An Introduction to Integrated Marketing Communications

1. An Introduction to IntegratedMarketing Communications

2. Gatorade Case History • In 1965 football coach of Gators met with medical researchers • Players’ electrolytes and carbs not being replenished • Gatorade created to address these needs • Official sports drink of NFL, MLB, NHL, NBA • High profile endorsers Michael Jordan / Serena Williams

3. Gatorade Case History - continued • In 2008, economy crashed • Gatorade sales declined due to new products launched • Energy bars / vitamin waters / protein powders • Consumers had more sports nutrition choices • Gatorade losing relevance among target audience

4. Gatorade Case History - continued • In 2010, launched G Series product line (drinks, chews, shakes, powders and bars) • Major social media push (along with sponsorships, advertising and IMC) • Sales grew 9% in 2012 and retains leadership position

5. Gatorade IMC Strategy Traditional MassMedia Social Media Integrated Marketing Strategy Sponsor-ships Point-of-Sale

6. Change in Media Landscape • Past: only mass media • Today: Fragmented and Targeted • Average HH has over 130 TV channels; DVD’s /Video-On-Demand • Internet ads/social media/mobile marketing • Consumers in control of their content • Need for well planned/executed Integrated Marketing Communications

7. What is Marketing? • A process of • planning and executing • the conception, pricing, promotion and distribution • of ideas, goods and services • to create exchanges that satisfy individual / organizational objectives

8. Other Marketing Concepts • Marketing Exchange • Two or more parties with something of value • Desire to give up that something • Way to communicate with each other • Not all exchanges are money: nonprofit donations for goodwill • Relationship Marketing • More than one time sale

9. What is Value? • Benefits of aproduct vs. costs of acquiring it • Benefits can be functional/experiential/ psychological • Costs are $ paid/learning how to use it/ maintaining it

10. The Marketing Mix • The Four Ps • Product • Price • Place • Promotion • How to combine elements for an effective marketing program • Good advertising doesn’t replace poor product / priced improperly / • can’t find it in stores

11. Integrated Marketing Communications • Concept of planning • Recognizes added value of a comprehensive plan • That combines a variety of communication disciplines • Advertising/sales promotion/publicity • To provide clarity, consistency and maximum communications impact

12. Contemporary IMC Approach Sales promotion Direct response Packaging Massmediaadvertising Point of purchase Public relations Publicity Digital – Internet Marketing Direct marketing Special events • By coordinating marketing communication efforts: • Avoid duplication • Increase synergy • More efficient and effective programs

13. Test Your Knowledge Why are marketers decreasing the use of mass media advertising and increasing the use of integrated marketing communications? A) The mass market has become fragmented B) New technologies gave consumers greater control over the communication process C) Use of the Internet and electronic commerce is growing D) Explosive growth in social networking E) All of the above

14. What is Brand Identity? Image orAssociations Performance BrandIdentity Name Packaging Logo Design Symbols

15. Class Exercise In the next ONE MINUTE: -Write down as many brands, in any category, that you can think of GO!

16. World’s Top 10 Brands • Apple • Google • Coca-Cola • IBM • Microsoft • General Electric • McDonald's • Samsung • Intel • Toyota Source: Interbrand’s Best Global Brands 2013

17. What is Promotion? • The coordination • of all seller initiated efforts • to set up channels of information and persuasion • in order to sell goods or services

18. The Promotional Mix Advertising Direct Marketing Digital/ Internet Marketing Sales Promotion Publicity/ Public Relations Personal Selling Basic tools used to accomplish objectives

19. Advertising • Paid, non-personal communication • About an organization/product/service • With an identified sponsor • No immediate feedback from audience • EXCEPTION: PSA (Public Service Announcement) – space donated by media

20. Advertising – continued • Mass media • TV • Radio • Magazines • Newspapers • Benefits of Advertising • Cost effective • Reaches large audiences Advertising is best way to build brand image

21. Advertising to Consumer Markets National advertising • Done on a nationwide basis or in most regions of the country Retail/local advertising - Encourage consumers to: • Shop at a specific store • Use a local service • Patronize a particular establishment Primary- versus selective-demand advertising • Primary-demand - Stimulates demand for the general product class or entire industry • Selective-demand - Creates demand for a specific company’s brands

22. Advertising to Business / Professional Markets Business-to-business advertising • Targets individuals who buy or influence the purchase of industrial goods or services for their companies Professional advertising • Targets professionals, encouraging them to use a company’s product in their business operations Trade advertising • Targets marketing channel members, encouraging them to stock, promote, and resell the manufacturer’s branded products to their customers

23. Leading U.S. Advertisers • Proctor & Gamble • General Motors • Comcast • AT&T • Verizon • Ford • L’Oreal • JPMorgan / Chase • American Express • Toyota • Fiat / Chrysler • Walt Disney • Walmart • Time Warner • Target • Johnson & Johnson • Pfizer • Bank of America • Macy’s • Berkshire Hathaway • Anheuser-Busch • Sears

24. Direct Marketing Organizations communicate directly with customers to generate response/sale Direct Response Ads Catalogs Direct Mail Telemarketing Direct Selling InternetSales Shopping Channels Database Management

25. Direct Response Advertising • Encourages consumers to purchase directly from the manufacturer

26. Direct Response Advertising - continued Media Used Reason for Growth Direct Mail Changing Lifestyles Television Credit Cards Magazines Toll-free Numbers Internet Rapid Internet Growth

27. Digital/Internet Marketing Interactive media • Allow users to participate in and modify the content of the information they receive in real time Social media • Online means of communication and interactions used to create, share, and exchange content Mobile marketing • Messages delivered are specific to a consumer’s location or consumption situation

28. Advantages of Digital/Internet Marketing Interactive nature Capability to precisely measure the effects of advertising and other forms of promotion

29. Sales Promotion Sales Force Ultimate Consumer Retailers Marketing activities that provideextra value or incentives to the…

30. Consumer vs. Trade Promotions Consumer-oriented Couponing, sampling, premiums, rebates, contests, sweepstakes, POP materials Encourages immediate purchases Promotional/merchandising allowances, price deals, sales contests, trade shows Trade-oriented Wholesalers, distributors, retailers

31. Sales Promotion • Increased emphasis due to: • Declining brand loyalty • Increased consumer sensitivity to promotional deals • Retailers’ demand for more trade promotion support from companies

32. Publicity A news story, editorial, or announcement to a mass audience Advantages: High credibility and low cost Non-personal/not directly paid forby identified sponsor Disadvantages: Is sometimes unfavorable; Not always under company control Tools: News release; feature articles; press conference

33. Public Relations • Management function • Evaluates public attitudes • Identifies items of public interest • Executes a program of action to earn public understanding and acceptance • Primary objectives • Establish and maintain a positive imageof the company among various publics

34. Public Relations • Tools: • Special publications • Community activities • Fund-raising events • Sponsorships • Public affairsactivities

35. Personal Selling • Person-to-person communication • Face to face or telephone sales • Persuade target to make a purchase • Provides immediate feedback to tailor message

36. IMC Audience Contact Tools Determine which tools most effective in reaching target

37. Touch Points: Control vs. Impact Every opportunity consumer sees/hears/experiences product

38. IMC Planning Model Review of marketing plan Promotional program situation analysis Analysis of the communications process Budget determination Develop integrated marketing communications programs Advertising Sales promotion PR/ publicity Personal selling Direct marketing Internet/ interactive Advertising objectives Sales promotion objectives PR/ publicity objectives Personal selling objectives Direct marketing objectives Internet/ interactive objectives Message strategy Sales promotion strategy PR/ publicity strategy Personal selling strategy Direct marketing strategy Internet/ interactive strategy Integrate and implement marketing communications strategies Monitor, evaluate and control IMC Program

39. Elements of a Marketing Plan Detailed situation analysis Specific marketing objectives Marketing strategy and program Program for implementing the strategy Process for monitoring & evaluating performance

40. Promotional Program Situational Analysis Internal External Firm’s promotional organization/capabilities Review of previous programs and results Assess firm/brand image Assess strengths and weaknesses of product or service Customer analysis Competitive analysis Environmental analysis

41. Types of Objectives • Marketing Objectives • What is to be accomplished by marketing programs • Stated in terms of sales, market share, profitability • Communication Objectives • What is the nature of message to be communicated • Creating awareness/image/favorable attitude/knowledge about product and it’s benefits

42. Budget Determination • What will the promotional program cost? • How will the money be allocated?

43. Developing the IMC Program IMC Strategies Creative Media Basic appeal/message Which communication channel to use

44. Monitoring, Evaluation, Control Basic Goals Determine how well the programis doing, and why Problem correction Continual management feedback Input for future promotions/strategies