CHAPTER 12 Integrated Marketing Communications M A R K E T I N G Real People, Real Choices Fourth Edition

12-2 Chapter Objectives_1 Understand the role of marketing communication Understand the communication model List and describe the elements of the promotion mix Explain guerrilla marketing, viral marketing, buzz, and hype

12-3 Chapter Objectives_2 Explain integrated marketing communications and its characteristics Explain the stages in developing the IMC plan Explain the current trend toward interactive promotion strategies Explain why database marketing is increasingly popular and how databases are developed and managed

12-4 How Many Can You Answer? Name the tiger that says, “They’re grrrrrreat!” Name one or more products for which Tiger Woods is a spokesperson. What character is featured in Energizer battery ads? At Burger King, you can have it “ ___,” whereas at Hardee’s the burgers are _____.

12-5 Functions of Marketing Communications Inform Persuade Remind Build relationships

12-6 Traditional Forms Advertising Sales promotion Event marketing Direct selling Public Relations Direct marketing

12-7 Role of IMC IMC is a plan for optimal use of the elements of promotion: advertising, personal selling, sales promotion, and public relations

12-8 Putting It All Together Integrated Marketing Communications (IMC) is “a strategic business process used to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time with consumers, customers, prospects, and other targeted, relevant external and internal audiences.”

12-9 Appeals Personal appeals allow for direct interaction between a company representative and a customer Mass appeals seek to reach many prospective customers at the same time New appeals –Guerrilla marketing –Viral marketing –Buzz and hype

12-10 Advertising Non-personal communication from an identified sponsor using the mass media can: –convey rich and dynamic images –establish and reinforce brand identity –communicate factual information –remind customer to buy

12-11 Sales Promotion Programs that build interest or encourage purchase of a product through the use of an incentive in a specified time period –coupons –contests –rebates –premiums

12-12 Publicity and Public Relations Portray an organization and its products positively by influencing the perceptions of various publics –writing press releases –holding special events –conducting and publishing consumer surveys –putting a positive spin on negative news

12-13 Characteristics of an IMC Program Creates a single unified voice Begins with the customer Seeks to develop relationships Involves 2-way communication Focuses on stakeholders Generates a continuous stream of communication Measures results based on actual feedback

12-14 Effects of Time and the PLC Introduction phase: push strategy; mix relies heavily on advertising, sales promotions, and public relations Growth phase: heavy advertising with emphasis on differentiation Maturity phase: emphasis on sales promotions to encourage brand switching Decline phase: dramatic reductions in promotional spending

12-15 Importance of Measurement Is the plan working? –Measure response to sales promotions –Measure brand awareness, recall, and image before and after ad campaign –Analyze and compare sales performances by territory and sales force –Clip articles appearing in media

12-16 Issues for Discussion Some people say there is nothing new about IMC. What do you think? Guerrilla marketing, viral marketing, and hype are new methods companies use to get their messages to consumers. Are they effective? Are they fads? Why do you think marketers and ad agencies resist the changes necessary to use IMC?