Chap01 an Introduction to Integrated Marketing Communications 1225868228281783 9

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    An Introduction to

    Integrated Marketing

    Communications

    An Introduction to

    Integrated MarketingCommunications

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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    The Growth of Advertising and Promotion

    Expenditure in Billions of Dollars

    $0 $50 $100 $150 $200 $250 $300

    Advertising

    Outside U.S.

    U.S. SalesPromotion

    U.S. Advertising

    2002

    1980

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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    IMCAudience Contact Points

    MarketingCommunicationsAudience

    MarketingCommunications

    Audience

    Point ofPurchase

    Point ofPurchase Publicity

    Publicity PublicRelations

    PublicRelations Packaging

    Packaging

    DirectResponse

    DirectResponse

    Sales

    Promotion

    Sales

    Promotion

    Events

    EventsOutdoor

    OutdoorBroadcast

    Media

    Broadcast

    Media

    Print

    Media

    Print

    Media

    Direct Mail

    Direct Mail

    Internet/Interactive

    Media

    Internet/Interactive

    Media

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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    IMC Principles Extend Worldwide

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    Point of

    Purchase

    Publicity

    PublicRelations

    Direct

    Marketing

    InteractiveMarketing

    SpecialEvents

    Packaging

    SalesPromotion

    DirectResponse

    Traditional Approach to MarketingCommunications

    Media

    Adver -t i s i ng

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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    Contemporary IMC Approach

    Point ofPurchase

    Publicity

    InteractiveMarketing

    PublicRelations

    DirectMarketing

    SpecialEvents

    PackagingSales

    PromotionDirect

    Response

    MediaAdver -t i s i ng

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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    The US Army Uses TV Advertising asPart of Its IMC Program

    *Click outside of the video screen to advance to the next slide

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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    Traditional CompensationTraditional Compensation Performance Based CompensationPerformance Based CompensationTraditional CompensationTraditional Compensation Performance Based CompensationPerformance 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

    Marketing Revolution and Shifting Tides

    Fr om Tow ar d

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    ll ildi l i hi

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    Dell Focuses on Building a RelationshipWith Customers

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    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

    consumers mind.

    Brand Identity is a

    combination of factors:

    Name, logo, symbols,

    design, packaging,

    product or service

    performance, and image

    or associations in theconsumers mind.

    20 03 Brand Val ue( B i l l i ons o f Do l l ar s)

    1. Coca-Cola $70.5

    2. Microsoft $65.1

    3. IBM $51.8

    4. GE $42.3

    5. Intel $31.1

    6. Nokia $29.4

    7. Disney $28.08. McDonalds $24.7

    9. Marlboro $22.2

    10. Mercedes $21.4

    IMCplays a major rolein the process of

    developing and

    sustaining brand

    identity and equity.

    IMCplays a major role

    in the process of

    developing and

    sustaining brand

    identity and equity.

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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    Intels Advertising Helps Build Brand Equity

    *Click outside of the video screen to advance to the next slide

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    C di t d M k ti Mi

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    Coordinated Marketing MixElements Build Image

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    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

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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    Primary vs. SelectiveDemand Advertising

    Primary vs. SelectiveDemand AdvertisingPrimary vs. SelectiveDemand Advertising

    Primary vs. SelectiveDemand Advertising

    Business-to-Business AdvertisingBusiness-to-Business Advertising

    Organ iza t i ons

    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

    Con su m er s

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Great Advertising Can Strike a

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    Great Advertising Can Strike aResponsive Chord with Consumers

    *Click outside of the video screen to advance to the next slide

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    l f d i i

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    An Example of B-to-B Advertising

    + 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Di t M k ti i P t f IMC

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    DirectResponse

    Advertising

    DirectResponse

    Advertising

    DirectResponse

    Advertising

    DirectResponse

    Advertising

    DirectMail

    DirectMail

    CatalogingCataloging

    TelemarketingTelemarketing

    InternetSales

    InternetSales

    ShoppingChannels

    Shopping

    Channels

    DirectMail

    DirectMail

    TelemarketingTelemarketing

    CatalogsCatalogs

    ShoppingChannels

    Shopping

    Channels

    Direct Marketing is Part of IMC

    DirectMa rk e t i n g

    Di rec tMa rk e t i n g

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    B U Di t R Ad ti i

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    Bose Uses Direct Response Advertising

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    U i th I t t IMC T l

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    Builds andMaintains

    CustomerRelationships

    Builds andMaintainsCustomer

    Relationships

    ObtainsCustomer

    DatabaseInformation

    ObtainsCustomerDatabase

    Information

    Communicatesand Interacts

    With Buyers

    Communicatesand Interacts

    With Buyers

    ProvidesCustomer

    Service andSupport

    ProvidesCustomer

    Service andSupport

    Educates orInforms

    Customers

    Educates orInforms

    Customers

    A PersuasiveAdvertising

    Medium

    A PersuasiveAdvertising

    Medium

    A Sales Toolor an ActualSales Vehicle

    A Sales Toolor an ActualSales Vehicle

    ObtainsCustomer

    DatabaseInformation

    ObtainsCustomerDatabase

    Information

    Communicatesand Interacts

    With Buyers

    Communicatesand Interacts

    With Buyers

    ProvidesCustomer

    Service andSupport

    ProvidesCustomer

    Service andSupport

    Educates orInforms

    Customers

    Educates orInforms

    Customers

    A PersuasiveAdvertising

    Medium

    A PersuasiveAdvertising

    Medium

    A Sales Toolor an ActualSales Vehicle

    A Sales Toolor an ActualSales Vehicle

    Using the Internet as an IMC Tool

    The

    Internet

    The

    Internet

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    American Airlines Encourages

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    American Airlines EncouragesCustomers to Do It All Online

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    Sales Promotion Tools

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    Con su m er -o r i en ted

    [ For en d- u sers ]

    Trade-o r i en ted

    [ For r esel ler s]

    Sales Promotion Tools

    EventsEvents

    Loyalty ProgramsLoyalty Programs

    Bonus PacksBonus Packs

    Refunds/RebatesRefunds/Rebates

    Contests/SweepstakesContests/SweepstakesPremiumsPremiums

    SamplesSamples

    CouponsCoupons

    Coop

    Advertising

    Coop

    Advertising

    TradeShowsTradeShows

    TrainingProgramsTrainingPrograms

    POP DisplaysPOP Displays

    TradeAllowances

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Various Uses of Sales Promotion

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    Introduce NewProducts

    Introduce NewProducts

    Get ExistingCustomers to

    Buy More

    Get ExistingCustomers to

    Buy More

    Attract NewCustomers

    Attract NewCustomers

    Maintain Sales InOff Season

    Maintain Sales InOff Season

    Increase Retail

    Inventories

    Increase Retail

    Inventories

    Tie InAdvertising &

    Personal Selling

    Tie InAdvertising &

    Personal Selling

    EnhancePersonal Selling

    EnhancePersonal Selling

    CombatCompetition

    CombatCompetition

    Introduce NewProducts

    Introduce NewProducts

    Get ExistingCustomers to

    Buy More

    Get ExistingCustomers to

    Buy More

    Attract NewCustomers

    Attract NewCustomers

    Maintain Sales InOff Season

    Maintain Sales InOff Season

    Increase Retail

    Inventories

    Increase Retail

    Inventories

    Tie InAdvertising &

    Personal Selling

    Tie InAdvertising &

    Personal Selling

    EnhancePersonal Selling

    EnhancePersonal Selling

    Various Uses of Sales Promotion

    SalesPr om ot ion

    SalesPr om ot ion

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Advertising Versus Publicity

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    Advertising Versus Publicity

    Adver t i s i ng Adve r t i s i ng Pub l i c i t y Pub l i c i t y

    TentativeTentative

    LowLow

    Low/UnspecifiedLow/Unspecified

    UncontrollableUncontrollable

    GreatGreat

    LowerLower

    MeasurableMeasurable

    SchedulableSchedulable

    High/SpecificHigh/Specific

    HighHigh

    SpecifiableSpecifiable

    UndeterminedUndetermined

    HigherHigher

    LittleLittle

    Factor Factor

    ControlControl

    CredibilityCredibility

    ReachReach

    FrequencyFrequency

    CostCost

    FlexibilityFlexibility

    TimingTiming

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Publicity Vehicles

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    InterviewsInterviewsInterviewsInterviews

    FeatureArticles

    FeatureArticles

    Special

    Events

    Special

    Events

    Press

    Conferences

    Press

    Conferences

    News

    Releases

    News

    Releases

    FeatureArticles

    FeatureArticles

    Special

    Events

    Special

    Events

    News

    Releases

    News

    Releases

    Publicity Vehicles

    Pub l i c i t yVehic lesPub l i c i t yVehic les

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Public Relations Tools

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    Corpora teAdve r t i s i ngCorpora teAdve r t i s i ng Cause- re la tedM ark e t i ngCause- re la tedM ark e t i ng

    Pub l i c i t yVehic les

    Com m u n it yAc t i v i t i es

    Pu b l i c Af f a i rs

    Ac t i v i t i es

    SpecialPub l i ca t ions

    Sp ecia l Ev en t

    Sponsorsh ip

    Pub l i c i t yVehic les

    Com m u n it yAc t i v i t i es

    Pu b l i c Af f a i rs

    Ac t i v i t i es

    SpecialPub l i ca t ions

    Public Relations Tools

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    DuPont Uses Advertising to Enhance

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    gIts Corporate Image

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    Integrated Marketing Communications Planning Model

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    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

    Advertising

    Sales

    Promotion

    PR/

    Publicity

    Personal

    Selling

    Direct

    Marketing

    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

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    The Marketing Plan

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    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

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin