Integrated Marketing Communications Chapter 1 1-1 Chapter Overview • Highly competitive global marketplace. • Greater variety of media available • Emerging trends. • Accountability. • Change in roles of account executives, creatives and brand managers. • Development of alternative media. 1-2 Integrated Marketing Communications Coordination and integration of • all marketing communication tools • All parts of the company • Maximizes impact at a minimal cost. Includes all • business-to-business • Channel • customer, • External and internal communications. Communication Process • Sender • Encoding • Transmission device • Decoding • Receiver Noise Clutter Jargon 1-4 A Model of the Communication Process Noise Noise Medium Outcome Sender Receiver Encoding Decoding Message Feedback Feedback Feedback: Info about the outcome returns to the sender, with any additional noise. The message can suffer distortion from jargon, timing, language, beliefs, competition, etc. Communication Mix Product Price Promotion Place Advertising Sales Promotions Personal Selling Public Relations Database Marketing Direct Response Marketing Sponsorship Marketing E-Active Marketing Social Media Alternative Marketing IMC Components • The IMC Foundation • Advertising tools • IMC Media tools • Promotional tools • Integration tools 1-7 Market Dynamics That Impact IMC • Information technology • • • • • Multiple sources, faster Changes in channel power Increase in competition Brand parity Decline in TV advertising Globalization 1-8 Trends That Impact IMC • Accountability, measurable results • Use of alternative media New roles, responsibilities • Influence of social media Online Retail Spending 2014 SALES ~249B Online Retail Spending (Billions) 180.0 156.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 2001 2005 2006 2007 2008 2009 Source: Adapted from Cate T. Corcoran, “Delivering the Goods: E-Tailing Sales to Rise But Gains Seen Slowing,” Women’s Wear Daily, 197, no. 94 (May 5, 2009), p. 1; “Online Retail Spending, 2001-2007, and Projections, 2008,” The 2009 Statistical Abstract: Online Retail Sales (www.census.,gov/compendia/statab/cats/wholesale_retail_trade/online_retail_sales, accessed November 23, 2009). International Implications • Goal – to coordinate marketing efforts • Greater challenge due to national and cultural differences • Standardization versus Adaptation • “Think globally, but act locally” Overview of IMC Text Regulation & Ethics Database, Direct Response, & Personal Selling Traditional Media Advertising Management Corporate Image Brand Management Evaluation Sales Promotions E-Active Marketing Advertising Design Theory & Appeals Buyer Behaviors Public Relations & Sponsorships Alternative Channels Advertising Design Messages & Frameworks IMC Planning Process Integrated Marketing Communications Plan – Structural Outline Outline #2-4 occur at the corporate level and apply to all markets. Some included items: •SWOT •competitive analysis •segmentation analysis and strategy •target market selection •Selection of channels to reach target markets •positioning strategy (corporate and segment) •Corporate Image •Brand Development and positioning •Promotion Mix Strategy (corporate & target) •Total budget , •And so on . . . . 1. Executive Summary 2. Promotion Opportunity Analysis 3. Corporate-Level Strategies 4. IMC Management IMC Objective: Target Market 1 The entire plan is summarized into a brief and concise document that presents the major elements of the plan to executive management. IMC Objective: Target Market 2 •Budget •IMC Methodologies •Advertising •Consumer Promotions •Trade Promotions •Personal Selling •Sponsorships •Database Programs •Media Plan •Evaluation Methodology IMC Objective: Target Market 3 Mkt 4, 5, etc. Each target market receives an analysis that includes these items. This is repeated for every target market.