Integrated Marketing Communication-1

An Introduction to Integrated Marketing Communications 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

ObjectivesTo examine the promotional function and the growing importance of advertising and other promotional elements in the marketing programs of domestic and foreign companies. 2. To introduce the concept of integrated marketing communications (IMC) and consider how it has evolved. 3. To examine reasons for the increasing importance of the IMC perspective in planning and executing advertising and promotional programs.

Objectives

4. To introduce the various elements of the promotional mix and consider their roles in an IMC program. 5. To examine how various marketing and promotional elements must be coordinated to communicate effectively. 6. To introduce a model of the IMC planning process and examine the steps in developing a marketing communications program.

2005 McGraw-Hill Ryerson Limited

PromotionCoordination of all seller-initiated efforts to set up channels of information and persuasion to sell goods and services or to promote an idea.


What is Marketing?Marketing: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved BY AMA July 2013 ) 2007 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinValueRelationship marketingMass customizationCustomer relationship management (CRM)ValueRelationship marketingMass customization

Marketing MixThese four Psproduct, price, place (distribution), and promotionare elements of the marketing mix. The basic task of marketing is combining these four elements into a marketing program to facilitate the potential for exchange with consumers in the marketplace.

Coordinated Marketing Mix Elements Build Image 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Traditional approach to Marketing Communication Many marketers built strong barriers around the various marketing and promotional functions and planned and managed them as separate practices, with different budgets, different views of the market, and different goals and objectives.

Traditional Approach to Marketing Communications 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

These companies failed to recognize that the wide range of marketing and promotional tools must be coordinated to communicate effectively and present a consistent image to target markets.

During the 1980s, many companies came to see the need for more of a strategic integration of their promotional tools. These firms began moving toward the process of integrated marketing communications (IMC), which involves coordinating the various promotional elements and other marketing activities that communicate with a firms customers.

Contemporary IMC Approach 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Defining IMCIMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences. 2007 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinThe goal of IMC is to generate short-term financial returns and build long-term brand value.


Importance of IMCConsumers Point of ViewIMC helps link elements of promotional campaign to clearly and accurately represent the brand. Relationship MarketingAllows marketers to create, maintain, or enhance long-term relationships with customers or stakeholders.More cost-effective to retain customers than acquire new ones.


Demand for accountability and Measurement of OutcomesRecognized as a business processMultiple relevant audiencesA Contemporary Perspective of IMC 2007 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinIMC

Reasons for the Growing Importance of IMC 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumers mind.1. Coca-Cola$70.52. Microsoft$65.13. IBM$51.84. GE$42.35. Intel$31.16. Nokia$29.47. Disney$28.08. McDonalds$24.79. Marlboro$22.210. Mercedes$21.4IMC plays a major role in the process of developing and sustaining brand identity and equity.IMC and Branding


AdvertisingDirect MarketingInteractive/Internet MarketingSales PromotionPublicity/PublicRelationsPersonal SellingAdvertisingDirect MarketingInteractive/Internet MarketingSales PromotionPublicity/PublicRelationsBasic Elements of the Promotional Mix 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Primary vs. Selective Demand AdvertisingNational AdvertisingRetail/Local AdvertisingBusiness-to-Business AdvertisingProfessional AdvertisingClassifications of Advertising 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

National AdvertisingAdvertising done by large companies on a nationwide basis or in most regions of the country. Most of the ads for well-known companies and brands that are seen on prime-time TV or in other major national or regional media are examples of national advertising. The goals of national advertisers are to inform or remind consumers of the company or brand and its features, benefits, advantages, or uses and to create or reinforce its image so that consumers will be predisposed to purchase it.

Retail/Local Advertising

Advertising done by retailers or local merchants to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment. Retail or local advertising tends to emphasize specific patronage motives such as price, hours of operation, service, atmosphere, image, or merchandise assortment.

Primary and Selective demand advertisingPrimary-demand advertising is designed to stimulate demand for the general product class or entire industry. Selective-demand advertising focuses on creating demand for a specific companys brands. Most advertising for products and services is concerned with stimulating selective demand and emphasizes reasons for purchasing a particular brand.

Business-to-Business Advertising Advertising targeted at individuals who buy or influence the purchase of industrial goods or services for their companies.

Professional AdvertisingAdvertising targeted to professionals such as doctors, lawyers, dentists, engineers, or professors to encourage them to use a companys product in their business operations. It might also be used to encourage professionals to recommend or specify the use of a companys product by end-users.

Trade AdvertisingAdvertising targeted to marketing channel members such as wholesalers, distributors, and retailers. The goal is to encourage channel members to stock, promote, and resell the manufacturers branded products to their customers.


Direct MarketingCommunication directly with target consumers to generate a response or transaction.


DirectResponseAdvertisingDirectMailTelemarketingCatalogsShoppingChannelsDirect Marketing is Part of IMCDirect Marketing 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Internet MarketingInteractive media allow two-way communication.Users can participate in and modify the form and content of information they receive.


Obtains customer database informationCommunicates and interacts with buyersProvides customer service and supportEducates or informs customersA persuasive advertising mediumA sales tool or an actual sales vehicleUsing the Internet as an IMC Tool The Internet 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Sales PromotionActivities providing extra value or incentive to sales force or consumer.Activities can be consumer-oriented or trade-oriented.


Consumer-oriented[For end-users]Trade-oriented[For resellers]Sales Promotion ToolsEventsEventsLoyalty ProgramsLoyalty ProgramsBonus Packs Bonus Packs Refunds/Rebates Refunds/Rebates Contests/SweepstakesContests/SweepstakesPremiumsPremiumsSamplesSamplesCouponsCouponsCoop AdvertisingCoop AdvertisingTrade ShowsTrade ShowsTraining ProgramsTraining ProgramsPOP DisplaysPOP DisplaysTradeAllowances 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Introduce new productsGet existing customers to buy moreAttract new customersMaintain sales in off seasonIncrease retail inventoriesTie in advertising & personal sellingEnhance personal sellingVarious Uses of Sales Promotion SalesPromotion 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Public RelationsThe management function which evaluates public attitudes, identifying policies and procedures of individuals or organizations, and executing a program of action to gain public understanding and acceptance.

When an organization systematically plans and distributes information in an attempt to control and manage its image and the nature of the publicity it receives, it is really engaging in a function known as public relations.


Advertising Versus PublicityAdvertisingPublicityTentativeLowLow/Unspecified Uncontrollable GreatLowerMeasurable SchedulableHigh/Specific HighSpecifiableUndeterminedHigherLittleFactorControlCredibilityReachFrequencyCostFlexibilityTiming 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Interviews FeatureArticlesSpecialEventsNewsReleasesPublicity VehiclesPublicity Vehicles 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Corporate AdvertisingCorporate Advertising Cause-related MarketingCause-related MarketingPublicityVehiclesCommunityActivitiesPublic AffairsActivitiesSpecialPublicationsSpecial EventSponsorshipPublicityVehiclesCommunityActivitiesPublic AffairsActivitiesSpecialPublicationsPublic Relations Tools 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Personal SellingPerson-to-person communication.Seller encourages prospective buyers to purchase companys product/service or to act on an idea.Direct contact between buyer and seller gives communication flexibility to marketer.



Participants in the Promotional ProcessFigure 1-3



Integrated Marketing CommunicationsIMC coordinates various promotional elements and marketing activities which communicate with a firms customers to provide clarity, consistency, and maximum communications impact.Evolved as companies realized the need for strategic integration of promotional tools.


IMC Audience Contact ToolsTarget Audience 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Integrated Marketing Communications Planning Model 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

1. A detailed situation analysis1. A detailed situation analysis3. A marketing strategy and program4. A program for implementing the strategy2. Specific marketing objectivesThe Marketing Plan 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Promotional ManagementCoordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.


*Chapter OneAn Introduction to Integrated Marketing Communications 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin*Relation to text This slide relates to material found on pp. 7-8 of the text.

Summary Overview This slide presents the revised definition of Marketing developed by the American Marketing Association in 2004. This new definition views marketing as being more strategic in nature as well as more reflective of the role it plays in the functioning of an organization.

Use of this slide This slide can be used to discuss the new definition of Marketing developed by the AMA. It also shows the some of the key aspects of marketing which include creating, communicating and delivering value, the focus on customer relationships, using mass customization to deliver products and services in response to specific customer needs, and customer relationship management (CRM) which involves the systematic tracking of customers preference and behavior and adjusting the marketing program to meet their needs.*Relation to text This slide relates to material on pp. 9-10 of the text.Summary Overview This slide shows a print ad for a Mont Blanc watch. Mont Blanc uses a classical design and a distinctive brand name as well as a high price to position its watches as high-quality, high-status time pieces. The upscale image is enhanced by the companys strategy of distributing its products only though boutiques, jewelry stores, and other exclusive retail shops. Mont Blancs distinctive image is a result of coordination of all of the marketing mix elements.Use of this slide This slide can be used to show how Mont Blanc uses a variety of marketing mix elements including price, product design, brand name, and distribution strategy to create a high-quality, upscale image for its time pieces. *Relation to text This slide relates to material on pp. 9-11 of the text.Summary Overview This slide shows the traditional approach to advertising and promotion where many of the marketing and promotional functions were planned and managed separately with different budgets, different views of the market, and different goals and objectives. Many of the marketing activities such as package design, sales promotion, and direct marketing services were viewed as ancillary services and handled on a project basis rather than integrating them into the IMC program.Use of this slide This slide can be used to show the traditional approach to marketing communications that lacks coordination and consistency. The disconnected puzzle pieces are designed to demonstrate how traditional approaches to marketing communications often viewed the various IMC tools as separate pieces of the puzzle rather than having them all work together. *Relation to text This slide relates to material on pp. 9-11 of the text which discusses the contemporary approach to integrated marketing communications. Summary Overview This slide shows the contemporary approach to advertising and promotion which is referred to as Integrated Marketing Communications. This approach seeks to have all of a companys marketing and promotional activities project a consistent, unified image in the marketplace. It calls for a centralized messaging function so that everything a company says and does communicates a common theme and positioningUse of this slide This slide can be used to show the contemporary approach to marketing communications that includes coordination and consistency. The connected puzzle pieces are designed to demonstrate how the various IMC tools are coordinated with media advertising and work together in a seamless fashion to create an effective communications program. *Relation To TextThis slide relates to the material on p. 11 of the text, which discusses the evolution of IMC.

Summary OverviewThis slide shows the new definition of IMC developed by Don Schultz of Northwestern University who is one of the leading IMC scholars. The three major aspects of this new definition of IMC are shown in the next slide.

Use of this slideThis slide can be used to present the new definition of IMC developed by Schultz. You might compare this new definition to the original definition of IMC developed by the American Association of Advertising Agencies, which is shown on p. 10. *Relation to text This slide relates to pp. 11-14 and IMC Perspective 1-1 in text.Summary Overview There are several important aspects of the definition of IMC: Recognized as a business process rather than just tactical integration of various communication activities.Importance of relevant audiences externally these include customers, prospects, suppliers, investors, interest groups, and the general public. Employees are an example of an internal audience.Demand for accountability increased emphasis on the outcomes of marketing communication programs.Use of this slide This slide can be used to help students understand that IMC involves more than just coordinating the various elements of a marketing and communications program into a one look, one voice approach.

*Relation to text This slide relates to material on pp. 11-14 of the text which discusses reasons for the growing importance of IMC.Summary Overview The integrated marketing communications movement is also being driven by changes in the ways companies market their products and services. A major reason for the growing importance of the IMC approach is the ongoing revolution that is changing the rules of marketing. These changes include:A shift in dollars from media advertising to other forms of promotions particularly consumer and trade oriented sales promotion.A movement away from mass media and advertising toward more targeted communication tools such as event marketing and sponsorship, direct mail, and the Internet.A shift in marketplace power from manufacturers to retailers resulting in retailers demanding larger promotional fees and allowances from manufacturers.Technology has allowed for a rapid increase in database development and information sharing. Marketers are using this information to improve market targeting.Greater accountability from advertising agencies and changes in agency compensation. Companies are moving more toward incentive based systems of compensation.Rapid growth of the Internet. The interactive nature of the Internet has made it a vital part of most companies communications strategyUse of this slide This slide can be used to explain the reasons for the growing importance of IMC in contemporary marketing. *Relation to text This slide relates to material on page 17-23 and Figure 1-2.Summary Overview The promotional mix is the basic tools used to accomplish an organizations communication objectives. These tools include: Advertising any paid form of non personal communication about an organization, product, service, or idea by an identified sponsorDirect marketing communication directly with target customers to generate a response and/or transaction Interactive/Internet marketing communication through interactive media such as the Internet, CD-ROMS and kiosks.Sales promotion marketing activities that provide extra value or incentives to sales force, distributors, or consumers to stimulate immediate salesPublicity/Public Relations Publicity is a form of non-personal communication not directly paid for or run under identified sponsorship. Public relations is a management function which executes programs of action to earn public understanding and acceptance an enhance the image of the company.Personal Selling person-to-person communication between a seller and buyerUse of this slide This slide can be used to introduce and define the various elements of the promotional mix. *Relation to text This slide relates to pp. 17-19 and Figure 1-4 in text.Summary Overview The nature and purpose of advertising differs from one industry to another and/or across situations. Advertising can be targeted toward consumer and/or business markets. Consumer advertising is classified as:National advertising done by large companies on a nationwide basis. Ads for well-known brands and companies shown on television are an example.Retail/Local advertising done by retail and local merchants encouraging consumers to shop at a specific store, use a local service, or patronize a particular establishment.Primary versus selective demand advertising primary demand advertising is designed to stimulate demand for the general product class or industry. Selective-demand focuses on creating demand for a specific company and/or its brands.Advertising to business and professional markets includes: Business to business advertising advertising that targets individuals who buy or influence the purchase of industrial goods or services for their companies.Professional advertising advertising targeted to professionals such doctors, lawyers, engineers, and the like.Trade advertising targeted to marketing channel members such as wholesalers, distributors, and retailers.Use of this slide This slide can be used to explain the various types of advertising and how the role of advertising can vary given the target customer, goals and objectives, or situation. *Relation to text This slide relates to material on pp. 18-20 of the text.Summary Overview Direct marketing is a form of integrated marketing communications whereby an organization communicates directly with target customers to generate a response and/or transaction. It involves a variety of activities including:Direct mailDirect response advertising (on TV, radio or in magazines or newspapers)TelemarketingInternet SalesCatalogsShopping channelUse of this slide This slide can be used to provide an overview of direct marketing and the various forms it can take. *Relation to text This slide relates t material on pp. 20-21 which discusses interactive marketing and the Internet as IMC tools.Summary Overview The rapid changes in technology have led to dramatic growth of communications through interactive media, particularly the Internet. This communication medium is unique in that it allows for the back-and-forth flow of information in real time. Customers can perform a variety of functions on the Internet such as receive and alter information and images, make inquires, respond to questions, and, of course, make purchases. The Internet has changed the ways companies communicate to their customers as companies and organizations of all sizes have developed websites to promote their products and services.Use of this slide This slide can be used to show that the Internet has changed the way companies communicate with their customers. Because of its interactive nature, it is a very effective way to communicate with customers. Actually, it is a medium that can be used to execute all elements of the promotional mix. In addition to advertising, companies can offer sales promotion incentives such as coupons or contests, do direct marketing, and execute public relations, and personal selling functions via the Internet. *Relation to text This slide relates to material on p. 22 of the text, which discusses the role of sales promotion as an IMC tool.Summary Overview Sales promotion is defined as those activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales. Sales promotion is generally broken down into two categories:Customer-oriented targeted to the ultimate user of the product or service and includes coupons, sampling, premiums, contests, sweepstakes, refunds/rebates, bonus packs, events, and loyalty programs.Trade-oriented targeted to marketing intermediaries such as wholesalers, distributors, and retailers and includes trade allowances, price deals, sales contests, trade shows, and cooperative advertising. Use of slide This slide can be used to introduce sales promotion as an IMC tool and the various types consumer and trade promotions. *Relation to text This slide relates to the material on p. 22, which discusses the role of sale promotion as part of the IMC program.Summary Overview There are various reasons why companies choose to use sales promotion in their IMC programs. The various uses of consumer and trade promotion include: Introduce new productsGet existing customers to buy more Attract new customersMaintain sales in off seasonsIncrease retailer inventoriesEnhance or tie in advertising with personal sellingCombat competitionUse of Slide This slide can further supplement the discussion of sales promotion and why companies use this tool as part of their IMC programs *Relation to text This slide relates to material on pp. 22-23, which discusses the role of publicity.Summary Overview Another important component of an organizations promotional mix is publicity/public relations. Publicity refers to the non personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. Companies attempt to get the media to cover or run favorable stories on their products, services, or causes. It usually comes in the form of a news story, editorial, or announcement. There are a number of advantages and disadvantages that publicity has relative to advertising. This slide compares advertising and publicity on a number of factors.Use of this slide This slide can be used to introduce publicity/public relations and to discuss how publicity compares to advertising with respect to various factors. *Relation to text This slide relates to the material on pp. 22-23.Summary Overview Companies attempt to get the media to cover or run favorable stories on their products, services, or causes. There are a number of publicity vehicles available to marketers. Publicity can be generated through the use of:feature articlesnews releasespress conferencesspecial eventsinterviewsUse of Slide This slide can be used to show the various methods that can be used to generate publicity for companies, brands, organizations, or causes. *Relation to text This slide relates to material on pp. 22-23, which discusses public relations.Summary Overview It is important to distinguish between publicity and public relations. When an organization systematically plans and distributes information in an attempt to control and manage its image and the nature of the publicity it receives, it is really engaging in public relations. There are a variety of public relations tools available to marketers such as publicity vehicles, special publications, community activities, fund raising programs, public affairs activities, and special event sponsorships. Organizations can also use advertising as a public relations tool.Use of Slide This slide can be used to explain the various public relations tools. It also provides an opportunity to discuss the differences between public relations and publicity. *Relation to text This slide relates to material on p. 24 and Figure 1-5 of the text.Summary Overview A key aspect of IMC is that it encourages marketers to consider a variety of communication tools and how they can be used to deliver messages about their company or brands. Figure 1-5 shows the various ways by which consumers come into contact with a company or brand.Use of this slide This slide can be used to discuss that marketers must determine how valuable each contact tool is and how they can be combined to form an effective IMC program. *Relation to text This slide presents the IMC Planning Model which is shown in Figure 1-6 and discussed on pp. 24-32.Summary Overview This slide presents the IMC Planning Model which is discussed in detail in Chapter 1. This model presents the framework for developing, implementing, evaluating, and controlling the firms IMC program and activities.Use of this slide This model should be reviewed very carefully at the beginning of the course to show students what is involved in the development of a complete IMC program. It presents the framework that is used for the text and provides an opportunity to provide students with the big picture and a roadmap of what will be covered in the course.

NEED TO PUT THE VARIOUS PROGRAMS IN SAME ORDER AS THEY APPEAR IN F 1-6. ALSO, IT IS MISSING THE ROW OF BOXES RELATED TO STRATEGY AND TACTICS. CAN YOU ADD THESE???*Relation to text This slide relates to material on pp. 26 of the text, which discusses the marketing plan.Summary Overview The first step in the IMC planning process is to review the marketing plan and objective. Before developing a promotional plan, marketers must understand where the company (or brand) has been, its current position in the market, where it intends to go, and how it plans to get there. Most of this information should be contained in the marketing plan. Marketing plans can take several forms, but general include the following five basic elements:A detailed situation analysis, which includes an internal marketing audit and review and an external analysis of the market competition and environmental factors.Specific marketing objectives that provide direction, a time frame for marketing activities, and a mechanism for measuring performance.A marketing strategy and program that includes selection of target markets and plans for the four elements of the marketing mixA program for implementing the strategy, including determining specific tasks to be performed and responsibilities.A process for monitoring and evaluating performance and providing feedback so proper control can be maintained and necessary changes can be made in the overall marketing strategies and tactics.Use of this slide This slide can be used to explain the importance of marketing planning is in the development of an IMC program and how good IMC planning begins with a review of the overall marketing plan and objectives. Promotion is only one part of the marketing process and must be integrated into the overall marketing plan.

Documents

Integrated Marketing Communication-1