1-1 Pizza ! List the first five pizza companies that come to mind. Discussion Slide Describe the advertisements used by each. Can you identify each company’s logo, tagline or any other prominent identification marks? What makes a good pizza advertisement? 1

1-2 Chapter Overview Highly competitive global marketplace. Need to invest marketing dollars wisely. Firms are demanding accountability. Change in roles of account executives, creatives and brand managers. Chapter One topics: Communication processes Integrated marketing communications Global integrated marketing communications Integrated Marketing Communications 1

1-3 Which advertisement attracts your attention the most? Which advertisement is the least appealing? How important is the brand name in each ad? What is the message of each individual advertisement? What makes each advertisement effective? What are the pros and cons of each advertisement? Click image for larger view E X H I B I T 1. 2 Shoe Advertisements

1-4 F I G U R E 1.1 Communication Process

1-5 What message do you think each sender wanted to communicate? What factors affect the decoding of each ad’s message? What noise factors would interfere with receiving the correct message? E X H I B I T 1. 2 Shoe Advertisements Discussion Slide

1-6 Comparing the Advertisement to the Web Site Reebok ( New Balance ( Asics ( Skechers ( INTEGRATED LEARNING EXPERIENCE STOP

1-7 Age Gender Culture Social status Personality Poor selling techniques Unfocused advertising Poor media choices Failure to find correct contact persons Between IndividualsBetween Companies Within Companies Poor downward flow (orders, procedures) Poor lateral flow (communication between departments) Poor upward flow (employees afraid of management) Poor machinery (computers, telephone systems, intranet systems) Information not stored for future use or poor retrieval system F I G U R E 1. 2 Barriers to Communication

1-8 Advertising Clutter To how many ads were you exposed during the last 24 hours from the following media? –Television –Radio –Magazines –Newspapers –Billboards –Internet Web sites How many ads can you recall from each of the above media? Discussion Slide

1-9 Phillip Franznick, President/Partner of FD & B Advertising Agency talks about the change in advertising agencies to integrated marketing communication agencies. Click image to play video.

1-10 Integrated Marketing Communications is the coordination and integration of all marketing communication tools, avenues and sources within a company into a seamless program which maximizes the impact on consumers and other end-users at a minimal cost. The IMC includes all business-to- business, channel, customer, external communications and internal communications.

1-11 F I G U R E 1. 3 Traditional Marketing Mix

1-12 F I G U R E 1. 5 Integrated Marketing Communication Plan

1-13 Company logo Product brand name and company name Business cards Letterhead Carry home bags (paper or plastic) Wrapping paper Coupons Promotional giveaways (coffee mugs, pens, pencils, calendars) Design of booth for trade shows Advertisements (billboards, space used on cars and busses, television, radio, magazines and newspapers) Toll free 800 number Company database Cooperative advertising with other businesses Personal selling pitches Characteristics of target market buyers Characteristics of business buyers Sales incentives provided to sales force (contests, prizes, bonuses and commissions) Internal messages Company magazines and newspapers Statements to shareholders Speeches by company leaders Public relations releases Sponsorship programs Web site F I G U R E 1. 8 Items to be Included in an IMC Program

1-14 Four Stages in Cultivating an IMC System l Stage 1: Identify, coordinate and manage all forms of external communications. l Stage 2: Extend the scope of communication to include everyone in the organization. l Stage 3: Apply information technologies to the IMC program. l Stage 4: Treat the IMC as an investment and not a departmental function. [American Productivity & Quality Center]

1-15 Strategies of the Best Companies Developed both interpersonal and cross-functional communications. Involved customers in planning processes. Understood customers as corporate customers for the purpose of cross- selling. [American Productivity & Quality Center]

1-16 Development of information technology. Changes in channel power. Increase in competition (global competitors) Maturing markets. Brand parity Integration of information by consumers Decline in effectiveness of mass media advertising. F I G U R E 1. 6 Factors Affecting the Value of IMC Programs

1-17 Information is an important key to successful IMC programs What is happening today in the news??? Creative Digest Marketing Digest Advertising Digest Brandera The Marketer’s Marketplace INTEGRATED LEARNING EXPERIENCE STOP

1-18 The Internet Impact: Changes in Channel Power Greater use of the Internet to buy and sell products

1-19 Get annoyed at the number of ads (52%) Get up and do something else (45%) Switch channels (39%) Talk to others in the room (34%) Turn down the sound on TV (19%) Read (11%) Use the computer (5%) Get amused by the ads (26%) Sit and watch commercials (19%) Positive Responses: Negative Responses: Source: Jennifer Lach, “Commercial Overload,” American Demographics, (September 1999), Vol.. 21, No. 9, p. 20. F I G U R E 1. 7 Viewer Activities During TV Commercials

1-20 Global Integrated Marketing Communications GIMC is more challenging in the international arena. Standardization vs Adaptation. “Think globally, but act locally.”

1-21 Building Your IMC Campaign Goal is to build an IMC campaign. From each chapter, concepts learned will be applied to your IMC Campaign. Select your IMC team. Choose a good or service –Bottled water –Ink pen –Chopsticks –Perfume or cologne –Purse –Errand and reminder service –E-trade service