An Introduction To Integrated Marketing Communications

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

2002 1980

Advertising Outside U.S. $0

$50

$100

$150

$200

$250

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$300

IMC–Audience Contact Points Point Point of of Purchase Purchase Internet/ Internet/ Interactive Interactive Media Media Direct Direct Mail Mail

Print Print Media Media

Publicity Publicity

Public Public Relations Relations

Marketing Marketing Communications Communications Audience Audience

Broadcast Broadcast Media Media

Outdoor Outdoor

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Packaging Packaging

Direct Direct Response Response Sales Sales Promotion Promotion

Events Events

IMC Principles Extend Worldwide

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Traditional Approach to Marketing Communications

Point of Purchase

Special Events

Publicity

Media Advertising

Public Relations Direct Marketing

Sales Promotion

Packaging

Direct Response

Interactive Marketing

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Contemporary IMC Approach

Packaging

Sales Promotion

Point of Purchase Publicity

Interactive Marketing

Media Advertising

Direct Marketing

Direct Response

Public Relations

Special Events

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

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Marketing Revolution and Shifting Tides 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 Data Based Based Marketing Marketing

Low Low Agency Agency Accountability Accountability

Greater Greater Agency Agency Accountability Accountability

Traditional Traditional Compensation Compensation

Performance Performance Based Based Compensation Compensation

Limited Limited Internet Internet Availability Availability

Widespread Widespread Internet Internet Availability Availability

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Dell Focuses on Building a Relationship With Customers

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IMC and Branding Brand Brand Identity Identity is is aa combination combination of of factors: factors: Name, Name, logo, logo, symbols, symbols, design, design, packaging, packaging, product product or or service service performance, performance, and and image image or or associations associations in in the the consumer’s consumer’s mind. mind. IMC IMC plays plays aa major major role role in in the the process process of of developing developing and and sustaining sustaining brand brand identity identity and and equity. equity.

2003 Brand Value (Billions of Dollars)

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

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

Intel’s Advertising Helps Build Brand Equity

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Coordinated Marketing Mix Elements Build Image

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Basic Elements of 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 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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

Organizations

Great Advertising Can Strike a Responsive Chord with Consumers

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An Example of “B-to-B” Advertising

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Direct Marketing is Part of IMC Direct Direct Mail Mail Direct Direct Response Response Advertising Advertising

Internet Internet Sales Sales

Direct Direct Marketing Marketing Shopping Shopping Channels Channels

Telemarketing Telemarketing Cataloging Catalogs Cataloging Catalogs © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Bose Uses Direct Response Advertising

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Using the Internet as an IMC Tool

The The Internet Internet

Educates Educates or or Informs Informs Customers Customers Obtains Obtains Customer Customer Database Database Information Information

AA Persuasive Persuasive Advertising Advertising Medium Medium

Communicates Communicates and and Interacts Interacts With With Buyers Buyers

AA Sales Sales Tool Tool or or an an Actual Actual Sales Sales Vehicle Vehicle

Provides Provides Customer Customer Service Service and and Support Support

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Builds Builds and and Maintains Maintains Customer Customer Relationships Relationships

American Airlines Encourages Customers to Do It All Online

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Sales Promotion Tools Coupons Trade Allowances

Samples Premiums

POP Displays

Contests/Sweepstakes

Training Programs Trade Shows Coop Advertising

Refunds/Rebates Bonus Packs Loyalty Programs Events

• Consumeroriented

Trade-oriented

• •

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[For resellers]

Various Uses of Sales Promotion Introduce Introduce New New Products Products

Combat Combat Competition Competition

Enhance Enhance Personal Personal Selling Selling

Get Get Existing Existing Customers Customers to to Buy More Buy More

Sales Sales Promotion Promotion

Tie Tie In In Advertising Advertising & & Personal Personal Selling Selling

Attract Attract New New Customers Customers

Maintain Maintain Sales Sales In In Off Off Season Season

Increase Increase Retail Retail Inventories Inventories

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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

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Publicity Vehicles Feature Feature Articles Articles

News News Releases Releases

Interviews Interviews Interviews

Publicity Publicity Vehicles Vehicles

Press Press Conferences Conferences

Special Special Events Events

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Public Relations Tools Publicity Vehicles

Community Activities

Special Publications

Corporate Advertising Advertising

Public Affairs Activities

Cause-related Marketing

Special Event Sponsorship

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DuPont Uses Advertising to Enhance Its Corporate Image

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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

PR/ Publicity

Personal Selling

Direct Marketing

Internet/ Interactive

Advertising Objectives

Sales Promotion Objectives

PR/ Publicity Objectives

Personal Selling Objectives

Direct Marketing Objectives

Internet/ Interactive Objectives

Message Strategy

Sales Promotion Strategy

PR/ Publicity Strategy

Personal Selling Strategy

Direct Marketing Strategy

Internet/ Interactive Strategy

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

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