PART 1

The IMC Foundation

CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4
Integrated Marketing Communications Corporate Image and Brand Management Buyer B
ehaviors Promotions Opportunity Analysis
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Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.

1
Integrated Marketing Communications
RON JON SURF SHOP Chapter Objectives
After reading this chapter, you should be able to answer the following questions
:
IMC and Brand Building Go to the Beach
If there is one common denominator among beachside communities, it would be that
there are plenty of surfing and swimwear shops What role does communication pla
y in marketing programs? located nearby. Most people couldnt tell you the name of
any one What is the nature of the store, unless they have visited a Ron Jon Sur
f Shop. Ron Jon is a communication process? prime example of how to develop and
build strong brand awareHow should the communications model be ness and loyalty
in an industry in which mostly small, singleapplied to marketing issues? owner s
tores are located along the shorelines of beaches and What are the characteristi
cs of a fully lake-towns across the United States. integrated advertising and ma
rketing In the 1960s, surfboard technology was changing. Homemade communications
approach? wooden boards were being replaced with mass-produced fiberglass How d
oes the concept of integrated models. A surfer-dude named Ron DiMenna was frustr
ated that he marketing communications pertain to could not buy one of these new
and improved rides. As a result, he international operations? founded the first
Ron Jon Surf Shop in New Jersey. In the early days, DiMenna would buy three boar
ds and sell two with a markup that gave him the third board for free. As time pass
ed, the company grew, and additional locations were opened on both the East and
West Coast. The center of the Ron Jon empire is located in Cocoa Beach, Florida.
At the Ron Jon Surf Shop near the beach, surfer and beach-lover figures that lo
ok like sand sculptures greet customers as they approach. Huge billboards showin
g images of happy and relaxed swimmers and beautiful beach enthusiasts line the
top of the building. The store itself covers more than 52,000 square feet. It is
filled with an amazing variety of items. Swimsuits, sunglasses, toys, surfboard
s, towels, shirts, and even beach-themed home decorations are available. A refre
shment stand with picnic tables is located outside the store for patrons to enjo
y. This Ron Jon unit is open 24 hours per day, 365 days a yearjust like the beach
. One of the most memorable Ron Jon images is its logo. The companys beach-themed
, fun-loving image has led loyal customers to attach Ron Jon decals carrying the
logo practically everywhere, including one near the top of the Eiffel Tower and
another aboard the U.S. space station. Many of the products sold in the store a
lso display the logo. The Ron Jon marketing team effectively utilizes advertisin
g by creating cooperative programs with other companies. When the Cocoa Beach st
ore celebrated its 40th anniversary, Chrysler Corporation joined in and created
a limited edition Ron Jon PT Cruiser. The autos were
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Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.

Source: Courtesy of Dave G. Houser/CORBISNY.

2009935072
customized to display Ron Jon decal art on the outside. Each car came with numer
ous novelty items, including a Ron Jon sports bag, blankets, license plates, bum
per stickers, key chains, and a T-shirt that guaranteed the car owner special br
agging rights. Only 1,000 Ron Jon cars were made. One was given away as the gran
d prize of a local surfing event. The 40th anniversary celebration also featured
a contest in which Ron Jon memorabilia were solicited. Entrants sent in old pho
tos, news articles, postcards, and personal stories. Each item gave the person a
chance at a gift certificate for Ron Jon merchandise. Ron Jon sponsors events t
hat tie in with the companys primary business. This includes a natural alliance w
ith professional surfing contests and other beachwear manufacturers, such as Bil
labong. In 2007, Ron John hosted an autograph-signing event in Cocoa Beach featu
ring renowned surfer Bruce Irons. Awareness of Ron Jons presence has grown throug
h innovative marketing programs. At one point, Ron Jon Surf Shop was featured in
a MasterCard commercial. Now, Ron Jon is expanding its reach to international c
ustomers. The company has received in-store visits from people all around the wo
rld. Part of the reason, according to vice president for corporate development B
ill Bieberbach, is that international customers prefer name-brand items. Ron Jon
is a powerful brand that reaches beach lovers in other countries. Ron Jon has a
lso expanded into land-based sports. In the mid-2000s, the company sponsored an E
nd of Summer Skateboard Contest in Florida. Skateboarders competed for cash prize
s and merchandise. Pepsi was a cosponsor of the event. Later, the two companies
held autograph sessions with Globe Pro Skateboarding. These events were aimed at
new, young customers who enjoy skateboarding as much as they do surfing. Ron Jo
n also has launched several public relations campaigns focused on community invo
lvement. In 2007, these events included a drive for patrons to donate blood, a b
each cleanup drive, and major donations to the United Way campaign.
3
Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.
C H A P T E R
O N E

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PART 1
The IMC Foundation
The company established new licensing agreements and other extensions of the Ron
Jon brand. Ron Jon Surf Shop opened new store locations in Orlando, Tampa, and
Miami under these agreements. Ron Jon merchandise is offered at several internat
ional airports, including Newark International Airport and the airport at Cozume
l, Mexico. The brand extensions also led to the surf-themed Ron Jon Cape Caribe
Resort in Cape Canaveral, Florida, Ron Jon bottled water products, and the Ron J
on Surf School by Craig Carroll in Cocoa Beach. Ron Jon Surf Shops future remains
bright. The overall theme of fun, relaxation, and enjoyment makes the Ron Jon b
rand a major force in what is often a no-name marketplace.1
OVERVIEW
he global marketplace consists of a complex set of competitors battling for cust
omers in a rapidly changing environment. New companies are formed on a daily bas
is. Small businesses, Internet-based operations, and global conglomerates that h
ave expanded through takeovers and mergers are all part of a worldwide marketing
environment. A wide variety of media are available to the leaders of these comp
anies. Advertising and marketing methods range from simple stand-alone billboard
advertisements to complex, multilingual global Web sites. The number of ways to
reach potential customers continually increases as nontraditional methods expan
d and become more popular. In the face of these sophisticated and cluttered mark
et conditions, firms try to be heard. Marketing experts know that a companys comm
unications must speak with a clear voice. Customers must understand the essence
of a business and the benefits of the firms goods and services. With the increasi
ng variety of advertising and promotional venues, and so many companies bombardi
ng potential customers with messages, the task is challenging. Three trends have
emerged in this turbulent new marketing communications context (Figure 1.1). Fi
rst, accountability is a primary focus. Advertising agencies are expected to pro
duce tangible results. Company leaders who hire advertising agencies cannot spen
d unlimited dollars on marketing programs. The funds must be spent wisely. A cou
pon promotion, a contest, a rebate program, or an advertising campaign must yiel
d measurable gains in sales, market share, brand awareness, or customer loyalty
to be considered successful. The push for accountability is being driven by chie
f executive officers (CEOs), chief financial officers (CFOs), and boards of dire
ctors who seek visible, measurable results from marketing expenditures. Accordin
g to Martyn Straw, chief strategy officer of the advertising agency BBDO Worldwi
de, corporate executives and business owners are tired of funneling cash into TV
commercials and glossy ads that keep increasing in cost and seem to do less and l
ess. As a result, a company such as PepsiCo is less likely to rely on 30-second
television spots. Instead, alternative communication venues are combined with sp
ecial events where names, profiles, and addresses of prospective Pepsi drinkers
can be collected and tracked. Straw believes that marketing has gone from being
a cost or expense to an investment. Promotional dollars must add value to genera
te new sales and higher profits.2 The second new trend in advertising is tied to
the first. Major changes have emerged in the tasks performed by all of the play
ers in an advertising program. The first person facing new job responsibilities
is the account executive, the person in an advertising agency who directs and ov
ersees advertising and promotional programs for client companies. The demand for
accountability places the account manager on the hot seat. He or
FIGURE 1.1 Current Trends Affecting Marketing Communications
T
Accountability for measurable results Changes in tasks performed by key players
in advertising programs Increased use of alternative media

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Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.

CHAPTER 1
Integrated Marketing Communications
5
she must respond to the scrutiny directed at each marketing campaign. This incre
ased responsibility has changed the account executives day-to-day activities. In
the past, an account executive mainly served as a liaison between the people who
prepared commercials and client companies. Now, the account manager may be invo
lved in developing overall strategic communication plans while, at the same time
, trying to make sure each individual promotional activity achieves tangible res
ults. Another person facing greater accountability is the brand or product manag
er, the individual who manages a specific brand or line of products for the clie
nt company. When sales of a brand slow, the brand manager looks for ways to boos
t them. The brand manager works diligently with the advertising agency, the trad
e promotion specialist, the consumer promotion specialist, and any other individ
ual or agency involved in conveying that brand image to customers. The brand man
ager must be a master at organizing the activities of many individuals while int
egrating each marketing campaign. Every promotional effort is coordinated to mak
e each message speak with the same voice. The final group of individuals facing
new responsibilities is creatives, the people who develop the actual advertiseme
nts and promotional materials. Most creatives are employed by advertising agenci
es. Some work for individual companies; others are freelancers. In this new era
where attracting attention to a company, good, or service is difficult, creative
s are being asked to perform additional functions. This includes contributing id
eas about the strategic marketing direction of the firm while developing individ
ual advertisements. Creatives are also being held accountable for the effectiven
ess of advertising campaigns. As a result, a new partnership among account execu
tives, brand managers, and creatives has emerged. Most advertising and marketing
agencies do more than create ads. They help the client company develop a totall
y integrated communications program. This trend toward a more integrated approac
h to advertising and communication continues. The third new trend is the explosi
ve development of alternative media. The Internet has evolved from simple Web-ba
sed advertisements to include blogs, interactive sites, and popular sites such a
s MySpace, Facebook, YouTube, Napster, Morpheus, and Kazaa. New handheld technol
ogies such as iPhones and text-messaging systems have created an entirely new la
ndscape and, in some cases, nearly a new language. As a result, companies are cu
tting expenditures on traditional media commericals and are moving to nontraditi
onal or alternative media. Johnson & Johnson shifted approximately 20 percent of
its marketing budget to nontraditional media for many products, including Neutr
ogena, Aveeno, and the flagship Johnson & Johnson baby products.3 Younger consum
ers with considerable amounts of purchasing power are less inclined to watch tel
evision. They are more likely to engage in technologically based interactions wi
th friends around the world. The challenge becomes finding ways to reach consume
rs who are increasingly sophisticated at blocking out traditional advertising me
ssages but who can be reached through new technologies. Current thinking in mark
eting suggests that you cannot assume that the best approach is to capture someo
nes attention. Instead, marketing communication now means finding ways to engage
with and interact with consumers. This textbook is devoted to explaining marketi
ng communications from the perspective of the decision makers both inside and ou
tside the firm. Various topics are viewed from the vantage points of the key ind
ividuals involved, including account managers, brand managers, creatives, media
buyers, and Webmasters.
Johnson & Johnson has increased use of alternative media in marketing baby produ
cts.
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Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,

by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.
Source: Courtesy of Ruth Jenkinson Dorling Kindersley.

6
PART 1
The IMC Foundation
This chapter explains the nature of an integrated advertising and marketing comm
unications program. First, communication processes are described. Understanding
how communication works builds the foundation for an integrated marketing progra
m. Next, a totally integrated marketing communications program is described. Fin
ally, the integrated marketing communications process is applied to global or in
ternational operations, generating the term GIMC, or globally integrated marketi
ng communications.
COMMUNICATION AND IMC PROGRAMS
Communication can be defined as transmitting, receiving, and processing informat
ion. When a person, group, or organization attempts to transfer an idea or messa
ge, communication occurs when the receiver (another person or group) is able to
comprehend the information. The model of communication shown in Figure 1.2 shows
how communication takes place as the message that was sent reaches its destinat
ion in a form that is understood by the intended audience.4 The communication pr
ocess is part of any advertising or marketing program. Consider a person plannin
g to buy a pair of athletic shoes. Using the communications model (Figure 1.2),
the senders are companies that manufacture and sell shoes. New Balance, ASICS, R
eebok, and Skechers all try to gain the customers attention. Most of these firms
hire advertising agencies. Others utilize an in-house marketing group. Encoding
the message is the second step. A creative takes the idea and transforms it into
attention-getting advertisements designed for various media (television, magazi
nes, the Internet, and others). The athletic shoe advertisements shown in this s
ection are examples of encoding. Messages travel to audiences through various tr
ansmission devices. The third stage of the marketing communication process occur
s when a channel or medium delivers the message. The channel may be a television
carrying an advertisement, a Sunday paper with a coupon placed in it, a letter
to the purchasing agent of a large retail store, or a blog on a companys Web site
. The shoe ads in this section were transmitted through various magazines. Decod
ing occurs when the message reaches one or more of the receivers senses. Consumer
s both hear and see television ads. Others consumers handle (touch) and read (se
e) a coupon offer. It is even possible to smell a message. A well-placed perfume s
ample might entice a buyer to purchase both the magazine containing the sample a
nd the perfume being advertised. People who are interested in purchasing athleti
c shoes pay closer attention to advertisements and other information about shoes
. Consider the athletic shoe advertisements shown in this section and then answe
r the following questions: 1. 2. 3. 4. 5. 6. Which advertisement most dramatical
ly attracted your attention? Why? Which advertisement is the least appealing? Wh
y? How important is the brand name in each ad? Why? What is the major message of
each individual advertisement? What makes each advertisement effective or ineff
ective? Discuss your thoughts about each advertisement with other students.
It is possible that the same advertisement will be interpreted differently by di
fferent people. In other words, the message may not be received. Quality marketi
ng communication occurs when customers (the receivers) decode or understand the
message as it was intended by the sender. In the case of the shoe ads, effective
marketing communications depend on
FIGURE 1.2 The Communications Process
Transmission // Device
Sender
//

Encoding
//
Decoding //
Receiver
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// // = Noise
Feedback
//
Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.

CHAPTER 1
Integrated Marketing Communications
7
Various ads for shoes.
receivers getting the right message and responding in the desired fashion (such
as shopping, buying, or telling their friends about the shoes). Examine the Web
sites of the four athletic shoe companies featured in the advertisements: Reebok
(www.rbk.com) ASICS (www.asics.com) New Balance (www.newbalance.com) Skechers (
www.skechers.com) The sites provide additional insights about the messages these
companies are trying to send. Compare the materials on the Web sites to the sho
e advertisements. You should be able to see how the two messages go together. If
they do not, the IMC program is not completely developed or fully integrated. O
ne obstacle that prevents marketing messages from being efficient and effective
is noise. Noise is anything that distorts or disrupts a message. It can occur at
any stage in the communication process, as shown in Figure 1.2. Examples of noi
se that affect television advertising are provided in Figure 1.3.
Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.
2009935072
Source: Courtesy of Paul Wakefield; ASICS Tiger Corporation; Reebok Internationa
l; Skechers USA Inc./New Balance Athletic Shoes Inc.

8
PART 1
The IMC Foundation
FIGURE 1.3 Communication Noise Affects Television Advertising
The viewer is talking on the phone. The viewer is getting something to eat durin
g the ad. The viewer of the ad dislikes or is offended by the nature of the ad.
The ad is placed on a TV show that is seldom watched by the producers target audi
ence. The advertisement is placed next to an ad by a competitor. The creative de
signed an ad that the target audience did not get. The person in the ad overpowe
rs the message. The producer of the ad changed the background of the ad from wha
t the creative wanted.
The most common form of noise affecting marketing communications is clutter. Mod
ern consumers are exposed to hundreds of marketing messages each day. Most are t
uned out. Clutter includes: Eight minutes of commercials per half hour of televi
sion and radio programs A Sunday newspaper jammed with advertising supplements A
n endless barrage of billboards on a major street The inside of a bus or subway
car papered with ads Web sites and servers loaded with commercials The final com
ponent of the communication process is feedback. It takes the form of purchases,
inquiries, complaints, questions, visits to the store, blogs, and Web site hits
. Each indicates that the message has reached the receiver and that the receiver
is responding. Account managers, creatives, brand managers, and others involved
in the marketing process pay attention to every part of the communications mode
l. They make sure that the proper audiences receive the messages. They try to ma
ke sure the message cuts through noise and clutter. In the case of athletic shoe
s, increases in market share, sales, and brand loyalty are common outcomes the m
arketing team tries to achieve. Remember, however, that communicating with consu
mers and other businesses requires more than simply creating attractive advertis
ements. In the next section, the nature of a fully developed integrated marketin
g communications program is described. An effective integrated marketing communi
cations program integrates numerous marketing activities into a single package i
n order to effectively reach target markets and other audiences.
INTEGRATED MARKETING COMMUNICATIONS
An integrated marketing communications program can be built on the foundation pr
ovided by the communications model. Although IMC programs may be described in se
veral ways, the consensus is to define them as follows: Integrated marketing com
munications (IMC) is the coordination and integration of all marketing communica
tion tools, avenues, and sources within a company into a seamless program that m
aximizes the impact on customers and other stakeholders at a minimal cost. This
integration affects all of a firms business-to-business, marketing channel, custo
merfocused, and internally directed communications.5 Before further examining th
e IMC concept, consider the traditional framework of marketing. The marketing mi
x is the starting point. As shown in Figure 1.4, promotion is
Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.
Source: Courtesy of Summer Bradley.
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CHAPTER 1
Integrated Marketing Communications FIGURE 1.4 The Components of Promotion
9
Product
Price
Promotion
Distribution
Advertising
Sales Promotions
Personal Selling
Database Marketing
Direct Response Marketing
Sponsorship Marketing
E-Active Marketing
Alternative Marketing
Public Relations
one of the four components of the mix. For years, the traditional view was that
promotional activities included advertising, sales promotions, and personal sell
ing activities. Sales promotions include both sales and trade promotions, with s
ales promotions aimed at end users or consumers of goods and services and trade
promotions directed toward distributors and retailers. This traditional view has
changed somewhat due to the accountability issue discussed earlier. The drive t
o integrate all promotional efforts has expanded promotions beyond the three tra
ditional elements of advertising, sales promotions, and personal selling. Now, i
t also includes activities such as database marketing, direct marketing, sponsor
ship marketing, e-active marketing, guerrilla marketing, alternative marketing,
and public relations. A complete IMC plan incorporates every element of the mark
eting mix: products, prices, distribution methods, and promotions. This textbook
primarily deals with the promotions component. Keep in mind, however, that to p
resent a unified message, the other elements of the marketing mix must be blende
d into the program.
AN INTEGRATED MARKETING COMMUNICATIONS PLAN
Integrated marketing is based on a strategic marketing plan. The plan coordinate
s efforts in all components of the marketing mix. The purpose is to achieve harm
ony in the messages sent to customers and others. The same plan integrates all p
romotional efforts to keep the companys total communications program in sync. Fig
ure 1.5 lists the steps required to complete a marketing plan. The first step is
a situational analysis, which is the process of examining factors from the orga
nizations internal and external environments. The analysis identifies marketing p
roblems and opportunities present in the external environment as well as interna
l company strengths and weaknesses. When the situation is fully understood, the
second step is to define primary marketing objectives. These objectives include
targets such as higher sales, an increase in market share, a new competitive pos

ition, or desired customer actions, such as visiting the store and making purcha
ses. Based on the marketing objectives, a marketing budget is prepared and marke
ting strategies are finalized. Marketing strategies apply to all the ingredients
of the marketing mix, plus any positioning, differentiation, or branding strate
gies. From these strategies, marketing tactics guide the day-by-day activities n
ecessary to support marketing strategies. The final step in the marketing plan i
s stating how to evaluate performance.
FIGURE 1.5 The Marketing Plan
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Situation analysis Marketing objectives Marketing budget
Marketing strategies Marketing tactics Evaluation of performance
Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.

10
PART 1
The IMC Foundation
These six steps of the marketing plan are similar to those used in creating mana
gement strategies. Both are designed to integrate all company activities into on
e consistent effort and to provide guidance to company leaders and marketing exp
erts as they integrate the firms total communications package. Once the marketing
plan has been established, company leaders can develop an integrated marketing
communications program.
IMC COMPONENTS AND THE DESIGN OF THIS BOOK
Figure 1.6 presents an overview of the IMC approach used in this textbook. A bri
ef description of each aspect follows. As shown, the foundation of an IMC progra
m consists of a careful review of the companys image, the buyers to be served, an
d the markets in which the buyers are located. Advertising programs are built on
this foundation, as are the other elements of the promotional mix. Finally, the
integration tools located at the peak of the pyramid help the companys marketing
team make certain that the elements of the plan are consistent and effective.
The IMC Foundation
The first section of this text builds the foundation for an IMC program. Chapter
2 describes the corporate image and brand management elements. Strengthening th
e firms image and brands answers the question, Who are we and what message are we
trying to send? From there it is possible to identify target markets. Chapter 3 d
escribes buyer behaviors. The steps of the consumer purchasing process explain h
ow individuals make choices. Marketers identify the motives leading to purchases
and factors affecting those decisions. Then, the IMC program can be designed to
influence these consumer choices. Business-to-business buyer behaviors are also
examined. Knowing how to reach purchasing managers and other decision makers wi
thin target businesses is another critical element in an integrated communicatio
ns plan. Discovering viable business-to-business marketing opportunities plays a
vital role in overall company success. Chapter 4 describes the promotions oppor
tunity analysis element of an IMC program. This includes identifying all target
markets. Consumer market segments are identified using demographics, income, soc
ial class, and various psychographic variables. Business markets are segmented b
y understanding the demographics of the
FIGURE 1.6 Overview of Integrated Marketing Communications
Regulations and Ethics Evaluation
Database and Sales Public Direct Response Promotions Relations and Marketing Spo
nsorships Traditional Media Advertising Management Corporate Image Brand Managem
ent E-Active Marketing Advertising Design Theory and Appeals Buyer Behaviors Alt
ernative Channels Advertising Design Messages and Frameworks Promotions Opportun
ity Analysis
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Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.

CHAPTER 1
Integrated Marketing Communications
11
companys buying team, noting who the end users will be, and by determining the be
nefits other businesses expect to receive from the goods and services they buy.
Advertising Tools
The second section of this text is devoted to advertising issues. Advertising ma
nagement, as described in Chapter 5, addresses the major functions of advertisin
g, the general direction the company takes, and the selection of an advertising
agency. The functions performed by an advertising agencys account manager as well
as those provided by the advertising creative are also described. Several adver
tising theories, which are explored in Chapter 6, are available to help the crea
tive design advertisements. The various advertising appeals that can be used, in
cluding those oriented toward fear, humor, sex, music, and logic, are explained
in the chapter. Chapter 7 reveals the ingredients involved in creating effective
message strategies. The messages are delivered via various executional framewor
ks, which are various ways to construct the actual commercial or advertisement.
Creatives and other advertising professionals know that effective advertising in
cludes the use of effective sources or spokespersons and following well-establis
hed principles of success.
IMC Media Tools
The third section of this book contains information regarding both traditional a
nd new cutting-edge ideas about how to reach potential customers. First, the tra
ditional media channels, including television, radio, magazines, newspapers, out
door signs, and direct mail, are described in Chapter 8, along with the advantag
es and disadvantages of each medium. The roles provided by media planners and me
dia buyers are also identified. Chapter 9 is devoted to issues associated with t
he Internet, with a new term, e-active marketing, used to summarize the various
activities involved. E-active marketing integrates e-commerce programs with more
recent trends that have evolved with Internet usage. These include social netwo
rks and blogs, among the other activities that consumers pursue online. Consumer
s play an active role in receiving and sending messages when the Internet is uti
lized. Consequently, the channel deserves special attention from the marketing d
epartment. Many communication channels are available beyond both the traditional
networks and the Internet. These methods are described in Chapter 10, titled Alt
ernative Marketing. The programs that are described include buzz marketing, gueri
lla marketing, product placements and branded entertainment, and lifestyle marke
ting. The concept of a brand community is also examined.
Advertising is a crucial component of a firms IMC program.
Promotional Tools
The next level of the IMC pyramid adds database and direct response marketing pr
ograms, trade promotions, consumer promotions, public relations efforts, and spo
nsorship programs. When marketing managers carefully design all of the steps tak
en up to this point, the firm is in a better position to integrate these activit
ies. Messages presented in the advertising campaign can be reinforced with a var
iety of communication promotions. Database and direct response marketing program
s are outlined in Chapter 11. The chapter first describes effective data collect
ion and analysis. Then, the information gained can be used to develop data-drive
n marketing programs, including permission marketing, frequency programs, and cu
stomer relationship management systems.
Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.

2009935072
Source: Courtesy of Newcomer, Morris & Young, Inc.

12
PART 1
The IMC Foundation
Consumer and trade promotions are described in Chapter 12, which has the general
title of Sales Promotions. Trade promotions include trade incentives, cooperative
advertising, slotting fees, and other promotions and discounts that help the ma
nufacturer or channel member to push the product through the distribution channe
l. Consumer promotions are directed at end users and include coupons, contests,
premiums, refunds, rebates, free samples, and price-off offers. The ad for Green
Tea in this section includes a coupon for 55 cents off. Chapter 13 focuses on p
ublic relations programs that connect with consumers in positive ways. This incl
udes emphasizing positive events and dealing with negative publicity. In many ca
ses the marketing team utilizes public relations efforts to help a sponsorship p
rogram achieve the greatest impact.
Integration Tools
The top level of the IMC program includes the integration tools needed to make sur
e all customers are effectively served. Chapter 14 begins with an examination of
the many legal and regulatory issues that are part of the advertising and promo
tions environment. Further, ethical issues in marketing communications are discu
ssed. Ethical systems go beyond simply meeting the letter of the law. Chapter 15
, the final chapter of this textbook, explains how to evaluate an integrated mar
keting program. It is crucial to evaluate communication programs. Evaluations ca
n begin prior to any promotional campaign and continue during the campaign to po
stcampaign evaluations. These evaluations can provide valuable information to al
ter campaigns before they are commercially introduced, as well as providing inpu
t to modify programs that have already run. A promotions evaluation process hold
s everything together; it drives the entire IMC process. Fully integrated market
ing requires a careful linkage between planning and evaluation processes; one ca
nnot occur without the other.
Source: Courtesy of The Hain Celestial Group.
An ad for Celestial Seasonings Green Tea offering a 55 cents-off coupon.
Refining the IMC Program
IMC involves much more than writing a plan. It is also not limited to the compan
ys marketing department. IMC is a company-wide activity. To be successful, every
part of the organizations operation must be included. A study conducted by the Am
erican Productivity & Quality Center of Houston indicates that four stages are i
nvolved in designing an IMC system (see Figure 1.7).6 The first stage is to iden
tify, coordinate, and manage all forms of marketing communication. The objective
is to bring all of the companys communication elements together under one umbrel
la. This includes advertising, promotions, direct marketing, Internet and e-comm
erce programs, public relations, sponsorships, and other marketing activities.
FIGURE 1.7 Four Stages of an Effective Integrated Marketing Communications Syste
m
1. Identify, coordinate, and manage all forms of marketing communication. 2. Ana
lyze customer contact points.
3. Use information technology to better serve customers. 4. Use information tech
nology to assist corporate strategic planning.
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Source: Based on Integrated Marketing Communications, Consortium Benchmarking Stud
y, American Productivity and Quality Center (1999).

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by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.

CHAPTER 1
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13
In the second stage, communications are examined from the perspective of the cus
tomer. The marketing team analyzes every contact method that might influence cus
tomers. This means studying every internal and external group that might affect
perceptions of the company and its products. Employees, distributors, retailers,
dealers, product package designers, and others are part of the integrated marke
ting program. Information technology comes to the forefront in the third stage.
Company leaders find ways to use information technology to enhance IMC programs.
With computer technology and abundance of information, the marketing team has t
he capability to develop data-driven programs to meet the needs of individual cu
stomers and allow for the customization of marketing messages. The fourth and fi
nal stage of IMC development occurs when the organization uses customer data inf
ormation and insights to assist corporate strategic planning. The information gu
ides marketing decisions and the communication approaches aimed at individual cu
stomer segments. Firms reaching this stage, such as Dow Chemical, FedEx, and Hew
lett-Packard, take databases and use them to calculate and establish a customer
value for each buyer. All customers are not equally valuable. Dow Chemical, FedE
x, and Hewlett-Packard allocate sales and marketing communication resources to t
hose customers with the greatest potential for return, based on calculations of
customer values. This helps company leaders understand each customers worth and t
reat each one individually, resulting in the highest possible return on investme
nt for marketing expenditures.
THE VALUE OF IMC PLANS
Advances in technology and communications are major new forces in integrated mar
keting communications. Consumers must be reached in a holistic fashion, which me
ans companies cannot rely totally on traditional media and marketing methods. Th
ere is a strong movement toward nontraditional and alternative methods of reachi
ng consumers. Figure 1.8 lists several trends linked to the increasing importanc
e of integrated advertising and marketing communications programs.
Information Technology
Technology enables instant communications among business executives, employees,
channel members, and others around the world. It also creates opportunities for
marketing communications. For example, in the past, predictions of consumer purc
hasing behaviors were based on the results of test markets, attitudinal research
, and intention-to-buy surveys. Although these are excellent means of obtaining
information about consumers, they are slow, costly, and potentially unreliable.
Today, purchase-behavior predictions are more precise due to the development of
the UPC (universal product code) bar-code system. The technology was originally
used to manage inventories. Scanning every sale meant retailers were better able
to develop efficient inventory-control systems. At the same time, UPC codes com
bined with other technology programs allow large amounts of data and information
about customers to be gathered. Advanced statistical software helps company lea
ders analyze these data. Connections between financial (e.g., credit card, banki
ng) and business firms make it possible to collect purchasing data. Using this i
nformation, demographic and psychographic information about consumers can be cor
related with the items they buy, as well as when and where they make
Development of information technology
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Integration of information by consumers Decline in effectiveness of television a
dvertising

Changes in channel power Increase in competition Brand parity

FIGURE 1.8 Trends Impacting Integrated Advertising and Marketing Communications
Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.

14
PART 1
The IMC Foundation
purchases. Consequently, marketers can determine who is buying a companys product
s and the best communication channels to reach them.
Changes in Channel Power
A marketing channel consists of a producer or manufacturer vending goods to whol
esalers or middlemen, who in turn sell items to retailers, where the same items
are finally sold to consumers. Numerous technological developments have changed
the levels of power held by members of the channel. Oftentimes retailers hold th
e most channel power, because they control shelf space and purchase data. Retail
ers are able to determine what products and brands will be placed on store shelv
es, and thus available to consumers. Through checkout scanners, retailers know w
hat products and brands are selling. Many retailers share the data with supplier
s and require them to ensure that store shelves remain well stocked. The size an
d power of mega-retailers means manufacturers and suppliers have no choice but t
o follow the dictates of these big box stores. At the same time, the advancement o
f the World Wide Web and information technology has caused some channel power to
shift to consumers.7 Consumers can obtain information about goods and services
and purchase almost anything using the Internet. For example, the Visa advertise
ment in this section encourages consumers to book hotel rooms, air travel, and c
ar rentals online. Internet-driven sales have grown at a tremendous rate. In fac
t, in just one year, from 2006 to 2007, U.S. online retail sales grew by 18.3 pe
rcent. Total U.S. retail sales in the United States was $243.1 billion. Figure 1
.9 highlights the major segments of U.S. online retail sales. It also displays t
he percentage each category represents of total U.S. online retail sales.8 To il
lustrate how technology is changing channel power, think about an individual in
the market for a cell phone provider. First, she goes to the Internet and search
es for information. She then identifies several possible brands and narrows them
down to three. Next, she may travel to a local mall to investigate the carriers
or visit with them by phone. Asking questions of the salespeople helps her gath
er additional product information.
Source: Courtesy of Visa USA Inc. 1999 Visa USA Inc. All Rights Reserved. Used b
y Permission.
This Visa advertisement encourages consumers to book vacations online.
FIGURE 1.9 U.S. Online Retail Sales
Toys/video games 3% Music/videos 4% Home furnishings 5% Food/beverages 3% Other
19%
Travel 35%
Apparel 7% Appliances 3% Auto & parts 8% Computer Consumer electronics hardware/
software 5% 8%
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Source: Based on U.S. Online Retail Sales, Digital Marketing & Media Fact Pack, Ad
vertising Age, Crain Communications, Inc. (2007), p. 34.
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by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.

CHAPTER 1
Integrated Marketing Communications
15
Going home, she then logs on to the Web sites of the three systems to learn abou
t warranties; the type of phone being offered; company policies, such as how eas
y it is to change calling plans and about rollover minutes; and other details ab
out the services. Having gathered sufficient information to make a decision, she
can use Internet sources, the telephone, or a personal visit to the carriers sto
re to finalize the purchase. She may even play one carrier off against another t
o get a better price. Soon, she has a new phone along with the paperwork used to
complete the transaction. The result is that the buyer is in charge of the enti
re process. Although many individuals still purchase the majority of products in
brick-and-mortar stores, individuals are shifting to more integrated approaches
to learning about products and to making purchases. The same principles apply t
o business-to-business purchasing activities. Buyers who shop on behalf of organ
izations and other company members seeking business-to-business services are abl
e to tap into the same resources (i.e., Web sites, databases). This means that t
he same kind of shift in channel power is taking place in the business-to-busine
ss sector.
Increases in Competition
Information technology and communication advances have dramatically changed the
marketplace in other ways. Consumers can purchase goods and services from anywhe
re in the world. Competition no longer comes from the company just down the stre
etit can come from a firm 10,000 miles away that can supply a product faster and
cheaper. Consumers want quality, but they also want a low price. The company tha
t delivers on both quality and price gets the business, regardless of its locati
on. Advancements in delivery systems make it possible for purchases to arrive al
most anywhere in a matter of days. In this competitive environment, it seems as
if the only way one firm can gain sales is to take customers away from another.
Consequently, integrating advertising and other marketing communications becomes
extremely important. Advertising alone is not enough to maintain sales. This si
tuation is further complicated for manufacturers when retailers hold stronger ch
annel power and control the flow of merchandise to consumers. In that circumstan
ce, manufacturers invest in trade promotions (e.g., dealer incentives, slotting
allowances, discounts) to keep products in various retail outlets. Encouraging r
etailers to promote a manufacturers brand or prominently display it for consumer
viewing requires even greater promotional dollars. Manufacturers also invest in
consumer promotions (e.g., coupons, contests, sweepstakes, bonus packs, and pric
e-off deals) to keep customers. The goal is to keep a brand attractive to the re
tailer. The U.S. running shoe market provides an excellent example of how growth
for any given company comes at the expense of competing brands. Figure 1.10 dis
plays market
Saucony, 1.7% Reebok, 2.3% Other, 2.1% Adidas, 13.2%
FIGURE 1.10 Market Share of Top Brands in the Running Shoe Industry
Asics, 13.3%
Avia, 1.7% Nike, 46.2% Brooks, 1.7%
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New Balance, 17.8%
Source: Based on Matt Powell, A Steady Stride, SCB 39, no. 11 (November 2006), p.
15.

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by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.

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PART 1
The IMC Foundation
shares for the top brands in the running shoe industry. Notice that Nike is the
market leader, with 46.2 percent of the market, compared to the number two brand
, New Balance, at 17.8 percent, and the number three brand, Adidas, at 13.2 perc
ent. About the only way New Balance, Adidas, Reebok, and other brands can gain m
arket share is to take it away from another brand.9 Nike is the market leader. C
onsequently, it is often the target for such strategies. At the same time that m
anufacturers fight for market share, retailers, equipped with scanner data, cont
rol product placement within a store and shelf-space allocation. To gain promine
nce for a particular brand at the retail level, the manufacturers marketing team
coordinates all advertising, trade promotions, and consumer promotions. The goal
is to maximize marketing dollars by gaining maximum exposure to consumers and r
etailers. Retailers, in turn, focus on IMC efforts that are designed to maintain
customer loyalty along with positive relationships with manufacturers. It is cr
ucial for each company in the marketing chain to create a quality IMC program th
at reaches both customers and others in the distribution chain.
Brand Parity
The increase in national and global competition is due to the availability of mu
ltiple brands. Many of these products have nearly identical benefits. When consu
mers believe that most brands offer the same set of attributes, the result is br
and parity. From the consumers perspective, this means that shoppers will purchas
e from a group of accepted brands rather than one specific brand. When brand par
ity is present, quality is often not a major concern because consumers believe t
hat only minor quality differences exist. Consumers routinely view quality level
s of products as being nearly equal. As a result, they often base purchase decis
ions on other criteria, such as price, availability, or a specific promotional d
eal. The net effect is that brand loyalty has experienced a steady decline.10 Br
and loyalty has also been reduced because of a growing acceptance of private bra
nds. A recent survey conducted by Top Brands revealed that consumers are willing
to switch brands in most product categories.11 In response, the marketing team
tries to create messages that express how the companys products are clearly diffe
rent. The messages are designed to convince consumers that the companys brand is
superior and is not the same as the competitions. A quality IMC program is, in pa
rt, designed to gain the benefits associated with a strong brand name.
Integration of Information
Todays consumers have a variety of choices regarding where they obtain informatio
n about a brand. If consumers are not satisfied with what they hear, they can se
ek additional information. They might go to the Internet and read about other br
ands and companies.
Source: Courtesy of Newcomer, Morris & Young, Inc.
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Many businesses, such as the Marion State Bank, include a Web address on company
advertisements.
Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.

CHAPTER 1
Integrated Marketing Communications
17
I m bored Program is boring Turn to another program Ads are on Ad boring Ad anno
ying Seen ad a lot 0 10 20 30 40 50 60 Percent 70 80 90 100
FIGURE 1.11 Reasons Viewers Do Not Watch Ads During a Commercial Break
As a result, most companies now list Internet addresses on advertisements. Web u
sers can now discuss products and companies with other customers in chat rooms o
r in blogs. They may also travel to retail stores and discuss various options wi
th the salesclerk. Others will consult independent sources of information such a
s Consumer Reports. The marketing team should be concerned with the ways consume
rs integrate this information. Company leaders should make sure that every conta
ct point projects the same message. Contact points are the places where customer
s interact with or acquire additional information from a company. These contacts
may be direct or indirect, planned or unplanned. An effective IMC program sends
a consistent message about the nature of the company, its products, and the ben
efits that result from making a purchase from the organization.
Decline in the Effectiveness of Television Advertising
The influence of mass-media television advertising has declined dramatically. VC
Rs and DVR systems allow consumers to watch programs without commercials. The ri
se in popularity of cable TV, DVR recorders, and satellite dishes means consumer
s have a wide variety of viewing choices. Using the remote while watching televi
sion means that it is likely that, during most commercials, the viewer is surfin
g other channels to see what else is on. Many television advertisements are not
seen, even by those people watching a particular program. In a recent survey by
conducted by Brandweek magazine, only 16 percent of viewers said that they watch
commercials during a program.12 Why do viewers switch channels or engage in oth
er activities? Figure 1.11 provides some answers. In general, viewers find telev
ision ads to be boring, annoying, intrusive, and too repetitious.13 To overcome
this problem, it is vital to create new and innovative communications programs t
hat can hold the viewers attention, which is not an easy task. Many firms employ
advertising agencies to assist in marketing efforts. Until 1970, almost all adve
rtising agencies focused only on the advertising aspect of the marketing plan. N
ow, however, many advertising agencies spend substantial amounts of time assisti
ng clients in the development of IMC programs.14 In addition to advertisements,
these agencies design consumer promotion materials and direct-marketing programs
, along with other marketing tactics.
INTERNATIONAL IMPLICATIONS
The same trend that exists among advertising agencies in the United States also
occurs in the international arena. Instead of being called IMC, however, it is kno
wn as GIMC, or a globally integrated marketing communications program.15 The goa
l is still the same to coordinate marketing efforts. The challenges are greater d
ue to larger national and cultural differences in target markets.
Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc. 2009935072

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The IMC Foundation
In the past, marketers could employ two different strategies for global companie
s. The first approach was standardization, in which the idea was to standardize
the product and message across countries. The goal of this approach was generati
ng economies of scale in production while creating a global product using the sa
me promotional theme. The language would be different, but the basic marketing m
essage would be the same. The second approach to global marketing was adaptation
. Products and marketing messages were designed for and adapted to individual co
untries. Thus, the manner by which a product was marketed in France was differen
t from how it was marketed in Italy, India, or Australia. The GIMC approach is e
asier to apply when a company relies on the standardization method; however, GIM
C can and should be used with either adaptation or standardization.16 To reduce
costs, careful coordination of marketing efforts should occur across countries.
Even when a firm uses the adaptation strategy, marketers from various countries
can learn from each other. Members of the marketing department should not feel l
ike they have to reinvent the wheel. Synergy can occur between countries. More i
mportantly, learning can occur. As telecommunications continue to expand, contac
ts between peoples of different countries are much more frequent. Remember, a co
mmercial targeted for customers in France may also be viewed by people in Spain
using satellite technologies. Therefore, a company should try to transmit a cons
istent theme, even when there are differences in local messages. In terms of mar
keting, the philosophy many companies use is market globally, but act locally. Whe
n marketers design or encode messages for local markets, they need to have the f
reedom to tailor or alter the message so that it fits the local culture and the
target market. The final message conveyed in each country often varies. Developm
ent of a GIMC is the final extension to an IMC plan. With its completion, compan
ies are able to compete more effectively both at home and abroad.
SUMMARY
A new era is unfolding in the fields of advertising, promotions, and marketing c
ommunications. Marketing departments and advertising agencies, as well as indivi
dual account managers, brand managers, and creatives, encounter strong pressures
. They are being held accountable for expenditures of marketing communications d
ollars. Company leaders expect tangible results from promotional campaigns and o
ther marketing programs. As a result, new partnerships are forming among account
executives, creatives, and the companies that hire them. The duties of the acco
unt manager have expanded in the direction of a more strategically oriented appr
oach to advertising and marketing communications. Those preparing to become adve
rtising or promotions professionals must be aware of both accountability issues
and the new aspects of these jobs, including accounting for all of the new forms
of alternative media. Communication is transmitting, receiving, and processing
information. It is a two-way street in which a sender must establish a clear con
nection with a receiver. Effective communication is the glue holding the relatio
nship between two entities together. When communication breaks down, conflicts,
misunderstandings, and other problems can develop. The components of the communi
cation process include the sender, an encoding process, the transmission device,
the decoding process, and the receiver. Noise is anything that distorts or disr
upts the flow of information from the sender to the receiver. In the marketing a
rena, senders are companies seeking to transmit ideas to consumers, employees, o
ther companies, retail outlets, and others. Encoding devices are the means of tr
ansmitting information and include advertisements, public relations efforts, pre
ss releases, sales activities, promotions, and a wide variety of additional verb
al and nonverbal cues sent to receivers. Transmission devices are the media and
spokespersons who carry the message. Decoding occurs when the receivers (such as
customers or retailers) encounter the message. Noise takes many forms in market

ing, most notably the clutter of an overabundance of messages in every available

channel. Integrated marketing communications (IMC) takes advantage of the effec
tive management of the communications channel. Within the marketing mix of produ
cts, prices, distribution systems, and promotions, firms that speak with one cle
ar voice are able to coordinate and integrate all marketing tools. The goal is t
o have a strong and positive impact on consumers, businesses, and other end user
s. IMC plans are vital to achieving success. The reasons for their importance be
gin with the explosion of information technologies. Channel power has shifted fr
om manufacturers to retailers and is now shifting to consumers. Company leaders
must adjust in order to maintain a strong market standing, and IMC programs can
assist in this effort. New levels of competition drive marketers to better under
stand their customers and be certain that those end users are hearing a clear an
d consistent message from the firm. As consumers develop a stronger sense of bra
nd parity, whereby no real differences in product or service quality are perceiv
ed, marketers must re-create a situation
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Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.

CHAPTER 1
Integrated Marketing Communications
19
in which their brand holds a distinct advantage over others. This is difficult,
because consumers can collect and integrate information about products from a wi
de variety of sources, including technological outlets (Web sites) and interpers
onal (sales reps) sources. Quality IMC programs help maintain the strong voice a
company needs to ensure that its messages is heard. An additional challenge is
the decline in effectiveness of mass-media advertising. IMC helps company leader
s find new ways to contact consumers with a unified message. When a firm conduct
s business internationally, a GIMC, or globally integrated marketing communicati
ons system, can be of
great value. By developing one strong theme and then adapting that theme to indi
vidual countries, the firm conveys a message that integrates international opera
tions into a more coherent package. This text explains the issues involved in es
tablishing an effective IMC program. The importance of business-to-business mark
eting efforts is noted, because many firms market items as much to other compani
es as they do to consumers. Successful development of an IMC program should help
firms remain profitable and vibrant, even when the complexities of the marketpl
ace make these goals more difficult to reach.
KEY TERMS
communication Transmitting, receiving, and processing information. senders The p
erson(s) attempting to deliver a message or idea. encoding The verbal (words, so
unds) and nonverbal (gestures, facial expressions, posture) cues that the sender
utilizes in dispatching a message. transmission devices All of the items that c
arry a message from the sender to the receiver. decoding When the receiver emplo
ys any of his or her senses (hearing, seeing, feeling) in an attempt to capture
a message. receivers The intended audience for a message. noise Anything that di
storts or disrupts a message. clutter Exists when consumers are exposed to hundr
eds of marketing messages per day, and most are tuned out. feedback Information
the sender obtains from the receiver regarding the receivers perception or interp
retation of a message. integrated marketing communications (IMC) The coordinatio
n and integration of all marketing communication tools, avenues, and sources wit
hin a company into a seamless program that maximizes the impact on customers and
other end users at a minimal cost. This affects all of a firms business-to-busin
ess, marketing channel, customer-focused, and internally oriented communications
. marketing mix Consists of products, prices, places (the distribution system),
and promotions. brand parity Occurs when there is the perception that most produ
cts and services are essentially the same. contact points The places where custo
mers interact with or acquire additional information about a firm. standardizati
on When a firm standardizes its products and market offerings across countries w
ith the goal of generating economies of scale in production while using the same
promotional theme. adaptation Occurs when products and marketing messages are d
esigned for and adapted to individual countries.
REVIEW QUESTIONS
1. How has the job of an advertising account executive changed? How has the job
of a creative changed? How has the job of a brand manager changed? How do the th
ree jobs interact in the new marketing environment? 2. Define communication. Why
does it play such a crucial role in marketing and business? 3. What are the par
ts of an individual communications model? 4. Who are the typical senders in mark
eting communications? Who are the receivers? 5. Name the transmission devices, b
oth human and nonhuman, that carry marketing messages. How can the human element
become a problem? 6. Define clutter. Name some of the forms of clutter in marke
ting communications. 7. Define integrated marketing communications (IMC). 8. Wha

t are the four parts of the marketing mix? 9. 10. 11. 12. 13. 14. 15. 16. 17. Wh
at steps are required to write a marketing plan? Describe firm and brand image.
What are the main components of advertising? How has the growth of information t
echnology made IMC programs vital to marketing efforts? What reasons were given
to explain the growth in importance of IMC plans in this chapter? What is channe
l power? How has it changed in the past few decades? What is brand parity? How i
s it related to successful marketing efforts? What is a GIMC? Why is it importan
t for multinational firms? What is the difference between standardization and ad
aptation in GIMC programs?
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Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.

20
PART 1
The IMC Foundation
CRITICAL THINKING EXERCISES
Discussion Questions 1. The marketing director for a furniture manufacturer is a
ssigned the task of developing an integrated marketing communications program to
emphasize the furnitures natural look. Discuss the problems the director might e
ncounter in developing this message and in ensuring that consumers understand th
e message correctly. Refer to the communication process in Figure 1.2 for ideas.
What kinds of noise interferes with the communication process? 2. Referring to
Exercise 1, assume the director wants to develop an integrated marketing communi
cations program emphasizing a theme focused on the furnitures natural look. This
theme applies to all of the companys markets, that is, both retailers and consume
rs. Using Figure 1.6 as a guide, briefly discuss each element of the integrated
marketing communications plan and how to incorporate it into an overall theme. 3
. The marketing director for a manufacturer of automobile tires wants to integra
te the companys marketing program internationally. Should the director use a stan
dardization or adaptation approach? How could the company be certain that its ma
rketing program will effectively be integrated among the different countries in
which it sells tires? 4. What do you typically do during commercials on televisi
on? What percentage of the time do you watch commercials? What makes you watch?
Ask these same questions of 10 other people. What type of activities do people e
ngage in during commercials? 5. Nikes tagline is Just do it. What meaning is convey
ed by the tagline? Do you think this conveys a clear message about the companys o
perations? 6. Brand parity has become a major issue for companies. Identify thre
e product categories where the brand you purchase is not very important. Why is
the brand name not important? Identify three product categories where the brand
is important. What brand or brands do you typically purchase in each category?
INTEGRATED LEARNING EXERCISES
1. Ron Jon Surf Shop is probably the best known retail store brand for ocean gea
r in Florida. In Hawaii, the dominant name is Hilo Hattie. Go to the Hilo Hattie
Web site at www.hilohattie.com. Compare it to the Ron Jon site at www.ronjons.c
om. Do the two sites have relatively common themes? Which is the more attractive
site? Why? 2. Find each of the following companies on the Internet. For each co
mpany, discuss how effective its Web site is in communicating an overall message
. Also, discuss how well the marketing team integrates the material on the Web s
ite. How well does the Web site integrate the companys advertising with other mar
keting communications? a. Revlon (www.revlon.com) b. J.B. Hunt (www.jbhunt.com)
c. United Airlines (www.united.com) d. Steamboat Resorts (www.steamboatresorts.c
om) 3. Information is one key to developing a successful integrated marketing co
mmunications program. Access each of the following Web sites and examine the inf
ormation and news available on each site. How would this information help in dev
eloping an integrated marketing campaign? a. Brandweek (www.brandweek.com) b. Ad
week (www.adweek.com) c. Mediaweek (www.mediaweek.com) d. Branding Asia (www.bra
ndingasia.com)
STUDENT PROJECT
Creative Corner One of Procter & Gambles fastest growing products is Febreze. It
is aimed at individuals who do not like washing laundry and has been positioned
by P&G as an alternative method of completing this chore. An ideal target market
is the 18 million college students in the United States. With busy class schedu
les, work, and social events, who has time to do laundry? For jeans and other cl
othes that are not quite dirty yet, Febreze offers the chance to refresh the cloth
es and kill any possible odors. John Paquin, Executive Vice-President at the adv
ertising agency WPP Grey Worldwide, which handles the Febreze product, states th
at washing is not a convenient part of the lifestyle at college. He also recognize

s that mainstream media buys [such as television] are not effective for the 18- t
o 22-year-olds.17 For more information about Febreze, access the Febreze Web sit
e at www.febreze.com. 1. Identify alternative media you would use to reach 18- t
o 22-year-old college students. 2. Design an advertisement for Febreze aimed at
the college demographic. Where would you place your ad? Why?
2009935072
Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.

CHAPTER 1
Integrated Marketing Communications
21
CASE 1
A NEW SALSA SENSATION
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Hector Fernandez created a salsa that became legendary within just a few years.
Hector operated a successful restaurant, El Casa Grande, in Taos, New Mexico, fo
r many years. A new chapter in his life opened when he was approached by two of
his best customers, who offered to help him produce and market his salsa through
out the state, with the goal of reaching regional distribution in 5 years. As a
first step, Hector located the home office of a major advertising agency in Albu
querque. The agency positioned itself as being a full-service organization. Hector
wondered exactly what that meant. He was introduced to Matt Barnes, who was to
serve as his marketing and promotions consultant. Matts first questions were abou
t Hectors salsa: What makes your salsa better? and Is there a way we can convince pe
ople of the difference? Hector responded that his customers often commented about
both the taste and the texture of the salsa. He had a secret formula that had a
few unusual seasonings that made his salsa burst with flavor. Hector also belie
ved that it was less runny than others. The next item the two discussed was potent
ial customers. Hector noted that Tex-Mex was a popular form of dining in New Mex
ico as well as across the country. He believed that his salsa would appeal to a
wide variety of people who enjoy TexMex cuisine. Matts next question was simple: W
ho do you think are your major competitors? Hector responded, Thats easy, Pace and
Old El Paso. Matt then asked what Hector thought of the two companies and their p
roducts. He suggested an investigation on both a personal and competitive basis.
For example, Matt asked, What do you think of when you hear the name Pace? How a
bout Old El Paso? He noted that both brands were solid and that Hectors company wo
uld need a compelling brand in order to compete. The next step was a visit to th
e Web site of each company (www.pacefoods.com and www.oldelpaso.com). They notic
ed that the two companies offered some products that were the same and others th
at were not. Matt asked Hector what he thought about the advertising and promoti
ons for each company and its products. Hector replied, Well, to tell you the trut
h, I only remember one television ad. It said something about one of the two com
panies was located in New York City instead of near Mexico, but I cant remember w
hich was which. They concluded that it was possible that neither company was invo
lved in a great deal of traditional advertising or that Hector was simply too bu
sy with his own company to notice. Hector noted that he used a DVR to watch tele
vision and that he listened to satellite radio in both his restaurant and his ca
r. Matt suggested that Hector should look in Sunday papers for the past several
weeks to see if either company was offering price-off coupons or other promotion
s, such as a contest or sweepstakes. He told Hector it would be a good idea to a
ttend events where salsa was being sampled or sold, such as at county fairs, Mex
ican heritage events, and at ball parks and other sports stadiums where nachos w
ere on the menu.
Hector had a great salsa, but no brand name and no marketing communications plan
.
The two then discussed a crucial issue: How could Hectors new company convince gr
ocers and others to designate some shelf space for his salsa, thereby taking spa
ce away from some other product? Finally, Matt handed Hector a package of materi
als (see Figure 1.12). He asked Hector to consider how to reach every possible t
ype of customer for his product, including grocery stores, other restaurants, an

d individual consumers shopping for salsa. He suggested that Hector would need t
o think about what type of sales tactics to use, which promotional programs were
most important, and how the company should lookfrom its logo, to its letterhead,
to the business cards handed out by sales representatives. Remember, Matt state
d, Everything communicates. 1. Can you think of a brand name that could be used no
t only for salsa, but for any other product related to salsa that Hectors company
might sell? 2. How can Hectors company compete with Pace and Old El Paso? Is the
re a market niche the company can locate? 3. What kinds of advertising and promo
tions tactics should the company use? Will the tactics be the same in 5 years?
Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.
Source: Courtesy of David Murray Dorling Kindersley.

22
PART 1
The IMC Foundation
FIGURE 1.12 Items to Be Included in an IMC Program
Company logo Product brand name and company name Business cards Letterhead Carry
home bags (paper or plastic) Wrapping paper Coupons Promotional giveaways (coff
ee mugs, pens, pencils, calendars) Design of booth for trade shows Advertisement
s (billboards, space used on cars and busses, television, radio, magazines, and
newspapers) Toll-free 800 or 888 number Company database
Cooperative advertising with other businesses Personal selling pitches Character
istics of target market buyers Characteristics of business buyers Sales incentiv
es provided to salesforce (contests, prizes, bonuses, and commissions) Internal
messages Company magazines and newspapers Statements to shareholders Speeches by
company leaders Public relations releases Sponsorship programs Web site
CASE 2
THE CABLE COMPANY
provide local radar and weather forecasts during the Local on the 8s segments on t
he Weather Channel. The satellite companies could not provide these special opti
ons. When Rachel took the job, she knew another issue was about to unfold. Cable
NOW had been able to transmit each citys local channels as part of the basic cabl
e package. Until this year, the satellite companies could not. Dish Network was
changing the mix. Dish Network had just signed a contract to provide the local s
tations to subscribers. DirecTV did not, but did offer a greater number of chann
els in the companys basic package. As a result, Rachel knew she had her work cut
out as the marketing department struggled to maintain share in each city. 1. Wha
t image or theme should CableNOW portray to subscribers? 2. Can you think of a w
ay to emphasize the advantages CableNOW has in an advertising campaign? 3. Do yo
u believe CableNOW will survive these changes over the next 10 years? Why or why
not?
Rachel Peterson knew she faced several major challenges as she took the job of m
arketing director for CableNOW. The company was the sole cable provider for six
communities in northeast Louisiana. All of the cities were essentially licensed m
onopolies in the sense that no other cable company could compete within the city
limits. In spite of this edge, however, competition was becoming a major problem
. Satellite television was the primary competitor for CableNOWs customers. Both D
irecTV and the Dish Network had set up operations in the six communities. The tw
o providers were able to charge lower prices for basic services. They had also s
tarted to compete by offering price reductions on installations. This made switc
hing from cable to satellite much easier for local residents. CableNOWs primary s
elling point was in the delivery of programming during bad weather. Thunderstorm
s and snowstorms completely disrupt a satellite signal. Severe weather is common
in that part of Louisiana; however, the weather events do not affect a cable pi
cture. CableNOW also held a competitive advantage because the company offered lo
cal business and real estate listings to subscribers. The firm also was able to
ENDNOTES
1. Donald Baack, Ron Jons Surf Shop: Building a Brand in a No-name Marketplace, IMC
Communique (Spring 2004), p. 5; www.ronjon.com accessed November 7, 2007. 2. Di
ane Brady, Making Marketing Measure Up, BusinessWeek (December 13, 2004), pp. 11213
; Top 10: Issues Facing Senior Marketers in 2007, Advertising Age 78, no. 17 (Apri
l 23, 2007), p. 23. 3. Jack Neff, J&J Jolts Old Media with $250M Spend Shift, Advert
ising Age 78, no. 12 (March 19, 2007), pp. 1, 29. 4. Donald Baack, Communication

Processes, Organizational Behavior. Houston: Dame Publications, Inc. (1998), pp.

31337. 5. James G. Hutton, Integrated Marketing Communications and the Evolution o
f Marketing Thought, Journal of Business Research 37 (November 1996), pp. 15562. 6
. Don Schultz, Invest in Integration, Industry Week, 247, no. 10 (May 18, 1998), p
. 20; Integrated Marketing Communications,
2009935072
Integrated Advertising, Promotion, and Marketing Communications, Fourth Edition,
by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Copyright 2010
by Pearson Education, Inc.

CHAPTER 1
Consortium Benchmarking Study, American Productivity & Quality Center (1999). 7.
Lauren Keller Johnson, Harnessing the Power of the Customer, Harvard Management U
pdate, 9 (March 2004), pp. 35; Patricia Seybold, The Customer Revolution. London:
Random House Business Books (2006). 8. U.S. Online Retail Sales, Digital Marketin
g & Media Fact Pack, Advertising Age, Crain Communications, Inc. (2007), p. 34.
9. Matt Powell, A Steady Stride, SCB 39, no. 11 (November 2006), p. 15. 10. Jean-N
oel Kapferer, The Roots of Brand Loyalty Decline: An International
Integrated Marketing Communications
23
Comparison, Ivey Business Journal 69, no. 4 (MarchApril 2005), pp. 16. 11. Debbie H
owell, Todays Consumers More Open to Try New Brands, DSN Retailing Today 43, no. 20
(October 25, 2004), pp. 2932. 12. Sandy Brown, Study: DVR Users Skip Live Ads, To
o, Brandweek, 45, no. 37 (October 18, 2004), p. 7; Jennifer Lach, Commercial Overl
oad, American Demographics 21, no. 9 (September 1999), p. 20. 13. Commercial Break
down, Brand Strategy (March 2004), pp. 4647. 14. Don E. Schultz and Philip J. Kitc
hen, Integrated Marketing Communications in
U.S. Advertising Agencies: An Exploratory Study, Journal of Advertising Research
(SeptemberOctober 1997), pp. 718. 15. Stephen J. Gould, Dawn B. Lerman, and Andrea
s F. Grein, Agency Perceptions and Practices on Global IMC, Journal of Advertising
Research (JanuaryFebruary 1999), pp. 726. 16. Ibid. 17. Parekh Rupal, Febreze Snif
fs Out New Target: Dorm Dwellers, Advertising Age (April, 2004), pp. 3435.
2009935072 Integrated Advertising, Promotion, and Marketing Communications, Four
th Edition, by Kenneth E. Clow and Donald Baack. Published by Prentice Hall. Cop
yright 2010 by Pearson Education, Inc.