An Introduction to Integrated Marketing Communications

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

Taking The ³Only Vegas´ Campaign in a New Direction

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

S. Inc.The Growth of Advertising and Promotion Expenditure in Billions of Dollars Advertising Outside U. McGraw-Hill/Irwin . U.S. Sales Promotion 2004 1980 U..S. Advertising $0 $50 $100 $150 $200 $250 $300 $350 © 2007 McGraw-Hill Companies.

Value Relationship marketing Mass customization Customer relationship management (CRM) © 2007 McGraw-Hill Companies.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. McGraw-Hill/Irwin .. Inc.

. Inc. McGraw-Hill/Irwin .Coordinated Marketing Mix Elements Build Image © 2007 McGraw-Hill Companies.

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 © 2007 McGraw-Hill Companies.. Inc.

McGraw-Hill/Irwin .. Inc.Contemporary IMC Approach Packaging Sales promotion Direct response Point of purchase Publicity Media Advertising Public relations Interactive marketing Direct marketing Special events © 2007 McGraw-Hill Companies.

.Defining IMC IMC is a strategic business process used to plan. © 2007 McGraw-Hill Companies. develop. customers. The goal of IMC is to generate short-term financial returns and build long-term brand value. execute and evaluate coordinated. measurable. persuasive brand communication programs with consumers. prospects employees and other relevant external and internal audiences. McGraw-Hill/Irwin . Inc.

Inc. McGraw-Hill/Irwin .A Contemporary Perspective of IMC Recognized as a business process IMC Importance of relevant audience Multiple relevant audiences Demand for accountability and Demand for accountability Measurement of Outcomes © 2007 McGraw-Hill Companies..

© 2007 McGraw-Hill Companies.. McGraw-Hill/Irwin . Inc. B) The explosion of new technologies has given consumers greater control over the communication process. D) New global markets are emerging. E) All of the above explain the increasing reliance on integrated marketing communications.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. C) The use of the Internet and electronic commerce is growing.

Reasons for the Growing Importance of IMC 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 © 2007 McGraw-Hill Companies. Inc.. McGraw-Hill/Irwin .

38 $46. McGraw-Hill/Irwin .59 $26. symbols.44 $26.52 $59.19 © 2007 McGraw-Hill Companies.01 $24. 2005 Brand Value (Billions of Dollars) 1. GE 5.IMC and Branding Brand Identity is a combination of factors: Name.99 $35. packaging. Coca-Cola 2.94 $53. logo. Intel 6.45 $26. IBM 4. product or service performance. Microsoft 3. Disney 8. Mercedes $67. IMC plays a major role in the process of developing and sustaining brand identity and equity.84 $21. Inc. design. and image or associations in the consumer¶s mind.. Nokia 7. McDonald¶s 9. Marlboro 10.

Inc. McGraw-Hill/Irwin .Basic Elements of the Promotional Mix Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations Personal Selling © 2007 McGraw-Hill Companies..

Classifications of Advertising National Advertising Retail/Local Advertising Primary vs. McGraw-Hill/Irwin Organizations . Inc. Selective Demand Advertising Consumers Business-to-Business Advertising Professional Advertising Trade Advertising © 2007 McGraw-Hill Companies..

. Inc.Direct Marketing is Part of IMC Direct Mail Internet Sales Direct Response Advertising Direct Marketing Shopping Channels Catalogs © 2007 McGraw-Hill Companies. McGraw-Hill/Irwin Telemarketing .

. Inc.Bose Uses Direct Response Advertising © 2007 McGraw-Hill Companies. McGraw-Hill/Irwin .

Inc. McGraw-Hill/Irwin ..Sharp Creatively Integrated Advertising and the Internet © 2007 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 © 2007 McGraw-Hill Companies.

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

.Various Uses of Sales Promotion Introduce new products Get existing customers to buy more Combat competition Attract new customers Sales Promotion Enhance personal selling Maintain sales in off season Tie in advertising & personal selling Increase retail inventories © 2007 McGraw-Hill Companies. Inc. McGraw-Hill/Irwin .

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 © 2007 McGraw-Hill Companies. Inc.

Advertising Versus Publicity Factor Control Credibility Reach Frequency Cost Flexibility Timing Advertising Great Lower Measurable Schedulable High/Specific High Specifiable © 2007 McGraw-Hill Companies. Inc.. McGraw-Hill/Irwin Publicity Little Higher Undetermined Uncontrollable Low/Unspecified Low Tentative .

McGraw-Hill/Irwin . Inc.Publicity Vehicles Feature Articles News Releases Publicity Vehicles Interviews Press Conferences Special Events © 2007 McGraw-Hill Companies..

McGraw-Hill/Irwin .. Inc.Public Relations Tools Publicity Vehicles Special Publications Community Activities Corporate Advertising Cause-related Marketing Public Affairs Activities Special Event Sponsorship © 2007 McGraw-Hill Companies.

packaging) Sales Promotion Word-ofmouth Events and sponsorship Product placements (TV and movies) © 2007 McGraw-Hill Companies.. McGraw-Hill/Irwin .IMC Audience Contact Tools Broadcast media (TV/radio) Print media (newspapers. magazines) Public Relations/ publicity Internet/ interactive Out-of-home media Direct marketing Target Audience Personal selling Point-ofpurchase (displays. Inc.

A) promotional plan B) marketing plan C) communications plan D) marketing audit E) situation analysis © 2007 McGraw-Hill Companies.Test Your Knowledge The _____ is a written document that describes the overall marketing strategy and programs developed for an organization. McGraw-Hill/Irwin .. Inc. product line. or brand.

McGraw-Hill/Irwin ..The Marketing Plan 1. A detailed situation analysis 2. Specific marketing objectives 3. Inc. A program for implementing the strategy 5. A marketing strategy and program 4. A process for monitoring and evaluating performance © 2007 McGraw-Hill Companies.

. Inc. evaluate and control IMC Program © 2007 McGraw-Hill Companies.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 Advertising objectives Message strategy 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 Integrate and implement marketing communications strategies Monitor. McGraw-Hill/Irwin .

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