Course Objectives:

1. Integrated Marketing Communications (KOM 5325)Hamisah Zaharah Hasan, PhDhamisah@upm.edu.my03-8946 8667

2. The course covers the functions of Integrated Marketing Communications discussing topics such as advertising, direct marketing, the Internet, interactive media, sales promotion, public relations, corporate advertising and direct selling; market environment which includes segmenting, targeting, positioning and consumer purchasing behavior; evaluation of a company’s marketing and promotional situation; Integrated Marketing Communications strategies and programs.

3. Course Objectives: • analyze the differences between the major marketing • communication functions (C4);evaluate a company’s marketing and promotional • situation (P4);develop effective Integrated Marketing • Communications strategies and programs (A4) andcontribute to the planning and coordinating of group • work (CS, LL)

4. Course Evaluation Assignment 1 : 10 points Midterm exam : 20 points Group project : 30 points Final exam : 40 points

7. Welcome to IMC

10. THE EVOLUTION OF IMC • 1980s companies see the need for more strategic integration of their promotional tools • Process IMC involves coordinating the various elements & other marketing activities that communicate with a firm’s customers. e.g. use ads, sales promotion, corp. sponsorship, direct marketing, etc • Companies built profitable relationship with customers, stakeholders, stockholders.

11. IMC the beginning .... • Advertisers were not clear of advertising in the new millennium ….. • The industry realized its vulnerability to the outside world OUTSIDE THE BOX?

12. BEFORE IMC ..... For many years, the promotional function in most companies was dominated by mass media ads. Companies relied primarily on their ads agencies for guidance in nearly all areas of marcom. In fact, most marketers did use additional promotional & marketing tools but, sales promotion & direct marketing agencies as well as package design firms were generally viewed as auxiliary services & often used on a per-project basis. PR agencies were used to manage the organization’s publicity, image & affairs with relevant publics on an ongoing basis but were not viewed as integral participants in the marcom process.

13. DEPARTMNTALIZATION? They failed to recognize that the wide range of marketing & promotional tools must be coordinated to communicate effectively and present a consistent image to target audience • Many marketers manage its various marketing & promotional functions separately. Different budgets, views of market, goals & objectives.

14. what is IMC ? …. A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines e.g. general ads., direct response, sales promotion, and public relations …. and combines these disciplines to provide clarity, consistency and maximum communications impact ….. Belch & Belch,1999

15. IMC .... according to Wells et al. The concept or philosophy of marketing that stresses bringing together all the variables of the marketing mix, all the media, all the actions with which a company reaches its publics, and integrating the company’s strategy & programs …..

16. IMC follows the concept of marketing that start with the consumer needs and wants and work back to the brand. Through the information from the database companies are able to find out about consumers. IMC is a practice of unifying communication tools from packaging ---- to sending consistent, persuasive message to target audience Schultz

17. ONCE THEY EMBRACED IMC... ….. The began asking their ad agencies to coordinate the use of a variety of promotional tools rather than relying primarily on media advertising. …. Some companies began looking beyond the traditional advertising agencies & use other types of promotional specialists to develop & implement various components of their promotional plans.

18. THE FOCUS OF IMC .... ….. Using all forms of promotion …..Approach to planning marketing ….Promotion programs ….Coordinating communication functions IMC helps companies identify the most appropriate & effective methods to conduct customers & stakeholders.

19. WHY THE GROWING IMPORTANCE OF IMC ??? Significant marketing development Added value of integrating various communication functions Maximize return on investment

20. Media • OLD MEDIA • NEW MEDIA ...

21. NEW TECHNOLOGY OLD MEDIA VS INTERNET, VCD, DVD, MOBILE PHONE RADIO/TV/MAGAZINES/NEWSPAPER

22. AVOID DUPLICATION ---- integrate marcom activities NEW TECHNOLOGY NEW ENVIRONMENT --- new ways to reach consumers DIFFERENT CONSUMERS ----- sophisticated, demanding, EXPENSIVE TRADITIONAL MEDIA REASONS FOR IMC

23. Why IMC? • Use major communication functions in concert (synergy) to provide clarity, consistency, and maximum communications impact • Synergy yields results greater than if each functional area had selected its own targets, chosen its own message strategy, and set its own media schedule and timing

24. INTRODUCTIONto PROMOTIONand INTEGRATED MARKETING COMMUNICATIONS

25. Relationship Between Promotion, the Promotional Mix, and Integrated Marketing Communications PROMOTION • Communication Process in Marketing • Used to Create a Favorable Predisposition Toward: • Brand of Product • Service • Idea • Person PROMOTIONAL MIX • Blend of Communications Tools and Activities Used by a Firm • Carries out the Promotion Process • Communicates Directly with Target Markets 1.2

26. INTEGRATED MARKETING COMMUNICATIONS (IMC) • Manages the Processes and Activities of Using Promotional Tools • Unified Way • Produces a Synergistic Communications Effect 1.3

27. Promotion: Promotion Mix: IMC: Process Tools Management of the Promotion Mix 1.4

28. The Promotional Mix ADVERTISING • Paid Mass Media Attempt to Persuade • Complex System of Strategic Planning and Creative Genius INTERNET ADVERTISING • Electronic Mail (e-mail) • Internet Relay Chat (IRC) • Usenet • World Wide Web (www) SALES PROMOTION • Use of Incentives to Generate a Specific Short-Term Response • Household Consumer • Trade Buyer • Business Buyer 1.5

29. ADVERTISING

30. Example of Sales Promotion

31. Example of Mass Media Advertising 1.6

32. Example of Sales Promotion 1.7

34. The Promotional Mix DIRECT MARKETING AND e-COMMERCE • Distinguished From Other Primary Promotional Tools in 3 Ways • Uses a Combination of Media • Designed to Elicit a Direct Response • Transactions Can Occur Anywhere • E-Commerce is Another Form of Direct Marketing • Business is Conducted Between Buyers and Sellers Using Electronic Exchange Media 1.8

35. shelf-talkers, signage, easel stands, bottle-neckers, price cards, hang-tags, pop-ups SPONSORSHIP • Funding an Event • Creating an Event to Showcase a Firm’s Brand POINT-OF-PURCHASE • Materials Used in Retail Setting to Attract Shoppers’ to a Company’s Brand SUPPORTIVE COMMUNICATIONS • Used to Target Audiences Outside Mainstream Media or Electronic Communications 1.9

36. SUPPORTIVE COMMUNICATIONS • Used to Target Audiences Outside Mainstream Media or Electronic Communications

37. PUBLIC RELATIONS • Communication that can Foster Goodwill Between a Firm and its Many Constituent Groups PERSONAL SELLING • Presentation of Information about a Firm’s Products or Services by One Person to Another Person or to a Small Group of People 1.10

38. Personal Selling is the Most Important Variable in the Promotional Mix of Many Organizations 1.11

39. ROLE OF PROMOTION IN MARKETING STRATEGY • Must Have Marketing Strategy Decisions about Products (Brand) • Branding – Established Name, Term, Symbol or Design that Identifies for Consumers that a Product is being Offered by a Particular Seller and Clearly Distinguished the Product of that Seller from those Offered by Competitors 1.12

40. 1.12

41. ROLE OF PROMOTION IN MARKETING STRATEGY • Role of Promotion in Marketing Strategy Affects 3 Key Aspects of Decision Making with Respect to Brands • Creating the Marketing Mix • Achieving Effective Market Segmentation, Product Differentiation, and Positioning • Enhancing Revenues and Profits 1.13

42. ROLE OF PROMOTION IN THE MARKETING MIX • Assumes a Wide Range of Responsibilities Related to: • Conception • Pricing • Distribution Brands • Product (Brand) 1.14

43. ROLE OF PROMOTION IN THE MARKETING MIX • Promotion Affects the Product Area of the Marketing Mix • Information and Persuasion • Introduction of New Brand or Brand Extensions • Building and Maintaining Brand Loyalty Among Consumers • Building and Maintaining Brand Loyalty Within the Trade 1.15

44. One Role for Promotion is to Help Introduce Brand Extensions Like this Extension of Jell-O into the Yogurt Market 1.16

45. ROLE OF PROMOTION IN THE MARKETING MIX • Price • Effects the Consumer Market • Effects the Trade Market • Distribution • Consumer Access to Brands • Securing Trade Distribution 1.17

46. Promotion is Important in Helping to Execute These Strategies • Market Segmentation • Product Differentiation • Positioning • External • Internal 1.18

47. The Role of Promotion in Revenue and Profits • Sales Occur • Brand has Well-Conceived Marketing Mix • Complete Marketing Mix • Good Promotion • Large-Scale Demand /Production Produces • Cost to Produce Item is Reduced • Known as Economies of Scale • Brand Loyalty at Any Cost • Firm Raises Prices • Known as Inelasticity of Demand 1.19

48. Promotional Tools Help Increase Brand Loyalty 1.20

49. Integrated Marketing Communications FACTORS CONTRIBUTING TO IMC’s RISING PROMINENCE • Fragmentation of Media • Better Audience Assessment Through Database Technology • Consumer Empowerment • Increased Advertising Clutter • Shifting Channel Power • Desire of Greater Accountability 1.21

50. Promotion and IMC Help Cut Through the Clutter of Advertising 1.22