An Introduction to Integrated Marketing Communications

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

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. Value Relationship marketing Mass customization Customer relationship management (CRM)

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

Coordinated Marketing Mix Elements Build Image

2007 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

2007 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

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

Defining IMC

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

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

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

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

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.

2007 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
2007 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

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

Organizations

Direct Marketing is Part of IMC

Direct Mail Internet Sales Direct Response Advertising

Direct Marketing
Shopping Channels Catalogs
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Telemarketing

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, 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]

2007 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

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

Low Tentative

Publicity Vehicles
Feature Articles

News Releases

Publicity Vehicles

Interviews

Press Conferences

Special Events

2007 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

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

IMC Audience Contact Tools

Broadcast media (TV/radio)
Out-of-home media
Print media (newspapers, magazines)

Public Relations/ publicity

Internet/ interactive

Direct marketing

Target Audience
Personal selling
Point-ofpurchase (displays, packaging)

Sales Promotion

Word-ofmouth

Events and sponsorship

Product placements (TV and movies)

2007 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

2007 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

Integrate and implement marketing communications strategies Monitor, evaluate and control IMC Program
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin