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

1-2 The Modern World of Marketing Rapidly changing media environment Mass media losing viewers, readers, listeners Digital media targets narrow audience Consumers not content to be passive message recipients Information now obtained from a myriad of sources

1-3 Volkswagen Strategy Integrated Marketing Strategy Traditional Mass Media Social Media Sports Team Sponsor Point-of- Sale Kits

1-4 Punch Dub Entertaining, interactive information

1-5 The Growth of Advertising and Promotion Integral part of social and economic systems Carefully prepared messages delivered to carefully targeted audiences Six-fold increase between 1980 and 2010 New marketing channels Internet ads (banner ads, videos, webisodes) Social media Mobile marketing

1-6 The Role of Marketing Advertising & Promotion Inform customers of a product or service Convince them of its ability to satisfy their wants or needs Help develop and sustain relationships Nonprofit Organizations Solicit donations Offer intangible social and psychological satisfactions

1-7 What is Marketing? The activity, set of institutions, and processes for… creating, communicating, delivering, and exchanging offerings that have… value for customers, clients, partners, and society at large

1-8 What is Value? Customer’s perception of all the benefits of a product or service Weighed against costs of acquiring and consuming it Benefits can be… Functional Experiential Psychological

1-9 The Marketing Mix The Four Ps Product Price Place Promotion

1-10 Contemporary IMC Approach Point of purchase Publicity Interactive marketing Public relations Direct marketing Special events Packaging Sales promotion Direct response Mass media advertising

1-11 Growing Importance of IMC Value of IMC Avoids duplication of marketing efforts Synergy among promotional tools More efficient and effective marketing Rapidly changing environment Consumer behavior Technology Media consumption behavior Proliferation of media

1-12 The Marketing Revolution Shift from traditional media ads to other forms of promotion/nontraditional media Internet and social media changing how companies interact with consumers Power shift: manufacturers to retailers Database marketing Greater ad agency accountability Changes in how ad agencies are compensated

1-13 The Role of IMC in Branding Brand Identity Image or Associations Performance Name Packaging Logo Design Symbols

1-14 Building Brands in a Recession Consumers Spend less money Carefully scrutinize purchases Rethink brand loyalties Willing to trade off or down More price sensitive More value conscious

1-15 Building Brands in a Recession Reduce advertising budgets Balance discounts/promos w/brand image Must overcome consumer distrust Change product marketing focus Increase online social presence Look for new ways to remain relevant Companies

1-16 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

1-17 The Promotional Mix Interactive/ Internet Marketing Advertising Direct Marketing Personal Selling Sales Promotion Publicity/ Public Relations

1-18 Advertising Paid, nonpersonal communication About an organization, product, service, or idea With an identified sponsor No immediate feedback from audience

1-19 Non-Personal Media Mass media TV Radio Magazines Newspapers Benefits Cost effective Large audiences

1-20 Advertising Classifications Primary / Selective Demand Business-to-Business Organizations National Retail / Local Professional Trade Consumers

1-21 Forms of Direct Marketing Database Management Telemarketing Direct Mail Shopping Channels Catalogs Internet Sales Direct Selling Direct Response Ads

1-22 Direct Response Advertising Encourages consumers to purchase directly from the manufacturer

1-23 Direct Response Advertising Major Tools Direct Mail Television Magazines Internet Forces for Change Changing Lifestyles Credit Cards Toll-free Numbers Rapid Internet Growth

1-24 Interactive Marketing Interactive media Internet Kiosks Interactive television Cell phones Other mobile devices

1-25 Interactive Marketing Internet activities Advertise products and services Link ads and websites to search engines Offer coupons, contests, sweepstakes Conduct direct marketing Do personal selling Conduct public relations activities Measure advertising and promotions

1-26 Sales Promotion Marketing activities that provide extra value or incentives to the… Sales Force Retailers Ultimate Consumer

1-27 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

1-28 Publicity High credibility and low cost Not always under company control Is sometimes unfavorable A news story, editorial, or announcement to a mass audience Not directly paid for or run under identified sponsor

1-29 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

1-30 Public Relations Uses publicity and other tools Special publications Community activities Fund-raising events Sponsorships Public affairs activities

1-31 Personal Selling Person-to-person communication A seller attempts to assist and/or persuade prospective buyers to make a purchase or act on an idea

1-32 IMC Audience Contact Tools

1-33 Touch Points: Control vs. Impact

1-34 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

1-35 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

1-36 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

1-37 Analysis of Communications Process Communication decisions Source and message Communication channels Media mix Costs Marketing goals Communication objectives

1-38 Budget Determination What will the promotional program cost? How will the money be allocated?

1-39 Developing the IMC Program IMC Strategies CreativeMedia

1-40 Monitoring, Evaluation, Control Basic Goals Determine how well the program is doing, and why Problem correction Continual management feedback Input for future promotions/strategies