1 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 1 An Introduction to Integrated Marketing Communications 1-2 Marketing  Activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for:  Customers, clients, partners, and society at large  Exchange: Involves parties with:  Something of value to one another  Desire and ability to give up something to the other party  Way to communicate with each other 1-3 Value  Customer’s perception of benefits of a product or service against the costs of acquiring and consuming it  Benefits are functional, experiential, and/or psychological  Costs - Money paid for:  Acquiring a product or service or information about it  Making the purchase and learning to use  Maintaining and disposing the product 1-4 Marketing Mix  Product, price, place, and promotion  To develop an effective marketing mix, marketers must:  Be knowledgeable about the issues and options of each element of the mix  Know how to combine the elements to form an effective marketing program  Analyze the market and use the data to develop the marketing strategy and mix 1-5 Integrated Marketing Communications (IMC) Coordinate various promotional elements and other marketing activities that communicate with a firm’s customers •Evaluates the strategic roles of a variety of communication disciplines •Combines the disciplines to provide clarity, consistency, and maximum communications impact Recognizes the added value of a comprehensive plan that: Ensures all marketing and promotional activities project a consistent, unified image 1-6 Integrated Marketing Communications (IMC)  Criticism - Inside-out marketing approach  Packs promotional mix elements together, making them look and sound alike  Contemporary perspective  Goal - Generate short-term financial returns and build long-term brand and shareholder value  Views IMC ongoing strategic business process chanho.song Typewritten Text chanho.song Typewritten Text chanho.song Typewritten Text chanho.song Typewritten Text 2 1-7 Growing Importance of IMC Strategically integrates the various communications functions Avoids duplication and takes advantage of synergy among promotional tools Develops more efficient and effective marketing communications programs •Evolution to micromarketing •Consumers’ unresponsiveness to traditional advertising •Changing rules of marketing Changing environment 1-8 Integrated Marketing Communications (IMC): Role in Branding Helps develop and sustain brand identity and equity Recognizes the need for companies to connect with consumers based on trust, transparency, and authenticity 1-9 Promotional Mix  Tools that accomplish an organization’s communication objectives  Promotion: Coordi ...

1. 1
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Chapter 1
An Introduction
to Integrated
Marketing
Communications
1-2
Marketing
Activity, set of institutions, and processes for
creating, communicating, delivering and
exchanging offerings that have value for:
her
party

2. 1-3
Value
service against the costs of acquiring and
consuming it
experiential, and/or
psychological
- Money paid for:
1-4
Marketing Mix
promotion
must:

3. each element of the mix
effective marketing program
data to develop the
marketing strategy and mix
1-5
Integrated Marketing Communications
(IMC)
Coordinate various promotional elements and other marketing
activities that communicate with a firm’s customers
•Evaluates the strategic roles of a variety of communication
disciplines
•Combines the disciplines to provide clarity, consistency, and
maximum
communications impact
Recognizes the added value of a comprehensive plan that:
Ensures all marketing and promotional activities project a
consistent,
unified image
1-6
Integrated Marketing Communications

4. (IMC)
- Inside-out marketing approach
them look and sound alike
- Generate short-term financial returns and
build long-term brand and shareholder value
chanho.song
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chanho.song
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2
1-7
Growing Importance of IMC

5. Strategically integrates the various communications functions
Avoids duplication and takes advantage of synergy among
promotional tools
Develops more efficient and effective marketing
communications programs
•Evolution to micromarketing
•Consumers’ unresponsiveness to traditional advertising
•Changing rules of marketing
Changing environment
1-8
Integrated Marketing Communications
(IMC): Role in Branding
Helps develop and sustain brand identity and
equity
Recognizes the need for companies to connect
with consumers based on trust, transparency, and
authenticity
1-9
Promotional Mix

6. communication objectives
-initiated
efforts to:
f information and persuasion
1-10
Figure 1.2 - Elements of the Promotional
Mix
1-11
Advertising
from an identified sponsor
1-12

7. Benefits of Advertising
Most cost-effective way to reach large numbers of
consumers
Builds brand equity by influencing consumers’
perceptions
3
1-13
Advertising to Consumer Markets
National advertising
• Done on a nationwide basis or in most regions of the country
Retail/local advertising - Encourage consumers to:
• Shop at a specific store
• Use a local service
• Patronize a particular establishment
Primary- versus selective-demand advertising
• Primary-demand - Stimulates demand for the general product
class or
entire industry
• Selective-demand - Creates demand for a specific company’s
brands

8. 1-14
Advertising to Business and Professional
Markets
• Targets individuals who buy or influence the purchase of
industrial goods or services for their companies
Business-to-business advertising
• Targets professionals, encouraging them to use a company’s
product in their business operations
Professional advertising
• Targets marketing channel members, encouraging them to
stock, promote, and resell the manufacturer’s branded products
to their customers
Trade advertising
1-15
Direct Marketing
generate a response and/or a transaction

9. -response advertising
ase directly from the
manufacturer
1-16
Digital/Internet Marketing
Interactive media
• Allow users to participate in and modify the form and content
of the information they receive in real time
Social media
• Online means of communication and interactions used to
create, share, and exchange content
Mobile marketing
• Messages delivered are specific to a consumer’s location or
consumption situation
1-17
Advantages of Digital/Internet Marketing
Interactive nature
Capability to precisely measure the effects of
advertising and other forms of promotion

10. 1-18
Sales Promotion
incentives to the:
-oriented
-oriented
4
1-19
Sales Promotion

11. from companies
1-20
Publicity
organization, product, service, or idea not directly
paid for or run under identified sponsorship
organization
1-21
Public Relations
or organization with the public interest
- Establish and maintain a positive image

12. among various publics
1-22
Personal Selling
-to-person communication in which seller
attempts to assist and/or persuade prospective
buyers to:
’s
specific needs or situation
1-23
Contact or Touch Point
about a company and/or its brands or have an
encounter or experience with it
any created

13. -initiated
1-24
Figure 1.5 - IMC Audience Contact
Tools
5
1-25
Figure 1.6 - IMC Contact Points: Control vs. Impact
1-26
In the previous slide, there are the four basic contact or touch
points.
• Unexpected - Unanticipated references or information about a
company or
brand that a customer or prospect receives that is beyond the
control of the
organization. For example, a word-of-mouth message, or a
website that hosts
product reviews.

14. • Customer-initiated - Occurs whenever a customer or prospect
contacts the
company. Many involve inquiries or complaints.
• Intrinsic - Interactions that occur with a company or brand
during the process
of buying or using the product or service, such as discussions
with retail sales
personnel. These touch points are not under the control of the
company.
• Company created - Planned marketing communication
messages created by
the company. This includes ads, websites, news/press releases,
packaging,
brochures and collateral material, sale promotions, point-of-
purchase displays,
and in-store décor.
1-27
IMC Planning Process
• Planning, executing, evaluating, and controlling the use of the
promotional-mix elements to effectively communicate with
target
audiences
Integrated marketing communications management

15. • Developing, implementing, and controlling an organization’s
IMC
program
Integrated marketing communications plan
1-28
Marketing Plan
for an organization and includes:
-frame and
mechanism for measuring performance
elements of the marketing mix
r implementing the marketing strategy
1-29
Review of Marketing Plan

16. lysis
1-30
Internal Analysis
product/service offering
program
ons for promotion
results
6
1-31
External Analysis

17. market segments, positioning strategies, and
competitors
1-32
Analysis of Communication Process
jectives
1-33
Analysis of Communication Process
Marketing objectives
• Determine what is to be accomplished by the overall
marketing program in terms of sales, market share, or
profitability
Communication objectives
• Determine what the firm seeks to accomplish with its
promotional program

18. • Stated in terms of:
• Nature of the message to be communicated
• Specific communication effects to be achieved
1-34
Budget Determination
Set tentative marketing communications budget
Allocate tentative budget
1-35
Developing Integrated Marketing
Communications Program
promotional-mix element
- Determining the basic appeal and
message to be conveyed to the target audience
- Determining the communication
channels to use to deliver the message
1-36

19. Monitoring, Evaluation, and Control
irm accomplish its overall marketing
goals and objectives
results/effectiveness
strategies
1
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Chapter 2
The Role of
IMC in the
Marketing
Process
2-2
Strategic Marketing Plan

20. d policies
strategy
2-3
Opportunity Analysis
satisfied
e effectively
market segments
2-4
Competitive Analysis

21. searching for a competitive advantage
an edge over competitors
2-5
Target Market Selection
doing a competitive analysis
promotional efforts
2-6
Figure 2.2 - The Target Marketing
Process
• Identifying markets with unfulfilled needs - In this step

22. consumers with
similar lifestyles, needs, and wants are isolated and increases
the marketers
knowledge of their specific requirements.
• Determining market segmentation - In this step a market is
divided into
distinct groups that have common needs and will respond
similarly to a
marketing action.
• Selecting a market to target - This step determines how many
segments to
enter, and which segments offer the most potential.
• Position through marketing strategies - This step determines
the art and
science of fitting the product or service to one or more segments
of the
broad market in such a way as to set it apart from the
competition.
2
2-7
Market Segmentation
needs, who respond similarly to a marketing situation

23. different geographic units
the basis age, sex, family size, education, income, and
social class
the basis of personality, lifecycles, and/or lifestyles
2-8
Bases for Market Segmentation
• Dividing consumers into groups according to their
usage, loyalties, or buying responses to a product
• 80-20 rule: 20 percent of buyers account for 80
percent of sales volume
Behavioristic segmentation
• Grouping of consumers on the basis of attributes
sought in a product
Benefit segmentation
2-9
Selecting Target Market
Determine how many segments to

24. enter
Determine which segments offer the
most potential
2-10
Market Coverage Alternatives
• Ignoring segment differences and offering just one product or
service to the entire market
Undifferentiated marketing
• Involves marketing in a number of segments, developing
separate marketing strategies for each
Differentiated marketing
• Selecting a segment and attempting to capture a large share of
this market
Concentrated marketing
2-11
Positioning
to one or more
segments of the broad market to make it unique
within the marketplace

25. - Linking the product
with the benefits the consumer will derive
- Positions the product by
comparing the benefit it offers versus the
competition
2-12
Positioning Strategies
specific characteristics or benefits offered
s: Important to consumers and are
the basis for making a purchase decision
3
2-13
Positioning Strategies

26. the basis of a particular
use or application
differentiated from others
2-14
Repositioning
perceptions and attitudes toward the product or
brand
2-15
Product Decisions

27. product
company and its products
protection, and storage
2-16
Branding
Builds and maintains brand awareness and interest
Develops and enhances attitudes toward the company or product
Builds relationships between the consumer and the brand
Brand identity: Combination of name, logo, symbols, design,
packaging, and image of associations held by consumers
Brand equity: Intangible asset of added value
2-17
Price Decisions

28. - Refers to what the consumer has to
give in exchange for a purchase
2-18
Marketing Channels
product or service available for use
-response ads, telemarketing, the
Internet
retailers

29. 4
2-19
Promotional Push Strategies
merchandise and promote a manufacturer’s
products
distribution by selling and promoting it
g: Used to motivate wholesalers
and retailers to purchase products for resale
2-20
Promotional Pull Strategies
promotion efforts directed toward the ultimate
consumer

30. the retailer
WEB EXERCISE 1
Introduction to Integrated Marketing Communications
Focus: Chapters 1 & 2
Watch the California Milk Advisory Board video found within
this folder. After watching the video,
provide your answers to the following questions in the
submission area within this folder. Make sure
you integrate information from the video and from the chapter
readings into your answers.
1. What were the promotional mix elements (or IMC tools) used
in the “happy cows” campaign?
2. What was the market opportunity identified by the California
Milk Advisory Board? What made
it a market opportunity?

31. 3. What was the unifying symbol of the campaign? Why was it
important?
4. What was/were the market segment(s) targeted by the
campaign? What segmentation
approach do you think they used? Briefly explain why.
5. Which consumer promotion tactics were used in the
campaign?