1. Introduction to Advertising & IMC
Chapter One
An Introduction to Integrated Marketing Communications
Introduction to Advertising & IMC
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2. Defining Advertising Paid Communication Informs, persuades or reminds
Mass Audience Target
Media-driven
Relation To Text
This slide relates to the material on p. 11 of the text, which discusses the evolution of IMC.
Summary Overview
This slide shows the new definition of IMC developed by Don Schultz of Northwestern University who is one of the leading IMC scholars. The three major aspects of this new definition of IMC are shown in the next slide.
Use of this slide
This slide can be used to present the new definition of IMC developed by Schultz. You might compare this new definition to the original definition of IMC developed by the American Association of Advertising Agencies, which is shown on p. 10.

3. Basic Elements of the Promotional Mix
Advertising
Personal Selling
Direct Marketing
Direct Marketing
Interactive/
Internet Marketing
Interactive/
Internet Marketing
Relation to text This slide relates to material on page and Figure 1-2.
Summary Overview The promotional mix is the basic tools used to accomplish an organization’s communication objectives. These tools include:
Advertising – any paid form of non personal communication about an organization, product, service, or idea by an identified sponsor
Direct marketing – communication directly with target customers to generate a response and/or transaction
Interactive/Internet marketing – communication through interactive media such as the Internet, CD-ROMS and kiosks.
Sales promotion – marketing activities that provide extra value or incentives to sales force, distributors, or consumers to stimulate immediate sales
Publicity/Public Relations – Publicity is a form of non-personal communication not directly paid for or run under identified sponsorship. Public relations is a management function which executes programs of action to earn public understanding and acceptance an enhance the image of the company.
Personal Selling – person-to-person communication between a seller and buyer
Use of this slide This slide can be used to introduce and define the various elements of the promotional mix.
Sales Promotion
Sales Promotion
Publicity/Public
Relations
Publicity/Public
Relations
Advertising

4. “The lifeblood of our business.” - P&G executive
Defining Advertising
THE BRIGHT SIDE
“The lifeblood of our business.” - P&G executive
“Sometimes entertaining stuff that makes tv free.” - anonymous consumer
“A driving force behind the American economy.” - Adam Smith, Distinguished Economist
Relation To Text
This slide relates to the material on p. 11 of the text, which discusses the evolution of IMC.
Summary Overview
This slide shows the new definition of IMC developed by Don Schultz of Northwestern University who is one of the leading IMC scholars. The three major aspects of this new definition of IMC are shown in the next slide.
Use of this slide
This slide can be used to present the new definition of IMC developed by Schultz. You might compare this new definition to the original definition of IMC developed by the American Association of Advertising Agencies, which is shown on p. 10.

5. “A shot in the dark. A necessary evil.” - anonymous executive
Defining Advertising
THE DARK SIDE
“A shot in the dark. A necessary evil.” - anonymous executive
“An annoying interruption to my favorite tv show that makes my Big Mac more expensive.” - anonymous consumer
“…gets on everybody’s nerves… intrudes everywhere… and gets at you when you least expect or want it.” - Theodore Levitt, Marketing Academic
Relation To Text
This slide relates to the material on p. 11 of the text, which discusses the evolution of IMC.
Summary Overview
This slide shows the new definition of IMC developed by Don Schultz of Northwestern University who is one of the leading IMC scholars. The three major aspects of this new definition of IMC are shown in the next slide.
Use of this slide
This slide can be used to present the new definition of IMC developed by Schultz. You might compare this new definition to the original definition of IMC developed by the American Association of Advertising Agencies, which is shown on p. 10.

6. The Growth of Advertising and Promotion
Relation to text This slide relates to material on page 5 of the text.
Summary Overview This chart displays the growth of advertising and promotion in the U.S. and outside the U.S. over the past twenty years. Reasons for the growth in advertising and promotion are:
Overall growth of both U.S. and global economies
Efforts of expansion minded marketers to take advantage of the growth opportunities
Recognition around the world of the value and importance of advertising and promotion as part of the marketing process
Use of this slide This slide can be used to show that advertising and promotion are an integral part of our social and economic systems. Over the years advertising has evolved into a vital communications system for both consumers and businesses. In market based economies, consumers have come to rely on advertising and other forms of promotion for information they can use in making purchase decisions.
Relation to text This slide relates to material found on page 7 of the text.
Summary Overview This slide charts evidence of the increasing importance of advertising and promotion expenditures. The increase in spending on advertising and promotion over the past three decades provides evidence of the important role of marketing communications.
Use of this slide This slide can be used to discuss what factors have contributed to the tremendous growth in expenditures for advertising and promotion, such as the growth of the U.S. and global economies and the efforts of expansion-minded markets to take advantage of these growth opportunities.
NEED TO USE UPDATED Numbers from 2005, Advertising Outside US $294
US Sales Promotion Ok
US Advertising $276
Change year in Box to 2005

7. Traditional Approach to Marketing Communications
Publicity
Point of
purchase
Sales
promotion
Media
Adver-
tising
Packaging
Special
events
Relation to text This slide relates to material on pp of the text.
Summary Overview This slide shows the traditional approach to advertising and promotion where many of the marketing and promotional functions were planned and managed separately with different budgets, different views of the market, and different goals and objectives.
Many of the marketing activities such as package design, sales promotion, and direct marketing services were viewed as ancillary services and handled on a project basis rather than integrating them into the IMC program.
Use of this slide This slide can be used to show the traditional approach to marketing communications that lacks coordination and consistency. The disconnected puzzle pieces are designed to demonstrate how traditional approaches to marketing communications often viewed the various IMC tools as separate pieces of the puzzle rather than having them all work together.
Public
relations
Direct
response
Interactive
marketing
Direct
marketing

8. Contemporary IMC Approach
Packaging
Sales
promotion
Direct
response
Media
Adver-
tising
Point of
purchase
Public
relations
Publicity
Relation to text This slide relates to material on pp of the text which discusses the contemporary approach to integrated marketing communications.
Summary Overview This slide shows the contemporary approach to advertising and promotion which is referred to as Integrated Marketing Communications. This approach seeks to have all of a company’s marketing and promotional activities project a consistent, unified image in the marketplace. It calls for a centralized messaging function so that everything a company says and does communicates a common theme and positioning
Use of this slide This slide can be used to show the contemporary approach to marketing communications that includes coordination and consistency. The connected puzzle pieces are designed to demonstrate how the various IMC tools are coordinated with media advertising and work together in a seamless fashion to create an effective communications program.
Interactive
marketing
Direct
marketing
Special
events

9. Defining IMC
IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences.
Relation To Text
This slide relates to the material on p. 11 of the text, which discusses the evolution of IMC.
Summary Overview
This slide shows the new definition of IMC developed by Don Schultz of Northwestern University who is one of the leading IMC scholars. The three major aspects of this new definition of IMC are shown in the next slide.
Use of this slide
This slide can be used to present the new definition of IMC developed by Schultz. You might compare this new definition to the original definition of IMC developed by the American Association of Advertising Agencies, which is shown on p. 10.

10. Reasons for the Growing Importance of IMC
From
Toward
Media advertising
Multiple forms of communication
Media advertising
Multiple forms of communication
Mass media
Specialized media
Mass media
Specialized media
Manufacturer dominance
Retailer dominance
Manufacturer dominance
Retailer dominance
Relation to text This slide relates to material on pp of the text which discusses reasons for the growing importance of IMC.
Summary Overview The integrated marketing communications movement is also being driven by changes in the ways companies market their products and services. A major reason for the growing importance of the IMC approach is the ongoing revolution that is changing the rules of marketing. These changes include:
A shift in dollars from media advertising to other forms of promotions particularly consumer and trade oriented sales promotion.
A movement away from mass media and advertising toward more targeted communication tools such as event marketing and sponsorship, direct mail, and the Internet.
A shift in marketplace power from manufacturers to retailers resulting in retailers demanding larger promotional fees and allowances from manufacturers.
Technology has allowed for a rapid increase in database development and information sharing. Marketers are using this information to improve market targeting.
Greater accountability from advertising agencies and changes in agency compensation. Companies are moving more toward incentive based systems of compensation.
Rapid growth of the Internet. The interactive nature of the Internet has made it a vital part of most companies’ communications strategy
Use of this slide This slide can be used to explain the reasons for the growing importance of IMC in contemporary marketing.
Concept Driven Appeals
Data-driven marketing
General focus
Data-based marketing
Low agency accountability
Greater agency accountability
Low agency accountability
Greater agency accountability
Traditional compensation
Performance-based compensation
Traditional compensation
Performance-based compensation
Limited Internet availability
Widespread Internet availability

11. IMC Audience Contact Tools
Broadcast media (TV/radio)
Print media (newspapers, magazines)
Public Relations/ publicity
Internet/ interactive
Direct
marketing
Sales Promotion
Product placements (TV and movies)
Events and sponsorship
Word-of-mouth
Point-of-purchase (displays, packaging)
Personal selling
Out-of-home media
Target Audience
Relation to text This slide relates to material on p. 24 and Figure 1-5 of the text.
Summary Overview A key aspect of IMC is that it encourages marketers to consider a variety of communication tools and how they can be used to deliver messages about their company or brands. Figure 1-5 shows the various ways by which consumers come into contact with a company or brand.
Use of this slide This slide can be used to discuss that marketers must determine how valuable each contact tool is and how they can be combined to form an effective IMC program.