Week 14 - Integrated Marketing Comm Summary of an organization’s overall

communication efforts and the importance of a unified Communications perspective.

What affects it? Why is it important?

Integrated Marketing Communications

The coordination and integration of all marketing communication tools, avenues and sources within a company into a seamless program that maximizes the impact on consumers and other end-users at a minimal cost.

IMC includes all business-to-business, channel, customer, external communications and internal communications.

Clow

Information Technology Changes in channel power Increase in competition Brand parity & commodity perceptions Integration of information Decline in the effectiveness of mass-media

advertising

Changing communication landscape

Cultivating an IMC system

Stage 1 – Identify, coordinate and manage all forms of external communications.

Stage 2 – Extend the scope of communications to include everyone within the organization.

Stage 3 – Apply information technologies to the IMC program to maximize impact.

Stage 4 – Treat the IMC as an investment and not a departmental function.

Key components

The Foundation Business Plan Marketing Plan

Advertising tools Promotional tools Integration tools

The Marketing Plan

Situation analysis Marketing objectives Marketing budget Marketing strategy Marketing tactics Evaluations

Who is involved?

Primary influencers & providers Corporate Communications Corporate Marketing Corporate management Legal

Who is else involved?

Secondary influencers & providers Advertising and PR agencies Designers

Graphic, industrial, packaging Video & audio developers and producers New media

Programmers, web designers, telecom, etc. Social networks

Events planners and suppliers

Communication mix

Traditional business development Price, Product, Distribution, Promotion

Promotion Advertising Sales promotions Personal selling

Additional components Database marketing Direct marketing Sponsorship marketing Internet marketing Public relations Internal communications

Unified Communication Strategy The obvious key elements

Advertising Public Relations Employee Communications Community Relations Financial Communications

Unified Communication Strategy The less obvious key elements

Marketing & Sales support Point of Purchase (POP) Web / online Store design, displays, uniforms, etc. Industrial design Packaging Sales training

Interactions

What factors can determine strategy? Cost Access to information or audience Timing Resources History Market conditions

How does each impact strategy?

Interactions

All communication programs interact to some degree.

What opportunities does this interaction offer? Reinforce similar or parallel messages Target same or related audiences Expand pitch to new or different audiences

Why is context important?

Technology

What new technologies are changing business? Traditional cellphones Blackberries (walk-around email, Web access, etc.) Instant messaging Blogs Color laser printers P2P downloads MySpace and other social networks

How is each changing it? What are the specific or unique impacts?

New technology impact

All are not necessarily positive. Increased number and variety of media outlets Increased frequency Increased message intrusion Increased consumer resistance

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Week 14b -- Written Report

Written report accompanied by oral presentations in class Written report must be typed, double-spaced, be no longer

than three pages and no shorter than two pages.

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Written report #2

Two-page proposal outlining a strategic public relations campaign for some aspect of EKU The University itself, one of the academic units, the

athletic department, etc. The proposal must be written in strict RPCE format

and must include all elements of the four-step process. Each proposal must recommend research, planning,

communication and evaluational procedures, Including but not limited to elements such as target

audiences, messaging, programming, outreach material, calendars, budgets and legal ramifications.

Final project due April 25.

Corporate Image

Components of image Tangible Intangible

Role of corporate image Consumer perspective Business-to-business perspective Company perspective

Why corporate image matters Consumer Perspective

Provide assurance Unfamiliar settings Little or no previous experience

Reduce search time Provide psychological reinforcement Provide social acceptance

Why corporate image matters Company Perspective

Extension of name to new products. Ability to charge more Consumer loyalty More frequent purchases by customers Positive word-of-mouth communications Attracts higher quality employees

Accurate reflection of firm Reinforcing image Rejuvenating image Changing image Addressing negative press

Corporate Image Development

A Company’s Brand

It’s not just ads or logo. It’s who you are. It’s a promise to all your publics. It tells your customers what to expect. It conveys your values, personality, standards It lives everywhere a customer might meet the company Its stewardship is influenced by the whole organization

What should a brand stand for?The most powerful brand ideas are simple, focused

and discovered at the heart of the business.

Achievement

Invent

Caring

Clever, witty

Quietconfidence

Down-to-earth

Strong work ethic

Smart consumer

On own terms

Innovative,Pacesetter

Devoted

Consumer-focused

Warm,approachable

TrustedPartner

SloppyUltramodern or old-fashioned

Glamour, cold, Pretentious, generic

Risky

Cheap

Silly, crass,sarcastic

Industrial

Large, self-focused

Too serious

Core strengths and differentiators Lexmark’s strength is in its unique combination of:

Total focus on printing Innovation (and ownership) across all three print technologies Relevancy of product line: Printers for the smallest consumer to the

largest of enterprise (geared to their specific needs) Personal touch, dedication, going above and beyond for our customers

At Lexmark, our mission is to

make it easier for businesses and

consumers to move information

between the paper and digital worlds.

We understand what our customers

really want. Solutions. Simplicity.

It’s how we uncomplicate

Printing, business, life.

Key Lexmark brand elements

• Graphic Design– Logo – Corporate colors – Corporate fonts – Photography

• Advertising & Promotions • Annual Report • Industrial Design • Interior Design • Corporate Style Guide

Brand Identification

Great enterprise leaders take on the “role” (the brand) of their company or product. Steve Jobs is Apple. Bill Gates is Microsoft. Larry Ellison is Oracle. Sam Walton is (was) Wal-Mart. Richard Branson is Virgin Group. Anita Roddick is The Body Shop. Georgio Armani is Armani. Charles Schwab is Charles Schwab. Oprah is Oprah.

Branding from the Heart (according

to Tom Peters) REAL Branding is... Personal. REAL Branding is about ... Integrity. REAL Branding is... Consistency and Freshness. REAL Branding is... Memorable. REAL Branding is a ... Great Story. REAL Branding... turns on the Checkout Clerk as much as the

consumer. REAL Branding... Matters. (To employees, customers, suppliers.) REAL Branding answers ... WHO ARE WE? REAL Branding is... Available to One and All... Large and Small. REAL Branding centers on... Uniqueness & Dramatic Difference. REAL Branding... Clarifies One Great Thing. REAL Branding is about ... Passion & Emotion. REAL Branding is about ...why We Get Out of Bed in the Morning. REAL Branding... can't be faked. REAL Branding is... Systemic, 24/7, All-departments, All-hands Affair.

Promoting Brand Image

Creating the right image Convey clear message Fit with company and product

Rejuvenating an image Easier than changing image Add new elements, but maintain current

image Changing an image

Extremely difficult

Provides quality assurance Reduces search time Allows company to charge more Reduces brand parity Consumers choose brands that are:

Salient Memorable Noteworth

Brand Equity

Developing Strong Brands

What are most compelling benefits? What emotions are elicited by brand? What one word best describes brand? What is important to consumers in the purchase

of the brand?

Benefits of Brand Equity

Higher prices Higher gross margins Channel power Additional retail shelf space Reduces customer switching behavior Prevents erosion of market share

Building Brand Equity

1) Research your current brand image.2) Decide what makes the brand unique.3) Communicate your brand’s uniqueness.4) Spend heavy on advertising.5) Make domination the goal.6) Deliver on uniqueness.

Managing change

How do markets change over time? How do companies change over time?

What makes them change? Is it intentional, accidental or both? Should it be encouraged? Discouraged? Why?

Changes in Private Brands Quality improvements Lower prices Higher store loyalty Lower loyalty to manufacturer brands Increase in advertising of private brands Increase in quality of private brand store

displays

Trade promotions

• Expenditures or incentives to push products through the channel.

Trade promotion tools

Trade allowances Trade contests Trade incentives Training programs Vendor support programs Trade shows Specialty advertising Point-of-purchase displays

Training programs

Frequently provided by manufacturers Goal is to positively bias salespeople Provide detailed knowledge of product or service

Competitive knowledge can offset real or perceived advantages of competition

Must be ongoing and continually refreshed New product introductions Employee turnover

Vendor support programs Billback programs Co-op advertising programs Unclaimed co-op dollars

$8 million Errors in filing Inaccurate purchase accruals Retailers unaware Restrictions not followed

Trade shows

Rank 3rd in b2b expenditures Costs per trade show

Manufacturer - $70,000 - $100,000 per show Retailers - $800 per attendee

Average trade show 700 exhibiting firms 13,400 attendees

Trade show attendees

Education seekers Reinforcement seekers Solution seekers Buying teams Power buyers

Point-of-Purchase

Location is key Last chance to reach buyers 50% of money spent in store is unplanned 70% of brand choices are made in store Average increase per display is 9.2% Half of POP displays not effective

Design, message, location

POP trends

Integration with websites Displays that routinely change messages Better tracking of POP results Use of POS data

Affiliate programs, e.g. Kroger Card

Objectives of trade promotions Obtain initial distribution Obtain retail shelf space Maintain established brands Counter competitive actions Increase order size Build retail inventories Reduce excess inventories Enhance channel relationships

Concerns of trade promotions High costs Tend to use outside of IMC Plan Over-reliance on trade promotions Used for short-term sales goals Erosion of brand image Impact on small manufacturers