McGraw-Hill/Irwin 1-1 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 1 An Introduction to Integrated Marketing Communications

McGraw-Hill/Irwin 1-3 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. The Marketing & Promotional Mixes Product or Service Pricing Policy Distribution Method Promotional Mix Advertising Direct Marketing Sales Promotion Publicity/Public Relations Personal Selling

McGraw-Hill/Irwin 1-4 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Integrated Marketing Communications A marketing communications planning concept. Recognizes the value of a comprehensive plan. A plan that evaluates the strategic roles of several communications disciplines: General advertising Direct response Sales promotion Public relations Combines the disciplines to provide: Clarity Consistency Maximum communications impact

McGraw-Hill/Irwin 1-5 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. A Marketing Revolution Shift from media advertising to other forms Movement away from a mass media approach Shift in power from manufacturers to retailers Rapid growth of database marketing Greater ad agency accountability Changes in agency compensation Rapid growth of the Internet

McGraw-Hill/Irwin 1-6 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Advertising Versus Publicity Advertising Paid, sponsor-identified, nonpersonal (media) communications. Publicity Non-paid, unsponsored, nonpersonal (media) communications.

McGraw-Hill/Irwin 1-7 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. 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

McGraw-Hill/Irwin 1-8 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Direct Marketing Direct marketing methods Direct mail Cataloging Telemarketing Direct response ads Internet sales Part of the IMC program Typically has separate: Objectives Budgets Strategies

McGraw-Hill/Irwin 1-9 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Interactive/Internet Marketing An entirely new era: Little or no history or experience Rapidly changing communications technology Unprecedented growth and development Multiple Internet roles As a persuasive advertising medium As a means to educate or inform customers As a sales tool or an actual sales vehicle To obtain customer database information To communicate and interact with buyers To provide customer service and support To build and maintain customer relationships

McGraw-Hill/Irwin 1-10 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Marketing activities that provide extra value or incentives to the sales force, distributors, or ultimate consumers and can stimulate immediate sales. Sales Promotion Trade-oriented Targeted toward marketing intermediaries such as retailers, wholesalers, or distributors Promotion allowances Merchandise allowances Price deals Sales contests Trade shows Customer-oriented Targeted to the ultimate users of a product or service Coupons Sampling Premiums Rebates Contests Sweepstakes POP materials

McGraw-Hill/Irwin 1-11 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Sales Promotion Uses Introduce new products Get existing customers to buy more Attract new customers Combat competition Maintain sales in off season Increase retail inventories Tie in advertising & personal selling Enhance personal selling efforts

McGraw-Hill/Irwin 1-12 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Advertising Versus Publicity FACTORADVERTISINGPUBLICITY ControlGreatLittle CredibilityLowerHigher ReachAchievableUndetermined FrequencySchedulableLow CostSpecificUnspecified FlexibilityHighLow TimingSpecifiableTentative

McGraw-Hill/Irwin 1-13 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Publicity Vehicles News Releases: Single-page news stories sent to media who might print or broadcast the content. Feature Articles: Larger manuscripts composed and edited for a particular medium. Captioned Photos: Photographs with content identified and explained below the picture. Press Conferences: Meetings and presentations to invited reporters and editors. Special Events: Sponsorship of events, teams, or programs of public value.

McGraw-Hill/Irwin 1-14 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Public Relations Tools used by Public Relations Publicity Special publications Community activity participation Fund-raising Special event sponsorship Public affairs activities 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.

McGraw-Hill/Irwin 1-15 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications. Promotional Management Considerations for developing the promotional mix include: Type of product Buyer’s decision process Stage of product life cycle Channels of distribution

McGraw-Hill/Irwin 1-16 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. The Marketing Plan 1.A detailed situation analysis 2.Specific marketing objectives 3.A marketing strategy and program 4.A program for implementing the strategy 5.A process for monitoring and evaluating performance

McGraw-Hill/Irwin 1-17 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Situation Analysis 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 External Factors Customer analysis Competitive analysis Environmental analysis

McGraw-Hill/Irwin 1-18 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Potential Communications Objectives Individual sales Customer loyalty Company image Brand image Store patronage Service contract An inquiry A visit by the prospect Product trial Prescription for use Recommendation Adoption of the product

McGraw-Hill/Irwin 1-19 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Major Aspects of the Advertising Program Message development Called “Creative Strategy” Determine basic appeal Determine main message Media strategy Communication channels Type of media... Newspapers? Magazines? Radio? Television? Outdoor? Specific media... What specific papers, magazines, stations, billboards, or other media?