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An Introduction to
Integrated Marketing
Communications
An Introduction to
Integrated Marketing
Communications
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Growth of Advertising and Promotion
Expenditure in Billions of Dollars
$0 $50 $100 $150 $200 $250 $300
Advertising
Outside U.S.
U.S. Sales
Promotion
U.S. Advertising
2002
1980
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
IMC–Audience Contact Points
Marketing
Communications
Audience
Marketing
Communications
Audience
Point of
Purchase
Point of
Purchase PublicityPublicity Public
Relations
Public
Relations PackagingPackaging
Direct
Response
Direct
Response
Sales
Promotion
Sales
Promotion
EventsEventsOutdoorOutdoorBroadcast
Media
Broadcast
Media
Print
Media
Print
Media
Direct MailDirect Mail
Internet/
Interactive
Media
Internet/
Interactive
Media
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
IMC Principles Extend Worldwide
+© 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
Traditional Approach to Marketing
Communications
Media
Adver-
tising
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Contemporary IMC Approach
Point of
Purchase
Publicity
Interactive
Marketing
Public
Relations
Direct
Marketing
Special
Events
Packaging
Sales
Promotion
Direct
Response
Media
Adver-
tising
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The US Army Uses TV Advertising as
Part of Its IMC Program
*Click outside of the video screen to advance to the next slide
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Traditional CompensationTraditional Compensation Performance Based CompensationPerformance Based CompensationTraditional CompensationTraditional Compensation Performance Based CompensationPerformance Based Compensation
Media AdvertisingMedia Advertising Multiple Forms of CommunicationMultiple Forms of Communication
Mass MediaMass Media Specialized MediaSpecialized Media
Manufacturer DominanceManufacturer Dominance Retailer DominanceRetailer Dominance
General FocusGeneral Focus Data Based MarketingData Based Marketing
Low Agency AccountabilityLow Agency Accountability Greater Agency AccountabilityGreater Agency Accountability
Limited Internet AvailabilityLimited Internet Availability Widespread Internet AvailabilityWidespread Internet Availability
Media AdvertisingMedia Advertising Multiple Forms of CommunicationMultiple Forms of Communication
Mass MediaMass Media Specialized MediaSpecialized Media
Manufacturer DominanceManufacturer Dominance Retailer DominanceRetailer Dominance
General FocusGeneral Focus Data Based MarketingData Based Marketing
Low Agency AccountabilityLow Agency Accountability Greater Agency AccountabilityGreater Agency Accountability
Marketing Revolution and Shifting Tides
From Toward
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Dell Focuses on Building a Relationship
With Customers
+© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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.
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.
2003 Brand Value
(Billions of Dollars)
1. Coca-Cola $70.5
2. Microsoft $65.1
3. IBM $51.8
4. GE $42.3
5. Intel $31.1
6. Nokia $29.4
7. Disney $28.0
8. McDonald’s $24.7
9. Marlboro $22.2
10. Mercedes $21.4
IMC plays a major role
in the process of
developing and
sustaining brand
identity and equity.
IMC plays a major role
in the process of
developing and
sustaining brand
identity and equity.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Intel’s Advertising Helps Build Brand Equity
*Click outside of the video screen to advance to the next slide
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Coordinated Marketing Mix
Elements Build Image
+© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
AdvertisingAdvertising
Direct MarketingDirect Marketing
Interactive/
Internet Marketing
Interactive/
Internet Marketing
Sales PromotionSales Promotion
Publicity/Public
Relations
Publicity/Public
Relations
Personal SellingPersonal Selling
AdvertisingAdvertising
Direct MarketingDirect Marketing
Interactive/
Internet Marketing
Interactive/
Internet Marketing
Sales PromotionSales Promotion
Publicity/Public
Relations
Publicity/Public
Relations
Basic Elements of the Promotional Mix
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Primary vs. Selective
Demand Advertising
Primary vs. Selective
Demand Advertising
Primary vs. Selective
Demand Advertising
Primary vs. Selective
Demand Advertising
Business-to-Business AdvertisingBusiness-to-Business Advertising
Organizations
National AdvertisingNational Advertising
Retail/Local AdvertisingRetail/Local Advertising
Professional AdvertisingProfessional Advertising
Trade AdvertisingTrade Advertising
National AdvertisingNational Advertising
Retail/Local AdvertisingRetail/Local Advertising
Business-to-Business AdvertisingBusiness-to-Business Advertising
Professional AdvertisingProfessional Advertising
Classifications of Advertising
Consumers
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Great Advertising Can Strike a
Responsive Chord with Consumers
*Click outside of the video screen to advance to the next slide
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
An Example of “B-to-B” Advertising
+© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Direct
Response
Advertising
Direct
Response
Advertising
Direct
Response
Advertising
Direct
Response
Advertising
Direct
Mail
Direct
Mail
CatalogingCataloging
TelemarketingTelemarketing
Internet
Sales
Internet
Sales
Shopping
Channels
Shopping
Channels
Direct
Mail
Direct
Mail
TelemarketingTelemarketing
CatalogsCatalogs
Shopping
Channels
Shopping
Channels
Direct Marketing is Part of IMC
Direct
Marketing
Direct
Marketing
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Bose Uses Direct Response Advertising
+© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Builds and
Maintains
Customer
Relationships
Builds and
Maintains
Customer
Relationships
Obtains
Customer
Database
Information
Obtains
Customer
Database
Information
Communicates
and Interacts
With Buyers
Communicates
and Interacts
With Buyers
Provides
Customer
Service and
Support
Provides
Customer
Service and
Support
Educates or
Informs
Customers
Educates or
Informs
Customers
A Persuasive
Advertising
Medium
A Persuasive
Advertising
Medium
A Sales Tool
or an Actual
Sales Vehicle
A Sales Tool
or an Actual
Sales Vehicle
Obtains
Customer
Database
Information
Obtains
Customer
Database
Information
Communicates
and Interacts
With Buyers
Communicates
and Interacts
With Buyers
Provides
Customer
Service and
Support
Provides
Customer
Service and
Support
Educates or
Informs
Customers
Educates or
Informs
Customers
A Persuasive
Advertising
Medium
A Persuasive
Advertising
Medium
A Sales Tool
or an Actual
Sales Vehicle
A Sales Tool
or an Actual
Sales Vehicle
Using the Internet as an IMC Tool
The
Internet
The
Internet
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
American Airlines Encourages
Customers to Do It All Online
+© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Consumer-
oriented
• [For end-users]
• Trade-
oriented
• [For resellers]
Sales Promotion Tools
EventsEvents
Loyalty ProgramsLoyalty Programs
Bonus PacksBonus Packs
Refunds/RebatesRefunds/Rebates
Contests/SweepstakesContests/Sweepstakes
PremiumsPremiums
SamplesSamples
CouponsCoupons
Coop
Advertising
Coop
Advertising
Trade
Shows
Trade
Shows
Training
Programs
Training
Programs
POP DisplaysPOP Displays
Trade
Allowances
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Introduce New
Products
Introduce New
Products
Get Existing
Customers to
Buy More
Get Existing
Customers to
Buy More
Attract New
Customers
Attract New
Customers
Maintain Sales In
Off Season
Maintain Sales In
Off Season
Increase Retail
Inventories
Increase Retail
Inventories
Tie In
Advertising &
Personal Selling
Tie In
Advertising &
Personal Selling
Enhance
Personal Selling
Enhance
Personal Selling
Combat
Competition
Combat
Competition
Introduce New
Products
Introduce New
Products
Get Existing
Customers to
Buy More
Get Existing
Customers to
Buy More
Attract New
Customers
Attract New
Customers
Maintain Sales In
Off Season
Maintain Sales In
Off Season
Increase Retail
Inventories
Increase Retail
Inventories
Tie In
Advertising &
Personal Selling
Tie In
Advertising &
Personal Selling
Enhance
Personal Selling
Enhance
Personal Selling
Various Uses of Sales Promotion
Sales
Promotion
Sales
Promotion
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising Versus Publicity
AdvertisingAdvertising PublicityPublicity
TentativeTentative
LowLow
Low/UnspecifiedLow/Unspecified
UncontrollableUncontrollable
GreatGreat
LowerLower
MeasurableMeasurable
SchedulableSchedulable
High/SpecificHigh/Specific
HighHigh
SpecifiableSpecifiable
UndeterminedUndetermined
HigherHigher
LittleLittle
FactorFactor
ControlControl
CredibilityCredibility
ReachReach
FrequencyFrequency
CostCost
FlexibilityFlexibility
TimingTiming
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
InterviewsInterviewsInterviewsInterviews
Feature
Articles
Feature
Articles
Special
Events
Special
Events
Press
Conferences
Press
Conferences
News
Releases
News
Releases
Feature
Articles
Feature
Articles
Special
Events
Special
Events
News
Releases
News
Releases
Publicity Vehicles
Publicity
Vehicles
Publicity
Vehicles
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
Public Relations Tools
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
DuPont Uses Advertising to Enhance
Its Corporate Image
+
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Integrated Marketing Communications 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
Integration & Implementation of Marketing Communications Strategies
Monitor, Evaluate & Control Promotional Program
Internet/
Interactive
Internet/
Interactive
Objectives
Internet/
Interactive
Strategy
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
1. A detailed situation analysis1. A detailed situation analysis
2. Specific marketing objectives2. Specific marketing objectives
3. A marketing strategy and program3. A marketing strategy and program
4. A program for implementing the strategy4. A program for implementing the strategy
5. A process for monitoring and evaluating performance5. A process for monitoring and evaluating performance
1. A detailed situation analysis1. A detailed situation analysis
3. A marketing strategy and program3. A marketing strategy and program
4. A program for implementing the strategy4. A program for implementing the strategy
2. Specific marketing objectives2. Specific marketing objectives
The Marketing Plan
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Chap01 an-introduction-to-integrated-marketing-communications-1225868228281783-9

  • 1. An Introduction to Integrated Marketing Communications An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 2. The Growth of Advertising and Promotion Expenditure in Billions of Dollars $0 $50 $100 $150 $200 $250 $300 Advertising Outside U.S. U.S. Sales Promotion U.S. Advertising 2002 1980 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 3. IMC–Audience Contact Points Marketing Communications Audience Marketing Communications Audience Point of Purchase Point of Purchase PublicityPublicity Public Relations Public Relations PackagingPackaging Direct Response Direct Response Sales Promotion Sales Promotion EventsEventsOutdoorOutdoorBroadcast Media Broadcast Media Print Media Print Media Direct MailDirect Mail Internet/ Interactive Media Internet/ Interactive Media © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 4. IMC Principles Extend Worldwide +© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 6. Contemporary IMC Approach Point of Purchase Publicity Interactive Marketing Public Relations Direct Marketing Special Events Packaging Sales Promotion Direct Response Media Adver- tising © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 7. The US Army Uses TV Advertising as Part of Its IMC Program *Click outside of the video screen to advance to the next slide © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 8. Traditional CompensationTraditional Compensation Performance Based CompensationPerformance Based CompensationTraditional CompensationTraditional Compensation Performance Based CompensationPerformance Based Compensation Media AdvertisingMedia Advertising Multiple Forms of CommunicationMultiple Forms of Communication Mass MediaMass Media Specialized MediaSpecialized Media Manufacturer DominanceManufacturer Dominance Retailer DominanceRetailer Dominance General FocusGeneral Focus Data Based MarketingData Based Marketing Low Agency AccountabilityLow Agency Accountability Greater Agency AccountabilityGreater Agency Accountability Limited Internet AvailabilityLimited Internet Availability Widespread Internet AvailabilityWidespread Internet Availability Media AdvertisingMedia Advertising Multiple Forms of CommunicationMultiple Forms of Communication Mass MediaMass Media Specialized MediaSpecialized Media Manufacturer DominanceManufacturer Dominance Retailer DominanceRetailer Dominance General FocusGeneral Focus Data Based MarketingData Based Marketing Low Agency AccountabilityLow Agency Accountability Greater Agency AccountabilityGreater Agency Accountability Marketing Revolution and Shifting Tides From Toward © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 9. Dell Focuses on Building a Relationship With Customers +© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 10. 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. 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. 2003 Brand Value (Billions of Dollars) 1. Coca-Cola $70.5 2. Microsoft $65.1 3. IBM $51.8 4. GE $42.3 5. Intel $31.1 6. Nokia $29.4 7. Disney $28.0 8. McDonald’s $24.7 9. Marlboro $22.2 10. Mercedes $21.4 IMC plays a major role in the process of developing and sustaining brand identity and equity. IMC plays a major role in the process of developing and sustaining brand identity and equity. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 11. Intel’s Advertising Helps Build Brand Equity *Click outside of the video screen to advance to the next slide © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 12. Coordinated Marketing Mix Elements Build Image +© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 13. AdvertisingAdvertising Direct MarketingDirect Marketing Interactive/ Internet Marketing Interactive/ Internet Marketing Sales PromotionSales Promotion Publicity/Public Relations Publicity/Public Relations Personal SellingPersonal Selling AdvertisingAdvertising Direct MarketingDirect Marketing Interactive/ Internet Marketing Interactive/ Internet Marketing Sales PromotionSales Promotion Publicity/Public Relations Publicity/Public Relations Basic Elements of the Promotional Mix © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 14. Primary vs. Selective Demand Advertising Primary vs. Selective Demand Advertising Primary vs. Selective Demand Advertising Primary vs. Selective Demand Advertising Business-to-Business AdvertisingBusiness-to-Business Advertising Organizations National AdvertisingNational Advertising Retail/Local AdvertisingRetail/Local Advertising Professional AdvertisingProfessional Advertising Trade AdvertisingTrade Advertising National AdvertisingNational Advertising Retail/Local AdvertisingRetail/Local Advertising Business-to-Business AdvertisingBusiness-to-Business Advertising Professional AdvertisingProfessional Advertising Classifications of Advertising Consumers © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 15. Great Advertising Can Strike a Responsive Chord with Consumers *Click outside of the video screen to advance to the next slide © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 16. An Example of “B-to-B” Advertising +© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 18. Bose Uses Direct Response Advertising +© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 19. Builds and Maintains Customer Relationships Builds and Maintains Customer Relationships Obtains Customer Database Information Obtains Customer Database Information Communicates and Interacts With Buyers Communicates and Interacts With Buyers Provides Customer Service and Support Provides Customer Service and Support Educates or Informs Customers Educates or Informs Customers A Persuasive Advertising Medium A Persuasive Advertising Medium A Sales Tool or an Actual Sales Vehicle A Sales Tool or an Actual Sales Vehicle Obtains Customer Database Information Obtains Customer Database Information Communicates and Interacts With Buyers Communicates and Interacts With Buyers Provides Customer Service and Support Provides Customer Service and Support Educates or Informs Customers Educates or Informs Customers A Persuasive Advertising Medium A Persuasive Advertising Medium A Sales Tool or an Actual Sales Vehicle A Sales Tool or an Actual Sales Vehicle Using the Internet as an IMC Tool The Internet The Internet © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 20. American Airlines Encourages Customers to Do It All Online +© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 21. • Consumer- oriented • [For end-users] • Trade- oriented • [For resellers] Sales Promotion Tools EventsEvents Loyalty ProgramsLoyalty Programs Bonus PacksBonus Packs Refunds/RebatesRefunds/Rebates Contests/SweepstakesContests/Sweepstakes PremiumsPremiums SamplesSamples CouponsCoupons Coop Advertising Coop Advertising Trade Shows Trade Shows Training Programs Training Programs POP DisplaysPOP Displays Trade Allowances © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 22. Introduce New Products Introduce New Products Get Existing Customers to Buy More Get Existing Customers to Buy More Attract New Customers Attract New Customers Maintain Sales In Off Season Maintain Sales In Off Season Increase Retail Inventories Increase Retail Inventories Tie In Advertising & Personal Selling Tie In Advertising & Personal Selling Enhance Personal Selling Enhance Personal Selling Combat Competition Combat Competition Introduce New Products Introduce New Products Get Existing Customers to Buy More Get Existing Customers to Buy More Attract New Customers Attract New Customers Maintain Sales In Off Season Maintain Sales In Off Season Increase Retail Inventories Increase Retail Inventories Tie In Advertising & Personal Selling Tie In Advertising & Personal Selling Enhance Personal Selling Enhance Personal Selling Various Uses of Sales Promotion Sales Promotion Sales Promotion © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 23. Advertising Versus Publicity AdvertisingAdvertising PublicityPublicity TentativeTentative LowLow Low/UnspecifiedLow/Unspecified UncontrollableUncontrollable GreatGreat LowerLower MeasurableMeasurable SchedulableSchedulable High/SpecificHigh/Specific HighHigh SpecifiableSpecifiable UndeterminedUndetermined HigherHigher LittleLittle FactorFactor ControlControl CredibilityCredibility ReachReach FrequencyFrequency CostCost FlexibilityFlexibility TimingTiming © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 26. DuPont Uses Advertising to Enhance Its Corporate Image + © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 27. Integrated Marketing Communications 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 Integration & Implementation of Marketing Communications Strategies Monitor, Evaluate & Control Promotional Program Internet/ Interactive Internet/ Interactive Objectives Internet/ Interactive Strategy © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 28. 1. A detailed situation analysis1. A detailed situation analysis 2. Specific marketing objectives2. Specific marketing objectives 3. A marketing strategy and program3. A marketing strategy and program 4. A program for implementing the strategy4. A program for implementing the strategy 5. A process for monitoring and evaluating performance5. A process for monitoring and evaluating performance 1. A detailed situation analysis1. A detailed situation analysis 3. A marketing strategy and program3. A marketing strategy and program 4. A program for implementing the strategy4. A program for implementing the strategy 2. Specific marketing objectives2. Specific marketing objectives The Marketing Plan © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin