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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
U.S. Advertising

     U.S. Sales                                                                                 2002
     Promotion                                                                                  1980
   Advertising
   Outside U.S.

                   $0   $50        $100             $150              $200        $250   $300




                          © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
IMC–Audience Contact Points

 Point of
 Point of                                            Public
                                                      Public
              Publicity
              Publicity                                                  Packaging
                                                                         Packaging
Purchase
Purchase                                            Relations
                                                    Relations

 Internet/
 Internet/                                                                Direct
Interactive                                                                Direct
Interactive                                                              Response
  Media
   Media          Marketing
                   Marketing                                             Response
                Communications
                Communications
                   Audience
                   Audience                                                Sales
                                                                            Sales
Direct Mail
Direct Mail                                                              Promotion
                                                                         Promotion


  Print
   Print      Broadcast
              Broadcast                              Outdoor
                                                     Outdoor              Events
                                                                          Events
  Media
  Media         Media
                Media
                 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
IMC Principles Extend Worldwide




          © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
                                                                  +
Traditional Approach to Marketing
   Communications

                                                        Sales
                  Publicity                           Promotion
 Point of
Purchase

                  Media                              Packaging
      Special     Adver-
      Events      tising                               Direct
                                                      Response
   Public
  Relations
                                            Interactive
                 Direct                      Marketing
                Marketing

                     © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Contemporary IMC Approach


                      Sales                           Direct
  Packaging
                    Promotion                        Response


                        Media
 Point of
Purchase                Adver-
                                                        Public
                        tising                         Relations
            Publicity


Interactive
 Marketing          Direct
                                                          Special
                   Marketing
                                                          Events


                         © 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
Marketing Revolution and Shifting Tides

         From                                                      Toward
Media Advertising
Media Advertising                                    Multiple Forms of Communication
                                                     Multiple Forms of Communication

Mass Media
Mass Media                                           Specialized Media
                                                     Specialized Media

Manufacturer Dominance
Manufacturer Dominance                               Retailer Dominance
                                                     Retailer Dominance

General Focus
General Focus                                        Data Based Marketing
                                                     Data Based Marketing

Low Agency Accountability
Low Agency Accountability                            Greater Agency Accountability
                                                     Greater Agency Accountability

Traditional Compensation
Traditional Compensation                             Performance Based Compensation
                                                     Performance Based Compensation

Limited Internet Availability
Limited Internet Availability                        Widespread Internet Availability
                                                     Widespread Internet Availability

                        © 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

                                                                2003 Brand Value
Brand Identity is a
Brand Identity is a                                             (Billions of Dollars)
combination of factors:
combination of factors:
Name, logo, symbols,
Name, logo, symbols,                                         1. Coca-Cola         $70.5
design, packaging,
design, packaging,                                           2. Microsoft         $65.1
product or service
product or service                                           3. IBM               $51.8
performance, and image
performance, and image                                       4. GE                $42.3
or associations in the
or associations in the                                       5. Intel             $31.1
consumer’s mind.
consumer’s mind.
                                                             6. Nokia             $29.4
         IMC plays a major role
          IMC plays a major role                             7. Disney            $28.0
         in the process of
          in the process of                                  8. McDonald’s        $24.7
         developing and
          developing and
         sustaining brand                                    9. Marlboro          $22.2
          sustaining brand
         identity and equity.
          identity and equity.                               10. Mercedes         $21.4
                    © 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
                                                                   +
Basic Elements of the Promotional Mix

Advertising
Advertising

   Direct Marketing
   Direct Marketing

              Interactive/
              Interactive/
          Internet Marketing
          Internet Marketing

                            Sales Promotion
                            Sales Promotion

                                                    Publicity/Public
                                                    Publicity/Public
                                                      Relations
                                                       Relations

                                                                  Personal Selling
                                                                  Personal Selling
              © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Classifications of Advertising

                                               National Advertising
                                               National Advertising


                                           Retail/Local Advertising
                                           Retail/Local Advertising

                                              Primary vs. Selective
                                              Primary vs. Selective
                                              Demand Advertising
                                               Demand Advertising
Consumers

Business-to-Business Advertising
Business-to-Business Advertising


    Professional Advertising
    Professional Advertising


       Trade Advertising
       Trade Advertising
                                                                          Organizations
                  © 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 Marketing is Part of IMC

                             Direct
                             Direct
                              Mail
                              Mail

Internet                                                               Direct
                                                                        Direct
Internet                                                              Response
 Sales                                                                Response
  Sales                                                              Advertising
                                                                     Advertising
                   Direct
                    Direct
                  Marketing
                  Marketing
Shopping
Shopping                                                            Telemarketing
                                                                    Telemarketing
Channels
Channels

                      Cataloging
                       Catalogs
                      Cataloging
                       Catalogs

            © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Bose Uses Direct Response Advertising




          © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
                                                                  +
Using the Internet as an IMC Tool


                                 The
                                  The
                               Internet
                               Internet



        Educates or
        Educates or          A Persuasive
                             A Persuasive                             A Sales Tool
                                                                       A Sales Tool
          Informs
          Informs             Advertising
                              Advertising                             or an Actual
                                                                       or an Actual
        Customers
         Customers             Medium
                                Medium                                Sales Vehicle
                                                                      Sales Vehicle


  Obtains
   Obtains                                           Provides
                                                      Provides                 Builds and
                                                                               Builds and
              Communicates
              Communicates
 Customer
 Customer                                            Customer
                                                     Customer                  Maintains
                                                                                Maintains
               and Interacts
               and Interacts
 Database
  Database                                          Service and
                                                    Service and                Customer
                                                                                Customer
                With Buyers
                With Buyers
Information
Information                                           Support
                                                      Support                 Relationships
                                                                              Relationships
                  © 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   +
Sales Promotion Tools

     Coupons
     Samples                                                               Trade
                                                                        Allowances
     Premiums
                                                                    POP Displays
Contests/Sweepstakes
                                                                          Training
 Refunds/Rebates                                                         Programs
   Bonus Packs                                                             Trade
                                                                           Shows
 Loyalty Programs
                                                                            Coop
      Events                                                            Advertising

• Consumer-                                                        • Trade-
   oriented                                                         oriented
• [For end-users]                                           • [For resellers]
                © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Various Uses of Sales Promotion

             Introduce New                               Get Existing
                                                          Get Existing
             Introduce New                               Customers to
                                                         Customers to
                Products
                 Products                                  Buy More
                                                           Buy More


   Combat
   Combat                                                                     Attract New
                                                                              Attract New
 Competition
 Competition                                                                  Customers
                                                                               Customers
                            Sales
                             Sales
                          Promotion
                          Promotion
   Enhance
    Enhance                                                                 Maintain Sales In
                                                                            Maintain Sales In
Personal Selling
Personal Selling                                                               Off Season
                                                                               Off Season


                  Tie In
                  Tie In                               Increase Retail
                                                       Increase Retail
              Advertising &
              Advertising &
             Personal Selling                            Inventories
                                                         Inventories
             Personal Selling
                    © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising Versus Publicity

 Factor
 Factor             Advertising
                    Advertising                                         Publicity
                                                                        Publicity
 Control
 Control                       Great
                               Great                                       Little
                                                                           Little
Credibility
Credibility                   Lower
                              Lower                                       Higher
                                                                          Higher
  Reach
  Reach              Measurable
                     Measurable                                       Undetermined
                                                                      Undetermined
Frequency
Frequency            Schedulable
                     Schedulable                                      Uncontrollable
                                                                      Uncontrollable
  Cost
  Cost             High/Specific
                   High/Specific                                      Low/Unspecified
                                                                      Low/Unspecified

Flexibility
Flexibility                      High
                                 High                                      Low
                                                                           Low
 Timing
 Timing                Specifiable
                       Specifiable                                      Tentative
                                                                        Tentative
              © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Publicity Vehicles

                            Feature
                            Feature
                            Articles
                            Articles


 News
  News                                                               Interviews
                                                                     Interviews
Releases
Releases              Publicity
                      Publicity
                      Vehicles
                      Vehicles



         Press
         Press                                                Special
                                                              Special
      Conferences
      Conferences                                             Events
                                                              Events
             © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Public Relations Tools


         Publicity                                Special
         Vehicles                               Publications



Community             Corporate                                        Cause-related
 Activities          Advertising                                         Marketing




       Public Affairs                         Special Event
         Activities                           Sponsorship

               © 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

                            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
                            © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Marketing Plan


1. A detailed situation analysis
1. A detailed situation analysis


2. Specific marketing objectives
2. Specific marketing objectives


3. A marketing strategy and program
3. A marketing strategy and program


4. A program for implementing the strategy
4. A program for implementing the strategy


5. A process for monitoring and evaluating performance
5. A process for monitoring and evaluating performance

                   © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Chap01 An Introduction To Integrated Marketing Communications

  • 1. 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 U.S. Advertising U.S. Sales 2002 Promotion 1980 Advertising Outside U.S. $0 $50 $100 $150 $200 $250 $300 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 3. IMC–Audience Contact Points Point of Point of Public Public Publicity Publicity Packaging Packaging Purchase Purchase Relations Relations Internet/ Internet/ Direct Interactive Direct Interactive Response Media Media Marketing Marketing Response Communications Communications Audience Audience Sales Sales Direct Mail Direct Mail Promotion Promotion Print Print Broadcast Broadcast Outdoor Outdoor Events Events Media Media Media Media © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 4. IMC Principles Extend Worldwide © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin +
  • 5. Traditional Approach to Marketing Communications Sales Publicity Promotion Point of Purchase Media Packaging Special Adver- Events tising Direct Response Public Relations Interactive Direct Marketing Marketing © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 6. Contemporary IMC Approach Sales Direct Packaging Promotion Response Media Point of Purchase Adver- Public tising Relations Publicity Interactive Marketing Direct Special Marketing Events © 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. Marketing Revolution and Shifting Tides From Toward Media Advertising Media Advertising Multiple Forms of Communication Multiple Forms of Communication Mass Media Mass Media Specialized Media Specialized Media Manufacturer Dominance Manufacturer Dominance Retailer Dominance Retailer Dominance General Focus General Focus Data Based Marketing Data Based Marketing Low Agency Accountability Low Agency Accountability Greater Agency Accountability Greater Agency Accountability Traditional Compensation Traditional Compensation Performance Based Compensation Performance Based Compensation Limited Internet Availability Limited Internet Availability Widespread Internet Availability Widespread Internet Availability © 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 2003 Brand Value Brand Identity is a Brand Identity is a (Billions of Dollars) combination of factors: combination of factors: Name, logo, symbols, Name, logo, symbols, 1. Coca-Cola $70.5 design, packaging, design, packaging, 2. Microsoft $65.1 product or service product or service 3. IBM $51.8 performance, and image performance, and image 4. GE $42.3 or associations in the or associations in the 5. Intel $31.1 consumer’s mind. consumer’s mind. 6. Nokia $29.4 IMC plays a major role IMC plays a major role 7. Disney $28.0 in the process of in the process of 8. McDonald’s $24.7 developing and developing and sustaining brand 9. Marlboro $22.2 sustaining brand identity and equity. identity and equity. 10. Mercedes $21.4 © 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. Basic Elements of the Promotional Mix Advertising Advertising Direct Marketing Direct Marketing Interactive/ Interactive/ Internet Marketing Internet Marketing Sales Promotion Sales Promotion Publicity/Public Publicity/Public Relations Relations Personal Selling Personal Selling © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 14. Classifications of Advertising National Advertising National Advertising Retail/Local Advertising Retail/Local Advertising Primary vs. Selective Primary vs. Selective Demand Advertising Demand Advertising Consumers Business-to-Business Advertising Business-to-Business Advertising Professional Advertising Professional Advertising Trade Advertising Trade Advertising Organizations © 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 +
  • 17. Direct Marketing is Part of IMC Direct Direct Mail Mail Internet Direct Direct Internet Response Sales Response Sales Advertising Advertising Direct Direct Marketing Marketing Shopping Shopping Telemarketing Telemarketing Channels Channels Cataloging Catalogs Cataloging Catalogs © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 18. Bose Uses Direct Response Advertising © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin +
  • 19. Using the Internet as an IMC Tool The The Internet Internet Educates or Educates or A Persuasive A Persuasive A Sales Tool A Sales Tool Informs Informs Advertising Advertising or an Actual or an Actual Customers Customers Medium Medium Sales Vehicle Sales Vehicle Obtains Obtains Provides Provides Builds and Builds and Communicates Communicates Customer Customer Customer Customer Maintains Maintains and Interacts and Interacts Database Database Service and Service and Customer Customer With Buyers With Buyers Information Information Support Support Relationships Relationships © 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. Sales Promotion Tools Coupons Samples Trade Allowances Premiums POP Displays Contests/Sweepstakes Training Refunds/Rebates Programs Bonus Packs Trade Shows Loyalty Programs Coop Events Advertising • Consumer- • Trade- oriented oriented • [For end-users] • [For resellers] © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 22. Various Uses of Sales Promotion Introduce New Get Existing Get Existing Introduce New Customers to Customers to Products Products Buy More Buy More Combat Combat Attract New Attract New Competition Competition Customers Customers Sales Sales Promotion Promotion Enhance Enhance Maintain Sales In Maintain Sales In Personal Selling Personal Selling Off Season Off Season Tie In Tie In Increase Retail Increase Retail Advertising & Advertising & Personal Selling Inventories Inventories Personal Selling © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 23. Advertising Versus Publicity Factor Factor Advertising Advertising Publicity Publicity Control Control Great Great Little Little Credibility Credibility Lower Lower Higher Higher Reach Reach Measurable Measurable Undetermined Undetermined Frequency Frequency Schedulable Schedulable Uncontrollable Uncontrollable Cost Cost High/Specific High/Specific Low/Unspecified Low/Unspecified Flexibility Flexibility High High Low Low Timing Timing Specifiable Specifiable Tentative Tentative © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 24. Publicity Vehicles Feature Feature Articles Articles News News Interviews Interviews Releases Releases Publicity Publicity Vehicles Vehicles Press Press Special Special Conferences Conferences Events Events © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 25. Public Relations Tools Publicity Special Vehicles Publications Community Corporate Cause-related Activities Advertising Marketing Public Affairs Special Event Activities Sponsorship © 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 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 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 28. The Marketing Plan 1. A detailed situation analysis 1. A detailed situation analysis 2. Specific marketing objectives 2. Specific marketing objectives 3. A marketing strategy and program 3. A marketing strategy and program 4. A program for implementing the strategy 4. A program for implementing the strategy 5. A process for monitoring and evaluating performance 5. A process for monitoring and evaluating performance © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin