I NTEGRATED M ARKETING C OMMUNICATIONS

Refresher : The Marketing Mix Bordern’s (1961) Marketing Mix: product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. McCarthy’s (1964) 4 Ps – Product, Price Place Promotion Kotler’s (1992) 4 Cs – Customers, Costs, Convenience, Communication Boom & Bitner’s (1983) 7 Ps – Product, Price Place, Promotion, Physical Evidence, People, Processes

P – P ROMOTION : I NTEGRATED M ARKETING C OMMUNICATIONS (IMC) Communications: The process whereby thoughts are conveyed and meaning is shared between individuals or between organizations and individuals. Marketing: A set of activities whereby business and other organizations create transfers of value (exchanges) between themselves and their customers.

Marketing Communications The collection of all elements in a brand’s marketing mix that facilitate exchanges by targeting the brand to a group of customers, positioning the brand as somehow distinct from competitive brands, and sharing the brand’s meaning with the brand’s target audience.

I NTEGRATED M ARKETING C OMMUNICATIONS (IMC) Coordination of all promotional activities – media advertising, direct mail, personal selling, sales promotion, and public relations – to produce a unified customer-focused promotional message Success of any IMC program depends critically on identifying the members of an audience and understanding what they want

The dramatic changes in the field of marketing communications over the last decade have challenged marketing communicators to use communications methods that will: Break through the communications clutter in the marketplace Reach audiences with interesting and persuasive messages Assure that MarCom investments yield an adequate return on investment

A move towards fully integrating all business practices that communicate something about a company’s brands to present or prospective customers.

IMC requires a total strategy including all marketing activities, not just promotion Successful implementation of IMC requires that everyone involved in every aspect of promotion – public relations, advertising, personal selling, and sales promotion – function as a team

BMW Apple Computers Joint Integrated Marketing Promotion by BMW and Apple Computers Volvo & Apple iPod

T HE M ARKETING C OMMUNICATIONS M IX 1. Personal Selling 2. Advertising 3. Public Relations 4. Sales Promotion 5. Sponsorship Marketing Brand/Product Placement**

1. Personal Selling Interaction between salesperson and prospect to sell products such as insurance, automobiles, and real estate. 2. Advertising Informs the end customer or B2B customer about products and brand benefits and ultimately influences brand choice.

3.Public Relations Garners positive publicity for the company and its brands through news items or editorial comments. 4.Sales Promotion Creates an immediate response from the market. Trade-oriented sales promotions Consumer-oriented sales promotions

5.Sponsorship Marketing Represents an opportunity for a company and its brands to directly target communications toward narrow, but highly desirable, audiences. Associates a brand with a charitable cause, a high profile event, or a cultural affair.

I MPORTANCE OF D ATABASES With the growth of the Internet, marketers have been given the power to gather information faster and to organize it easier than ever before By sharing this knowledge appropriately among all relative parties, a firm can lay the foundation for a successful IMC program

Integrated Marketing Communications Objective 2 Start with the customer Use any form of relevant contact Achieve Synergy Build Relationships Affect Behavior Five Key Aspects of IMC Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

C HANGES IN M ARKETING C OMMUNICATION P RACTICES 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.

D ETERMINING AN A PPROPRIATE M IX OF IMC T OOLS Five Factors to Consider: 1. What is the intended market? 2. What objectives must the MarCom initiative achieve? 3. What is the product life-cycle stage? 4. What are competitors doing? 5. What is the available budget for marketing communications?

D ETERMINING AN A PPROPRIATE M IX OF IMC T OOLS

M ANAGING THE M AR C OM P ROCESS Establishing Objectives Setting Budgets Formulating Positioning Strategies Establishing Message and Media Strategies Selecting Target Markets Evaluating Program Effectiveness

Stage 1: Selecting Target Markets: Targeting allows marketing communicators to pinpoint the product’s potential audience and to precisely deliver messages to this group. Stage 2: Establishing Objectives: Marketing communication objectives must fit within the company’s overall corporate and marketing objectives. Objectives must be realistic and stated in quantitative terms with the amount of projected change and the time duration specified.

O BJECTIVES – FIT WITH COMPANY OBJECTIVES - N ATIONAL E ATING D ISORDERS A SSOCIATION

Stage 3: Setting Budgets: An organization’s financial resources are budgeted to specific MarCom elements in order to accomplish the sales and profit objectives established for its various brands. Top-down budgeting - Senior management decides how much each subunit receives. Bottom-up budgeting - Managers of subunits determine how much is needed to achieve their objectives. Bottom-up/Top-down (most frequently used) Top-down/Bottom-up

Stage 4: Formulating Positioning Strategies: A good positioning statement should: Reflect a brand’s competitive advantage. Motivate customers to action.

W HAT IS THE P OSITIONING OF THESE B RANDS ?

C APTURE THE CHARACTERISTIC OF THE B RAND VIA IMC W HAT IS THE BRAND POSITIONING ? Big and Agile – Skoda Octavia 4x4 – ‘You don’t see that very often’

B RAND I MAGE : W HAT IS IT ?

Establishing Message and Media Strategies Decisions must be made regarding the message to be communicated and the media within which the message will be carried. Media typically connotes a mode of advertising such as via television or radio, but the term media can be applied to every MarCom element.

W HAT IS THE M ESSAGE FOR B IG A L ’ S ?

Evaluating Program Effectiveness Stage 5: Evaluating Program Effectiveness Effectiveness is evaluated by comparing the actual response rate with the objective established in the form of a projected response rate. Advertisers typically assess advertising in terms of communication outcomes.

P ROBLEMS FOR IMC Few providers have the skills required to execute. Mass media campaigns easier than Direct-to-Customer. Need for MarCom Director.

P ROBLEMS WITH G LOBAL C OMMUNICATIONS In China: KFC’s slogan: “Finger lickin’ good” came out as “Eat your fingers off” Also in China: Coca-Cola had thousands of signs made using the translation: “Ke-kou-ke-la” Depending on the dialect this means... “Bite the wax tadpole,” or “Female horse stuffed with wax” In Taiwan: Pepsi’s slogan, “Come alive with the Pepsi generation” came out as “Pepsi will bring your ancestors back from the dead”