Marketing_Management_14th_Edition-min

478 PART 7 COMMUNICATING VALUE
Marketing Communications, Brand Equity,
and Sales
In this new communication environment, although advertising is often a central element of a
marketing communications program, it is usually not the only one—or even the most important
one—for sales and building brand and customer equity. Like many other firms, over a five-year
period from 2004 to 2008, Kimberly-Clark cut the percentage of its marketing budget spent on TV
from 60 percent to a little over 40 percent as it invested more heavily in Internet and experiential
marketing. 5 Consider Gap’s effort in launching a new line of jeans. 6
Gap By 2009, with sales slumping, Gap decided to celebrate the 40th anniversary of
the opening of its first Gap store by introducing the “Born to Fit” 1969 Premium Jeans line. For
its launch, Gap moved away from its typical media-intensive ad campaign, as exemplified by
its popular 1998 “Khakis Swing” holiday ads. The campaign featured newer communications
elements such as a Facebook page, video clips, a realistic online fashion show on a virtual
catwalk, and a StyleMixer iPhone app. The app enabled users to mix and match clothes and organize
outfits, get feedback from Facebook friends, and receive discounts when near a Gap store. Simultaneous
in-store acoustic shows across 700 locations and temporary pop-up denim stores in major urban locations
added to the buzz.
Gap
MARKETING COMMUNICATIONS MIX The marketing communications mix consists
of eight major modes of communication: 7
1. Advertising—Any paid form of nonpersonal presentation and promotion of ideas, goods,
or services by an identified sponsor via print media (newspapers and magazines), broadcast
media (radio and television), network media (telephone, cable, satellite, wireless), electronic
media (audiotape, videotape, videodisk, CD-ROM, Web page), and display media (billboards,
signs, posters).
2. Sales promotion—A variety of short-term incentives to encourage trial or purchase of a product
or service including consumer promotions (such as samples, coupons, and premiums),
trade promotions (such as advertising and display allowances), and business and sales force
promotions (contests for sales reps).
3. Events and experiences—Company-sponsored activities and programs designed to create
daily or special brand-related interactions with consumers, including sports, arts, entertainment,
and cause events as well as less formal activities.
4. Public relations and publicity—A variety of programs directed internally to employees of the
company or externally to consumers, other firms, the government, and media to promote or
protect a company’s image or its individual product communications.
5. Direct marketing—Use of mail, telephone, fax, e-mail, or Internet to communicate directly
with or solicit response or dialogue from specific customers and prospects.
6. Interactive marketing—Online activities and programs designed to engage customers or
prospects and directly or indirectly raise awareness, improve image, or elicit sales of products
and services.
7. Word-of-mouth marketing—People-to-people oral, written, or electronic communications
that relate to the merits or experiences of purchasing or using products or services.
8. Personal selling—Face-to-face interaction with one or more prospective purchasers for the
purpose of making presentations, answering questions, and procuring orders.
Table 17.1 lists numerous communication platforms. Company communication goes
beyond these. The product’s styling and price, the shape and color of the package, the salesperson’s
manner and dress, the store décor, the company’s stationery—all communicate something to buyers.
Every brand contact delivers an impression that can strengthen or weaken a customer’s view of
a company. 8
Marketing communication activities contribute to brand equity and drive sales in many ways:
by creating brand awareness, forging brand image in consumers’ memories, eliciting positive brand
judgments or feelings, and strengthening consumer loyalty.