© 2007 by Prentice Hall 1-1 Chapter Overview Highly competitive global marketplace Need to invest marketing dollars wisely Firms are demanding accountability Change in roles of account executives, creatives and brand managers Chapter One topics: Communication processes Integrated marketing communications Global integrated marketing communications Integrated Marketing Communications 1

© 2007 by Prentice Hall 1-2 F I G U R E 1.1 Communication Process

© 2007 by Prentice Hall 1-3 F I G U R E 1. 2 Communication Noise in Television Advertising

© 2007 by Prentice Hall 1-4 Advertising Clutter How many ads were you exposed to during the last 24 hours from the following media? –Television –Radio –Magazines –Newspapers –Billboards –Internet Web sites How many ads can you recall from each of the above media? Discussion Slide

© 2007 by Prentice Hall 1-5 Integrated Marketing Communications is the coordination and integration of all marketing communication tools, avenues, and sources within a company into a seamless program which maximizes the impact on consumers and other end-users at a minimal cost. The IMC includes all business-to- business, channel, customer, external communications, and internal communications.

© 2007 by Prentice Hall 1-6 F I G U R E 1. 3 Components of Promotion ProductPricePromotionDistribution AdvertisingSales PromotionsPersonal Selling Database Marketing Direct Marketing Sponsorship Marketing Internet Marketing Public Relations

© 2007 by Prentice Hall 1-7 Situation analysis Marketing objectives Marketing budget Marketing strategy Marketing tactics Evaluation of performance F I G U R E 1. 4 The Marketing Plan

© 2007 by Prentice Hall 1-8 F I G U R E 1. 5 An IMC Plan

© 2007 by Prentice Hall 1-9 Company logo Product brand name and company name Business cards Letterhead Carry home bags (paper or plastic) Wrapping paper Coupons Promotional giveaways (coffee mugs, pens, pencils, calendars) Design of booth for trade shows Advertisements (billboards, space used on cars and buses, television, radio, magazines, and newspapers) Toll free 800 number Company database Cooperative advertising with other businesses Personal selling pitches Characteristics of target market buyers Characteristics of business buyers Sales incentives provided to sales force (contests, prizes, bonuses, and commissions) Internal messages Company magazines and newspapers Statements to shareholders Speeches by company leaders Public relations releases Sponsorship programs Web site Exhibit 1.2 Items to Be Included in an IMC Program

© 2007 by Prentice Hall 1-10 Four Stages in Cultivating an IMC System l Stage 1: Identify, coordinate, and manage all forms of external communications. l Stage 2: Extend the scope of communication to include everyone in the organization. l Stage 3: Apply information technologies to the IMC program. l Stage 4: Treat the IMC as an investment and not a departmental function. [American Productivity & Quality Center]

© 2007 by Prentice Hall 1-11 Strategies of the Best Companies Developed both interpersonal and cross-functional communications. Involved customers in planning processes. Understood customers as corporate customers for the purpose of cross- selling. [American Productivity & Quality Center]

© 2007 by Prentice Hall 1-12 Development of information technology Changes in channel power Increase in competition (global competitors) Maturing markets Brand parity Integration of information by consumers Decline in effectiveness of mass media advertising F I G U R E 1. 6 Factors Affecting the Value of IMC Programs

© 2007 by Prentice Hall 1-13 F I G U R E 1. 7 Global Internet Retail Sales by Product Type

© 2007 by Prentice Hall 1-14 F I G U R E 1. 8 Market Share – Top Four Shoe Brands Source: Greg Lindsay, “The Rebirth of Cool,” Business 2.0, Vol. 5, No. 8 (September 2004), pp

© 2007 by Prentice Hall 1-15 Source: Jennifer Lach, “Commercial Overload,” American Demographics, (September 1999), Vol.. 21, No. 9, p. 20. F I G U R E 1. 9 Viewer Activities During TV Commercials Positive Responses Ads have potential to be entertaining (45%) Sit and watch ads (16%) Negative Responses Get up and do something else (54%) Get annoyed (52%) Switch channels (40%) Talk to others in the room (34%) Turn down the sound on the TV (19%) Read (11%) Use the computer (5%)

© 2007 by Prentice Hall 1-16 Global Integrated Marketing Communications GIMC is more challenging in the international arena Standardization vs Adaptation “Think globally, but act locally”