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Integrated Marketing Communications

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1 Integrated Marketing Communications
Chapter 1 Integrated Marketing Communications

2 To "Be all you can be" in the Army now means being "An Army of one.“
United States Army “An Army of One” To "Be all you can be" in the Army now means being "An Army of one.“ 10-Jan-2001

3 Last Class Introduction!!!


5 Objectives To review the various elements of the promotional mix
To introduce the concept of integrated marketing communications To summarize the IMC planning process and examine the steps in a marketing communications program To examine how various elements must be coordinated to communicate effectively with the IMC perspective

6 Marketing Defined The process of planning and executing
and __________ of _____, _____, and _______ to create ________ that satisfy individual and organizational objectives. American Marketing Association

7 Marketing Defined The process of planning and executing
the conception, pricing, promotion, and distribution of _____, _____, and _______ to create ________ that satisfy individual and organizational objectives. American Marketing Association

8 Marketing Defined The process of planning and executing
the conception, pricing, promotion, and distribution of ideas, goods and services to create ________ that satisfy individual and organizational objectives. American Marketing Association

9 Marketing Defined The process of planning and executing
the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. American Marketing Association

10 The Marketing & Promotional Mixes
Product or service Pricing policy Distribution method (Place) Marketing communications mix (Promotion) Advertising Direct marketing Sales promotion Publicity/public relations Personal selling

11 Marketing plan : is a written document that describes the overall marketing strategy and programs developed for an organization, product line, or brand.

12 Advertising Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.

13 Advertising Marketers use advertising to: create brand image
strike a responsive chord with consumers when differentiation using other elements of the marketing mix is difficult create symbolic appeals for a company or brand take advantage of the fact that advertising is a very cost-effective method of reaching a large audience

14 Advantages of Advertising:
cost-effective way for communicating, with large audiences ability to create images and symbolic appeals and for differentiating similar products and services ability to strike audience through creative advertising ability to control the message (what, when and how something is said and where it is delivered.

15 Disadvantages of Advertising:
the cost of producing and placing ads can be very high, particularly television commercials, it can be difficult to determine the effectiveness of advertising there are credibility and image problems associated with advertising

16 Spending in $Billions [United States]

17 Show Net Price*** Change 1 Friends NBC $473,500 3.9% 2 Will & Grace $414,500 10.1% 3 ER $404,814 -7.7% 4 Survivor CBS $390,367 -6.8% 5 Scrubs $360,950 22.5% 6 Coupling $316,400 * 7 CSI $310,324 10.8% 8 The Simpsons Fox $296,440 19.4% 9 24 $292,200 58.3% 10 Mon. Football ABC $272,867 -8.4% The "Change" field represents the difference from last season. * 'Coupling' is a new show. There is no previous season comparison number. ***Price is the cost of placing a 30 second ad in the particular show

18 Rakamlarla reklam... Türkiye'de reklam sektörünün GSYH'ye oranı binde 5. Bu oran bazı gelişmiş ülkelerde yüzde 2 Türkiye'de 24'ü ulusal, 76'sı kablo, diğerleri bölgesel ve yerel olmak üzere 340 televizyon kanalı var 34 ulusal gazate yayımlanırken, düzenli reklam alan 250 dergi bulunuyor 2006'da 14 bin firma 17 bin marka için reklam verdi Tam hizmet veren reklam ajansı sayısı 100'ü buluyor

19 In 2005 in Turkey One of the indicators of improvement in advertising sector is number of new ads of firms and brands other one is the number of ads in total. Last year 717 brands advertised for the first time. In total 13,810,636 second of ads were run TV shows were taking the lead. National TV shows in total had 10,335,659 seconds of ads. Foreign TV shows in total had 5,726,725 seconds of ads. Number 1 was (with syndications) "Çocuklar Duymasın“ It was aired 382 times and had 515,073 seconds of ads. Number 2 was "En Son Babalar Duyar". It was aired 366 times and had 469,754 seconds of ads.

20 By 2007 February What are the most watched TV shows?
Binbir Gece (Kanal D) Avrupa Yakası (atv) Acı Hayat (Show TV) Sıla (atv) Arka Sokaklar (Kanal D) Yaprak Dökümü (Kanal D) Sağır Oda (Kanal D) Cennet Mahallesi (Show TV) Candan Öte (Star) Karagümrük Yanıyor (Star) Ihlamurlar Altında (Kanal D)

21 Show TV reklam fiyatlari

22 What are the TV shows that get the most # of ad placements?
TV Chn Show #of Ads TV Chn Show #of Ads Stv Sirlar Dünyas? Kanal 7 Kalp Gözü 827 Stv Be?inci Boyut Show TV Aci Hayat 741 Stv Büyük Bulu?ma Kanal 7 Eksi 688 Atv Avrupa Yakas? Star. Köprü 640 Stv Yagmurdan Sonra Atv Sila 626 Stv Yeseren Düsler Show TV Ezo Gelin 563 Atv Söhret Show TV Emret Komutan 532 Atv Selena Show TV Yanik Koza 509 Star Iki Aile Show TV Cennet Mahalle 504

23 27 AUGUST-02 SEPTEMBER 2007 Most Advertised 10 Brands
No Brand # of ads Brand Duration(sn) 1 Ülker İçim Kosla 2 Turkcell Süper Ligi Turkcell 3 Clear Ülker İçim 4 Beko Turkcell Süper Ligi 5 Denizbank THY 6 Bellona İş Bankası 7 Domestos Clear 8 İstikbal Ülker Colaturka 9 Elidor Dove 10 Turkcell Beko

24 Most Advertised Industries
No Industry # of Ads Industry Duration(sn) 1 Gıda Gıda 2 Finans Finans 3 Kozmetik Ev Temizlik 4 Ev Temizlik Kozmetik 5 Kişisel Bakım Kişisel Bakım 6 Tekstil / Deri İletişim Tekno 7 İnşaat/Emlak Yayıncılık 8 Yayıncılık İnşaat/Emlak 9 İletişim Tekno Otomotiv 10 Dayanıklı TM Tekstil / Deri

25 What about Newspapers What are the newspapers with the most ad placements? Hürriyet Zaman Sabah

26 Circulation??? 03-09 September 2007
Weekly Circulation Numbers Posta Hürriyet Zaman Sabah P.Fotomaç Takvim Fanatik Vatan Milliyet Akşam Güneş Türkiye Yeni Şafak Bugün Star Sözcü Cumhuriyet E. Fotospor A.Vakit A.Şok Yeni Çağ Milli Gazete Radikal H.O.Tercüman

27 Classifications of Advertising
National advertising Retail/local advertising Advertising to increase demand Primary demand for the product category Selective demand for a specific brand Business & professional advertising Business-to-business advertising Professional advertising Trade advertising

28 Sales Promotion Marketing activities that provide extra value or incentives to the sales force, distributors, or ultimate consumers and can stimulate immediate sales.

29 Advantages of Sales Promotion
provides extra incentive to consumer or middlemen way of appealing to price sensitive consumer effects can often be more directly measured than those of advertising can be used as a way of building or reinforcing brand equity

30 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. 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 Relation to text This slide relates to material found on pp14-15 and IMC Perspective 1-2 of the text. Summary Overview With more and more products and services available to consumers, developing and maintaining brand identity is becoming increasingly more important. Well known brands have a major competitive advantage in today’s marketplace. A well-defined and coordinated IMC plan contributes to overall brand identity and equity. Use of this slide This slide can be used to define brand identity and discuss the importance of building and sustaining strong brand identity. The list of the 10 most valuable brands, as measured by the brand consultancy company Interbrand, should be familiar to your students. You might discuss how these popular brands may have a competitive edge with consumers during the purchase decision process. IMC plays a major role in the process of developing and sustaining brand identity and equity.

31 Intel’s Advertising Helps Build Brand Equity
Relation to text This slide relates to the material in IMC Perspective 1-2 on p. 15 regarding the power of brands. Summary Overview This slide contains a commercial from one of the phases of the “Intel Inside” advertising campaign. As shown in the table in IMC Perspective 1-2, Intel is one of the world’s 10 most valuable brands. Intel spends over $1 billion a year globally on advertising which makes it the world’s leading high tech advertiser. The commercial shown here features Intel’s “Bunny People” who were introduced in early 1997 as part of the advertising campaign for the Pentium II microprocessor with MMX technology. The Bunny People are a takeoff of the workers who wear so-called bunny suits to keep chip labs sterile. The spot shows the technicians adding something new to Intel’s Pentium processor – fun in the form of MMX technology. It then shows the Bunny People dancing to the’70s disco hit – Play That Funky Music. Use of this slide The Intel commercial can be used as part of a discussion of branding and the role advertising plays for companies in developing and maintaining a strong brand image. Intel has used a variety of advertising campaigns over the past 12 years to strengthen its brand image and demonstrate the power of its various generations of Pentium processors.

32 Disadvantages of Sales Promotion
many companies are becoming too reliant on sales promotion and focusing too much attention on short-run marketing planning and performance short-term sales gains are often achieved at the expense of long-term brand equity     

33 Types of Sales Promotion
Customer-oriented Trade-oriented

34 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

35 Publicity Non-personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. Publicity is NOT advertising. Advertising. Paid, sponsor-identified, non personal (media) communications. Publicity. Non-paid, unsponsored, non personal (media) communications.

36 Publicity Vehicles News releases: Single-page news stories sent to media Feature articles: Larger manuscripts Captioned photos Press conferences Special events: Sponsorship of events, teams, or programs of public value.

37 Advantages of Publicity
credibility of publicity is usually higher than other low cost way of communicating often has news value and generates word‑of‑mouth discussion among consumers

38 Disadvantages of Publicity
lack of control over what is said, when, where and how it is said can be negative as well as positive

39 Advertising Versus Publicity
_____, ___________, nonpersonal (media) communications. Publicity ___________, __________, nonpersonal (media) communications.

40 Advertising Versus Publicity
Paid , sponsor-identified, nonpersonal (media) communications. Publicity Unpaid, unsponsored, nonpersonal (media) communications.

41 Advertising Versus Publicity
FACTOR ADVERTISING PUBLICITY Control Great Little Credibility Lower Higher Reach Achievable Undetermined Frequency Schedulable Low Cost Specific Unspecified Flexibility High Low Timing Specifiable Tentative

42 Direct Marketing Direct marketing methods. Direct mail. Cataloging.
Organizations communicate directly with target customers to generate a response and/or transaction. Direct marketing methods. Direct mail. Cataloging. Telemarketing. Direct response ads. Internet sales.

43 Personal Selling A form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase to company’s product or service or act on an idea. flexibility exists to tailor the message to the customers specific need or situation.

44 Advantages of Direct Marketing
changes in society- convenience Ability to be selective and target its marketing communications to specific customer segments messages can be customized effectiveness of direct-marketing efforts are easier to assess than other forms of promotion

45 Disadvantages of Direct Marketing
consumers and businesses bombarded with unsolicited mail and phone calls which makes them less receptive to direct-marketing direct marketing has image problems problems with clutter

46 Relationship Marketing
Marketing Focuses on EXCHANGE nature of exchange what is needed for this process to occur including: two or more parties with something of value to one another; and a way for the parties to communicate with one another.

47 ________________ is the process of creating, maintaining and enhancing long-term relationships with individual customers as well as other stakeholders for mutual benefit.

48 Relationship Marketing
is the process of creating, maintaining and enhancing long-term relationships with individual customers as well as other stakeholders for mutual benefit.

49 Ford Motor Company Ford’s Vision: To become the world's leading consumer company for automotive products and services

50 Integrated Marketing Communications
A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines -- for example, general advertising, direct response, sales promotion, and public relations -- and combines these disciplines TO PROVIDE CLARITY, CONSISTENCY, and maximum COMMUNICATIONS IMPACT.

51 Integrated Marketing Communications
Coordinating the various promotional elements and other marketing activities that communicate with the firm’s customers.

52 Reasons for Growth of IMC
Planning efficiency and effectiveness. Consumer adoption of technology and media. Innovative marketing practices. Customer’s point of view Relationship Marketing Planning efficiency and effectiveness. By coordinating marketing communication efforts companies avoid duplication, take advantage of synergy, and develop more efficient and effective programs. Consumer adoption of technology and media. Consumers lifestyles and purchasing behavior are changing as they adopt new technologies. Traditional media are facing declining audiences and less responsive consumers. Innovative marketing practices. A shift in marketplace power from manufacturers to retailers. A shifting of marketing dollars from media advertising to other forms of promotion. Customer’s point of view. All elements of the promotional campaign have to be carefully linked in some manner so that the message is clear and does not misrepresent the brand. A movement away from relying on advertising- focused approaches to solve communication problems.

53 Planning for IMC: Promotional Management
Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications. Considerations for developing the promotional mix include: Type of product. Buyer’s decision process Stage of product life cycle Channels of distribution

54 Situation Analysis Internal analysis. Internal factors.
Assesses relevant areas involving the product/service offering and the firm itself. Internal 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.

55 Situation Analysis External factors. External analysis.
Focuses on factors such as characteristics of a firms customers, market segments, environment and competitors. External factors. Customer analysis. Competitive analysis. Environmental analysis.

56 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

57 SUM UP Various elements of the promotional mix IMC planning process
Steps in a marketing communications program Coordination to communicate effectively with the IMC perspective

58 Next Class Understanding how firms organize advertising and IMC
Examining methods for selecting, compensating and evaluating Ad Agencies Explaining the role of specialized marketing communications organizations To do!!! Read Chapter 2

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