Advertising Promotion and Other Aspects of Integrated Marketing
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Advertising, Promotion, and other aspects of Integrated Marketing Communications Terence A. Shimp University of South Carolina Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States Advertising, Promotion, & Other Aspects of © 2010, 2007 South-Western, Cengage Learning Integrated Marketing Communications, 8e Terence A. Shimp ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means—graphic, Vice President of Editorial, Business: electronic, or mechanical, including photocopying, recording, taping, Web Jack W. Calhoun distribution, information storage and retrieval systems, or in any other manner—except as may be permitted by the license terms herein. Vice President/Editor-in-Chief: Melissa S. Acuna Acquisitions Editor: Mike Roche Sr. Developmental Editor: Susanna C. Smart For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706 Marketing Manager: Mike Aliscad Content Project Manager: Corey Geissler For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions Media Editor: John Rich Further permissions questions can be emailed to Production Technology Analyst: Emily Gross [email protected] Frontlist Buyer, Manufacturing: Diane Gibbons Production Service: PrePressPMG Library of Congress Control Number: 2008939395 Sr. Art Director: Stacy Shirley ISBN 13: 978-0-324-59360-0 Internal Designer: Chris Miller/cmiller design ISBN 10: 0-324-59360-0 Cover Designer: Chris Miller/cmiller design Cover Image: Getty Images/The Image Bank South-Western Cengage Learning Permission Aquistion Manager/Photo: 5191 Natorp Boulevard Deanna Ettinger Mason, OH 45040 Permission Aquistion Manager/Text: USA Mardell Glinski Schultz Cengage Learning products are represented in Canada by Nelson Education, Ltd. For your course and learning solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.ichapters.com Printed in Canada 12345671211100908 Dedication I dedicate this 8th edition of Advertising, Promotion, and Other Aspects of Integrated Marketing Communications to all of my family members, past and present. The depth of my love and gratitude for all of you is immeasurable. I also acknowledge the inspiration and support I have received through the years from my faculty colleagues and Ph.D. students, many of whom honored me to a degree they cannot possibly realize when they traveled from around the country and sur- prised me with a marvelous retirement party. brief contents Preface xv About the Author 1 Part 1 Integrated Marketing Communications: Processes, Brand Equity, and Marcom’s Role in Introducing New Brands 2 1 Overview of Integrated Marketing Communications 4 2 Marketing Communications Challenges: Enhancing Brand Equity, Influencing Behavior, and Being Accountable 32 3 Facilitating the Success of New Brands 60 Part 2 The Fundamental Marcom Decisions: Targeting, Positioning, Objective Setting, and Budgeting 94 4 Targeting 96 5 Positioning 126 6 Objective Setting and Budgeting 154 Part 3 Advertising Management 178 7 Overview of Advertising Management 180 8 Effective and Creative Advertising Messages 206 9 Message Appeals and Endorsers 240 10 Measuring Advertising Message Effectiveness 280 11 Advertising Media: Planning and Analysis 316 12 Traditional Advertising Media 358 13 Internet Advertising 392 14 Other Advertising Media 420 Part 4 Sales Promotion Management 442 15 Sales Promotion and the Role of Trade Promotions 444 16 Sampling and Couponing 480 17 Premiums and Other Promotions 508 Part 5 Other Marcom Tools 532 18 Marketing-Oriented Public Relations and Word-of-Mouth Management 534 19 Event and Cause Sponsorships 560 20 Signage and Point of Purchase Communications 574 Part 6 Marcom Constraints 602 21 Ethical, Regulatory, and Environmental Issues 604 Glossary 639 Name Index 645 Subject Index 650 iv contents Preface xv About the Author 1 Part 1 Integrated Marketing Communications: Processes, Brand Equity, and Marcom’s Role in Introducing New Brands 2 Chapter 1 Marcom Outcomes 26 • Program Evaluation 27 Overview of Integrated Marketing Summary 27 Communications 4 Appendix 28 Discussion Questions 29 End Notes 30 Marcom Insight: Appealing to Youth and Reinvigorating a Brand Image: State Farm’s Chapter 2 nowwhat.com Campaign 5 Introduction 6 Marketing Communications The Tools of Marketing Communications 7 Challenges: Enhancing Brand Equity, The Integration of Marketing Communications 8 Why Integrate? 8 • IMC Skeptics 9 • IMC Influencing Behavior, and Being and Synergy 9 • And Now a Definition of Accountable 32 IMC 10 Key IMC Features 10 Marcom Insight: When Polls Fail to Reveal Key Feature #1: The Consumer or Business the Complete Picture 33 Customer Must Represent the Starting Point Introduction 34 for All Marketing Communications Brand Equity 34 Activities 10 A Firm-Based Perspective on Brand Equity Global Focus: Creating a Pepsi Commercial 35 • A Customer-Based Perspective on Brand in China 12 Equity 36 • Enhancing Brand Equity 41 Key Feature #2: Use Any and All Marcom IMC Focus: Neuromarketing and the Case of Tools That Are Up to the Task 13 Why Coca-Cola Outsells Pepsi 43 IMC Focus: The Laundry Hanger as an What Benefits Result from Enhancing Brand Advertising Touch Point 15 Equity? 46 Key Feature #3: Multiple Messages Must Global Focus: The World’s Perception of America 47 Speak with a Single Voice 16 • Key Feature Characteristics of World-Class Brands 48 #4: Build Relationships Rather Than Engage Affecting Behavior and Achieving Marcom in Flings 17 • Key Element #5: Don’t Lose Accountability 50 Focus of the Ultimate Objective: Affect Difficulty of Measuring Marcom Behavior 18 • Obstacles to Implementing the Effectiveness 51 • Assessing Effects with Key IMC Features 20 Marketing Mix Modeling 53 The Marketing Communications Decision-Making Process 20 IMC Focus: Harley-Davidson—An Iron Horse Fundamental Marcom Decisions 21 • for Rugged Individualists, Including Females! 54 • Marcom Implementation Decisions 23 Summary 55 v vi Contents Discussion Questions 55 Quantifying the Adoption-Influencing End Notes 56 Characteristics 69 Brand Naming 71 Chapter 3 What Constitutes a Good Brand Name? 71 IMC Focus: A Musical Toothbrush That Encourages Facilitating the Success Children to Brush Longer 74 of New Brands 60 The Brand-Naming Process 77 • The Role of Logos 79 Marcom Insight: First the Taurus, Next the Pacakaging 81 • Five Hundred, and then Taurus’s Return 61 Packaging Structure 81 Evaluating the Package: The VIEW Model 84 • Quantifying Introduction 62 the VIEW Components 87 • Designing a Marcom and Brand Adoption 62 Package 88 Brand Characteristics That Facilitate Summary 89 Adoption 64 Discussion Questions 90 Global Focus: Washing Machines for the End Notes 91 Masses in Brazil, China, and India 65 Part 2 The Fundamental Marcom Decisions: Targeting, Positioning, Objective Setting, and Budgeting 94 Chapter 4 Discussion Questions 123 End Notes 124 Targeting 96 Chapter 5 Marcom Insight: Reaching Teens by Appealing to Cheerleaders 97 Positioning 126 Introduction 98 “ ” ’ Behaviorgraphic Targeting 98 Marcom Insight: McBucks :Its Not the Online Behavioral Targeting 100 • Privacy McDonald’s You’ve Always Known 127 Concerns 101 Introduction 128 Psychographic Targeting 101 Positioning in Theory: A Matter of Creating Customized Psychographic Profiles 102 • Meaning 128 General Purpose Psychographic The Meaning of Meaning 129 • Meaning Profiles 102 Transfer: From Culture to Object to Geodemographic Targeting 106 Consumer 129 Demographic Targeting 107 Positioning in Practice: The Nuts and Bolts 131 Global Focus: General Electric’s Targeting Benefit Positioning 134 Indians with Ultrasound Machines 108 IMC Focus: Not Lovely, but Successful 135 The Changing Age Structure 109 Global Focus: The Symbolism of Certifying IMC Focus: College Students: An Inviting Products as Fair Traded 136 Target for Odor-Fighting Products 114 Attribute Positioning 137 • Repositioning a The Ever-Changing American Household Brand 137 117 • Ethnic Population Developments 118 Implementing Positioning: Know Thy IMC Focus: A Special Beverage for Latino Consumer 140 Consumers, Clamato 121 The Consumer Processing Model (CPM) 141 • The Hedonic, Experiential Model Summary 122 (HEM) 147 Contents vii Summary 149 The Hierarchy of Marcom Effects 157 Discussion Questions 150 IMC Focus: This Cat(fight) Is a Dog 160 End Notes 151 Requirements for Setting Suitable Marcom Objectives 162 • Should Marcom Chapter 6 Objectives Be Stated in Terms of Sales? 164 Marcom Budgeting 166 Objective Setting and Budgeting 154 Budgeting in Theory 166 Global Focus: The Top-25 Global Marketers’ Advertising Spending 167 Marcom Insight: Impressive Results Produced by Spending Big on Cavemen Characters and a Budgeting in Practice 169 Talking Gecko 155 Summary 175 Discussion Questions 176 Introduction 156 End Notes 176 Setting Marcom Objectives 156 Part 3 Advertising Management 178 Chapter 7 Chapter 8 Overview of Advertising Effective and Creative Advertising Management 180 Messages 206 Marcom Insight: Is Advertising Rocket Science? 181 Marcom Insight: Perhaps the Greatest TV Introduction 182 Commercial of All Time 207 The Magnitude of Advertising 183 Introduction 208 Global Focus: Creating Effective Advertising 208 Which Source of Product • Information Do Consumers Most Trust? 184 Creativity: The CAN Elements 209