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Integrated Marketing Communications
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- 2. Chapter Objectives • Toreview the various elements of the promotional mix: advertising, sales promotion, public relations, direct marketing, Internet marketing, and personal selling. • To introduce the concept of integrated marketing communications (IMC) by considering its evolution, growth, importance, and a broader view. • To examine how various marketing and promotional elements must be coordinated to communicate effectively with the IMC perspective. • To summarize a model of the IMC planning process and examine the steps in developing a marketing communications program. © 2005 McGraw-Hill Ryerson Limited
- 3. Promotion • “Coordination ofall seller-initiated efforts to set up channels of information and persuasion to sell goods and services or to promote an idea.” © 2005 McGraw-Hill Ryerson Limited
- 4. Basic Elements ofthe Promotional Mix Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations Personal Selling © 2005 McGraw-Hill Ryerson Limited
- 5. Basic Elements ofthe Promotional Mix Advertising © 2005 McGraw-Hill Ryerson Limited
- 6. Advertising • Non-personal communication – Highly pervasive form of promotion best known, most widely discussed. – Used to create brand images and symbolic appeals for a company or brand. – Ability to strike a responsive chord with consumers. © 2005 McGraw-Hill Ryerson Limited
- 7. Classifications of Advertising National Advertising National Advertising Retail/Local Advertising Primary vs. Selective Demand Advertising Consumers Business-to-Business Advertising Professional Advertising Trade Advertising Organizations © 2005 McGraw-Hill Ryerson Limited
- 8. An Example of“B-to-B” Advertising © 2005 McGraw-Hill Ryerson Limited
- 9. Basic Elements ofthe Promotional Mix Advertising Direct Marketing © 2005 McGraw-Hill Ryerson Limited
- 10. Direct Marketing • Communicationdirectly with target consumers to generate a response or transaction. © 2005 McGraw-Hill Ryerson Limited
- 11. Direct Marketing isPart of IMC Direct Mail Direct Internet Response Sales Advertising Direct Marketing Shopping Telemarketing Channels Cataloging Catalogs © 2005 McGraw-Hill Ryerson Limited
- 12. Bose Uses DirectResponse Advertising © 2005 McGraw-Hill Ryerson Limited
- 13. Basic Elements ofthe Promotional Mix Advertising Direct Marketing Interactive/ Internet Marketing © 2005 McGraw-Hill Ryerson Limited
- 14. Internet Marketing • Interactivemedia allow two-way communication. • Users can participate in and modify the form and content of information they receive. © 2005 McGraw-Hill Ryerson Limited
- 15. Using the Internetas an IMC Tool The Internet Educates or A Persuasive A Sales Tool Informs Advertising or an Actual Customers Medium Sales Vehicle Obtains Provides Builds and Communicates Customer Customer Maintains and Interacts Database Service and Customer With Buyers Information Support Relationships © 2005 McGraw-Hill Ryerson Limited
- 16. American Airlines EncouragesCustomers to Do It All Online © 2005 McGraw-Hill Ryerson Limited
- 17. Basic Elements ofthe Promotional Mix Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion © 2005 McGraw-Hill Ryerson Limited
- 18. Sales Promotion • Activitiesproviding extra value or incentive to sales force or consumer. • Activities can be consumer-oriented or trade-oriented. © 2005 McGraw-Hill Ryerson Limited
- 19. Sales Promotion Tools Coupons Samples Trade Allowances Premiums POP Displays Contests/Sweepstakes Refunds/Rebates Training Programs Bonus Packs Trade Loyalty Programs Shows Coop Events Advertising Consumer-oriented Trade-oriented For end-users For resellers © 2005 McGraw-Hill Ryerson Limited
- 20. Various Uses ofSales Promotion Introduce New Get Existing Products Customers to Buy More Combat Attract New Competition Customers Sales Promotion Enhance Maintain Sales In Personal Selling Off Season Tie In Increase Retail Advertising & Personal Selling Inventories © 2005 McGraw-Hill Ryerson Limited
- 21. Basic Elements ofthe Promotional Mix Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations © 2005 McGraw-Hill Ryerson Limited
- 22. Public Relations • Evaluatingpublic attitudes, identifying policies and procedures of individuals or organizations, and executing a program of action to gain public understanding and acceptance. © 2005 McGraw-Hill Ryerson Limited
- 23. Publicity • Non-personal communications regarding an organization, product, service, or idea. • Idea reaches public in a form not directly paid for by the company. • More credible to consumers than other forms of promotion. © 2005 McGraw-Hill Ryerson Limited
- 24. Publicity Vehicles Feature Articles News Interviews Interviews Releases Publicity Vehicles Press Special Conferences Events © 2005 McGraw-Hill Ryerson Limited
- 25. Advertising Versus Publicity Factor Advertising Publicity Control Great Little Credibility Lower Higher Reach Measurable Undetermined Frequency Schedulable Uncontrollable Cost High/Specific Low/Unspecified Flexibility High Low Timing Specifiable Tentative © 2005 McGraw-Hill Ryerson Limited
- 26. Public Relations Tools Publicity Special Vehicles Publications Community Corporate Cause-related Activities Advertising Advertising Marketing Public Affairs Special Event Activities Sponsorship © 2005 McGraw-Hill Ryerson Limited
- 27. DuPont Uses PublicRelations to Enhance Its Corporate Image © 2005 McGraw-Hill Ryerson Limited
- 28. Basic Elements ofthe Promotional Mix Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations Personal Selling © 2005 McGraw-Hill Ryerson Limited
- 29. Personal Selling • Person-to-personcommunication. • Seller encourages prospective buyers to purchase company’s product/service or to act on an idea. • Direct contact between buyer and seller gives communication flexibility to marketer. © 2005 McGraw-Hill Ryerson Limited
- 30. Participants in thePromotional Process Figure 1-3 © 2005 McGraw-Hill Ryerson Limited
- 31. Integrated Marketing Communications •IMC coordinates various promotional elements and marketing activities which communicate with a firm’s customers to provide clarity, consistency, and maximum communications impact. • Evolved as companies realized the need for strategic integration of promotional tools. © 2005 McGraw-Hill Ryerson Limited
- 32. Traditional Approach toMarketing Communications Sales Publicity Promotion Point of Purchase Media Packaging Special Adver- Events tising Direct Response Public Relations Interactive Direct Marketing Marketing © 2005 McGraw-Hill Ryerson Limited
- 33. Contemporary IMC Approach Sales Direct Packaging Promotion Response Media Point of Purchase Adver- Public tising Relations Publicity Interactive Marketing Direct Special Marketing Events © 2005 McGraw-Hill Ryerson Limited
- 34. Reasons for theGrowth of IMC Planning Efficiency and Effectiveness Consumer Adoption of Technology and Media Innovative Marketing Practices Shifting of marketing Growth of the Internet dollars Movement from Growth of database advertising focus marketing Shift in power © 2005 McGraw-Hill Ryerson Limited
- 35. Importance of IMC Consumer’sPoint of Relationship View Marketing • IMC helps link • Allows marketers to elements of create, maintain, or promotional enhance long-term campaign to clearly relationships with and accurately customers or represent the brand. stakeholders. • More cost-effective to retain customers than acquire new ones. © 2005 McGraw-Hill Ryerson Limited
- 36. Dell Focuses onBuilding a Relationship With Customers © 2005 McGraw-Hill Ryerson Limited
- 37. A Broader Viewof IMC • IMC can be expanded to consider all sources of brand or company contact by customer. • A total marketing communications strategy recognizes how ALL marketing activities communicate with customers. • Everything the company says and does needs to communicate a common theme. © 2005 McGraw-Hill Ryerson Limited
- 38. IMC and Branding 2003 Brand Value Brand Identity is a (Billions of Dollars) combination of factors: 1. Coca-Cola $70.5 Name, logo, symbols, design, packaging, 2. Microsoft $65.1 product or service 3. IBM $51.8 performance, and image or associations 4. GE $42.3 in the consumer’s 5. Intel $31.1 mind. 6. Nokia $29.4 IMC plays a major role 7. Disney $28.0 in the process of developing and 8. McDonald’s $24.7 sustaining brand 9. Marlboro $22.2 identity and equity. 10. Mercedes $21.4 © 2005 McGraw-Hill Ryerson Limited
- 39. Communication Role ofProduct Decisions • Product planning involves portraying the product as a bundle of benefits for consumers. • Product Symbolism – What a product or brand means to consumers. – What consumers experience by purchasing or using the product. © 2005 McGraw-Hill Ryerson Limited
- 40. Product Symbolism © 2005 McGraw-Hill Ryerson Limited
- 41. Brand Equity • Addedvalue resulting from product’s image, customer attachment to product, and impressions of product differentiation. © 2005 McGraw-Hill Ryerson Limited
- 42. Packaging is MoreThan a Container © 2005 McGraw-Hill Ryerson Limited
- 43. Communication Role ofPrice Decisions • Economic cost to consumers for all product benefits combined. • Advertising and promotion reinforce consumer’s belief that product’s benefits or qualities accurately indicates the price decisions. © 2005 McGraw-Hill Ryerson Limited
- 44. Communication Role ofDistribution Decisions Marketing Channels • Interdependent organizations involved in making product or service available. • Distribution strategy should take into account the communication objectives – has an impact on IMC program. • What messages are conveyed by selling a product at Holt Renfrew instead of Wal-Mart? © 2005 McGraw-Hill Ryerson Limited
- 45. Promotional Management • “Coordinatingthe promotional mix elements to develop a controlled, integrated program of effective marketing communications.” © 2005 McGraw-Hill Ryerson Limited
- 46. Promotional Management: MelittaCoffee Campaign Figure 1-5 © 2005 McGraw-Hill Ryerson Limited
- 47. Review the IMCPlan 1. A detailed situation analysis 2. Specific marketing objectives 3. A marketing strategy and program 4. A program for implementing the strategy 5. A process for monitoring and evaluating performance © 2005 McGraw-Hill Ryerson Limited
- 48. IMC Planning Model Review of Marketing Plan Promotional Program Situation Analysis Analysis of the Communications Process Budget Determination Develop Integrated Marketing Communications Programs Sales PR/ Personal Direct Internet/ Advertising Promotion Publicity Selling Marketing Interactive Advertising Sales PR/ Personal Direct Internet/ Promotion Publicity Selling Marketing Interactive Objectives Objectives Objectives Objectives Objectives Objectives Message Sales PR/ Personal Direct Internet/ Promotion Publicity Selling Marketing Interactive Strategy Strategy Strategy Strategy Strategy Strategy Integration & Implementation of Marketing Communications Strategies Monitor, Evaluate & Control Promotional Program © 2005 McGraw-Hill Ryerson Limited
Editor's Notes
- #16 Relation to text This slide relates t material on pp. 20-21 which discusses interactive marketing and the Internet as IMC tools. Summary Overview The rapid changes in technology have led to dramatic growth of communications through interactive media, particularly the Internet. This communication medium is unique in that it allows for the back-and-forth flow of information in real time. Customers can perform a variety of functions on the Internet such as receive and alter information and images, make inquires, respond to questions, and, of course, make purchases. The Internet has changed the ways companies communicate to their customers as companies and organizations of all sizes have developed websites to promote their products and services. Use of this slide This slide can be used to show that the Internet has changed the way companies communicate with their customers. Because of its interactive nature, it is a very effective way to communicate with customers. Actually, it is a medium that can be used to execute all elements of the promotional mix. In addition to advertising, companies can offer sales promotion incentives such as coupons or contests, do direct marketing, and execute public relations, and personal selling functions via the Internet.
- #33 Relation to text This slide relates to material on pp. 9-11 of the text. Summary Overview This slide shows the traditional approach to advertising and promotion where many of the marketing and promotional functions were planned and managed separately with different budgets, different views of the market, and different goals and objectives. Many of the marketing activities such as package design, sales promotion, and direct marketing services were viewed as ancillary services and handled on a project basis rather than integrating them into the IMC program. Use of this slide This slide can be used to show the traditional approach to marketing communications that lacks coordination and consistency. The disconnected puzzle pieces are designed to demonstrate how traditional approaches to marketing communications often viewed the various IMC tools as separate pieces of the puzzle rather than having them all work together.