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  1. 1. 1 Copyright © 2012 McGraw-Hill Companies, Inc., All right reversedMcGraw-Hill/Irwin An Introduction to Integrated Marketing Communications
  2. 2. 1-2 The Modern World of Marketing • Rapidly changing media environment • Mass media losing viewers, readers, listeners • Digital media targets narrow audience • Consumers not content to be passive message recipients • Information now obtained from a myriad of sources
  3. 3. 1-3 Volkswagen Strategy Integrated Marketing Strategy Traditional Mass Media Social Media Sports Team Sponsor Point-of- Sale Kits
  4. 4. 1-4 Punch Dub • Entertaining, interactive information
  5. 5. 1-5 The Growth of Advertising and Promotion • Integral part of social and economic systems • Carefully prepared messages delivered to carefully targeted audiences • Six-fold increase between 1980 and 2010 • New marketing channels • Internet ads (banner ads, videos, webisodes) • Social media • Mobile marketing
  6. 6. 1-6 The Role of Marketing Advertising & Promotion Inform customers of a product or service Convince them of its ability to satisfy their wants or needs Help develop and sustain relationships Nonprofit Organizations Solicit donations Offer intangible social and psychological satisfactions
  7. 7. 1-7 What is 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
  8. 8. 1-8 What is Value? • Customer’s perception of all the benefits of a product or service • Weighed against costs of acquiring and consuming it • Benefits can be… • Functional • Experiential • Psychological
  9. 9. 1-9 The Marketing Mix • The Four Ps • Product • Price • Place • Promotion
  10. 10. 1-10 Contemporary IMC Approach Point of purchase Publicity Interactive marketing Public relations Direct marketing Special events Packaging Sales promotion Direct response Mass media advertising
  11. 11. 1-11 Growing Importance of IMC • Value of IMC • Avoids duplication of marketing efforts • Synergy among promotional tools • More efficient and effective marketing • Rapidly changing environment • Consumer behavior • Technology • Media consumption behavior • Proliferation of media
  12. 12. 1-12 The Marketing Revolution Shift from traditional media ads to other forms of promotion/nontraditional media Internet and social media changing how companies interact with consumers Power shift: manufacturers to retailers Database marketing Greater ad agency accountability Changes in how ad agencies are compensated
  13. 13. 1-13 The Role of IMC in Branding Brand Identity Image or Associations Performance Name Packaging Logo Design Symbols
  14. 14. 1-14 Building Brands in a Recession Consumers Spend less money Carefully scrutinize purchases Rethink brand loyalties Willing to trade off or down More price sensitive More value conscious
  15. 15. 1-15 Building Brands in a Recession Reduce advertising budgets Balance discounts/promos w/brand image Must overcome consumer distrust Change product marketing focus Increase online social presence Look for new ways to remain relevant Companies
  16. 16. 1-16 Test Your Knowledge Why are marketers decreasing the use of mass media advertising and increasing the use of integrated marketing communications? A) The mass market has become fragmented B) New technologies gave consumers greater control over the communication process C) Use of the Internet and electronic commerce is growing D) Explosive growth in social networking E) All of the above
  17. 17. 1-17 The Promotional Mix Interactive/ Internet Marketing Interactive/ Internet Marketing AdvertisingAdvertising Direct Marketing Direct Marketing Personal Selling Personal Selling Sales Promotion Sales Promotion Publicity/ Public Relations Publicity/ Public Relations
  18. 18. 1-18 Advertising • Paid, nonpersonal communication • About an organization, product, service, or idea • With an identified sponsor • No immediate feedback from audience
  19. 19. 1-19 Non-Personal Media • Mass media • TV • Radio • Magazines • Newspapers • Benefits • Cost effective • Large audiences
  20. 20. 1-20 Advertising Classifications Primary / Selective DemandPrimary / Selective Demand Business-to-BusinessBusiness-to-Business Organizations NationalNational Retail / LocalRetail / Local ProfessionalProfessional TradeTrade Consumers
  21. 21. 1-21 Forms of Direct Marketing Database Management Database Management TelemarketingTelemarketing Direct MailDirect Mail Shopping Channels Shopping Channels CatalogsCatalogs Internet Sales Internet Sales Direct SellingDirect Selling Direct Response Ads Direct Response Ads
  22. 22. 1-22 Direct Response Advertising • Encourages consumers to purchase directly from the manufacturer
  23. 23. 1-23 Direct Response Advertising Major Tools Direct Mail Television Magazines Internet Forces for Change Changing Lifestyles Credit Cards Toll-free Numbers Rapid Internet Growth
  24. 24. 1-24 Interactive Marketing • Interactive media • Internet • Kiosks • Interactive television • Cell phones • Other mobile devices
  25. 25. 1-25 Interactive Marketing • Internet activities • Advertise products and services • Link ads and websites to search engines • Offer coupons, contests, sweepstakes • Conduct direct marketing • Do personal selling • Conduct public relations activities • Measure advertising and promotions
  26. 26. 1-26 Sales Promotion Marketing activities that provide extra value or incentives to the… Sales Force Retailers Ultimate Consumer
  27. 27. 1-27 Consumer vs. Trade Promotions Consumer- oriented Trade- oriented Couponing, sampling, premiums, rebates, contests, sweepstakes, POP materials Wholesalers, distributors, retailers Encourages immediate purchases Promotional/merchandising allowances, price deals, sales contests, trade shows
  28. 28. 1-28 Publicity High credibility and low cost High credibility and low cost Not always under company control Not always under company control Is sometimes unfavorable Is sometimes unfavorable A news story, editorial, or announcement to a mass audience A news story, editorial, or announcement to a mass audience Not directly paid for or run under identified sponsor
  29. 29. 1-29 Public Relations • Management function • Evaluates public attitudes • Identifies items of public interest • Executes a program of action to earn public understanding and acceptance • Primary objectives • Establish and maintain a positive image of the company among various publics
  30. 30. 1-30 Public Relations • Uses publicity and other tools • Special publications • Community activities • Fund-raising events • Sponsorships • Public affairs activities
  31. 31. 1-31 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
  32. 32. 1-32 IMC Audience Contact Tools
  33. 33. 1-33 Touch Points: Control vs. Impact
  34. 34. 1-34 IMC Planning Model 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 Integrate and implement marketing communications strategies Monitor, evaluate and control IMC Program Internet/ interactive Internet/ interactive objectives Internet/ interactive strategy
  35. 35. 1-35 Elements of a Marketing Plan Detailed situation analysis Marketing strategy and program Specific marketing objectives Program for implementing the strategy Process for monitoring & evaluating performance
  36. 36. 1-36 Promotional Program Situational Analysis Internal Firm’s promotional organization/capabilities Review of previous programs and results Assess firm/brand image Assess strengths and weaknesses of product or service External Customer analysis Competitive analysis Environmental analysis
  37. 37. 1-37 Analysis of Communications Process • Communication decisions • Source and message • Communication channels • Media mix • Costs • Marketing goals • Communication objectives
  38. 38. 1-38 Budget Determination • What will the promotional program cost? • How will the money be allocated?
  39. 39. 1-39 Developing the IMC Program IMC Strategies Creative Media
  40. 40. 1-40 Monitoring, Evaluation, Control Basic Goals Determine how well the program is doing, and why Problem correction Continual management feedback Input for future promotions/strategies