Integrated Marketing Communications Chapter 1 Integrated Marketing Communications

Chapter Objectives We will: 1. Review the various elements of the promotional mix 2. Summarize the IMC planning process and examine the steps in a marketing communications program Chapter 1: IMC

Chapter Objectives 3. Introduce the concept of integrated marketing communications 4. Examine how various elements must be coordinated to communicate effectively with the IMC perspective Chapter 1: IMC

The Marketing & Promotional Mixes Product Price Place Promotion Elements of the Promotional Mix Advertising Direct marketing Internet Marketing Sales promotion Publicity/public relations Personal selling Chapter 1: IMC

Elements of the Promotional Mix Figure 1-1 Chapter 1: IMC

Advertising Cost effective for communicating to a large audience. Creates brand images and symbolic appeal. Strikes a responsive chord with consumers, popular campaigns get attention. Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor Prime time television reaches 85% of Canadians on a daily basis. Cost is 14.00 per thousand households Symbolic appeal very important for to company for selling products. Ie the Absolute Vodka bottle, the coke bottle Popular campagins ie the Eveready energy bunny uses brand identification to impact purchases. Chapter 1: IMC

Advertising to Markets Consumer Markets National Advertising Goal to inform and remind consumer Retail/Local Advertising Goal to increase store traffic Creating Demand Advertising to increase demand Primary demand for the product category - Jeans Selective demand for a specific brand - Levi's Chapter 1: IMC

Advertising to Markets Business & Professional Advertising Business-to-business advertising Professional advertising Trade advertising Chapter 1: IMC

Sales Promotion Marketing activities that provide extra value or incentives to the sales force, distributors, or ultimate consumers and can stimulate immediate sales. Chapter 1: IMC

Types of Sales Promotion Customer-oriented Targeted to the ultimate users of a product or service Coupons, sampling, premiums, rebates, contests, sweepstakes, POP materials Trade-oriented Targeted toward marketing intermediaries such as retailers, wholesalers, or distributors Promotion allowances, merchandise allowances, price deals, sales contests, trade shows Chapter 1: IMC

Public Relations The management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance. Chapter 1: IMC

Public Relations Tools used by public relations. Publicity. Special publications. Community activity participation. Fund-raising. Special event sponsorship. Public affairs activities. Chapter 1: IMC

Publicity Non-personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. Publicity is NOT advertising. Advertising. Paid, sponsor-identified, non personal (media) communications. Publicity. Non-paid, unsponsored, non personal (media) communications. Chapter 1: IMC

Publicity Vehicles News releases: Feature articles: Captioned photos: Single-page news stories sent to media who might print or broadcast the content. Feature articles: Larger manuscripts composed and edited for a particular medium. Captioned photos: Photographs with content identified and explained below the picture. Press conferences: Meetings and presentations to invited reporters and editors. Special events: Sponsorship of events, teams, or programs of public value. Chapter 1: IMC

Direct Marketing Organizations communicate directly with target customers to generate a response and/or transaction. Direct marketing methods. Direct mail. Cataloging. Telemarketing. Direct response ads. Internet sales. Chapter 1: IMC

Interactive/internet Marketing Interactive media allow for a back and forth flow of information whereby users can participate in and modify the form and content of the information they receive in real time. Chapter 1: IMC

Interactive/internet Marketing Multiple internet roles As a persuasive advertising medium As a means to educate or inform customers As a sales tool or an actual sales vehicle To obtain customer database information To communicate and interact with buyers To provide customer service and support To build and maintain customer relationships Chapter 1: IMC

Personal Selling A form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase to company’s product or service or act on an idea. With this type of interaction the flexibility exists to tailor the message to the customers specific need or situation. Chapter 1: IMC

Integrated Marketing Communications Coordinating the various promotional elements and other marketing activities that communicate with the firm’s customers. Chapter 1: IMC

Integrated Marketing Communications An IMC plan evaluates the strategic roles of a variety of communications disciplines: General advertising Direct marketing Sales promotion Publicity/Public relations Internet advertising Personal Selling Chapter 1: IMC

Integrated Marketing Communications An IMC Plan combines the disciplines to provide the “Big Picture”: Clarity Consistency Maximum communications impact Chapter 1: IMC

Reasons for Growth of IMC Planning efficiency and effectiveness. By coordinating marketing communication efforts companies avoid duplication, take advantage of synergy, and develop more efficient and effective programs. Chapter 1: IMC

Reasons for Growth of IMC Consumer adoption of technology and media. Consumers lifestyles and purchasing behavior are changing as they adopt new technologies. Traditional media are facing declining audiences and less responsive consumers. Chapter 1: IMC

Reasons for Growth of IMC Innovative marketing practices. A shift in marketplace power from manufacturers to retailers. A shifting of marketing dollars from media advertising to other forms of promotion. A movement away from relying on advertising- focused approaches to solve communication problems. Chapter 1: IMC

Reasons for Growth of IMC Innovative Marketing Practices. The rapid growth and development of database marketing. Demands for greater accountability from ad agencies and changes in compensation. Rapid growth of the internet. Chapter 1: IMC

Importance of IMC Customer’s point of view. All elements of the promotional campaign have to be carefully linked in some manner so that the message is clear and does not misrepresent the brand. Chapter 1: IMC

Importance of IMC Relationship marketing. Creating, maintaining, and enhancing long-term relationship with individual customers as well as other stakeholders for mutual benefit. Marketers must recognize which tools within the promotional mix are enhancing the relationship. Chapter 1: IMC

Planning for IMC: Promotional Management Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications. Considerations for developing the promotional mix include: Type of product. Buyer’s decision process. Stage of product life cycle. Channels of distribution. Chapter 1: IMC

The Marketing Plan 1. A detailed situation analysis 2. Specific marketing objectives 3. A marketing strategy and program 4. A program for implementing the strategy 5. A process for monitoring and evaluating performance Chapter 1: IMC

Situation Analysis Internal analysis. Assesses relevant areas involving the product/service offering and the firm itself. Chapter 1: IMC

Situation Analysis Internal factors. Assessment of the firm’s promotional organization and capabilities. Review of the firm’s previous promotional programs. Assessment of firm or brand image and implications for promotion. Assessment of relative strengths and weaknesses of product/service. Chapter 1: IMC

Situation Analysis External factors. External analysis. Focuses on factors such as characteristics of a firms customers, market segments, environment and competitors. External factors. Who, what, how, when, why, where. Customer analysis. Competitive analysis. Environmental analysis. Chapter 1: IMC

Discussion Questions Consider all the elements/IMC tools of the promotional mix that are used to market a ( car, cel phone, computer, running shoes, watch, shampoo) that a college student might be expected to buy. Explain why each tool would be effective or would not be effective to create awareness. Chapter 1: IMC