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An Introduction to Integrated
Marketing Communications

McGraw-Hill/Irwin

Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Its Googles World

The most powerful brand in the world

Its Googles World

Founded in 1998
Delivers relevant search results by
favoring pages linked to by other sites
Sells ads linked to search keywords
Annual revenue exceeds $10 billion

Keys to success
Simplicity
Speed
Accuracy

Google Adwords
Keyword-targeting advertising
Text ads at top or side of search results
Advertisers compete for top spot
Cost is per click (CPC)

Contextual ads
Appear on other relevant Web sites

Site-targeted
Generates sales and branding
Cost is per thousand impressions (CPM)

Google Rapidly Expanding


Beyond online search advertising
Automated purchase of radio ads
Magazine and newspaper ad-buying
YouTube
Google TV Ads
Partnership with Nielsen Media Research
New varieties of online ads

Rapidly Changing Media Environment


Increasingly difficult to target
audiences & communicate effectively
Consumers no longer passive recipients
They demand more than information
From a myriad of sources

Integrated Marketing Approach


Traditional mass media
Television, radio, magazines, newspapers,
billboards
Now drive consumers to Web sites

Online strategies
Provide detailed information
Be experiential, entertaining, interactive
MySpace, YouTube, Facebook, wireless
mobile media devices, e-mail

The New Look of Advertising

Interactive, Informative, Entertaining

Growth of Advertising and Promotion


Expenditure in Billions of Dollars

Advertising Outside
U.S.

2007
1980

U.S. Advertising

$0

$50

$100

$150

$200

$250

$300

$350

$400

What is Marketing?
An organizational
function
Processes for creating,
communicating, and
delivering value to
customers
Managing customer
relationships in ways
that benefit the
organization and its
stakeholders

Value
Value
Relationship
Relationship marketing
marketing
Mass
Mass customization
customization
Customer
Customer relationship
relationship
management
management (CRM)
(CRM)

The Scion Web Site

Consumers can now customize


the car they want to purchase

Marketing Mix
The four Ps
Product
Price
Place
Promotion

Coordinated Marketing Elements Build Image

Traditional Marketing Approach

Point of
purchase

Interactive
marketing

Special
events

Media
Advertising

Public
relations
Direct
marketing

Publicity

Sales
promotion

Packaging

Direct
response

Contemporary IMC Approach


Packaging

Sales
promotion

Point of
purchase
Publicity

Interactive
marketing

Media
Advertising

Direct
marketing

Direct
response

Public
relations

Special
events

Defining IMC
IMC
IMC isis aa strategic
strategic business
business
process
process used
used to
to plan,
plan, develop,
develop,
execute
execute and
and evaluate
evaluate coordinated,
coordinated,
measurable,
measurable, persuasive
persuasive brand
brand
communication
communication programs
programs with
with
consumers,
consumers, customers,
customers, prospects
prospects
employees
employees and
and other
other relevant
relevant
external
external and
and internal
internal audiences.
audiences.
The
The goal
goal of
of IMC
IMC isis to
to
generate
generate short-term
short-term
financial
financial returns
returns and
and build
build
long-term
long-term brand
brand value.
value.

Contemporary Perspective of IMC

Recognized
Recognized as
as aa business
business process
process

IMC
IMC

Importance
of
audience
Multiple
audiences
Importance
of relevant
relevant
audience
Multiple relevant
relevant
audiences
Demand
for
accountability
and
Demand
forfor
accountability
and
Demand
accountability
Demand
for
accountability
measurement
measurement of
of outcomes
outcomes

Test Your Knowledge


Why are marketers decreasing the use of mass media
advertising and increasing the use of integrated
marketing communications?
A) The mass market has become fragmented.
B) New technologies have given consumers
greater control over the communication
process.
C) Use of the Internet and electronic
commerce is growing.
D) New global markets are emerging.
E) All of the above.

Growing Importance of IMC


Strategic integration of
communications functions
Avoids duplication
Synergy among promotional tools
More efficient and effective marketing

Rapidly changing environment


Consumers
Technology
Media

Behind the Growing Importance of IMC


From

Toward

Media
Media advertising
advertising

Multiple
Multiple forms
forms of
of communication
communication

Mass
Mass media
media

Specialized
Specialized media
media

Manufacturer
Manufacturer dominance
dominance

Retailer
Retailer dominance
dominance

General
General focus
focus

Data-based
Data-based marketing
marketing

Low
Low agency
agency accountability
accountability

Greater
Greater agency
agency accountability
accountability

Traditional
Traditional compensation
compensation

Performance-based
Performance-based compensation
compensation

Limited
Limited Internet
Internet availability
availability

Widespread
Widespread Internet
Internet availability
availability

The Role of IMC in Branding


Brand identity is a combination of
Name
Logo
Symbols
Design
Packaging
Performance
Image or associations

IMC plays a major role


in developing and
sustaining brand
identity and equity

The Most Valuable Brands in the World

Rank

Brand

Brand Value
(Billions)

Coca-Cola

Microsoft

58.71

IBM

57.09

General Electric

51.57

Nokia

33.70

Toyota

32.07

Intel

30.95

McDonalds

29.39

Disney

29.21

Mercedes-Benz

23.57

10

$65.32

Finding New Ways to Build Brands


Consumers are driving the trend
They view brands as a form of
self-expression
They know more about brands and the
companies that make them
Cynicism about corporations is at an
all-time high
They seek and share information with
other consumers via the Internet

Finding New Ways to Build Brands


Get consumers involved
Apple Computer lets consumers test
products in store
Starbucks positions stores as a
community gathering place

Interaction can be the best marketing


MySpace
Facebook
Google

The Promotional Mix


Advertising
Advertising
Direct
Direct Marketing
Marketing
Interactive/
Interactive/
Internet
Internet Marketing
Marketing
Sales
Sales Promotion
Promotion
Publicity/Public
Publicity/Public
Relations
Relations
Personal
Personal Selling
Selling

Advertising
Paid forms of non-personal
communication
About an organization, product, service,
or idea by an identified sponsor
No feedback from audience
Important for products and services
aimed at mass consumer markets
Cost effective

The Most Common Forms of Advertising


National
National Advertising
Advertising
Retail/Local
Retail/Local Advertising
Advertising

Consumers

Primary
Primary vs.
vs. Selective
Selective
Demand
Demand Advertising
Advertising

Business-to-Business
Business-to-Business Advertising
Advertising
Professional
Professional Advertising
Advertising
Trade
Trade Advertising
Advertising

Organizations

Direct Marketing
Direct
Direct
Mail
Mail
Direct
Direct
Response
Response
Advertising
Advertising

Internet
Internet
Sales
Sales

Direct
Direct
Marketing
Marketing
Shopping
Shopping
Channels
Channels

Telemarketing
Telemarketing
Catalogs
Catalogs

Bose Uses Direct Response Advertising

Includes call
for action.
Phone number,
mail-in form,
website address
provided.

Interactive/Internet Marketing
Back-and-forth communication
Users participate in and modify the form
and content of information
Happens in real time

Interactive media
Internet
CD-ROMs
Kiosks
Interactive television
Digital cell phones

Sales Promotion

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

Using the Internet as an IMC Tool


The
The
Internet
Internet

Educates
Educates or
or
informs
informs
customers
customers
Obtains
Obtains
customer
customer
database
database
information
information

AA persuasive
persuasive
advertising
advertising
medium
medium

Communicates
Communicates
and
and interacts
interacts
with
with buyers
buyers

AA sales
sales tool
tool
or
or an
an actual
actual
sales
sales vehicle
vehicle

Provides
Provides
customer
customer
service
service and
and
support
support

Builds
Builds and
and
maintains
maintains
customer
customer
relationships
relationships

Sales Promotion
Coupons
Samples
Premiums
Contest/Sweepstake

Trade Allowances
POP Displays

Refunds/Rebates

Training Programs

Bonus Packs

Trade Shows

Loyalty Programs

Coop Advertising

Events

Consumer-oriented

Trade-oriented

[For end-users]

[For resellers]

Sales Promotion

Most of the promotional budget now


goes to sales promotion
Declining brand loyalty
Increased consumer sensitivity to deals
Larger and more powerful retailers are
demanding more trade promotion support

Test Your Knowledge


_____ is nonpersonal communication,
neither directly paid for nor run under,
identified sponsorship.
A)

Advertising

B)

Sales promotion

C)

Publicity

D)

Public relations

E)

Personal selling

Advertising Versus Publicity


Factor
Factor

Advertising
Advertising

Publicity
Publicity

Control
Control

Great
Great

Little
Little

Credibility
Credibility

Lower
Lower

Higher
Higher

Reach
Reach

Measurable
Measurable

Undetermined
Undetermined

Frequency
Frequency

Schedulable
Schedulable

Uncontrollable
Uncontrollable

Cost
Cost

High/Specific
High/Specific

Low/Unspecified
Low/Unspecified

Flexibility
Flexibility

High
High

Low
Low

Timing
Timing

Specifiable
Specifiable

Tentative
Tentative

Publicity Vehicles
Feature
Feature
Articles
Articles

News
News
Releases
Releases

Publicity
Publicity
Vehicles
Vehicles

Press
Press
Conferences
Conferences

Interviews
Interviews

Special
Special
Events
Events

Public Relations

Systematically planning and


distributing information in an attempt
to control and manage image and the
nature of the publicity received.

Public Relations Tools


Cause-related
Marketing
Publicity
Publicity
Vehicles
Vehicles

Special
Special
Publications
Publications

Community
Community
Activities
Activities

Corporate
Corporate
Advertising
Advertising

Public Affairs
Affairs
Public
Activities
Activities

Special
Special Event
Event
Sponsorship
Sponsorship

Personal Selling

Person-to-person communication
A seller attempts to assist and/or
persuade prospective buyers to make a
purchase or act on an idea

IMC Audience Contact Tools


Broadcast
Broadcast
media
media

Print
Print media
media

Public
Public
Relations/
Relations/
publicity
publicity

Internet/
Internet/
interactive
interactive

Direct
Direct
marketing
marketing

Out-of-home
Out-of-home
media
media

Target
Target Audience
Audience
Personal
Personal
selling
selling

Point-ofPoint-ofpurchase
purchase

Sales
Sales
Promotion
Promotion

Word-ofWord-ofmouth
mouth

Events
Events and
and
sponsorship
sponsorship

Product
Product
placements
placements

Test Your Knowledge


The _____ is a written document that
describes the overall marketing strategy
and programs developed for an
organization, product line, or brand.
A) promotional plan
B) marketing plan
C) communications plan
D) marketing audit
E) situation analysis

The IMC Planning Process


Developing an integrated marketing
communications plan requires
Planning
Executing
Evaluating
Controlling

Basic Elements of a Marketing Plan


1.
1. A
A detailed
detailed situation
situation analysis
analysis
2.
2. Specific
Specific marketing
marketing objectives
objectives
3.
3. A
A marketing
marketing strategy
strategy and
and program
program
4.
4. A
A program
program for
for implementing
implementing the
the strategy
strategy
5.
5. A
A process
process for
for monitoring
monitoring and
and evaluating
evaluating performance
performance

Model of the IMC Planning Process


Review of marketing plan
Analysis of Promotional program situation
Analysis of communications process
Budget determination
Develop integrated marketing communications program
Advertising

Sales
promotion

PR/
publicity

Personal
selling

Direct
marketing

Develop objectives and strategy for each


Develop message, media strategy, and tactics
Integrate and implement marketing communications strategies
Monitor, evaluate and control IMC Program

Internet/
interactive