You are on page 1of 28

An Introduction to Integrated Marketing Communications

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Growth of Advertising and Promotion

Expenditure in Billions of Dollars


U.S. Advertising U.S. Sales Promotion Advertising Outside U.S. $0 $50 $100 $150 $200 $250 $300 2002 1980

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

IMCAudience Contact Points


Point of Purchase Internet/ Interactive Media Direct Mail Publicity Public Relations Packaging

Marketing Communications Audience

Direct Response Sales Promotion

Print Media

Broadcast Media

Outdoor

Events

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

IMC Principles Extend Worldwide

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Traditional Approach to Marketing Communications


Sales Promotion

Point of Purchase

Publicity

Special Events

Media Advertising

Packaging

Direct Response

Public Relations Direct Marketing

Interactive Marketing

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Contemporary IMC Approach


Sales Promotion Direct Response

Packaging

Point of Purchase

Publicity

Media Advertising

Public Relations

Interactive Marketing

Direct Marketing

Special Events

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The US Army Uses TV Advertising as Part of Its IMC Program

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


2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Marketing Revolution and Shifting Tides


From
Media Advertising Mass Media Manufacturer Dominance General Focus Low Agency Accountability Traditional Compensation Limited Internet Availability

Toward
Multiple Forms of Communication Specialized Media Retailer Dominance Data Based Marketing Greater Agency Accountability
Performance Based Compensation

Widespread Internet Availability

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Dell Focuses on Building a Relationship With Customers

2003 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 consumers mind. IMC plays a major role in the process of developing and sustaining brand identity and equity.

2003 Brand Value


(Billions of Dollars)

1. Coca-Cola 2. Microsoft 3. IBM 4. GE 5. Intel 6. Nokia 7. Disney 8. McDonalds 9. Marlboro 10. Mercedes

$70.5 $65.1 $51.8 $42.3 $31.1 $29.4 $28.0 $24.7 $22.2 $21.4

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Intels Advertising Helps Build Brand Equity

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


2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Coordinated Marketing Mix Elements Build Image

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Basic Elements of the Promotional Mix


Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion

Publicity/Public Relations
Personal Selling
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Classifications of Advertising
National Advertising Retail/Local Advertising Primary vs. Selective Demand Advertising

Consumers

Business-to-Business Advertising Professional Advertising Trade Advertising


2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Organizations

Great Advertising Can Strike a Responsive Chord with Consumers

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


2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

An Example of B-to-B Advertising

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct Marketing is Part of IMC


Direct Mail Internet Sales Direct Response Advertising

Direct Marketing
Shopping Channels Cataloging Catalogs
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Telemarketing

Bose Uses Direct Response Advertising

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Using the Internet as an IMC Tool

The Internet

Educates or Informs Customers

A Persuasive Advertising Medium

A Sales Tool or an Actual Sales Vehicle

Obtains Customer Database Information

Communicates and Interacts With Buyers

Provides Customer Service and Support

Builds and Maintains Customer Relationships

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

American Airlines Encourages Customers to Do It All Online

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sales Promotion Tools


Coupons Samples Premiums
Contests/Sweepstakes

Trade Allowances

POP Displays Training Programs Trade Shows Coop Advertising

Refunds/Rebates Bonus Packs Loyalty Programs Events

Consumeroriented
[For end-users]

Tradeoriented
[For resellers]

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Various Uses of Sales Promotion


Introduce New Products Get Existing Customers to Buy More

Combat Competition

Enhance Personal Selling

Sales Promotion

Attract New Customers

Maintain Sales In Off Season

Tie In Advertising & Personal Selling

Increase Retail Inventories

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advertising Versus Publicity


Factor Control Credibility Reach Advertising Great Lower Measurable Schedulable Publicity Little Higher Undetermined

Frequency
Cost Flexibility Timing

Uncontrollable
Low/Unspecified

High/Specific
High Specifiable
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Low Tentative

Publicity Vehicles
Feature Articles

News Releases

Publicity Vehicles

Interviews

Press Conferences

Special Events

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Public Relations Tools


Publicity Vehicles Special Publications

Community Activities

Corporate Advertising

Cause-related Marketing

Public Affairs Activities

Special Event Sponsorship

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

DuPont Uses Advertising to Enhance Its Corporate Image

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Integrated Marketing Communications Planning Model


Review of Marketing Plan Promotional Program Situation Analysis Analysis of the Communications Process Budget Determination Develop Integrated Marketing Communications Programs Advertising Sales Promotion Sales Promotion Objectives Sales Promotion Strategy PR/ Publicity PR/ Publicity Objectives PR/ Publicity Strategy Personal Selling Personal Selling Objectives Personal Selling Strategy Direct Marketing Direct Marketing Objectives Direct Marketing Strategy Internet/ Interactive Internet/ Interactive Objectives Internet/ Interactive Strategy

Advertising Objectives
Message Strategy

Integration & Implementation of Marketing Communications Strategies Monitor, Evaluate & Control Promotional Program
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Marketing Plan


1. A detailed situation analysis

2. Specific marketing objectives

3. A marketing strategy and program

4. A program for implementing the strategy

5. A process for monitoring and evaluating performance


2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin