For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin IMC Planning

 How does IMC planning work?  What are the 6 steps in the process?  Why is internal marketing important? Chapter Outline

Musical score guides all the members of the orchestra to play together IMC plan guides all the members of an organization to work together Musical score guides all the members of the orchestra to play together Chapter Perspective IMC is like an orchestra

Opening Case: GMC Envoy

IMC program featuring: Direct mail campaign with unique “2 brothers” theme with no GMC branding Sweepstakes with free 2 year lease Follow-up letters from local dealers IMC program featuring: Direct mail campaign with unique “2 brothers” theme with no GMC branding Sweepstakes with free 2 year lease Follow-up letters from local dealers Create an appealing identity for new vehicle 10.5 percent response rate 4,162 Envoy sales attributed to campaign 40 marriage proposals for the fictitious “2 brothers” 10.5 percent response rate 4,162 Envoy sales attributed to campaign 40 marriage proposals for the fictitious “2 brothers” IMC program featuring: Direct mail campaign with unique “2 brothers” theme with no GMC branding Sweepstakes with free 2 year lease Follow-up letters from local dealers IMC program featuring: Direct mail campaign with unique “2 brothers” theme with no GMC branding Sweepstakes with free 2 year lease Follow-up letters from local dealers Create an appealing identity for new vehicle Opening Case: GMC Envoy Challenge: Answer: Results:

IMC Planning Starts at Zero Zero-based planning: A process that determines objectives and strategies based on current brand and marketplace conditions

Tales From the Real World In the real world, many organizations pay lip service to “zero-based” planning or ignore it completely. Why? It’s human nature. It is simply much easier and less time consuming to find last year’s plan, dust it off, make a few minor changes, and present it as a new plan. There’s only one problem: last year’s SWOTs may no longer apply. As a result, the new plan may be addressing old issues—and wasting marketing dollars.

Provides a Rational Process Informs Everyone of Expectations Ensures That the Program Is Integrated Helps Identify Budget Creates a Benchmark for Measuring Results Provides a Rational Process Informs Everyone of Expectations Ensures That the Program Is Integrated Helps Identify Budget Reasons for IMC Planning IMC Planning Reasons

Typical Results: An Annual Campaign Annual campaign: A set of MC messages with a common theme that runs for a specified period of time to achieve certain MC objectives.

Department Plan: Marketing operations/ production, human resources Department Plan: Marketing operations/ production, human resources Department Level Department Plan: Marketing operations/ production, human resources Department Plan: Marketing operations/ production, human resources Department Level Business Plan: Focused on the profits and brand equity Business Plan: Focused on the profits and brand equity Corporate Level MC Level IMC plan: Advertising, publicity, sales promotion, events and sponsorships, direct response IMC plan: Advertising, publicity, sales promotion, events and sponsorships, direct response Business Plan: Focused on the profits and brand equity Business Plan: Focused on the profits and brand equity Corporate Level Where it Fits in the Organization

Step 6: Evaluate Effectiveness Step 5: Set the Budget Step 4: Develop Strategies and Tactics Step 3: Determine MC Objectives Step 2: Analyze SWOTs Step 1: Identify Target Audiences Step 5: Set the Budget Step 4: Develop Strategies and Tactics Step 3: Determine MC Objectives Step 2: Analyze SWOTs Step 1: Identify Target Audiences What Are the 6 Steps in the Process?

Target for Envoy Current GMC Jimmy owners Current SUV owners Current luxury car owners

SWOT Strengths –Strong GMC consumer franchise –Good Dealership network –Identifiable target Weaknesses –No Envoy brand awareness –Not available until spring –Small budget, no major MC support until spring Opportunities –Increasing interest in SUVs –Good Economy Threats –Established competitive brands –New brands coming into market

Objective –Specific –Measurable –Achievable –Challenging –Time Line Use communication objectives to move through AIDA –Think/Feel objectives –Customer focused

Example of a Company Targeting Upscale WomenTargeting + +

Think About It What types of products target you, as a college student?

Insight: The 4 Cs Some marketers think of the 4Cs in addition to the 4Ps: 1) Consumers: Ask consumers how your brand compares to competitors 2) Cost: Ask consumers how they perceive the cost of your brand vs. competitors 3) Convenience: Ask consumers how convenient it is to locate and buy your brand vs. competitors 4) Communication: Ask consumers if they are getting what they need to make the best buying decision

Developing Strategies and Tactics Selecting the marketing communication and Media mixes Selecting the Creative ideaidea Selling the strategy with strong rationale

Setting the budget Cost or Investment Percentage of Sales Objective-and-Task Share of Voice

Evaluating Effectiveness Market TestingMarketTesting Campaign Effectiveness The role of Feedback

IMC In Action: Snapple

An IMC campaign featuring: Advertising using a wacky campaign about maturing fruit aimed at young people A virtual community called “Snappleton” An IMC campaign featuring: Advertising using a wacky campaign about maturing fruit aimed at young people A virtual community called “Snappleton” Rebuild Snapple’s brand appeal Too early to tell IMC In Action: Snapple Challenge: Answer: Results: An IMC campaign featuring: Advertising using a wacky campaign about maturing fruit aimed at young peoplematuring A virtual community called “Snappleton”community An IMC campaign featuring: Advertising using a wacky campaign about maturing fruit aimed at young peoplematuring A virtual community called “Snappleton”community Rebuild Snapple’s brand appeal

Why is Internal Marketing Important? A critical responsibility of marketing: Interpreting the needs of the customer and the marketplace and bringing that information to all departments

Informing Employees Example: company intranet for employees Empowering Employees Example: authorizing employees to make decisions on their own to help customers Listening to Employees Example: encouraging everyone to suggest better ways of dealing with customers Informing Employees Example: company intranet for employees Empowering Employees Example: authorizing employees to make decisions on their own to help customers Why is Internal Marketing Important?

IMC In Action: HP SoftBench

Create an appealing brand identity An IMC program featuring: The “We Understand” theme executed in: Print advertising 3 direct-mail pieces Trade-show handout Integrated into website An IMC program featuring: The “We Understand” theme executed in: Print advertising 3 direct-mail pieces Trade-show handout Integrated into website Successful introduction of SoftBench IMC In Action: HP SoftBench Challenge: Answer: Results: An IMC program featuring: The “We Understand” theme executed in: Print advertising 3 direct-mail pieces Trade-show handout Website An IMC program featuring: The “We Understand” theme executed in: Print advertising 3 direct-mail pieces Trade-show handout Website Create an appealing brand identity

Final Note: In order to create a true customer focus throughout the company, everyone must play from the same score: an integration-driven marketing communication plan

 Zero-based Budgeting? What Assumption does it Challenge?  Internal and External in SWOT? Snapple Examples, Addressed and Leveraged…  Define Internal Marketing… Questions - 6