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An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Page 1: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

An Introduction to Integrated Marketing Communications

An Introduction to Integrated Marketing Communications

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

Page 2: 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

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

AdvertisingOutside U.S.

U.S. SalesPromotion

U.S. Advertising

2002

1980

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

Page 3: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

IMC–Audience Contact Points

Marketing Communications

Audience

Marketing Communications

Audience

Point of PurchasePoint of

Purchase PublicityPublicity Public Relations

Public Relations PackagingPackaging

DirectResponse

DirectResponse

Sales Promotion

Sales Promotion

EventsEventsOutdoorOutdoorBroadcast Media

Broadcast MediaPrint MediaPrint Media

Direct MailDirect Mail

Internet/Interactive

Media

Internet/Interactive

Media

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

Page 4: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

IMC Principles Extend Worldwide

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

Page 5: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Point ofPurchase

Publicity

PublicRelations

DirectMarketing

InteractiveMarketing

SpecialEvents

Packaging

SalesPromotion

DirectResponse

Traditional Approach to Marketing Communications

MediaAdver-tising

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

Page 6: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Contemporary IMC Approach

Point ofPurchase

Publicity

InteractiveMarketing

PublicRelations

DirectMarketing

SpecialEvents

PackagingSales

PromotionDirect

Response

MediaAdver-tising

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

Page 7: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

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

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

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

Page 8: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

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

Media AdvertisingMedia Advertising Multiple Forms of CommunicationMultiple Forms of Communication

Mass MediaMass Media Specialized MediaSpecialized Media

Manufacturer DominanceManufacturer Dominance Retailer DominanceRetailer Dominance

General FocusGeneral Focus Data Based MarketingData Based Marketing

Low Agency AccountabilityLow Agency Accountability Greater Agency AccountabilityGreater Agency Accountability

Limited Internet AvailabilityLimited Internet Availability Widespread Internet AvailabilityWidespread Internet Availability

Media AdvertisingMedia Advertising Multiple Forms of CommunicationMultiple Forms of Communication

Mass MediaMass Media Specialized MediaSpecialized Media

Manufacturer DominanceManufacturer Dominance Retailer DominanceRetailer Dominance

General FocusGeneral Focus Data Based MarketingData Based Marketing

Low Agency AccountabilityLow Agency Accountability Greater Agency AccountabilityGreater Agency Accountability

Marketing Revolution and Shifting Tides

From Toward

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

Page 9: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Dell Focuses on Building a Relationship With Customers

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

Page 10: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

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 consumer’s mind.

Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.

2003 Brand Value(Billions of Dollars)

1. Coca-Cola$70.5

2. Microsoft$65.1

3. IBM$51.8

4. GE $42.35. Intel

$31.16. Nokia

$29.47. Disney

$28.08. McDonald’s

$24.79. Marlboro

$22.210. Mercedes

$21.4

IMC plays a major role in the process of developing and sustaining brand identity and equity.

IMC plays a major role in the process of developing and sustaining brand identity and equity.

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

Page 11: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Intel’s Advertising Helps Build Brand Equity

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

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

Page 12: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Coordinated Marketing Mix Elements Build Image

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

Page 13: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

AdvertisingAdvertising

Direct MarketingDirect Marketing

Interactive/Internet Marketing

Interactive/Internet Marketing

Sales PromotionSales Promotion

Publicity/PublicRelations

Publicity/PublicRelations

Personal SellingPersonal Selling

AdvertisingAdvertising

Direct MarketingDirect Marketing

Interactive/Internet Marketing

Interactive/Internet Marketing

Sales PromotionSales Promotion

Publicity/PublicRelations

Publicity/PublicRelations

Basic Elements of the Promotional Mix

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

Page 14: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Primary vs. Selective Demand Advertising

Primary vs. Selective Demand AdvertisingPrimary vs. Selective Demand Advertising

Primary vs. Selective Demand Advertising

Business-to-Business AdvertisingBusiness-to-Business Advertising

Organizations

National AdvertisingNational Advertising

Retail/Local AdvertisingRetail/Local Advertising

Professional AdvertisingProfessional Advertising

Trade AdvertisingTrade Advertising

National AdvertisingNational Advertising

Retail/Local AdvertisingRetail/Local Advertising

Business-to-Business AdvertisingBusiness-to-Business Advertising

Professional AdvertisingProfessional Advertising

Classifications of Advertising

Consumers

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

Page 15: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Great Advertising Can Strike a Responsive Chord with Consumers

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

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

Page 16: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

An Example of “B-to-B” Advertising

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

Page 17: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

DirectResponse

Advertising

DirectResponse

Advertising

DirectResponse

Advertising

DirectResponse

Advertising

DirectMail

DirectMail

CatalogingCataloging

TelemarketingTelemarketing

InternetSales

InternetSales

ShoppingChannelsShoppingChannels

DirectMail

DirectMail

TelemarketingTelemarketing

CatalogsCatalogs

ShoppingChannelsShoppingChannels

Direct Marketing is Part of IMC

DirectMarketing

DirectMarketing

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

Page 18: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Bose Uses Direct Response Advertising

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

Page 19: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Builds and Maintains Customer

Relationships

Builds and Maintains Customer

Relationships

Obtains Customer Database

Information

Obtains Customer Database

Information

Communicates and Interacts With Buyers

Communicates and Interacts With Buyers

Provides Customer

Service and Support

Provides Customer

Service and Support

Educates or Informs

Customers

Educates or Informs

Customers

A Persuasive Advertising

Medium

A Persuasive Advertising

Medium

A Sales Tool or an Actual Sales Vehicle

A Sales Tool or an Actual Sales Vehicle

Obtains Customer Database

Information

Obtains Customer Database

Information

Communicates and Interacts With Buyers

Communicates and Interacts With Buyers

Provides Customer

Service and Support

Provides Customer

Service and Support

Educates or Informs

Customers

Educates or Informs

Customers

A Persuasive Advertising

Medium

A Persuasive Advertising

Medium

A Sales Tool or an Actual Sales Vehicle

A Sales Tool or an Actual Sales Vehicle

Using the Internet as an IMC Tool

TheInternet

TheInternet

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

Page 20: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

American Airlines Encourages Customers to Do It All Online

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

Page 21: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

• Consumer-oriented

• [For end-users]

• Trade-oriented

• [For resellers]

Sales Promotion Tools

EventsEvents

Loyalty ProgramsLoyalty Programs

Bonus Packs Bonus Packs

Refunds/Rebates Refunds/Rebates

Contests/SweepstakesContests/Sweepstakes

PremiumsPremiums

SamplesSamples

CouponsCoupons

CoopAdvertising

CoopAdvertising

TradeShowsTradeShows

TrainingProgramsTraining

Programs

POP DisplaysPOP Displays

TradeAllowances

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

Page 22: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Introduce New Products

Introduce New Products

Get Existing Customers to

Buy More

Get Existing Customers to

Buy More

Attract New Customers

Attract New Customers

Maintain Sales In Off Season

Maintain Sales In Off Season

Increase Retail Inventories

Increase Retail Inventories

Tie In Advertising & Personal

Selling

Tie In Advertising & Personal

Selling

Enhance Personal Selling

Enhance Personal Selling

Combat Competition

Combat Competition

Introduce New Products

Introduce New Products

Get Existing Customers to

Buy More

Get Existing Customers to

Buy More

Attract New Customers

Attract New Customers

Maintain Sales In Off Season

Maintain Sales In Off Season

Increase Retail Inventories

Increase Retail Inventories

Tie In Advertising & Personal

Selling

Tie In Advertising & Personal

Selling

Enhance Personal Selling

Enhance Personal Selling

Various Uses of Sales Promotion

SalesPromotion

SalesPromotion

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

Page 23: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Advertising Versus Publicity

AdvertisingAdvertising PublicityPublicity

TentativeTentative

LowLow

Low/Unspecified Low/Unspecified

Uncontrollable Uncontrollable

GreatGreat

LowerLower

Measurable Measurable

SchedulableSchedulable

High/Specific High/Specific

HighHigh

SpecifiableSpecifiable

UndeterminedUndetermined

HigherHigher

LittleLittle

FactorFactor

ControlControl

CredibilityCredibility

ReachReach

FrequencyFrequency

CostCost

FlexibilityFlexibility

TimingTiming

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

Page 24: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

InterviewsInterviewsInterviews Interviews

FeatureArticlesFeatureArticles

SpecialEventsSpecialEvents

PressConferences

PressConferences

NewsReleases

NewsReleases

FeatureArticlesFeatureArticles

SpecialEventsSpecialEvents

NewsReleases

NewsReleases

Publicity Vehicles

PublicityVehiclesPublicityVehicles

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

Page 25: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Corporate AdvertisingCorporate

Advertising Cause-related

MarketingCause-related

Marketing

PublicityVehicles

CommunityActivities

Public AffairsActivities

SpecialPublications

Special EventSponsorship

PublicityVehicles

CommunityActivities

Public AffairsActivities

SpecialPublications

Public Relations Tools

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

Page 26: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

DuPont Uses Advertising to Enhance Its Corporate Image

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

Page 27: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Integrated Marketing Communications Planning Model

Promotional Program Situation Analysis

Analysis of the Communications Process

Budget Determination

Develop Integrated Marketing Communications Programs

Review of Marketing Plan

AdvertisingSales

PromotionPR/

PublicityPersonalSelling

DirectMarketing

AdvertisingObjectives

SalesPromotionObjectives

PR/Publicity

Objectives

PersonalSelling

Objectives

DirectMarketingObjectives

MessageStrategy

SalesPromotionStrategy

PR/PublicityStrategy

PersonalSelling

Strategy

DirectMarketingStrategy

Integration & Implementation of Marketing Communications Strategies

Monitor, Evaluate & Control Promotional Program

Internet/Interactive

Internet/InteractiveObjectives

Internet/InteractiveStrategy

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

Page 28: An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

1. A detailed situation analysis1. A detailed situation analysis

2. Specific marketing objectives2. Specific marketing objectives

3. A marketing strategy and program3. A marketing strategy and program

4. A program for implementing the strategy4. A program for implementing the strategy

5. A process for monitoring and evaluating performance5. A process for monitoring and evaluating performance

1. A detailed situation analysis1. A detailed situation analysis

3. A marketing strategy and program3. A marketing strategy and program

4. A program for implementing the strategy4. A program for implementing the strategy

2. Specific marketing objectives2. Specific marketing objectives

The Marketing Plan

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


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