Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 1 Promotion = 1 Of the 4 P’s Promotion is “to move forward” Promotion is COMMUNICATION undertaken to persuade others to accept ideas, concepts or things. Ralph Waldo Emerson once said: “It is a luxury to be understood” Promotion is perceived as communication via the “silo” method (i.e., inefficient!).

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 2 Traditional Promotion Tools Refer to hand-out: Advertising Personal Selling Public Relations/Publicity Sales Promotions

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 3 Marketing Communication Defined: the collective term for all the communication functions used in marketing a product Not new, used for years Perceived as different options to choose from by marketing organizations

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 4 Traditional Marketing Communication Functions See Table 1-3 in text Figure 1-3, p.17

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 5 Moving from transactions to relationships In recent years, the marketplace has changed: Competition has increased Customers have become more distrustful of businesses New communication and information technologies have been developed Companies have discovered it’s more profitable to sell to current customers than to new ones IMC is a current attempt to make promotion more efficient and effective. I.E., PUT THE PUZZLE TOGETHER  SYNERGY!

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 6 What is IMC? Process for managing customer relationships that drive brand value. Its foundation is communication. Cross-functional process for creating and nourishing profitable relationships with customers other stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging data-driven, purposeful dialogue with them.

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 7 IMC Process Model Figure 1-1, p.9

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 8 Five Major Elements of the Definition of IMC 1) Cross-functional. 2) Creating and nourishing stakeholder relationships. 3) Profitable customer relationships. 4) Strategically controlling or influencing all messages. 5) Encouraging purposeful dialogue. So…how is Airtran doing lately? Still using IMC?

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 9 Integration Integration involves more than marketing communication. Integration means unity and wholeness. Through unity, synergy can be achieved. Another basic principle of IMC: When an organization is not integrated internally, it is difficult, if not impossible, for the brand to be integrated externally in the minds of customers, prospects, and other stakeholders.

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 10 Integration Components Figure 1-4, p.23

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 11 Evolution of IMC The concept of IMC – the idea of managing customer relationships – is not new. However, the processes used in managing IMC, such as taking advantage of new communication and database technologies and creating synergy for a brand, are new.

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 12 Trends Driving Integration Figure 1-5, p.28

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 13 Relationship Revolution How companies communicate with customers and sell products will change due to: New technological developments Expansion of global marketplace Growing competition among internal departments and external suppliers Shift from manufacturing to a service-based economy Increases in mergers and acquisitions Critical and demanding customers