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Comm 340
Chapter ONE
An Introduction To
Integrated Marketing Communication
The process of planning and executing
the conception, pricing, promotions and distribution
of ideas, goods and services
to create exchanges that satisfy
individual and organizational objectives.
Today the term…
to create exchanges that satisfy means …
(ideally)
Relationship Marketing
Creating, maintaining and enhancing
long term relationships with individual customers
for mutual benefit.
Superior
Customer Value
More cost effective to retain customers than to acquire new ones
Life Time
Value
Reduce customer loss by 5%, increase future profit by 30 to 90%
The Marketing Mix
The 4 ‘P’s:
Product / Service
Price
Place
Promotion
Promotion
IS
Marketing Communication
The coordination of all seller initiated efforts to set up
channels of information and persuasion
to sell goods and services
or
to promote an idea.
CHANNELS OF
INFORMATION & PERSUASION
Media Advertising
Direct Marketing
Interactive / Internet Marketing
Sales Promotion
Personal Selling
Public Relations
Integrated Marketing Communication
(IMC)
Coordinating the various promotional elements
and other marketing activities
(price, place and product)
that communicate with a firm’s customers.
Why Bother?
Consumer’s Perceptions
of a company & its products are a synthesis of the sum, total of the messages that they
receive from:
Consumers Get Messages
From Three Levels
Corporate
Mission, Corporate culture
All messages should be delivered and received on a platform
of executional and strategic
consistency.
Consumers are Changing
Demographics
AMedia Advertising More Fragmented
•Shift
in $’s to consumer & trade promos.
BLess Mass Media (Nat’l TV & Print) For Image Communication
•Now
more targeted event marketing, direct mail, internet, sponsorships.
Major Areas of Change In Marketing continued..
CShift in Marketplace Power
•From
manufacturers to retailers.
CRapid Growth and Development of Data Base Marketing
•Demographic,
geographic, psychographic profiles, purchase patterns, preferences, credit
rating, etc.
Major Areas of Change In Marketing
continued…
EDemand for Greater Accountability From Ad Agencies
•Performance
related (sales, market share).
IMC
Gives more efficient and effective marketing communication programs though
Synergy
&
Avoiding Duplication
The Promotional Mix:
The Six Tools of IMC
oADVERTISING
oDIRECT MARKETING
oINTERACTIVE / INTERNET MARKETING
oSALES PROMOTION
oPUBLICITY / PUBLIC RELATIONS
oPERSONAL SELLING
A successful IMC program
requires the right
combination &
application
of the right
promotional tools and techniques.
Tools Of IMC:
1- Advertising
130 companies spend + 100 million per year.
Ex:
GM - $ 3 billion
Cost-Effective
Ex:
Primetime 10 million households @ $14.00/1000
Use: Image, can promote brand differentiation.
Tools Of IMC:
2- Direct Marketing
Direct Mail / Catalogs
Direct Response Advertising – Purchase direct from manufacturer.
Popular - avoid in-store shopping, toll-free calls, credit card & internet.
Tools Of IMC:
3- Internet / Interactive Marketing
Interactive Media
The internet can execute all elements of the promotional mix (advertising, sales promotion,
direct marketing, personal selling, public relations).
Tools Of IMC:
4- Sales Promotion
Activities that provide extra value / incentive to sales force / channel or consumers to
stimulate sales.
Consumer and / or trade focused.
$240 billion in 1999.
Tools Of IMC:
5- Public Relations / Publicity
Publicity not paid for, communication - news story, editorial, announcement Ex: movie
review.
Public Relations - management function which identifies public attitudes and executed
programs to ensure public understanding and acceptance.
Exhibit 1-12 : Page 24
Advertising may also be used to enhance company’s corporate image.
Promotional Management
Coordinating
the promotional mix elements
to develop a controlled, integrated program
of
effective marketing communications.
THE PROMOTIONAL PLANNING PROCESS
A Six Step Process
Step # 1
Review the Marketing Plan
&
Its Objectives
Keep on the same page.
ensure promotional continuity
Step # 2
Promotional Program
Situational Analysis
Areas covered in the situational analysis
Step # 3
Analysis of
The Communications Process
Set goals & objectives
(awareness, attitudes, intentions).
Determine IMC tools to use to reach G&O’s.
Step # 4
Budget Determination
Cost vs. availability
Step # 5
Developing the IMC Program

Develop the creative strategy (basic appeal / message to target audience).

Role, importance, interplay of each promotional mix element in the process is determined.

Develop media strategy - which communication channels to use.

Develop the actual creative / copy.

Select execution details.

Repeat a similar process for each element to be used.
Step # 6
Monitoring Evaluation & Control
Sooner is better.
Now to put it all together!