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Integrated Marketing

Communications

Chapter 1

1-1
Chapter Overview

• Highly competitive global marketplace.


• Greater variety of media available
• Emerging trends.
• Accountability.
• Change in roles of account executives,
creatives and brand managers.
• Development of alternative media.

1-2
Integrated Marketing
Communications
Coordination and integration of
• all marketing communication tools
• All parts of the company
• Maximizes impact at a minimal cost.
Includes all
• business-to-business
• Channel
• customer,
• External and internal communications.
Communication Process

• Sender Noise
• Encoding
• Transmission device Clutter
• Decoding Jargon
• Receiver

1-4
A Model of the Communication Process
Noise Noise
Medium Outcome
Sender Receiver
Encoding Decoding

Message

Feedback
Feedback

Feedback: Info about


the outcome returns
The message can suffer
to the sender, with
distortion from jargon,
any additional noise.
timing, language, beliefs,
competition, etc.
Communication Mix

Product Price Promotion Place

Advertising
Database Marketing
Sales Promotions Direct Response Marketing
Sponsorship Marketing
E-Active Marketing
Personal Selling Social Media
Alternative Marketing
Public Relations
IMC Components

• The IMC Foundation


• Advertising tools
• IMC Media tools
• Promotional tools
• Integration tools

1-7
Market Dynamics That
Impact IMC

• Information technology
 Multiple sources, faster
• Changes in channel power
• Increase in competition
• Brand parity
• Decline in TV advertising
• Globalization

1-8
Trends That Impact IMC

• Accountability, measurable
results
• Use of alternative media
 New roles, responsibilities
• Influence of social media
Online Retail Spending
180.0 2014 SALES ~249B
156.0
160.0
Online Retail Spending (Billions)

140.0

120.0

100.0

80.0

60.0

40.0

20.0

0.0
2001 2005 2006 2007 2008 2009

Source: Adapted from Cate T. Corcoran, “Delivering the Goods: E-Tailing Sales to Rise But Gains Seen Slowing,” Women’s Wear
Daily, 197, no. 94 (May 5, 2009), p. 1; “Online Retail Spending, 2001-2007, and Projections, 2008,” The 2009 Statistical Abstract:
Online Retail Sales (www.census.,gov/compendia/statab/cats/wholesale_retail_trade/online_retail_sales, accessed November 23,
2009).
International Implications

• Goal – to coordinate marketing


efforts
• Greater challenge due to national
and cultural differences
• Standardization versus Adaptation
• “Think globally, but act locally”
Overview of IMC Text

Regulation Evaluation
& Ethics

Database, Sales Public


Direct Response, Promotions Relations &
& Personal Selling Sponsorships

Traditional E-Active Alternative


Media Marketing Channels

Advertising Advertising Design Advertising Design


Management Theory & Appeals Messages & Frameworks

Corporate Image Buyer


Brand Management Behaviors IMC Planning Process
Integrated Marketing Communications Plan – Structural Outline
Outline #2-4 occur at the corporate level
1. Executive Summary and apply to all markets. Some included
items:
•SWOT
2. Promotion Opportunity Analysis
•competitive analysis
•segmentation analysis and strategy
•target market selection
3. Corporate-Level Strategies
•Selection of channels to reach target markets
•positioning strategy (corporate and segment)
4. IMC Management •Corporate Image
•Brand Development and positioning
•Promotion Mix Strategy (corporate & target)
•Total budget ,
•And so on . . . .

IMC Objective: IMC Objective: IMC Objective: Mkt 4, 5,


Target Market Target Market Target Market etc.
1 2 3
The entire plan is
summarized into a •Budget
brief and concise •IMC Methodologies
document that •Advertising Each target market
•Consumer Promotions receives an
presents the major analysis that
•Trade Promotions
elements of the •Personal Selling includes these
plan to executive items. This is
•Sponsorships
repeated for
management. •Database Programs
every target
•Media Plan market.
•Evaluation Methodology

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