Chapter 4: Detailed Outline

I. Targeting
     - Targeting a specific audience is the key to all Marcom decisions (targeting, positioning, setting objectives and budgeting).
     - Targeting allows to:
          • More precisely deliver the messages
          • Prevent wasted coverage to people falling outside the targeted market

II. Consumer Characteristics
     - The audience characteristics influence what people consume and how they respond to Marcom. These characteristics can be measured through 4 different strategies:
          • Behaviorgraphics
          • Psychographics
          • Demographics
          • Geodemographics

III. Behaviorgraphic targeting
     a. Definition
     - Targeting based on people’s behavior, with respect to a particular product category or class of related products, through:
          • Online search activity.
          • Past purchase behavior: the best predictor of one’s future behavior is his/her past behavior.
     b. Method
     - Audience Management Systems track internet users’ surfing behavior in order to target them with specific advertisements.
     c. Privacy concerns
     - Web surfers are most likely to be targeting by ads of products that are relevant to their interests, which means that the privacy of consumers can be invaded.
     - The harm is that the Big Brother might be watching us.

IV. Psychographic targeting
     a. Definition
     - Targeting based on:
          • Psychological makeup.
          • Lifestyles including attitudes, values and motivations.
     b. 4 types of consumers (bank case)
          • Worried Traditionalists
          • Bank Loyalists
          • Secured Investors
          • Thrifty Bankers
     c. Cultural map of types
          • Individualists
          • Fatalists
          • Hierarchists
          • Egalitarians

V. Demographic targeting
     a. Definition
     - Targeting based on measurable population characteristics such as age, ethnicity and income.
     b. Considered Factors
          • Age structure of the population
          • Changing household
          • Ethnic population development

VI. US: VALS Segmentation
     a. Innovators
     - Successful, sophisticated people. They are characterized with high self-esteem. They are change leaders and most receptive to new ideas and technologies.
     b. Thinkers
     - They are motivated by ideals. They are mature, satisfied, comfortable and reflective. They are well-educated and well-informed about the world.
     c. Believers
     - They are motivated by ideals. They are conservative and conventional. They are people with concrete beliefs who act based on traditions and value family, religion, community and the nation.
     d. Achievers
     - They are motivated by achievement. They are goal-oriented and socially mobile. They value predictability, consensus and stability over risk. They are politically conservative and respect authority and status quo.
     e. Strivers
     f. Experiencers
     g.
     h. Survivors

VII. Geodemographic targeting
     a. Definition
     - Based on demographic of consumers who reside with a specific geographic cluster.
     b. Bohemian mix:
     - Young and mobile urbanites that represent the nation’s most liberal lifestyles.
     - They are more likely to be early adopters.

Chapter 4: Marcom Targeting

I. Targeting Customers and Prospects
II. Behaviorgraphic Targeting
     1. Online Behavioral Targeting
     2. Privacy Concerns
III. Geodemographic Targeting
IV. Demographic Targeting
     1. The Change Age Structure
          a. Children and Teenagers
               i. Preschoolers
               ii. Elementary-school-age Children
               iii. Tweens
               iv. Teenagers
          b. Young Adults
          c. Middle-Aged and Mature Consumers
               i. Middle-Aged
               ii. Mature Consumers
     2. The Ever-Changing American Household
     3. Ethnic Population Developments
          a. African-Americans
          b. Hispanic Americans
          c. Asian Americans

Chapter 3: Detailed Outline

I. Ethical Issues in Marketing Communications
     - As Marcom specialists, we need to take several decisions that might cause some unethical implications.
     - Some Marcom specialists may be pushed by the will to reach immediately their goals.
     - What is unethical and might be rewarded in a short run, can be costly in the long run.
     1. The Ethics of Targeting
          - What is ethical is what is right or wrong, what is moral; it is linked to societal notions such as: honesty, honor, virtue and integrity.
          a. Targeting to Children and Teens
               • Target a specific segments of customers instead of using the shotgun approach
               • Many products that target children are unnecessary = exploitative advertising
               • Using learning tools, and exploiting the children’s trust in educational materials
          b. Targeting Economically Disadvantaged Consumers
               • Tobacco and alcohol products use of billboards
               • The case of R. J. Reynolds targeting the African-Americans to sell menthol cigarettes
          c. Is Targeting Unethical or Just Good Marketing?
               • Proponents of targeting
                    • Targeting benefits rather than harms the consumers
                    • Providing the customers with best suited products
               • Opponents
                    • Ability to choose a product that better accommodates one’s needs
     2. Ethical Issues in Advertising
          a. Advertising Is Untruthful and Deceptive
          • 2/3 of Americans think that advertising is deceptive
          • Deception:
               • Advertising falsely represents a product + consumers believe the false representation
          b. Advertising Is Manipulative
               • People can be cooperative = without conscious awareness
          c. Advertising Is Offensive and in Bad Taste
               • Insulting to human intelligence + vulgar + offensive to the tastes of many consumers
               • Sexual appeal and the use of violence also exist in advertising
          d. Advertising Creates and Perpetuates Stereotypes
               • Narrow and predictable representation of minorities
               • Minorities portrayed disproportionally
               • Women stereotyped as sex objects
               • Senior citizens feeble
          e. People Buy Things They Do Not Really Need
               • Is this unethical?
          f. Advertising Plays on People’s Fears and Insecurities
               • Advertising appeals to the negative consequences of not buying the products (rejection by others, failure in personal life, etc.)
II. Regulation of Marketing Communications
     1. When Is Regulation Justified?
          a. Benefits
               1. Consumers choice is informed (Smoking kills)
               2. Better informed customer -> Better quality
               3. Price reduction due to the informational market power
          b. Costs
               • Paying the costs of complying with a regulatory remedy
     2. Regulation of Marketing Communications by Federal Agencies
          a. Deceptive Advertising
          • When the impression left by the claim or campaign is false, and when the claim is believe by consumers.
               i. Misleading
                    • A misrepresentation or a misleading omission that is likely to mislead the consumer
               ii. Reasonable consumer
                    • The perspective of a reasonable consumer
               iii. Material
                    • The misrepresentation or the omission must be material
          b. Unfair Practices
               • “Acts or practices that cause or are likely to cause substantial injury to consumers, which is not reasonably avoided by consumers themselves and not outweighed by countervailing benefits to consumers or competition”. More explicitly, unfair advertising:
                    i. Offends public policy
                    ii. Is immoral
                    iii. Causes injury to costumers, competitors or other businesses
III. Corrective Advertising
     • When a firm misleads consumers, it has to do corrective advertising
     • State Agencies’ Regulation of Marcom: departments of consumer affairs or consumer protection to stop fraudulent business practices
IV. Advertising Self-Regulation
     • Regulation undertaken by the advertising community itself
     • Media Self-Regulation
          • Advertising media clearance: self-regulation undertaken by media that takes place behind the scenes before the commercial reaches consumers
          • Advertising Media clearance  Legal department’s approval -> media approval -> FTC, state and self-regulators post hoc regulation

Chapter 3: Ethical, Regulatory, and Environmental Issues in Marketing Communications

I. Overview
II. Ethical Issues in Marketing Communications
     1. The Ethics of Targeting
          a. Targeting to Children and Teens
          b. Targeting Economically Disadvantaged Consumers
          c. Is Targeting Unethical or Just Good Marketing?
     2. Ethical Issues in Advertising
          a. Advertising Is Untruthful and Deceptive
          b. Advertising Is Manipulative
          c. Advertising Is Offensive and in Bad Taste
          d. Advertising Creates and Perpetuates Stereotypes
          e. People Buy Things They Do Not Really Need
          f. Advertising Plays on People’s Fears and Insecurities
     3. Ethical Issues in Public Relations
     4. Ethical Issues in Packaging and Branding
     5. Ethical Issues in Sales Promotions
     6. Ethical Issues in Online Marketing
     7. Fostering Ethical Marketing Communications
III. Regulation of Marketing Communications
     1. When Is Regulation Justified?
          a. Benefits
          b. Costs
     2. Regulation of Marketing Communications by Federal Agencies
          a. Deceptive Advertising
               i. Misleading
               ii. Reasonable consumer
               iii. Material
          b. Unfair Practices
          c. Information Regulation
          d. Product Labeling
          e. Prescription Drug Advertising
     3. State Agencies’ Regulation of Marketing Communications
     4. Advertising Self-Regulation
          a. Media Self-Regulation
          b. The National Advertising Review Council
IV. Environment, or “Green” Marketing Communications
     1. Green Marketing Initiatives
          a. Green Advertising
          b. Packaging Responses
          c. Seal-of-Appeal Programs
          d. Cause-Oriented Programs
          e. Point-of-Purchase Programs
     2. Guidelines for Green Marketing

Chapter 2: Detailed Outline

I. Desired Outcomes of Marcom Efforts
     1. Enhance brand equity and to affect behavior
     2. Demonstrate financial accountability
II. The Concept of Brand Equity
     • A brand:
     “A name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and differentiate them from those of competition”.
     • Brand equity:
     - A brand possesses equity when consumers believe the brands have the ability and willingness to deliver on their brand promises.
     - Brand equity’s definition differs depending on the perspective: firm-based or customer-based
          1. A Firm-Based Perspective on Brand Equity
               a. Increase market share
               b. Increase brand loyalty
               c. Being able to charge premium prices
               d. Earning revenue premium
          2. A Customer-Based Perspective on Brand Equity
               - Store in their collective mind favorable, strong and unique brand associations
               a. Brand Awareness
                    - Whether the brand name comes to the mind or not
                    - The pyramid of brand awareness goes with: unawareness of the brand at the bottom, followed by brand recognition, then brand recall and at the top TOMA (top of mind).
               b. Brand Image
                    Types of associations that come to the consumer’s mind when contemplating a particular brand, and these are:
                         • Sincerity: down to Earth, honest, wholesome and cheerful.
                         • Excitement: daring, spirited, imaginative, up-to-date
                         • Competence: reliable, intelligent and successful
                         • Sophistication: upper-class and charming
                         • Ruggedness: tough and outdoorsy
          3. How Can Brand Equity Be Enhanced?
               a. Initial choice of (+) brand identity
               b. A good brand name and logo, forging favorable, strong and unique associations
               c. Effective integration of all communication tools
          4. What Benefits Result from Enhancing Brand Equity?
               a. Increasing purchases
               b. Increasing brand loyalty
          5. Characteristics of World-Class Brands (10)
               a. The brand excels at delivering the benefits customers truly desire
               b. The brand stays relevant
               c. The pricing system is based on consumers’ perceptions of value
               d. The brand is properly positioned
               e. The brand is consistent
               f. The brand portfolio and hierarchy make sense
               g. The brand makes use of and coordinates a full repertoire of marketing activities to build equity
               h. The brand’s managers understand what the brand means to consumers
               i. The brand is given proper support, and the support is sustained over the long run
               j. The company monitors sources of brand equity

Chapter2: Marcom's Challenges: Enhancing Brand Equity, Influencing Behavior, and Being Accountable

I. Desired Outcomes of Marcom Efforts
II. The Concept of Brand Equity
    1. A Firm-Based Perspective on Brand Equity
    2. A Customer-Based Perspective on Brand Equity
        a. Brand Awareness
        b. Brand Image
    3. How Can Brand Equity Be Enhanced?
    4. What Benefits Result from Enhancing Brand Equity?
    5. Characteristics of World-Class Brands
III. Affecting Behavior and Achieving Marcom Accountability
    1. Difficulty of Measuring Marcom Effectiveness
        a. Choosing a Metric
        b. Gaining Agreement
        c. Collecting Accurate Data
        d. Calibrating Specific Effects
    2. Assessing Effects with Marketing-Mix Modeling

Chapter 1: Detailed Outline

I.The Nature of Marketing Communications
     • Marketing Communications at the Brand Level
          + A brand is a covenant with the consumer whereby the mere mention of the name triggers expectations about what the brand will deliver in terms of quality, convenience, status, other critical buying considerations.
II. The Integration of Marketing Communications
     1. What Exactly is IMC?
          + It is a communications process that entails, the planning, creation, integration, and implementation of diverse forms of Marcom (advertisements, sales promotion publicity releases, events, etc.) that are delivered over time to a brand’s targeted customers and prospects.
     2. The Payoff from IMC: The Value of Synergy
          + Combining multiple methods with one another yield more positive communication results than do the tools used individually.
     3. Key IMC Features
          a. Start with the customer or Prospect
          b. Use any Form of Relevant Contact or Touch Point
          c. Speak with a Single Voice
               + The purpose is to achieve synergy.
          d. Build Relationships
               + Make the clients repeat purchases and are loyal.
          e. Affect Behavior
               + Move people to action.
     4. Changes in Marketing Communication Practices
          a. Reduced Dependence on Mass Media Advertising
               + Other communication forms can be most effective and cost-efficient.
          b. Increased Reliance on Highly Targeted Communication Methods
               + Direct mail, opt-in emailing, specialized magazines and event sponsoring are good examples.
          c. Heightened Demands on Suppliers
               + Communication suppliers are advertising agencies, sales promotion firms, and public relations agencies.
          d. Increased Efforts to Assess Communications’ Return on Investment
               + Shareholders are prudent about their investments.
III. A Model of the Marketing Communications Decision-Making Process
     • Fundamental Marcom Decisions
     a. Targeting
          + Selecting the segment of audience that must be targeted for effective and efficient Marcom.
     b. Positioning
          + There must be a central idea that encapsulates the brand’s meaning and differentiates the brand from its competitors.
     c. Setting Objectives
          + Marcom decisions must be made to reach the organization’s goals.
     d. Budgeting
          + There must be the use of top-down budgeting and bottom-up budgeting
     e. A Concluding Mantra
          + IMC should be:
               - Directed to a particular target market.
               - Clearly positioned.
               - Created to achieve a specific objective.
               - Undertaken to accomplish the objective within budget constraints.