1 Integrated Marketing Communications
Jan 20, 2015
1Integrated Marketing Communications
© 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.
© 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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Basic Elements of the Promotional Mix
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
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Basic Elements of the Promotional Mix
AdvertisingAdvertising
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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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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
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An Example of “B-to-B” Advertising
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Basic Elements of the Promotional Mix
AdvertisingAdvertising
Direct MarketingDirect Marketing
AdvertisingAdvertising
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Direct Marketing
• Communication directly with target consumers to generate a response or transaction.
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Direct Marketing is Part of IMC
DirectResponse
Advertising
DirectResponse
Advertising
DirectResponse
Advertising
DirectResponse
Advertising
DirectMail
DirectMail
CatalogingCataloging
TelemarketingTelemarketing
InternetSales
InternetSales
ShoppingChannelsShoppingChannels
DirectMail
DirectMail
TelemarketingTelemarketing
CatalogsCatalogs
ShoppingChannelsShoppingChannels
DirectMarketing
DirectMarketing
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Bose Uses Direct Response Advertising
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Basic Elements of the Promotional Mix
AdvertisingAdvertising
Direct MarketingDirect Marketing
Interactive/Internet Marketing
Interactive/Internet Marketing
AdvertisingAdvertising
Direct MarketingDirect Marketing
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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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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
TheInternet
TheInternet
Using the Internet as an IMC Tool
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American Airlines Encourages Customers to Do It All Online
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Basic Elements of the Promotional Mix
AdvertisingAdvertising
Direct MarketingDirect Marketing
Interactive/Internet Marketing
Interactive/Internet Marketing
Sales PromotionSales Promotion
AdvertisingAdvertising
Direct MarketingDirect Marketing
Interactive/Internet Marketing
Interactive/Internet Marketing
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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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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
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Various Uses of Sales Promotion
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
SalesPromotion
SalesPromotion
© 2005 McGraw-Hill Ryerson Limited
Basic Elements of the Promotional Mix
AdvertisingAdvertising
Direct MarketingDirect Marketing
Interactive/Internet Marketing
Interactive/Internet Marketing
Sales PromotionSales Promotion
Publicity/PublicRelations
Publicity/PublicRelations
AdvertisingAdvertising
Direct MarketingDirect Marketing
Interactive/Internet Marketing
Interactive/Internet Marketing
Sales PromotionSales Promotion
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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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Publicity Vehicles
InterviewsInterviewsInterviews Interviews
FeatureArticlesFeatureArticles
SpecialEventsSpecialEvents
PressConferences
PressConferences
NewsReleases
NewsReleases
FeatureArticlesFeatureArticles
SpecialEventsSpecialEvents
NewsReleases
NewsReleases Publicity
VehiclesPublicityVehicles
© 2005 McGraw-Hill Ryerson Limited
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
© 2005 McGraw-Hill Ryerson Limited
Public Relations Tools
Corporate AdvertisingCorporate
Advertising Cause-related
MarketingCause-related
Marketing
PublicityVehicles
CommunityActivities
Public AffairsActivities
SpecialPublications
Special EventSponsorship
PublicityVehicles
CommunityActivities
Public AffairsActivities
SpecialPublications
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DuPont Uses Public Relations to Enhance Its Corporate Image
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Basic Elements of the Promotional Mix
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
© 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.
© 2005 McGraw-Hill Ryerson Limited
Participants in the Promotional Process
Figure 1-3
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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.
© 2005 McGraw-Hill Ryerson Limited
Point ofPurchase
Publicity
PublicRelations
DirectMarketing
InteractiveMarketing
SpecialEvents
Packaging
SalesPromotion
DirectResponse
MediaAdver-tising
Traditional Approach to Marketing Communications
© 2005 McGraw-Hill Ryerson Limited
Contemporary IMC Approach
Point ofPurchase
Publicity
InteractiveMarketing
PublicRelations
DirectMarketing
SpecialEvents
PackagingSales
PromotionDirect
Response
MediaAdver-tising
© 2005 McGraw-Hill Ryerson Limited
Reasons for the Growth of IMC
Planning Efficiency and Effectiveness
Planning Efficiency and Effectiveness
Consumer Adoption of Technology and MediaConsumer Adoption of Technology and Media
Innovative Marketing Practices
Innovative Marketing Practices
Growth of the InternetGrowth of the Internet
Growth of database marketing
Growth of database marketing
Shift in powerShift in power
Movement from advertising focusMovement from advertising focus
Shifting of marketing dollars
Shifting of marketing dollars
© 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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Dell Focuses on Building a Relationship With Customers
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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.
© 2005 McGraw-Hill Ryerson Limited
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.
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
$21.4
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.
IMC and Branding
© 2005 McGraw-Hill Ryerson Limited
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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Packaging is More Than a Container
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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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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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Promotional Management
• “Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.”
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Promotional Management: Melitta Coffee Campaign
Figure 1-5
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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
© 2005 McGraw-Hill Ryerson Limited
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