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Integrated Marketing

Communications
Chapter 1
Kenneth E. Clow
Donald Baack

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

Todays Marketing Challenges

Rapidly changing media environment.

Difficult to reach target audiences and communicate with them.

Role of advertising changed (PUSH vs PULL.)

Mass media losing out to fractional media (micromarketing.)

Consumers control the communication process. They determine when they


want information, and how its delivered.

Hard to gain/keep the attention, trust, confidence, loyalty esp. Millennials &
Gen Z.

People spend 4 hours per day online.

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

Push vs. Pull

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

Whats IMC
The

coordination of all marketing communications


efforts.
Blends online and offline (traditional) advertising
messages.
A conversation with consumers built on interactivity
and individualization.
Social media, your website, videos (YouTube)
podcasts, webinars, case studies, white papers, ebooks.
Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

A (IMC) Definition
a concept of marketing communications planning
that recognizes the added value of a
comprehensive plan that evaluate the strategic
roles of a variety of communication disciplines-for
example general advertising, direct response, sales
promotion, and public relations-and combines
these disciplines to provide clarity, consistency,
and maximum communications impact.
4As
Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

Todays US Ad
Spend

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

Todays Global Ad Spend


Total

U.S. advertising & marketing communications


spend increase from $100B in 1980 to $589B in
2013.

$35B
Shift
$4B

in Internet advertising.
in ad spend from traditional to Internet.

in Mobile advertising.

America

is the MARKETING center of the


universe, accounts for 1/3 of global ad spend.

Significant

growth in global ad spending expected.

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

Why Advertising Matters


Important

promotional tool esp. for products and


services targeted to mass consumer audiences
(cars, packaged goods, drugs.)

Cost

effective way to reach large #s of


consumers.

Avg.

TV program on 10 major networks between


8-11pm reaches @10m households.

Can

be used to create favorable and unique


images and associations for a brand.

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Role of Marketing

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Role of Marketing
The process of planning and executing the
conception, pricing, promotion and distribution
of ideas, goods and services to create
exchanges that satisfy individual and
organizational objectives.
AMA

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Role of Marketing
Revised 2007

Marketing is the activity, set of institutions and


processes for creating ,communicating, delivering
and exchanging offerings that have value for
customers, clients, partners, and society at large.
AMA

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Sowhat is IMC
A

view of marketing that brings


online & offline marketing together.
A method for determining best
strategies to communicate and build
relationships with customers.
Ongoing strategic business process

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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A Final IMC Definition


IMC is a strategic business process used to plan, develop,
execute and evaluate coordinated, measurable, persuasive,
brand communications programs over time with consumers,
customers, prospects, employees, associates, and other
targeted relevant external and internal audiences. The goal is to
generate both short term financial returns and build long term
brand and shareholder value.
Don Schultz

Northwestern U.
Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Role of IMC in Brand


Building

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What is Brand Identity?

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Is it a LOGO?

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a tagline?

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Finger-Licking
Good.
We Bring Good
Things to Life.

Quality is
Job One.
Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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a jingle?

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Is Branding a
PROMISE?

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Memorable
Invaluable
Unique

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A Definition

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Brandings LOOONG History

Classic brand management dates back to the


early 1900s-Neil McElry (1931) famous P&G
memo on the importance of a brand-focused
management system.

As American as baseball, hot


dogs, apple pie, and Chevrolet.
From CLASSIC brand management
to brand leadership
Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Why Brand?

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Brands Matter to Consumers

Reduces the cost associated with searching for


products internally (how much to think about
them) and externally (how much to look for
them.)
Define product/service qualities.
Present product/service characteristics.
Chance to connect with product maker.
Sign of perceived qualityPRESTIGE.
Help consumers organize their knowledge
about a product to clarify their decision-making
and thus adds value to firms.
Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Brands Matter to Organizations

Reduce the risks for consumers in


their purchase decisions:

Functional risk: product doesnt


perform up to expectations.

Financial risk: Products not worth the


price paid.

Physical risk: product poses a physical


threat.

Social risk: Product results in


embarrassment from others.

Psychological risk: Product affects


mental well-being of the user.

Time risk: A products failure costs the


consumer a chance of finding another
acceptable product.

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

Signal characteristics to
consumers.

Serves an identification
purpose.

Legal protection such as


intellectual property rights
for certain brand attributes.

Investing in a brand helps


endow a product with
unique associations and
meanings that help to
differentiate it.

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Apple has ALWAYS


said WHY it does
what it does.

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Greatest TV ad
ever.

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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PC vs MAC

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Brands Matter to Orgs


Serve

an identification purpose.
Legal protection such as intellectual
property rights for certain brand attributes.
Investing in a brand helps endow a product
with unique associations and meanings
that help to differentiate it.

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Brands Matter to Orgs

Helps to organize a firms inventory and accounting


procedures

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Brands Matter to Orgs

Powerful means of securing a competitive


advantage by LIVING with consumers their
whole lives

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Brands Matter to Orgs

Enables firms an opportunity to charge a


PREMIUM for their products.
Brands represent enormously valuable
pieces of legal property.

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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B2B Branding Requirements

What is your firms UVP?


What is your target market?
Your position in the supply chain, for delivering
superior value?
How does your brand fit in the buying process?
Highlight your corporate brand!
Build your brand around intangibles like expertise,
trustworthiness, credibility.

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Todays Brand Leadership

Brand Category / Business Unit


management.
A brands market scope stretches ACROSS
markets.
Todays brand leader is a communications
specialist due to media & market
fragmentation.
Branding has become strategic & visionary.
Brand leadership role at the highest levels
of todays organizations.
Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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The Promotional Mix

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Direct Marketing

Organizations communicate directly with target consumers to


generate a response and/or transaction.

Entails database mgt, direct selling, telemarketing, and direct


response ads through direct mail, the internet, broadcast and
print media.

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Sales Promotions

Marketing activities that


provide extra incentives
to your salesforce,
distributors or
consumers to stimulate
immediate sales.

Consumer-oriented
examples: coupons,
sweepstakes, rebates,
contests.

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Publicity/PR
Non-personal

communication regarding an
organization, product, service, or idea not directly
paid for or under under identified sponsorship.

Typically a news story, editorial, or announcement


about an organization and its products/services.

Non-personal

communication to a mass audience,


and not directly paid for by the organization.

Not

under your control; not always positive.

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Personal Selling
Person-to-person

communication.
Seller attempts to assist/persuade prospective
buyers to purchase the organizations
products/services.
Involves direct contact between buyer and
seller.
The direct nature of communication gives the
marketer control.

Ms. Adiba Anis, Lecturer, School of Business, Bangladesh Open University

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Case Study

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