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©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 6 Communicating Value via Integrated Marketing Programs
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©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 6: COMMUNICATING VALUE VIA
INTEGRATED MARKETING PROGRAMS
A. Introduction
B. Integrated Marketing Communication
C. Message Strategy
D. Green Branding
E. Certification Labeling
F. Demarketing2
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A. INTRODUCTION
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©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
A. INTRODUCTION
MERRELL FOOTWEAR AND APPAREL
In 1981, Merrell Footwear introduced the Randy Merrell Cowboy Boot as the original fitted boot. Since that time, the company has evolved considerably, but the firm’s message has always been about urging people to go out and enjoy the outdoors. The footwear products offered by this company have grown from cowboy boots to include hiking boots, sandals, slip-ons, and shoes for men, women, and children. The company has also successfully introduced lines of men’s and women’s apparel as well as backpacks, bags, and accessories.
Two ways that Merrell can increase its revenues are via selling more footwear and apparel to current customers and by selling more of these products to new customers. Some of these efforts have focused on consumers that spend time outdoors but have spent less time enjoying backpacking, hiking, and other traditional outdoor sports. In support of this desire to broaden its market share, Merrell has used its promotional strategy to communicate its participation in outdoor events that emphasize the need for sustainability in consumption. For example, Merrell has become a primary sponsor of the Rothbury Music Festival in Western Michigan.
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A. INTRODUCTION
1. Merrell Footwear
a. Footwear: boots, sandals, slip-
ons, and shoes
b. Apparel, backpacks, bags, and
accessories
c. men, women, and children
2. Rothbury
a. Western Michigan
b. four-day music event attended by
more than thirty thousand people
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A. INTRODUCTION
3. Merrell Promotions
a. sweepstakes
i. grand prize: air transportation to and
from the festival, admission to the
four-day event, Merrell gift
certificates, camping gear, and
pocket money
b. Advertisements
i. information about Merrell, the
sweepstakes, and the festival
c. Rothbury “general store”
i. sold many types of Merrell shoes and
hiking boots, and
d. point-of-sale displays
i. outlined the merits of these footwear
products6
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B. INTEGRATED MARKETING
COMMUNICATION
1. Promotion
a.all communication from the
marketer designed to
persuade, inform, or remind
potential buyers of a product
in order to elicit a response of
influence an opinion7
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B. INTEGRATED MARKETING
COMMUNICATION
2. promotional mixa. Advertising
1. one-way, impersonal mass communication about a product or organization that is paid for by a marketing organization
b. Personal Selling1. personal, face-to-face interaction with a
potential customer
c. Public Relations1. use of publicity and other nonpaid forms of
promotion and information to influence attitudes about a company, its products, or about the values of the organization
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B. INTEGRATED MARKETING
COMMUNICATION
2. promotional mix
d. Sales Promotion
1. all marketing communication action other than advertising, personal selling, public relations, and direct marketing designed to influence consumer purchases and relationships with intermediaries in distribution channels
e. Direct Marketing
1. direct efforts to target an audience via the internet, direct mail, telemarketing, direct-action advertising, and catalog selling
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B. INTEGRATED MARKETING
COMMUNICATION
3. Integrated marketing
communicationa. coordination among the elements of the
promotional mix to ensure the consistency of
the message delivered at every contact point
between the consumer and the company
4. Integrated brand promotion a. use of the promotional mix to build brand
awareness, identity, and preference
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C. MESSAGE STRATEGY
4. Message strategy
b. Strategies1. Promote
brand recall
2. Link a key attribute to the brand name
3. Convince the consumer to act
4. Instill brand preference11
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C. MESSAGE STRATEGY
4. Message
strategy
b. Strategie
s
5. Change
behavior
via fear
or
anxiety
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C. MESSAGE STRATEGY
4. Message
strategy
b. Strategies
5. Change behavior
via fear or anxiety
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C. MESSAGE STRATEGY
4. Message
strategy
b. Strategies6. Situate the
brand socially
• Slice of life
• Product
placement
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C. MESSAGE STRATEGY
4. Message strategy
b. Strategies6. Situate the
brand socially
• Slice of life
• Product placement
7. Transform the consumption experience
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C. MESSAGE STRATEGY
4. Message strategy
b. Strategies6. Situate the
brand socially• Slice of life
• Product placement
7. Transform the consumption experience
8. Define the brand image
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D. GREEN BRANDING
1. Brand
a. name, term, design, or symbol
that identifies a seller’s products
and differentiates them from
competitors’ products
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D. GREEN BRANDING
2. Brand equitya. value of a brand expressed as
1. Customer– the attraction to a particular product from a
particular company generated by factors other than the product attributes
2. Corporate– the additional value that accrues to a firm because
of the presence of the brand name that would not accrue to the equivalent, unbranded product
3. Financial– the price the brand brings in the financial market
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D. GREEN BRANDING
3. Customer-based brand equity
a. Captured via five factors ranging from lowest to highest levels
1. Awareness– positioning the brand and its promotion to increase the
likelihood that consumers will remember the brand.
– Brand Recall» ability to retrieve the brand when given the product
category, the needs fulfilled by the category, or some other type of cue.
– Brand Recognition» ability to confirm exposure to the brand when given
the brand as a cue
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D. GREEN BRANDING
3. Customer-based brand equitya. Captured via five factors ranging from
lowest to highest levels
ii. Associations
– Differentiate brand from alternatives
– Brand Imagery» Intangibles that influences how
consumers think about a brand rather than their objective assessment of product attributes
– Corporate Credibility » degree to which consumers
believe that a company is willing and able to provide products and services that satisfy the needs and wants of consumers
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D. GREEN BRANDING
3. Customer-based brand equitya. Captured via five factors ranging from lowest to highest
levels
iii. Attitude • consumer’s overall assessment of the brand
iv. Attachment
• The emotional bond that may exist between a consumer and a brand embodies brand attachment
v. Activity
• the purchase and consumption frequency of a brand as well as the consumer’s involvement with the marketing program
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D. GREEN BRANDING
4. Green brand identitya. a specific set of brand attributes and benefits associated
with reduced environmental influence of a brand and the perception of being environmentally sound
1. Functional benefits• relevant environmental advantages of the product
compared to competing products
ii. Emotional benefits • complementary strategies to nurture green brand
identity
• Altruistic acts
• Socially visible consumption of green brands
• enables the consumers to get in contact with natural environments
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E. CERTIFICATION LABELING
1. Businesses and consumers that want to act in environmentally responsible are looking for ways to do so when they go to market
2. Certification labels
a. eco-labels
1. adherence to some standard associated with food safety and environmental performance, and
b. social labels
1. concern human rights and labor standards23
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E. CERTIFICATION LABELING
3. Retail Product Terminology
a. Natural
1. Definition based on the type of product
under consideration
2. lack of agreement on the meaning of this
term
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E. CERTIFICATION LABELING
3. Retail Product Terminology
b. Organic
1. free of synthetic substances
2. contains no hormones or antibiotics
3. has not been irradiated or fertilized with
sewage sludge
4. raised without the use of most
conventional pesticides
5. contains no genetically modified
ingredients25
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E. CERTIFICATION LABELING
3. Retail Product Terminology
c. Biodynamic
1. A specific form of organic farming that augments organic processes with consideration of the time of year, location, soil type, existing flora and fauna, and other factors
2. Biodynamic farms are complete ecosystems such that livestock create manure to fertilize fields, and natural predators, such as insects, provide pest control
3. Does not use artificial settings such as greenhouse – seasonality becomes a major issue
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E. CERTIFICATION LABELING
4. Certification benefitsa. Reduce consumer uncertainty
b. Aid in decision making1. Demands understanding of the meaning of
the label
2. Energy Star
c. Life cycle assessment1. accounting for production and processing
as well as resource energy usage, emissions, and waste
2. life cycle inventory assessment– identifies the sum amount of resources and emissions
associated with a product or service over its life. 27
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E. CERTIFICATION LABELING
4. Certification benefits
iv. Required
• USA Energy Guide
v. Voluntary
v. ISO 14000• international management standard associated with
environmental management
• ISO 14020 – 29 address labeling
• 3 types
1) Self-declaration
2) Awarded by agency external to firm
3) Quantitative life cycle environmental assessment
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E. CERTIFICATION LABELING
5. Criteriaa. Coverage
1. Breadth & extent of the standard
2. Basis for verification
3. Identification of those involved in developing standard
6. Success of labelinga. Lack of a strong relationship between labeling and
consumption
b. few labels can illustrate a direct link between their application and performance
1. purchase process driven by habit
2. information overload can be overwhelming to the consumers29
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F. DEMARKETING
1. action undertaken by marketers to
discourage consumption
2. 3 forms
a. General demarketing
1. companies try to shrink the level of total demand
b. Selective demarketing
1. organization discourages demand from certain
classes of consumers
c. Ostensible demarketing
1. strategy that involves limiting consumption for
the purpose of increasing sales30