1. An Introduction to Integrated Marketing Communications

2. The Marketing & Promotional Mixes
Product or Service
Pricing Policy
Distribution Method
Promotional Mix
Advertising
Direct Marketing
Sales Promotion
Publicity/Public Relations
Personal Selling
Interactive/Internet Mktg
IMC Tools

3. What is IMC?
The practice of unifying all marketing communication efforts so they send a clear, consistent, persuasive message to target audiences.

4. Integrated Marketing Communications
A marketing communications planning concept.
Recognizes the value of a comprehensive plan.
A plan that evaluates the strategic roles of several communications disciplines:
General advertising
Direct response
Sales promotion
Public relations
Combines the disciplines to provide:
Clarity
Consistency
Maximum communications impact

5. Why is IMC becoming so important?
Increased “clutter”.
Decreased message credibility.
Increased price competition.
Fragmented media markets.
Shift in channel power.
The development of database marketing.
Changes in information technology.

6. IMC Example
Book

7. Advertising
Paid, sponsor-identified, nonpersonal (media) communications.
Advantages
Low cost per contact
High degree of control
Best differentiation tool
Best brand equity builder
Disadvantages
Very high overall cost
Difficult to determine effectiveness
Credibility problems
Clutter

8. Direct Marketing Part of the IMC program Typically has separate:
Objectives
Budgets
Strategies
Direct marketing methods
Direct mail
Cataloging
Telemarketing
Direct response ads
Internet sales

9. Interactive/Internet Marketing
An entirely new era:
Little or no history or experience
Rapidly changing communications technology
Unprecedented growth and development
Multiple Internet roles
As a persuasive advertising medium
As a means to educate or inform customers
As a sales tool or an actual sales vehicle
To obtain customer database information
To communicate and interact with buyers
To provide customer service and support
To build and maintain customer relationships

10. Sales Promotion Customer-oriented Trade-oriented
Marketing activities that provide extra value or incentives to the sales force, distributors, or ultimate consumers and can stimulate immediate sales.
Customer-oriented
Targeted to the ultimate users of a product or service
Coupons
Sampling
Premiums
Rebates
Contests
Sweepstakes
POP materials
Trade-oriented
Targeted toward marketing intermediaries such as retailers, wholesalers, or distributors
Buying allowances
Promotional allowances
Price deals
Sales contests
Trade shows

11. Sales Promotion Uses Introduce new products
Get existing customers to buy more
Attract new customers
Combat competition
Maintain sales in off season
Increase retail inventories
Tie in advertising & personal selling
Enhance personal selling efforts

12. Sales Promotion Advantages Disadvantages
Response is more immediate than advertising.
Appeals to price sensitive consumers
Generates extra interest in advertising
Easy to measure effects
High control
Disadvantages
Short term impact
Often abused
Promotion wars
Negligible brand image effect

13. Publicity Non-paid, unsponsored, nonpersonal (media) communications.
Advantages
Most credible
Low cost mass communication
Disadvantages
Very little control
Requires media cooperation.
Can be negative.

14. Public Relations Tools used by Public Relations
The management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance.
Tools used by Public Relations
Publicity
Special publications
Community activity participation
Fund-raising
Special event sponsorship
Public affairs activities

15. Personal Selling Advantages Disadvantages Low overall costs
Best for complex info
Very specific targeting
Direct feedback
Flexible message
Disadvantages
Very high cost per contact
Difficult to communicate a uniform message
Medium level of control

16. IMC Players Advertiser or Client Advertising Agency
AAAA; AAF; ARF
Media Organizations
Marketing Communications Specialists
Direct Marketing Agencies
Sales Promotion Agencies
Interactive Agencies
Public Relations Firms
Collateral Services
Namelab; Strategic Name Development

17. Reasons for Using an Agency
Obtain services of highly skilled specialists
Artists
Writers
Media analysts
Researchers
Others with specific skills
Obtain an objective point of view
Free of internal policy constraints and biases
Broad range of experience, having worked with:
Diverse marketing problems
Various types of clients

18. Full-Services Agencies
Full Range of Marketing, Communication and Promotion services
Planning, creating, producing advertising
Performing research
Selecting media
Non-Advertising Services
Strategic market planning
Sales promotion and sales training
Production of trade show materials
Package design
Public relations and publicity

19. Agency Services Account services Marketing services Creative services
The link between agency and client
Managed by the Account Executive
Marketing services
Research department may design and execute research programs
Media department may analyze, select and contract media resources
Creative services
Creation and execution of ads
Copywriters, artists, other specialists

20. Other Agencies and Services Creative Boutiques
Provide only creative services
Other functions provided by the internal client departments
Full-service agencies may subcontract with creative boutiques

21. Other Agencies and Services Media Buying Services
Specialize in buying media, especially broadcast time
Agencies and clients develop media strategy
Media buying organizations implement the strategy and buy time and space

22. Direct Response Agencies
Data Base Management
Direct Mail
Research
Media Services
Creative
Production

23. Sales Promotion Specialists
Contests
Sweepstakes
Refunds and rebates
Sampling programs
Incentive programs

24. Public Relations Firms
Strategy Development
Program Planning
Generating Publicity
Lobbying
Public Affairs
Image portrayal
Damage control

25. Interactive Agencies Interactive Media Creation Digitized Content
Web sites
Web banner ads
CD-ROMs
Kiosks
Digitized Content
Audio
Video
Animation

26. Agency Compensation The Commissions Method Fee Arrangements
Agency usually receives 15 percent
Commissions are paid by the media
Commission system is controversial
System is becoming less common
Fee Arrangements
Fixed fee method
Fee-commission method
Cost-Plus Agreements
Incentive-Based Compensation
Percentage Charges

27. Marketing Strategy The Marketing Concept What is Marketing Strategy?
Providing superior customer value.
What is value?
The marketing Strategy Process:
Opportunity Identification / Situation Analysis
S-T-P
Marketing mix

28. Situation Analysis Internal Factors External Factors
Assessment of the firm’s promotional organization and capabilities
Review of the firm’s previous promotional programs
Assessment of firm or brand image and implications for promotion
Assessment of relative strengths and weaknesses of product/service
External Factors
Customer analysis
Competitive analysis
Environmental analysis

29. Segmentation, Targeting, and Positioning
Market Segmentation
1. Identify segmentation variables and segment the
market
2. Develop profiles of resulting segments
Market Targeting
3. Evaluate the attractiveness of each segment
4. Select the target segment(s)
Product/Service Positioning
5. Identify possible positioning concepts for each target
segment
6. Select, develop, and communicate the chosen positioning
concept

30. Segmentation
Segmentation is a concept that recognizes the diversity in the marketplace. The process of segmenting the market produces clusters of people who enjoy similar product features.

31. Segmentation
Goal: Identify segments that seek different benefits and, therefore, will be responsive to different positionings of the product/offerings.
Means: Link benefits sought to characteristics that make customers readily identifiable and accessible. For example:
User status, Demographics, Media exposure patterns, …
Caution: Avoid over-segmenting; make sure that each segment is substantial enough to justify a unique positioning effort.

32. Market Segmentation Bases for Segmentation Usage Geographic
Non-users vs. Category users
Competitor users vs. Own brand users
Geographic
Zip Code Analysis
Regional Analysis
Demographic
Age
Gender
Income
Others
Benefit Sought
Psychographic

33. Market Segmentation Usage Segmentation Category Usage Nonusers (%)
Light Half
%pop %use
Heavy Half
%pop %use
Heavy users: Efficiency /Profit
Caution: Majority Fallacy
Brand Usage
$ to Sales - Target people/companies with profile of current user
$ to Opportunity - Target users of competitive brands or nonusers

34. Market Segmentation Volkswagen Ads: Geographic Segmentation
Zip Code Analysis
Regional Analysis
Demographic Segmentation
Age
Gender
Income
Others
Volkswagen Ads:
5-second-rule.mov
Flirting.mov
Synchronicity II.mov
Turbonium.mov
Smarter Looking.mov

35. Psychographic Segmentation
Market Segmentation
Psychographic Segmentation
Lifestyles
Values
Attitudes
Interests
Opinions

36. Market Segmentation Criteria For Segmentation Capturing Segments
Identifiable
Accessible
Responsive
Significant
Capturing Segments
Instruments Available
Price
Product
Distribution
Promotion
Common Positioning Errors
Positioning in a crowded market space
Positioning on an unimportant attribute

37. Positioning
Positioning requires designing a company and product image and developing a marketing mix to promote the image to the target segment(s).

38. Positioning Statement
The key concept of an idea to be communicated to a target market via elements of the marketing mix.
Elements:
Target
Concept (Frame of Reference)
Point of Difference

39. Potential Communications Objectives
Individual sales
Customer loyalty
Company image
Brand image
Store patronage
Service contract
An inquiry
A visit by the prospect
Product trial
Prescription for use
Recommendation
Adoption of the product

40. Communications Objectives
Messages are designed to achieve specific strategic goals.
The “BellSouth Yellow Pages” campaign’s four objectives:
Introduce the new brand name and achieve
50% unaided brand awareness
80% aided brand awareness
Exceed unaided ad recall norm of 14%
Improve consumer usage share above 85%
Increase revenues by 2.6%

41. Major Aspects of the Advertising Program
Message development
Called “Creative Strategy”
Determine basic appeal
Determine main message
Media strategy
Communication channels
Type of media . . .
Newspapers?
Magazines?
Radio?
Television?
Outdoor?
Specific media . . .
What specific papers, magazines, stations, billboards, or other media?

42. Product Decisions A product is a bundle of benefits or values
Product symbolism refers to what a product or brand means to customers
Product quality, branding, packaging, and company name contribute to product image
BRANDING:
Brand name communicates attributes and meaning
Advertising creates and maintains brand equity
PACKAGING:
Packaging has become increasingly important
It is often the customer’s first exposure to product

43. Pricing Decisions
Price must be consistent with perceptions of the product
Higher prices communicate higher product quality
Lower prices reflect bargain or “value” perceptions
A product positioned as high quality while carrying a lower price than competitors will confuse customers
Price, advertising and distribution be unified in identifying the product position

44. Distribution Channel Decisions
Channel decisions involve:
Selecting
Managing
Motivating
Independent intermediaries:
Wholesalers
Distributors
Brokers
Retailers