1 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 1-2 Volkswagen Strategy Traditional Mass Media Social Media Integrated Marketing Strategy Point-ofSale Kits Sports Team Sponsor 1-3 Punch Dub • Entertaining, interactive information 1-4 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 1-5 The Role of Marketing Advertising & Promotion Inform customers of a product or service Convince them of its ability to satisfy their wants or needs Nonprofit Organizations Solicit donations Offer intangible social and psychological satisfactions Help develop and sustain relationships 1-6 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 1-7 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 1-8 The Marketing Mix • The Four Ps • Product • Price • Place • Promotion 1-9 Contemporary IMC Approach Packaging Sales promotion Mass media advertising Point of purchase Publicity Interactive marketing Direct marketing Direct response Public relations Special events 1-10 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 1-11 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 1-12 The Role of IMC in Branding Image or Associations Name Performance Brand Identity Logo Packaging Design Symbols 1-13 The Promotional Mix Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/ Public Relations Personal Selling 1-14 Advertising • Paid, nonpersonal communication • About an organization, product, service, or idea • With an identified sponsor • No immediate feedback from audience 1-15 Non-Personal Media • Mass media • TV • Radio • Magazines • Newspapers • Benefits • Cost effective • Large audiences 1-16 Advertising Classifications National Retail / Local Consumers Primary / Selective Demand Business-to-Business Professional Trade Organizations 1-17 Forms of Direct Marketing Direct Mail Catalogs Telemarketing Database Management Direct Response Ads Direct Selling Shopping Channels Internet Sales 1-18 Direct Response Advertising • Encourages consumers to purchase directly from the manufacturer 1-19 Direct Response Advertising Major Tools Forces for Change Direct Mail Changing Lifestyles Television Credit Cards Magazines Toll-free Numbers Internet Rapid Internet Growth 1-20 Interactive Marketing • Interactive media • Internet • Kiosks • Interactive television • Cell phones • Other mobile devices 1-21 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 1-22 Sales Promotion Marketing activities that provide extra value or incentives to the… Sales Force Ultimate Consumer Retailers 1-23 Consumer vs. Trade Promotions Consumeroriented Couponing, sampling, premiums, rebates, contests, sweepstakes, POP materials Encourages immediate purchases Tradeoriented Promotional/merchandising allowances, price deals, sales contests, trade shows Wholesalers, distributors, retailers 1-24 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 1-25 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 1-26 Public Relations • Uses publicity and other tools • Special publications • Community activities • Fund-raising events • Sponsorships • Public affairs activities 1-27 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 1-28 IMC Audience Contact Tools 1-29