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An Introduction to Integrated Marketing Communications

McGraw-Hill/Irwin

Copyright 2012 McGraw-Hill Companies, Inc., All right reversed

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

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Facebook Changes Communications

Brands can now communicate with consumers through: Likes Groups Pages

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Facebook Profiles
Age Sex Location Interests Education Birthday Profession Likes

Hyper-targeted marketing
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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
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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

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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

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What is Value? Customers perception of all the benefits of a product or service

Weighed against costs of acquiring and consuming it

Benefits can be
Functional Experiential Psychological
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The Marketing Mix The Four Ps

Product Price Place Promotion

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Contemporary IMC Approach

Sales promotion Mass media advertising Publicity Direct response

Packaging

Point of purchase

Public relations

Interactive marketing

Direct marketing

Special events
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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
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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
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The Role of IMC in Branding

Image or Associations
Name

Performance

Brand Identity

Packaging

Logo
Symbols

Design

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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
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Building Brands in a Recession

Companies 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
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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

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The Promotional Mix

Advertising

Direct Marketing
Publicity/ Public Relations

Interactive/ Internet Marketing

Sales Promotion

Personal Selling

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Advertising

Paid, nonpersonal communication

About an organization, product, service, or idea With an identified sponsor No immediate feedback from audience
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Non-Personal Media Mass media

TV Radio Magazines Newspapers

Benefits
Cost effective Large audiences

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Advertising Classifications
National Retail / Local Primary / Selective Demand

Consumers

Business-to-Business Professional Trade

Organizations
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Forms of Direct Marketing

Direct Mail

Catalogs

Direct Response Ads

Telemarketing Database Management

Direct Selling Internet Sales

Shopping Channels

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Direct Response Advertising

Encourages consumers to purchase directly from the manufacturer

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Direct Response Advertising

Major Tools
Direct Mail

Forces for Change

Changing Lifestyles

Television
Magazines Internet

Credit Cards
Toll-free Numbers Rapid Internet Growth

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Interactive Marketing

Interactive media
Internet Kiosks Interactive television Cell phones Other mobile devices

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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

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Sales Promotion

Marketing activities that provide extra value or incentives to the Sales Force Retailers Ultimate Consumer

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Consumer vs. Trade Promotions

Consumeroriented

Couponing, sampling, premiums, rebates, contests, sweepstakes, POP materials Encourages immediate purchases Promotional/merchandising allowances, price deals, sales contests, trade shows Wholesalers, distributors, retailers
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Tradeoriented

Publicity

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

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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

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Public Relations Uses publicity and other tools

Special publications Community activities Fund-raising events Sponsorships Public affairs activities

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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
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IMC Audience Contact Tools

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Touch Points: Control vs. Impact

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IMC Planning Model

Review of marketing plan Promotional program situation analysis Analysis of the communications process Budget determination Develop integrated marketing communications programs Advertising Sales promotion Sales promotion objectives Sales promotion strategy PR/ publicity PR/ publicity objectives PR/ publicity strategy Personal selling Personal selling objectives Personal selling strategy Direct marketing Direct marketing objectives Direct marketing strategy Internet/ interactive Internet/ interactive objectives Internet/ interactive strategy

Advertising objectives
Message strategy

Integrate and implement marketing communications strategies Monitor, evaluate and control IMC Program
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Elements of a Marketing Plan

Detailed situation analysis

Specific marketing objectives

Marketing strategy and program

Program for implementing the strategy

Process for monitoring & evaluating performance

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Promotional Program Situational Analysis

Internal Firms promotional organization/capabilities Review of previous programs and results Assess firm/brand image Assess strengths and weaknesses of product or service
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External Customer analysis Competitive analysis Environmental analysis

Analysis of Communications Process Communication decisions

Source and message Communication channels Media mix Costs Marketing goals Communication objectives

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Budget Determination

What will the promotional program cost? How will the money be allocated?
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Developing the IMC Program

IMC Strategies

Creative

Media

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Monitoring, Evaluation, Control

Basic Goals Determine how well the program is doing, and why Problem correction Continual management feedback

Input for future promotions/strategies

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