Deck 1: An Introduction to Integrated Marketing Communications

Question 1

The chapter opener discusses the decision made by Volkswagen of America to move its advertising from the Crispin Porter + Bogusky agency to Deutsch LA. Your assignment is to compare some of the television commercials created by CP+B with those created by Deutsch since taking over the account. Watch four of the commercials created by each agency that are provided in the Advertising and Promotion playlist for Chapter 1 and answer the following questions.
How would you describe the type of ads created by CP+B for Volkswagen versus those created by Deutsch LA? How are they similar and how do they differ?

Answer 1

Integrated marketing communications play a very important role in the marketing of automobiles. Many consumers base their purchase decisions on product related attributes such as price, quality, reliability, durability and performance, as well as on factors such as style and brand image. A variety of IMC tools are used to provide consumers with information about the various Volkswagen models as well as to create an image that will appeal to the target market for the car. Volkswagen uses all aspects of the promotional mix to market its vehicles. Advertising on television as well as in magazines and newspapers plays a very important role in building awareness and developing and reinforcing the image of the various VW models. Direct marketing is used by sending direct mail pieces such as brochures, DVDs and promotional offers to consumers the company is targeting or those who have indicated an interest in receiving more information and/or purchasing a VW.  (This latter group is referred to as "hand raisers" in the automobile industry). Automotive marketers recognize that the Internet has become an important IMC tool as consumers spend a great deal of time online researching various vehicles before even going to dealerships. They will run use advertising and other IMC tools to drive consumers to their web sites where they provide detailed information about the various models, prices financing options and local dealers and can provide an interactive experience by allowing consumers to examine their vehicles and the various purchase options such as different colors, body styles and accessories. Automobile companies are now using a variety of social media tools which have become an increasingly important part of the digital marketing campaigns of many companies.  Television commercials as well as other videos can be viewed on YouTube and consumers are encouraged to connect with the companies through their Facebook page and on Twitter. Publicity for Volkswagen and its marketing communication campaigns is generated through press releases and other public relations activities that are designed to result in feature stories in magazines and newspapers as well as on the Internet. Automotive markets such as Volkswagen sponsors motor sports as well as various sporting events such as NASCAR, golf and tennis tournaments, ski races and even certain extreme sports to reach their target audience and build brand image.  Promotional efforts for vehicles are extended to dealerships where point-of-purchase displays and materials are provided along with training, contests, and incentives for sales people.  For example, for the campaign launch Volkswagen provided its dealer with a PunchDub days point-of-sale and a Brand Construction kit that contained materials need to create local advertising and to carry the advertising theme to the dealer showroom.

Question 2

Discuss the role of integrated marketing communications in the marketing program of automobile manufacturers such as Volkswagen. How can Volkswagen use the various IMC tools to achieve its objectives of building its brand image and increasing sales in the U.S. market?

Answer 2

Integrated marketing communications play a very important role in the marketing of automobiles. Many consumers base their purchase decisions on product related attributes such as price, quality, reliability, durability and performance, as well as on factors such as style and brand image. A variety of IMC tools are used to provide consumers with information about the various Volkswagen models as well as to create an image that will appeal to the target market for the car. Volkswagen uses all aspects of the promotional mix to market its vehicles. Advertising on television as well as in magazines and newspapers plays a very important role in building awareness and developing and reinforcing the image of the various VW models. Direct marketing is used by sending direct mail pieces such as brochures, DVDs and promotional offers to consumers the company is targeting or those who have indicated an interest in receiving more information and/or purchasing a VW.  (This latter group is referred to as "hand raisers" in the automobile industry). Automotive marketers recognize that the Internet has become an important IMC tool as consumers spend a great deal of time online researching various vehicles before even going to dealerships. They will run use advertising and other IMC tools to drive consumers to their web sites where they provide detailed information about the various models, prices financing options and local dealers and can provide an interactive experience by allowing consumers to examine their vehicles and the various purchase options such as different colors, body styles and accessories. Automobile companies are now using a variety of social media tools which have become an increasingly important part of the digital marketing campaigns of many companies.  Television commercials as well as other videos can be viewed on YouTube and consumers are encouraged to connect with the companies through their Facebook page and on Twitter. Publicity for Volkswagen and its marketing communication campaigns is generated through press releases and other public relations activities that are designed to result in feature stories in magazines and newspapers as well as on the Internet. Automotive markets such as Volkswagen sponsors motor sports as well as various sporting events such as NASCAR, golf and tennis tournaments, ski races and even certain extreme sports to reach their target audience and build brand image.  Promotional efforts for vehicles are extended to dealerships where point-of-purchase displays and materials are provided along with training, contests, and incentives for sales people.  For example, for the campaign launch Volkswagen provided its dealer with a PunchDub days point-of-sale and a Brand Construction kit that contained materials need to create local advertising and to carry the advertising theme to the dealer showroom.

Question 3

The chapter opener discusses the decision made by Volkswagen of America to move its advertising from the Crispin Porter + Bogusky agency to Deutsch LA. Your assignment is to compare some of the television commercials created by CP+B with those created by Deutsch since taking over the account. Watch four of the commercials created by each agency that are provided in the Advertising and Promotion playlist for Chapter 1 and answer the following questions.
Do you think the type of commercials created by CP+B were effective in helping build the brand image of Volkswagen and differentiate it from competitors such as Honda, Toyota, Hyundai, and Nissan?

Answer 3

The primary goal of the "PunchDub" campaign developed by Deutsch LA was to raise awareness of the Volkswagen product line in the North American market.  Volkswagen of America has very aggressive growth plan for this market as the company plans to double sales from 400,000 to 800,000 vehicles by 2018.  However, one of the challenges VW faces is that consumers know the VW brand but are not buying the company's cars as awareness is very high (nearly 80%) but market share is low (only 2%).  And while overall awareness of the Volkswagen brand name is high, consumers recognize only a few of the VW models such as the Beetle and Jetta.  The "PunchDub" campaign was designed to address this problem and make consumers aware of the other vehicles in the VW product line such as the Passat, Golf, GTI, Routan, Eos Tiguan, Touareg, and the new CC sedan. The campaign was built around the classic Punch Buggy (or Slug Bug) game that many consumers played in the heyday of the original VW Beetle where the first person to see one of the iconic vehicles would yell "Punch Bug" and playfully slug his or her friend.  Deutsch put a new twist on the game by encouraging consumers to punch someone when they saw any VW model which was a clever way to increase attention to, and awareness of the VW product line. It is important to note that one of the major benefits of the campaign is that it worked very well online both through social media and on the Volkswagen web site.  An online version of "Punch Dub" also debuted on the popular Facebook social network site on Super Bowl Sunday which encouraged people to dole out virtual "slugs" to friends and family for a chance to win a weekly prize (6-month leases on specific VW vehicles listed online) and the grand prize of a new Volkswagen CC sedan.  Players could pick any one of thirteen VW vehicles, customize their punch and choose a Facebook friend to punch.  The more friends they punched the better the chances to winning prize.  The game was also available on the Volkswagen of America website and an online guide to the game was also available which players could use to develop and hone their punching technique.  The PunchDub campaign was also supported by heavy advertising in traditional media including the Super Bowl where the first TV spot was one of the most popular commercials to air during the game.  Within a few days the commercial had received more than 1 million online views while the game had 5,000 registered users and nearly 30,000 punches were thrown. The two-month campaign ran for two months and included outdoor, radio and newspaper advertising as well as an extensive public relations campaign that generated feature articles and stories in BusinessWeek  and The Wall Street Journal as well as in local newspapers and on local television stations across the country.  The campaign was also extended to Volkswagen dealerships as special point-of-sale-kits were developed to promote a National Sales event called "PunchDubDays" which included special offers on various VW models.
The "PunchDub" campaign was implemented by using a variety of IMC tools and was a very good way to address the problem Volkswagen was facing of low awareness for many of the vehicles in its product line.  The PunchDub game that was available on the VW web site provided consumers with an entertaining interactive experience and helped build awareness of the entire product line.  In the second phase of the campaign Deutsch LA continued to showcase the entire VW product line but began to focus on specific attributes and features of the vehicles and how Volkswagen delivers German engineering at a great value. It is hard to find fault with the "PunchDub" campaign as it had a specific goal and the IMC strategy was well designed and executed.  One limitation that might be noted is that of whether consumer would actually take the time to become engaged with the online campaign and play the "PunchDub" game.  Consumers who did not do so would not learn more about the VW product line and one might argue that the IMC program would have been more effective if the monies had been spent by promoting the entire product line more directly.  However, this would have been very expensive and may not have been as engaging and effective as the "PunchDub" campaign.

Question 4

Evaluate the "PunchDub" campaign that the Deutsch LA agency developed when it took over the Volkswagen of America account. Discuss the pros and cons of the campaign and assess the way it was implemented by the agency.

Question 5

The chapter opener discusses the decision made by Volkswagen of America to move its advertising from the Crispin Porter + Bogusky agency to Deutsch LA. Your assignment is to compare some of the television commercials created by CP+B with those created by Deutsch since taking over the account. Watch four of the commercials created by each agency that are provided in the Advertising and Promotion playlist for Chapter 1 and answer the following questions.
One of the objectives of the advertising created by Deutsch LA for Volkswagen of America is to increase awareness of the VW product line beyond the Bug and Jetta models. Discuss how the commercials created by Deutsch help achieve this objective.

Question 6

Discuss how integrated marketing communications differs from traditional advertising and promotion. What are some of the reasons more marketers are taking an IMC perspective to their advertising and promotional programs?

Question 7

Compare the new definition of integrated marketing communications developed by Don Schultz with the original definition that was developed by the American Association of Advertising Agencies. How do they differ?

Question 8

Discuss three specific technological developments that are having an impact on integrated marketing communications. Discuss some of the ways this technology is impacting the IMC program of various companies.

Question 9

Discuss the role integrated marketing communications plays in the brand building process. Find an example of a company that has been able to build and maintain its brand identity without relying primarily on mass-media advertising.

Question 10

Discuss the challenges companies face with respect to building and maintaining a favorable brand image during a recession such as the one the global economy has been facing for the past several years. What changes do marketers need to make in their IMC programs during a recession?

Question 11

Discuss the opportunities and challenges facing marketers with regard to the use of mobile marketing. Discuss the various ways marketers might send messages to consumers on their mobile phones.

Question 12

Why are companies such as Procter Gamble moving away from the use of traditional mass-media advertising and looking for other contact points than can be used to connect with consumers? How can various IMC tools be used by companies such as P G to build and maintain relationships with their customers?

Question 13

Why is it important for those who work in the field of advertising and promotion to understand and appreciate all the various integrated marketing communication tools, not just the area in which they specialize?