Integrated Marketing

Communications

MKTG 301

1
 Agenda: November 16

• Today – Integrated Marketing Communications (IMC)

• Thursday – Advertising, Online Marketing, & Personal
Selling
• Nov 23 – No class – time to work on recitation
projects.
• Nov 25 – Thanksgiving
• November 30 – Exam Review
• December 2: Exam 2 – covers material since Exam 1
• Finals Week – Final Exam - cumulative

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 What is IMC?

•The 4th P - Promotion

•The process of designing a communication
program that coordinates all promotional
activities to provide a consistent message to
all audiences and build brand equity.

3
 The Purpose of IMC
Advertising

Sales Promotion

Brand
Sponsorship Awareness
Events

Marketing Brand
Communication
Publicity Equity
Program

Direct
Brand Image
Marketing

Personal
Selling Website

All of these IMC modalities communicate to build

Brand Equity
 Communication

RECEIVER SENDER
5
Fundamentals of Communication

6
FIGURE 18-1 The communication process
consists of six key elements

18-7
 Communication requires a
common ‘Field of Experience’
A similar understanding and knowledge base
that can be applied to the message.

8
FIRED
Classes of Marketing
Communication

1. Mass 2. Customized
Communication Communication

3. Interactive
Communication

10
 Classes of Marketing
Communication
2.
1. Customize
3.
Mass Interactive
d
●
Individual level
●
Targeted at a
●
Impersonal ●
Iterative
segment (group)
●
Undifferentiated ●
Most costly
●
Focused message
message ●
More complex
●
More costly
●
Must pay for it info. Transmission
●
One-shot message
●
Difficult to get ●
Immediate &
●
Transactional
feedback individual
feedback
feedback

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 Classes of Marketing
Communication
2.
1. Customize
3.
Mass Interactive
d

●
Direct Marketing
●
Advertising ●
Sales Promotions ●
Personal Selling
●
Public Relations ●
Social (Viral) ●
Online Marketing
Marketing

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 1. Mass Marketing
Communications
= Impersonal , undifferentiated message,
paid, difficult to get feedback
a) Advertising

b) Publicity

c) Spam

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 Advertising

= paid non-personal
communication
about an
organization, good,
service, or idea by
an identified
sponsor.

$273,750

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 Publicity

= non-personal presentation of an
organization, good, or service paid for
indirectly (still need PR staff).

15
16
 Spam

= paid, non-personal, unsolicited email.

17
 2. Customized Marketing
Communications
Targeted at a segment, focused message,
more costly, one-shot message, with
transactional feedback

a) Direct Marketing
b) Sales Promotions
c) Public Relations

18
 Direct Marketing

= a communication targeted to a specific

audience designed to elicit some response
(purchase, request for more information,
or visit to an outlet). Direct marketing
requires data.

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 Sales Promotions

= a short-term inducement of valued offered

to arouse interest in a potential purchase.

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 Public Relations

= of form of communication management that

seeks to influence the feelings, opinions, or
beliefs held by some target group (customers,
stockholders, suppliers, employees) about a
company and what it sells.

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 Social (Viral) Marketing

= an internet-enabled promotional strategy

that encourages individuals to forward
marketer-initiated messages to others via
email or social networking tools.

http://www.youtube.com/watch?v=JqLDBKvp9mQ
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 3. Interactive Marketing
Communications
Individual level, iterative, most costly, more
complex information transmission, but
offers immediate & individual feedback.

a) Personal Selling
b) Online Experience Management

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 Personal Selling

= a two-way flow of communication

between a buyer and seller, often face-to-
face, designed to influence a person’s or
group’s purchase decision

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 Online Experience Management

= managing the customer experience during

their interaction on the organization’s
website.

http://www.youtube.com/watch?v=2IOZp3wItec
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How do they strategically fit together?

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 Hierarchy-of-Effects Model

Purchase

Purchase Intention

Attitude

Beliefs/Knowledge

Awareness

Unawareness
 Hierarchy-of-Effects Model

Purchase Personal Selling,

Direct Marketing,
Purchase Intention Online Experience Mgt

Viral Marketing,
Attitude Focused Advertising,
Website, Point-of-
Beliefs/Knowledge Purchase Displays

Awareness Mass Advertising,

Sponsorship, Publicity
Unawareness
 Cost Effectiveness by Buyer
Readiness Stage

Awareness Beliefs Attitude Purchase

Integrated Marketing
Communications

MKTG 301

30
INTEGRATED MARKETING
COMMUNICATION
 CHANGE THE LABELS!!!!
Advertising

Sales Promotion

Brand
Sponsorship Awareness
Events

Marketing Brand
Communication
Publicity Equity
Program

Direct
Brand Image
Marketing

Personal
Selling Online
 MarComm Strategic Level
Advertising

Sales Promotion

Brand
Sponsorship Awareness
Events

Marketing Brand
Communication
Publicity Equity
Program

Direct
Brand Image
Marketing

Personal
Selling Website
Timing Patterns of Communicating
Mass Communication
 Managing MarComm

Target Audience What is the targeted

segment?
Objectives

Design IMC

Establish Budget
 Managing MarComm

Target Audience Customer State

Objectives
Purchase
Purchase
Design IMC Intention
Attitude
Establish Budget Beliefs/Knowledg
e
Awareness
Unawareness
 Managing MarComm

Target Audience

Objectives

Design IMC

Establish Budget
 Designing Messages
“Outstanding message execution is to no
avail unless the message is delivered to
the right customers at the right time,
and with sufficient frequency.”

FREQUENCY

EFFECTIVENESS
 Designing MarComm

• Message Source
Target Audience
credibility &
Objectives likeability
• Information vs.
Design IMC Transformational
Appeals
Establish Budget
 Disney

Hal Riney
and
Partners
 Designing MarComm

• Establish PoPs and

Target Audience
PoDs
Objectives • Based on Product
Life Cycle
Design IMC

Establish Budget
Designing MarComm
Designing MarComm
Designing MarComm
 Managing MarComm

• Affordable Method
Target Audience
• Percentage-of-
Objectives Sales Method
• Competitive Parity
Design IMC Method
• Objective-and-
Establish Budget Tasks Method
Personal Selling Styles
 MarComm Review
Advertising

Sales Promotion

Brand
Sponsorship Awareness
Events

Marketing Brand
Communication
Publicity Equity
Program

Direct
Brand Image
Marketing

Personal
Selling Website
Mass Advertising

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 Mass MarComm is Dying
• Typical consumer hit with 500 marketing
messages per day in 1970’s
• 5,000 messages per day 2005
• 80% people feel inundated by marketing
• 45 % agree marketing detracts from experience
of everyday life
• 61% Marketing/Advertising out of control
• 70% tune out advertising
(Yankelovich Survey 2004)
 Mass MarComm is Dying

• ROI on TV advertising = $0.32 (Adworks2 1999)

• TV Advertising (+) ROI 18% (Deutsche Bank 2004)
• Overall cost of reaching age 25-54 ↑ 300%
1995  2005 (Boston Consulting Group)
• CPM is through the roof!
– 1972 CPM = $1.96
– 2005 CPM = $16.79
Integrated Marketing Communication
Process

November 7, 2006
 IMC Process

#1. Identify Target #2. Determine Objective

Audience (542)
• What is the targets • Hierarchy of Effects
current state? • Stage of Product
Life Cycle
• How does the • Competition
target process • Budget
information?
Hierarchy-of-Effects Model
Purchase

Purchase Intention

Attitude

Beliefs/Knowledge

Awareness

Unawareness
 IMC Process

#3. Design #4. Select Channels

• Personal (in person, email,
Communication phone, etc.
• Link to Positioning • Create ‘Buzz’
Strategy. • Influentials
• Category Membership • Opinion Leaders
• Establish POPs and • Viral Marketing
• Non-personal
PODs • Media
• Creative Strategy: • Promotions
• Informational • Events
Appeals • Public Relations
• Transformational • Integrated Marketing
Communications
Appeals
 MarComm Strategic Level
Advertising

Sales Promotion

Brand
Sponsorship Awareness
Events

Marketing Brand
Communication
Publicity Equity
Program

Direct
Brand Image
Marketing

Personal
Selling Website
 Delivering Message to Target Audience

“Outstanding message execution is to no avail

unless the message is delivered to the right
customers at the right time, and with
sufficient frequency.”

FREQUENCY

EFFECTIVENESS
 IMC Process

#5. Establish Budget #6. Decide on

• Affordable Method MarComm Mix
• Percentage-of- • Type of
Sales Method service/product
• Competitive Parity • Buyer-readiness stage
• Product Life Cycle
• Objective-and-Task

• Type of Tool
• Timing of message
Hierarchy-of-Effects Model
Purchase Personal Selling,
Direct Marketing
Purchase Intention

Attitude Advertising, Website,

Point-of-Purchase
Displays
Beliefs/Knowledge

Awareness Mass Advertising,

Sponsorship, Publicity
Unawareness
Cost Effectiveness by Buyer
Readiness Stage
Timing Patterns of
Communicating
 IMC Process

#7. Measure Results #8. Manage IMC

• Rating - % of 1. Start with the
households who own a customer or prospect.
TV were watching that 2. Use any form of
ad. relevant contact.
• Share - % of TVs in 3. Speak with a single
use that are tuned to voice.
the ad. 4. Build Relationships.
• Circulation, Web page 5. Achieve synergy.
exposure, click-
throughs, etc.
• ROI?
• Reduced dependence on mass-
Key Changes of IMC Approach
media advertising.