AN INTRODUCTION TO INTEGRATED MARKETING COMMUNICATION REPORTED BY: VICTORIA JESUSA CABALLERO PUP GRADUATE SCHOOL MASTERS IN BUSINESS ADMINISTRATION HUMAN RESOURCE MANAGEMENT

WHAT IS MARKETING? Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization. PRODUCT PRICE PROMOTION PLACE PRODUCT PRICE PROMOTION 4Ps PLACE

STRATEGIC MARKETING COMMUNICATION

WHAT IS INTEGRATED MARKETING COMMUNICATION? Integrated Marketing Communication is the coordination and integration of all marketing communication tools, avenues and sources within the company into a seamless program that maximizes the impact on consumers and other end users at minimal cost PRODUCT PRICE PLACE PRODUCT PRICE PLACE PROMOTION PEOPLE PROCESS PHYSICAL EVIDENCE

COORDINATED INTEGRATED MARKETING COMMUNICATION Sample videos

Point of purchase Publicity Public relations Direct marketing Interactive marketing Special events Packaging Sales promotion Direct response TRADITIONAL APPROACH TO MARKETING COMMUNICATIONS Media Adver- tising

CONTEMPORARY IMC APPROACH Point of purchase Publicity Interactive marketing Public relations Direct marketing Special events Packaging Sales promotion Direct response Media Adver- tising

TRADITIONAL VS INTEGRATED MARKETING

GOAL OF IMC BUILD BRANDS – brands that are well known and liked are more likely to be purchased Generate short-term financial returns and build long-term brand value. INCREASE PROFIT MARGIN

TRUST AMONG CONSUMERS BRAND DIFFERENTIATION ACCOUNTABILITY WITHIN A FIRM BENEFITS OF IMC IMC Level of Effectiveness is cutting through a message clutter than single strategies LEVEL OF EFFECTIVENESS IS CUTTING THROUGH A MESSAGE CLUTTER THAN SINGLE STRATEGIES

IMPACT OF IMC Business-to-business (B2B) interactions Marketing Channel Communications Customer-Focused Communications Internally Directed Communication INTEGRATED MARKETING COMMUNICATION

Traditional compensation Performance-based compensation Traditional compensation Performance-based compensation Media advertising Multiple forms of communication Mass media Specialized media Manufacturer dominance Retailer dominance General focus Data-based marketing Low agency accountability Greater agency accountability Limited Internet availability Widespread Internet availability Media advertising Multiple forms of communication Mass media Specialized media Manufacturer dominance Retailer dominance General focus Data-based marketing Low agency accountability Greater agency accountability THE CHANGING WORLD MCIMC

“Talking At” Consumers Two-way Dialogue with Consumers Focus on Winning New Customers Focus on Building Long Term Relationships with Consumers Marketers Relied Primarily on Advertising and Promotions Marketers Use and Coordinate Many Different Forms of Communication With Consumers “Talking At” Consumers Two-way Dialogue with Consumers Focus on Winning New Customers Focus on Building Long Term Relationships with Consumers Marketers Relied Primarily on Advertising and Promotions Marketers Use and Coordinate Many Different Forms of Communication With Consumers THE CHANGING WORLD OLD WORLDNEW WORLD

Mass Marketing Using Mass Communication Mass Marketing Using Mass Communication Relationship Marketing Using Integrated Marketing Communication with a Focus on Interaction Relationship Marketing Using Integrated Marketing Communication with a Focus on Interaction IMC – THE EVOLUTION TO

WHAT TRENDS ARE DRIVING THE INTEGRATION Brand and Product Proliferation INTERNAL EXTERNAL Customization Decreasing Brand Loyalty Price Sensitivity More Demand, Less Trust Clutter Service Economics Expertise Corporate Missions Communication Technology Benefits to be Gained Rising Costs & Accountability

IMC AND THE NEED FOR INTEGRATION Covers a number of different media and strategies TV, Radio, Direct, PR, Social Media etc. Integration provides synergy Selective combination of appropriate types of communication Meeting a common set of objectives for the brand. Integration over time with regard to customers

INTEGRATION AND SYNERGY INTEGRATION SYNERGY INTEGRATION SYNERGY When brand messages are integrated… …they reinforce each other… …and create synergy

THE IMPORTANCE OF INTEGRATION Integration begins with the way a company and its agencies organize the process for creating and delivering brand messages The Company All participants involved in creating and delivering brand messages must work together: Company Agencies The Media Channel Members, and MC Support Services

Brand Manager communicated by advertising, sales promotion, direct response, packaging, customer service, sponsorship, etc. ONE- AND Two-Way Media radio, newspaper, TV, outdoor boards, events, and sponsorships, mail, phone, internet, packaging, etc. Customer Brand Experience Evaluating and Planning IMC PROCESS MODEL WEAK BRAND RELATIONSHIPS Lose Customers, Sales, and Brand Equity WEAK BRAND RELATIONSHIPS Lose Customers, Sales, and Brand Equity STRONG BRAND RELATIONSHIPS Increased Sales, Customers, and Brand Equity STRONG BRAND RELATIONSHIPS Increased Sales, Customers, and Brand Equity Brand Manager communicated by advertising, sales promotion, direct response, packaging, customer service, sponsorship, etc. ONE- AND Two-Way Media radio, newspaper, TV, outdoor boards, events, and sponsorships, mail, phone, internet, packaging, etc. Customer Brand Experience Evaluating and Planning

THE KEY PLAYERS IN THE IMC PROCESS

ORGANIZATIONS: JANILYN SHOES AS AN EXAMPLE B2B B2C Janilyn’s Relationship with shoe retailer like SM Department Store Janilyn stores selling shoes directly to customers

THE COMMUNICATION PROCESS

INTERNET AND SOCIAL MEDIATRADE FAIRS AND EXHIBITIONSEVENTS AND SPONSORSHIPS TRADE FAIRS AND EXHIBITIONS PERSONAL SELLINGDIRECT MARKETINGPUBLIC RELATION | PUBLICITYSALES PROMOTIONADVERTISING ELEMENTS OF THE PROMOTIONAL MIX ADVERTISINGSALES PROMOTIONPUBLIC RELATION | PUBLICITYDIRECT MARKETINGPERSONAL SELLINGEVENTS AND SPONSORSHIPSINTERNET AND SOCIAL MEDIA

IMC AUDIENCE CONTACT TOOLS Target Audience Broadcast media (TV/radio) Print media (newspapers, magazines ) Public Relations/ publicity Internet/ interactive Direct marketing Direct marketing Sales Promotion Product placements (TV and movies) Events and sponsorship Word-of- mouth Point-of- purchase (displays, packaging) Personal selling Out-of-home media

Primary vs. Selective Demand Advertising Business-to-Business Advertising Organizations National Advertising Retail/Local Advertising Professional Advertising Trade Advertising National Advertising Retail/Local Advertising Business-to-Business Advertising Professional Advertising CLASSIFICATIONS OF ADVERTISING Consumers

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

Consumer- oriented [For end-users] Trade- oriented [For resellers] SALES PROMOTION TOOLS Events Loyalty Programs Bonus Packs Refunds/Rebates Contests/Sweepstakes Premiums Samples Coupons Coop Advertising Trade Shows Training Programs POP Displays Trade Allowances

Interviews Feature Articles Feature Articles Special Events Special Events Press Conferences Press Conferences News Releases News Releases Feature Articles Feature Articles Special Events Special Events News Releases News Releases PUBLICITY VEHICLES Publicity Vehicles

Corporate Advertising Cause-related Marketing Publicity Vehicles Community Activities Public Affairs Activities Special Publications Special Event Sponsorship Publicity Vehicles Community Activities Public Affairs Activities Special Publications PUBLIC RELATIONS TOOLS

ADVERTISING VERSUS PUBLICITY Advertising Publicity Tentative Low Low/Unspecified Uncontrollable Great Lower Measurable Schedulable High/Specific High Specifiable Undetermined Higher Little Factor Control Credibility Reach Frequency Cost Flexibility Timing

Direct Response Advertising Direct Response Advertising Direct Response Advertising Direct Response Advertising Direct Mail Direct Mail Catalogs Telemarketing Internet Sales Internet Sales Shopping Channels Shopping Channels Direct Mail Direct Mail Telemarketing Catalogs Shopping Channels Shopping Channels DIRECT MARKETING Direct Marketing

PERSONAL SELLING

TRADE FAIRS AND EXHIBITS

EVENTS AND SPONSORSHIPS

Builds and maintains customer relationships Obtains customer database information Communicates and interacts with buyers Provides customer service and support Educates or informs customers A persuasive advertising medium A sales tool or an actual sales vehicle Obtains customer database information Communicates and interacts with buyers Provides customer service and support Educates or informs customers A persuasive advertising medium A sales tool or an actual sales vehicle INTERNET | SOCIAL MEDIA The Internet