Guolla8ce_PPT_Ch01.pptx

© 2023 McGraw Hill Limited
Chapter 1
Integrated
Marketing and
Communications
Prepared by Maria Vincenten, Red
River College Polytechnic (retired)

Learning Objectives
1.Describe the importance of marketing communication
within the marketing mix
2.Identify the content of the promotional mix –
advertising, sales promotion, public relations, direct
marketing, digital, and personal selling – and
summarize their purpose
3.Illustrate the concept of integrated marketing
communications (IMC) by distinguishing its evolution,
renewed perspective, and content
2

Learning Objectives (cont’d)
4. Explain the IMC planning process model and express
the steps in developing a marketing communications
program
5. Identify how the IMC planning process is continued
throughout all chapters
3

LO1 Marketing Communication
Finding the right approach for marketing
communication is a critical decision for small and
large firms, private and public organizations, and
those marketing goods, services, or ideas
Integrated marketing communications links or connects
promotional programs and communicates with current
and prospective customers
4

Marketing
The activity, set of institutions, and processes for
creating, communicating, delivering, and
exchanging offerings that have value for customers,
clients, partners, and society at large
American Marketing Association definition
5

Marketing (cont’d)
Focus is on exchange as a central concept:
Two or more parties with something of value to one
another
A desire and ability to give up that something to the other
party
A way to communicate with each other
Marketing facilitates the exchange by examining
needs/wants to develop the marketing mix
6

Figure 1-1
Example of Typical Marketing Decisions
Product Decisions Price Decisions Distribution Decisions
Product type Price level Channel type
Features or
attributes/benefits
Price policy Channel policy
Corporate
name/identification
Discount Type of intermediary
Brand
name/identification
Allowance Type of location/store
Package design Flexibility Service level
© 2023 McGraw Hill Limited 7

Communicating Product
Marketing messages, the promotion element of the
marketing mix, needs to communicate:
Product Type
Product Attributes/Benefits
Brand Identity
Brand Equity
8

Product Type
Organization exists because it offers a product to
consumers, generally in exchange for money
Offering may come in form of a:
physical good,
service,
cause,
idea, or
person
9

Product Attributes/Benefits
Products are a bundle of benefits
Advertising and marketing communications draw
attention towards these benefits
Functional via the product attributes
Subjective via performance
Emotional (positive, negative, psychological, social)
10

Brand Identity
Identification through its logo, symbol, or trademark
Reinforced by a tagline or slogan
Packaging provides economy, protection, storage and
identification
One primary purpose of marketing communication
is to present the brand and its identification in
favourable locations, situations, or time frames
Allows consumers to be aware of the brand and to think
or feel more positively toward it
11

Exhibit 1-3 Heineken Example
Heineken ensures
that its brand
identification is
prominently
displayed
12
©ton koene/Alamy Stock Photo

Brand Equity
Intangible asset of added value or goodwill
Results from the favourable image, impressions of
differentiation, and/or strength of consumer attachment
to a company name, brand name, or trademark
Provides a competitive advantage
IMC planning and marketing communication
decisions are expected to strongly generate brand
equity
13

Exhibit1-5 Mont Blanc Ad
Ad contributes to its
brand equity
Mont Blanc brand
name likely conveys
a more positive
consumer reaction
14
Source: Montblanc

Brand Equity (cont’d)
Beyond brand equity, marketers are interested in:
Brand experience – receiving messages, shopping
behaviour, product use leading to a view
Brand attachment – strength of the bond between a
brand and oneself
Brand love – abstract notion
 Passion-driven behaviours, self-brand integration, emotional
attachment, anticipated separation distress, long-term
relationship view, positive attitude, and confidently held attitude
15

Communicating Price
Signal of a consumer’s economic cost in exchange
for the benefits
Price planning involves decisions:
level, policy, adjustments through discounts or
allowances, and flexibility when facing competition
Marketing communication reinforces a consumer’s
belief that the price accurately reflects a product’s
benefit or quality
16

Exhibit 1-6 Ads feature price
Ads feature
price information
as their primary
message, as
shown in this
McDonald’s
example
17
© BirchTree/Alamy Stock Photo

Communicating Distribution
Distribution - making a product available for
purchase, use, or consumption
Indirect Channels – network of wholesalers/retailers
Direct Channels
Marketing communication often provides
information on where, and how, to purchase a
product
18

Communicating Value
The relative balance or ratio of the benefits
(functional, performance, experiential) consumers
“receive” compared to the costs (financial, time,
physical effort, social, psychological) consumers
“give” while shopping and/or consuming
Marketing communication must signal the benefit in
order to have consumers understand the value
given the cost
19

Exhibit 1-7
Nike’s app
is one way
the brand
adds value
for its
customers
20
Source: Nike, Inc

Communicating Value (cont’d)
Companies use marketing communication ethically
and responsibly to influence and inform consumers
about its brand value
Messages with unethical and irresponsible
characteristics are not legitimate
Understanding this distinction is a serious challenge
for organizations, consumers, regulators, and critics
21

LO2 Promotional Mix
Promotion - coordination of all initiated efforts from
an identified brand or sponsor that uses channels of
information and distribution to persuade audiences
to buy a product
Promotional mix decisions are often connected
22

Figure 1-3 The Promotional Mix
23

Advertising
Advertising - paid form of non-personal
communication about an organization, product,
service, or idea by an identified sponsor
Involves media that transmits a message
No immediate feedback from the message recipient
Cost-efficient
with large audiences
Cost-effective
24

Advertising (cont’d)
Brand Communication Effects
directly and indirectly leads to greater firm value due to
intangible assets (brand image)
Brand Interaction
Flexible Application
across industries, situations, channel members, and
target audiences
Multiple Domains
25

Exhibit 1-8 Multiple Domains
 Business-to-business
marketers use
advertising to build
awareness and brand
identity
26
Qualcomm Technologies, Inc.

Sales Promotion
Marketing activities that provide extra value or
incentive to ultimate consumers, or retailers and
distributors, that influence behaviour to stimulate
sales
Consumer – targeted to the ultimate consumer or end
user of the product
 Coupons, samples, premiums, rebates, and contests
Trade – targeted toward marketing intermediaries
 Allowances, price deals, sales contests, trade shows
27

Dare combines its sales
promotion (coupon) with its
advertising
To facilitate usage, the ad
indicates that the packaging
offers recipes for service
ideas
Exhibit 1-9 Example of Coupon Offer
28
©Dare Foods Limited

Public Relations
A corporate communication program designed to
enhance a company’s reputation and/or earn public
understanding and acceptance of a particular issue
Special publications
Participation in community activities
Fundraising, sponsorship, support for causes
Public affairs
29

Exhibit 1-10 TD Sponsors events for public relations
purposes
30
©Roberto Machado Noa/LightRocket via Getty Images

Publicity
Non-personal communications regarding an
organization, product, person, or idea not directly
paid for by an identified sponsor
In the news media as a story or editorial
Organization encourages the media to cover a
favourable story via news releases, press conferences,
feature articles, and media (these do cost money)
Offers credibility  perceived as unbiased
31

Direct Marketing
Occurs when organizations communicate directly
with target audiences to generate a response
and/or transaction
Used to distribute directly or through traditional channels
Telemarketing, call centres, direct mail, mail-order
catalogues, Internet-order websites, and direct-response
ads in media
Used to distribute samples and promotional products
32

Direct Marketing (cont’d)
Extensive direct marketing activities occur with the
administration of loyalty programs
Can be used as part of public relations program by
sending information
Need to maintain databases containing contact
information, customer profiles, purchase history,
and media preferences
33

Exhibit 1-11 Under Armour sells its products
through retail channels and online
 Direct-response
advertising – a
form of
advertising for a
product or
service that
encourages the
consumer to
purchase directly
34
Source: Under Armour, Inc.

Digital
Interactive media – allow for a back-and-forth flow
of information where users participate in and modify
its form and content instantly
Can implement a completely digital IMC program
Internet is an advertising medium
Social media facilitates interaction and
communication affect brand
35

Exhibit 1-12 Example of a shopping app
 Prevalent use of
mobile media devices
allows consumers to
perform price
comparisons, read
reviews, and make
purchases
36
Source: ShopSavvy, Inc.

Personal Selling
Person-to-person communication in which a seller
helps and/or persuades prospective buyers to
purchase the company’s good or service or to act
on an idea
Involves direct contact between buyer and seller either
face-to-face or through telecommunications
Gives marketing communication flexibility
37

Figure 1-4
Participants in the Promotional Process
38

LO3 Integrated Marketing Communications
Most large and mid-sized companies understand
that a brand’s promotional mix requires coordination
and strategic integration to present a consistent
image to communicate effectively with their target
audiences
39

IMC: Evolution
Definition: A concept of marketing communications
planning that evaluates and combines the strategic
roles of a variety of communication disciplines to
provide clarity, consistency, and maximum
communications impact
Shift towards IMC began in the 1980s and by 1990s
became the “new-generation” marketing approach
Some saw as a fad
40

Renewed Perspective of IMC
Became viewed as a strategic business process
that identifies the most effective, persuasive brand
communication program over time with customers,
prospective customers, employees, associates, and
other targeted relevant external and internal
audiences to guild and maintain relationships and
achieve financial goals
41

Renewed Perspective of IMC (cont’d)
Seen by promotional planners as an ongoing
strategic business process
Coordinated efforts
Minimized duplication
Efficient and effective
Reflects the emphasis on accountability and
measurement of outcomes
42

Renewed Perspective of IMC (cont’d)
Four Communications Characteristics of IMC
1. Unified communications for consistent message
and image
2. Differentiated communication to multiple groups
3. Database-centred communication for tangible
results
4. Relationships fostering communication with
existing customers
43

IMC: Audience Contacts
Companies take an audience contact or audience
touch-point perspective by evaluating the potential
ways of reaching their target audiences and
presenting the brand message favourably to
enhance value for the target audience
Customer relationship management (CRM)
involves creating, maintaining, and enhancing long-
term relationships with individual customers for
mutual benefit.
44

Figure 1-5
Audience Contact via an IMC Program
45

IMC: Paid, Owned, Earned
 Paid Media - Media channel marketer pays for
 e.g., TV, print, outdoor, search ads, direct mail
 Owned Media - Marketing Communication channel a
company controls
 e.g., website, blog, mobile app, loyal programs, sales promotion
 Earned – exposure for a brand that it did not directly pay
for and is generated by entities beyond the company
 e.g., social media, word-of-mouth, reviews, public support
46

LO4 IMC Planning
The process of conceiving, executing, evaluating,
and controlling the use of promotional mix elements
to communicate effectively with target audiences
results in an IMC plan
IMC Plan - the framework for developing,
implementing, and controlling an organization’s
integrated marketing communications program
47

IMC Plan Framework (from Figure 1-7)
 Review the Marketing Plan
 Ensures strategic consistency
 Assess the Marketing Communications Situation
 Internal and external analyses
 Determine IMC Plan Objectives
 Communication objectives
 Behavioural objectives
 Develop IMC Programs
 From the plan objectives determine types of promotions to use
 Determine budget, message strategy and tactics, and media selection
 Implement and Control the Plan
48

Chapter Summary
1. Described the importance of marketing communication within the
marketing mix
2. Identified the content of the promotional mix – advertising, sales
promotion, public relations, direct marketing, digital, and personal
selling – and summarized their purpose
3. Illustrated the concept of integrated marketing communications
(IMC) by distinguishing its evolution, renewed perspective, and
content
4. Explained the IMC planning process model and expressed the
steps in developing a marketing communications program
5. Identified how the IMC planning process is continued throughout all
chapters
49

Guolla8ce_PPT_Ch01.pptx

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