An Introduction to Integrated Marketing Communications

1. An Introduction to IntegratedMarketing Communications

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

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

4. Punch Dub • Entertaining, interactive information

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

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

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

8. What is Value? • Customer’s perceptionof all the benefits of aproduct or service • Weighed against costs of acquiringand consuming it • Benefits can be… • Functional • Experiential • Psychological

9. The Marketing Mix • The Four Ps • Product • Price • Place • Promotion

10. Contemporary IMC Approach Sales promotion Direct response Packaging Massmediaadvertising Point of purchase Public relations Publicity Interactive marketing Direct marketing Special events

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

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

13. The Role of IMC in Branding Image orAssociations Performance BrandIdentity Name Packaging Logo Design Symbols

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

15. 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

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

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

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

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

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

21. Forms of Direct Marketing Direct Response Ads Catalogs Direct Mail Telemarketing Direct Selling InternetSales Shopping Channels Database Management

22. Direct Response Advertising • Encourages consumers to purchase directly from the manufacturer

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

24. Interactive Marketing • Interactive media • Internet • Kiosks • Interactive television • Cell phones • Other mobile devices

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

26. Sales Promotion Sales Force Ultimate Consumer Retailers Marketing activities that provideextra value or incentives to the…

27. Consumer vs. Trade Promotions Consumer-oriented Couponing, sampling, premiums, rebates, contests, sweepstakes, POP materials Encourages immediate purchases Promotional/merchandising allowances, price deals, sales contests, trade shows Trade-oriented Wholesalers, distributors, retailers

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

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 imageof the company among various publics

30. Public Relations • Uses publicity and other tools • Special publications • Community activities • Fund-raising events • Sponsorships • Public affairsactivities

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

32. IMC Audience Contact Tools

33. Touch Points: Control vs. Impact

34. 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 PR/ publicity Personal selling Direct marketing Internet/ interactive Advertising objectives Sales promotion objectives PR/ publicity objectives Personal selling objectives Direct marketing objectives Internet/ interactive objectives Message strategy Sales promotion strategy PR/ publicity strategy Personal selling strategy Direct marketing strategy Internet/ interactive strategy Integrate and implement marketing communications strategies Monitor, evaluate and control IMC Program

35. 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

36. Promotional Program Situational Analysis Internal External Firm’s promotional organization/capabilities Review of previous programs and results Assess firm/brand image Assess strengths and weaknesses of product or service Customer analysis Competitive analysis Environmental analysis

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

38. Budget Determination • What will the promotional program cost? • How will the money be allocated?

39. Developing the IMC Program IMC Strategies Creative Media

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