An Introduction to
Integrated Marketing
Communications
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Growth of Advertising and Promotion
Expenditure in Billions of Dollars
U.S. Advertising
U.S. Sales
Promotion
2002
1980
Advertising
Outside U.S.
$0
$50
$100
$150
$200
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
$250
$300
IMC–Audience Contact Points
Point of
Purchase
Internet/
Interactive
Media
Direct Mail
Print Media
Publicity
Public
Relations
Marketing
Communications
Audience
Broadcast
Media
Outdoor
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Packaging
Direct
Response
Sales
Promotion
Events
IMC Principles Extend Worldwide
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Traditional Approach to Marketing
Communications
Point of
Purchase
Special
Events
Publicity
Media
Advertising
Public
Relations
Direct
Marketing
Sales
Promotion
Packaging
Direct
Response
Interactive
Marketing
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Contemporary IMC Approach
Packaging
Sales
Promotion
Point of
Purchase
Publicity
Interactive
Marketing
Media
Advertising
Direct
Marketing
Direct
Response
Public
Relations
Special
Events
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The US Army Uses TV Advertising as
Part of Its IMC Program
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Marketing Revolution and Shifting Tides
From
Toward
Media Advertising
Multiple Forms of Communication
Mass Media
Specialized Media
Manufacturer Dominance
Retailer Dominance
General Focus
Data Based Marketing
Low Agency Accountability
Greater Agency Accountability
Traditional Compensation
Performance Based Compensation
Limited Internet Availability
Widespread Internet Availability
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Dell Focuses on Building a Relationship
With Customers
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IMC and Branding
Brand Identity is a
combination of factors:
Name, logo, symbols,
design, packaging,
product or service
performance, and image
or associations in the
consumer’s mind.
IMC plays a major role
in the process of
developing and
sustaining brand
identity and equity.
2003 Brand Value
(Billions of Dollars)
1. Coca-Cola
2. Microsoft
3. IBM
4. GE
5. Intel
6. Nokia
7. Disney
8. McDonald’s
9. Marlboro
10. Mercedes
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
$70.5
$65.1
$51.8
$42.3
$31.1
$29.4
$28.0
$24.7
$22.2
$21.4
Intel’s Advertising Helps Build Brand Equity
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Coordinated Marketing Mix
Elements Build Image
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Basic Elements of the Promotional Mix
Advertising
Direct Marketing
Interactive/
Internet Marketing
Sales Promotion
Publicity/Public
Relations
Personal Selling
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Classifications of Advertising
National Advertising
Retail/Local Advertising
Primary vs. Selective
Demand Advertising
Consumers
Business-to-Business Advertising
Professional Advertising
Trade Advertising
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Organizations
Great Advertising Can Strike a Responsive
Chord with Consumers
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
An Example of “B-to-B” Advertising
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Direct Marketing is Part of IMC
Direct
Mail
Direct
Response
Advertising
Internet
Sales
Direct
Marketing
Shopping
Channels
Telemarketing
Cataloging
Catalogs
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Bose Uses Direct Response Advertising
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Using the Internet as an IMC Tool
The
Internet
Educates or
Informs
Customers
Obtains
Customer
Database
Information
A Persuasive
Advertising
Medium
Communicates
and Interacts
With Buyers
A Sales Tool
or an Actual
Sales Vehicle
Provides
Customer
Service and
Support
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Builds and
Maintains
Customer
Relationships
American Airlines Encourages
Customers to Do It All Online
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Sales Promotion Tools
Coupons
Trade
Allowances
Samples
Premiums
Contests/Sweepstakes
POP Displays
Training
Programs
Trade
Shows
Coop
Advertising
Refunds/Rebates
Bonus Packs
Loyalty Programs
Events
• Consumeroriented
• [For end-users]
• Tradeoriented
• [For resellers]
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Various Uses of Sales Promotion
Introduce New
Products
Combat
Competition
Enhance
Personal Selling
Get Existing
Customers to
Buy More
Sales
Promotion
Tie In
Advertising &
Personal Selling
Attract New
Customers
Maintain Sales In
Off Season
Increase Retail
Inventories
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising Versus Publicity
Factor
Advertising
Publicity
Control
Great
Little
Credibility
Lower
Higher
Reach
Measurable
Undetermined
Frequency
Schedulable
Uncontrollable
Cost
High/Specific
Low/Unspecified
Flexibility
High
Low
Timing
Specifiable
Tentative
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Publicity Vehicles
Feature
Articles
News
Releases
Interviews
Publicity
Vehicles
Press
Conferences
Special
Events
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Public Relations Tools
Publicity
Vehicles
Community
Activities
Special
Publications
Corporate
Advertising
Public Affairs
Activities
Cause-related
Marketing
Special Event
Sponsorship
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
DuPont Uses Advertising to Enhance
Its Corporate Image
+
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Integrated Marketing Communications 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
Integration & Implementation of Marketing Communications Strategies
Monitor, Evaluate & Control Promotional Program
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Marketing Plan
1. A detailed situation analysis
2. Specific marketing objectives
3. A marketing strategy and program
4. A program for implementing the strategy
5. A process for monitoring and evaluating performance
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin