1

An Introduction to Integrated
Marketing Communications

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
 It’s Google’s World

The most powerful brand in the world

 It’s Google’s World

• Founded in 1998
– Delivers relevant search results by
favoring pages linked to by other sites
– Sells ads linked to search keywords
– Annual revenue exceeds $10 billion
• Keys to success
– Simplicity
– Speed
– Accuracy
 Google Adwords

• Keyword-targeting advertising
– Text ads at top or side of search results
– Advertisers compete for top spot
– Cost is “per click” (CPC)
• Contextual ads
– Appear on other relevant Web sites
• Site-targeted
– Generates sales and branding
– Cost is per thousand impressions (CPM)
 Google Rapidly Expanding

• Beyond online search advertising

– Automated purchase of radio ads
– Magazine and newspaper ad-buying
– YouTube
– Google TV Ads
– Partnership with Nielsen Media Research
– New varieties of online ads
 Rapidly Changing Media Environment

• Increasingly difficult to target

audiences & communicate effectively
– Consumers no longer passive recipients
– They demand more than information
– From a myriad of sources
 Integrated Marketing Approach

• Traditional mass media

– Television, radio, magazines, newspapers,
billboards
– Now drive consumers to Web sites
• Online strategies
– Provide detailed information
– Be experiential, entertaining, interactive
– MySpace, YouTube, Facebook, wireless
mobile media devices, e-mail
The New Look of Advertising

Interactive, Informative, Entertaining

Growth of Advertising and Promotion

Expenditure in Billions of Dollars

Advertis ing Outside

U.S.
2007
1980

U.S. Advertising

$0 $50 $100 $150 $200 $250 $300 $350 $400

 What is Marketing?

• An organizational
function Value
Value
• Processes for creating,
communicating, and Relationship
Relationship marketing
marketing
delivering value to
customers Mass
Mass customization
customization
• Managing customer
relationships in ways Customer
Customer relationship
relationship
that benefit the management
management (CRM)
(CRM)
organization and its
stakeholders
 The Scion Web Site

Consumers can now customize

the car they want to purchase
 Marketing Mix

• The four Ps
Product

Price
Place

Promotion
Coordinated Marketing Elements Build Image
 Traditional Marketing Approach

Sales
Special
Point of promotion
events
purchase Interactive
marketing

Media
Packaging
Adver-
tising
Public
relations
Publicity Direct
Direct
marketing response
 Contemporary IMC Approach

Sales Direct
Packaging
promotion response

Media
Point of
purchase Adver-
Public
tising relations
Publicity

Interactive
marketing Direct
Special
marketing
events
 Defining IMC

IMC
IMC isis aa strategic
strategic business
business
process
process used
used to to plan,
plan, develop,
develop,
execute
execute and
and evaluate
evaluate coordinated,
coordinated,
measurable,
measurable, persuasive
persuasive brand
brand
communication
communication programsprograms with
with
consumers,
consumers, customers,
customers, prospects
prospects
employees
employees and and other
other relevant
relevant
external
external and
and internal
internal audiences.
audiences.

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

Recognized
Recognized as
as aa business
business process
process

IMC
IMC Importance
Multiple of
of relevant
Multiple relevant
Importance audience
audiences
relevant
relevant audience
audiences

Demand
Demand for accountability
forfor
accountability and
and
Demand
Demand for accountability
accountability
measurement
measurement of of outcomes
outcomes
 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 have given consumers
greater control over the communication
process.
C) Use of the Internet and electronic
commerce is growing.
D) New global markets are emerging.
E) All of the above.
 Growing Importance of IMC

• Strategic integration of
communications functions
– Avoids duplication
– Synergy among promotional tools
– More efficient and effective marketing
• Rapidly changing environment
– Consumers
– Technology
– Media
Behind the Growing Importance of IMC

From Toward
Media
Media advertising
advertising Multiple
Multiple forms
forms of
of communication
communication

Mass
Mass media
media Specialized
Specialized media
media

Manufacturer
Manufacturer dominance
dominance Retailer
Retailer dominance
dominance

General
General focus
focus Data-based
Data-based marketing
marketing

Low
Low agency
agency accountability
accountability Greater
Greater agency
agency accountability
accountability

Traditional
Traditional compensation
compensation Performance-based
Performance-based compensation
compensation

Limited
Limited Internet
Internet availability
availability Widespread
Widespread Internet
Internet availability
availability
 The Role of IMC in Branding

• Brand identity is a combination of

– Name
– Logo
– Symbols IMC plays a major role
in developing and
– Design sustaining brand
– Packaging identity and equity

– Performance
– Image or associations
The Most Valuable Brands in the World

Brand Value
Rank Brand (Billions)
1 Coca-Cola $65.32
2 Microsoft 58.71
3 IBM 57.09
4 General Electric 51.57
5 Nokia 33.70
6 Toyota 32.07
7 Intel 30.95
8 McDonald’s 29.39
9 Disney 29.21
10 Mercedes-Benz 23.57
 Finding New Ways to Build Brands

• Consumers are driving the trend

– They view brands as a form of
self-expression
– They know more about brands and the
companies that make them
– Cynicism about corporations is at an
all-time high
– They seek and share information with
other consumers via the Internet
 Finding New Ways to Build Brands

• Get consumers involved

– Apple Computer lets consumers test
products in store
– Starbucks positions stores as a
community gathering place
• Interaction can be the best marketing
– MySpace
– Facebook
– Google
 The Promotional Mix

Advertising
Advertising

Direct
Direct Marketing
Marketing

Interactive/
Interactive/
Internet
Internet Marketing
Marketing

Sales
Sales Promotion
Promotion

Publicity/Public
Publicity/Public
Relations
Relations

Personal
Personal Selling
Selling
 Advertising

• Paid forms of non-personal

communication
– About an organization, product, service,
or idea by an identified sponsor
– No feedback from audience
– Important for products and services
aimed at mass consumer markets
– Cost effective
The Most Common Forms of Advertising

National
National Advertising
Advertising

Retail/Local
Retail/Local Advertising
Advertising

Primary
Primary vs.
vs. Selective
Selective
Demand
Demand Advertising
Advertising
Consumers

Business-to-Business
Business-to-Business Advertising
Advertising

Professional
Professional Advertising
Advertising

Trade
Trade Advertising
Advertising
Organizations
 Direct Marketing

Direct
Direct
Mail
Mail
Direct
Direct
Internet
Internet Response
Response
Sales
Sales Advertising
Advertising
Direct
Direct
Marketing
Marketing
Shopping
Shopping Telemarketing
Telemarketing
Channels
Channels

Catalogs
Catalogs
Bose Uses Direct Response Advertising

Includes call
for action.
Phone number,
mail-in form,
website address
provided.
 Interactive/Internet Marketing

• Back-and-forth communication
– Users participate in and modify the form
and content of information
– Happens in real time
• Interactive media
– Internet
– CD-ROMs
– Kiosks
– Interactive television
– Digital cell phones
 Sales Promotion

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

 Using the Internet as an IMC Tool

The
The
Internet
Internet

Educates
Educates oror AA persuasive
persuasive AA sales
sales tool
tool
informs
informs advertising
advertising or
or an
an actual
actual
customers
customers medium
medium sales
sales vehicle
vehicle

Obtains
Obtains Provides
Provides Builds
Builds and
and
Communicates
Communicates
customer
customer customer
customer maintains
maintains
and
and interacts
interacts
database
database service
service and
and customer
customer
with
with buyers
buyers
information
information support
support relationships
relationships
 Sales Promotion

Coupons
Samples Trade Allowances
Premiums
POP Displays
Contest/Sweepstake
Refunds/Rebates Training Programs

Bonus Packs Trade Shows

Loyalty Programs Coop Advertising
Events

Consumer-oriented Trade-oriented
[For end-users] [For resellers]
 Sales Promotion

• Most of the promotional budget now

goes to sales promotion
– Declining brand loyalty
– Increased consumer sensitivity to “deals”
– Larger and more powerful retailers are
demanding more trade promotion support
 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

Factor
Factor Advertising
Advertising Publicity
Publicity
Control
Control Great
Great Little
Little
Credibility
Credibility Lower
Lower Higher
Higher
Reach
Reach Measurable
Measurable Undetermined
Undetermined
Frequency
Frequency Schedulable
Schedulable Uncontrollable
Uncontrollable
Cost
Cost High/Specific
High/Specific Low/Unspecified
Low/Unspecified

Flexibility
Flexibility High
High Low
Low
Timing
Timing Specifiable
Specifiable Tentative
Tentative
 Publicity Vehicles

Feature
Feature
Articles
Articles

News
News Interviews
Interviews
Releases
Releases Publicity
Publicity
Vehicles
Vehicles

Press
Press Special
Special
Conferences
Conferences Events
Events
 Public Relations

Systematically planning and

distributing information in an attempt
to control and manage image and the
nature of the publicity received.
 Public Relations Tools

Cause-related
Marketing

Publicity
Publicity Special
Special
Vehicles
Vehicles Publications
Publications

Community
Community Corporate
Corporate
Activities
Activities Advertising
Advertising

Public Affairs
Public Affairs Special
Special Event
Event
Activities
Activities Sponsorship
Sponsorship
 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
 IMC Audience Contact Tools

Public
Public
Broadcast
Broadcast Internet/
Internet/
Print
Print media
media Relations/
Relations/
media
media interactive
interactive
publicity
publicity

Out-of-home
Out-of-home Direct
Direct
media
media marketing
marketing

Target
Target Audience
Audience
Personal
Personal Sales
Sales
selling
selling Promotion
Promotion

Point-of-
Point-of- Word-of-
Word-of- Events
Events and
and Product
Product
purchase
purchase mouth
mouth sponsorship
sponsorship placements
placements
 Test Your Knowledge

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
 The IMC Planning Process

• Developing an integrated marketing

communications plan requires

Planning
Executing
Evaluating
Controlling
 Basic Elements of a Marketing Plan

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

2.
2. Specific
Specific marketing
marketing objectives
objectives

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

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

5.
5. A
A process
process for
for monitoring
monitoring and
and evaluating
evaluating performance
performance
 Model of the IMC Planning Process
Review of marketing plan

Analysis of Promotional program situation

Analysis of communications process

Budget determination

Develop integrated marketing communications program

Sales PR/ Personal Direct Internet/

Advertising
promotion publicity selling marketing interactive

Develop objectives and strategy for each

Develop message, media strategy, and tactics

Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program