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Copyright © 2012 McGraw-Hill Companies, Inc., All right reversedMcGraw-Hill/Irwin

An Introduction to IntegratedMarketing Communications

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The Modern World of Marketing

• Rapidly changing media environment• Mass media losing viewers, readers,

listeners

• Digital media targets narrow audience

• Consumers not content to be passive message recipients

• Information now obtained from a myriad of sources

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Volkswagen Strategy

Integrated Marketing Strategy

Traditional MassMedia

Social Media

Sports Team

Sponsor

Point-of-Sale Kits

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Punch Dub

• Entertaining, interactive information

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The Growth of Advertising and Promotion

• Integral part of social and economic systems• Carefully prepared messages delivered

to carefully targeted audiences• Six-fold increase between 1980 and 2010

• New marketing channels• Internet ads (banner ads, videos,

webisodes)• Social media• Mobile marketing

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The Role of Marketing

Advertising & Promotion

Inform customers of a product or service

Convince them of its ability to satisfy their wants or needs

Help develop and sustain relationships

Nonprofit Organizations

Solicit donations

Offer intangible social and psychological satisfactions

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What is Marketing?

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

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What is Value?

• Customer’s perceptionof all the benefits of aproduct or service• Weighed against

costs of acquiringand consuming it

• Benefits can be…• Functional• Experiential• Psychological

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The Marketing Mix

• The Four Ps• Product• Price• Place• Promotion

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Contemporary IMC Approach

Point ofpurchase

Publicity

Interactivemarketing

Publicrelations

Directmarketing

Specialevents

PackagingSales

promotionDirect

response

Massmedia

advertising

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Growing Importance of IMC

• Value of IMC• Avoids duplication of marketing efforts• Synergy among promotional tools• More efficient and effective marketing

• Rapidly changing environment• Consumer behavior• Technology• Media consumption behavior• Proliferation of media

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The Marketing Revolution

Shift from traditional media ads to other forms of promotion/nontraditional media

Internet and social media changing how companies interact with consumers

Power shift: manufacturers to retailers

Database marketing

Greater ad agency accountability

Changes in how ad agencies are compensated

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The Role of IMC in Branding

BrandIdentity

Image orAssociations Performance

Name Packaging

Logo Design

Symbols

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Building Brands in a Recession

Consumers

Spend less money

Carefully scrutinize purchases

Rethink brand loyalties

Willing to trade off or down

More price sensitive

More value conscious

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Building Brands in a Recession

Reduce advertising budgets

Balance discounts/promos w/brand image

Must overcome consumer distrust

Change product marketing focus

Increase online social presence

Look for new ways to remain relevant

Companies

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Test Your Knowledge

Why are marketers decreasing the use of mass media advertising and increasing the use of integrated marketing communications?

A) The mass market has become fragmented B) New technologies gave consumers greater

control over the communication process C) Use of the Internet and electronic commerce

is growing D) Explosive growth in social networking E) All of the above

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The Promotional Mix

Interactive/ Internet

Marketing

Interactive/ Internet

MarketingAdvertisingAdvertising Direct

Marketing

Direct Marketing

Personal Selling

Personal Selling

Sales Promotion

Sales Promotion

Publicity/ Public

Relations

Publicity/ Public

Relations

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Advertising

• Paid, nonpersonal communication• About an organization, product,

service, or idea • With an identified sponsor• No immediate feedback from audience

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Non-Personal Media

• Mass media• TV• Radio• Magazines• Newspapers

• Benefits• Cost effective• Large audiences

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Advertising Classifications

Primary / Selective Demand Primary / Selective Demand

Business-to-Business Business-to-Business

Organizations

National National

Retail / Local Retail / Local

Professional Professional

Trade Trade

Consumers

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Forms of Direct Marketing

Database Management

Database Management

TelemarketingTelemarketing

Direct MailDirect Mail

Shopping ChannelsShopping Channels

CatalogsCatalogs

InternetSalesInternetSales

Direct SellingDirect Selling

Direct Response Ads

Direct Response Ads

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Direct Response Advertising

• Encourages consumers to purchase directly from the manufacturer

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Direct Response Advertising

Major Tools

Direct Mail

Television

Magazines

Internet

Forces for Change

Changing Lifestyles

Credit Cards

Toll-free Numbers

Rapid Internet Growth

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Interactive Marketing

• Interactive media• Internet• Kiosks• Interactive television• Cell phones• Other mobile devices

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Interactive Marketing

• Internet activities• Advertise products and services• Link ads and websites to search engines• Offer coupons, contests, sweepstakes• Conduct direct marketing• Do personal selling• Conduct public relations activities• Measure advertising and promotions

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Sales Promotion

Marketing activities that provideextra value or incentives to the…

Sales Force

Retailers

Ultimate Consumer

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Consumer vs. Trade Promotions

Consumer-oriented

Trade-oriented

Couponing, sampling, premiums, rebates, contests, sweepstakes,

POP materials

Wholesalers, distributors, retailers

Encourages immediate purchases

Promotional/merchandising allowances, price deals, sales

contests, trade shows

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Publicity

High credibility and low cost

High credibility and low cost

Not always under company control

Not always under company control

Is sometimes unfavorable

Is sometimes unfavorable

A news story, editorial, or

announcement to a mass audience

A news story, editorial, or

announcement to a mass audience

Not directly paid foror run under

identified sponsor

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Public Relations

• Management function• Evaluates public attitudes• Identifies items of public interest• Executes a program of action to earn

public understanding and acceptance

• Primary objectives• Establish and maintain a positive image

of the company among various publics

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Public Relations

• Uses publicity and other tools• Special publications• Community activities• Fund-raising events• Sponsorships• Public affairs

activities

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Personal Selling

• Person-to-person communication• A seller attempts to assist and/or

persuade prospective buyers to make a purchase or act on an idea

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IMC Audience Contact Tools

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Touch Points: Control vs. Impact

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IMC Planning Model

Promotional program situation analysis

Analysis of the communications process

Budget determination

Develop integrated marketing communications programs

Review of marketing plan

Advertising Salespromotion

PR/publicity

Personalselling

Directmarketing

Advertisingobjectives

Salespromotionobjectives

PR/publicityobjectives

Personalsellingobjectives

Directmarketingobjectives

Messagestrategy

Salespromotionstrategy

PR/publicitystrategy

Personalsellingstrategy

Directmarketingstrategy

Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program

Internet/interactive

Internet/interactiveobjectives

Internet/interactivestrategy

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Elements of a Marketing Plan

Detailed situation analysis

Marketing strategy and program

Specific marketing objectives

Program for implementing the strategy

Process for monitoring & evaluating performance

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Promotional Program Situational Analysis

Internal

Firm’s promotional organization/capabilities

Review of previous programs and results

Assess firm/brand image

Assess strengths and weaknesses of product or service

External

Customer analysis

Competitive analysis

Environmental analysis

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Analysis of Communications Process

• Communication decisions• Source and message• Communication channels• Media mix• Costs• Marketing goals• Communication objectives

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Budget Determination

• What will the promotional program cost?• How will the money be allocated?

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Developing the IMC Program

IMC Strategies

Creative Media

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Monitoring, Evaluation, Control

Basic Goals

Determine how well the programis doing, and why

Problem correction

Continual management feedback

Input for future promotions/strategies