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An Introduction to Integrated
Marketing Communications
1
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
It’s Google’s World
The most powerful brand in the world
It’s Google’s World
• Founded in 1998
– Delivers relevant search results by
favoring pages linked to by other sites
– Sells ads linked to search keywords
– Annual revenue exceeds $10 billion
• Keys to success
– Simplicity
– Speed
– Accuracy
Google Adwords
• Keyword-targeting advertising
– Text ads at top or side of search results
– Advertisers compete for top spot
– Cost is “per click” (CPC)
• Contextual ads
– Appear on other relevant Web sites
• Site-targeted
– Generates sales and branding
– Cost is per thousand impressions (CPM)
Google Rapidly Expanding
• Beyond online search advertising
– Automated purchase of radio ads
– Magazine and newspaper ad-buying
– YouTube
– Google TV Ads
– Partnership with Nielsen Media Research
– New varieties of online ads
Rapidly Changing Media Environment
• Increasingly difficult to target
audiences & communicate effectively
– Consumers no longer passive recipients
– They demand more than information
– From a myriad of sources
Integrated Marketing Approach
• Traditional mass media
– Television, radio, magazines, newspapers,
billboards
– Now drive consumers to Web sites
• Online strategies
– Provide detailed information
– Be experiential, entertaining, interactive
– MySpace, YouTube, Facebook, wireless
mobile media devices, e-mail
The New Look of Advertising
Interactive, Informative, Entertaining
What is Marketing?
• An organizational
function
• Processes for creating,
communicating, and
delivering value to
customers
• Managing customer
relationships in ways
that benefit the
organization and its
stakeholders
Customer relationship
management (CRM)
Value
Relationship marketing
Mass customization
Marketing Mix
• The four Ps
Product
Price
Place
Promotion
Traditional Marketing Approach
Point of
purchase
Public
relations
Direct
marketing
Interactive
marketing
Special
events
Packaging
Sales
promotion
Direct
response
Media
Adver-
tising
Publicity
Contemporary IMC Approach
Point of
purchase
Publicity
Interactive
marketing
Public
relations
Direct
marketing
Special
events
Packaging
Sales
promotion
Direct
response
Media
Adver-
tising
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.
Contemporary Perspective of IMC
Demand for accountability
Demand for accountability and
measurement of outcomes
Recognized as a business process
Importance of relevant audience
Recognized as a business process
Multiple relevant audiences
IMC
Growing Importance of IMC
• Strategic integration of
communications functions
– Avoids duplication
– Synergy among promotional tools
– More efficient and effective marketing
• Rapidly changing environment
– Consumers
– Technology
– Media
Behind the Growing Importance of IMC
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
From Toward
The Role of IMC in Branding
• Brand identity is a combination of
– Name
– Logo
– Symbols
– Design
– Packaging
– Performance
– Image or associations
IMC plays a major role
in developing and
sustaining brand
identity and equity
The Most Valuable Brands in the World
Rank Brand
Brand Value
(Billions)
1 Coca-Cola $65.32
2 Microsoft 58.71
3 IBM 57.09
4 General Electric 51.57
5 Nokia 33.70
6 Toyota 32.07
7 Intel 30.95
8 McDonald’s 29.39
9 Disney 29.21
10 Mercedes-Benz 23.57
Finding New Ways to Build Brands
• Consumers are driving the trend
– They view brands as a form of
self-expression
– They know more about brands and the
companies that make them
– They seek and share information with
other consumers via the Internet
Finding New Ways to Build Brands
• Get consumers involved
– Apple Computer lets consumers test
products in store
• Interaction can be the best marketing
– Facebook
– Google
The Promotional Mix
Advertising
Direct Marketing
Interactive/
Internet Marketing
Sales Promotion
Publicity/Public
Relations
Personal Selling
Advertising
• Paid forms of non-personal
communication
– About an organization, product, service,
or idea by an identified sponsor
– No feedback from audience
– Important for products and services
aimed at mass consumer markets
– Cost effective
The Most Common Forms of Advertising
Primary vs. Selective
Demand Advertising
Business-to-Business Advertising
Organizations
National Advertising
Retail/Local Advertising
Professional Advertising
Trade Advertising
Consumers
Direct Marketing
Direct
Response
Advertising
Direct
Mail
Catalogs
Telemarketing
Internet
Sales
Shopping
Channels
Direct
Marketing
Bose Uses Direct Response Advertising
Includes call
for action.
Phone number,
mail-in form,
website address
provided.
Interactive/Internet Marketing
• Back-and-forth communication
– Users participate in and modify the form
and content of information
– Happens in real time
• Interactive media
– Internet
– CD-ROMs
– Kiosks
– Interactive television
– Digital cell phones
Using the Internet as an IMC Tool
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
The
Internet
Sales Promotion
Consumer-oriented
[For end-users]
Trade-oriented
[For resellers]
Coupons
Samples
Premiums
Contest/Sweepstake
Refunds/Rebates
Bonus Packs
Loyalty Programs
Events
Trade Allowances
POP Displays
Training Programs
Trade Shows
Coop Advertising
Sales Promotion
• Most of the promotional budget now
goes to sales promotion
– Declining brand loyalty
– Increased consumer sensitivity to “deals”
– Larger and more powerful retailers are
demanding more trade promotion support
Publicity Vehicles
Interviews
Feature
Articles
Special
Events
Press
Conferences
News
Releases Publicity
Vehicles
Public Relations
Systematically planning and
distributing information in an attempt
to control and manage image and the
nature of the publicity received.
Public Relations Tools
Corporate
Advertising
Cause-related
Marketing
Publicity
Vehicles
Community
Activities
Public Affairs
Activities
Special
Publications
Special Event
Sponsorship
Personal Selling
• Person-to-person communication
– A seller attempts to assist and/or
persuade prospective buyers to make a
purchase or act on an idea
IMC Audience Contact Tools
Target Audience
Broadcast
media
Print media
Public
Relations/
publicity
Internet/
interactive
Direct
marketing
Sales
Promotion
Product
placements
Events and
sponsorship
Word-of-
mouth
Point-of-
purchase
Personal
selling
Out-of-home
media
The IMC Planning Process
• Developing an integrated marketing
communications plan requires
Planning
Executing
Evaluating
Controlling
Basic Elements of a Marketing Plan
5. A process for monitoring and evaluating performance
1. A detailed situation analysis
3. A marketing strategy and program
4. A program for implementing the strategy
2. Specific marketing objectives
Model of the IMC Planning Process
Analysis of Promotional program situation
Review of marketing plan
Integrate and implement marketing communications strategies
Monitor, evaluate and control IMC Program
Develop objectives and strategy for each
Develop message, media strategy, and tactics
Analysis of communications process
Budget determination
Sales
promotion
PR/
publicity
Personal
selling
Direct
marketing
Internet/
interactive
Advertising
Develop integrated marketing communications program

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Chapter01.ppt

  • 1. An Introduction to Integrated Marketing Communications 1 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
  • 2. It’s Google’s World The most powerful brand in the world
  • 3. It’s Google’s World • Founded in 1998 – Delivers relevant search results by favoring pages linked to by other sites – Sells ads linked to search keywords – Annual revenue exceeds $10 billion • Keys to success – Simplicity – Speed – Accuracy
  • 4. Google Adwords • Keyword-targeting advertising – Text ads at top or side of search results – Advertisers compete for top spot – Cost is “per click” (CPC) • Contextual ads – Appear on other relevant Web sites • Site-targeted – Generates sales and branding – Cost is per thousand impressions (CPM)
  • 5. Google Rapidly Expanding • Beyond online search advertising – Automated purchase of radio ads – Magazine and newspaper ad-buying – YouTube – Google TV Ads – Partnership with Nielsen Media Research – New varieties of online ads
  • 6. Rapidly Changing Media Environment • Increasingly difficult to target audiences & communicate effectively – Consumers no longer passive recipients – They demand more than information – From a myriad of sources
  • 7. Integrated Marketing Approach • Traditional mass media – Television, radio, magazines, newspapers, billboards – Now drive consumers to Web sites • Online strategies – Provide detailed information – Be experiential, entertaining, interactive – MySpace, YouTube, Facebook, wireless mobile media devices, e-mail
  • 8. The New Look of Advertising Interactive, Informative, Entertaining
  • 9. What is Marketing? • An organizational function • Processes for creating, communicating, and delivering value to customers • Managing customer relationships in ways that benefit the organization and its stakeholders Customer relationship management (CRM) Value Relationship marketing Mass customization
  • 10. Marketing Mix • The four Ps Product Price Place Promotion
  • 11. Traditional Marketing Approach Point of purchase Public relations Direct marketing Interactive marketing Special events Packaging Sales promotion Direct response Media Adver- tising Publicity
  • 12. Contemporary IMC Approach Point of purchase Publicity Interactive marketing Public relations Direct marketing Special events Packaging Sales promotion Direct response Media Adver- tising
  • 13. 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.
  • 14. Contemporary Perspective of IMC Demand for accountability Demand for accountability and measurement of outcomes Recognized as a business process Importance of relevant audience Recognized as a business process Multiple relevant audiences IMC
  • 15. Growing Importance of IMC • Strategic integration of communications functions – Avoids duplication – Synergy among promotional tools – More efficient and effective marketing • Rapidly changing environment – Consumers – Technology – Media
  • 16. Behind the Growing Importance of IMC 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 From Toward
  • 17. The Role of IMC in Branding • Brand identity is a combination of – Name – Logo – Symbols – Design – Packaging – Performance – Image or associations IMC plays a major role in developing and sustaining brand identity and equity
  • 18. The Most Valuable Brands in the World Rank Brand Brand Value (Billions) 1 Coca-Cola $65.32 2 Microsoft 58.71 3 IBM 57.09 4 General Electric 51.57 5 Nokia 33.70 6 Toyota 32.07 7 Intel 30.95 8 McDonald’s 29.39 9 Disney 29.21 10 Mercedes-Benz 23.57
  • 19. Finding New Ways to Build Brands • Consumers are driving the trend – They view brands as a form of self-expression – They know more about brands and the companies that make them – They seek and share information with other consumers via the Internet
  • 20. Finding New Ways to Build Brands • Get consumers involved – Apple Computer lets consumers test products in store • Interaction can be the best marketing – Facebook – Google
  • 21. The Promotional Mix Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations Personal Selling
  • 22. Advertising • Paid forms of non-personal communication – About an organization, product, service, or idea by an identified sponsor – No feedback from audience – Important for products and services aimed at mass consumer markets – Cost effective
  • 23. The Most Common Forms of Advertising Primary vs. Selective Demand Advertising Business-to-Business Advertising Organizations National Advertising Retail/Local Advertising Professional Advertising Trade Advertising Consumers
  • 25. Bose Uses Direct Response Advertising Includes call for action. Phone number, mail-in form, website address provided.
  • 26. Interactive/Internet Marketing • Back-and-forth communication – Users participate in and modify the form and content of information – Happens in real time • Interactive media – Internet – CD-ROMs – Kiosks – Interactive television – Digital cell phones
  • 27. Using the Internet as an IMC Tool 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 The Internet
  • 28. Sales Promotion Consumer-oriented [For end-users] Trade-oriented [For resellers] Coupons Samples Premiums Contest/Sweepstake Refunds/Rebates Bonus Packs Loyalty Programs Events Trade Allowances POP Displays Training Programs Trade Shows Coop Advertising
  • 29. Sales Promotion • Most of the promotional budget now goes to sales promotion – Declining brand loyalty – Increased consumer sensitivity to “deals” – Larger and more powerful retailers are demanding more trade promotion support
  • 31. Public Relations Systematically planning and distributing information in an attempt to control and manage image and the nature of the publicity received.
  • 33. Personal Selling • Person-to-person communication – A seller attempts to assist and/or persuade prospective buyers to make a purchase or act on an idea
  • 34. IMC Audience Contact Tools Target Audience Broadcast media Print media Public Relations/ publicity Internet/ interactive Direct marketing Sales Promotion Product placements Events and sponsorship Word-of- mouth Point-of- purchase Personal selling Out-of-home media
  • 35. The IMC Planning Process • Developing an integrated marketing communications plan requires Planning Executing Evaluating Controlling
  • 36. Basic Elements of a Marketing Plan 5. A process for monitoring and evaluating performance 1. A detailed situation analysis 3. A marketing strategy and program 4. A program for implementing the strategy 2. Specific marketing objectives
  • 37. Model of the IMC Planning Process Analysis of Promotional program situation Review of marketing plan Integrate and implement marketing communications strategies Monitor, evaluate and control IMC Program Develop objectives and strategy for each Develop message, media strategy, and tactics Analysis of communications process Budget determination Sales promotion PR/ publicity Personal selling Direct marketing Internet/ interactive Advertising Develop integrated marketing communications program