Integrated Marketing Communications

1Integrated Marketing Communications

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.

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.”

Basic Elements of the Promotional Mix

AdvertisingAdvertising

Direct MarketingDirect Marketing

Interactive/Internet Marketing

Sales PromotionSales Promotion

Publicity/PublicRelations

Personal SellingPersonal Selling

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.

Classifications of Advertising

Primary vs. Selective Demand Advertising

Primary vs. Selective Demand AdvertisingPrimary vs. Selective Demand Advertising

Primary vs. Selective Demand Advertising

Business-to-Business AdvertisingBusiness-to-Business Advertising

Organizations

National AdvertisingNational Advertising

Retail/Local AdvertisingRetail/Local Advertising

Professional AdvertisingProfessional Advertising

Trade AdvertisingTrade Advertising

National AdvertisingNational Advertising

Retail/Local AdvertisingRetail/Local Advertising

Business-to-Business AdvertisingBusiness-to-Business Advertising

Professional AdvertisingProfessional Advertising

Consumers

An Example of “B-to-B” Advertising

Direct Marketing

• Communication directly with target consumers to generate a response or transaction.

Direct Marketing is Part of IMC

DirectResponse

Advertising

DirectResponse

Advertising

DirectResponse

Advertising

DirectResponse

Advertising

DirectMail

CatalogingCataloging

TelemarketingTelemarketing

InternetSales

ShoppingChannelsShoppingChannels

DirectMail

TelemarketingTelemarketing

CatalogsCatalogs

ShoppingChannelsShoppingChannels

DirectMarketing

Bose Uses Direct Response Advertising

Internet Marketing

• Interactive media allow two-way communication.

• Users can participate in and modify the form and content of information they receive.

Builds and Maintains Customer

Relationships

Builds and Maintains Customer

Relationships

Obtains Customer Database

Information

Communicates and Interacts With Buyers

Provides Customer

Service and Support

Provides Customer

Service and Support

Educates or Informs

Customers

Educates or Informs

Customers

A Persuasive Advertising

Medium

A Sales Tool or an Actual Sales Vehicle

Information

Communicates and Interacts With Buyers

Provides Customer

Service and Support

Provides Customer

Service and Support

Educates or Informs

Customers

Educates or Informs

Customers

Medium

A Sales Tool or an Actual Sales Vehicle

TheInternet

Using the Internet as an IMC Tool

American Airlines Encourages Customers to Do It All Online

Sales Promotion

• Activities providing extra value or incentive to sales force or consumer.

• Activities can be consumer-oriented or trade-oriented.

Sales Promotion Tools

Consumer-orientedFor end-users

Trade-orientedFor resellers

Events

Loyalty Programs

Bonus Packs

Refunds/Rebates

Contests/Sweepstakes

Premiums

Samples

Coupons

CoopAdvertising

TradeShows

TrainingPrograms

POP Displays

TradeAllowances

Various Uses of Sales Promotion

Introduce New Products

Get Existing Customers to

Buy More

Attract New Customers

Maintain Sales In Off Season

Increase Retail Inventories

Tie In Advertising & Personal

Selling

Enhance Personal Selling

Combat Competition

Introduce New Products

Buy More

Attract New Customers

Maintain Sales In Off Season

Increase Retail Inventories

Selling

Enhance Personal Selling

SalesPromotion

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.

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.

Publicity Vehicles

InterviewsInterviewsInterviews Interviews

FeatureArticlesFeatureArticles

SpecialEventsSpecialEvents

PressConferences

NewsReleases

FeatureArticlesFeatureArticles

SpecialEventsSpecialEvents

NewsReleases

NewsReleases Publicity

VehiclesPublicityVehicles

Advertising Versus Publicity

AdvertisingAdvertising PublicityPublicity

TentativeTentative

LowLow

Low/Unspecified Low/Unspecified

Uncontrollable Uncontrollable

GreatGreat

LowerLower

Measurable Measurable

SchedulableSchedulable

High/Specific High/Specific

HighHigh

SpecifiableSpecifiable

UndeterminedUndetermined

HigherHigher

LittleLittle

FactorFactor

ControlControl

CredibilityCredibility

ReachReach

FrequencyFrequency

CostCost

FlexibilityFlexibility

TimingTiming

Public Relations Tools

Corporate AdvertisingCorporate

Advertising Cause-related

MarketingCause-related

Marketing

PublicityVehicles

CommunityActivities

Public AffairsActivities

SpecialPublications

Special EventSponsorship

PublicityVehicles

CommunityActivities

Public AffairsActivities

SpecialPublications

DuPont Uses Public Relations to Enhance Its Corporate Image

Personal SellingPersonal Selling

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.

Participants in the Promotional Process

Figure 1-3

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.

Point ofPurchase

Publicity

PublicRelations

DirectMarketing

InteractiveMarketing

SpecialEvents

Packaging

SalesPromotion

DirectResponse

MediaAdver-tising

Traditional Approach to Marketing Communications

Contemporary IMC Approach

Point ofPurchase

Publicity

InteractiveMarketing

PublicRelations

DirectMarketing

SpecialEvents

PackagingSales

PromotionDirect

Response

MediaAdver-tising

Reasons for the Growth of IMC

Planning Efficiency and Effectiveness

Consumer Adoption of Technology and MediaConsumer Adoption of Technology and Media

Innovative Marketing Practices

Growth of the InternetGrowth of the Internet

Growth of database marketing

Shift in powerShift in power

Movement from advertising focusMovement from advertising focus

Shifting of marketing dollars

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.

Dell Focuses on Building a Relationship With Customers

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.

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.

2003 Brand Value(Billions of Dollars)

1. Coca-Cola$70.5

2. Microsoft$65.1

3. IBM$51.8

4. GE $42.35. Intel

$31.16. Nokia

$29.47. Disney

$28.08. McDonald’s

$24.79. Marlboro

$22.210. Mercedes

IMC plays a major role in the process of developing and sustaining brand identity and equity.

IMC and Branding

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.

Product Symbolism

Brand Equity

• Added value resulting from product’s image, customer attachment to product, and impressions of product differentiation.

Packaging is More Than a Container

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.

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?

Promotional Management

• “Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.”

Promotional Management: Melitta Coffee Campaign

Figure 1-5

Review the IMC Plan

1. A detailed situation analysis1. A detailed situation analysis

2. Specific marketing objectives2. Specific marketing objectives

3. A marketing strategy and program3. A marketing strategy and program

4. A program for implementing the strategy4. A program for implementing the strategy

5. A process for monitoring and evaluating performance5. A process for monitoring and evaluating performance

1. A detailed situation analysis1. A detailed situation analysis

3. A marketing strategy and program3. A marketing strategy and program

4. A program for implementing the strategy4. A program for implementing the strategy

2. Specific marketing objectives2. Specific marketing objectives

IMC Planning Model

Promotional Program Situation Analysis

Analysis of the Communications Process

Budget Determination

Develop Integrated Marketing Communications Programs

Review of Marketing Plan

AdvertisingSales

PromotionPR/

PublicityPersonalSelling

DirectMarketing

AdvertisingObjectives

SalesPromotionObjectives

PR/Publicity

Objectives

PersonalSelling

Objectives

DirectMarketingObjectives

MessageStrategy

SalesPromotionStrategy

PR/PublicityStrategy

PersonalSelling

Strategy

DirectMarketingStrategy

Integration & Implementation of Marketing Communications Strategies

Monitor, Evaluate & Control Promotional Program

Internet/Interactive

Internet/InteractiveObjectives

Internet/InteractiveStrategy

Integrated Marketing Communications

mcgrawhill ryerson limited

sales toolinforms advertising

b advertising

various marketing

sales promotion activities

basic elements

direct response advertising

direct marketing communication

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