Integrated Marketing Communications MKT 846 Professor West

What is IMC? According to Ogilvy & Mather… IMC is “orchestration”

Orchestral Analogy An orchestra consists of many instruments, each of which produces a different sound… Whereas, marketing communication involves multiple media with differing characteristics.

Orchestral Analogy If the sounds are not coordinated, the orchestra produces noise rather than music… Similarly, an ill-conceived communications plan can send inconsistent messages, detracting from the brand.

Orchestral Analogy An orchestra performs according to a musical score and under the direction of a conductor… An IMC plan should detail which marketing communications functions and what media will be used a which times and to what extent. The plan must be clearly communicated internally and overseen to make sure that everyone understands their role

What is the Purpose of IMC? According to Duncan… The primary responsibility of IMC is to help the organization to: Acquire, Retain, and Grow Customers!

Focus on Brand Building Strong brands add value From the firm’s perspective… Brand equity can be leveraged through extensions, collaborations, licensing From the customer’s perspective… Brands provide assurance, simplify our lives, reflect our personality Brands transform products – goods as well as services – into something larger than the product itself.

Transactions to Relationships The marketplace has changed: Increased Competition Distrustful Customers New technologies Recognition that it’s more profitable to retain than acquire customers Managing customer relationships drive brand value Communication is the foundation of all relationships, including brand relationships

IMC Helps Build Profitable Customer Relationships Focuses on relationships instead of transactions Establishes more personal, two-way communication with customers Determines the best mix of marketing communication functions and media for a brand Helps ensure that a brand has one voice, one look Takes advantage of new media and new communication and information technologies Builds trust in a brand by creating an open, customer-focused culture

Building Relationships With Boots The Chemists

Case Study: Boots The Chemists Largest pharmacy chain in Britain J. Walter Thompson launched a strategic relationship building IMC campaign Elements of the campaign Consumer perceptions – “man in the white coat” Trusted authority New positioning “look good and feel good” Understanding, stimulating, personalized, fulfilling, enjoyable Campaign Objectives Increase profitability by increasing frequency of visits and amount spent per visit Enroll 8 million cardholders in 12 months Achieve an incremental sales increase of 3.2 percent

Case Study: Boots The Chemists Elements of the campaign (cont.) Target Audience 83% of customers are women Focus on young women who could be motivated to “treat themselves” rather than “deal-seekers” Creative Strategy Boots Rescue Resolution

Case Study: Boots The Chemists Elements of the campaign (cont.) Message Delivery In-store material & staff training followed by television Evaluation Launch produced a database of 8 million BTC customers More than 3 percent sales increase in year 1, 8 percent in year 2 Cardholders’ average purchase was 8 percent high than non- cardholders

Relationship Intensity Stages of Relationships Awareness: brand is included in customer’s evoked set Identity: customers display the brand, indicating an emotional attachment to it Connected: customers communicate with the company in-between purchases Community: customers communicate with each other Advocacy: customers communicate with prospects, make referrals

Four Basic Components A sound IMC plan will be based on research and careful consideration of the situation and environment in which the effort will take place. The plan will include four basic components: Objectives – What you want accomplished Strategies – Ideas for accomplishing objectives Tactics – Actions for executing the strategy Evaluation – Measures for evaluating success

Marketing Plan Situation Strategy Marketing Target Analysis Development Mix Market Compan y Compet itors Collab orator s Consum ers Enviro nment Compan y Compet itors Collab orator s Consum ers Enviro nment Identi fy Marke ts Identi fy Marke ts Marke t Segmen tation Marke t Segmen tation Select a Target Marke t Select a Target Marke t Develo p Positio ning Develo p Positio ning Product Decisions Pricing Decisions Channel Decisions Promotional Decisions Product Decisions Pricing Decisions Channel Decisions Promotional Decisions Reseller Custom er:  Consum er  Busine ss Custom er:  Consum er  Busine ss Promotion to final buyer Promotion to trade Purchase

Marketing Plan Situation Strategy Marketing Target Analysis Development Mix Market Compan y Compet itors Collab orator s Consum ers Enviro nment Compan y Compet itors Collab orator s Consum ers Enviro nment Identi fy Marke ts Identi fy Marke ts Marke t Segmen tation Marke t Segmen tation Select a Target Marke t Select a Target Marke t Develo p Positio ning Develo p Positio ning Product Decisions Pricing Decisions Channel Decisions Promotional Decisions Product Decisions Pricing Decisions Channel Decisions Promotional Decisions Reseller Custom er:  Consum er  Busine ss Custom er:  Consum er  Busine ss Promotion to final buyer Promotion to trade Purchase Advertising Direct Marketing Interactive Marketing Sales Promotion Publicity and PR Personal Selling Internal Communication

Course Overview Syllabus highlights… Materials: Duncan, “IMC: Using Advertising & Promotions to Build Brands” Purvis, “Which Ad Pulled Best,” 9 th edition Objectives: To experience IMC planning by working together to develop a communications plan To sharpen your skills at evaluating existing marketing communication material

Course Overview Syllabus highlights… Requirements Your performance will be assessed through a combination measuring including: Daily participation – 10% Final (in-class) – 30% Four “Mini-Projects” – 20% Final Presentation & Paper – 40%

Course Overview Webpage ( Syllabus Schedule (daily slides) Project Information Resources

Project Details Teams will develop a marketing communications plan for a product or service of their choosing Criteria for selecting a product/service: The brand could improve its market position by changing its communications strategy. The brand is suited to TV advertising Access to members of the target market for research purposes Use of mini-projects to foster a systematic approach and provide feedback Step 1: Situation Analysis Step 2: Target selection, positioning, communication objectives, creative development

Project Details Use of mini-projects to foster a systematic approach and provide feedback Step 3: Sales & Trade Promotions Step 4: Direct Marketing Additional Elements Budget, Evaluating Success Various team members should adopt differing perspectives to be sure that all stakeholders are considered

Team Selection Each class member selects one “teammate” However, you may not end up on the same team Write your name and your intended teammate’s name on the form provided You and your teammate should only submit one page Ten pairs of names will be drawn to form four person teams The remaining names … Will be separated and drawn one at a time If your name is picked you will have the opportunity to join any team with only four members

Next Time… Catch up on reading Duncan Chapters Set up “weekly meeting time” with your team and get cracking on picking your product or service