Integrated Marketing Communications

1. Integrated Marketing Communications

2. What is IMC? • A new buzzword? • A new pitch for clients? • A new spin on the same old plan? • OR: A whole new approach that involves all aspects of a company’s business?

3. Brief history • B-to-b agencies have traditionally been doing more IMC-oriented efforts than consumer. • IMC is an evolutionary step in b-to-b marketing • New tools are fueling interest in IMC as marketers realize they are just that: tools

4. How widespread is IMC? According to our OutFront study: • 57.5% of companies DO NOT have an IMC program • Of the 39.1% that do, the leading companies are computer companies • 82.1% of computer software companies say they have an IMC program in place

5. How widespread is IMC? In the manufacturing sector: • 29.2% of all companies in this area have an IMC program • The category with the lowest IMC penetration is furniture & fixtures at 4.9% • Highest is computer hardware at 60.2%, followed by instrument & related products, 59.4%

6. What are marketers spending? In Business Marketing’s OutFront survey, we found that: • B-to-b marcomm spending: $73 billion • Overall spending was up 14.5% • Online spending grew 143% • On average, companies devoted 1.2% of total annual sales to b-to-b marcomm

7. Advertising: $17.7B Sales Promo. : $13.6B Trade shows: $12.6B Sales force management: $8B* *excludes compensation & commission Breaking it down • Direct mktg.: $5.7B • Online: $4.2B • Market rsrch.: $3B • Premiums/incentives: $2.7B

8. Interactive and IMC • How has interactive affected marketing methods? • What have marketers learned so far?

9. 1994 – The Internet • Browsers=Mosaic, Cello • Only a couple hundred .com Web sites • 9600 modems • Moving to 14.4

10. 1996 – The Internet • Search engines • Netiquette • Build me a web site! • AOL • Amazon.com • 14.4 modems How to make money from consumers?

11. 1997 – The Internet • Surfing is dead • Failed models • Stalled IPO’s • Where’s the money?

12. 1994 – B to B makes its mark • Firms see Web’s unique advantage • Real revenue and ROI • Have made initial commitment: The CEO/CFO listens! • E-commerce is exploding

13. 1999 – Real Maturation • Marketers develop Internet’s unique potential for reaching customers • They’re abandoning its copycat uses

14. The sales reality • Cisco Systems • $ 3 million / day • Dell Computer • $ 2 million / day • GE Information Systems • $ 4 billion / year • Grainger • $ 35 million / year

15. The 1998 Top Ten • Marshall Industries www.marshall.com • Cisco Systems www.cisco.com • Bay Networks www.baynetworks.com • Dell Computer www.dell.com • Compaq Computer www.compaq.com • Federal Express www.fedex.com • IBM www.ibm.com • W.W. Grainger www.grainger.com • 3Com Corp. www.3com.com • First Union www.firstunion.com

16. NM200 – Then and Now November 1997 • Dell Web revenues: $2 million a day • Cisco: 26% of its business online August 2000 • Dell Web revenues: $5 million+ a day • Cisco: 57% of its business online

17. What’s changed • The NM Top 10 are shifting from an order-taker mentality to a customer-centric focus. • B-to-b Web sites are moving from a marketing and transaction focus to knowledge management and customer service.

18. A look at the Top 50 • 60% accept orders and payments • Up from 46% in our first survey • 86% use their sites to distribute product • Up from 78% • 96% for customer service and support • Down from 100%

19. A look at the Top 50 • 88% distribute e-mail notices/newsletters • 71% are part of intranet or extranet • Up from 42% • 76% use their Web sites to recruit staff

20. A look at the Top 50 Other findings: • These sites have undergone anywhere from 0 to 9 redesigns. • Web staff sizes range from 1 to 125. • Cisco has been doing Web marketing the longest, with more than 5 years of experience. • Average site age: 31 months

21. What we learned • The leading Web marketers are moving quickly as the Net hits its third phase as a business tool. • Phase 1: Technophiles pester boss until they get the go-ahead to build a Web site. • Phase 2: Marketing wrestles control of Web site from IT. Site is digital replica of marketing department. Most companies still here.

22. Phase 3: The move to IMC • Sites are making the shift from vertical to horizontal • Instead of being vertical slices down the marketing stovepipe, smart companies are transforming their Web sites into horizontal cross-sections of their entire business operation. • Marketing shouldn’t lose control, but rather should lead this enterprise-wide transition to a customer-centric focus.

23. IMC Online • Offline marketing is a passive medium that tells customers what the brand is • Online marketing is an interactive medium that allows customers to experience the brand

24. IMC Online • Fed Ex: Allows customers to track their packages on its Web site • Dell: The Configurator lets users build their own computer system • MasterCard: Extends its offline “priceless” campaign to an online Seal of Approval for e-commerce sites to continue its trust/security message

25. The Future • As the stakes become larger, more companies will be turning to marketing to sell their goods and services • Interactive is a powerful tool when used well, but it is just one more tool • Marketing will continue to tie together all the tools in its arsenal through well-organized IMC programs

26. Reasons to join To get FREE marketing content To get free downloads To get discounts on our services To get access to our resource centre Many other Powerpoints in this series in the members area