Week 14 - Integrated Marketing Comm

1. 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?

2. 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

3. Changing communication landscape • Information Technology • Changes in channel power • Increase in competition • Brand parity & commodity perceptions • Integration of information • Decline in the effectiveness of mass-media advertising

4. 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.

5. Key components • The Foundation • Business Plan • Marketing Plan • Advertising tools • Promotional tools • Integration tools

6. The Marketing Plan • Situation analysis • Marketing objectives • Marketing budget • Marketing strategy • Marketing tactics • Evaluations

7. Who is involved? • Primary influencers & providers • Corporate Communications • Corporate Marketing • Corporate management • Legal

8. 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

9. 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

10. Unified Communication Strategy • The obvious key elements • Advertising • Public Relations • Employee Communications • Community Relations • Financial Communications

11. 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

12. Interactions • What factors can determine strategy? • Cost • Access to information or audience • Timing • Resources • History • Market conditions • How does each impact strategy?

13. 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?

14. 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?

15. New technology impact • All are not necessarily positive. • Increased number and variety of media outlets • Increased frequency • Increased message intrusion • Increased consumer resistance

16. 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. JPG, PUB475, Spring 2008

17. 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. JPG, PUB475, Spring 2008

18. Corporate Image • Components of image • Tangible • Intangible • Role of corporate image • Consumer perspective • Business-to-business perspective • Company perspective

19. Why corporate image matters • Consumer Perspective • Provide assurance • Unfamiliar settings • Little or no previous experience • Reduce search time • Provide psychological reinforcement • Provide social acceptance

20. 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

21. Corporate Image Development • Accurate reflection of firm • Reinforcing image • Rejuvenating image • Changing image • Addressing negative press

25. 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

26. Achievement Invent Caring What should a brand stand for? The most powerful brand ideas are simple, focused and discovered at the heart of the business.

27. Down-to-earth Smart consumer Quiet confidence On own terms Trusted Partner Consumer- focused Innovative, Pacesetter Clever, witty Warm, approachable Strong work ethic Devoted

28. Large, self-focused Risky Industrial Silly, crass, sarcastic Too serious Cheap Glamour, cold, Pretentious, generic Sloppy Ultramodern or old-fashioned

29. 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

31. 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.

32. Key Lexmark brand elements • Graphic Design • Logo • Corporate colors • Corporate fonts • Photography • Advertising & Promotions • Annual Report • Industrial Design • Interior Design • Corporate Style Guide

33. 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.

34. 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.

35. 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

36. Brand Equity • Provides quality assurance • Reduces search time • Allows company to charge more • Reduces brand parity • Consumers choose brands that are: • Salient • Memorable • Noteworth

37. 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?

38. Benefits of Brand Equity • Higher prices • Higher gross margins • Channel power • Additional retail shelf space • Reduces customer switching behavior • Prevents erosion of market share

39. Building Brand Equity • Research your current brand image. • Decide what makes the brand unique. • Communicate your brand’s uniqueness. • Spend heavy on advertising. • Make domination the goal. • Deliver on uniqueness.

40. 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?

41. 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

42. Trade promotions • Expenditures or incentives to push products through the channel.

43. Trade promotion tools • Trade allowances • Trade contests • Trade incentives • Training programs • Vendor support programs • Trade shows • Specialty advertising • Point-of-purchase displays

44. 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

45. 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

46. 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

47. Trade show attendees • Education seekers • Reinforcement seekers • Solution seekers • Buying teams • Power buyers

48. 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

49. 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

50. 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