communication process

An Introduction to Integrated Marketing Communications

An Introduction to Integrated Marketing Communications

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

What is Marketing?

Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization.

Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization.

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

ValueValue

Relationship marketingRelationship marketing

Mass customizationMass customization

Customer relationship management (CRM)

Customer relationship management (CRM)

ValueValue

Relationship marketingRelationship marketing

Mass customizationMass customization

Coordinated Marketing Mix Elements Build Image

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Point ofpurchase

Publicity

Publicrelations

Directmarketing

Interactivemarketing

Specialevents

Packaging

Salespromotion

Directresponse

Traditional Approach to Marketing Communications

MediaAdver-tising

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Contemporary IMC Approach

Point ofpurchase

Publicity

Interactivemarketing

Publicrelations

Directmarketing

Specialevents

PackagingSales

promotionDirect

response

MediaAdver-tising

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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.

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.

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The goal of IMC is to generate short-term financial returns and build long-term brand value.

The goal of IMC is to generate short-term financial returns and build long-term brand value.

Demand for accountabilityDemand for accountabilityDemand for accountability and Measurement of Outcomes

Demand for accountability and Measurement of Outcomes

Recognized as a business processRecognized as a business process

Importance of relevant audienceImportance of relevant audience

Recognized as a business processRecognized as a business process

Multiple relevant audiencesMultiple relevant audiences

A Contemporary Perspective of IMC

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

IMCIMC

Traditional compensationTraditional compensation Performance-based compensation Performance-based compensation Traditional compensationTraditional compensation Performance-based compensation Performance-based compensation

Media advertisingMedia advertising Multiple forms of communicationMultiple forms of communication

Mass mediaMass media Specialized mediaSpecialized media

Manufacturer dominanceManufacturer dominance Retailer dominanceRetailer dominance

General focusGeneral focus Data-based marketingData-based marketing

Low agency accountabilityLow agency accountability Greater agency accountabilityGreater agency accountability

Limited Internet availabilityLimited Internet availability Widespread Internet availabilityWidespread Internet availability

Media advertisingMedia advertising Multiple forms of communicationMultiple forms of communication

Mass mediaMass media Specialized mediaSpecialized media

Manufacturer dominanceManufacturer dominance Retailer dominanceRetailer dominance

General focusGeneral focus Data-based marketingData-based marketing

Low agency accountabilityLow agency accountability Greater agency accountabilityGreater agency accountability

Reasons for the Growing Importance of IMC

From Toward

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

IMC and Branding

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.

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. IMC plays a major role

in the process of developing and sustaining brand identity and equity.

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

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

AdvertisingAdvertising

Direct MarketingDirect Marketing

Interactive/Internet Marketing

Interactive/Internet Marketing

Sales PromotionSales Promotion

Publicity/PublicRelations

Publicity/PublicRelations

Personal SellingPersonal Selling

AdvertisingAdvertising

Direct MarketingDirect Marketing

Interactive/Internet Marketing

Interactive/Internet Marketing

Sales PromotionSales Promotion

Publicity/PublicRelations

Publicity/PublicRelations

Basic Elements of the Promotional Mix

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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

Classifications of Advertising

Consumers

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

DirectResponse

Advertising

DirectResponse

Advertising

DirectResponse

Advertising

DirectResponse

Advertising

DirectMail

DirectMail

CatalogsCatalogs

TelemarketingTelemarketing

InternetSales

InternetSales

ShoppingChannelsShoppingChannels

DirectMail

DirectMail

TelemarketingTelemarketing

CatalogsCatalogs

ShoppingChannelsShoppingChannels

Direct Marketing is Part of IMC

DirectMarketing

DirectMarketing

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Builds and maintains customer

relationships

Builds and maintains customer

relationships

Obtains customer database

information

Obtains customer database

information

Communicates and interacts with buyers

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 persuasive advertising

medium

A sales tool or an actual sales vehicle

A sales tool or an actual sales vehicle

Obtains customer database

information

Obtains customer database

information

Communicates and interacts with buyers

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 persuasive advertising

medium

A sales tool or an actual sales vehicle

A sales tool or an actual sales vehicle

Using the Internet as an IMC Tool

TheInternet

TheInternet

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Consumer-oriented

• [For end-users]

• Trade-oriented

• [For resellers]

Sales Promotion Tools

EventsEvents

Loyalty ProgramsLoyalty Programs

Bonus Packs Bonus Packs

Refunds/Rebates Refunds/Rebates

Contests/SweepstakesContests/Sweepstakes

PremiumsPremiums

SamplesSamples

CouponsCoupons

CoopAdvertising

CoopAdvertising

TradeShowsTradeShows

TrainingProgramsTraining

Programs

POP DisplaysPOP Displays

TradeAllowances

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Introduce new products

Introduce new products

Get existing customers to buy

more

Get existing customers to buy

more

Attract new customers

Attract new customers

Maintain sales in off season

Maintain sales in off season

Increase retail inventories

Increase retail inventories

Tie in advertising & personal

selling

Tie in advertising & personal

selling

Enhance personal selling

Enhance personal selling

Combat competition

Combat competition

Introduce new products

Introduce new products

Get existing customers to buy

more

Get existing customers to buy

more

Attract new customers

Attract new customers

Maintain sales in off season

Maintain sales in off season

Increase retail inventories

Increase retail inventories

Tie in advertising & personal

selling

Tie in advertising & personal

selling

Enhance personal selling

Enhance personal selling

Various Uses of Sales Promotion

SalesPromotion

SalesPromotion

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

InterviewsInterviewsInterviews Interviews

FeatureArticlesFeatureArticles

SpecialEventsSpecialEvents

PressConferences

PressConferences

NewsReleases

NewsReleases

FeatureArticlesFeatureArticles

SpecialEventsSpecialEvents

NewsReleases

NewsReleases

Publicity Vehicles

PublicityVehiclesPublicityVehicles

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Corporate AdvertisingCorporate

Advertising Cause-related

MarketingCause-related

Marketing

PublicityVehicles

CommunityActivities

Public AffairsActivities

SpecialPublications

Special EventSponsorship

PublicityVehicles

CommunityActivities

Public AffairsActivities

SpecialPublications

Public Relations Tools

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

IMC Audience Contact Tools

Target AudienceTarget Audience

Broadcast media

(TV/radio)

Broadcast media

(TV/radio)

Print media (newspapers,

magazines)

Print media (newspapers,

magazines)

Public Relations/publicity

Public Relations/publicity

Internet/interactiveInternet/

interactive

Directmarketing

Directmarketing

Sales Promotion

Sales Promotion

Product placements

(TV and movies)

Product placements

(TV and movies)

Events and sponsorshipEvents and sponsorship

Word-of-mouth

Word-of-mouth

Point-of-purchase (displays,

packaging)

Point-of-purchase (displays,

packaging)

Personal selling

Personal selling

Out-of-home media

Out-of-home media

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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

The Marketing Plan

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Integrated Marketing Communications 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

Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program

Internet/interactive

Internet/interactiveobjectives

Internet/interactivestrategy

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin