Chapter 1 An Introduction to Integrated Marketing Communications

Marketing Activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for: Customers, clients, partners, and society at large Exchange: Involves parties with: Something of value to one another Desire and ability to give up something to the other party Way to communicate with each other Relation to text: This slide relates to content found on page 7 of the text. Summary Overview: This slide presents the revised definition of marketing developed by the American Marketing Association (AMA) in 2007. This revised definition is viewed as being more reflective of the role of non-marketers to the marketing process. It also recognizes the role marketing plays in the process of creating, communicating, and delivering value to customers, as well as society at large. The earlier definition of marketing by the AMA focused on exchange as a central concept in marketing and the use of the basic marketing activities to create and sustain relationships with customers. This slide presents how for exchange to occur there must be two or more parties with something of value to one another, desire and ability to give up that something to the other party, and a way to communicate with each other. Use of this slide: This slide can be used to introduce the new definition of marketing developed by the AMA and some of the key aspects of marketing, which include: Creating, communicating, and delivering value Focusing on customer relationships

Marketing Mix Product, price, place, and promotion To develop an effective marketing mix, marketers must: Be knowledgeable about the issues and options of each element of the mix Know how to combine the elements to form an effective marketing program Analyze the market and use the data to develop the marketing strategy and mix Relation to Text: This slide relates to the content on page 8 of the text. Summary Overview: This slide presents the elements of the marketing mix: a product or service that satisfies the needs, the price for which the product is offered, the place where the product is made available, and the program of promotion or communication developed to create awareness and interest. This slide lists the responsibilities of marketers to develop an effective marketing mix. Use of this Slide: This slide can be used to give the elements of the marketing mix, that is, product, price, place, and promotion. This slide also lists the responsibilities of marketers to develop an effective marketing mix. This can also be used to explain that a proper marketing mix does not just happen. Marketers must understand the issues and options involved in each element of the mix, and how these elements can be combined to form an effective marketing program.

Integrated Marketing Communications (IMC) Coordinate various promotional elements and other marketing activities that communicate with a firm’s customers Evaluates the strategic roles of a variety of communication disciplines Combines the disciplines to provide clarity, consistency, and maximum communications impact Recognizes the added value of a comprehensive plan that: Relation to Text: This slide relates to the content on pages 8-9 of the text. Summary Overview: This slide defines the process of integrated marketing communications (IMC), which involves coordinating the various promotional elements and other marketing activities that communicate with a firm’s customers. This slide also presents one of the first definitions of IMC American Association of Advertising Agencies (the 4As): 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 and combines these disciplines to provide clarity, consistency, and maximum communications impact. Use of this Slide: This slide can be used to present the definition of integrated marketing communications (IMC) and discuss that the IMC approach seeks to provide clarity, consistency, and maximum communications impact. Ensures all marketing and promotional activities project a consistent, unified image

Growing Importance of IMC Strategically integrates the various communications functions Avoids duplication and takes advantage of synergy among promotional tools Develops more efficient and effective marketing communications programs Evolution to micromarketing Consumers’ unresponsiveness to traditional advertising Changing rules of marketing Changing environment Relation to Text: This slide relates to the content on pages 11-12 of the text. Summary Overview: This slide lists the growing importance of IMC. Use of this Slide: This slide can be used to list the growing importance of IMC. A fundamental reason for its importance is that they understand the value of strategically integrating the various communications functions rather than having them operate autonomously. By coordinating their marketing communications efforts, companies can avoid duplication, take advantage of synergy among promotional tools, and develop more efficient and effective marketing communications programs. The move to integrated marketing also reflects an adaptation by marketers to a changing environment, that is, evolution to micromarketing, consumers’ unresponsiveness to traditional advertising, and changing rules of marketing.

Integrated Marketing Communications (IMC): Role in Branding Helps develop and sustain brand identity and equity Recognizes the need for companies to connect with consumers based on trust, transparency, and authenticity Relation to Text: This slide relates to the content on pages 13-15 of the text. Summary Overview: This slide presents the role of IMC in branding. Use of this Slide: This slide can be used to discuss the role of IMC in branding. One of the major reasons for the growing importance of integrated marketing communications over the past decade is that it plays a major role in the process of developing and sustaining brand identity and equity. Marketing is entering the relationship era and the need for companies to connect with consumers based on trust, transparency, engagement, and authenticity. A successful IMC program requires that marketers find the right combination of communication tools and techniques, define their role and the extent to which they can or should be used, and coordinate their use.

Promotional Mix Tools that accomplish an organization’s communication objectives Promotion: Coordination of all seller-initiated efforts to: Set up channels of information and persuasion Sell goods and services or promote an idea Relation to Text: This slide relates to the content on page 16 of the text. Summary Overview: This slide gives the definition of promotion and promotional mix. Use of this Slide: This slide can be used to give the definition of promotional mix and promotion. Promotion has been defined as the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. The basic tools used to accomplish an organization’s communication objectives are referred to as the promotional mix.

Figure 1.2 - Elements of the Promotional Mix Relation to Text: This slide relates to Figure 1-5 on page 17 of the text. Summary Overview: This slide identifies the basic tools used to accomplish an organization’s communication objectives. Use of this Slide: This slide can be used to introduce students to the basic tools available to organizations that which to set up channels of information and persuasion, in order to sell goods and services or promote an idea. These tools are known as the promotional mix.

Advertising Any paid form of nonpersonal communication: Nonpersonal About an organization, product, or service With an idea from an identified sponsor Nonpersonal Involves mass media Message is transmitted to large groups of individuals No opportunity for immediate feedback Relation to Text: This slide relates to the content on page 17 of the text. Summary Overview: This slide presents a definition of advertising. Advertising is defined as any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. Use of this Slide: This slide can be used to mention and reflect on the key points of advertising: The paid aspect of this definition reflects the fact that the space or time for an ad message must be bought. The occasional exception to this is the Public Service Announcement, whose time or space may be donated. Nonpersonal means that the message is delivered to a large group of individuals, often at the same time. It also means that there is no opportunity for immediate feedback from the recipient(s).

Benefits of Advertising Most cost-effective way to reach large numbers of consumers Builds brand equity by influencing consumers’ perceptions Relation to Text: This slide relates to the content on page 18 of the text. Summary Overview: This slide gives the reasons why advertising is such an important part of many marketers’ IMC programs. First, media advertising is still the most cost-effective way to reach large numbers of consumers with an advertising message. Advertising is also a valuable tool for building company or brand equity as it is a powerful way to provide consumers with information as well as to influence their perceptions. Use of this Slide: This slide can be used to present the benefits of advertising, that is, its cost-effectiveness when targeting a large number of consumers and its ability to build brand equity.

Advertising to Consumer Markets National advertising Done on a nationwide basis or in most regions of the country Retail/local advertising - Encourage consumers to: Shop at a specific store Use a local service Patronize a particular establishment Relation to Text: This slide relates to the content on page 20 of the text. Summary Overview: This slide discusses one of the classification of advertising—advertising to consumer markets. Use of this Slide: This slide can be used to discuss the ways of advertising to consumer markets. Advertising to consumers can be done in the following ways: national advertising, retail/local advertising, and primary-demand advertising and selective-demand advertising. National advertising is done by large companies on a nationwide basis or in most regions of the country. Retail/local advertising is done by retailers or local merchants to encourage consumers to shop at a specific store, use a local service, or patronize a particular establishment. Primary-demand advertising is designed to stimulate demand for the general product class or entire industry. Selective-demand advertising focuses on creating demand for a specific company’s brands. Primary- versus selective-demand advertising Primary-demand - Stimulates demand for the general product class or entire industry Selective-demand - Creates demand for a specific company’s brands

Advertising to Business and Professional Markets Targets individuals who buy or influence the purchase of industrial goods or services for their companies Business-to-business advertising Targets professionals, encouraging them to use a company’s product in their business operations Professional advertising Relation to Text: This slide relates to the content on page 20 of the text. Summary Overview: This slide discusses one of the classification of advertising—advertising to business and professional markets. Use of this Slide: This slide can be used to discuss the ways of advertising to business and professional markets. Advertising to business and professional can be done in the following ways: business-to-business advertising, professional advertising, and trade advertising. Business-to-business advertising is targeted at individuals who buy or influence the purchase of industrial goods or services for their companies. Professional advertising targeted to professionals such as doctors, lawyers, dentists, engineers, or professors to encourage them to use a company’s product in their business operations. Trade advertising is targeted to marketing channel members such as wholesalers, distributors, and retailers. Targets marketing channel members, encouraging them to stock, promote, and resell the manufacturer’s branded products to their customers Trade advertising

Direct Marketing Communicating directly with target customers to generate a response and/or a transaction Involves: Database management Direct selling Telemarketing Direct-response advertising Encourages the consumer to purchase directly from the manufacturer Relation to Text: This slide relates to the content on page 21 of the text. Summary Overview: This slide defines and discusses about direct marketing and its tools. Use of this Slide: This slide can be used to give the definition of direct marketing and list its tools. One of the fastest-growing sectors is direct marketing, in which organizations communicate directly with target customers to generate a response and/or a transaction. Direct marketing involves a variety of activities, including direct mail and mail-order catalogs, database management, direct selling, telemarketing, and direct-response ads through direct mail, the Internet, and various broadcast and print media. One of the major tools of direct marketing is direct-response advertising, whereby a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer.

Digital/Internet Marketing Interactive media Allow users to participate in and modify the form and content of the information they receive in real time Social media Online means of communication and interactions used to create, share, and exchange content Relation to Text: This slide relates to the content on pages 22-23 of the text. Summary Overview: This slide discusses and defines digital/Internal marketing tools. Use of this Slide: This slide can be used to discuss and understand digital/Internal marketing tools. Interactive media allow for a two-way flow of communication whereby users can participate in and modify the form and content of the information they receive in real time. Social media refers to online means of communication and interactions among people that are used to create, share, and exchange content. Mobile marketing can be used to deliver messages that are specific to a consumer’s location or consumption situation. Mobile marketing Messages delivered are specific to a consumer’s location or consumption situation

Advantages of Digital/Internet Marketing Interactive nature Capability to precisely measure the effects of advertising and other forms of promotion Relation to Text: This slide relates to the content on page 23 of the text. Summary Overview: This slide discusses the advantages of using digital/Internet marketing. The interactive nature of the Internet and social media enables marketers to gather valuable personal information from customers and prospects and to adjust their offers accordingly. Also, Internet provides marketers with the capability to more closely and precisely measure the effects of their advertising and other forms of promotion. Use of this Slide: This slide can be used to discuss ways that the Internet can be used as a marketing tool. Students should be very familiar with this medium, so you may want to ask such things as: Which search engine do you use most often, and why? Do you ever enroll in online contests or sweepstakes? Do you have your own website? If so, do you sell anything? How much traffic does your site get, and how do you drive traffic there?

Sales Promotion Marketing activities that provide extra value or incentives to the: Sales force Distributors Ultimate consumer Aid in stimulating immediate sales Categories Consumer-oriented Trade-oriented Relation to Text: This slide relates to the content on pages 23-24 of the text. Summary Overview: This slide presents the definition of a sales promotion. Sales promotion is defined as those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales. It is broken into two major categories: consumer-oriented and trade-oriented activities. Use of this Slide: This slide can be used to give the definition of sales promotions and discuss the categories of sales promotion. It can also be used to present the differences between consumer- and trade-oriented promotions. Consumer-oriented Targeted to the ultimate user of a product or service Couponing, sampling, premiums, rebates, contests, sweepstakes, POP materials Encourages immediate purchases Trade-oriented Targeted toward wholesalers, distributors, and retailers Promotional/merchandising allowances, price deals, sales contests, trade shows

Sales Promotion Increased emphasis due to: Declining brand loyalty Increased consumer sensitivity to promotional deals Retailers’ demand for more trade promotion support from companies Relation to Text: This slide relates to the content on page 24 of the text. Summary Overview: This slide discusses the reasons for the increased emphasis on sales promotion. Use of this Slide: This slide can be used to discuss and understand the reasons for the increased emphasis on sales promotion. The reasons include declining brand loyalty and increased consumer sensitivity to promotional deals. Another major reason is that retailers have become larger and more powerful and are demanding more trade promotion support from companies.

Publicity Nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship Advantage High credibility and low cost Disadvantages Not always under the control of an organization Negative stories are highly damaging Relation to Text: This slide relates to the content on pages 25-26 of the text. Summary Overview: This slide presents the definition of publicity which refers to nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. This slide also presents the advantages and disadvantages of publicity. Use of this Slide: This slide can be used to define publicity and discuss its advantages and disadvantages. It can also be used to discuss recent news stories, both positive and negative, about major companies. Ask students how much control they feel these companies had over the content of the stories. If negative, were they able to mitigate some of the damage? If positive, did it bring them any additional benefits, such as increased business or donations? It may also be enlightening to take a poll of students to see how many felt that a particular story was damaging to the target’s reputation, had limited impact, or had no impact whatsoever.

Public Relations Evaluates public attitudes Identifies policies and procedures of an individual or organization with the public interest Goal - Establish and maintain a positive image among various publics Relation to Text: This slide relates to the content on page 26 of the text. Summary Overview: This slide presents the definition of public relations. Public relations is defined as 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. Use of this Slide: This slide can be used to explain that public relations has a broader objective than publicity; its purpose is to establish and maintain a positive image of the company among its various publics.

Personal Selling Person-to-person communication in which seller attempts to assist and/or persuade prospective buyers to: Purchase a company’s product Act on an idea Allows seller to tailor messages to the customer’s specific needs or situation Involves immediate and precise feedback Relation to Text: This slide relates to the content on page 27 of the text. Summary Overview: This slide presents the final element or an organization’s promotional mix—personal selling. Use of this Slide: This slide can be used to give the definition and a general understanding of personal selling. Personal selling is a form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company’s product or service or to act on an idea. It allows the seller to tailor the message to the customer’s specific needs or situation. It also involves immediate and precise feedback.

Contact or Touch Point Every opportunity a customer has to see or hear about a company and/or its brands or have an encounter or experience with it Categories Company created Intrinsic Unexpected Customer-initiated Relation to Text: This slide relates to the content on pages 27-28 of the text. Summary Overview: This slide discusses the audience contact or touch point perspective of companies. A contact (or touch) point refers to each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it. Use of this Slide: This slide can be used to discuss and understand the categories of contact or touch point. Company created touch points are planned marketing communication messages created by the company. Intrinsic touch points are interactions that occur with a company or brand during the process of buying or using the product or service. Unexpected touch points are unanticipated references or information about a company or brand that a customer or prospect receives that is beyond the control of the organization. Customer-initiated touch points are interactions that occur whenever a customer or prospect contacts a company.

Figure 1.5 - IMC Audience Contact Tools Relation to Text: This slide relates to Figure 1-5 on page 28 of the text. Summary Overview: This figure illustrates various IMC audience contact tools. Use of this Slide: This slide can be used to illustrate that there are additional ways companies communicate with current and prospective customer that extend beyond the traditional promotional mix. Product placements, word-of-mouth, and point-of-purchase displays are a few of those ways. Each and every opportunity a customer has to see or hear about a company and/or its brands, or has an encounter or experience with it, is a contact (touch) point.