An Introduction to Integrated Marketing Communications

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

The Growth of Advertising and Promotion

Expenditure in Billions of Dollars

U.S. Advertising U.S. Sales Promotion Advertising Outside U.S. $0 $50 $100 $150 $200 $250 $300 2002 1980

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IMCAudience Contact Points

Point of Purchase Internet/ Interactive Media Direct Mail Publicity Public Relations Packaging

Marketing Communications Audience

Direct Response Sales Promotion

Print Media

Broadcast Media

Outdoor

Events

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IMC Principles Extend Worldwide

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Traditional Approach to Marketing Communications

Sales Promotion

Point of Purchase

Publicity

Special Events

Media Advertising

Packaging

Direct Response

Public Relations Direct Marketing

Interactive Marketing

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Contemporary IMC Approach

Sales Promotion Direct Response

Packaging

Point of Purchase

Publicity

Media Advertising

Public Relations

Interactive Marketing

Direct Marketing

Special Events

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The US Army Uses TV Advertising as Part of Its IMC Program

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Marketing Revolution and Shifting Tides

From
Media Advertising Mass Media Manufacturer Dominance General Focus Low Agency Accountability Traditional Compensation Limited Internet Availability

Toward
Multiple Forms of Communication Specialized Media Retailer Dominance Data Based Marketing Greater Agency Accountability
Performance Based Compensation

Widespread Internet Availability

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Dell Focuses on Building a Relationship With Customers

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IMC and Branding

Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumers mind. IMC plays a major role in the process of developing and sustaining brand identity and equity.

2003 Brand Value

(Billions of Dollars)

1. Coca-Cola 2. Microsoft 3. IBM 4. GE 5. Intel 6. Nokia 7. Disney 8. McDonalds 9. Marlboro 10. Mercedes

$70.5 $65.1 $51.8 $42.3 $31.1 $29.4 $28.0 $24.7 $22.2 $21.4

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

Intels Advertising Helps Build Brand Equity

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Coordinated Marketing Mix Elements Build Image

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Basic Elements of the Promotional Mix

Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion

Publicity/Public Relations
Personal Selling
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Classifications of Advertising
National Advertising Retail/Local Advertising Primary vs. Selective Demand Advertising

Consumers

Business-to-Business Advertising Professional Advertising Trade Advertising

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Organizations

Great Advertising Can Strike a Responsive Chord with Consumers

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An Example of B-to-B Advertising

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Direct Marketing is Part of IMC

Direct Mail Internet Sales Direct Response Advertising

Direct Marketing
Shopping Channels Cataloging Catalogs
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Telemarketing

Bose Uses Direct Response Advertising

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Using the Internet as an IMC Tool

The Internet

Educates or Informs Customers

A Persuasive Advertising Medium

A Sales Tool or an Actual Sales Vehicle

Obtains Customer Database Information

Communicates and Interacts With Buyers

Provides Customer Service and Support

Builds and Maintains Customer Relationships

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American Airlines Encourages Customers to Do It All Online

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Sales Promotion Tools

Coupons Samples Premiums
Contests/Sweepstakes

Trade Allowances

POP Displays Training Programs Trade Shows Coop Advertising

Refunds/Rebates Bonus Packs Loyalty Programs Events

Consumeroriented
[For end-users]

Tradeoriented
[For resellers]

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Various Uses of Sales Promotion

Introduce New Products Get Existing Customers to Buy More

Combat Competition

Enhance Personal Selling

Sales Promotion

Attract New Customers

Maintain Sales In Off Season

Tie In Advertising & Personal Selling

Increase Retail Inventories

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

Advertising Versus Publicity

Factor Control Credibility Reach Advertising Great Lower Measurable Schedulable Publicity Little Higher Undetermined

Frequency
Cost Flexibility Timing

Uncontrollable
Low/Unspecified

High/Specific
High Specifiable
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Low Tentative

Publicity Vehicles
Feature Articles

News Releases

Publicity Vehicles

Interviews

Press Conferences

Special Events

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Public Relations Tools

Publicity Vehicles Special Publications

Community Activities

Corporate Advertising

Cause-related Marketing

Public Affairs Activities

Special Event Sponsorship

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DuPont Uses Advertising to Enhance Its Corporate Image

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Integrated Marketing Communications Planning Model

Review of Marketing Plan Promotional Program Situation Analysis Analysis of the Communications Process Budget Determination Develop Integrated Marketing Communications Programs Advertising Sales Promotion Sales Promotion Objectives Sales Promotion Strategy PR/ Publicity PR/ Publicity Objectives PR/ Publicity Strategy Personal Selling Personal Selling Objectives Personal Selling Strategy Direct Marketing Direct Marketing Objectives Direct Marketing Strategy Internet/ Interactive Internet/ Interactive Objectives Internet/ Interactive Strategy

Advertising Objectives
Message Strategy

Integration & Implementation of Marketing Communications Strategies Monitor, Evaluate & Control Promotional Program
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Marketing Plan

1. A detailed situation analysis

2. Specific marketing objectives

3. A marketing strategy and program

4. A program for implementing the strategy

5. A process for monitoring and evaluating performance

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