Chapter 15 Summary: Designing and Managing Integrated Marketing Communications

The text defines marketing communications as, “the means by which firms attempt to inform, persuade, and remind consumers-directly or indirectly-about the products and brands they sell. They represent the voice of the company and its brands and help the firm establish a dialogue and build relationships with consumers” (Kolter 228). Marketing communications are very important, in my opinion; because they shape the way a company and their products and services are seen to the public.

My professional background is in marketing communications for a hospital. There, we were marketing our services as a top health care provider to our community and several of the surrounding towns. We did both internal and external communications, website, graphic design for mixed media and advertising, social media, events, public relations, community service, videography, photography and commercials. These are a few of the different types of the marketing communications mix. Everyone communicates differently, therefore messages are both received and interpreted differently. That’s why it is imperative that the marketing departments know their target audience, strategic values, goals, and strategy. After gathering all of that information, you can establish your budget, design the communication and brand and determine what marketing mix would be the most beneficial.

There are four main communication objectives to review during the planning process. The first one is category need, defined as, “establishing a product or service category as necessary to remove or satisfy a perceived discrepancy between a current motivational state and a desired emotional state” (Kolter 233). To put it simply, you need to market to your consumer that they “need” your product or service, not that they just want it but that they actually need it. The second objective is brand awareness. Brand awareness is getting your product name and/or brand in the consumers mind. When I go to the grocery store to buy toothpaste, Proctor and Gamble wants me to recognize the Crest brand toothpaste as a good quality and good value toothpaste. They also want me to recall their brand when looking at all the other packages of toothpaste. Commercials and coupons help me remember Crest toothpaste.

The third type of communication objective is brand attitude. The text defines this as, “helping consumers evaluate the brand’s perceived ability to meet a currently relevant need. Relevant brand needs may be negatively oriented (problem removal, problem avoidance, incomplete satisfaction, normal depletion) or positively oriented (sensory gratification, intellectual stimulation, or social approval).” Lastly, brand purchase intention is the fourth objective. It essentially means to convince consumers to buy your product. You want them to not only know and recall your brand but to actually buy it.

There are two main types of communication channels: personal and nonpersonal or mass communication channels. Personal communication channels are through word-of-mouth or face-to-face communication. Examples would be selling products at parties such as Mary Kay or Scentsy products, also door-to-door salesman. AT&T uses mass communication channels to create brand awareness and market products and services to consumers but when you go to an AT&T store, you meet face-to-face with a sales associate and they tailor the products and services to meet your needs. 

Lastly, when evaluating your marketing strategy, you should also know the characteristics of the marketing communications mix. A marketing professional should understand what the different types of communications will do for their brand and how to incorporate them into a marketing plan. Advertising is one of the most important types of the mix; it can make or break your brand. Advertising can mean commercials, traditional ads in magazines, programs, newspapers, and other print media, online ads, and sponsorships. It can be highly effective and persuasive. The visual aspect also helps people to recognize your brand and logo. In my experience, advertising eats up the majority of the budget and if ads are not chosen or placed properly, it can be a waste of money. We placed a lot of ads in the local newspapers for the hospital because it was in a predominately older community and that was our target audience. We knew that the majority of the newspaper readers were elderly and it also helped us to support our local community. By placing so many ads and being a main supporter of the newspaper, in return, they covered a lot of our news stories and printed almost all of the press releases that I sent to them.

This transitions into the effects of public relations and publicity. Through our relationship with the local media, including radio, it enabled us to tell our story. My favorite stories to write were about experiences that our patients had at our hospital. My very favorite story was about four women that worked at the hospital that were all diagnosed with breast cancer in the same 3 month span. They all beat breast cancer and now two of them work at the cancer center. It was a very emotional story but also inspiring. Click here to read the story. I felt like these stories were more relatable than press releases and being in a smaller community, many people knew the people that I wrote about.

Sales promotions are made available through ad campaigns or coupons. One example would be Payless Shoes. They almost always have a BOGO (buy one, get half off) sale and because of their promotions, I know not to shop there when they don’t have the sale because I could get a better deal if I just wait. However, when they do have the BOGO sale, I’ll probably end up spending more money because I’ll buy two or four pairs of shoes instead of just one at full price. It’s a gimmick, but it gets me and many other consumers in the store. Another type of marketing mix is events and experiences. At the hospital, we had our own event center. Not only did this bring in additional revenue, but it also allowed us to have trainings, educational sessions, health screenings, and holiday events for the community. These events were a lot of work but were great marketing tools.

In conclusion, there are so many options when marketing but the basics are simple. Know your audience, target them with the best marketing tools, deliver a strong brand, and evaluate your efforts. I personally believe marketing can be trial and error but I find the challenge to be a lot of fun and important in the success of any business.

Sources: Kotler, Philip, and Kevin Lane Keller. A Framework for Marketing Management. 5th ed. Boston: Prentice Hall, 2012.            

Chapter 9 Summary: Crafting the Brand Positioning and Competing Effectively

           Chapter 9 discusses the various ways to compete for majority market share and ways to protect market share. Some companies choose points-of difference and points-of parity to distinguish their brand in the overall market. The text mentions Southwest Airlines and I’d like to take a closer look at this company and how they distinguish and compete against the other airlines.

           

            Southwest is a fantastic example of setting yourself apart from other brands and emphasizing a product or service you offer that none of your competitors can provide. Many years ago, Southwest re-vamped their entire airline but setting insanely high standards in customer service and also by advertising “bags fly free.” All other airlines are still charging for each checked bag, many charge about $25 per bag and even to this day, Southwest does not charge for luggage. These services are points-of-difference. Southwest has advertised so much that consumers know they have good customer service but sometimes that is not enough. Purchasing a plane ticket is expensive and consumers are looking to save a few bucks these days, so no bag fees also sounds perfect. After doing some research, Southwest recently tried a new advertising campaign and my guess is this is a market-challenger strategy to protect and increase market share.

            The text defines a frontal attack as, “the attacker matches its opponent’s product, advertising, price, and distribution. A modified frontal attack, such as cutting price, can work if the market leader doesn’t retaliate, and if the competitor convinces the market its product is equal to the leader’s” (Kolter 138). In Southwest’s latest campaign, they focus on being America’s largest domestic airline. They also stray away from humor or emphasizing the bags fly free promotion and instead they focus on the American dream. I believe this is a great example of challenging the other top three airlines and expanding the brand.

            

            In conclusion, there are several ways to increase and protect market share but it is very important that the brand stay in tact and choose the best strategy for that company. In the end, effective positioning will make all the difference in the success or failure of a marketing plan.

Sources: Kotler, Philip, and Kevin Lane Keller. A Framework for Marketing Management. 5th ed. Boston: Prentice Hall, 2012.           

http://business.time.com/2013/03/26/southwest-airlines-were-not-really-about-cheap-flights-anymore/

Chapter 8 Summary: Creating Brand Equity

            I was once asked in an interview for a marketing position, “how would you describe our brand?” Looking back, that is one of the most important questions that could be asked of a marketing candidate. For one, it shows if the interviewee did their homework about the company but it also gives the interviewers an in depth and fresh perspective about their brand from a marketing professional.

            Creating, developing, maintaining, and enhancing a brand is a very tough job but it is critical in the success of any company. Take for example, the “Coke” brand and it’s red logo; everyone across the planet knows what that little red circle means. Coke probably even has their own pantone color for that bright shade of red with white lettering, in an unmistakable font. The logo brings images of summer and chilling outside with your friends. For some, it brings back the memories of the “good ole days.” For others, their mouths start watering and it’s almost like you can taste and smell the delicious carbonated beverage. Through their logo and advertising, Coke has established brand equity. The Coke brand sets the product apart from its competitors and has created loyalty to the product over the years. According to www.insidermonkey.com, Coca-Cola sells more than $125 million per day and the brand is worth more than $74 billion. 

            Another good example of a famous brand that has displayed brand equity and reinforcement over the years has been McDonalds’ golden arches. The brand itself is more than just the logo of two arches forming an “M,” it is also about the fact that McDonald’s has dominated the fast food market all over the world. It symbolizes a fast, hot, and cheap meal while on the go. McDonald’s corporation has reinforced the brand through their advertising and proved valuation because today the brand is work $95 billion. (www.insidermonkey.com)

            In my opinion, being able to describe a brand, more than just the logo, is valuable. It means the company is doing something right. It also means that all of their marketing pieces and advertisements are similar and reinforce the brand. Understanding a company’s brand is necessary to be a successful marketing professional.

Source: Kotler, Philip, and Kevin Lane Keller. A Framework for Marketing Management. 5th ed. Boston: Prentice Hall, 2012.           

http://www.insidermonkey.com/blog/the-coca-cola-company-ko-mcdonalds-corporation-mcd-the-worlds-most-valuable-brands-146167/

Chapter 7 Summary: Identifying Market Segments and Targets

           All consumer markets are segmented based on four main areas: geographic, demographic, psychographic, and behavioral. It’s important for markets to be segmented so that a business knows how to target their specific market and also to determine if they want to market a product on a larger scope or be more specific.

           Geographic segmentation is pretty basic in that it breaks down markets based on location, whether it is nation or neighborhood. Geographic segmentation also takes in to account race and ethnicity. The first example that comes to mind is the Asian district in Oklahoma City. The restaurants and grocery stores all have an Asian influence, even in the architecture of the McDonald’s. The reason for this niche market is the densely populated area, predominately consisting of Asians.

            The next segmentation is demographic. Factors of this market segmentation include family size, gender, occupation, income, and generation. An example of a product or service in this category might be nursing homes for older generations or a specific tennis shoe for women, or health insurance that is the same price for a family unit, regardless of how many kids they have.

            The third market segment is psychographic, meaning “the science of using psychology and demographics to better understand consumers.” (Kolter 103). In this category, people are grouped into personality traits, lifestyles, and values. A target product for this market might be fictional books, non-fiction books, Bibles, magazines covering different subjects, etc.

           

        The fourth market segmentation is behavioral and this includes needs and benefits, decision roles, and user and usage. One example would be the use of occasions in purchases such as the need to purchase airfare for vacations. People typically buy Christmas decorations in December and graduation gifts in May. Targeting consumers with sales and coupons during these specific times will likely result in additional purchases because they are already thinking about buying these things during certain occasions.

          Knowing your segmented market and where your product falls into place is critical when developing a marketing plan. Understanding your consumer and their demographics, personality, and behavior will all attribute in the best way to market the product.

Source: Kotler, Philip, and Kevin Lane Keller. A Framework for Marketing Management. 5th ed. Boston: Prentice Hall, 2012.                       

            

Chapter 6 Summary: Analyzing Business Markets

         Marketers need to know how to market to individual consumers but also how to market to the organizational and government buyers. Organizational buying is defined as, “ the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.” (Kolter 86). 

          A business or organization will make different purchases than an individual consumer. A hospital for example, will buy medical supplies in bulk and they are looking for the best bid and best experience with the medical supplier. It’s also important that a supplier be able to meet the needs of the business and have extra stock ready to deliver at the drop of a hat.

         “A business market consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others. The major industries making up the business market are agriculture, forestry, and fisheries; mining, manufacturing; construction; transportation; communication; public utilities; banking, finance, ad insurance, distribution, and services.” If a company spends too much on the products that they use to make their product, then it reduces their net profit. A marketer for the business market must know their customer specifically and be extremely competitive in order to win the bid.

            The institutional market consists of schools, hospitals, nursing homes, and other institutions that provide goods and services to people in their care. Marketing to institutions is unique because they are usually on a limited budget and they are looking for the best bang for their buck, which sometimes means sacrificing quality. Government markets are affected buy region or locations and have close relationships with the suppliers because they usually only use a few suppliers and need to maintain tight security.

          Marketers must be aware of the unique needs of businesses and their buying processes. The only difference between business buying processes is the product specification and the proposal solicitation.

Source: Kotler, Philip, and Kevin Lane Keller. A Framework for Marketing Management. 5th ed. Boston: Prentice Hall, 2012.                        

Chapter 5 Summary: Analyzing Consumer Markets

           Understanding how people think and their buying process will help any marketing professional to better reach their target consumers and encourage sales. There are several factors that influence consumer behavior but they are broken down into three main categories: cultural, social, and personal factors.

            Cultural factors are the main influence in a person’s buying process. The way you were raised by your family, religion, racial groups, and social class all belong to the cultural factor. Social factors are the second important consideration in the buying process. Groups that you are a member of such as religious, professional, clubs, neighborhoods, etc. are all included in this group. Groups that you choose to be a part of, hope to be a part of, or groups you choose not to be a part of are also all considered social factors. An example would be if a person belongs to a smoking or non-smoking group. The fact that they smoke or not would affect their buying of not only cigarettes, but even where they chose to eat or if they chose to buy something from someone who smokes because the item might smell. Lastly, there are personal factors such as age, stage of life, occupation, and personality. I may not chose to by a RV but someone in the baby boomer generation might because either they are retired or close to being retired and have the time to go camping.

            The chapter also discusses the buying decision process. There are five stages: problem recognition, information search, evaluation of alternatives, purchase decision, and post purchase behavior. I’ll walk you through an example of my latest purchasing process. We recently bought a house and decided that the sectional couch we have was not suited for our living room. It didn’t fit properly and didn’t look like it belonging in the living room because of it’s style and age. Therefore, we recognized the problem; we need a new couch.

             I started doing some research online and looking at furniture stores to get an idea of what I was looking for. I knew that I didn’t want microfiber again because my dogs nearly ruined the other one and I wanted something more durable. After my information search, I evaluated the alternatives buy looking at leather as an option. I decided I wanted a brown or black leather couch with recliners at both ends and preferably one that had a nail head trim. They started out at least $1,200 for a couch, not including tax, warranty, and delivery. We decided that we were not willing to spend that kind of money because with two dogs and a baby, the couch will not last five years.

        I continued searching and found a used one on Craigslist. It was a $2,500 couch, only three years old and was in great condition because they kept in a formal living room that was hardly ever used. We decided that was the couch for us and purchased it. Post purchase behavior can mean buyer’s remorse or satisfaction in the product you chose to purchase. We are satisfied with our purchase.

         If marketers aim to enhance the buying experience in all of the five steps through information they collect from the consumer then they can create a more effective marketing plan, therefore creating more revenue for the product and increasing customer loyalty.

Source: Kotler, Philip, and Kevin Lane Keller. A Framework for Marketing Management. 5th ed. Boston: Prentice Hall, 2012.                        

Chapter 4 Summary: Creating Long-term Loyalty Relationships

One of the key ingredients in any good marketing plan is acquiring new customers and retaining all of your customers. Building relationships with your customers is vital in this process and important in creating customer loyalty. As consumers, we make decisions on our purchases buy weighing the pros and cons, and evaluating the total value from our viewpoint. “This process is called customer-perceived value (CPV). CPV is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives.” (Kolter 54).

The first “real” job I had after I graduated college was as an Emergency Services Assistant for a hospital in Ohio. Part of my job was to work with the company we hired to monitor our customer satisfaction and I was the liaison and trainer for my company. When I first started this job, I thought why in the world would a hospital care about customer service; isn’t it all about taking care of the patients and healing them of their sicknesses?

      Come to find out, you can choose who your doctor is and what hospital to go to when you’re sick. Therefore, we needed to focus on customer service and create loyalty with our patients. Throughout the four and a half years I worked at the hospital, we monitored and improved our customer service responses to a 90% goal. We used the surveys to follow up with patients that had a bad experience and then helped to improve processes or establish new policies in hopes of creating better experiences for our patients.

Another example of using experience and customer service to establish loyalty is my favorite shoe store, Red Coyote Running and Fitness. It is a running store in Classen Curve in Oklahoma City. I had a co-worker that recommended that I buy running shoes at this store but I thought of course it would be expensive. I went to Red Coyote and the guy working there was so helpful. He first had me run on a treadmill barefoot while they videoed my feet while running. He was able to fit me for new shoes, allow me to try them out on the treadmill and outside until I found the perfect pair. Even though they were a little more expensive than Academy, I was willing to pay it because he was so incredibly helpful. Now, my husband and I have bought shoes, socks, clothing, and lights for our stroller. We tell everyone about Red Coyote and recently joined their running club. Thanks to their incredible one-on-one customer service, Red Coyote created a strong and loyal customer base.

 

Customer service is a main priority and should be taken serious in any consumer situation. Once you have loyal customers, whether it’s because of an experience or discount offers, etc. it is even more imperative to keep those customers through strong marketing.

Source: Kotler, Philip, and Kevin Lane Keller. A Framework for Marketing Management. 5th ed. Boston: Prentice Hall, 2012.