An Introduction to Integrated Marketing Communications (IMC)

1. An Introduction to Integrated Marketing Communications (IMC) © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2. Chapter plan What is IMC? Reasons for the growing importance of IMC IMC and branding The promotional mix: The tools of IMC 4. IMC planning process © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

3. 1. What is IMC? Coordinating the various promotional elements to effectively communicate with target audiences © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

4. Sales promotion Direct response Packaging Media Adver- tising Point of purchase Public relations Publicity Interactive marketing Direct marketing Special events Traditional Approach to Marketing Communications © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

5. Sales promotion Direct response Packaging Media Adver- tising Point of purchase Public relations Publicity Interactive marketing Direct marketing Special events Contemporary IMC Approach © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

6. From Toward Media advertising Media advertising Multiple forms of communication Multiple forms of communication Mass media Mass media Specialized media Specialized media Manufacturer dominance Manufacturer dominance Retailer dominance Retailer dominance General focus General focus Data-based marketing Data-based marketing Low agency accountability Low agency accountability Greater agency accountability Greater agency accountability Traditional compensation Traditional compensation Performance-based compensation Performance-based compensation Limited Internet availability Widespread Internet availability 2. Reasons for the Growing Importance of IMC © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

7. 2005 Brand Value (Billions of Dollars) 3. IMC and Branding Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind. 1. Coca-Cola $67.52 2. Microsoft $59.94 3. IBM $53.38 4. GE $46.99 5. Intel $35.59 6. Nokia $26.45 7. Disney $26.44 8. McDonald’s $26.01 9. Marlboro $24.84 10. Mercedes $21.19 IMC plays a major role in the process of developing and sustaining brand identity and equity. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

8. 4. The promotional mix: The tools of IMC 4.1. Advertising 4.2. Direct Marketing 4.3. Internet Marketing 4.4. Sales Promotion 4.5. Public Relations 4.6. Personal Selling © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

9. 4.1. Advertising Paid Non-personal Cost effective © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

10. National Advertising Retail/Local Advertising Primary vs. Selective Demand Advertising Consumers Business-to-Business Advertising Professional Advertising Trade Advertising Organizations Classifications of Advertising National Advertising Retail/Local Advertising Primary vs. Selective Demand Advertising Business-to-Business Advertising Professional Advertising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

11. Direct Mail Internet Sales Direct Response Advertising Shopping Channels Telemarketing Catalogs 4.2. Direct Marketing Direct Mail Direct Response Advertising DirectMarketing Shopping Channels Telemarketing Catalogs © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

12. Educates or informs customers A persuasive advertising medium A sales tool or an actual sales vehicle Obtains customer database information Communicates and interacts with buyers Provides customer service and support Builds and maintains customer relationships 4.3. Internet marketing TheInternet Educates or informs customers A persuasive advertising medium A sales tool or an actual sales vehicle Obtains customer database information Communicates and interacts with buyers Provides customer service and support © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

13. 4.4. Sales Promotion Tools Coupons Coupons Trade Allowances Samples Samples Premiums Premiums POP Displays POP Displays Contests/Sweepstakes Contests/Sweepstakes TrainingPrograms TrainingPrograms Refunds/Rebates Refunds/Rebates Bonus Packs Bonus Packs TradeShows TradeShows Loyalty Programs Loyalty Programs CoopAdvertising CoopAdvertising Events Events • Trade-oriented • [For resellers] • Consumer-oriented • [For end-users] © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

14. 4.5. Public Relations Tools Publicity Vehicles Special Publications Publicity Vehicles Special Publications Community Activities Corporate Advertising Cause-related Marketing Community Activities Corporate Advertising Cause-related Marketing Public Affairs Activities Public Affairs Activities Special Event Sponsorship © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

15. Feature Articles News Releases Interviews Press Conferences Special Events Publicity Vehicles Feature Articles News Releases Interviews PublicityVehicles Special Events © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

16. Advertising Versus Publicity Factor Advertising Publicity Control Great Little Credibility Lower Higher Reach Undetermined Measurable Frequency Uncontrollable Schedulable Cost Low/Unspecified High/Specific Flexibility Low High Timing Tentative Specifiable © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

17. 4.6. Personal selling Face-to-face communication Mostly used for business customers © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

18. 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 5. IMC Planning Model © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

19. 5. IMC Planning Model Read the details on page 29 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin