Overview of Integrated Marketing Communications

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Overview of Integrated Marketing

Communications

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter Objectives

After reading this chapter you should be able to:1. Appreciate the practice of marketing

communications and recognize the marcom tools used by practitioners.

2. Differentiate among the following terms: the marketing mix, communications, marketing communications, the promotional mix, and integrated marketing communications.

3. Describe the philosophy and practice of integrated marketing communications (IMC) and the five key features of IMC.


Chapter Objectives (cont’d)

4. Recognize the activities involved in developing an integrated communications program.

5. Identify obstacles to implementing an IMC program.

6. Understand and appreciate the components contained in an integrative model of the marcom decision-making process.


Pepsi Loot and Foursquare


Examples of Successful Campaigns and Understanding Consumer Behavior

•Means-End Chaining:

•Tropicana OJ Commercials:

Attributes Consequences Values(the means) (the ends)

1. Drink Tropicana OJ

quiet refreshment

satisfaction/nutrition

2. Drink Enriched Tropicana OJ

added calcium/ refreshment satisfaction/reduce

osteoporosis


Marketing and the Marketing Concept•Marketing (Kotler 1980): human activity

directed at satisfying needs and wants through exchange processes.

•Is marketing = selling??•The idea of the marketing concept is to adapt

the company’s offering to the needs and wants of the customer.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Exchange: An Important Part of Marketing

• For exchange to occur, there must be ....1. Two parties and each party must ...2. have something of value to the other party,3. be capable of communication and delivery, 4. be free to accept/reject the offer, and there

must be 5. an agreement to terms.

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Communications and Marketing Communications

• Communications: the process where individuals share meaning and establish a commonness of thought.

• Marketing Communications: the collection of all elements of a firm’s marketing mix that facilitate exchange by establishing shared meaning with the firm’s customers.• Marketing Communications -> B2B, B2C, non-profits • Marketing Mix: specific collection of certain levels of

elements of a brand’s 4Ps – product, price, place and promotion.

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Figure 1.1: Social Media Venn Diagram


Figure 1.2: Elements of Promotional Mix

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Examples of the “Tools of Marcom”

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Promotion Management and Objectives of Promotion• Promotion Management: coordination of

promotional mix elements in setting objectives, establishing budgets, designing programs, evaluating performance, and taking corrective action.

• General Objectives of Promotion:1. Inform2. Persuade3. Induce Action

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Branding

Brand

A name, term, sign, symbol, or design intended to identify the goods and services of one seller or groups

of sellers and differentiate them from those of competition.

Brand equity

The goodwill that an established brand has built up over its existence.


Marketing Communications at the Brand Level

The key for brand communications is to

differentiate one company’s offering

from another’s

A well-known and respected brand is an

invaluable asset

A successful brand can create barriers to entry

for competitors

Brand


Integrated Marketing Communications

Integrated Marketing Communications (IMC)

The coordination of the promotional mix elements with each other and with other elements of the brand’s marketing mix such

that all elements speak with one voice.

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The Integration of Marketing Communications

• Why Not Always Integrated?• Tradition of separate communication tools• Influence of specialized outside suppliers• Managerial parochialism

• Fear of budget cutbacks• Loss of power and authority

• Resistance of outside suppliers to broadening their functions

• Skeptics who consider IMC to be a fad

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• The payoff from IMC is that brand managers achieve:

• The integration of multiple communication tools and media yield more positive communication results than the tools used individually

The Meaning of Synergy

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Five Key Features of IMC

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IMC Feature #1: Start with Customer or Prospect

Identify Marcom Program Goals

Determine Best Way to Allocate

Marketing Budget

Media-Neutral Approach

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IMC Feature #2: Use Any Form of Relevant Contact

•An example of a Touch Point, or 360° Marketing: Hershey Foods


IMC Feature #3: Achieve Synergy

•Multiple messages must speak with a single voice

•Takeaway:• A brand’s positioning statement must:

• Present a clear idea of the brand in its target market’s mind

• Consistently deliver the same unified message across all media channels on all occasions.


• Build relationships (e.g., Harley Davidson) rather than engage in flings

• Costs 5-10x more to acquire a new customer than keep a current one

• Takeaway:• Loyalty programs promote long-term

relationships between customers and brands that lead to customer retention.

• Experiential marketing programs can create brand experiences that make positive and lasting impressions on customers.

IMC Feature #4: Build Relationships

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IMC Feature #5: Affect Behavior

•Don’t lose focus of the ultimate objective: Affect Behavior

• IMC must do more than just influence brand awareness or enhance consumer attitudes – the objective is to move people to action.


Changes in Marketing Communication Practices

• Reduced dependence on mass media advertising.

• Increased reliance on highly targeted communication methods.

• Heightened demands on suppliers.• Increased efforts to assess communications’

return on investment.

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Obstacles to Implementing IMC

• Few providers have the skills required to execute.

• Mass media campaigns easier than direct-to-customer.

• The real challenge is to make sure that tools are consistently executed.

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SWOT Analysis

Strengths

Le

ve

ra

ge

OpportunitiesL

ev

er

ag

e

Threats

Le

ve

ra

ge

Weaknesses

Le

ve

ra

ge

ConstraintsVulnerabilities

Internal External


Figure 1.3: Making Brand-Level Marcom Decisions and Achieving Desired Outcomes


Making Fundamental Marcom Decisions

Micromarketing: The customizing of products and communications to smaller segments (e.g., toothpaste).


Marketing Mix A

Marketing Mix B

One Marketing Mix

One Marketing Mix

Target Market Selection Strategies

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Segment A

Segment B

Segment B

All Markets

Segment A

Segment C

2. Differentiated Marketing

3. Concentrated Marketing

1. Undifferentiated Marketing


Marcom Implementation Decisions

•Mixing elements•Creating messages•Selecting media•Establishing momentum

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Marcom Outcomes


Program Evaluation


A Concluding Mantra: All Marketing Communications Should be…

Directed to a Particular Target Market

Undertaken to Accomplish the Objective within the Budget Constraint

Clearly Positioned

Created to Achieve a Specific Objective

Overview of Integrated Marketing Communications

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