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Copyright 2012 McGraw-Hill Companies, Inc.

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An Introduction to Integrated
Marketing Communications
The Modern World of Marketing

Rapidly changing media environment


Mass media losing viewers, readers,
listeners
Digital media targets narrow audience
Consumers not content to be passive
message recipients
Information now obtained from a myriad
of sources

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Volkswagen Strategy

Traditional Social
Mass Media
Media
Integrated
Marketing
Strategy
Sports
Point-of- Team
Sale Kits Sponsor

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Punch Dub

Entertaining, interactive information


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The Growth of Advertising and Promotion

Integral part of social and economic


systems
Carefully prepared messages delivered
to carefully targeted audiences
Six-fold increase between 1980 and 2010
New marketing channels
Internet ads (banner ads, videos,
webisodes)
Social media
Mobile marketing

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The Role of Marketing

Advertising & Nonprofit


Promotion Organizations
Inform customers of Solicit donations
a product or service
Offer intangible
Convince them of its social and
ability to satisfy their psychological
wants or needs satisfactions
Help develop and
sustain relationships

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What is Marketing?

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

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What is Value?

Customers perception
of all the benefits of a
product or service
Weighed against
costs of acquiring
and consuming it

Benefits can be
Functional
Experiential
Psychological

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The Marketing Mix

The Four Ps
Product
Price
Place
Promotion

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Contemporary IMC Approach

Sales Direct
Packaging
promotion response

Mass
Point of media
purchase advertising
Public
relations
Publicity

Interactive
marketing Direct
Special
marketing
events

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Growing Importance of IMC

Value of IMC
Avoids duplication of marketing efforts
Synergy among promotional tools
More efficient and effective marketing

Rapidly changing environment


Consumer behavior
Technology
Media consumption behavior
Proliferation of media
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The Marketing Revolution

Shift from traditional media ads to other forms


of promotion/nontraditional media
Internet and social media changing how
companies interact with consumers
Power shift: manufacturers to retailers

Database marketing

Greater ad agency accountability


Changes in how ad agencies are compensated

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The Role of IMC in Branding

Image or
Performance
Associations

Name Brand Packaging


Identity

Logo Design

Symbols

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Building Brands in a Recession

Consumers

Spend less money


Carefully scrutinize purchases
Rethink brand loyalties
Willing to trade off or down
More price sensitive
More value conscious

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Building Brands in a Recession

Companies

Reduce advertising budgets


Balance discounts/promos w/brand image
Must overcome consumer distrust
Change product marketing focus
Increase online social presence
Look for new ways to remain relevant

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Test Your Knowledge

Why are marketers decreasing the use of mass media


advertising and increasing the use of integrated
marketing communications?
A) The mass market has become fragmented
B) New technologies gave consumers greater
control over the communication process
C) Use of the Internet and electronic commerce
is growing
D) Explosive growth in social networking
E) All of the above

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The Promotional Mix

Interactive/
Direct
Advertising Internet
Marketing
Marketing

Publicity/
Sales Personal
Public
Promotion Selling
Relations

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Advertising

Paid, nonpersonal communication


About an organization, product,
service, or idea
With an identified sponsor
No immediate feedback from audience
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Non-Personal Media

Mass media
TV
Radio
Magazines
Newspapers

Benefits
Cost effective
Large audiences

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Advertising Classifications

National

Retail / Local

Primary / Selective Demand


Consumers

Business-to-Business

Professional

Trade
Organizations
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Forms of Direct Marketing

Direct
Direct Mail Catalogs
Response Ads

Telemarketing Direct Selling

Database Shopping Internet


Management Channels Sales

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Direct Response Advertising

Encourages consumers to purchase


directly from the manufacturer

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Direct Response Advertising

Major Tools Forces for Change

Direct Mail Changing Lifestyles


Television Credit Cards
Magazines Toll-free Numbers
Internet Rapid Internet Growth

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Interactive Marketing

Interactive media
Internet
Kiosks
Interactive television
Cell phones
Other mobile devices

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Interactive Marketing

Internet activities
Advertise products and services
Link ads and websites to search engines
Offer coupons, contests, sweepstakes
Conduct direct marketing
Do personal selling
Conduct public relations activities
Measure advertising and promotions

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Sales Promotion

Marketing activities that provide


extra value or incentives to the

Sales Ultimate
Force Consumer
Retailers

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Consumer vs. Trade Promotions

Consumer- Couponing, sampling, premiums,


oriented rebates, contests, sweepstakes,
POP materials
Encourages immediate purchases

Promotional/merchandising
allowances, price deals, sales
Trade- contests, trade shows
oriented Wholesalers, distributors, retailers

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Publicity

A news story,
editorial, or High credibility and
announcement to low cost
a mass audience
Not directly paid for
or run under
identified sponsor

Is sometimes Not always under


unfavorable company control

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Public Relations

Management function
Evaluates public attitudes
Identifies items of public interest
Executes a program of action to earn
public understanding and acceptance

Primary objectives
Establish and maintain a positive image
of the company among various publics

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Public Relations

Uses publicity and


other tools
Special publications
Community activities
Fund-raising events
Sponsorships
Public affairs
activities

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Personal Selling

Person-to-person communication
A seller attempts to assist and/or
persuade prospective buyers to make a
purchase or act on an idea
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IMC Audience Contact Tools

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Touch Points: Control vs. Impact

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IMC Planning Model
Review of marketing plan
Promotional program situation analysis
Analysis of the communications process

Budget determination

Develop integrated marketing communications programs

Sales PR/ Personal Direct Internet/


Advertising
promotion publicity selling marketing interactive

Advertising Sales PR/ Personal Direct Internet/


promotion publicity selling marketing interactive
objectives objectives objectives objectives objectives objectives

Message Sales PR/ Personal Direct Internet/


promotion publicity selling marketing interactive
strategy strategy strategy strategy strategy strategy

Integrate and implement marketing communications strategies


Monitor, evaluate and control IMC Program
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Elements of a Marketing Plan

Detailed situation analysis

Specific marketing objectives

Marketing strategy and program

Program for implementing the strategy

Process for monitoring & evaluating performance

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Promotional Program Situational Analysis

Internal External

Firms promotional Customer analysis


organization/capabilities Competitive analysis
Review of previous Environmental analysis
programs and results
Assess firm/brand
image
Assess strengths and
weaknesses of product
or service

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Analysis of Communications Process

Communication decisions
Source and message
Communication channels
Media mix
Costs
Marketing goals
Communication objectives

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Budget Determination

What will the promotional program cost?


How will the money be allocated?

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Developing the IMC Program

IMC Strategies

Creative Media

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Monitoring, Evaluation, Control

Basic Goals

Determine how well the program


is doing, and why
Problem correction
Continual management feedback
Input for future promotions/strategies

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