4550: Integrating Marketing Communications: Part I Professor Campbell 4/5/05

Plan for next 3 sessions Part I of IMC –Why is IMC important? –What is IMC? –How does this differ from past approaches? The Diamond Mind –What was the “IMC” plan used by DeBeers? –How do you respond to this? Part II of IMC –How can we make IMC more powerful?

Purposes of Marcom Inform prospective customers about your products, services, terms of sale, distribution channels,etc. Persuade as to the benefits provided Induce action  Enact the positioning that is the basis of brand equity

Consumer Decision Process Post Evaluation/ Preference Problem Awareness Search/ Knowledge of Alternatives Purchase Decision Attitude formation Perception Motivation Integration Learning Brand Equity

Communication is Challenging! High clutter and noise characterize today’s consumer environment Consumers may lack motivation, ability or opportunity to process –Getting attention for any one message is very difficult –Gaining enough processing attention to create memory is especially difficult  The current, best solution is “Integrated Marketing Communications”

Integrated Marketing Communications Recognizes the importance of the integration and coordination of all elements of the marketing communications mix –More focused –More consistent –More effective –More efficient Advertising PR Promotions Sales Key Message

IMC Breaks Through the Clutter IMC involves coordinating communications activities to solve specific marketing problems and to achieve overall strategic objectives -- based on an understanding of consumer needs –The old way Always invest in advertising and promotion to solve specific communication problems –The IMC way Select the best combination of marketing communication tools to achieve consumer-based objectives

Old Way PR Product Merchandising Trade Shows Promotions Direct Marketing Packaging Advertising Selling/ Proposals

Implications of the Brand Equity Approach The manner in which a brand association is formed doesn’t matter What matters is: –Favorability –Strength –Uniqueness Thus, evaluate the wide variety of marketing communication options available to create these knowledge structures in terms of: –Cost –Effectiveness

The Snorkeler's View of IMC “One look, one feel”

Physical Continuity Increases motivation, opportunity, and ability to process Builds stronger linkages in memory

Direct Reinforcement Within advertising media –15 second excerpts sustain frequency and maintain association strength –An ad at the end of a campaign that “compiles” the ads in the ad pool helps consumers to make connections across ads  Excerpts from past ads/campaigns leverage existing knowledge, feelings, and attitudes

Direct Reinforcement Across communication media –Advertising retrieval cues Improve motivation and ability to retrieve communication effects –TV-Radio: consumers replay visuals (but at the expense of other processing) –Radio-TV may lead to enhanced processing due to curiosity or resolution –TV-Print increases probability that consumers will: notice the print ad actively process the print ad contents favorably respond to the ad

Physical Continuity... Stronger associations may be created by explicitly linking marketing communications to the brand –Cues to earlier communications All forms of variation increase likelihood that consumers form and retrieve links between brand and communications

“Snorkeler's” IMC PR Communication Idea (Advertising) Merchandising Trade Shows Promotions Direct Mail Packaging Sales

The Scuba Diver’s View of IMC Strategic planning and coordination for communication impact –Multiple tools –Multiple audiences –Multiple stages

IMC Desired Position Trade Shows Ads Promotions Proposals

Steps for Achieving Integrated Marketing Communications 1. From a thorough marketing analysis of the company, the marketing situation, and the customers’ wants and needs, create a competitive advantage. 2. This should drive the definition of the role and objectives of marketing communications within the overall marketing mix. 3. The specific marketing communications tools and messages are derived from the overall marketing communications strategy.

“Scuba” IMC PR Customer- Based Idea Merchandising Trade Shows Promotions Direct Marketing Packaging Advertising Selling/ Proposals