An Introduction to Integrated Marketing Communications McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Integrated Marketing Communications (IMC) What is it? “recognizes the value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines --- advertising, public relations, personal selling and sales promotion - -- and combines them to provide clarity, consistency, and maximum communications impact” 1 Different types of promotional techniques are good at different things. Maximize your promotional impact by using each promotional technique wisely; and use them in combination. 1 – Evans and Berman, page 464.

The Promotional Mix Advertising –Paid, impersonal, mass comm. Public Relations –Comm. To foster a positive public image Personal Selling –Personal, oral comm., make a sale Sales Promotion –Paid, activities designed to stimulate sales – consumer and channel

IMC Communication Tools Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations Personal Selling

Reasons For Growing Importance of IMC  Shift from media advertising to other forms of marketing communication  Movement away from advertising focused- approaches that emphasize mass media  Shift in power from manufacturers to retailers  Rapid growth of database marketing  Demands for greater ad agency accountability  Changes in agency compensation  Rapid growth of the Internet  Increasing importance of branding

Potential Communications Objectives Sales Customer loyalty Company image Brand image Store patronage Service contract An inquiry A visit by a prospect Product trial Recommendation Adoption of the product

Evolution of IMC The concept of IMC – the idea of managing customer relationships – is not new. However, the processes used in managing IMC, such as taking advantage of new communication and database technologies and creating synergy for a brand, are new.

A key aspect of IMC is the need for synergy All communication elements should convey the same, unified message, otherwise consumers will be confused Examples: Good and Bad Integrated Marketing Communications Achieve Synergy

Examples of Good/Bad IMC in Practice For-Profit Business Non-Profits People Cities/Communities Schools

For-Profit Business Wal-Mart –Key Positioning / IMC Elements? Southwest Airlines –Key Positioning / IMC Elements?

Non-Profits Roosevelt County Literacy Council Key Positioning / IMC Elements: –Adult Literacy Organization –Needs to change image (Stuffy) –Desperately needs to attract more (younger) tutors

RCLC Web Page

RCLC Logo

RCLC Logo Suggestions (MKT 452)

People Rob Zombie

People Rob Zombie

Cities / Communities Roswell

UFO Museum and Research Center

Another good example of POOR IMC in action University of North Carolina - Asheville

What is being communicated here?

IMC Wrap-up Good IMC can help improve an image, develop liking/preference, and help sell products/services “Bad” IMC can hinder them...

IMC: Jewish Hospital - Clip What did Jewish Hospital do and why? Achieve Synergy

The Value of Strong Corporate and/or Brand Identity  Creates more options for competing against lower-priced competitors  Builds customer loyalty  Makes it easier to withstand economic fluctuations and marketing crises  Allows companies to sell products/services at a premium price and maintain larger profit margins  Can facilitate brand and line extensions  Makes customer response more inelastic to price increases and elastic to price decreases

Crest uses its strong brand equity to launch a line extension

Pricing Decisions  Price must be consistent with perceptions of the product  Higher prices communicate higher product quality  Lower prices often reflect bargain or “value” perceptions  A product positioned as high quality while carrying a lower price than competitors may confuse customers  Price, advertising and distribution must be unified to create the position for the product or service.

Instructor Questions for Chapter 1 and 2 What is IMC? Why do it? What is Media Fragmentation? How have sellers dealt with Media Frag?