1. Integrated Marketing Communications

2. © 2005 McGraw-Hill Ryerson Limited
Chapter Objectives
To review the various elements of the promotional mix: advertising, sales promotion, public relations, direct marketing, Internet marketing, and personal selling.
To introduce the concept of integrated marketing communications (IMC) by considering its evolution, growth, importance, and a broader view.
To examine how various marketing and promotional elements must be coordinated to communicate effectively with the IMC perspective.
To summarize a model of the IMC planning process and examine the steps in developing a marketing communications program.
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3. © 2005 McGraw-Hill Ryerson Limited
Promotion
“Coordination of all seller-initiated efforts to set up channels of information and persuasion to sell goods and services or to promote an idea.”
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4. Basic Elements of the Promotional Mix
Advertising
Advertising
Direct Marketing
Direct Marketing
Interactive/
Internet Marketing
Interactive/
Internet Marketing
Sales Promotion
Sales Promotion
Publicity/Public
Relations
Publicity/Public
Relations
Personal Selling
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5. Basic Elements of the Promotional Mix
Advertising
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6. © 2005 McGraw-Hill Ryerson Limited
Advertising
Non-personal communication
Highly pervasive form of promotion  best known, most widely discussed.
Used to create brand images and symbolic appeals for a company or brand.
Ability to strike a responsive chord with consumers.
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7. Classifications of Advertising
Consumers
National Advertising
National Advertising
Retail/Local Advertising
Retail/Local Advertising
Primary vs. Selective Demand Advertising
Primary vs. Selective Demand Advertising
Business-to-Business Advertising
Business-to-Business Advertising
Organizations
Professional Advertising
Professional Advertising
Trade Advertising
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8. An Example of “B-to-B” Advertising
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9. Basic Elements of the Promotional Mix
Advertising
Advertising
Direct Marketing
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10. © 2005 McGraw-Hill Ryerson Limited
Direct Marketing
Communication directly with target consumers to generate a response or transaction.
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11. Direct Marketing is Part of IMC
Mail
Direct
Mail
Internet
Sales
Direct
Response
Advertising
Direct
Response
Advertising
Direct Marketing
Shopping
Channels
Shopping
Channels
Telemarketing
Telemarketing
Cataloging
Catalogs
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12. Bose Uses Direct Response Advertising
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13. Basic Elements of the Promotional Mix
Advertising
Advertising
Direct Marketing
Direct Marketing
Interactive/
Internet Marketing
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14. © 2005 McGraw-Hill Ryerson Limited
Internet Marketing
Interactive media allow two-way communication.
Users can participate in and modify the form and content of information they receive.
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15. Using the Internet as an IMC Tool
Obtains Customer Database Information
Educates or Informs Customers
Communicates and Interacts With Buyers
A Persuasive Advertising Medium
Builds and Maintains Customer Relationships
Provides Customer Service and Support
A Sales Tool or an Actual Sales Vehicle
Educates or Informs Customers
A Persuasive Advertising Medium
A Sales Tool or an Actual Sales Vehicle
Relation to text This slide relates t material on pp which discusses interactive marketing and the Internet as IMC tools.
Summary Overview The rapid changes in technology have led to dramatic growth of communications through interactive media, particularly the Internet. This communication medium is unique in that it allows for the back-and-forth flow of information in real time. Customers can perform a variety of functions on the Internet such as receive and alter information and images, make inquires, respond to questions, and, of course, make purchases. The Internet has changed the ways companies communicate to their customers as companies and organizations of all sizes have developed websites to promote their products and services.
Use of this slide This slide can be used to show that the Internet has changed the way companies communicate with their customers. Because of its interactive nature, it is a very effective way to communicate with customers. Actually, it is a medium that can be used to execute all elements of the promotional mix. In addition to advertising, companies can offer sales promotion incentives such as coupons or contests, do direct marketing, and execute public relations, and personal selling functions via the Internet.
Obtains Customer Database Information
Communicates and Interacts With Buyers
Provides Customer Service and Support
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16. American Airlines Encourages Customers to Do It All Online
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17. Basic Elements of the Promotional Mix
Advertising
Advertising
Direct Marketing
Direct Marketing
Interactive/
Internet Marketing
Interactive/
Internet Marketing
Sales Promotion
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Sales Promotion
Activities providing extra value or incentive to sales force or consumer.
Activities can be consumer-oriented or trade-oriented.
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19. Sales Promotion Tools Consumer-oriented Trade-oriented Coupons Samples
Allowances
Premiums
POP Displays
Contests/Sweepstakes
Training Programs
Refunds/Rebates
Bonus Packs
Trade Shows
Loyalty Programs
Coop Advertising
Events
Consumer-oriented
For end-users
Trade-oriented
For resellers
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20. Various Uses of Sales Promotion
Introduce New Products
Introduce New Products
Get Existing Customers to Buy More
Get Existing Customers to Buy More
Combat Competition
Attract New Customers
Attract New Customers
Sales
Promotion
Enhance Personal Selling
Enhance Personal Selling
Maintain Sales In Off Season
Maintain Sales In Off Season
Tie In Advertising & Personal Selling
Increase Retail Inventories
Tie In Advertising & Personal Selling
Increase Retail Inventories
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21. Basic Elements of the Promotional Mix
Advertising
Advertising
Direct Marketing
Direct Marketing
Interactive/
Internet Marketing
Interactive/
Internet Marketing
Sales Promotion
Sales Promotion
Publicity/Public
Relations
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22. © 2005 McGraw-Hill Ryerson Limited
Public Relations
Evaluating public attitudes, identifying policies and procedures of individuals or organizations, and executing a program of action to gain public understanding and acceptance.
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Publicity
Non-personal communications regarding an organization, product, service, or idea.
Idea reaches public in a form not directly paid for by the company.
More credible to consumers than other forms of promotion.
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24. © 2005 McGraw-Hill Ryerson Limited
Publicity Vehicles
Feature
Articles
Feature
Articles
News
Releases
News
Releases
Interviews
Interviews
Publicity Vehicles
Press
Conferences
Special
Events
Special
Events
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25. Advertising Versus Publicity
Factor
Advertising
Publicity
Control
Great
Little
Credibility
Lower
Higher
Reach
Measurable
Undetermined
Frequency
Schedulable
Uncontrollable
Cost
High/Specific
Low/Unspecified
Flexibility
High
Low
Timing
Specifiable
Tentative
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26. Public Relations Tools
Publicity
Vehicles
Publicity
Vehicles
Special
Publications
Special
Publications
Community
Activities
Community
Activities
Corporate Advertising
Corporate Advertising
Cause-related Marketing
Cause-related Marketing
Public Affairs
Activities
Public Affairs
Activities
Special Event
Sponsorship
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27. DuPont Uses Public Relations to Enhance Its Corporate Image
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28. Basic Elements of the Promotional Mix
Advertising
Advertising
Direct Marketing
Direct Marketing
Interactive/
Internet Marketing
Interactive/
Internet Marketing
Sales Promotion
Sales Promotion
Publicity/Public
Relations
Publicity/Public
Relations
Personal Selling
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29. © 2005 McGraw-Hill Ryerson Limited
Personal Selling
Person-to-person communication.
Seller encourages prospective buyers to purchase company’s product/service or to act on an idea.
Direct contact between buyer and seller gives communication flexibility to marketer.
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30. Participants in the Promotional Process
Figure 1-3
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31. Integrated Marketing Communications
IMC coordinates various promotional elements and marketing activities which communicate with a firm’s customers to provide clarity, consistency, and maximum communications impact.
Evolved as companies realized the need for strategic integration of promotional tools.
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32. Traditional Approach to Marketing Communications
Publicity
Point of
Purchase
Sales
Promotion
Media
Adver-
tising
Packaging
Special
Events
Relation to text This slide relates to material on pp of the text.
Summary Overview This slide shows the traditional approach to advertising and promotion where many of the marketing and promotional functions were planned and managed separately with different budgets, different views of the market, and different goals and objectives.
Many of the marketing activities such as package design, sales promotion, and direct marketing services were viewed as ancillary services and handled on a project basis rather than integrating them into the IMC program.
Use of this slide This slide can be used to show the traditional approach to marketing communications that lacks coordination and consistency. The disconnected puzzle pieces are designed to demonstrate how traditional approaches to marketing communications often viewed the various IMC tools as separate pieces of the puzzle rather than having them all work together.
Public
Relations
Direct
Response
Interactive
Marketing
Direct
Marketing
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33. Contemporary IMC Approach
Packaging
Sales
Promotion
Direct
Response
Media
Adver-
tising
Point of
Purchase
Public
Relations
Publicity
Interactive
Marketing
Direct
Marketing
Special
Events
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34. Reasons for the Growth of IMC
Planning Efficiency and Effectiveness
Consumer Adoption of Technology and Media
Innovative Marketing Practices
Shifting of marketing dollars
Growth of the Internet
Movement from advertising focus
Growth of database marketing
Shift in power
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35. © 2005 McGraw-Hill Ryerson Limited
Importance of IMC
Consumer’s Point of View
IMC helps link elements of promotional campaign to clearly and accurately represent the brand.
Relationship Marketing
Allows marketers to create, maintain, or enhance long-term relationships with customers or stakeholders.
More cost-effective to retain customers than acquire new ones.
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36. Dell Focuses on Building a Relationship With Customers
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37. © 2005 McGraw-Hill Ryerson Limited
A Broader View of IMC
IMC can be expanded to consider all sources of brand or company contact by customer.
A total marketing communications strategy recognizes how ALL marketing activities communicate with customers.
Everything the company says and does needs to communicate a common theme.
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38. © 2005 McGraw-Hill Ryerson Limited
IMC and Branding
2003 Brand Value
(Billions of Dollars)
Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.
1. Coca-Cola $70.5
2. Microsoft $65.1
3. IBM $51.8
4. GE $42.3
5. Intel $31.1
6. Nokia $29.4
7. Disney $28.0
8. McDonald’s $24.7
9. Marlboro $22.2
10. Mercedes $21.4
IMC plays a major role in the process of developing and sustaining brand identity and equity.
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39. Communication Role of Product Decisions
Product planning involves portraying the product as a bundle of benefits for consumers.
Product Symbolism
What a product or brand means to consumers.
What consumers experience by purchasing or using the product.
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Product Symbolism
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Brand Equity
Added value resulting from product’s image, customer attachment to product, and impressions of product differentiation.
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42. Packaging is More Than a Container
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43. Communication Role of Price Decisions
Economic cost to consumers for all product benefits combined.
Advertising and promotion reinforce consumer’s belief that product’s benefits or qualities accurately indicates the price decisions.
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44. Communication Role of Distribution Decisions
Marketing Channels
Interdependent organizations involved in making product or service available.
Distribution strategy should take into account the communication objectives – has an impact on IMC program.
What messages are conveyed by selling a product at Holt Renfrew instead of Wal-Mart?
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45. Promotional Management
“Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.”
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46. Promotional Management: Melitta Coffee Campaign
Figure 1-5
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47. © 2005 McGraw-Hill Ryerson Limited
Review the IMC Plan
1. A detailed situation analysis
1. A detailed situation analysis
2. Specific marketing objectives
2. Specific marketing objectives
3. A marketing strategy and program
3. A marketing strategy and program
4. A program for implementing the strategy
4. A program for implementing the strategy
5. A process for monitoring and evaluating performance
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48. IMC Planning Model Promotional Program Situation Analysis
Analysis of the Communications Process
Budget Determination
Develop Integrated Marketing Communications Programs
Review of Marketing Plan
Advertising
Sales
Promotion
PR/
Publicity
Personal
Selling
Direct
Marketing
Objectives
Message
Strategy
Integration & Implementation of Marketing Communications Strategies
Monitor, Evaluate & Control Promotional Program
Internet/
Interactive
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