Presentation on theme: "Chapter 01 An Introduction to Integrated Marketing Communications."— Presentation transcript:
Chapter 01 An Introduction to Integrated Marketing Communications
Learning Objectives To examine the promotional function and the growing importance of advertising and other promotional elements play in the marketing programs of domestic and foreign companies. To introduce the concept of integrated marketing communications (IMC) and consider how it has evolved. To examine the reasons for the increasing importance of the IMC perspective in planning and executing advertising and promotional programs. To introduce the various elements of the promotional mix and consider their role in an IMC program. To examine how various marketing and promotional elements must be coordinated to communicate effectively. To introduce a model of the IMC planning process and examine the steps in developing a marketing communications program.
What is marketing? Definition of marketing: the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. American Marketing Association (AMA)
What is Marketing? An organizational function Processes for creating, communicating, and delivering value to customers Managing customer relationships in ways that benefit the organization and its stakeholders Value Relationship marketing Mass customization Customer relationship management (CRM)
Marketing Mix The four Ps Product Price Place Promotion
Promotional Mix The basic tools used to accomplish an organizations communication objectives. Advertising Direct marketing Internet marketing Sales promotion Publicity/public relations Personal selling
Why IMC Increasingly difficult to target audiences & communicate effectively Consumers no longer passive recipients They demand more than information From a myriad of sources
Integrated Marketing Approach Traditional mass media – Television, radio, magazines, newspapers, billboards – Now drive consumers to Web sites Online strategies – Provide detailed information – Be experiential, entertaining, interactive – MySpace, YouTube, Facebook, wireless mobile media devices, e-mail
Traditional Marketing Approach Point of purchase Interactive marketing Special events Sales promotion Public relations Media Adver- tising Packaging Publicity Direct response Direct marketing
Defining IMC IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences. The goal of IMC is to generate short-term financial returns and build long-term brand value.
Contemporary Perspective of IMC – Recognized as a business process – rather than just tactical integration of various communication activities. – Importance of relevant audiences – externally these include customers, prospects, suppliers, investors, interest groups, and the general public. Employees are an example of an internal audience. – Demand for accountability – increased emphasis on the outcomes of marketing communication programs.
Growing Importance of IMC Strategic integration of communications functions – Avoids duplication – Synergy among promotional tools – More efficient and effective marketing Rapidly changing environment – Consumers – Technology – Media
The Most Valuable Brands in the World RankBrand Brand Value (Billions) 1Coca-Cola$65.32 2Microsoft 58.71 3IBM 57.09 4General Electric 51.57 5Nokia 33.70 6Toyota 32.07 7Intel 30.95 8McDonalds 29.39 9Disney 29.21 10Mercedes-Benz 23.57
Model of the IMC Planning Process Analysis of Promotional program situation Review of marketing plan Integrate and implement marketing communications strategies Monitor, evaluate and control IMC Program Develop objectives and strategy for each Develop message, media strategy, and tactics Analysis of communications process Budget determination Sales promotion PR/ publicity Personal selling Direct marketing Internet/ interactive Advertising Develop integrated marketing communications program
Test Your Knowledge Why are marketers decreasing the use of mass media advertising and increasing the use of integrated marketing communications? A) The mass market has become fragmented. B)New technologies have given consumers greater control over the communication process. C)Use of the Internet and electronic commerce is growing. D)New global markets are emerging. E)All of the above.