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Integrated Marketing Communications


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Integrated Marketing Communications

  1. 1. 1Integrated Marketing Communications
  2. 2. Chapter Objectives• To review 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. 3. Promotion• “Coordination of all 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. 4. Basic Elements of the Promotional MixAdvertising Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations Personal Selling © 2005 McGraw-Hill Ryerson Limited
  5. 5. Basic Elements of the Promotional MixAdvertising © 2005 McGraw-Hill Ryerson Limited
  6. 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. 7. Classifications of Advertising National Advertising National Advertising Retail/Local Advertising Primary vs. Selective Demand AdvertisingConsumersBusiness-to-Business Advertising Professional Advertising Trade Advertising Organizations © 2005 McGraw-Hill Ryerson Limited
  8. 8. An Example of “B-to-B” Advertising © 2005 McGraw-Hill Ryerson Limited
  9. 9. Basic Elements of the Promotional MixAdvertising Direct Marketing © 2005 McGraw-Hill Ryerson Limited
  10. 10. Direct Marketing• Communication directly with target consumers to generate a response or transaction. © 2005 McGraw-Hill Ryerson Limited
  11. 11. Direct Marketing is Part of IMC Direct Mail DirectInternet Response Sales Advertising Direct MarketingShopping TelemarketingChannels Cataloging Catalogs © 2005 McGraw-Hill Ryerson Limited
  12. 12. Bose Uses Direct Response Advertising © 2005 McGraw-Hill Ryerson Limited
  13. 13. Basic Elements of the Promotional MixAdvertising Direct Marketing Interactive/ Internet Marketing © 2005 McGraw-Hill Ryerson Limited
  14. 14. Internet Marketing• Interactive media allow two-way communication.• Users can participate in and modify the form and content of information they receive. © 2005 McGraw-Hill Ryerson Limited
  15. 15. Using the Internet as 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 BuyersInformation Support Relationships © 2005 McGraw-Hill Ryerson Limited
  16. 16. American Airlines Encourages Customers toDo It All Online © 2005 McGraw-Hill Ryerson Limited
  17. 17. Basic Elements of the Promotional MixAdvertising Direct Marketing Interactive/ Internet Marketing Sales Promotion © 2005 McGraw-Hill Ryerson Limited
  18. 18. Sales Promotion• Activities providing extra value or incentive to sales force or consumer.• Activities can be consumer-oriented or trade-oriented. © 2005 McGraw-Hill Ryerson Limited
  19. 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 AdvertisingConsumer-oriented Trade-oriented For end-users For resellers © 2005 McGraw-Hill Ryerson Limited
  20. 20. Various Uses of Sales Promotion Introduce New Get Existing Products Customers to Buy More Combat Attract New Competition Customers Sales Promotion Enhance Maintain Sales InPersonal Selling Off Season Tie In Increase Retail Advertising & Personal Selling Inventories © 2005 McGraw-Hill Ryerson Limited
  21. 21. Basic Elements of the Promotional MixAdvertising Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations © 2005 McGraw-Hill Ryerson Limited
  22. 22. Public Relations• Evaluating public 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. 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. 24. Publicity Vehicles Feature Articles News Interviews InterviewsReleases Publicity Vehicles Press Special Conferences Events © 2005 McGraw-Hill Ryerson Limited
  25. 25. Advertising Versus Publicity Factor Advertising Publicity Control Great LittleCredibility Lower Higher Reach Measurable UndeterminedFrequency Schedulable Uncontrollable Cost High/Specific Low/Unspecified Flexibility High Low Timing Specifiable Tentative © 2005 McGraw-Hill Ryerson Limited
  26. 26. Public Relations Tools Publicity Special Vehicles PublicationsCommunity Corporate Cause-related Activities Advertising Advertising Marketing Public Affairs Special Event Activities Sponsorship © 2005 McGraw-Hill Ryerson Limited
  27. 27. DuPont Uses Public Relations to Enhance Its Corporate Image © 2005 McGraw-Hill Ryerson Limited
  28. 28. Basic Elements of the Promotional MixAdvertising Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations Personal Selling © 2005 McGraw-Hill Ryerson Limited
  29. 29. Personal Selling• Person-to-person communication.• 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. 30. Participants in the Promotional ProcessFigure 1-3 © 2005 McGraw-Hill Ryerson Limited
  31. 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. 32. Traditional Approach to Marketing Communications Sales Publicity Promotion Point ofPurchase Media Packaging Special Adver- Events tising Direct Response Public Relations Interactive Direct Marketing Marketing © 2005 McGraw-Hill Ryerson Limited
  33. 33. Contemporary IMC Approach Sales Direct Packaging Promotion Response Media Point ofPurchase Adver- Public tising Relations PublicityInteractive Marketing Direct Special Marketing Events © 2005 McGraw-Hill Ryerson Limited
  34. 34. Reasons for the Growth of IMCPlanning 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. 35. Importance of IMCConsumer’s Point 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. 36. Dell Focuses on Building a Relationship WithCustomers © 2005 McGraw-Hill Ryerson Limited
  37. 37. A Broader View of 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. 38. IMC and Branding 2003 Brand ValueBrand Identity is a (Billions of Dollars)combination of factors: 1. Coca-Cola $70.5Name, logo, symbols,design, packaging, 2. Microsoft $65.1product or service 3. IBM $51.8performance, andimage or associations 4. GE $42.3in the consumer’s 5. Intel $31.1mind. 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. 39. Communication Role of Product 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. 40. Product Symbolism © 2005 McGraw-Hill Ryerson Limited
  41. 41. Brand Equity• Added value resulting from product’s image, customer attachment to product, and impressions of product differentiation. © 2005 McGraw-Hill Ryerson Limited
  42. 42. Packaging is More Than a Container © 2005 McGraw-Hill Ryerson Limited
  43. 43. Communication Role of Price 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. 44. Communication Role of Distribution DecisionsMarketing 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. 45. Promotional Management• “Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.” © 2005 McGraw-Hill Ryerson Limited
  46. 46. Promotional Management: Melitta Coffee CampaignFigure 1-5 © 2005 McGraw-Hill Ryerson Limited
  47. 47. Review the IMC Plan1. A detailed situation analysis2. Specific marketing objectives3. A marketing strategy and program4. A program for implementing the strategy5. A process for monitoring and evaluating performance © 2005 McGraw-Hill Ryerson Limited
  48. 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 InteractiveAdvertising Sales PR/ Personal Direct Internet/ Promotion Publicity Selling Marketing InteractiveObjectives Objectives Objectives Objectives Objectives Objectives Message Sales PR/ Personal Direct Internet/ Promotion Publicity Selling Marketing Interactive Strategy Strategy Strategy Strategy Strategy StrategyIntegration & Implementation of Marketing Communications Strategies Monitor, Evaluate & Control Promotional Program © 2005 McGraw-Hill Ryerson Limited