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 2002

Promotion 1980
Advertising
Outside U.S.

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

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

IMC–Audience Contact Points

Point of Public
Publicity Packaging
Purchase Relations

Internet/ Direct
Interactive
Media Marketing Response
Communications
Audience Sales
Direct Mail
Promotion

Print Broadcast
Outdoor Events
Media Media
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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 IMC Principles Extend Worldwide

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

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Traditional Approach to Marketing

Communications

Sales
Publicity Promotion
Point of
Purchase

Media Packaging
Special Adver-
Events tising Direct
Response
Public
Relations
Interactive
Direct Marketing
Marketing

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

Contemporary IMC Approach

Sales Direct
Packaging
Promotion Response

Media
Point of
Purchase Adver-
Public
tising Relations
Publicity

Interactive
Marketing Direct
Special
Marketing
Events

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

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 Marketing Revolution and Shifting Tides

From Toward
Media Advertising Multiple Forms of Communication

Mass Media Specialized Media

Manufacturer Dominance Retailer Dominance

General Focus Data Based Marketing

Low Agency Accountability Greater Agency Accountability

Traditional Compensation Performance Based Compensation

Limited Internet Availability Widespread Internet Availability

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

IMC and Branding

2003 Brand Value

Brand Identity is a (Billions of Dollars)
combination of factors:
Name, logo, symbols, 1. Coca-Cola $70.5
design, packaging, 2. Microsoft $65.1
product or service 3. IBM $51.8
performance, and image 4. GE $42.3
or associations in the
5. Intel $31.1
consumer’s mind.
6. Nokia $29.4
IMC plays a major role 7. Disney $28.0
in the process of
8. McDonald’s $24.7
developing and
sustaining brand 9. Marlboro $22.2
identity and equity. 10. Mercedes $21.4
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Coordinated Marketing Mix

Elements Build Image

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

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

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

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 Direct Marketing is Part of IMC

Direct
Mail

Internet Direct
Response
Sales Advertising
Direct
Marketing
Shopping
Telemarketing
Channels

Cataloging
Catalogs

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

Bose Uses Direct Response Advertising

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

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Using the Internet as an IMC Tool

The
Internet

Educates or A Persuasive A Sales Tool

Informs Advertising or an Actual
Customers Medium Sales Vehicle

Obtains Provides Builds and

Communicates
Customer Customer Maintains
and Interacts
Database Service and Customer
With Buyers
Information Support Relationships
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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 American Airlines Encourages
Customers to Do It All Online

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

Sales Promotion Tools

Coupons
Samples Trade
Allowances
Premiums
POP Displays
Contests/Sweepstakes
Training
Refunds/Rebates Programs
Bonus Packs Trade
Shows
Loyalty Programs
Coop
Events Advertising

• Consumer- • Trade-
oriented oriented
• [For end-users] • [For resellers]
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Various Uses of Sales Promotion

Introduce New Get Existing

Products Customers to
Buy More

Combat Attract New

Competition Customers
Sales
Promotion
Enhance Maintain Sales In
Personal Selling Off Season

Tie In
Increase Retail
Advertising &
Personal Selling Inventories

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

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 Advertising Versus Publicity

Factor Advertising Publicity

Control Great Little

Credibility Lower Higher

Reach Measurable Undetermined

Frequency Schedulable Uncontrollable

Cost High/Specific Low/Unspecified

Flexibility High Low

Timing Specifiable Tentative

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

Publicity Vehicles

Feature
Articles

News
Interviews
Releases Publicity
Vehicles

Press Special
Conferences Events
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Public Relations Tools

Publicity Special
Vehicles Publications

Community Corporate Cause-related

Activities Advertising Marketing

Public Affairs Special Event

Activities Sponsorship

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

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 DuPont Uses Advertising to Enhance
Its Corporate Image

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© 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

Sales PR/ Personal Direct Internet/

Advertising
Promotion Publicity Selling Marketing Interactive

Advertising Sales PR/ Personal Direct Internet/

Promotion Publicity Selling Marketing Interactive
Objectives Objectives Objectives Objectives Objectives Objectives

Message Sales PR/ Personal Direct Internet/

Promotion Publicity Selling Marketing Interactive
Strategy Strategy Strategy Strategy Strategy 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

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 M A C T ria d
M

+P+T
A C
M = M e ss a g e A = A u d ie n c e C = C h a n n e l
P = P u rp o se T = T im in g

You are the Brand

• Brand
• Brand Equity
• Brand Extension
• Brand Expansion
• Brand Familiarity
• Brand Favorability
• Brand Identity
• Brand Image
• Brand Insistence
• Brand Loyalty
• Brand Power (Brand Champions)

Questions ???

M. Larry Litwin, APR, Fellow

PRSA
larry@larrylitwin.com
www.larrylitwin.com