1 Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed McGraw-Hill/Irwin An Introduction to Integrated Marketing Communications

1-2 Gatorade Case History In 1965 football coach of Gators met with medical researchers Players’ electrolytes and carbs not being replenished Gatorade created to address these needs Official sports drink of NFL, MLB, NHL, NBA High profile endorsers Michael Jordan / Serena Williams

1-3 Gatorade Case History - continued In 2008, economy crashed Gatorade sales declined due to new products launched Energy bars / vitamin waters / protein powders Consumers had more sports nutrition choices Gatorade losing relevance among target audience

1-4 Gatorade Case History - continued In 2010, launched G Series product line (drinks, chews, shakes, powders and bars) Major social media push (along with sponsorships, advertising and IMC) Sales grew 9% in 2012 and retains leadership position

1-5 Gatorade IMC Strategy Integrated Marketing Strategy Traditional Mass Media Social Media Sponsor- ships Point-of- Sale

1-6 Change in Media Landscape Past: only mass media Today: Fragmented and Targeted Average HH has over 130 TV channels; DVD’s /Video-On-Demand Internet ads/social media/mobile marketing Consumers in control of their content Need for well planned/executed Integrated Marketing Communications

1-7 What is Marketing? A process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual / organizational objectives

1-8 Other Marketing Concepts Marketing Exchange Two or more parties with something of value Desire to give up that something Way to communicate with each other Not all exchanges are money: nonprofit donations for goodwill Relationship Marketing More than one time sale

1-9 What is Value? Benefits of a product vs. costs of acquiring it Benefits can be functional/experiential/ psychological Costs are $ paid/learning how to use it/ maintaining it

1-10 The Marketing Mix The Four Ps Product Price Place Promotion How to combine elements for an effective marketing program Good advertising doesn’t replace poor product / priced improperly / can’t find it in stores

1-11 Integrated Marketing Communications Concept of planning Recognizes added value of a comprehensive plan That combines a variety of communication disciplines Advertising/sales promotion/publicity To provide clarity, consistency and maximum communications impact

1-12 Contemporary IMC Approach Point of purchase Publicity Digital – Internet Marketing Public relations Direct marketing Special events Packaging Sales promotion Direct response Mass media advertising By coordinating marketing communication efforts: Avoid duplication Increase synergy More efficient and effective programs

1-13 Test Your Knowledge Why are marketers decreasing the use of mass media advertising and increasing the use of integrated marketing communications? A) The mass market has become fragmented B)New technologies gave consumers greater control over the communication process C)Use of the Internet and electronic commerce is growing D)Explosive growth in social networking E)All of the above

1-14 What is Brand Identity? Brand Identity Image or Associations Performance Name Packaging Logo Design Symbols

1-15 Class Exercise In the next ONE MINUTE: -Write down as many brands, in any category, that you can think of GO!

1-16 World’s Top 10 Brands Apple Google Coca-Cola IBM Microsoft General Electric McDonald's Samsung Intel Toyota Source: Interbrand’s Best Global Brands 2013

1-17 What is Promotion? The coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods or services

1-18 The Promotional Mix Digital/ Internet Marketing Advertising Direct Marketing Personal Selling Sales Promotion Publicity/ Public Relations Basic tools used to accomplish objectives

1-19 Advertising Paid, non-personal communication About an organization/product/service With an identified sponsor No immediate feedback from audience EXCEPTION: PSA (Public Service Announcement) – space donated by media

1-20 Advertising – continued Mass media TV Radio Magazines Newspapers Benefits of Advertising Cost effective Reaches large audiences Advertising is best way to build brand image

1-21 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 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

1-22 Advertising to Business / 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 Targets marketing channel members, encouraging them to stock, promote, and resell the manufacturer’s branded products to their customers Trade advertising

1-23 Leading U.S. Advertisers Proctor & Gamble General Motors Comcast AT&T Verizon Ford L’Oreal JPMorgan / Chase American Express Toyota Fiat / Chrysler Walt Disney Walmart Time Warner Target Johnson & Johnson Pfizer Bank of America Macy’s Berkshire Hathaway Anheuser-Busch Sears

1-24 Direct Marketing Database Management Telemarketing Direct Mail Shopping Channels Catalogs Internet Sales Direct Selling Direct Response Ads Organizations communicate directly with customers to generate response/sale

1-25 Direct Response Advertising Encourages consumers to purchase directly from the manufacturer

1-26 Direct Response Advertising - continued Media Used Direct Mail Television Magazines Internet Reason for Growth Changing Lifestyles Credit Cards Toll-free Numbers Rapid Internet Growth

1-27 Digital/Internet Marketing Interactive media Allow users to participate in and modify the content of the information they receive in real time Social media Online means of communication and interactions used to create, share, and exchange content Mobile marketing Messages delivered are specific to a consumer’s location or consumption situation

1-28 Advantages of Digital/Internet Marketing Interactive nature Capability to precisely measure the effects of advertising and other forms of promotion

1-29 Sales Promotion Marketing activities that provide extra value or incentives to the… Sales Force Retailers Ultimate Consumer

1-30 Consumer vs. Trade Promotions Consumer- oriented Trade- oriented Couponing, sampling, premiums, rebates, contests, sweepstakes, POP materials Wholesalers, distributors, retailers Encourages immediate purchases Promotional/merchandising allowances, price deals, sales contests, trade shows

1-31 Sales Promotion Increased emphasis due to: Declining brand loyalty Increased consumer sensitivity to promotional deals Retailers’ demand for more trade promotion support from companies

1-32 Publicity Advantages: High credibility and low cost Advantages: High credibility and low cost Tools: News release; feature articles; press conference Tools: News release; feature articles; press conference Disadvantages: Is sometimes unfavorable; Not always under company control Disadvantages: Is sometimes unfavorable; Not always under company control A news story, editorial, or announcement to a mass audience Non-personal/not directly paid for by identified sponsor

1-33 Public Relations Management function Evaluates public attitudes Identifies items of public interest Executes a program of action to earn public understanding and acceptance Primary objectives Establish and maintain a positive image of the company among various publics

1-34 Public Relations Tools: Special publications Community activities Fund-raising events Sponsorships Public affairs activities

1-35 Personal Selling Person-to-person communication Face to face or telephone sales Persuade target to make a purchase Provides immediate feedback to tailor message

1-36 IMC Audience Contact Tools Determine which tools most effective in reaching target

1-37 Touch Points: Control vs. Impact Every opportunity consumer sees/hears/experiences product

1-38 IMC Planning Model Promotional program situation analysis Analysis of the communications process Budget determination Develop integrated marketing communications programs Review of marketing plan Advertising Sales promotion PR/ publicity Personal selling Direct marketing Advertising objectives Sales promotion objectives PR/ publicity objectives Personal selling objectives Direct marketing objectives Message strategy Sales promotion strategy PR/ publicity strategy Personal selling strategy Direct marketing strategy Integrate and implement marketing communications strategies Monitor, evaluate and control IMC Program Internet/ interactive Internet/ interactive objectives Internet/ interactive strategy

1-39 Elements of a Marketing Plan Detailed situation analysis Marketing strategy and program Specific marketing objectives Program for implementing the strategy Process for monitoring & evaluating performance

1-40 Promotional Program Situational Analysis Internal Firm’s promotional organization/capabilities Review of previous programs and results Assess firm/brand image Assess strengths and weaknesses of product or service External Customer analysis Competitive analysis Environmental analysis

1-41 Types of Objectives Marketing Objectives What is to be accomplished by marketing programs Stated in terms of sales, market share, profitability Communication Objectives What is the nature of message to be communicated Creating awareness/image/favorable attitude/knowledge about product and it’s benefits

1-42 Budget Determination What will the promotional program cost? How will the money be allocated?

1-43 Developing the IMC Program IMC Strategies CreativeMedia Basic appeal/message Which communication channel to use

1-44 Monitoring, Evaluation, Control Basic Goals Determine how well the program is doing, and why Problem correction Continual management feedback Input for future promotions/strategies