Download Chapter 1: Where Marketing Communication Began

Chapter 2
Integrated marketing
communication: how marketing
communication evolved
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2-1
Learning objectives
1. To review the concept of marketing, examining how
marketing communications has changed.
2. To introduce and define the concept of integrated
marketing communication (IMC).
3. To examine reasons for the increasing importance
of IMC.
4. To explore the concept of integration, its different
types and the necessity of integrating the whole
organisation, not just the marketing communication
tools.
5. To examine how IMC has been implemented and
the typical barriers to implementation.
Copyright  2012 McGraw-Hill Australia Pty Ltd
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2-2
Relationships
and value
Marketing
mix
Advertising
Marketing
evolution
Direct
marketing
Interactive
Sales
promotion
Tools
IMC
Implementation
Evolution
IMC as a
discipline
Integration
Definition &
direction
Importance
of IMC
PR
Sponsorship
Barriers
Types
Personal
selling
Copyright  2012 McGraw-Hill Australia Pty Ltd
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Integrating the
organisation
2-3
Air New Zealand Nothing to hide
campaign
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Air New Zealand Nothing to hide
campaign (cont.)
Campaign objectives were to :
 hold Air New Zealand’s market share
 leverage the campaign for retail promotional
sales
 convey that Air NZ airfare was all-inclusive—
unlike the competition
 build on the airline’s leadership and innovation
credentials
 lift Air NZ brand profile in offshore markets,
primarily through unpaid media.
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2-5
Relationships
and value
Marketing
mix
Advertising
Marketing
evolution
Direct
marketing
Interactive
Sales
promotion
Tools
IMC
Implementation
Evolution
IMC as a
discipline
Integration
Definition &
direction
Importance
of IMC
PR
Sponsorship
Barriers
Types
Personal
selling
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Integrating the
organisation
2-6
Marketing: where IMC begins
Traditional definition
Marketing is the process of conception, pricing,
promotion and distribution of goods, services and
ideas.
Revised definition of marketing
Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering
and exchanging offerings that have value for
customers, clients and society at large.
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Marketing: where IMC begins
(cont.)
Marketing is the activity,
set of institutions, and
processes for creating,
communicating,
delivering and
exchanging offerings that
have value for
customers, clients and
society at large.
AMA, 2007
Value co-creation
Social impact
Exchange
Relationships
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Relationships and value
Value
=
Benefits
Minus
Costs
Value refers to the customer’s perception of all the benefits
of a product or service weighed against the costs of
acquiring and consuming it.
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Relationship marketing
Relationship marketing involves creating,
maintaining and enhancing long term
relationships with consumers, as well as other
stakeholders for mutual benefit.
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2-10
Factors driving shift to relationship
marketing
Demanding
customers
Desire for
superior value
Relationship
marketing
Advances in IT
Flexible
manufacturing
processes
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2-11
Value co-creation
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2-12
Value co-creation (cont.)
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2-13
The marketing mix
Product
Price
Customer
needs
Place
(distribution)
Promotion
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Expanded marketing mix
Product
People
Price
Customer
needs
Place
Processes
Promotion
(distribution)
Physical
evidence
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2-15
IMC and the marketing mix
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2-16
Relationships
and value
Marketing
mix
Advertising
Marketing
evolution
Direct
marketing
Interactive
Sales
promotion
Tools
IMC
Implementation
Evolution
IMC as a
discipline
Integration
Definition &
direction
Importance
of IMC
PR
Sponsorship
Barriers
Types
Personal
selling
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Integrating the
organisation
2-17
Evolution of IMC
 Companies relied primarily on advertising
agencies for guidance.
 This led to the dominance of advertising
with other marketing communication
elements added on as an auxiliary or
afterthought.
 Many marketers built barriers around
promotional functions.
 Recognising the need to integrate all
elements of the communication mix,
marketers developed the concept of IMC
to present a consistent image.
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Fragmented approach to
marketing communication
Point of
purchase
Special
events
Public
relations
Publicity
Media
Advertising
Direct
marketing
Sales
promotion
Packaging
Direct
response
Interactive
marketing
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Coordinated IMC approach
Sales
promotion
Packaging
Media
advertising
Point of
purchase
Publicit
y
Interactive
marketing
Direct
marketing
Direct
response
Public
relations
Special
events
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2-20
Consumer evolution
Many market-related factors have contributed to the
rise of IMC, including:
 demographics
 lifestyles
 media usage
 purchasing habits
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2-21
Axe Wake up campaign
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2-22
Agency evolution
Many industry factors contributed to the rise of
IMC, including:
 increasing professionalism of sales promotion,
direct marketing and PR
 competition between advertising agencies and
specialist communications service providers
 clients expectations that agencies offer a broader
range of services
 marketers redefining their activities in a more
strategic and coordinated manner
 consumer’s perceptions of brands as a synthesis
of the bundle of messages received or contact points
with a brand.
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IMC defined
A concept of marketing communications
planning that recognises the added value of a
comprehensive plan that evaluates the strategic
roles of a variety of communication
disciplines—for example, general advertising,
direct response, sales promotion, and public
relations—and combines these disciplines to
provide clarity, consistency, and maximum
communications impact.
American Association of Advertising Agencies (4As)
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2-24
IMC defined
Integrated marketing communication is a
strategic business process used to plan, develop,
execute and evaluate coordinated, measurable,
persuasive brand communications programs
over time with consumers, customers, prospects,
employees, associates and other targeted
relevant external and internal audiences. The
goal is to generate both short-term financial
returns and build long-term brand and
shareholder value.
Don Schultz, North Western University
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A contemporary perspective
of IMC
Recognised as a strategic business process
IMC
Multiple relevant audiences
Demand for accountability & measurement of
outcomes
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2-26
My type of IMC
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Reasons for the growing
importance of IMC
From
Toward
Media advertising
Multiple forms of communication
Mass media
Specialised media
Manufacturer dominance
Retailer dominance
General focus
Database marketing
Low agency accountability
Greater agency accountability
Limited internet availability
Widespread internet availability
Marketer-control over
information
Consumer demand for timely
information and entertainment
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
2-28
Relationships
and value
Marketing
mix
Advertising
Marketing
evolution
Direct
marketing
Interactive
Sales
promotion
Tools
IMC
Implementation
Evolution
IMC as a
discipline
Integration
Definition &
direction
Importance
of IMC
PR
Sponsorship
Barriers
Types
Personal
selling
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Integrating the
organisation
2-29
Integration
Integration is a management process that can be
both a functional task of coordination, as well as a
strategic tool.
Message
(tactical)
Types
of
integration
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Strategic
2-30
Types of integration
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2-31
Integration continuum
Dysfunction
Synergy
????
At one end of the continuum, audiences receive mixed or incorrect
messages (dysfunction). At the other end, the combined effect of all
messages adds value (synergy).
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2-32
Message integration
Message integration is about verbal and visual
consistency.
Theme line
Logo
Message
consistency
Achieving
message
integration
Common tone
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Colour
Shared
consistency
2-33
Strategic integration
Strategic integration brings together all the elements
of the IMC mix.
Shared
budget
Strong
leadership
Coordination
Achieving
strategic
integration
Cross-functional
teams
Multiple
audiences
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Common
objectives
Corporate
mission
Multiple
communications
disciplines
2-34
IMC integration
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2-35
Relationships
and value
Marketing
mix
Advertising
Marketing
evolution
Direct
marketing
Interactive
Sales
promotion
Tools
IMC
Implementation
Evolution
IMC as a
discipline
Integration
Definition &
direction
Importance
of IMC
PR
Sponsorship
Barriers
Types
Personal
selling
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Integrating the
organisation
2-36
IMC implementation
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2-37
IMC practices
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Barriers to implementation
“Silo” structures
Lack of expertise
“Turf” battles
Organisational
barriers
Absence of
measurement tools
Multiple agencies
Lack of database
development
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2-39
Relationships
and value
Marketing
mix
Advertising
Marketing
evolution
Direct
marketing
Interactive
Sales
promotion
Tools
IMC
Implementation
Evolution
IMC as a
discipline
Integration
Definition &
direction
Importance
of IMC
PR
Sponsorship
Barriers
Types
Personal
selling
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Integrating the
organisation
2-40
IMC audience contact tools
Broadcast
media
(TV/radio)
Print media
(newspapers,
magazines)
Public
relations/
publicity
Out-of-home
media
Internet/
interactive
Direct
marketing
Target audience
Personal
selling
POP
(displays,
packaging)
Sales
promotion
Word-of-mouth
Events and
sponsorship
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Product
placements
2-41
Summary and conclusions
 Marketing activities involve combining the
four controllable elements of the marketing
mix into a comprehensive program.
 IMC involves combining the elements of the
promotional mix in an integrated manner.
 Integrating IMC involves both tactical and
strategic integration.
 IMC tools include: advertising, sales
promotion, public relations, sponsorship,
personal selling and other relevant
communications activities.
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