Overview of Integrated Marketing Communications

1. Overview of Integrated Marketing Communications

2. Chapter Objectives After reading this chapter you should be able to: • Appreciate the practice of marketing communications and recognize the marcom tools used by practitioners. • Differentiate among the following terms: the marketing mix, communications, marketing communications, the promotional mix, and integrated marketing communications. • Describe the philosophy and practice of integrated marketing communications (IMC) and the five key features of IMC.

3. Chapter Objectives (cont’d) • Recognize the activities involved in developing an integrated communications program. • Identify obstacles to implementing an IMC program. • Understand and appreciate the components contained in an integrative model of the marcom decision-making process.

4. Pepsi Loot and Foursquare

5. Examples of Successful Campaigns and Understanding Consumer Behavior • Means-End Chaining: • Tropicana OJ Commercials: AttributesConsequencesValues (the means) (the ends) Drink Tropicana OJ quiet refreshmentsatisfaction/nutrition Drink Enriched Tropicana OJ added calcium/ refreshmentsatisfaction/reduce osteoporosis

6. Marketing and the Marketing Concept • Marketing(Kotler 1980): human activity directed at satisfying needs and wants through exchange processes. • Is marketing = selling?? • The idea of the marketing concept is to adapt the company’s offering to the needs and wants of the customer.

7. Exchange: An Important Part of Marketing • For exchange to occur, there must be .... • Two parties and each party must ... • have something of value to the other party, • be capable of communication and delivery, • be free to accept/reject the offer, and there must be • an agreement to terms.

8. Communications and Marketing Communications • Communications: the process where individuals share meaning and establish a commonness of thought. • Marketing Communications: the collection of all elements of a firm’s marketing mix that facilitate exchange by establishing shared meaning with the firm’s customers. • Marketing Communications -> B2B, B2C, non-profits • Marketing Mix: specific collection of certain levels of elements of a brand’s 4Ps – product, price, place and promotion.

9. Figure 1.1: Social Media Venn Diagram

10. Figure 1.2: Elements of Promotional Mix

11. Examples of the “Tools of Marcom”

12. Promotion Management and Objectives of Promotion • Promotion Management: coordination of promotional mix elements in setting objectives, establishing budgets, designing programs, evaluating performance, and taking corrective action. • General Objectives of Promotion: • Inform • Persuade • Induce Action

13. Branding Brand A name, term, sign, symbol, or design intended to identify the goods and services of one seller or groups of sellers and differentiate them from those of competition. Brand equity The goodwill that an established brand has built up over its existence.

14. Marketing Communications at the Brand Level A well-known and respected brand is an invaluable asset The key for brand communications is to differentiate one company’s offering from another’s A successful brand can create barriers to entry for competitors Brand

15. Integrated Marketing Communications Integrated Marketing Communications (IMC) The coordination of the promotional mix elements with each other and with other elements of the brand’s marketing mix such that all elements speak with one voice.

16. The Integration of Marketing Communications • Why Not Always Integrated? • Tradition of separate communication tools • Influence of specialized outside suppliers • Managerial parochialism • Fear of budget cutbacks • Loss of power and authority • Resistance of outside suppliers to broadening their functions • Skeptics who consider IMC to be a fad

17. The Meaning of Synergy • The payoff from IMC is that brand managers achieve: • The integration of multiple communication tools and media yield more positive communication results than the tools used individually Synergy

18. Five Key Features of IMC

19. Media-Neutral Approach Identify Marcom Program Goals Determine Best Way to Allocate Marketing Budget IMC Feature #1: Start with Customer or Prospect

20. IMC Feature #2: Use Any Form of Relevant Contact • An example of a Touch Point, or 360° Marketing: Hershey Foods

21. IMC Feature #3: Achieve Synergy • Multiple messages must speak with a single voice • Takeaway: • A brand’s positioning statement must: • Present a clear idea of the brand in its target market’s mind • Consistently deliver the same unified message across all media channels on all occasions.

22. IMC Feature #4: Build Relationships • Build relationships (e.g., Harley Davidson) rather than engage in flings • Costs 5-10x more to acquire a new customer than keep a current one • Takeaway: • Loyalty programs promote long-term relationships between customers and brands that lead to customer retention. • Experiential marketing programs can create brand experiences that make positive and lasting impressions on customers.

23. IMC Feature #5: Affect Behavior • Don’t lose focus of the ultimate objective: Affect Behavior • IMC must do more than just influence brand awareness or enhance consumer attitudes – the objective is to move people to action.

24. Changes in Marketing Communication Practices • Reduced dependence on mass media advertising. • Increased reliance on highly targeted communication methods. • Heightened demands on suppliers. • Increased efforts to assess communications’ return on investment.

25. Obstacles to Implementing IMC • Few providers have the skills required to execute. • Mass media campaigns easier than direct-to-customer. • The real challenge is to make sure that tools are consistently executed.

26. SWOT Analysis Internal External Vulnerabilities Constraints

27. Figure 1.3: Making Brand-Level Marcom Decisions and Achieving Desired Outcomes

28. Making Fundamental Marcom Decisions Micromarketing: The customizing of products and communications to smaller segments (e.g., toothpaste).

29. Target Market Selection Strategies 1. Undifferentiated Marketing 2. Differentiated Marketing 3. Concentrated Marketing Segment A Segment C

30. Marcom Implementation Decisions • Mixing elements • Creating messages • Selecting media • Establishing momentum

31. Marcom Outcomes

32. Program Evaluation

33. A Concluding Mantra: All Marketing Communications Should be… Directed to a Particular Target Market Undertaken to Accomplish the Objective within the Budget Constraint Clearly Positioned Created to Achieve a Specific Objective