Integrated Marketing Communications

1. Integrated Marketing Communications MKT 846 Professor West

2. What is IMC? • According to Ogilvy & Mather… IMC is “orchestration”

3. Orchestral Analogy • An orchestra consists of many instruments, each of which produces a different sound… • Whereas, marketing communication involves multiple media with differing characteristics.

4. Orchestral Analogy • If the sounds are not coordinated, the orchestra produces noise rather than music… • Similarly, an ill-conceived communications plan can send inconsistent messages, detracting from the brand.

5. Orchestral Analogy • An orchestra performs according to a musical score and under the direction of a conductor… • An IMC plan should detail which marketing communications functions and what media will be used a which times and to what extent. • The plan must be clearly communicated internally and overseen to make sure that everyone understands their role

6. What is the Purpose of IMC? • According to Duncan… The primary responsibility of IMC is to help the organization to: Acquire, Retain, and Grow Customers!

7. Focus on Brand Building • Strong brands add value • From the firm’s perspective… • Brand equity can be leveraged through extensions, collaborations, licensing • From the customer’s perspective… • Brands provide assurance, simplify our lives, reflect our personality • Brands transform products – goods as well as services – into something larger than the product itself.

8. Transactions to Relationships • The marketplace has changed: • Increased Competition • Distrustful Customers • New technologies • Recognition that it’s more profitable to retain than acquire customers • Managing customer relationships drive brand value • Communication is the foundation of all relationships, including brand relationships

9. IMC Helps Build Profitable Customer Relationships • Focuses on relationships instead of transactions • Establishes more personal, two-way communication with customers • Determines the best mix of marketing communication functions and media for a brand • Helps ensure that a brand has one voice, one look • Takes advantage of new media and new communication and information technologies • Builds trust in a brand by creating an open, customer-focused culture

10. Building Relationships WithBoots The Chemists

11. Case Study: Boots The Chemists • Largest pharmacy chain in Britain • J. Walter Thompson launched a strategic relationship building IMC campaign • Elements of the campaign • Consumer perceptions – “man in the white coat” • Trusted authority • New positioning “look good and feel good” • Understanding, stimulating, personalized, fulfilling, enjoyable • Campaign Objectives • Increase profitability by increasing frequency of visits and amount spent per visit • Enroll 8 million cardholders in 12 months • Achieve an incremental sales increase of 3.2 percent

12. Case Study: Boots The Chemists • Elements of the campaign (cont.) • Target Audience • 83% of customers are women • Focus on young women who could be motivated to “treat themselves” rather than “deal-seekers” • Creative Strategy • Boots Rescue • Resolution

13. Case Study: Boots The Chemists • Elements of the campaign (cont.) • Message Delivery • In-store material & staff training followed by television • Evaluation • Launch produced a database of 8 million BTC customers • More than 3 percent sales increase in year 1, 8 percent in year 2 • Cardholders’ average purchase was 8 percent high than non-cardholders

14. Relationship Intensity • Stages of Relationships • Awareness: brand is included in customer’s evoked set • Identity: customers display the brand, indicating an emotional attachment to it • Connected: customers communicate with the company in-between purchases • Community: customers communicate with each other • Advocacy: customers communicate with prospects, make referrals

15. Four Basic Components • A sound IMC plan will be based on researchand careful consideration of the situationand environment in which the effort will take place. • The plan will include four basic components: • Objectives – What you want accomplished • Strategies – Ideas for accomplishing objectives • Tactics – Actions for executing the strategy • Evaluation – Measures for evaluating success

16. Identify Markets Market Segmentation Select a Target Market Develop Positioning Marketing Plan Situation Strategy Marketing Target Analysis Development Mix Market Promotion to final buyer Company Competitors Collaborators Consumers Environment Product Decisions Pricing Decisions Channel Decisions Promotional Decisions Customer: • Consumer • Business Promotion to trade Reseller Purchase

17. Identify Markets Market Segmentation Select a Target Market Develop Positioning Marketing Plan Situation Strategy Marketing Target Analysis Development Mix Market Promotion to final buyer Company Competitors Collaborators Consumers Environment Product Decisions Pricing Decisions Channel Decisions Promotional Decisions Customer: • Consumer • Business Advertising Direct Marketing Interactive Marketing Sales Promotion Publicity and PR Personal Selling Internal Communication Promotion to trade Reseller Purchase

18. Course Overview • Syllabus highlights… • Materials: • Duncan, “IMC: Using Advertising & Promotions to Build Brands” • Purvis, “Which Ad Pulled Best,” 9th edition • Objectives: • To experience IMC planning by working together to develop a communications plan • To sharpen your skills at evaluating existing marketing communication material

19. Course Overview • Syllabus highlights… • Requirements • Your performance will be assessed through a combination measuring including: • Daily participation – 10% • Final (in-class) – 30% • Four “Mini-Projects” – 20% • Final Presentation & Paper – 40%

20. Course Overview • Webpage (http://fisher.osu.edu/~west_284/mkt846w04) • Syllabus • Schedule (daily slides) • Project Information • Resources

21. Project Details • Teams will develop a marketing communications plan for a product or service of their choosing • Criteria for selecting a product/service: • The brand could improve its market position by changing its communications strategy. • The brand is suited to TV advertising • Access to members of the target market for research purposes • Use of mini-projects to foster a systematic approach and provide feedback • Step 1: Situation Analysis • Step 2: Target selection, positioning, communication objectives, creative development

22. Project Details • Use of mini-projects to foster a systematic approach and provide feedback • Step 3: Sales & Trade Promotions • Step 4: Direct Marketing • Additional Elements • Budget, Evaluating Success • Various team members should adopt differing perspectives to be sure that all stakeholders are considered

23. TeamSelection • Each class member selects one “teammate” • However, you may not end up on the same team • Write your name and your intended teammate’s name on the form provided • You and your teammate should only submit one page • Ten pairs of names will be drawn to form four person teams • The remaining names … • Will be separated and drawn one at a time • If your name is picked you will have the opportunity to join any team with only four members

24. Next Time… • Catch up on reading • Duncan Chapters 1 - 4 • Set up “weekly meeting time” with your team and get cracking on picking your product or service