1. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 1 Overview of Integrated Marketing Communications

2. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Objectives After reading this chapter you should be able to: 1.Appreciate the practice of marketing communications and recognize the marcom tools used by practitioners. 2.Differentiate among the following terms: the marketing mix, communications, marketing communications, the promotional mix, and integrated marketing communications. 3.Describe the philosophy and practice of integrated marketing communications (IMC) and the five key features of IMC. 2

3. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Objectives (cont’d) 4.Recognize the activities involved in developing an integrated communications program. 5.Identify obstacles to implementing an IMC program. 6.Understand and appreciate the components contained in an integrative model of the marcom decision-making process. 3

4. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Pepsi Loot and Foursquare 4

5. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Examples of Successful Campaigns and Understanding Consumer Behavior Means-End Chaining: Tropicana OJ Commercials: 5 Attributes Consequences Values (the means) (the ends) 1.Drink Tropicana OJ quiet refreshment satisfaction/nutrition 2.Drink Enriched Tropicana OJ added calcium/ refreshment satisfaction/reduce osteoporosis

6. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing and the Marketing Concept Marketing (Kotler 1980): human activity directed at satisfying needs and wants through exchange processes. Is marketing = selling?? The idea of the marketing concept is to adapt the company’s offering to the needs and wants of the customer. 6

7. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exchange: An Important Part of Marketing For exchange to occur, there must be.... 1.Two parties and each party must... 2.have something of value to the other party, 3.be capable of communication and delivery, 4.be free to accept/reject the offer, and there must be 5.an agreement to terms. 7

8. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Communications and Marketing Communications Communications: the process where individuals share meaning and establish a commonness of thought. Marketing Communications: the collection of all elements of a firm’s marketing mix that facilitate exchange by establishing shared meaning with the firm’s customers. Marketing Communications -> B2B, B2C, non-profits Marketing Mix: specific collection of certain levels of elements of a brand’s 4Ps – product, price, place and promotion. 8

9. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 1.1: Social Media Venn Diagram 9

10. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 1.2: Elements of Promotional Mix 10

11. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Examples of the “Tools of Marcom” 11

12. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Promotion Management and Objectives of Promotion Promotion Management: coordination of promotional mix elements in setting objectives, establishing budgets, designing programs, evaluating performance, and taking corrective action. General Objectives of Promotion: 1.Inform 2.Persuade 3.Induce Action 12

13. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Branding Brand A name, term, sign, symbol, or design intended to identify the goods and services of one seller or groups of sellers and differentiate them from those of competition. Brand equity The goodwill that an established brand has built up over its existence. 13

14. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing Communications at the Brand Level 14 The key for brand communications is to differentiate one company’s offering from another’s A well-known and respected brand is an invaluable asset A successful brand can create barriers to entry for competitors Brand

15. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Integrated Marketing Communications Integrated Marketing Communications (IMC) The coordination of the promotional mix elements with each other and with other elements of the brand’s marketing mix such that all elements speak with one voice. 15

16. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Integration of Marketing Communications Why Not Always Integrated? Tradition of separate communication tools Influence of specialized outside suppliers Managerial parochialism Fear of budget cutbacks Loss of power and authority Resistance of outside suppliers to broadening their functions Skeptics who consider IMC to be a fad 16

17. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The payoff from IMC is that brand managers achieve: The integration of multiple communication tools and media yield more positive communication results than the tools used individually The Meaning of Synergy 17

18. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Five Key Features of IMC 18

19. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. IMC Feature #1: Start with Customer or Prospect Identify Marcom Program Goals Determine Best Way to Allocate Marketing Budget Media-Neutral Approach 19

20. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. IMC Feature #2: Use Any Form of Relevant Contact An example of a Touch Point, or 360° Marketing: Hershey Foods 20

21. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. IMC Feature #3: Achieve Synergy Multiple messages must speak with a single voice Takeaway: A brand’s positioning statement must: Present a clear idea of the brand in its target market’s mind Consistently deliver the same unified message across all media channels on all occasions. 21

22. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Build relationships (e.g., Harley Davidson) rather than engage in flings Costs 5-10x more to acquire a new customer than keep a current one Takeaway: Loyalty programs promote long-term relationships between customers and brands that lead to customer retention. Experiential marketing programs can create brand experiences that make positive and lasting impressions on customers. IMC Feature #4: Build Relationships 22

23. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. IMC Feature #5: Affect Behavior Don’t lose focus of the ultimate objective: Affect Behavior IMC must do more than just influence brand awareness or enhance consumer attitudes – the objective is to move people to action. 23

24. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Changes in Marketing Communication Practices Reduced dependence on mass media advertising. Increased reliance on highly targeted communication methods. Heightened demands on suppliers. Increased efforts to assess communications’ return on investment. 24

25. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Obstacles to Implementing IMC Few providers have the skills required to execute. Mass media campaigns easier than direct- to-customer. The real challenge is to make sure that tools are consistently executed. 25

26. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. SWOT Analysis Strengths Leverage Opportunities Threats Problems Weaknesses 26 Constraints Vulnerabilities Internal External

27. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 1.3: Making Brand-Level Marcom Decisions and Achieving Desired Outcomes 27

28. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Making Fundamental Marcom Decisions 28 Micromarketing: The customizing of products and communications to smaller segments (e.g., toothpaste).

29. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing Mix AMarketing Mix B One Marketing Mix Target Market Selection Strategies 29 Segment ASegment B All Markets Segment A Segment C 2. Differentiated Marketing 3. Concentrated Marketing 1. Undifferentiated Marketing

30. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marcom Implementation Decisions Mixing elements Creating messages Selecting media Establishing momentum 30

31. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marcom Outcomes 31

32. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Program Evaluation 32

33. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. A Concluding Mantra: All Marketing Communications Should be… 33 Directed to a Particular Target Market Undertaken to Accomplish the Objective within the Budget Constraint ClearlyPositioned Created to Achieve a Specific Objective