Chapter 14 (Marketing) - PDF

14 Engaging Consumers and Communicating Customer Value Integrated Marketing Communic...

14 Engaging Consumers and Communicating Customer Value Integrated Marketing Communications Strategy OBJECTIVES OUTLINE OBJECTIVE 14-1 Define the four promotion mix tools for communicating customer value. OBJECTIVE 14-2 Discuss the changing communications landscape and the need for integrated marketing communications. OBJECTIVE 14-3 Outline the communication process and the steps in developing effective marketing communications. ­OBJECTIVE 14-4 Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. CHAPTER In this and the next two chapters, we’ll ex- media—and the need for integrated marketing communications. amine the last of the marketing mix tools— Finally, we’ll discuss the steps in developing marketing commu- PREVIEW promotion. Beyond just creating customer nications and the promotion budgeting process. In the next two value, marketers must clearly and persuasively communicate chapters, we’ll present the specific marketing communications that value. Promotion is not a single tool but rather a portfolio of tools: advertising and public relations (Chapter 15) and personal several tools. Ideally, under the concept of integrated marketing selling and sales promotion (Chapter 16). communications, a company will carefully coordinate these pro- Let’s start by looking at the Philippine fast-food brand motion tools to engage customers and clearly and consistently Jollibee, which is growing rapidly worldwide after enjoying huge deliver information about itself and the customer value it creates. success in its home market. The fast-food brand successfully We’ll begin by introducing the various promotion mix tools. used traditional media to grow in its market and has now begun Next, we’ll examine the rapidly changing communications using non-traditional media and digital media to reach out to a environment—especially the addition of digital, mobile, and social global audience in different parts of the world. JOLLIBEE: Communicating Family Values O ne of the Philippines’ most famous fast-food brands, brand recognition among the Filipino population, especially Jollibee operates more than 1,400 stores around children—for many of them, birthday parties are incomplete the world. It is the largest fast-food chain in the without the giant bee dressed in a red vest and a white chef’s Philippines and surpasses the combined market hat dancing and entertaining everyone. share of the other multinational fast-food chains in the coun- The fast-food chain began in 1975 as an ice-cream parlor try. The brand is a favorite among the local population. The in Cubao, Quezon City, and Quiapo, Manila, owned and oper- smiling red bee that can be seen in all of its stores enjoys high ated by Tomy Tan Caktiong and his family. At their customers’ M14_KOTL9364_19_GE_C14.indd 434 25/02/23 3:56 PM  CHAPTER 14 | Engaging Consumers and Communicating Customer Value 435 request, they started serving hot food items that soon became more popular than the ice cream. This encouraged the Caktiong family to convert the parlor into a fast-food restaurant. Jollibee is a brand that focuses on and promotes the fa- milial values of sharing, being together, and being happy. Its mission is to spread joy to its customers by serving them great-tasting food. Customer-centricity, a spirit of family and fun, speed with excellence, and the humility to listen and learn form the basis on which the brand value of Jollibee is constructed. Its promotional campaigns are developed to com- municate these brand values. Even the choice of a bee as its logo was done to communicate the hard work a bee does and for its association with honey. Jollibee’s popularity extends beyond the Philippines, and it has more than 270 outlets in the United States, Canada, By focusing on familial values, Jollibee’s campaigns re- Hong Kong, Macau, Brunei, Vietnam, Singapore, Malaysia, emphasize their brand philosophy. Saudi Arabia, the United Arab Emirates, Qatar, Oman, Richard R Handley/Alamy Stock Photo Kuwait, Bahrain, Italy, and the United Kingdom. In its pro- motional poster displayed in its Manila office, it refers to it- self as the largest Asian fast-food company in the world. The campaign, Jollibee donation boxes are placed in its stores brand is known as the McDonald’s of the Philippines and has nationwide; here, children make their donations, sing successfully benchmarked the American giant’s operations Christmas carols with the Jollibee mascot, and spread joy and business model. By doing so, Jollibee has been able to during the festive season. At the forefront of the campaign enhance its service quality to international standards. It has are famous child actors who become the leading Jolly Toy consistently maintained a strong focus on strict quality stan- Scouts, inspiring kids across the country to share their dards, including high-quality and great-tasting food, quick toys and books with others. In this way, Jollibee sends a and efficient service, and cleanliness. Some of the brand’s strong message of community-building and fosters a na- most popular items are its delicious Chickenjoy, Yum burger, tional spirit. It believes that Christmas for Filipinos is and Jolly Spaghetti. not just a time to celebrate but also a time to share. This By heavily using traditional and non-traditional media and similar initiatives have contributed to the company’s for advertising, Jollibee has established a strong brand eq- overall success, not only with its customers but with all its uity. Many of its advertisements show everyday settings stakeholders. with a slice-of-life execution style which emphasizes familial In addition to advertising and public relations cam- values and Filipino pride. This strategy has struck the right paigns, Jollibee creatively uses various sales promotion tools chord with its home market and contributed to the brand’s at its stores and through its online promotions. Some of its re- growth. Having a Filipino fast-food brand that can com- cent sales promotions include free Jollibee loot bags with the pete with international brands like KFC, Burger King, and purchase of bucket chicken meals, Jollibee promotion codes McDonald’s has been a source of pride for many Filipinos, that can be scanned to redeem exclusive Jollibee app deals, and Jollibee makes sure it is reinforced through its marketing and Jollyween, an online Halloween event that involves chil- communications. dren in their favorite costume celebrating in an online event Another key aspect of Jollibee’s message execution for over an hour, with meals being delivered to their homes. strategy is the use of celebrity endorsements. During its Jollibee has a robust presence on social media, which expansion phase in the Philippines, Jollibee partnered it leverages to engage with customers directly and to an- with Aga Mulach, one of the most popular Filipino movie nounce its new schemes and offers, its achievements, and stars, for its advertisements and public relations initia- the launch of new products, campaigns, and advertise- tives. Jollibee constantly reemphasizes its core philosophy ments. Jollibee’s Facebook page has over 7.8 million follow- of togetherness by undertaking socio-civic programs that ers. Similarly, the brand’s popularity has been increasing are designed to engage and serve the community where it on Instagram, with over half a million posts related to the operates. One of its oldest and most successful campaigns brand on the platform. is “MaAga ang Pasko sa Jollibee.” Mulach collaborated Jollibee Food Corporation’s short promotional Kwentong with Jollibee Food Corporation to run a toy and book do- Jollibee videos often create a stir in social media. In 2017, it nation campaign throughout the launched three heart-tugging vid- country for children in need. The eos as part of its Valentine’s Day campaign has become an annual Year after year, Jollibee runs a series of campaign to strengthen brand event for Jollibee and encourages integrated marketing communication recognition among millennials. the participation of children as The videos racked up a whopping campaigns that engage brand fans and the Jolly Toy Scouts. The scouts 40 million views on YouTube and encourage children to make other keep the Jollibee brand fresh, relatable, Facebook. But more than reach children happy by sharing toys and contemporary. and views, the customer interac- and books with them. During the tion was viewed by Jollibee as the M14_KOTL9364_19_GE_C14.indd 435 25/02/23 3:56 PM  436   PART 3 | Designing a Customer Value–Driven Strategy and Mix most important factor in the campaign’s success. The cam- conferencing and e-meetings, Jollibee introduced various vir- paign boosted sales significantly, with the sale of Chickenjoy tual backgrounds that included some of its most recognizable doubling and Yum burgers quadrupling in the weeks fol- menu items and its brand mascot. lowing the release of the videos. In 2019, Jollibee celebrated Jollibee takes pride in being the Philippines’ most popu- grandparents, their unconditional love, and their selfless- lar fast-food chain that is increasing its global presence rap- ness through its “Garapon” video. The video is anchored in idly. Its website has a page called the Buzz Room, which is Jollibee’s core philosophy and narrates the story of how a constantly updated with news related to new menu options, grandmother sets aside any amount she can just to gift her special promotions, the opening of new store locations, and grandson something that would make him happy. new offerings. In international markets, the brand resonates During the COVID-19 pandemic, when people could not well with the youth, and social media seems to be playing a host in-person parties at their stores, Jollibee introduced virtual vital role in it—more and more global influencers have been parties to connect with its customers and continue to be part talking about Jollibee. Many bloggers have shared YouTube of their lives. Jollibee offered a virtual e-venue where friends videos of them trying out items from Jollibee’s menu. To keep and family could connect to celebrate their loved ones’ birth- pace with the digital world and the increasing of use technol- days with party hats, balloons, and Jollibee giveaways, and to ogy, in 2021, Jollibee launched its app to reach its customers have their favorite Jollibee meal delivered to them. To encour- directly and has been heavily promoting it through its various age consumption of its products, Jollibee introduced e-gifts so communication channels. Jollibee even ran a two-week long that customers can easily send electronic gift codes to friends promotion after the launch of the app, offering the brand’s and family. The e-gifts are available in the form of e-vouchers iconic Peach Mango Pie for free to consumers placing orders and e-certificates. When social interaction was limited to video using the new platform.1 BUILDING GOOD CUSTOMER RELATIONSHIPS calls for more than just de- Author The promotion mix is the veloping a good product, pricing it attractively, and making it available to customers. Comment marketer’s bag of tools Companies must also strategically engage with and communicate their value propositions for engaging and communicating with to customers. All the company’s communications must be blended into carefully inte- customers and other stakeholders. To deliver a clear and compelling grated marketing communications programs. message, each tool must be carefully coordinated with others under the concept of integrated marketing communications (IMC). ­The Promotion Mix OBJECTIVE 14-1 Define the four promotion mix tools for communicating customer Promotion mix (marketing value. communications mix) The specific blend of promotion tools A company’s total promotion mix—also called its marketing communications mix— that the company uses to persuasively consists of the specific blend of advertising, sales promotion, personal selling, and public communicate customer value and build relations tools that the company uses to engage consumers, persuasively communicate customer relationships. customer value, and build customer relationships. The four major promotion tools are de- fined as follows:2 Advertising Advertising. Any paid form of nonpersonal presentation and promotion of ideas, Any paid form of nonpersonal presentation goods, or services by an identified sponsor. and promotion of ideas, goods, or Sales promotion. Short-term incentives to encourage the purchase or sale of a prod- services by an identified sponsor. uct or service. Personal selling. Personal customer interactions by the firm’s sales force to engage Sales promotion customers, make sales, and build customer relationships. Short-term incentives to encourage the Public relations (PR). Activities designed to engage the company’s various publics purchase or sale of a product or a service. and build good relations with them. Personal selling Each category involves specific promotional tools. For example, advertising includes Personal presentation by the firm’s digital, broadcast, print, outdoor, and other forms. Sales promotion includes discounts, sales force for the purpose of engaging coupons, displays, demonstrations, and events. Personal selling includes sales presenta- customers, making sales, and building tions, trade shows, and incentive programs. Public relations includes news updates, stories, customer relationships. ­sponsorships, events, and webpages. At the same time, marketing communication goes beyond these specific promotion Public relations (PR) tools. The product design, price, package, and the stores that sell it—all communicate Activities designed to engage the something to buyers. Thus, although the promotion mix is the company’s primary engage- company’s various publics and build ment and communications activity, the entire marketing mix—promotion and product, good relations with them. price, and place—must be coordinated for greatest impact. M14_KOTL9364_19_GE_C14.indd 436 25/02/23 3:56 PM  CHAPTER 14 | Engaging Consumers and Communicating Customer Value    437 Author Integrated marketing Comment communications—IMC— Integrated Marketing Communications is changing quickly and profoundly OBJECTIVE 14-2 Discuss the changing communications landscape and the need for today. A big reason is the huge surge integrated marketing communications. in customer engagement through digital media—online, mobile, and In past decades, marketers perfected the art of mass marketing: using mass-media com- social media marketing. munication techniques to sell highly standardized products to masses of consumers. Even now, large companies routinely invest millions or even billions of dollars in television, magazine, or other mass-media advertising, reaching tens of millions of customers with a single ad. Today, however, marketing managers increasingly face some new realities. Perhaps no other area of marketing is changing so profoundly as marketing communica- tions, creating both exciting and challenging times for marketers. The New Marketing Communications Model Today’s marketing communications environment is rapidly evolving. First, marketing strat- egies are changing. As mass markets have fragmented, marketers are shifting away from mass marketing and toward more focused marketing aimed at narrower micromarkets. Second, in this digitally connected, mobile age, consumers are better informed and more communications-empowered. Instead of relying only on marketer-supplied information, they use the internet, social media, and other technologies to find information on their own. They connect easily with other consumers to exchange brand-related information or even create and communicate their own brand messages and experiences. Finally, advances in digital technology have remarkably transformed caused remarkable changes in the ways how companies and customers communicate with each other. The digital age has spawned a host of new communication tools and platforms, from smart- phones and IoT devices to the many faces of the internet—brand websites, social media, email, the mobile web, streamed content, online communities, and now the metaverse. Just as mass marketing once gave rise to a new generation of mass-media communication models, digital and social media have now given birth to a range of more targeted, social, and engaging marketing communication models. In recent years, although TV remains a potent advertising medium, TV ad spending growth has flattened or declined. Ad spending in magazines, newspapers, and radio has also lost significant ground. Meanwhile, spending in digital media has surged. Total digital ad spending now captures more than 62 percent of all U.S. ad spending and will grow to an estimated 75 percent of total ad spending by 2024. Advertising on mobile devices now accounts for more than three-quarters of all digital ad spending and by itself exceeds the amount spent on TV advertising.3 Large advertisers are increasingly moving toward a “digital-first” approach. For example, last year L’Oreal, Hershey, and Unilever increased their digital adver- tising more than 100 percent over the previous year. In fact, consumer package goods brands are expected to increase their digital advertising spending by more than 50 percent over the next five years. Consider Unilever, one of the world’s largest advertisers and a leader in the digital advertising and communications revolution:4 Unilever has built in-house digital marketing skills clustered around 40 digital hubs within the company and now spends as much as 45 percent of its more than $9 billion global marketing budget on digital media. For example, Unilever has shifted ad resources from television advertising to digital streaming and gam- ing platforms. It now partners with the hugely popular Fortnite and Animal Crossing gaming platforms to en- Many large advertisers are moving toward a “digital-first” approach gage younger consumers. Unilever’s Hellmann’s brand to build their brands. Marketing powerhouse Unilever now spends as created its own Hellmann’s Island on Nintendo’s Animal much as 45 percent of its huge global marketing budget on digital media, Crossing: New Horizon. Each time a player donated a ­making it a leader in the digital advertising revolution. virtual vegetable within the game, Hellmann’s made rafapress/Shutterstock a donation to FareShare, a UK charity fighting hunger M14_KOTL9364_19_GE_C14.indd 437 25/02/23 3:56 PM  438   PART 3 | Designing a Customer Value–Driven Strategy and Mix and food waste. And Unilever holds monthly gaming “master classes” where leading profes- sional gamers keep Unilever’s marketing teams attuned to the latest developments and trends in gaming and virtual role playing. Traditional marketing approaches often interrupt customers and force-feed them mass messages. Today’s new digital media formats let marketers reach smaller communities of consumers in more engaging ways. For example, consumers can now watch their favorite television programs on just about any screen—on televisions but also tablets, smartphones, or laptops. And they can choose to watch programs whenever and wherever they wish, often without commercials. Increasingly, programs, ads, and videos are being produced only for online viewing. Despite this shift toward digital, traditional mass media remain important. Thus, rather than the old-media model collapsing completely, most marketers foresee a shifting mix of both traditional mass and digital media that engages more-targeted consumer com- munities in a more personalized way. In the end, the key is to integrate all these communi- cations channels and media to best engage customers, communicate brand messages, and enhance customer experiences. The roles and skill sets of marketing communicators are also evolving. Rather than just creating and placing “TV ads” or “print ads” or “Instagram stories,” many marketers now Content marketing view themselves more broadly as content marketing managers. As such, they create, ins­ Creating, inspiring, and sharing brand pire, and share brand messages and conversations with and among customers across a fluid messages and conversations with and mix of paid, owned, earned, and shared communication channels and media. These channels among consumers across a fluid mix include media that are both traditional and new as well as controlled and not controlled. of paid, owned, earned, and shared As one ad agency executive notes: “It’s about [communications] context and channels now, communications channels and media. rather than just the message itself. It’s about mapping the customer journey to start a con- versation with consumers, one that leads to engagement, purchase, loyalty, and advocacy at different touchpoints against this integrated journey” (see Real Marketing 14.1).5 ­The Need for Integrated Marketing Communications Integrated marketing The shift toward a richer mix of media and content poses a problem for marketers. communications (IMC) Consumers are now bombarded by brand messages from numerous sources. But compa- Carefully integrating and coordinating nies often fail to integrate their various communication channels. A company’s ­mass-media the company’s communications ads may say one thing, but its website, social media pages and posts, videos, or emails may channels to deliver a clear, consistent, say something different. and compelling brand and company One problem is that marketing content may come from different parts of the company. message. Advertising messages are prepared by the marketing department or an ad agency. Other departments or agencies prepare public relations messages, sales promotion events, and online, mobile, or social media content. In the consumer’s mind, such brand-related con- tent from different sources—whether it’s a Super Bowl ad, in-store display, mobile app, or friend’s social media post—all FIGURE 14.1 merge into a single message about Integrated Marketing Carefully blended mix of promotion tools the brand or company. As a result, Communications conflicting content can result in con- fused company images and fuzzy brand positionings. Personal Thus, the explosion of digital Today’s customers are bombarded Advertising selling by brand content from all directions. marketing media presents tremen- For example, think about all the ways dous opportunities but also big you interact with companies such as Consistent, challenges. It gives marketers rich Nike, Apple, or Coca-Cola. Integrated marketing communications means clear, and new tools for understanding and that companies must carefully compelling company and engaging customers. At the same coordinate all of these customer touch points to ensure clear brand brand messages time, it complicates and fragments messages. overall communications. The chal- lenge is to bring it all together in an Sales Public organized way. To that end, most promotion relations companies practice the concept of integrated marketing communi- cations (IMC). Under this concept, as illustrated in Figure 14.1, the M14_KOTL9364_19_GE_C14.indd 438 25/02/23 3:57 PM  CHAPTER 14 | Engaging Consumers and Communicating Customer Value    439 Just Don’t Call It Advertising: It’s Content Real Marketing 14.1 Marketing In the good old days, life seemed so simple social media pages, proprietary brand com- heating the water. With 25 billion loads of for advertisers. When a brand needed an munities, sales forces, and events. laundry done every year in North America, advertising campaign, everybody knew what Earned media. PR media channels, such as achieving Tide’s objective would eliminate that meant. The brand team and ad agency television, newspapers, blogs, online video 4.25 million metric tons of greenhouse gas came up with a creative strategy, developed sites, and other media not directly paid for emissions annually, the equivalent of re- a media plan, produced and placed a set of or controlled by the marketer but that include moving about one million cars from the road TV commercials and magazine or newspaper the content because of viewer, reader, or user each year. ads, and maybe issued a press release to stir interest. To that end, Tide launched its #TurnToCold up some news. campaign for Earth Month in April 2021. At Shared media. Media shared by consumers But in these digital times, the old practice the core of the campaign was a series of with other consumers, such as social media, of placing “advertisements” in well-defined humorous ads. In the ads, people with cold blogs, mobile media, and viral channels as “media” within the tidy framework of a care- names or associations “cold called” others to well as traditional word of mouth. fully managed “advertising campaign” just get the message out. Rapper Ice-T and re- In the past, advertisers focused on tradi- tired wrestler “Stone Cold” Steve Austin called doesn’t work anymore. Instead, the lines are tional paid (broadcast, print) or earned (pub- celebrities like Vanilla Ice and former NHL rapidly blurring between traditional advertis- lic relations) media. Now, however, content hockey player Mark Messier and stressed ing and new digital content. To be relevant, marketers must develop integrated marketing the benefits to the environment of cold-water today’s brand messages must be digital, content that leverages the combined power washing with Tide as well as consumer ben- social, mobile, interactively engaging, and of all the POES channels. efits such as saving money on energy bills, multi-platformed. The new “content marketing” campaigns extending the life and look of clothes, and get- The new digital landscape has called into look a lot different from the old “advertis- ting clothes cleaner with new Tide cold-water question the very definition of advertising. ing” campaigns. For example, consider formulations. “The concept of using cold call- “What Is Advertising Anyway?” asks one pro- Tide’s #TurnToCold campaign, aimed at ers and people with cold names was so sticky vocative headline. Call it whatever you want, reducing the environmental impact of con- and memorable,” says a P&G marketer. admonishes another, but “Just Don’t Call It sumers washing their clothes. As part of The campaign’s ads played heavily on Advertising.” Instead, these days it’s “content parent company P&G’s Ambition 2030 sus- good old TV. But befitting today’s broader marketing,” creating and distributing a broad tainability initiative last year, Tide set a new digital content environment, they also played mix of compelling content that engages cus- goal—that by 2030 three out of every four across Tide’s YouTube, Facebook, Instagram, tomers, builds relationships with and among loads of laundry in the United States will be and Twitter channels. And beyond the them, and moves them to act and advocate washed in cold water. Two-thirds of Tide’s ads, on its own and working with partners, the brand to others. To feed today’s digital climate impact comes not from making and Tide created or inspired a deluge of other and social media machinery and to sustain ­distributing the product but from consum- #TurnToCold marketing content. It posted “always-on” consumer conversations, brands ers washing clothes. And 90 percent of the campaign images, videos, and messages on need a constant supply of fresh content energy required to do laundry comes from the brand’s many social media pages. And it across a breadth of traditional and digital platforms. Many advertisers and marketers now view themselves more broadly as content mar- keting managers who create, inspire, share, and curate marketing content—both their own content and that created by consum- ers and others. Rather than using traditional media breakdowns, they subscribe to a new framework that builds on how and by whom marketing content is created, controlled, and distributed. The new classification identi- ­ fies four major types of media: paid, owned, earned, and shared (POES): Paid media. Promotional channels paid for by the marketer, including traditional media (such as TV, radio, print, or outdoor) and on- line and digital media (paid search ads, web and social media display ads, mobile ads, or Content marketing: As the lines are rapidly blurring between tradi- tional advertising and new digital content, many marketers now view email marketing). themselves more broadly as content marketing managers who create, Owned media. Promotional channels owned inspire, share, and curate marketing content—both their own and that and controlled by the company, including created by consumers and others. company websites, corporate blogs, owned designer491/Shutterstock M14_KOTL9364_19_GE_C14.indd 439 25/02/23 3:57 PM  440   PART 3 | Designing a Customer Value–Driven Strategy and Mix launched a #TurnToCold microsite with full power in cold water. “The NFL does one mil- example, a single Instagram video announc- campaign messaging, an energy savings lion pounds of grass-stained, sweaty laundry ing the Tide Cold Washer sweepstakes was calculator, a “Take the Pledge” button, and every season,” notes a P&G spokesperson. viewed more than 500,000 times. And the a dashboard showing real-time results for “If equipment managers can trust washing in NFL partnership alone generated 220 earned savings on energy bills ($8.6 million to date), cold water with Tide, so can dads and moms placements in business, trade, sports, and CO2 (18.1 million tons), and electricity used at home.” entertainment outlets, including write-ups in (enough to charge 2.3 billion phones). The NFL partnership kicked Tide’s earned Variety, People, ProFootballTalk, Yahoo.com, To create even more and more varied content campaign into high gear in the form Forbes, and USA Today. In all, awareness for content, Tide partnered with other brands. of a national media blitz. Executives from #TurnToCold among Tide consumers is up Hanes hosted a “wash in cold” call to ac- both Tide and the NFL spoke with the media 21 percent since the start of the campaign. tion on its packaging along with Tide POD and issued press releases. Matty Ice con- So we can’t just call it “advertising” samples and coupons. The World Wildlife ducted interviews across national TV, print, anymore. Today’s shifting and sometimes Fund joined #TurnToCold celebrities in post- and digital media outlets. Players from each chaotic marketing communications envi- ing campaign videos and messages to its NFL team spoke to local media. And to cre- ronment calls for more than just creating digital channels. And Tide soon announced ate even more involvement and buzz, Tide and placing ads in well-defined and con- a partnership with the National Football announced a sweepstakes in which fans trolled media spaces. Rather, like Tide’s League, taking the campaign into the hearts could win a Tide Cold Washer—a custom- #TurnToCold brand team, today’s market- and laundry rooms of 80 million households ized washing machine featuring the voices of ing communicators must be marketing of passionate fans. As spokesperson for the NFL players urging people to wash on cold. content strategists, creators, connectors, NFL, Indianapolis Colts quarterback Matty With the Tide brand team, celebrities, and and catalysts who manage brand conver- “Ice” Ryan joined the cold-calling teams in partners all creating and posting #TurnToCold sations with and among customers and posting the ads and videos. To generate content across a full range of POES chan- help those conversations catch fire across buzz, 16 NFL teams committed to washing nels, the campaign’s message has been a fluid mix of channels. That’s a tall order, their team laundry in cold water. The NFL seen and shared broadly by the large follow- but with today’s new thinking, anything is was perfect for illustrating Tide’s cleaning ings of each organization and celebrity. For POES-ible!6 company carefully integrates its communication channels to deliver a clear, consistent, and compelling brand and company message. Different media can play unique roles in engaging, informing, and persuading con- sumers. For example, a recent study showed that more than two-thirds of marketers now plan video ad campaigns that stretch across viewing platforms such as traditional TV and digital, mobile, and social media. Such cross-platform campaigns combine TV’s core strength—vast reach—with digital’s superior targeting, interaction, and engage- ment. These varied media and roles must be carefully coordinated under the integrated marketing communications plan. This coordination is becoming critically important as customers themselves are now navigating across channels and media in the purchase process. One good example of a well-integrated marketing communications effort is auto- maker Land Rover’s “Above & Beyond” integrated marketing communications campaign, which combines the clout and reach of traditional media with the power of digital media to create deep customer engagement:7 The 75-year-old Land Rover brand uses plenty of good old traditional media advertising to drive home its luxury performance and outdoor adventure positioning. It runs Super Bowl spots, big- budget television ads, more targeted broadcast ads on AMC, ESPN, Food Network, and NFL Network, and print ads in Architectural Digest, GQ, Wired, Vogue, The Wall Street Journal, and other print media. But the Land Rover campaigns also integrate web and social media content that enriches the customer experience in ways that traditional media can’t. For example, the Land Rover Stories section of the brand’s website features travelogs in which adventure photographers relate their personal experiences riding Land Rovers through rugged and picturesque landscapes, each story illustrated with stunning visuals. The brand recently produced and posted a video series capturing the adventures of a couple and their young child during a trip across Europe in a Land Rover Discovery. And in another social media campaign, the company sought nominations from Land Rover owners and brand fans for its Defender Above & Beyond Service Awards, given to ­not-for-profit service organizations in categories such First Responders, Animal Welfare, and Coastal and Marine Conservation. Winning organizations in each category were awarded new-model Land Rover Defenders equipped to their specific needs. Videos highlighting the award M14_KOTL9364_19_GE_C14.indd 440 25/02/23 3:57 PM  CHAPTER 14 | Engaging Consumers and Communicating Customer Value    441 winners and their vehicles drew views and reactions across a wide range of so- cial media platforms. Thus, beyond the broad reach of its mass media ad- vertising, Land Rover’s digi- tal integrations have earned it a host of engaged owners and fans. The brand boasts 16 million Facebook followers, 813,000 YouTube subscribers, 900,000 Twitter followers, and 8.8 million Instagram faithful who engage by the thousands with every post. By com- parison, competitor Toyota’s Integrated marketing communications: Land Rover’s “Above & Beyond” marketing campaign Landcruiser attracts only a integrates the clout and reach of traditional media with the power of digital and social media to create paltry 115,500 Facebook fol- deep and personal customer engagement. lowers and 88,000 Instagram © JAGUAR LAND ROVER LIMITED 2022 fans. To implement integrated marketing communications, many companies now appoint a marketing communications director who is responsible for coordinating the var- ious promotion tools and the promotion mix. This increases communications consistency and sales impact. The communications director must unify the company and brand images as they are shaped across ever-expanding cross-platform communications activities. Author To develop Comment effective marketing Developing Effective Marketing Communication communications, you must OBJECTIVE 14-3 Outline the communication process and the steps in developing first understand the general effective marketing communications. communication process. A View of the Communication Process Too often, marketing communications focus on immediate and narrow goals related to brand awareness, perception, or preferences in the target market. But this approach is shortsighted. In contrast, integrated marketing communications involves identifying the target audience and shaping a well-coordinated promotional program across media and channels to obtain the desired audience response. Today, marketers are moving toward viewing IMC as an integral part of managing ongoing customer engagement and relation- ships with the company and its brands. Customers differ. Therefore, communications programs must be developed for specific segments and even individuals. Further, today’s communications technologies are increasingly two-way and interactive. Therefore, companies must ask not only “How can we engage our customers?” but also “How can we let our customers engage with us and with each other?” Thus, the communications process should start with an audit of all the potential touch points between target customers and the company. For example, someone purchasing a new phone plan may talk to others, see television or magazine ads, visit online sites for prices and reviews, and check out plans at Best Buy, Walmart, or a wireless provider’s kiosk or store. Marketers need to assess what influence each communication experience will have at different stages of the buying process. Based on this understanding, marketers can effectively allocate their communications budget. To communicate effectively, marketers also need to understand how communication works. Communication involves the nine elements shown in Figure 14.2. Two ele- ments are the major parties in a communication—the sender and the receiver. Two are the major communication tools—the message and the media. Four more are major communica- tion functions—encoding, decoding, response, and feedback. The last element is noise in the system. These elements are now defined and applied to a Coca-Cola “Real Magic” com- mercial or other brand content. M14_KOTL9364_19_GE_C14.indd 441 25/02/23 3:57 PM  442   PART 3 | Designing a Customer Value–Driven Strategy and Mix FIGURE 14.2 Elements in the Communication Process Sender Encoding Message Decoding Receiver Media Noise Feedback Response Sender’s field Receiver’s field of experience of experience There’s a lot going on in this model. For example, apply this model to Coca-Cola. To create great marketing content—such as the brand’s “Real Magic” campaign—Coca-Cola must thoroughly understand its customers and how communication works. Sender. The party sending the message to another party—here, Coca-Cola. Encoding. The process of putting thought into symbolic form—for example, Coca-Cola’s ad agency assembles words, sounds, and illustrations into a TV ad of social media video that will convey the intended message. Message. The set of symbols that the sender transmits—the actual Coca-Cola ad or video. M­ edia. The communication channels through which the message moves from the sender to the receiver—in this case, specific television programs or social media platforms that Coca-Cola’s selects. Decoding. The process by which the receiver assigns meaning to the symbols encoded by the sender—a consumer watches and interprets the words and images in the ­Coca-Cola commercial or video. Receiver. The party receiving the message sent—the customer who watches the Coca-Cola content. Response. The reactions of the receiver after being exposed to the message—any of hun- dreds of possible responses, such as the consumer likes Coca-Cola better, is more likely to drink Coca-Cola next time, advocates Coca-Cola to a friend, or does nothing. Feedback. The part of the receiver’s response communicated back to the sender— Coca-Cola’s research shows that consumers notice and remember the ad, post mes- sages to ­Coca-Cola on its social media sites praising or criticizing the ad, or refer to the content on their own social media pages. Noise. The unplanned static or distortion during the communication process, which re- sults in the receiver getting a weaker or different message than the one sent—the con- sumer could be distracted and miss the key points, a high-profile news event could overshadow the ad or video, or a breaking story about the negative health effects of carbonated drinks could blunt Coca-Cola’s message. For a message to be effective, the sender’s encoding process and the receiver’s decod- ing process must align. The best messages consist of words and symbols that are familiar to the receiver. The more the sender’s field of experience overlaps with that of the receiver, the more effective the message is likely to be. Marketing communicators may not always share the customer’s field of experience. For example, an advertising copywriter from one socioeconomic level might create content for customers from another level—say, wealthy business owners. To communicate effectively, the copywriter must nevertheless understand the business owner’s field of experience. M14_KOTL9364_19_GE_C14.indd 442 25/02/23 3:57 PM  CHAPTER 14 | Engaging Consumers and Communicating Customer Value    443 This model highlights the key factors in good communication. Senders must know what audiences they wish to reach and what responses they want from them. They must encode messages that account for how target audiences will likely decode them. They must send messages through media that reach target audiences, and they must develop feedback channels to assess an audience’s response to the message. Also, given today’s interactive media, companies must be prepared to “flip” the communications process—to become good receivers of and responders to messages sent by consumers. Author Now that we understand Steps in Developing Effective Marketing Communication Comment how communication To develop an effective integrated communications and promotion program, marketers works, it’s time to turn all of those promotion mix elements into an actual must do the following: identify the target audience, determine the communication objec- marketing communications program. tives, design a message, choose the media through which to send the message, select the message source, and collect feedback. Identifying the Target Audience A marketing communicator starts with a clear target audience in mind. The audience may be current or potential buyers, those who make the buying decision or those who influence it. The audience may be individuals, groups, special publics, or the public at large. The target audience will affect what will be said, how it will be said, when it will be said, where it will be said, and who will say it. Determining the Communication Objectives Next, marketers must determine the desired response from the target audience. In many cases they will seek a purchase response. But purchases are only part of a broader customer journey—the sum of experiences consumers have with a brand. More broadly, marketing communicators aim to build customer–brand relation- Five As ships and guide customers through the five As of the customer journey: awareness The five customer journey stages on (I know about the product), appeal (I like the product), ask (I want to know more and be the path from awareness of a brand engaged with the brand), act (I’m buying and relating to the product), and advocacy to advocating it to others: awareness, (I’m telling others about the product).8 The goal is to create experiences that will keep appeal, ask, act, and advocacy. customers on the path of the five As. Consumers in the marketing communicator’s target market may be totally unaware of the brand, or they may not actively consider or engage with it. Thus, marketers often must first build active awareness and engagement, then move consumers to purchase and advo- cacy. An example is financial services firm Greenlight Financial Technology:9 Greenlight offers a prepaid debit card and app for kids and teens that lets parents help their children learn to manage their finances— saving, earning, spending, and investing. Although 5 million parents and kids al- ready used Greenlight, the company saw tremendous potential among would-be customers who were not yet aware of the service. So, to boost awareness, Greenlight took extraordinary measures. It spent nearly $7 million on a Super Bowl LVI ad titled “I’ll Take It.” The humorous ad starred Ty Burrell, the actor who spent 11 years portray- ing “America’s dad” Phil Dunphy on the hit sitcom Modern Family. In the ad, Burrell has diffi- culty resisting silly financial temptations ranging from a jetpack to a boat dubbed Tytanic. Instead of saying no, he simply says, “I’ll take it.” Moving customers through the customer journey: Financial services firm Green- The goal of the ad was to “shine a light light built awareness among potential customers with a creative Super Bowl ad. on the world of money for families and em- “Every time a parent hears about Greenlight, they love it.” power parents to raise financially-smart Courtesy of Greenlight kids.” The ad concluded with a dad telling M14_KOTL9364_19_GE_C14.indd 443 25/02/23 3:57 PM  444   PART 3 | Designing a Customer Value–Driven Strategy and Mix his approving children, “And that’s why mom and I use Greenlight to teach you about money.” The cost of the ad might seem steep for a relatively small company. But given the Super Bowl’s more than 90 million viewers, Greenlight figured it was worth the 8-cents-per-person price. “Our whole investment [centers] around trying to increase the awareness of Greenlight, because every time a parent hears about Greenlight, they love it,” says Greenlight’s CEO. “Usually they’ll say, ‘I’ve been looking for something like that.’” Of course, effective communications alone cannot drive engagement, preference, and purchases. The product itself must provide superior customer value. In fact, great market- ing communications can speed the demise of poor products. The more quickly consumers learn about a poor product, the more quickly it fails. Thus, good marketing communica- tion calls for “good deeds followed by good words.” Designing a Message Having defined the desired audience response, the marketing communicator must then craft the message—deciding what to say (message content) and how to say it (message structure and format). Message Content. The marketer must figure out an appeal or theme that will pro- duce the desired responses. There are three types of appeals: rational, emotional, and moral. Rational appeals relate to the audience’s self-interest. They highlight a product’s quality, economy, value, or performance to show that it will deliver the desired ben- efits. Thus, an Aleve ad claims: “More pills doesn’t mean more pain relief. Aleve has the strength to keep back, body, and arthritis pain away all day with fewer pills than Tylenol.” Rational claims do not necessarily rely on words and numbers. Land Rover credibly demonstrated its o ­ ff-roading capabilities with a video ad of a Range Rover Sport SUV carving its way down from the summit of a mountain in the Swiss Alps. And a video commercial for Flex Tape waterproof duct tape showed a wooden boat sawed in half being put back together with the super-strong, waterproof adhesive tape.10 Emotional appeals—ranging from love, joy, and humor to fear and guilt—invoke positive or negative emotions that can motivate purchase or other actions. Advocates of emotional messages claim they are better than ra- tional messages at drawing attention and create strong beliefs. They reason that consumers often feel before they think and that persuasion is emotional in nature. The ASPCA does a great job of raising money and support for its good works by designing emotional tele- vision, print, and digital advertising that highlights the plight of suffering animals. Its ads tug at people’s heart- strings while encouraging them to contribute to animal welfare support or to adopt a shelter animal.11 Moral appeals are directed to an audience’s sense of what is “right” and “proper.” They are often used to urge people to support social causes, such as a cleaner environ- ment or aid to the disadvantaged. For example, a World Wildlife Fund ad shows two human l­ung-shaped forests side by side with one lung partially destroyed, calling for society to reduce environmental degradation and forest habitat destruction “Before it’s too late.” Another WWF ad series shows endangered wildlife species with a call to protect them in the face of climate change. And a Colgate ad campaign urges people to “Close the tap while brush- ing” their teeth. One ad shows a young boy in a developing economy with a water bucket atop his head, noting, “What you waste in two minutes is all his family needs for a day.” Emotional appeals: The ASPCA’s ads use emotional appeals to tug at people’s heartstrings while encouraging them to contribute to animal Message Structure. Marketers must make three deci- welfare support or to adopt shelter animals. sions r­ elated to message structure. The first is whether to ASPCA® The American Society for the Prevention of Cruelty to Animals® draw a conclusion or leave it to the audience. Research M14_KOTL9364_19_GE_C14.indd 444 25/02/23 3:57 PM  CHAPTER 14 | Engaging Consumers and Communicating Customer Value    445 suggests that the advertiser is often better off asking questions and letting buyers come to their own conclusions. The second is whether to present the strongest arguments first or last. Presenting them first gets strong attention but may lead to an anticlimactic ending. Ending on a high note is usually better, especially if the aim is to get the customer to take some action. The third is whether to present a one-sided argument (mentioning only the prod- uct’s strengths) or a two-sided argument (mentioning both strengths and shortcomings). Usually, a one-sided argument is more effective in sales presentations—except when audiences are highly educated, skeptical, or likely to hear opposing claims or when the ­communicator has a negative association to overcome. In this spirit, Listerine ran the mes- sage “Listerine tastes bad twice a day.” In such cases, two-sided messages can enhance an advertiser’s credibility and help repel competitor attacks. Message Format. The marketing communicator also needs a strong format for the message. In a print ad, the communicator has to decide on the headline, copy, i­llustration, and colors. To attract attention, advertisers can use novelty and con- trast; eye-catching pictures and headlines; dis- tinctive formats; message size and position; and color, shape, and movement. They can also en- tice viewers into mentally interacting with the ad. For example, a classic Volkswagen print ad brought to life the precision parking capability of- fered by Volkswagen’s Park Assist technology. It highlighted the risks asso­ ciated with the tight squeeze when parallel parking in a small space be- tween two cars. The ad featured a simple, clever layout showing a spiky hedgehog parked between fragile bags of water containing goldfish. Anything less than precise parking would mean the end of the goldfish. As another example, Reese’s Peanut Butter Cup ads are bold and simple. They feature the brand’s familiar orange, yellow, and brown col- ors with text overlaying images of the classic candy. They feature clever headlines that unite the candy’s two distinctive ingredients, such as “Chocolate and peanut butter walked into a bar. The rest is history.” Communicators plan every detail carefully. In Message format: To attract attention, advertisers can use novelty and television or video messages, the communicator must contrast, eye-catching images and headlines, and distinctive formats, as in incorporate motion, pace, and sound. When it comes this Volkswagen ad. to the product and packaging, the communicator Park Assist by Volkswagen must evaluate texture, scent, color, size, and shape. Color alone can significantly enhance message recognition for a brand—think about Target (red), John Deere (green and yellow), Twitter (blue), or Home Depot (orange). Thus, designing effective marketing communications calls for both creativity and pains- taking attention to detail. Choosing Communication Channels and Media The communicator must next select the channels of communication. There are two broad types of communication channels: personal and nonpersonal. Personal communication ­Personal Communication Channels. In personal communication channels, two or more channels people communicate directly with each other. They might communicate ­face-to-face, on the Channels through which two or more phone, via mail or email, on social media, or even through texting or chat. Personal com- people communicate directly with each munication channels are effective because they allow for personal addressing and feedback. other, including face-to-face, on the Some personal communication channels are controlled by the company. For exam- phone, via mail or email, on social media, ple, company salespeople may interact with potential buyers. But other personal com- or even through an internet “chat.” munications channels are not directly controlled. These channels include independent experts—consumer advocates, bloggers, and others—making statements to buyers. Or they might be neighbors, friends, family members, associates, or other customers inter- acting with target buyers or existing customers in person, via social media, within online M14_KOTL9364_19_GE_C14.indd 445 25/02/23 3:57 PM  446   PART 3 | Designing a Customer Value–Driven Strategy and Mix consumer communities, or through other interactive channels. Today, such word-of-mouth influenc­e strongly influences consumer decisions. Personal influence carries great weight, especially for ex- pensive, risky, or highly visible products. Recommendations from friends and family are by far the most influential: 92 percent of consumers believe suggestions from friends and family more than advertising. And 88 percent of people trust online reviews written by other consumers as much as they trust recommendations from personal contacts.12 Is it any wonder, then, that few consumers buy a big-ticket item before evaluating viewer feedback on a site such as Amazon. com? And who hasn’t made an Amazon purchase based on the “Customers who bought this also bought...” section or decided against purchase because of negative customer reviews? Companies must put personal communication channels to work for them. As discussed in Chapter 5, they can hire or create opinion leaders for their brands—people whose opinions are sought by others—by supplying influencers with the prod- uct on attractive terms or by educating them so that they can inform others. Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities. For example, to reach its primarily 18- to 35-year-old target market, energy drink Red Bull has assembled an army of more than 4,000 “Student Marketeers” around the globe who gen- erate awareness and excitement for the product and brand. The Student Marketeers serve as Red Bull brand ambassadors who Personal communications channels: Red Bull’s more than “Get Wiiings. Give Wiiings,” by connecting directly with Red Bull 4,000 Student Marketeers globally connect directly with Red Bull customers on campuses or at events and ensuring unforgettable fans to generate awareness, excitement, and unforgettable brand brand experiences. They are “the face of the brand.” Red Bull de- experiences. They are “the face of the brand.” scribes them as “charming, fun-loving, entrepreneurial, and dy- Zain Jafar/Red Bull Content Pool namic individuals... who drive product trial, support sales, and work at Red Bull Events,...winning the hearts and minds of our customers through highly Word-of-mouth influence personalized interactions.”13 The impact of the personal words and recommendations of trusted friends, family, associates, and other consumers Nonpersonal Communication Channels on buying behavior. Nonpersonal communication channels are media that carry messages with minimal personal contact or feedback. They include major media, atmospheres, and events. Major Buzz marketing media include broadcast media (television, radio), print media (newspapers, magazines, di- Cultivating opinion leaders and getting rect mail), display media (billboards, signs, posters), and online and digital media (email, them to spread information about a websites, and mobile and social media). Atmospheres are designed environments that create product or a service to others in their or reinforce the buyer’s leanings toward buying a product. For example, lawyers’ offices communities. and banks are designed to communicate confidence and other qualities valued by clients. Events are staged occurrences that communicate messages to target audiences. For exam- Nonpersonal communication ple, brands arrange shows and exhibits, public tours, and other events. channels Nonpersonal and personal communications work best when coordinated well. Media that carry messages with minimal Nonpersonal communications might first flow from television, magazines, and other personal contact or feedback, including mass media to opinion leaders and consumers, who may then interact at a more personal major media, atmospheres, and events. level. Influencers and opinion leaders can also carry mass-media messages to people who are less exposed to such media. Interestingly, marketers often use nonpersonal chan- nels to mimic personal communications by embedding endorsements or word-of-mouth testimonials from consumers and experts in their television ads and other promotions. Selecting the Message Source In personal and nonpersonal communication, messages delivered by highly credible or popular sources are more persuasive. Thus, many companies promote to doctors, dentists, M14_KOTL9364_19_GE_C14.indd 446 25/02/23 3:57 PM  CHAPTER 14 | Engaging Consumers and Communicating Customer Value    447 and other health-care providers to motivate these professionals to then recommend spe- cific products to their patients. And marketers hire celebrity endorsers—well-known ath-