Integrated Marketing

Communications
 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
Volkswagen Strategy

Traditional Social
Mass Media
Media
Integrated
Marketing
Strategy
Sports
Point-of- Team
Sale Kits Sponsor
Punch Dub

Entertaining, interactive information

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
The Role of Marketing

Advertising & Nonprofit

Promotion Organizations
Inform customers of Solicit donations
a product or service
Offer intangible
Convince them of its social and
ability to satisfy their psychological
wants or needs satisfactions
Help develop and
sustain relationships
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

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
The Marketing Mix
The Four Ps
◦ Product
◦ Price
◦ Place
◦ Promotion
Contemporary IMC Approach

Sales Direct
Packaging
promotion response

Mass
Point of media
purchase advertising
Public
relations
Publicity

Interactive
marketing Direct
Special
marketing
events
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
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
The Role of IMC in Branding

Image or
Performance
Associations

Name Brand Packaging

Identity

Logo Design

Symbols
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
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
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
The Promotional Mix
Interactive/
Direct
Advertising Internet
Marketing
Marketing

Publicity/
Sales Personal
Public
Promotion Selling
Relations
Advertising

Paid, nonpersonal communication

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

Benefits
◦ Cost effective
◦ Large audiences
Advertising Classifications
National

Retail / Local

Primary / Selective Demand

Consumers

Business-to-Business

Professional

Trade
Organizations
Forms of Direct Marketing

Direct
Direct Mail Catalogs
Response Ads

Telemarketing Direct Selling

Database Shopping Internet

Management Channels Sales
Direct Response Advertising

◦ Encourages consumers to purchase directly from the

manufacturer
Direct Response Advertising

Major Tools Forces for Change

Direct Mail Changing Lifestyles

Television Credit Cards
Magazines Toll-free Numbers
Internet Rapid Internet Growth
Interactive Marketing
Interactive media
◦ Internet
◦ Kiosks
◦ Interactive television
◦ Cell phones
◦ Other mobile devices
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
Sales Promotion

Marketing activities that provide

extra value or incentives to the…

Sales Ultimate
Force Consumer
Retailers
Consumer vs. Trade
Promotions
Consumer- Couponing, sampling, premiums,
oriented rebates, contests, sweepstakes,
POP materials
Encourages immediate purchases

Promotional/merchandising
allowances, price deals, sales
Trade- contests, trade shows
oriented Wholesalers, distributors, retailers
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 Not always under

unfavorable company control
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
Public Relations
Uses publicity and
other tools
◦ Special publications
◦ Community activities
◦ Fund-raising events
◦ Sponsorships
◦ Public affairs
activities
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
IMC Audience Contact Tools
Touch Points: Control vs.
Impact
IMC Planning Model
Review of marketing plan
Promotional program situation analysis
Analysis of the communications process

Budget determination

Develop integrated marketing communications programs

Sales PR/ Personal Direct Internet/

Advertising
promotion publicity selling marketing interactive

Advertising Sales PR/ Personal Direct Internet/

promotion publicity selling marketing interactive
objectives objectives objectives objectives objectives objectives

Message Sales PR/ Personal Direct Internet/

promotion publicity selling marketing interactive
strategy strategy strategy strategy strategy strategy

Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program
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
Promotional Program
Situational Analysis
Internal External

Firm’s promotional Customer analysis

organization/capabilities Competitive analysis
Review of previous Environmental analysis
programs and results
Assess firm/brand
image
Assess strengths and
weaknesses of product
or service
Analysis of Communications
Process
Communication decisions
◦ Source and message
◦ Communication channels
◦ Media mix
◦ Costs
◦ Marketing goals
◦ Communication objectives
Budget Determination

◦ What will the promotional program cost?

◦ How will the money be allocated?
Developing the IMC Program
IMC Strategies

Creative Media
Monitoring, Evaluation,
Control
Basic Goals

Determine how well the program

is doing, and why
Problem correction
Continual management feedback
Input for future promotions/strategies