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An Introduction to
Integrated Marketing
Communications
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Using IMC To Market Las Vegas
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
1
Creating a Unique Brand Identity for Las Vegas
*Click outside of the video screen to advance to the next slide
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Taking The “Only Vegas” Campaign in a
New Direction
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
2
The Growth of Advertising and Promotion
Expenditure in Billions of Dollars
Advertising
Outside U.S.
2004
U.S. Sales
Promotion
1980
U.S. Advertising
$0
$50
$100
$150
$200
$250
$300
$350
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
What is Marketing?
Marketing
Marketing is
is an
an
organizational
organizational function
function
and
a
set
of
processes
and a set of processes for
for
creating,
creating, communicating
communicating
and
and delivering
delivering value
value to
to
customers
customers and
and for
for
managing
managing customer
customer
relationships
relationships in
in ways
ways that
that
benefit
benefit the
the organization.
organization.
Value
Value
Relationship
Relationship marketing
marketing
Mass
Mass customization
customization
Customer
Customer relationship
relationship
management
management (CRM)
(CRM)
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
3
Coordinated Marketing Mix Elements
Build Image
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Traditional Approach to Marketing
Communications
Point of
purchase
Special
events
Publicity
Media
Advertising
Public
relations
Direct
marketing
Sales
promotion
Packaging
Direct
response
Interactive
marketing
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
4
Contemporary IMC Approach
Packaging
Sales
promotion
Point of
purchase
Publicity
Interactive
marketing
Media
Advertising
Direct
response
Public
relations
Direct
marketing
Special
events
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Defining IMC
IMC
IMC isis aa strategic
strategic business
business
process
process used
used to
to plan,
plan, develop,
develop,
execute
execute and
and evaluate
evaluate coordinated,
coordinated,
measurable,
persuasive
measurable, persuasive brand
brand
communication
communication programs
programs with
with
consumers,
consumers, customers,
customers, prospects
prospects
employees
employees and
and other
other relevant
relevant
external
and
internal
external and internal audiences.
audiences.
The
The goal
goal of
of IMC
IMC isis to
to
generate
generate short-term
short-term
financial
financial returns
returns and
and build
build
long-term
long-term brand
brand value.
value.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
5
A Contemporary Perspective of IMC
Recognized
Recognized as
as aa business
business process
process
IMC
IMC
Importance
of
audience
Multiple
audiences
Importance
of relevant
relevant
audience
Multiple relevant
relevant
audiences
Demand
for
Demand
for accountability
accountability and
and
Demand
Demand for
for accountability
accountability
Measurement
Measurement of
of Outcomes
Outcomes
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Test Your Knowledge
Why are marketers decreasing their usage of
advertising in mass media to reach their target market
and increasing their use of integrated marketing
communications?
A)
The mass market has become
fragmented.
B)
The explosion of new technologies has
given consumers greater control over the
communication process.
C)
The use of the Internet and electronic
commerce is growing.
D)
New global markets are emerging.
E)
All of the above explain the increasing
reliance on integrated marketing
communications.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
6
Reasons for the Growing Importance of
IMC
From
Toward
Media
Media advertising
advertising
Multiple
Multiple forms
forms of
of communication
communication
Mass
Mass media
media
Specialized
Specialized media
media
Manufacturer
Manufacturer dominance
dominance
Retailer
Retailer dominance
dominance
General
General focus
focus
Data-based
Data-based marketing
marketing
Low
Low agency
agency accountability
accountability
Greater
Greater agency
agency accountability
accountability
Traditional
Traditional compensation
compensation
Performance-based
Performance-based compensation
compensation
Limited
Limited Internet
Internet availability
availability
Widespread
Widespread Internet
Internet availability
availability
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
IMC and Branding
Brand
Brand Identity
Identity is
is aa
combination
combination of
of factors:
factors:
Name,
Name, logo,
logo, symbols,
symbols,
design,
design, packaging,
packaging,
product
product or
or service
service
performance,
performance, and
and image
image
or
associations
in
the
or associations in the
consumer’s
consumer’s mind.
mind.
IMC
IMC plays
plays aa major
major role
role
in
the
process
of
in the process of
developing
developing and
and
sustaining
brand
sustaining brand
identity
identity and
and equity.
equity.
2005 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
$67.52
$59.94
$53.38
$46.99
$35.59
$26.45
$26.44
$26.01
$24.84
$21.19
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
7
Basic Elements of the Promotional Mix
Advertising
Advertising
Direct
Direct Marketing
Marketing
Interactive/
Interactive/
Internet
Internet Marketing
Marketing
Sales
Sales Promotion
Promotion
Publicity/Public
Publicity/Public
Relations
Relations
Personal
Personal Selling
Selling
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Classifications of Advertising
National
National Advertising
Advertising
Retail/Local
Retail/Local Advertising
Advertising
Primary
Primary vs.
vs. Selective
Selective
Demand
Demand Advertising
Advertising
Consumers
Business-to-Business
Business-to-Business Advertising
Advertising
Professional
Professional Advertising
Advertising
Trade
Trade Advertising
Advertising
Organizations
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
8
Direct Marketing is Part of IMC
Direct
Direct
Mail
Mail
Direct
Direct
Response
Response
Advertising
Advertising
Internet
Internet
Sales
Sales
Direct
Direct
Marketing
Marketing
Shopping
Shopping
Channels
Channels
Telemarketing
Telemarketing
Catalogs
Catalogs
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Bose Uses Direct Response Advertising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9
Sharp Creatively Integrated Advertising
and the Internet
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
This Sharp Aquos Commercial Was Designed
to Drive Viewers to the Web Site
*Click outside of the video screen to advance to the next slide
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
10
Using the Internet as an IMC Tool
The
The
Internet
Internet
Educates
Educates or
or
informs
informs
customers
customers
Obtains
Obtains
customer
customer
database
database
information
information
AA persuasive
persuasive
advertising
advertising
medium
medium
Communicates
Communicates
and
and interacts
interacts
with
with buyers
buyers
AA sales
sales tool
tool
or
or an
an actual
actual
sales
sales vehicle
vehicle
Provides
Provides
customer
customer
service
service and
and
support
support
Builds
Builds and
and
maintains
maintains
customer
customer
relationships
relationships
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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]
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
11
Various Uses of Sales Promotion
Introduce
Introduce new
new
products
products
Combat
Combat
competition
competition
Enhance
Enhance
personal
personal selling
selling
Get
Get existing
existing
customers
customers to
to
buy
buy more
more
Sales
Sales
Promotion
Promotion
Tie
Tie in
in advertising
advertising
&
& personal
personal
selling
selling
Attract
Attract new
new
customers
customers
Maintain
Maintain sales
sales in
in
off
off season
season
Increase
Increase retail
retail
inventories
inventories
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Test Your Knowledge
_____ is nonpersonal communication neither directly
paid for nor run under identified sponsorship.
A)
Advertising
B)
Sales promotion
C)
Publicity
D)
Public relations
E)
Personal selling
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
12
Advertising Versus Publicity
Factor
Factor
Advertising
Advertising
Publicity
Publicity
Control
Control
Great
Great
Little
Little
Credibility
Credibility
Lower
Lower
Higher
Higher
Reach
Reach
Measurable
Measurable
Undetermined
Undetermined
Frequency
Frequency
Schedulable
Schedulable
Uncontrollable
Uncontrollable
Cost
Cost
High/Specific
High/Specific
Low/Unspecified
Low/Unspecified
Flexibility
Flexibility
High
High
Low
Low
Timing
Timing
Specifiable
Specifiable
Tentative
Tentative
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Publicity Vehicles
Feature
Feature
Articles
Articles
News
News
Releases
Releases
Interviews
Interviews
Publicity
Publicity
Vehicles
Vehicles
Press
Press
Conferences
Conferences
Special
Special
Events
Events
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
13
Public Relations Tools
Publicity
Vehicles
Community
Activities
Special
Publications
Corporate
Advertising
Public Affairs
Activities
Cause-related
Marketing
Special Event
Sponsorship
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
IMC Audience Contact Tools
Broadcast
Broadcast
media
media
(TV/radio)
(TV/radio)
Print
Print media
media
(newspapers,
(newspapers,
magazines
magazines))
Public
Public
Relations/
Relations/
publicity
publicity
Out-of-home
Out-of-home
media
media
Internet/
Internet/
interactive
interactive
Direct
Direct
marketing
marketing
Target
Target Audience
Audience
Personal
Personal
selling
selling
Point-ofPoint-ofpurchase
purchase
(displays,
(displays,
packaging)
packaging)
Sales
Sales
Promotion
Promotion
Word-ofWord-ofmouth
mouth
Events
Events and
and
sponsorship
sponsorship
Product
Product
placements
placements
(TV
(TV and
and movies)
movies)
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
14
Test Your Knowledge
The _____ is a written document that describes the
overall marketing strategy and programs developed
for an organization, product line, or brand.
A)
promotional plan
B)
marketing plan
C)
communications plan
D)
marketing audit
E)
situation analysis
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Marketing Plan
1.
1. A
A detailed
detailed situation
situation analysis
analysis
2.
2. Specific
Specific marketing
marketing objectives
objectives
3.
3. A
A marketing
marketing strategy
strategy and
and program
program
4.
4. A
A program
program for
for implementing
implementing the
the strategy
strategy
5.
5. A
A process
process for
for monitoring
monitoring and
and evaluating
evaluating performance
performance
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
15
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
Integrate and implement marketing communications strategies
Monitor, evaluate and control IMC Program
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
16