OVERVIEW OF INTEGRATED MARKETING COMMUNICATIONSChapter Objectives

Appreciate the practice of marketing communications and recognize the marcom tools used by practitioners.

Describe the philosophy and practice of integrated marketing communications (IMC). Understand the five key features of IMC. Recognize the activities involved in developing an integrated communications program. Identify obstacles to implementing an IMC program. Understand and appreciate the components contained in an integrative model of the

marcom decision-making process.

Chapter OverviewThis chapter discusses the nature of marketing communications, particularly at the brand level. Whereas the “4P” characterization has led to widespread use of the term “promotion” for describing communications with prospects and customers, the term marketing communications (marcom) is preferred by most practitioners and educators, and it is used to refer to the collection of advertising, sales promotion, public relations, event marketing, and other communication devices; comparatively, the term promotions is used to refer to sales promotions.

Integrated marketing communications (IMC) is the philosophy and practice of carefully coordinating a brand’s sundry marketing communication elements, and five key features of IMC are discussed: (1) start with the customer or prospect; (2) use any form of relevant contact or touch point; (3) speak with a single voice; (4) build relationships; and (5) affect behavior. Changes in marcom practices as well as obstacles to implementing IMC are given.

The latter portion of the chapter describes a model of the marketing communications decision-making process. The model includes fundamental decisions (i.e., targeting, positioning, setting objectives, and budgeting), implementation decisions (i.e., mixing elements, creating messages, selecting media, and establishing momentum), expected outcomes (i.e., enhancing brand equity and affecting behavior), and program evaluation.

The chapter appendix provides information on important U.S. trade associations in the marketing communications field.

Chapter 2Chapter 1

Appealing to Youth and Reinvigorating a Brand Image: State Farm’s nowwhat.com CampaignResearch showed that State Farm, the largest insurer of homes and automobiles in the US., was considered a brand for older consumers with limited appeal to 18-to-25-year-olds. How could the State Farm brand name be reinvigorated to appeal to this youthfulage group? Though the brand was well respected among this group, they considered the brand irrelevant for their financial needs. The solution: State Farm and its advertising agency devised an integrated marketing communication program, called the Now What? Campaign. In the multipronged campaign were TV and print advertisements, directmail pieces, a dedicated Web site, and a kickoff event at the Lollapalooza music festival in Chicago. The ads engaged consumers who before considered the product irrelevant. The campaign’s success is attributed to the fact that the various advertising messages did not attempt to oversell, but instead captured attention with humorous, slice-of-life executions that heighten curiosity and give young consumers a good reason to seek additional information from the nowwhat.com Web site.

Creating a Pepsi Commercial in ChinaTo reach China’s Internet-savvy youth and to engage their interest in Pepsi, the Pepsi Creative Challenge contest was created. Consumers were invited to develop a TV spotthat would star Jay Chow (also spelled Chou), a superstar throughout Asia. Contest entrants submitted scripts for a commercial, and other consumers logged on to a Web site then read and scored the scripts. The best ideas from highest-scoring entries were chosen and 15 finalists were identified. These scripts were posted online, and consumers voted for the best script. The winner received $12,500 and an opportunity to participate in the production of the commercial. More than 27,000 commercial scripts were submitted. A Pepsi Exec said “The reason why digital interactive marketing campaigns like the Pepsi Creative Challenge work is that they add value by creating a mechanism for consumers to get involved.” Of course, “getting involved” is simply another way of saying that consumers’ control over advertising content is increasing.

The Laundry Hanger as an Advertising Touch PointReaching large numbers of men with advertising messages is often difficult. Hanger Network arranges with laundry-supply firms to make and distribute laundry hangers carrying advertising messages for distribution in dry cleaners in the US. Mitchum deodorant used hangers as part of a multimedia campaign for its new brand of men’s deodorant. In a pretest of the hanger ads in two cities the brand experienced double-digit growth in consumer brand awareness and purchase intentions. Hanger Network’s ads have been used in approximately 40 percent of the 25,000 dry cleaning outlets in the United States.

MKTG 6220IMCSummer 2014Focus: Chapter 1: Overview of Integrated Marketing Communications

Elements of marketing communicationsTools: -Personal selling: Use of sales reps; -Advertising;-Sales promotions; includes point-of-purchase communications (buy one get one free, rebates)-Events sponsorship (Sponsorship marketing): Similar to celebrity endorsement-Public relations; includes publicity, which relates to develop relations with media to provide information on company/brand-Packaging: usually contains information and features that influence consumer decisions;-Internet: new media such as Facebook, MySpace, Youtube-See also Table 1.1 (Slide 4 in the PowerPoint notes)

(Differentiate b/w tools and tactics)Tools: Advertising, sales promotionsTactic: A specific thing u do. e.g. sponsorship in events.1/2 page or full page ad in Business Standard, 15% discount

Integrated Marketing Communications (IMC):Definition:-Is a communications process for planning, creation, integration, and implementation of diverse forms of marcom delivered to a brand’s targeted customers and prospects;-Has as its goal influencing or affecting behavior of targeted audience.

A benefit? Synergy, that is, the integration of multiple communication tools and media yield more positive communication results than the tools used individually. One result is non-duplication of efforts; hence the brand saves money on IMC.

Five Key Features of IMC: (MCQ and ESSAYS) important 1. Start with the customer or prospect: Individual consumer or business consumer must represent the starting point for all MarCom activities.

-Consumers in control-Reduced dependence on mass media

2. Use any form of relevant contact/touch point . Website is a contact point.(for example, all kinds of advertising media, including novel media; various touch points, e.g., floor of a supermarket or coffee sleeves; also some brands have, for example, had consumers shave information on their heads).

-360-degree branding: a brand’s touch point should be everywhere the target audience is-Not all touch points are equally engaging

3. Achieve synergy (multiple messages must speak with a single voice). 4. Build relationships (What are some ways in which brands build relationships with you?)

-Loyalty programs-Experiential marketing programs (retailtainment- idea where the retail space

becomes a place where u can entertain consumers; building brand experiences)

5. Affect behavior (ultimately, you want consumers to take action, for example, purchase the brand, repurchase, become brand loyal, tell others about the brand).

Marketing Communications Decision-Making Process (article in IMC booklet) important fr examBrands have to make two kinds of decisions: (a) Fundamental decisions; and (b) Implementation decisions.

Fundamental decisions: -Positioning: how the brand wants to be perceived; image in consumers’ minds.-Targeting: who the audience member is that the brand wants to reach, e.g., college students, 18-22 years, who live in Ohio.-Setting objectives: determining what the brand wants to achieve through its IMC efforts, e.g., “We want to generate a 5% increase in market share within the next 12 months.” don't confuse b/w marketing objs and marketing communications objectives-Budgeting: how much money will be allocated to each tool and on what basis.

All Marketing Communications Should Be: Directed to a particular target audience; clearly position the brand; created to achieve specific objectives; and undertaken to accomplish the objectives within budget constraints.

Implementation decisions-Mixing elements: using different tools in a coordinated manner (Ad, SP, PR, etc)-Creating messages: what the brand wants to say/signal to consumers-Selecting media: e.g., radio, TV, newspapers, magazines, Internet, billboards, POPs-Establishing momentum (ensuring that IMC efforts are maintained)

The brand is seeking certain outcomes:-Enhancing brand equity (the reputation, image, and goodwill of the brand)-Affecting behavior (see above)

Program evaluation: The brand also needs to evaluate its IMC efforts to ensure that they are working as expected-Determining measures to be used to assess performance (e.g., sales, market share, visits to website)-Providing feedback: if things are not working well-Taking corrective action: changes made of things are not working as expected

Media category: Mode of transmission. E.g. newspapaerMedia vehicle: Specific one under the category chosen. E.g. Business Standard.