chapter 6

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CHAPTER 6 Communicating Value via Integrated Marketing Programs

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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


A. INTRODUCTION

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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


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



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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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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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


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


brand socially

• Slice of life

• Product placement

7. Transform the consumption experience

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C. MESSAGE STRATEGY

4. Message strategy


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



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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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




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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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



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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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


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

chapter 6

Documents

accessible website

footwear products

integrated marketing

randy merrell cowboy

cowboy boots

hiking boots

message strategy

accessories men