.warc.com.ezproxy.lib.uts.edu.au//search/Bran d-positioning/Brand positioning) mailto:[email protected] https://www-warc- com.ezproxy.lib.uts.edu.au/search/Emotion/Emotion https://www-warc-com.ezproxy.lib.uts.edu.au/search/Brand- positioning/Brand%20positioning 29/07/2019 How Clorox moved beyond data to a new human- centric brand focus | WARC https://www-warc- com.ezproxy.lib.uts.edu.au/content/article/event- reports/how_clorox_moved_beyond_data_to_a_new_humancentr ic_brand_focus/113267 10/10 © Copyright WARC 2017 WARC Ltd. Americas: 2233 Wisconsin Ave NW, Suite535, Washington, DC 20007, United States - Tel: +1 202 778 0680 APAC: OUE Downtown 1, #44-03, 6 Shenton Way, 068809, Singapore - Tel: +65 3157 6200 EMEA: 33 Kingsway, London, WC2B 6UF, United Kingdom - Tel: +44 (0)20 7467 8100 www.warc.com(https://www-warc-com.ezproxy.lib.uts.edu.au)
- 69. All rights reservedincluding database rights. This electronic file is for the personal use of authorised usersbased at the subscribing company's office location. It may not be reproduced, posted on intranets, extranets or the internet, e- mailed, archived or shared electronically either within the purchaser's organisation or externally without express written permission from Warc. https://www-warc-com.ezproxy.lib.uts.edu.au/ Unlocking the Power of Integrated Marketing Communications: How Integrated Is Your IMC Program? Kevin Lane Keller Dartmouth College, Hanover, New Hampshire, USA The future of advertising and marketing communications will be marked by an increasingly diverse collection of new digital options added to the traditional media and communication options already available to marketers. By taking advantage of the unique strengths of different communication options, and combining them and sequencing them strategically, marketers have the opportunity to drive sales and build brands in ways never before possible. Doing so, however, will require new concepts, new tools, and new
- 70. thinking. Toward thatgoal, this article describes seven integrated marketing communications (IMC) choice criteria that marketers can use to judge how effectively and efficiently they have assembled their IMC programs. The article also outlines five priority areas for future research to help further guide the successful design and implementation of IMC programs. Marketing communications are one of the most difficult but crucially important components of modern marketing. In recent years this challenge has been made even more compli- cated by the explosion of new digital media options. These options offer new capabilities and hold much promise for mar- keters but also bring great complexity to managerial decision making. To highlight just a few of these new capabilities, mar- keters can choose to do some or all of the following with their brands: To draw attention to their brands, marketers now can reach consumers through mass or targeted ads on Facebook or other social networks; banner or display ads on third-party websites; and paid or organic search ads. To shape brand pref- erence, they can send timely e-mails and use their own web-
- 71. sites to providedetailed content. To drive short-term sales, they can offer promotions and other incentives through tweets, texts, and targeted e-coupons. And to reinforce long-term brand loyalty, they can form online brand communities through their own or third-party social media. With so many different new and traditional communication options available—and so many different ways to combine those options—marketers struggle with how to make good marketing communication decisions. The upside from sound decision mak- ing, however, is enormous. Success stories abound of brands that have benefited from creatively designed, soundly executed com- munication campaigns of all kinds: Got Milk? famously turned around declining sales of milk with clever TV ads reinforced with strategically timed and placed radio, out-of-home (OOH), and point-of-purchase (P-O-P) reminders. More recently, Tough Mudder benefited from a strictly digital focus via targeted ads on Facebook.
- 72. At the sametime, there are scores of examples of misguided and/or poorly implemented communication programs that fail badly in the marketplace. A crucial ingredient for many of the communication success stories is a well-developed integrated marketing communications (IMC) program. Some of the world’s most successful brands have benefited from carefully blending communication options of all types. For example, Nike supports its brands with award-winning advertising, selected event and ath- lete sponsorship, extensive public relations (PR), and a highly interactive digital communication program, among other commu- nication activities. Unquestionably, one of the most important topics concerning the future of advertising is how marketers should design, execute, and evaluate IMC programs. In recognition of the importance of IMC, the advertising industry has taken a number of steps over the past three deca- des to improve its ability to provide the right IMC solutions for its clients. In the early days, Ogilvy talked about “Ogilvy
- 73. Orchestration,” and Youngand Rubicam talked about the “Whole Egg.” Through the years, agencies have acquired spe- cialized boutique firms to enhance their capabilities in PR, direct marketing, promotions, and other areas of communica- tions. Recently, the focus of agency acquisitions has been on different types of digital communication firms to help their cli- ents with web design, social media, online tracking, and so forth. At the same time, internally, agencies have also been Address correspondence to Kevin Lane Keller, Tuck School of Business, 100 Tuck Hall, Dartmouth College, Hanover, NH 03755. E-mail: [email protected] Kevin Lane Keller (PhD, Duke University) is the E.B. Osborn Pro- fessor of Marketing, Tuck School of Business, Dartmouth College. Color versions of one or more of the figures in the article can be found online at http://www.tandfonline.com/ujoa. 286 Journal of Advertising, 45(3), 286–301 Copyright � 2016, American Academy of Advertising ISSN: 0091-3367 print / 1557-7805 online
- 74. DOI: 10.1080/00913367.2016.1204967 http://www.tandfonline.com/ujoa evolving theirorganizational design and processes, introduc- ing planners, redefining the role of agency personnel, and taking many other steps to be more client-, consumer-, and brand-centric. Despite all the progress these agency steps have made toward the goal of more effective and efficient IMC programs, marketers still face a fundamental problem, as demonstrated by the following hypothetical scenario. Assume that the marketers of a well-known brand have carefully conducted a series of research activities to gain a deeper understanding of their target consumer, the market- place, competition, and so on. Assume too that they have crafted a thoughtful, imaginative marketing strategy, uncovering a potentially powerful new brand positioning in the process. The marketers of the brand use this new strat- egy to write a tight communications brief that goes to their full-service communications agency with the mandate to
- 75. develop a thoroughlyintegrated marketing communications program to help the brand achieve the desired new posi- tioning. Their longtime agency works diligently and, after a certain period of time, unveils its proposed IMC program with a dazzling display of video, color, and graphics in a tour de force presentation. Now what? For all the agency’s well-intentioned bravado, how do the marketers of the brand judge the communication program as to whether it actually is well integrated and offers the most effective and efficient solution to their communications challenge? Although there will always be uncertainty as to the fate of any marketing activity—and certainly with marketing com- munications—how do marketers make the right decisions to at least improve their odds and increase their likelihood of market- place success? What marketers need is a set of well-grounded, comprehen- sive criteria by which any proposed IMC program can be sys-
- 76. tematically and thoroughlyjudged. Marketers need to know which questions to ask to make sure their agency or agencies have done their due diligence to truly optimize the design of their IMC program. Unfortunately, such guidance has been sadly lacking (Assael 2011; Keller 2009). In fact, too often the idea of IMC was historically equated with communications reinforcement, in other words, saying the same thing in differ- ent ways. Although such triangulation can be valuable, as many now recognize there is much more to a well-designed IMC program than just communicating the same message in different ways. To provide some clarity and assistance for marketers to help them judge how integrated their marketing communications pro- grams are, this article outlines a comprehensive, cohesive set of seven IMC choice criteria that can be called the “Seven Cs,” given that all seven criteria begin with the letter C. After providing moti- vation and context to the communication challenge and some
- 77. background on themain theme of the approach, each criterion is described and illustrated in some detail. After offering a short summary, the article concludes by highlighting five key priorities for future IMC research. UNDERSTANDING THE COMMUNICATIONS CHALLENGE As noted, the marketing communications environment has unquestionably changed dramatically. Yet, as will be argued, many of the conceptual foundations of marketing communica- tions are still relevant but need to be applied in new or expanded ways. After describing some of these changes in today’s communications environment, two broadly robust con- ceptual models are reviewed that are useful in understanding how consumers process communications and how they make decisions. The New Communications Environment The past decade has seen technological developments that have transformed markets and marketing, as both consumers and firms
- 78. have new capabilitiesthat were unimaginable even a few short years ago. Empowered consumers are meeting equally empow- ered firms as both groups now have access to seemingly limitless information on just about anything or anyone. As a result, consumers can choose to become as engaged as they want with a brand, with their influence ranging from only posting comments and reviews at one end of a continuum to actively guiding the nature and direction of brand activities at the other end. Similarly, firms can choose to become as involved as they wish with consumers, from hosting their own brand website at one end of the continuum to actively interacting with consumers in product and brand development at the other end. Thus, consum- ers and firms can increasingly communicate, relate, and exchange anything, anytime, with anyone. What consumers and firms can do in this new communications
- 79. environment, however, doesnot necessarily equate with what they should or will do. Answering these more predictive and nor- mative questions requires, in part, a thorough understanding of the new communication environment characterized by a broader set of communication options and objectives, as well as a deep appre- ciation of the many differences across consumers in the relation- ships they seek from brands and their propensity to even engage with a brand. We outline these two areas next. Communication options and objectives. Many different marketing communications options exist that can play different roles and have different objectives in the marketing of a brand (Batra and Keller 2016). One popular distinction made by many marketers and academic researchers (e.g., Stephen and Galak 2012) is between communications which appear in paid media (traditional outlets such as TV, print, and direct mail), owned media (company-controlled options such as websites, blogs,
- 80. mobile apps, andsocial media), and earned media (virtual or real- world word of mouth, press coverage, etc.). Given the goal of this article is to help marketers make better IMC decisions, our focus here is on paid and owned media, as those are the areas over which marketers have the most direct control and therefore are responsi- ble for making the most decisions. In no way does this focus diminish the importance of earned media to the success of brand UNLOCKING THE POWER OF INTEGRATED MARKETING COMMUNICATIONS 287 building and sales. On the contrary, earned media considerations can factor into much of the application of the criteria which are developed in this article. Our discussion, however, will largely center on issues and examples related to paid and owned media. To provide a more refined perspective of those communication options directly available to marketers, Table 1 groups a
- 81. number of paid andowned media communication options into eight com- munication platforms, with illustrative examples of each. At the same time, it is also important to recognize there are a number of different roles or objectives that any one of these communication options may be asked to achieve, depending on the brand situation, characteristics of the target market, and so on. Table 2 displays a representative taxonomy of eight key communication objectives. These communication objectives are relevant to brands at different stages of development, as well as for consumers with different levels of understanding and affinity toward a brand, and so on. Consumer heterogeneity. In describing the new communi- cation environment, one mistake frequently made by many mar- keters and pundits is failing to recognize that empowered does not necessarily imply enlightened or engaged. In other words, just because consumers have an opportunity to engage with a brand
- 82. does not meanthey also have the motivation and ability to do so. Moreover, too often digital branding guidelines and principles are stated in terms of “the consumer” as if so much homogeneity existed in the marketplace that consumers could be treated as one group (e.g., “Consumers are in charge now. They are no longer passive but active, and they want a two-way conversation”). The reality is, as much past research has shown, only some of the consumers want to get involved with only some of their brands and, even then, only some of the time. Clearly, a much more nuanced view of consumers is necessary to more completely understand branding in a digital world. Central to that view is a realization that customers can be highly heterogeneous in how they think, feel, and act toward brands. For those consumers will- ing and able to engage with a brand, marketers can leverage digital communications to forge stronger brand ties. For example, mar-
- 83. keters can uncoverindividual consumers’ likes and dislikes and their unmet needs and wants to provide them with a more custom- ized and tailored brand experience. As appealing as such efforts in personalization might sound, however, they may also make it harder to create a strong brand community with shared brand beliefs and attitudes across consumers. Regardless, the fact also remains that many consumers will not necessarily want to engage with the brand. In other words, there are fundamental differences in how con- sumers relate to brands and thus how firms can choose to commu- nicate and develop relationships with consumers. A helpful schematic to understand consumer heterogeneity in this regard is the brand engagement pyramid (see Figure 1). The brand engage- ment pyramid is a way to portray the level of engagement that cus- tomers have with a brand. At the top of the pyramid are those
- 84. customers who wantto be highly engaged with the brand: They talk about it, tweet about it, visit its website, reads its e-mails, and TABLE 1 Eight Major Marketing Communication Platforms Platform Components Advertising � Print and broadcast ads � Packaging, outer � Packaging inserts � Cinema � Brochures and booklets � Posters and leaflets � Directories � Reprints of ads � Billboards � Display signs � Point-of-purchase displays � DVDs Sales promotion � Contests, games, sweepstakes, lotteries
- 85. � Premiums andgifts � Sampling � Fairs and trade shows � Exhibits � Demonstrations � Coupons � Rebates � Low-interest financing � Trade-in allowances � Continuity programs � Tie-ins Events and experiences � Sports � Entertainment festivals � Arts � Causes � Factory tours � Company museums
- 86. � Street activities Publicrelations and publicity � Press kits � Speeches � Seminars � Annual reports � Charitable donations � Publications � Community relations � Lobbying � Identity media � Company magazine Online and social media marketing � Websites � E-mail � Search ads � Display ads � Company blogs � Third-party chatrooms, forums, and blogs
- 87. � Facebook and Twittermessages, YouTube channels and videos Mobile marketing � Text messages � Online marketing � Social media marketing � Apps (Continued on next page) 288 K. L. KELLER so on. At the larger bottom or base of the pyramid, however, are those customers who want to do nothing more with the brand than purchase and consume it; that’s all—in other words, just “choose it and use it.” Unfortunately, too many marketers and marketing pundits overemphasize marketing to customers at the top of the
- 88. pyramid at theexpense of the often large group of customers at the base. The key for marketers is to ensure that they understand, literally, the shape and dynamics of their brand engagement pyra- mid. How many are at the top? How many are at the base? What is the flow of influence across levels of the pyramid? Does any flow trickle down? The answers to these questions will have pro- found implications as to the role of paid, owned, and earned media in the development of an IMC program. Conceptual Foundations With this new communications environment and those two broad sets of communication options and communication objectives in mind, to be able to assemble the optimal IMC programs, marketers and their agencies must first have a clear understanding of how all of these different types of marketing communications work, as well as how consumers and their customers make buying decisions in the marketplace. After
- 89. reviewing some priorcommunications research, we next high- light some basic conceptual foundations with each. Some prior IMC research. Although prior research has not provided explicit guidance on how to answer the specific question of how integrated a marketing communications program is, it has provided many valuable perspectives and insights (for a compre- hensive review, see Schultz, Patti, and Kitchen 2011). A few nota- ble recent contributions are highlighted here. Kliatchko (2008) offers a comprehensive historical review of the IMC concept and critique of the IMC definition and four pillars. Kitchen et al. (2004) provide valuable conceptual con- text as to the progress that has been made organizationally with IMC. Taylor (2005) offers another historical review and agenda from the perspective of international advertising research. Reid (2005) provides return on investment (ROI) evidence as to the IMC process and brand outcomes. Lee and
- 90. Park (2007) considerimportant measurement issues and pro- pose a scale. Similarly, Ratnatunga and Ewing (2005) consider the asset value of IMC and the brand capability value it cre- ates. Zahay et al. (2004) assess how to integrate transactional and relational data. This research, and those of many others, has passionately illuminated much about IMC, even if not addressing the fundamental question of how to judge how well a communications program is integrated. Understanding how consumers process communications. A number of concepts and theories have been proposed to explain how different communication options work with con- sumers. These frameworks address all kinds of distinctions in processing, such as conscious versus unconscious processing, rational versus emotional processing, and so on. These various approaches have different pros and cons in terms of their abil- ity to understand communication effects and guide communi- cation planning. For our purposes, a processing model is needed that has both the breadth to usefully explain all eight
- 91. communication platforms andthe depth to provide insight into different factors affecting communication success or failure for communication options within each platform. One useful type of model in that regard is an information processing model of communication effectiveness. Informa- tion processing models of marketing communications focus on the mental resources and mind-sets a consumer brings to the reception and processing of a communication for a brand, as well as the outcomes those communications can produce in terms of consumer knowledge, attitudes, and behaviors toward a brand. They can be applied to a wide variety of TABLE 1 Eight Major Marketing Communication Platforms (Continued) Platform Components Direct and database marketing � Catalogs � Mailings � Telemarketing
- 92. � Electronic shopping � TVshopping � Fax Personal selling � Sales presentations � Sales meetings � Incentive programs � Samples � Fairs and trade shows TABLE 2 Some Key Communication Objectives Objectives 1 Create awareness and salience 2 Convey detailed information 3 Create imagery and personality 4 Build trust 5 Elicit emotions 6 Inspire action 7 Instill loyalty 8 Connect people
- 93. FIG. 1. Brandengagement pyramid. UNLOCKING THE POWER OF INTEGRATED MARKETING COMMUNICATIONS 289 communication options and can capture many different styles of consumer processing. There are many excellent, detailed summaries of such models (Batra and Ray 1986; MacInnis and Jaworski 1989; MacInnis, Moorman, and Jaworski 1991; Petty, Cacioppo, and Schumann 1983), so only the essential ingredients of an information processing model are highlighted here. Information processing models of communication effec- tiveness begin by considering antecedent factors related to characteristics of the consumer and the content of the commu- nication itself, as well as the surrounding context of message reception and how those factors, in turn, influence consumers’ motivation, ability, and opportunity to process a communica- tion. In other words, three key questions are asked: (1) How much do consumers want to process a communication? (2) Do
- 94. they also havethe right kinds of knowledge to be able to pro- cess it? (3) Will they even have a chance to do so, or are there factors preventing or inhibiting what they can do? The actual processing of a communication is characterized in terms of intensity and direction of processing, in other words, what aspects of the communication draw attention and how many thoughts, feelings, judgments, and other effects are evoked by those aspects. The nature of the processing of the communication, in turn, determines the changes in brand knowledge and mental structures that result. These processing outcomes are critical, as they influence subsequent actions by consumers and how they process later communications, evalu- ate brands, make product or service choices, and so on. To better understand the marketplace implications of the consumer information processing of marketing communica- tions, it is helpful also to have a model of the process by which consumers make their buying decisions, which we turn to next. Understanding how consumers make buying decisions.
- 95. Traditional depictions ofthe consumer buying-decision pro- cess—for example, as with the classic Engel, Blackwell, and Kollat model—viewed consumer buying as a sequential series of five stages, such as (1) need awareness and problem recogni- tion, (2) information search, (3) evaluation of alternatives, (4) purchase, and (5) postpurchase evaluation. Although the basic structure of these classic “hierarchy of effects models” still has some merit, they are not always as applicable in today’s world where consumers make snap buying decisions and collect virtu- ally any type of information anytime and anywhere. The consumer-decision journey today needs to allow for more detailed steps and the more complex, nonlinear paths to purchase that consumers might follow. The steps in such an extended model are displayed in Table 3. Each of these steps is probabilistic, and a successful con- sumer-decision journey for a brand can be derailed by failure at any stage, for example, lack of awareness or appreciation of the brand or an unpleasant product experience at trial. Across
- 96. brands and forany one brand, consumers may backtrack, skip steps, or implicitly or explicitly choose to reject the brand. The dynamics involved in such consumer-decision journeys thus involve multiple stages and the potential to move forward or backward across stages or drop out of the decision process for a brand altogether. Mixing and Matching Communication Options Knowing how consumers process communications and how consumers make decisions provides essential input into com- munication planning. In a basic sense, developing the optimal IMC program requires choosing the best set of communication options and strategically managing the relationships between the chosen options (Batra and Keller 2016; Naik 2007; Duncan and Mulhern 2004). The overriding theme to our discussion is that in assem- bling an IMC program to build brand equity, marketers should “mix and match” communication options—that is, choose a variety of different communication options which may share
- 97. some common meaningand content but which may also offer different, complementary advantages or be designed with other communication options in mind (Naik, Raman, and Winer 2005). By properly mixing and matching communica- tion options, collectively the “whole may be greater than the sum of the parts,” as follows. Mix. In developing the optimal IMC program, marketers should essentially be “media neutral” and evaluate all commu- nication options on the basis of effectiveness (e.g., How many desired effects does a communication create and what commu- nication objectives does it help the brand achieve?) and effi- ciency (e.g., At what cost are those outcomes created and objectives achieved?). Marketers ultimately care only about achieving their communication objectives and moving con- sumers along in their decision journey. Any means of commu- nications that will effectively and efficiently facilitate those goals should therefore be considered. TABLE 3
- 98. Potential Stages inan Expanded Consumer-Decision Journey Stage Description of Stage 1 Recognizes a need or want for a product or service 2 Knows about the brand 3 Actively considers the brand 4 Searches and learns more about the brand 5 Evaluates the brand and forms favorable attitudes 6 Arrives at a positive value judgment and willingness to pay for the brand 7 Develops concrete plans to try the brand 8 Consumes the brand 9 Is satisfied with the brand experience 10 Becomes loyal repeat buyer of the brand 11 Is engaged and interacts with the brand 12 Advocates for the brand actively 290 K. L. KELLER For example, whether a consumer has strong, favorable,
- 99. and unique brandassociations for Mountain Dew to “intense,” “active,” or “high energy” because of a TV ad that shows young people who “Do the Dew” to fuel their interests or pas- sions, or because Mountain Dew sponsors its own action sports Dew Tour events, the impact in terms of Moutain Dew’s brand equity should be identical unless the associations created are materially different in some way. On that basis, marketers should consider all possible communication options in terms of effectiveness and efficiency to achieve communication objectives. In many cases, however, different communication options are likely to create inherently different effects. For example, research has shown that “direct experience” communications (e.g., event- created ones) can create potentially stronger associations than can mass-mediated communications (e.g., through TV ads) (Smith and Swinyard 1983). TV advertising, on the other hand, may be better able to show certain product features or express brand-
- 100. cre- ated emotions. Similarly,social media may be stronger at eliciting brand engagement than TV advertising, but TV ads may be designed more easily to create broader brand awareness across tar- get market consumers. Mixing thus involves choosing multiple communication options on the basis of their different capabilities and likely communication effects on sales and brand equity. Table 4 shows an illustrative summary of some possible distin- guishing characteristics of the eight major communication platforms. Match. By virtue of using multiple communication options, the opportunity for “interaction effects” exist beyond the direct “main effects” derived from each individual communication option. Any one communication option can have a number of dif- ferent relationships with any other communication options which are also being used; it can reinforce the meaning conveyed by
- 101. other communication options,complement that meaning, or enhance their communication effects in various ways. Matching thus requires strategically choosing and designing communication options with other communication options in mind. Consider Mountain Dew again. Its marketers might choose to both run TV ads and sponsor active sports events to reinforce their “high-energy” message. But then they might take an attention- get- ting scene from the TV ad and place it in youth-oriented maga- zines and online banner ads to drive people to their website to learn more about the brand. They could also maintain a strong social media presence to engage their loyal buyers independent of their “high-energy” message and TV ads; and they might even engage in extensive PR activities to convert skeptics concerned about health and product ingredients. Many different firms are embracing this broad-based approach to developing their communications program. When Ocean
- 102. Spray decided to reintroducethe cranberry as the “surprisingly versatile little fruit that supplies modern-day benefits,” they used many dif- ferent facets of marketing communications to reach consumers in a variety of settings. The “Straight from the Bog” campaign focused on two key brand benefits: that Ocean Spray products tasted good and were good for you. PR played a crucial role. Mini- ature bogs were brought to Manhattan and featured on an NBC Today morning segment, and a “Bogs across America Tour” brought the experience to Los Angeles and Chicago. Television and print advertising featured two growers (depicted by actors) standing waist-deep in a bog and talking, often humorously, about what they did. The campaign also included a website, in-store dis- plays, and events for consumers and for members of the growers’ cooperative itself.
- 103. The reality ofmodern marketing communications is that there is an enormous and diverse variety of touchpoints and communication options to help marketers create mem- orable, enjoyable, and persuasive experiences with consum- ers. One potentially insightful metaphor for IMC is painting. Marketers are trying, in effect, to “paint a picture” of their brands in the minds and hearts of consum- ers. In doing so, they want the richest, most vivid, and TABLE 4 Some Defining Characteristics of Eight Major Communication Platforms Platform Defining Characteristics Advertising � Pervasive � Amplified expressiveness � Control Sales promotion � Ability to be attention getting � Incentive � Invitation Events and experiences � Relevant � Engaging � Implicit
- 104. Public relations and publicity �High credibility � Ability to find hard-to-reach buyers � Dramatization Online and social media � Rich marketing � Interactive � Up to date Mobile marketing � Timely � Influential � Pervasive Direct and database � Personal marketing � Proactive � Complementary Personal selling � Customized � Relationship oriented � Results oriented UNLOCKING THE POWER OF INTEGRATED MARKETING COMMUNICATIONS 291 most beautiful painting to represent their brand. Accord-
- 105. ingly, they wouldnot use only one color or one paintbrush but rather an entire palette of colors and a wide range of brushes. Similarly, marketers mix and match to skillfully combine and blend a broad range of marketing communi- cations. We turn next to how that can be done. TABLE 5 Definitions and a Representative Set of Questions to Evaluate the IMC Choice Criteria Criteria Definition Representative Questions Coverage Proportion of the target market reached by each communication option, as well as how much overlap exists among communication options. � How many target market consumers are reached by the communication options? � How much overlap exists among communication options across target market consumers? Cost The financial efficiency associated with the communication options and program. � How much is the total financial cost of communication options?
- 106. � What isthe relevant cost per thousand and other efficiency metrics? � Are there any relevant nonfinancial costs? Contribution The inherent ability of a communication option to create the desired communication effects and achieve the desired communication objectives, independent of prior or subsequent exposure to any other communication options for the brand. � What are the likely effects of the communication options and how they will impact communication objectives? � What is the likely impact of the communication options on sales? � What is the likely impact of the communication options on brand equity? Commonality The extent to which a communication option is designed to create communication effects and achieve communication objectives that are also the focus of other communication options. � How much overlap in meaning exists among communication options?
- 107. � How muchoverlap in creative strategy exists among communication options? Complementarity The extent to which a communication option addresses communication effects and objectives not addressed by other communication options. � How much of the consumer-decision journey is covered by the communication options? � How many of the communication objectives are covered by the communication options? � How much of the desired positioning of the brand is covered by the communication options? Cross-effects The extent to which communication options are designed to explicitly work together such that interaction or synergy occurs and enhanced communication effects emerge as the result of exposure by consumers to both options. � How many synergies exist among communication options? � How does the coordination of the meaning of communication options appropriately leverage brand knowledge at different stages of the
- 108. consumer-decision journey? � Howdoes the coordination of the creative strategies of communication options improve the attention to and processing of communication options? Conformability The extent to which communication works across target market consumers regardless of their communications history or other characteristics. � How well do the communication options work across consumers with different communication histories? � How well do the communication options work across different types of target market consumers? 292 K. L. KELLER DEVELOPING THE OPTIMAL IMC PROGRAM In assessing the collective impact of an IMC program, the mar- keter’s overriding goal is thus to create the most effective and effi- cient communication program possible to maximize short-term sales and long-term brand equity by mixing and matching commu-
- 109. nication options (Keller2007; Madhavaram, Badrinarayanan, and McDonald 2005; Reid, Luxton, and Mavondo 2005). Toward that goal, Table 5 provides definitions of seven relevant IMC choice criteria. Before reviewing each of the IMC choice criteria in detail, we first provide a brief overview of how they fit in and relate to one another. The first two criteria, coverage and cost, are fundamental mar- keting criteria related to the efficiency of an IMC program in terms of reaching as many members of the target audience as possible at the lowest possible cost. The other five criteria focus more on communication effectiveness and the ability of the communica- tion program to achieve the desired communication objectives to drive sales and/or improve brand equity. The third criterion, con- tribution, is concerned with the singular qualities of communica-
- 110. tions and howthey work in isolation. The remaining four criteria deal with different ways that com- munication options can potentially relate to one another. Com- monality is when a communication option is designed to create communication effects and achieve communication objectives that are also the focus of other communication options. Comple- mentarity, on the other hand, is when a communication option addresses communication effects and objectives not addressed by other communication options. Cross-effects are when communica- tion options are designed to explicitly work together such that interaction or synergy occurs and enhanced communication effects emerge as the result of exposure by consumers to both communication options. The seventh and final criterion, conform- ability, occurs when a communication option works well even if consumers have not been exposed to a communication option designed to enhance its effects or even if consumers were not even
- 111. originally intended tosee, hear, or experience it. We next define and highlight some key considerations for each of the seven IMC choice criteria. Coverage Coverage captures the proportion of the target market reached by each communication option, as well as how much overlap exists among communication options. In other words, to what extent do different communication options reach the designated target market, and the same or different consumers making up that market? If there is little audience overlap, communication effectiveness is largely driven by contribution and complementarity. With little audience overlap, the communications program is really not integrated; it is more a case of multiple market- ing communications. Communication program effects would be very much an additive process, and program effectiveness would depend on whether the right communications were being sent to the right audience
- 112. members and havingthe right effects, independent of any- thing else. If overlap exists with an audience, however, many more considerations come into play. Then, the relationship of the overlapping communication options becomes critical in terms of commonality, complementarity, and cross-effects. The sequencing of communications becomes critical too, and the conformability of any communication option to the particular spot(s) in the sequences where it is seen. Understanding the breadth and depth of coverage is thus critical to assessing the likely success of a proposed IMC pro- gram. How many people are reached with communications for the brand, how often, and in how many different ways? Cost Marketers must evaluate marketing communications on all of the other six criteria against their cost to arrive at the most effec- tive and most efficient communications program. Quantitative analysis is essential here in terms of estimating the various
- 113. response functions andelasticities that may characterize different communication options employed by marketers. All kinds of tech- niques can be employed as part of this analysis, for example, from experimental A-B comparisons with test-control panels or markets with different levels of communication to detailed multivariate modeling of large databases. Importantly, the growth of big data allows market researchers to gain access to many potentially useful new data resources never before available. To properly estimate the response functions to the exposure levels of the different options of an integrated mar- keting communication program, however, market researchers must adopt a fully dynamic, longitudinal view of when and how cross-effects occur across different media and the temporal sequences (downstream effects) involved (Smith, Gopalakrishna,
- 114. and Chatterjee 2006;Wiesel, Pauwels, and Arts 2011). Although response elasticities will depend on many particulars of the communications, consumers, and setting involved, some useful benchmarks have emerged through the years. For example, a review of academic research found that advertising elasticities were estimated to be higher for new (0.3) than for established products (0.1) (Allenby and Hanssens 2005; see also Van Heerde et al. 2013; and Sethuraman, Tellis, and Briesch 2011). Contribution Contribution is the inherent ability of a communication option to create the desired response and communication effects from consumers and achieve the desired communication objectives in the absence of any prior or subsequent exposure to any other com- munication option. In other words, contribution describes the “main effects” of a marketing communication option in terms of how it affects consumers’ processing of a communication and the
- 115. outcomes which result. UNLOCKINGTHE POWER OF INTEGRATED MARKETING COMMUNICATIONS 293 As noted, marketing communications can play many differ- ent roles, like building awareness, enhancing image, eliciting responses, and inducing sales, and the contribution of any mar- keting communication option will depend on how well it plays the particular role(s) it has been assigned. Much academic research has focused on providing insights into the perfor- mance of individual types of communications, as summarized in textbooks on communication topics such as advertising and promotions (Belch and Belch 2015; O’Guinn et al. 2015), database marketing (Blattberg, Kim, and Neslin 2008), social media (Moe and Schweidel 2014), and personal selling (Man- ning, Ahearne, and Reece 2015). Contribution needs to consider a number of different factors. The content of the communication option and the context in which
- 116. it is seen,heard, or experienced, for example, are both critically important. The information processing model of communication effectiveness, described previously, can be helpful in identifying and interpreting the relevant motivation, ability, and opportunity factors that affect how consumers process any proposed commu- nication option. Similarly, the taxonomy of different types of com- munication objectives provides additional benchmarks to assess communication effects that may emerge at different stages of the consumer-decision journey. To assess the contribution of any communication option, it is important to understand the totality of communication effects it creates and all the progress and accom- plishments it achieves against the different communication objectives. Commonality Regardless of which individual communication options mar-
- 117. keters might consideron the basis of their likely ability to contrib- ute, they will also want to consider how to coordinate the entire marketing communication program such that some communica- tion options share content and create similar effects. Commonality is the extent to which information conveyed by different commu- nication options shares meaning or elicits similar effects across communication options. Although we outline a number of other important IMC choice criteria, commonality clearly plays an espe- cially important role in virtually any well-designed IMC program (Moriarty, Mitchell, and Wells 2015). There are many reasons to focus different communication options on the most important and differentiating benefits of a brand. In general, information that is consistent in meaning is more easily learned and recalled than unrelated information— though the unexpectedness of inconsistent information some- times can lead to more elaborate processing and stronger asso-
- 118. ciations than consistentinformation. Nevertheless, with inconsistent associations and a diffuse brand image, consum- ers may overlook some associations or, because they are con- fused about the meaning of the brand, form less strong and/or less favorable new associations. Therefore, in the long run, marketers often need to design dif- ferent communication options and coordinate their message appeals so that they work effectively together to reinforce impor- tant, differentiating brand benefits and forge a consistent and cohe- sive brand image. Commonality and consistency can also be advantageous in the nonmessage creative content or executional information of a communication (McGrath 2005). Ensuring a cre- ative device or visual theme is reinforced across comunication options can attract attention and help consumers process and store information about a brand correctly in memory. Some communication situations seem more conducive to
- 119. commonality than others.For example, the more abstract the association to be created or reinforced by marketing communi- cations, the more likely it would seem that it could be effec- tively reinforced in different ways across heterogeneous communication options (Heckler and Childers 1992; Houston, Childers, and Heckler 1987; Srull and Wyer 1989). For exam- ple, if marketers would like their brand to be seen as “contemporary,” which is a fairly abstract attribute, then there may be a number of different communication options, espe- cially digitally, to make the brand seem modern and relevant. On the other hand, if the desired association for the brand is a concrete attribute, for example, “rich chocolate taste,” then it may be difficult to convey it in communication options that do not permit explicit product statements, such as would be the case with sponsorship or perhaps even PR. Complementarity There are a number of reasons why different communica- tion options in an IMC program might emphasize different
- 120. associations and communicationeffects. Most importantly, brands are rarely singular entities. Although commonality can reinforce a key benefit association or elicit similar effects for a brand, to effectively communicate the full brand positioning it is often necessary for the communications program to convey multiple messages and create multiple effects. Moreover, dif- ferent consumers at different stages of the consumer journey may also require different messages and effects. As many advertisers and other communication specialists have learned, however, often the hard way, there is only so much that can be said or conveyed in any one communication. In fact, less is often more, especially when it comes to mass media. For these and many other reasons, marketers usually need to employ different marketing communication options in dif- ferent ways to achieve their overall communication objectives. Complementarity describes the extent to which different asso- ciations and effects are emphasized across communication options. The reality is that in many circumstances, consumers
- 121. consider multiple factorsand multiple brands in making their choices. Strong brands thus have to be richer and more com- plex than just “one big idea.” Marketers must convey informa- tion, elicit emotions, and create other effects to impact decision making for different types of consumers at different stages of their decision journey or day-to-day living. The ideal IMC program would ensure some communication options 294 K. L. KELLER would be chosen that are mutually compensatory and reinforc- ing to create the desired consumer knowledge structures as reflected by brand positioning. Complementarity is critical to developing a rich, cohesive brand image. Marketers can most effectively establish different brand associ- ations by capitalizing on those marketing communication options best suited to eliciting a particular consumer response or establish- ing a particular type of brand association. For example, some
- 122. media, like samplingand other forms of sales promotion, are gen- erally better at generating product trial than engendering long- term loyalty. Social media and blogs, communities, and social net- works may be especially adept at cultivating loyalty. Sponsorship of a cause may improve perceptions of a brand’s trust and credibil- ity, but TV and print advertising may be needed to communicate its performance advantages, and so on. Cross-Effects Different types of communications used in tandem can be made even more powerful when they create synergistic cross- effects through proper coordination and sequencing. The basic idea behind cross-effects is to strategically boost communica- tion effects with consumers as a result of exposure to one com- munication option that, in addition to any direct effect, also creates enhanced communication effects for different commu- nication options after their subsequent exposure. Importantly,
- 123. these enhanced communicationeffects would be greater, in some sense, than the additive effects of the two options if they had been optimized completely independent of each other. In other words, the coordinated communication options create main effects and interaction effects such that “1 C 1 D 3”—or perhaps even more. Cross effects are thus effects that would not have necessar- ily resulted—or at least not as efficiently—without the explicit design and coordinated planning of two or more communica- tion options. Although all kinds of cross-effects have been demonstrated in the literature, cross-effects generally take two basic forms. Meaning-based cross-effects attempt to coordi- nate the content of communication options so that the brand knowledge or communication effect created or emphasized by one communication option increases the likelihood that another communication option achieves its communication objectives as consumers move along their decision journey. Execution-based cross-effects attempt to coordinate the crea-
- 124. tive strategy ofcommunication options to ensure executional consistency such that greater attention or processing results with subsequent communication exposure. In other words, meaning-based cross-effects attempt to estab- lish certain brand associations in memory beneficial to the subse- quent processing of a different communication option, whereas execution-based cross-effects attempt to establish certain non- brand-related, creative strategy associations in memory to facili- tate the subsequent processing of a different communication option, as follows. Meaning-based cross-effects. As an example of meaning- based cross-effects, trial-generating promotions and online solicitations have been shown to be more effective when com- bined with persuasive advertising (Neslin 2002). Similarly, the awareness and attitudes created by advertising campaigns have been shown to improve the success of more direct sales pitches. Increasingly, digital interactions will play an impor-
- 125. tant role increating or benefiting from cross-effects. For exam- ple, advertising can convey the positioning of a brand and improve the response resulting from subsequent consumer exposure to online display advertising or search-engine mar- keting that sends a stronger call to action (Chang and Thorson 2004; Pfeiffer and Zinnbauer 2010). Execution-based cross-effects. Execution-based cross- effects depend on the level of creative consistency across com- munication options. Coordinated executional information can serve as a retrieval cue in memory to other prior-established communication effects (Keller 1987, 1991). In other words, if a symbol is established in one communication option, like a feather in a TV ad for a deodorant to convey mildness and soft- ness, then marketers can use it in other online or offline com- munications to help trigger the knowledge, thoughts, feelings, and images stored in memory from exposure to those other previous communications. For example, print and radio reinforcement of TV ads is when
- 126. the video andaudio components of a TV ad serve as the basis for print and radio ads, respectively. Print and radio reinforcement can be an effective means to leverage existing communication effects from TV ad exposure and more strongly link them to the brand (Edell and Keller 1989, 1999). Moreover, cueing a TV ad with an explicitly linked radio or print ad can create similar or even enhanced processing outcomes that can substitute for addi- tional TV ad exposures. Although these cross-effects have been demonstrated with TV versus radio and print, the concept would seem to be apply equally well to billboards, banner ads, and other digital communications. Conformability Finally, even if communication options are designed to cre- ate cross-effects with one another, it may be the case that less than perfect targeting and overlap exists in the exposure to the communication options involved. With any IMC program, consumers will encounter communications in different orders
- 127. or sequences, ifat all. For whatever reason, certain target con- sumers may not be exposed to one of the other intended com- munication options or be exposed to a communication option not expressly intended for them. Thus, any particular message will be new to some consum- ers but not to others, and may be preceded or followed for any one consumer by a completely different set of communications from the brand. Conformability refers to communication ver- satility and the extent to which a marketing communication option is robust and effective for different target market UNLOCKING THE POWER OF INTEGRATED MARKETING COMMUNICATIONS 295 consumers with different sequences of communication expo- sure. How well does the communication conform to the differ- ent characteristics and communication needs and histories of different target market consumers? Specifically, there are two types of conformability: communi- cation conformability and consumer conformability. The reality
- 128. of any IMC programis that when target market consumers are exposed to a particular marketing communication, some consum- ers will have already been exposed to other marketing communi- cations for the brand, and others will not. Those target market consumers may also differ in terms of what stage they are on in their decision journey or other brand-related characteristics. We consider a marketing communication option conformable or ver- satile when it achieves its desired communication effects and objectives across target market consumers regardless of the partic- ular nature of the consumers involved and their past and future communication sequences, as described next. Communication Conformability. The ability of a marketing communication to work at two levels—effectively communicat- ing to consumers who have or have not seen and will or will not see other communications for the brand—is critically important for communication conformability. Not surprisingly, some prior
- 129. research has alreadydemonstrated that media effects can vary depending on the sequence or order in which they are seen; for example, Kim, Yoon, and Lee (2010) experimentally showed that the interactive effects of advertising with positive or negative pub- licity varied depending on which was seen first. Communication conformability is especially important when an IMC program is designed with coordinated communication options and cross-effects in mind. Consider the Edell and Keller (1989, 1999) studies, which showed how visually linked print ads and aurally linked radio ads could reinforce TV ads. As it turned out, the studies also showed that when the linked print and radio ads were seen or heard prior to the accompanying TV ad, they actually functioned as teasers and increased consumer motivation to process the more complete TV ad consisting of both audio and video components.
- 130. Another crucial questionof communications conformability, however, is how these print and radio ads would have worked for those consumers who did not have any prior or subsequent expo- sure to the coordinated TV ad. How well would the radio and print ads create communication effects and achieve communication objectives as compared to nonlinked radio and print ads that might have been created independently of the TV ad? Consumer Conformability. Besides this communication conformability, we can also judge a communication option in terms of broader consumer conformability, that is, how well it informs or persuades target market consumers who vary on dimensions other than their communication history. A communi- cation option may be designed with target market consumers at a certain stage in their decision journey or level of brand knowledge in mind. Yet it may also reach other target market consumers
- 131. with- out those othersame characteristics. What kinds of communica- tion effects can it successfully engender with those consumers? In general, the more diverse target market consumers are, the more there will be a need to assemble different communi- cation options in the IMC program with different objectives in mind to ensure necessary complementarity. There are times, however, where budget considerations may preclude an exten- sive IMC program, and marketers may have to focus on just a few communication options to try to accomplish multiple objectives with multiple consumers. In such cases, there would seem to be two main ways of trying to achieve consumer con- formability and effective communications: 1. Multiple information provision strategy. Provide different information within a communication option to appeal to the needs of different types of consumers. An important issue here is how information designed to appeal to one tar- get market of consumers will be processed by other con-
- 132. sumers and targetmarkets. As noted previously, less is often more, and issues of information overload, confusion, and annoyance may come into play if communications become burdened with a great deal of detail. 2. Broad information provision strategy. Provide information that is rich or ambiguous enough to work regardless of prior consumer knowledge. The important issue here is how potent or persuasive marketers can make that information. If they attempt to appeal to the lowest common denomina- tor, the information may lack precision and sufficient detail to have meaningful impact on any consumers. Target mar- ket consumers with disparate backgrounds will have to find information in the communication sufficiently relevant to satisfy their goals, given their product or brand knowledge or communications history. Both options clearly have drawbacks but, if skillfully employed, may reap dividends. Note that digital strategies can offer much communications flexibility, which can enhance
- 133. consumer conformability. Forexample, a website can cater to consumers who know a great deal about the brand and want to engage deeply through a dedicated blog or community page, as well as to consumers who know little about the brand and are there to learn just the basics. As another example, commu- nications directed at primarily creating brand awareness and salience, like sponsorship, may have greater consumer con- formability by virtue of their simplicity. USING THE IMC CHOICE CRITERIA The choice criteria can provide some greatly needed guidance for IMC. Satisfying the seven criteria increases the likelihood that the IMC program is sufficiently comprehensive, cohesive, and impactful. The IMC choice criteria should be kept in mind and applied throughout the entire development process of the IMC program to guide the selection, design, and implementation of the different communication options involved. Two key steps in applying those choice criteria to IMC programs are evaluating
- 134. 296 K. L.KELLER communication options and programs and establishing priorities and trade-offs among the IMC choice criteria, as discussed next. Evaluating Communication Options and Programs Different communication options have different strengths and weaknesses and raise different issues. We can judge marketing communication options, or the IMC program as a whole, accord- ing to the response and communication effects they can create and thus how they rate on the IMC choice criteria. In part by applying the information processing model of communication effects, Batra and Keller (2016) provide a detailed analysis of possible processing outcomes from differ- ent communication platforms or options and their relative strength or value at different stages of the consumer-decision journey. These and other sources noted here and elsewhere can provide input into the contribution criteria assessment of communication options as well as for other criteria too.
- 135. There are twomain ways to apply the IMC choice criteria: The bottom-up approach evaluates each individual communi- cation option making up the IMC program; the top-down approach evaluates the proposed IMC program as a whole and considers how well the IMC program collectively satisfies the IMC choice criteria. The top-down approach is ultimately what marketers care about, as it addresses the fundamental question of what communication program to put forth. With its focus on individual communication options, however, the bottom-up approach can offer valuable insights to inform the top-down approach and is a natural first step in the process. To guide the bottom-up application of the IMC choice crite- ria, Table 5 also contains a comprehensive set of questions that can be asked of the IMC program as a whole, as well as adapted to evaluate any communication option making up a proposed IMC program. These questions could also easily be put into a scorecard-type format. Regardless as to whether it is done qualitatively or quantitatively, the total IMC program
- 136. and each communicationoption in the proposed IMC program could be judged according to these criteria. With a bottom-up application, marketers can begin by con- sidering the first three criteria and how any individual commu- nication option under consideration facilitates coverage, cost, and contribution by itself. They then can consider the possible upside—or even downside—to coordinating a communication with other communication options, especially in terms of achieving otherwise difficult-to-achieve objectives. Establishing Priorities and Trade-Offs The IMC program a marketer adopts, after profiling the var- ious options according to the IMC choice criteria, will depend in part on how he or she ranks the choice criteria. For example, if the brand has a limited communication budget, contribution may be more important, as fewer options are available to employ. If the brand has a bigger budget, however, then commonality, complementarity, and cross-effects can receive greater priority.
- 137. Because the IMCchoice criteria themselves are related, the marketer must also make trade-offs. The objectives of the mar- keting communication program, and whether they are short run or long run, will set priorities, along with a host of factors beyond the scope of this article. To provide a sense of some of the issues involved, however, we briefly identify and discuss five possible trade-offs and relationships with the IMC choice criteria that can impact how IMC programs may be designed. � Commonality and conformability will often be positively related. Communication options vary in their breadth and depth of audience coverage, as well as in terms of common- ality and conformability, according to the number of modal- ities they employ: the more modalities available with a communication option, the greater its potential commonal- ity and conformability. � Commonality and complementarity will often be inversely related. The more that different communication options emphasize the same brand attribute or benefit, all else being equal, the less they can effectively emphasize other attrib-
- 138. utes and benefits.For brands in early stages of brand devel- opment, it may be important to be more singularly focused and emphasize a particularly desirable (to consumers) and differentiating (from competitors) brand benefit. As the brand becomes more established, a richer brand image may be desired, and complementarity can play a bigger role with a more diverse set of brand communications. � Conformability and complementarity will also often be inversely related. The more that a communication program can design communications to appeal to many different types or groups of consumers, the less necessary it will be that multiple communications will have to be created that reflect the differences in consumers and appeals to a particu- lar group. These differences may involve cultural or racial groups (e.g., African American or Hispanic segments) or differences more directly related to the brand itself (e.g., brand loyals versus brand switchers). � Contribution, complementarity, and cost do not share an obvious relationship. There are not necessarily any inherent differences across communication platforms for
- 139. contribution and complementarity,because any commu- nication option, if properly designed, can play a critical and unique role in achieving those communication objec- tives. Similarly, all marketing communications can appear expensive, although some differences in cost per thousand can prevail. � Commonality and conformability do not share an obvious relationship. As noted previously, it may be possible to develop a sufficiently abstract message, like “Brand X is contemporary,” to effectively reinforce the brand across multiple communication options including advertising, digi- tal, sponsorship, and promotions. UNLOCKING THE POWER OF INTEGRATED MARKETING COMMUNICATIONS 297 CONCLUSION Summary Today’s new communications environment has vastly expanded the capabilities of both consumers and firms. In particu-
- 140. lar, the emergenceof a wide array of different types of digital com- munication options has dramatically improved marketers’ communication capabilities. In addition to advertising, promotion, and other traditional forms of marketing communications, market- ers can now employ websites with detailed brand and product information and reviews and recommendations, send e-mails and text messages, place banner and rich media ads, and engage in paid search, among the many new digital communication options. Unleashing the potential power of these new and traditional com- munication options to drive sales in the short run and grow brand equity in the long run—given consumers’ own new capabilities— will become one of the most important advertising and marketing priorities for virtually all firms in the coming years. IMC programs have been an important part of the market-
- 141. ing landscape fora long time. Although they have been the subject of productive research attention through the years, much still remains to be learned about their design and deliv- ery, especially with the availability of so many new digital communication options. To be able to effectively manage the marketing communications function in this modern communi- cation environment, marketers must first understand how con- sumers make brand and product decisions and the different effects that various communications might have on consumers. Based on this understanding, marketers must then choose and design a set of communication options in an IMC program that collectively will have the greatest likelihood of achieving the communication goals for the brand. With this management imperative in mind, some concep- tual guidance was offered to help marketers assess the effec- tiveness and efficiency of IMC programs and address a fundamental question: How well integrated is your marketing communications program? In a broad sense, it was argued that
- 142. marketers must mixand match communication options so the whole is greater than the sum of the parts. After defining some conceptual foundations as to how consumers process commu- nications and how they go about making decisions, seven cri- teria were outlined as being critical to a successful IMC program. The seven IMC choice criteria are coverage, cost, contribu- tion, commonality, complementarity, cross-effects, and con- formability. These “Seven Cs” choice criteria take into account many different aspects of a communication program, for example, how communication options work in isolation, as well as how they work in tandem and interact with one another to create heightened communication effects. The criteria also consider which consumers are reached by different communi- cation options and in what order they receive communications, as well as the costs involved. The seven IMC choice criteria force marketers to consider how integrated their IMC programs really are in a very concrete way and from many dif-
- 143. ferent angles. Future ResearchPriorities Given the pressing management imperative with IMC and the rapidly changing communications landscape that market- ers face, we conclude our analysis by considering some future research priorities. To help marketers optimally design and evaluate IMC programs, a number of areas greatly need addi- tional research. In this concluding section, we highlight five key areas. In doing so, we relate these research priorities, in part, back to the seven IMC choice criteria to show how these criteria can be sharpened. Develop more precise models of communications targeting. To successfully launch IMC programs, marketers need a keen understanding of how consumers today seek information, con- sume media, make product and brand decisions, and, more gener- ally, live their lives. Research is needed that helps marketers gain insights to formulate richer depictions of the consumer-decision
- 144. journey. Research isespecially needed to help marketers develop much more precise and timely targeting with communications. The challenge is to ensure that marketers have all the tools neces- sary to ensure that the right consumers see, hear, or experience the right communications in the right way and at the right time and place. A more refined model of the consumer-decision journey can help provide a more nuanced view of how different mar- keting communication options might impact different stages of the consumer-decision process. Media planners need to develop richer profiles of the target audience reached in this regard. In particular, with increasingly sensitive second-by- second media-usage data, marketers now have the capability to develop more microlevel, dynamic segmentation and target- ing to reach different consumers at different stages. Although digital communications allows for more precise targeting behaviorally, it is also important to understand and
- 145. incorporate consumers’ propensityto engage with brands and communications. As noted, although consumers may have the opportunity to engage more with brands online, the reality is only some consumers will want to get involved with only some of their brands, and even then only some of the time. At a macro-level, research is needed as to how marketers can assess the “shape” of their brand engagement pyramid and the flows of information and equity among and between consum- ers within it. At a more micro-level, there is a need for research to help marketers better identify consumer propensity to engage with a brand. Research is also needed to help mar- keters design IMC program that can take into account the diversity of different brand-related characteristics and ensure communication conformability across consumers. More broadly, actually deciding on which customers to tar- get—and where, when, and how— requires new thinking and 298 K. L. KELLER
- 146. models. Traditional benefitand needs-based segmentation schemes have much inherent appeal, but future segmentation plans will need to be much more multidimensional to develop communication programs that are relevant, motivating, and timely across individual consumers. Insights into better targeting with consumers in these differ- ent ways can inform all seven IMC choice criteria. In particu- lar, better targeting makes it easier to understand which communications are likely to reach which consumers and in which order or sequence, which is especially useful in terms of understanding coverage, cost, and conformability. Refine guidelines for specific communication options. An enormous body of research has studied all facets of mar- keting communications through the years. These research streams can be expected to continue to uncover valuable new insights. The digital area especially is receiving a tremendous amount of research attention as marketers seek a better understanding of how options such as social media, search,
- 147. and website reviewswork. The mobile area is also seeing concerted research to see how it differs—or not—from what we already have learned about digital and online communica- tion options. In terms of designing and implementing more effective and efficient IMC programs, it would be especially helpful for future research to profile and contrast the relative strengths and weaknesses of different communication platforms and options in depth. More refined insights into and guidelines for specific communication options will provide valuable input into how marketers can satisfy the contribution and comple- mentarity IMC criteria and assemble different communication programs to maximize their main effects. To help structure such comparisons, it may be helpful to use taxonomies such as the eight possible communication objec- tives or the different stages in the consumer-decision journey. A more detailed version of Table 4 that outlines defining char- acteristics of the eight major communication platforms—and
- 148. individual communication optionswithin those—may be very useful in that regard. Finally, much brand building occurs through earned media too, and understanding how marketer-controlled communications can complement, reinforce, or initiate consumer-controlled and other noncommercial forms of communication is critical. Even more broadly, any brand contact can change consumer knowledge for a brand and drive its sales and equity. Developing taxonomies in all these areas to provide structure and insight could be extremely beneficial for marketers. Refine guidelines for coordinating communication options. The real “magic” behind IMC programs is the interactions or synergistic effects that can potentially be created through the skillful assembly of different communication options. These enhanced effects ensure that IMC programs are truly integrated and not just programs using multiple marketing communication
- 149. options and whosecumulative effects are nothing more than additive. More detailed insights and guidelines will be particularly help- ful to help marketers know how they can create both meaning cross-effects and execution cross-effects. Specifically, coordina- tion of communication options involves a number of issues about both the content and timing of different communication options. Of particular importance is the interplay among digital communi- cation options as well as between digital and traditional communi- cation options. Research must provide more detailed insights into how these cross-effects emerge. The consumer information proc- essing and consumer-decision-journey models may be helpful here too in terms of understanding what kind of information needs to be conveyed at different stages. A number of important questions can be raised about how mar-
- 150. keters can benefitfrom different types of cross-effects in their IMC programs. Are there are risks to coordinating creative strate- gies and executional information across communication options? Can coordinated creative put too much emphasis on creative ele- ments and distract from the intended message and communication effects? How does coordinated creative work online where crea- tive expression may be limited with certain communication options (e.g., search)? Develop more quantitative communication models for attri- bution and ROI analysis. Understanding how to assess ROI of any marketing activity has, not surprisingly, been a research priority for marketers for decades, especially in terms of expenditures on advertising and other marketing communica- tions. Developing models that help marketers and marketing researchers better account for the short-term and long-term effects of any communication option on sales and brand equity
- 151. is critical. Amore complete understanding of ROI and the attribution of certain brand states to communications will facilitate the application of the cost criterion but will also affect many of the other criteria. The big data era offers much promise toward this improved understanding as new data sources emerge to provide a much more detailed account of all facets of consumer behavior and brand performance, especially online. The real challenge, however, will be to ensure that the right data sources are uncovered and used and the right models are employed to reflect how communications work (or not) with consumers today. Any well-grounded IMC attribution or ROI analysis must use multiple dependent variables, capturing consumer needs and communication objectives at different stages of the con- sumer-decision journey. These analyses must also take a longi- tudinal perspective and capture interaction effects, differential carryover and decay rates, lags and delays, and so on. Future
- 152. research will needto both develop both state-of-the-art models that can be used by marketing researchers to estimate ROI, as well as benchmarks of likely effects that can guide managerial decision making in the absence of any primary data collection and analysis. Refine existing criteria and identify new criteria for improving IMC programs. The IMC choice criteria cover seven key UNLOCKING THE POWER OF INTEGRATED MARKETING COMMUNICATIONS 299 characteristics of IMC programs. These characteristics themselves are very rich and have many facets. Additional research could fur- ther develop and refine these criteria and facets to provide even deeper understanding. The actual implementation of the existing criteria could also be improved by providing a more detailed play- book as to how the different criteria could be applied for different
- 153. types of brandsin different settings. The IMC choice criteria focus on consumer considerations external to the firm in the marketplace. Another important way to improve the design and implementation of IMC programs is to develop a similar set of comprehensive criteria to guide internal efforts within the firm. What kinds of organizational structures and processes improve the likelihood of successful IMC pro- grams? How should firms work with agencies and other partners in the design and implementation of IMC programs? Last and importantly, the focus on this article was largely on paid and owned media. As noted, incorporating earned media and all possible brand contacts into brand communication programs is also a top research priority. Detailed models of brand equity and the consumer-decision journey will be critical to understand the many ways that brands can be built or destroyed by factors inside or out- side the control of marketers. REFERENCES
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