An Introduction to Integrated Marketing Communications

An Introduction to

Integrated Marketing

Communications

An Introduction to

Integrated Marketing

Communications

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Creating a Unique Brand Identity for Las Vegas

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

*Click outside of the video screen to advance to the next slide

Taking The “Only Vegas” Campaign in a

New Direction

The Growth of Advertising and Promotion

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Expenditure in Billions of Dollars

$0 $50 $100 $150 $200 $250 $300 $350 U.S. Advertising U.S. Sales Promotion Advertising Outside U.S. 2004 1980

What is Marketing?

Marketing is an

organizational function

and a set of processes for

creating, communicating

and delivering value to

customers and for

managing customer

relationships in ways that

benefit the organization.

Marketing is an

organizational function

and a set of processes for

creating, communicating

and delivering value to

customers and for

managing customer

relationships in ways that

benefit the organization.

Value

Value

Relationship marketing

Relationship marketing

Mass customization

Mass customization

Customer relationship

management (CRM)

Customer relationship

management (CRM)

Value

Value

Relationship marketing

Relationship marketing

Mass customization

Mass customization

Coordinated Marketing Mix Elements

Build Image

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Point of purchase Publicity Public relations Direct marketing Interactive marketing Special events Packaging Sales promotion Direct response

Traditional Approach to Marketing

Communications

Media

Contemporary IMC Approach

Point of purchase Publicity Interactive marketing Public relations Direct

marketing Special_events Packaging _promotionSales _responseDirect

Media

Adver-tising

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Defining IMC

IMC 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.

IMC 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.

The goal of IMC is to generate short-term financial returns and build long-term brand value. The goal of IMC is to generate short-term financial returns and build long-term brand value.

Demand for accountability Demand for accountability Demand for accountability and

Measurement of Outcomes Demand for accountability and

Measurement of Outcomes Recognized as a business process Recognized as a business process

Importance of relevant audience Importance of relevant audience Recognized as a business process Recognized as a business process

Multiple relevant audiences Multiple relevant audiences

A Contemporary Perspective of IMC

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

IMC

IMC

Test Your Knowledge

Why are marketers decreasing their usage of

advertising in mass media to reach their target market and increasing their use of integrated marketing

communications?

A) The mass market has become fragmented.

B) The explosion of new technologies has given consumers greater control over the communication process.

C) The use of the Internet and electronic commerce is growing.

D) New global markets are emerging. E) All of the above explain the increasing

reliance on integrated marketing communications.

Traditional compensation

Traditional compensationTraditional compensation Performance-based compensation Performance-based compensation

Traditional compensation Performance-based compensation Performance-based compensation

Media advertising

Media advertising Multiple forms of communication_{Multiple forms of communication} Mass media

Mass media Specialized media_{Specialized media} Manufacturer dominance

Manufacturer dominance Retailer dominance_{Retailer dominance} General focus

General focus Data-based marketing_{Data-based marketing} Low agency accountability

Low agency accountability Greater agency accountability_{Greater agency accountability}

Limited Internet availability

Limited Internet availability Widespread Internet availability_{Widespread Internet availability} Media advertising

Media advertising Multiple forms of communication_{Multiple forms of communication} Mass media

Mass media Specialized media_{Specialized media} Manufacturer dominance

Manufacturer dominance Retailer dominance_{Retailer dominance} General focus

General focus Data-based marketing_{Data-based marketing} Low agency accountability

Low agency accountability Greater agency accountability_{Greater agency accountability}

Reasons for the Growing Importance of

IMC

From

Toward

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

IMC and Branding

Brand Identity is a

combination of factors:

Name, logo, symbols,

design, packaging,

product or service

performance, and image

or associations in the

consumer’s mind.

Brand Identity is a

combination of factors:

Name, logo, symbols,

design, packaging,

product or service

performance, and image

or associations in the

consumer’s mind.

2005 Brand Value

(Billions of Dollars)

1. Coca-Cola $67.52

2. Microsoft

$59.94

3. IBM

$53.38

4. GE

$46.99

5. Intel

$35.59

6. Nokia

$26.45

7. Disney

$26.44

8. McDonald’s $26.01

9. Marlboro

$24.84

10. Mercedes $21.19

IMC plays a major role

in the process of

developing and

sustaining brand

identity and equity.

IMC plays a major role

in the process of

developing and

sustaining brand

identity and equity.

Advertising

Advertising

Direct Marketing

Direct Marketing

Interactive/

Internet Marketing

Interactive/

Internet Marketing

Sales Promotion

Sales Promotion

Publicity/Public

Relations

Publicity/Public

Relations

Personal Selling

Personal Selling

Advertising

Advertising

Direct Marketing

Direct Marketing

Interactive/

Internet Marketing

Interactive/

Internet Marketing

Sales Promotion

Sales Promotion

Publicity/Public

Relations

Publicity/Public

Relations

Basic Elements of the Promotional Mix

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Primary vs. Selective Demand Advertising Primary vs. Selective Demand Advertising Primary vs. Selective Demand Advertising Primary vs. Selective Demand Advertising Business-to-Business Advertising Business-to-Business Advertising

Organizations

National Advertising National Advertising Retail/Local Advertising Retail/Local Advertising Professional Advertising Professional Advertising Trade Advertising Trade Advertising National Advertising National Advertising Retail/Local Advertising Retail/Local Advertising Business-to-Business Advertising Business-to-Business Advertising Professional Advertising Professional Advertising

Classifications of Advertising

Consumers

Direct

Response

Advertising

Direct

Response

Advertising

Direct

Response

Advertising

Direct

Response

Advertising

Direct

Mail

Direct

Mail

Catalogs

Catalogs

Telemarketing

Telemarketing

Internet

Sales

Internet

Sales

Shopping

Channels

Shopping

Channels

Direct

Mail

Direct

Mail

Telemarketing

Telemarketing

Catalogs

Catalogs

Shopping

Channels

Shopping

Channels

Direct Marketing is Part of IMC

Direct

Marketing

Direct

Marketing

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sharp Creatively Integrated Advertising

and the Internet

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

This Sharp Aquos Commercial Was Designed

to Drive Viewers to the Web Site

Builds and maintains customer relationships Builds and maintains customer relationships Obtains customer database information Obtains customer database information Communicates and interacts with buyers Communicates and interacts with buyers Provides customer service and support Provides customer service and support Educates or informs customers Educates or informs customers A persuasive advertising medium A persuasive advertising medium A sales tool or an actual sales vehicle A sales tool or an actual sales vehicle Obtains customer database information Obtains customer database information Communicates and interacts with buyers Communicates and interacts with buyers Provides customer service and support Provides customer service and support Educates or informs customers Educates or informs customers A persuasive advertising medium A persuasive advertising medium A sales tool or an actual sales vehicle A sales tool or an actual sales vehicle

Using the Internet as an IMC Tool

The

Internet

The

Internet

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

•

Consumer-oriented

• [For end-users]

•

Trade-oriented

• [For resellers]

Sales Promotion Tools

Events Events Loyalty Programs Loyalty Programs Bonus Packs Bonus Packs Refunds/Rebates Refunds/Rebates Contests/Sweepstakes Contests/Sweepstakes Premiums Premiums Samples Samples Coupons Coupons Coop AdvertisingCoop Advertising Trade ShowsTrade Shows Training ProgramsTraining Programs POP Displays POP Displays Trade Allowances

Introduce new products Introduce new products Get existing customers to buy more Get existing customers to buy more Attract new customers Attract new customers Maintain sales in off season Maintain sales in off season Increase retail inventories Increase retail inventories Tie in advertising & personal selling Tie in advertising & personal selling Enhance personal selling Enhance personal selling Combat competition Combat competition Introduce new products Introduce new products Get existing customers to buy more Get existing customers to buy more Attract new customers Attract new customers Maintain sales in off season Maintain sales in off season Increase retail inventories Increase retail inventories Tie in advertising & personal selling Tie in advertising & personal selling Enhance personal selling Enhance personal selling

Various Uses of Sales Promotion

Sales

Promotion

Sales

Promotion

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Test Your Knowledge

_____ is nonpersonal communication neither directly paid for nor run under identified sponsorship.

A) Advertising B) Sales promotion C) Publicity

D) Public relations E) Personal selling

Advertising Versus Publicity

Advertising

Advertising

Publicity

_Publicity

Tentative

Tentative

Low

Low

Low/Unspecified Low/Unspecified

Uncontrollable

Uncontrollable

Great

Great

Lower

Lower

Measurable

Measurable

Schedulable

Schedulable

High/Specific

High/Specific

High

High

Specifiable

Specifiable

Undetermined

Undetermined

Higher

Higher

Little

Little

Factor

Factor

Control

Control

Credibility

Credibility

Reach

Reach

Frequency

Frequency

Cost

Cost

Flexibility

Flexibility

Timing

Timing

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Interviews

Interviews

_Interviews

Interviews

Feature

Articles

Feature

Articles

Special

Events

Special

Events

Press

Conferences

Press

Conferences

News

Releases

News

Releases

Feature

Articles

Feature

Articles

Special

Events

Special

Events

News

Releases

News

Releases

Publicity Vehicles

Publicity

Vehicles

Publicity

Vehicles

Corporate

Advertising

Corporate

Advertising

Cause-related

Cause-related

Marketing

Marketing

Publicity

Vehicles

Community

Activities

Public Affairs

Activities

Special

Publications

Special Event

Sponsorship

Publicity

Vehicles

Community

Activities

Public Affairs

Activities

Special

Publications

Public Relations Tools

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

IMC Audience Contact Tools

Target Audience

Target Audience

Broadcast media (TV/radio) Broadcast media (TV/radio) Print media (newspapers, magazines

)

Print media (newspapers, magazines

)

Public Relations/ publicity Public Relations/ publicity Internet/ interactive Internet/ interactive Direct marketing Direct marketing Sales Promotion Sales Promotion Product placements (TV and movies) Product placements (TV and movies) Events and sponsorship Events and sponsorship Word-of-mouth Word-of-mouth Point-of-purchase (displays, packaging) Point-of-purchase (displays, packaging) Personal selling Personal selling Out-of-home media Out-of-home media

Test Your Knowledge

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The _____ is a written document that describes the overall marketing strategy and programs developed for an organization, product line, or brand.

A) promotional plan B) marketing plan C) communications plan D) marketing audit E) situation analysis

1. A detailed situation analysis 1. A detailed situation analysis

2. Specific marketing objectives 2. Specific marketing objectives

3. A marketing strategy and program 3. A marketing strategy and program

4. A program for implementing the strategy 4. A program for implementing the strategy

5. A process for monitoring and evaluating performance 5. A process for monitoring and evaluating performance

1. A detailed situation analysis 1. A detailed situation analysis

3. A marketing strategy and program 3. A marketing strategy and program

4. A program for implementing the strategy 4. A program for implementing the strategy

2. Specific marketing objectives 2. Specific marketing objectives

Integrated Marketing Communications Planning Model

Promotional program situation analysis Analysis of the communications process

Budget determination

Develop integrated marketing communications programs Review of marketing plan

Advertising _promotionSales _publicityPR/ Personal_{selling marketing}Direct Advertising objectives Sales promotion objectives PR/ publicity objectives Personal selling objectives Direct marketing objectives Message strategy Sales promotion strategy PR/ publicity strategy Personal selling strategy Direct marketing strategy Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program

Internet/ interactive Internet/ interactive objectives Internet/ interactive strategy