An introduction to integrated marketing communications

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  • Chapter One An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • Relation to text This slide relates to material on page 5 of the text. Summary Overview This chart displays the growth of advertising and promotion in the U.S. and outside the U.S. over the past twenty years. Reasons for the growth in advertising and promotion are: Overall growth of both U.S. and global economies Efforts of expansion minded marketers to take advantage of the growth opportunities Recognition around the world of the value and importance of advertising and promotion as part of the marketing process Use of this slide This slide can be used to show that advertising and promotion are an integral part of our social and economic systems. Over the years advertising has evolved into a vital communications system for both consumers and businesses. In market based economies, consumers have come to rely on advertising and other forms of promotion for information they can use in making purchase decisions.
  • Relation to text This slide relates to material on pp. 9-10 of the text. Summary Overview This slide introduces the concept of integrated marketing communications. It shows a broad perspective of an IMC approach that considers all sources of brand or company contact that a customer or prospect has with a product or service. Examples of the various sources are listed on the slide. The IMC perspective requires that a company develop a total marketing communications strategy that recognizes all of the ways a company can communicate with its customers. Use of this slide This slide can be used to introduce the concept of integrated marketing communications and how consumers’ perceptions of a company and/or various brands are formed through messages they receive or contacts they have with the company.
  • Relation to text This slide relates to material on pp. 9-11 of the text. Summary Overview This slide shows the traditional approach to advertising and promotion where many of the marketing and promotional functions were planned and managed separately with different budgets, different views of the market, and different goals and objectives. Many of the marketing activities such as package design, sales promotion, and direct marketing services were viewed as ancillary services and handled on a project basis rather than integrating them into the IMC program. Use of this slide This slide can be used to show the traditional approach to marketing communications that lacks coordination and consistency. The disconnected puzzle pieces are designed to demonstrate how traditional approaches to marketing communications often viewed the various IMC tools as separate pieces of the puzzle rather than having them all work together.
  • Relation to text This slide relates to material on pp. 9-11 of the text which discusses the contemporary approach to integrated marketing communications. Summary Overview This slide shows the contemporary approach to advertising and promotion which is referred to as Integrated Marketing Communications. This approach seeks to have all of a company’s marketing and promotional activities project a consistent, unified image in the marketplace. It calls for a centralized messaging function so that everything a company says and does communicates a common theme and positioning Use of this slide This slide can be used to show the contemporary approach to marketing communications that includes coordination and consistency. The connected puzzle pieces are designed to demonstrate how the various IMC tools are coordinated with media advertising and work together in a seamless fashion to create an effective communications program.
  • Relation to text This slide relates to material on pp. 12-14 of the text. Summary Overview The integrated marketing communications movement is also being driven by changes in the ways companies market their products and services. A major reason for the growing importance of the IMC approach is the ongoing revolution that is changing the rules of marketing. These changes include: A shift in dollars from media advertising to other forms of promotions particularly consumer and trade oriented sales promotion. A movement away from mass media and advertising toward more targeted communication tools such as event marketing and sponsorship, direct mail, and the Internet. A shift in marketplace power from manufacturers to retailers resulting in retailers demanding larger promotional fees and allowances from manufacturers. Technology has allowed for a rapid increase in database development and information sharing. Marketers are using this information to improve market targeting. Greater accountability from advertising agencies and changes in agency compensation. Companies are moving more toward incentive based systems of compensation. Rapid growth of the Internet. The interactive nature of the Internet has made it a vital part of most companies’ communications strategy Use of this slide This slide can be used to explain the reasons for the growing importance of IMC in contemporary marketing.
  • Relation to text This slide relates to material found on pp14-15 and IMC Perspective 1-2 of the text. Summary Overview With more and more products and services available to consumers, developing and maintaining brand identity is becoming increasingly more important. Well known brands have a major competitive advantage in today’s marketplace. A well-defined and coordinated IMC plan contributes to overall brand identity and equity. Use of this slide This slide can be used to define brand identity and discuss the importance of building and sustaining strong brand identity. The list of the 10 most valuable brands, as measured by the brand consultancy company Interbrand, should be familiar to your students. You might discuss how these popular brands may have a competitive edge with consumers during the purchase decision process.
  • Relation to text This slide relates to material on pp. 14-16 of the text. Summary Overview This slide shows a print ad for a Mont Blanc pen. Mont Blanc uses a classical design and a distinctive brand name as well as a high price to position its pens as high-quality, high-status writing instruments. The upscale image is enhanced by the company’s strategy of distributing its products only though boutiques, jewelry stores, and other exclusive retail shops. Mont Blanc’s distinctive image is a result of coordination of all of the marketing mix elements. Use of this slide This slide can be used to show how Mont Blanc uses a variety of marketing mix elements including price, product design, brand name, and distribution strategy to create a high-quality, upscale image for its writing instruments.
  • Relation to text This slide relates to material on page 16-24 and Figure 1-1. Summary Overview The promotional mix is the basic tools used to accomplish an organization’s communication objectives. These tools include: Advertising – any paid form of non personal communication about an organization, product, service, or idea by an identified sponsor Direct marketing – communication directly with target customers to generate a response and/or transaction Interactive/Internet marketing – communication through interactive media such as the Internet, CD-ROMS and kiosks. Sales promotion – marketing activities that provide extra value or incentives to sales force, distributors, or consumers to stimulate immediate sales Publicity/Public Relations – Publicity is a form of non-personal communication not directly paid for or run under identified sponsorship. Public relations is a management function which executes programs of action to earn public understanding and acceptance an enhance the image of the company. Personal Selling – person-to-person communication between a seller and buyer Use of this slide This slide can be used to introduce and define the various elements of the promotional mix.
  • Relation to text This slide relates to material on pp. 18-20 of the text. Summary Overview Direct marketing is a form of integrated marketing communications whereby an organization communicates directly with target customers to generate a response and/or transaction. It involves a variety of activities including: Direct mail Direct response advertising (on TV, radio or in magazines or newspapers) Telemarketing Internet Sales Catalogs Shopping channel Use of this slide This slide can be used to provide an overview of direct marketing and the various forms it can take.
  • Relation to text This slide relates t material on pp. 20-21 which discusses interactive marketing and the Internet as IMC tools. Summary Overview The rapid changes in technology have led to dramatic growth of communications through interactive media, particularly the Internet. This communication medium is unique in that it allows for the back-and-forth flow of information in real time. Customers can perform a variety of functions on the Internet such as receive and alter information and images, make inquires, respond to questions, and, of course, make purchases. The Internet has changed the ways companies communicate to their customers as companies and organizations of all sizes have developed websites to promote their products and services. Use of this slide This slide can be used to show that the Internet has changed the way companies communicate with their customers. Because of its interactive nature, it is a very effective way to communicate with customers. Actually, it is a medium that can be used to execute all elements of the promotional mix. In addition to advertising, companies can offer sales promotion incentives such as coupons or contests, do direct marketing, and execute public relations, and personal selling functions via the Internet.
  • Relation to text This slide relates to material on pp. 20-21 of the text. Summary Overview The Internet is a medium that can be used for a variety of purposes. This ad for American Airlines shows how travelers can use the airline’s website for a variety of their travel needs. For example they can use the AA.com to purchase tickets, reserve seats, or make hotel and car reservations. Use of slide This slide can be used to show how the Internet can be a very effective way to communicate with customers. Many companies are recognizing the value of communicating via the Internet and are developing strategies to make their websites a part of their IMC programs.
  • Relation to text This slide relates to material on pp. 21-22 of the text which discusses the role of sales promotion as an IMC tool. Summary Overview Sales promotion is defined as those activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales. Sales promotion is generally broken down into two categories: Customer-oriented – targeted to the ultimate user of the product or service and includes coupons, sampling, premiums, contests, sweepstakes, refunds/rebates, bonus packs, events, and loyalty programs. Trade-oriented – targeted to marketing intermediaries such as wholesalers, distributors, and retailers and includes trade allowances, price deals, sales contests, trade shows, and cooperative advertising. Use of slide This slide can be used to introduce sales promotion as an IMC tool and the various types consumer and trade promotions.
  • Relation to text This slide relates to the material on pp. 21-22 which discusses the role of sale promotion as part of the IMC program. Summary Overview There are various reasons why companies choose to use sales promotion in their IMC programs. The various uses of consumer and trade promotion include: Introduce new products Get existing customers to buy more Attract new customers Maintain sales in off seasons Increase retailer inventories Enhance or tie in advertising with personal selling Combat competition Use of Slide This slide can further supplement the discussion of sales promotion and why companies use this tool as part of their IMC programs
  • Relation to text This slide relates to material on pp. 22-23 which discusses the role of publicity. Summary Overview Another important component of an organization’s promotional mix is publicity/public relations. Publicity refers to the non personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. Companies attempt to get the media to cover or run favorable stories on their products, services, or causes. It usually comes in the form of a news story, editorial, or announcement. There are a number of advantages and disadvantages that publicity has relative to advertising. This slide compares advertising and publicity on a number of factors. Use of this slide This slide can be used to introduce publicity/public relations and to discuss how publicity compares to advertising with respect to various factors.
  • Relation to text This slide relates to the material on pp. 22-24. Summary Overview Companies attempt to get the media to cover or run favorable stories on their products, services, or causes. There are a number of publicity vehicles available to marketers. Publicity can be generated through the use of: feature articles news releases press conferences special events interviews Use of Slide This slide can be used to show the various methods that can be used to generate publicity for companies, brands, organizations, or causes.
  • Relation to text This slide relates to material on pp. 22-23 which discusses public relations. Summary Overview It is important to distinguish between publicity and public relations. When an organization systematically plans and distributes information in an attempt to control and manage its image and the nature of the publicity it receives, it is really engaging in public relations. There are a variety of public relations tools available to marketers such as publicity vehicles, special publications, community activities, fund raising programs, public affairs activities, and special event sponsorships. Organizations can also use advertising as a public relations tool. Use of Slide This slide can be used to explain the various public relations tools. It also provides an opportunity to discuss the differences between public relations and publicity.
  • Relation to text This slide relates to material on pp. 23-24 and Exhibit 1-14 of the text. Summary Overview This slide shows a corporate image print ad for DuPont and is a good example of how companies using advertising as a public relations tool. The goal of DuPont’s corporate image campaign is to shows how the company using science to make life better for everyone. This particular ad notes how DuPont’s fiber system products keep people warm making it possible for them to work and play in cold temperatures. Use of slide This slide can be used to demonstrate how advertising can be used in combination with public relations to establish or enhance the overall corporate image of a company or organization.
  • Relation to text This slide presents the IMC Planning Model which is shown in Figure 1-4 and discussed on pp. 25-32. Summary Overview This slide presents the IMC Planning Model which is discussed in detail in Chapter 1. This model presents the framework for developing, implementing, evaluating, and controlling the firm’s IMC program and activities. Use of this slide This model should be reviewed very carefully at the beginning of the course to show students what is involved in the development of a complete IMC program. It presents the framework that is used for the text and provides an opportunity to provide students with the “big picture” and a roadmap of what will be covered in the course.
  • Relation to text This slide relates to material on pp. 25 of the text which discusses the marketing plan. Summary Overview The first step in the IMC planning process is to review the marketing plan and objective. Before developing a promotional plan, marketers must understand where the company (or brand) has been, its current position in the market, where it intends to go, and how it plans to get there. Most of this information should be contained in the marketing plan . Marketing plans can take several forms, but general include the following five basic elements: A detailed situation analysis , which includes an internal marketing audit and review and an external analysis of the market competition and environmental factors. Specific marketing objectives that provide direction, a time frame for marketing activities, and a mechanism for measuring performance. A marketing strategy and program that includes selection of target markets and plans for the four elements of the marketing mix A program for implementing the strategy , including determining specific tasks to be performed and responsibilities. A process for monitoring and evaluating performance and providing feedback so proper control can be maintained and necessary changes can be made in the overall marketing strategies and tactics. Use of this slide This slide can be used to explain the importance of marketing planning is in the development of an IMC program and how good IMC planning begins with a review of the overall marketing plan and objectives. Promotion is only one part of the marketing process and must be integrated into the overall marketing plan.

Transcript

  • 1. An Introduction to Integrated Marketing Communications
  • 2. The Growth of Advertising and Promotion
  • 3.                                                                                              Before the year 2000, newspapers and TV owned over 90 percent of the
  • 4. IMC–Audience Contact Points Marketing Communications Audience Point of Purchase Publicity Public Relations Packaging Direct Response Sales Promotion Events Outdoor Broadcast Media Print Media Direct Mail Internet/ Interactive Media
  • 5. Traditional Approach to Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Point of Purchase Publicity Public Relations Direct Marketing Interactive Marketing Special Events Packaging Sales Promotion Direct Response Media Adver- tising
  • 6. Contemporary IMC Approach © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Point of Purchase Publicity Interactive Marketing Public Relations Direct Marketing Special Events Packaging Sales Promotion Direct Response Media Adver- tising
  • 7. Marketing Revolution and Shifting Tides From Toward © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Traditional Compensation Performance Based Compensation Traditional Compensation Performance Based Compensation 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 Limited Internet Availability Widespread Internet Availability 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
  • 8. 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 consumer’s mind. IMC plays a major role in the process of developing and sustaining brand identity and equity.
  • 9. Coordinated Marketing Mix Elements Build Image + © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 10. Basic Elements of the Promotional Mix Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations Personal Selling Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 11. Direct Marketing is Part of IMC Direct Response Advertising Direct Mail Telemarketing Catalogs Shopping Channels Direct Marketing © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Direct Response Advertising Direct Mail Cataloging Telemarketing Internet Sales Shopping Channels
  • 12. Using the Internet as an IMC Tool Obtains Customer Database Information Communicates and Interacts With Buyers Provides Customer Service and Support Educates or Informs Customers A Persuasive Advertising Medium A Sales Tool or an Actual Sales Vehicle The Internet © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Builds and Maintains Customer Relationships Obtains Customer Database Information Communicates and Interacts With Buyers Provides Customer Service and Support Educates or Informs Customers A Persuasive Advertising Medium A Sales Tool or an Actual Sales Vehicle
  • 13. American Airlines Encourages Customers to Do It All Online + © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 14. Sales Promotion Tools
    • Consumer-oriented
    • [For end-users]
    • Trade-oriented
    • [For resellers]
    Events Events Loyalty Programs Loyalty Programs Bonus Packs Bonus Packs Refunds/Rebates Refunds/Rebates Contests/Sweepstakes Contests/Sweepstakes Premiums Premiums Samples Samples Coupons Coupons Coop Advertising Coop Advertising Trade Shows Trade Shows Training Programs Training Programs POP Displays POP Displays Trade Allowances © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 15. Various Uses of Sales Promotion Introduce New Products Get Existing Customers to Buy More Attract New Customers Maintain Sales In Off Season Increase Retail Inventories Tie In Advertising & Personal Selling Enhance Personal Selling Sales Promotion © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Introduce New Products Get Existing Customers to Buy More Attract New Customers Maintain Sales In Off Season Increase Retail Inventories Tie In Advertising & Personal Selling Enhance Personal Selling Combat Competition
  • 16. Advertising Versus Publicity Advertising Publicity Tentative Low Low/Unspecified Uncontrollable Great Lower Measurable Schedulable High/Specific High Specifiable Undetermined Higher Little Factor Control Credibility Reach Frequency Cost Flexibility Timing © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 17. Publicity Vehicles Interviews Feature Articles Special Events News Releases Publicity Vehicles © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Interviews Feature Articles Special Events Press Conferences News Releases
  • 18. Public Relations Tools Corporate Advertising Corporate Advertising Cause-related Marketing Cause-related Marketing Publicity Vehicles Community Activities Public Affairs Activities Special Publications Special Event Sponsorship Publicity Vehicles Community Activities Public Affairs Activities Special Publications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 19. DuPont Uses Advertising to Enhance Its Corporate Image + © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 20. Integrated Marketing Communications Planning Model © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Promotional Program Situation Analysis Analysis of the Communications Process Budget Determination Develop Integrated Marketing Communications Programs Review of Marketing Plan Advertising Sales Promotion PR/ Publicity Personal Selling Direct Marketing Advertising Objectives Sales Promotion Objectives PR/ Publicity Objectives Personal Selling Objectives Direct Marketing Objectives Message Strategy Sales Promotion Strategy PR/ Publicity Strategy Personal Selling Strategy Direct Marketing Strategy Integration & Implementation of Marketing Communications Strategies Monitor, Evaluate & Control Promotional Program Internet/ Interactive Internet/ Interactive Objectives Internet/ Interactive Strategy
  • 21. The Marketing Plan 1. A detailed situation analysis 1. A detailed situation analysis 3. A marketing strategy and program 4. A program for implementing the strategy 2. Specific marketing objectives © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 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