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An Introduction to Integrated
Marketing Communications
McGraw-Hill/Irwin
Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed
Gatorade Case History
• In 1965 football coach of Gators met
with medical researchers
• Players’ electrolytes and carbs not being
replenished
• Gatorade created to address these needs
• Official sports drink of NFL, MLB, NHL,
NBA
• High profile endorsers Michael Jordan /
Serena Williams
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Gatorade Case History - continued
• In 2008, economy crashed
• Gatorade sales declined due to new
products launched
• Energy bars / vitamin waters / protein powders
• Consumers had more sports nutrition
choices
• Gatorade losing relevance among target
audience
1-3
Gatorade Case History - continued
• In 2010, launched
G Series product line
(drinks, chews, shakes, powders
and bars)
• Major social media push
(along with sponsorships,
advertising and IMC)
• Sales grew 9% in 2012
and retains leadership
position
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Gatorade IMC Strategy
Traditional
Mass
Media
Social
Media
Integrated
Marketing
Strategy
Point-ofSale
Sponsorships
1-5
Change in Media Landscape
• Past: only mass media
• Today: Fragmented and Targeted
• Average HH has over 130 TV channels;
DVD’s /Video-On-Demand
• Internet ads/social media/mobile marketing
• Consumers in control of their content
• Need for well planned/executed
Integrated Marketing Communications
1-6
What is Marketing?
• A process of
• planning and executing
• the conception, pricing, promotion and
distribution
• of ideas, goods and services
• to create exchanges that satisfy
individual / organizational objectives
1-7
Other Marketing Concepts
• Marketing Exchange
• Two or more parties with something of
value
• Desire to give up that something
• Way to communicate with each other
• Not all exchanges are money: nonprofit
donations for goodwill
• Relationship Marketing
• More than one time sale
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What is Value?
• Benefits of a
product vs. costs of
acquiring it
• Benefits can be
functional/experiential/
psychological
• Costs are $ paid/learning
how to use it/ maintaining it
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The Marketing Mix
• The Four Ps
• Product
• Price
• Place
• Promotion
• How to combine elements for an
effective marketing program
• Good advertising doesn’t replace
poor product / priced improperly /
can’t find it in stores
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Integrated Marketing Communications
• Concept of planning
• Recognizes added value of a
comprehensive plan
• That combines a variety of
communication disciplines
• Advertising/sales promotion/publicity
• To provide clarity, consistency and
maximum communications impact
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Contemporary IMC Approach
Packaging
Sales
promotion
Mass
media
advertising
Point of
purchase
Publicity
Digital –
Internet
Marketing
Direct
marketing
Direct
response
Public
relations
Special
events
• By
coordinating
marketing
communication
efforts:
• Avoid
duplication
• Increase
synergy
• More efficient
and effective
programs
1-12
Test Your Knowledge
Why are marketers decreasing the use of mass media
advertising and increasing the use of integrated
marketing communications?
A) The mass market has become fragmented
B) New technologies gave consumers greater
control over the communication process
C) Use of the Internet and electronic commerce
is growing
D) Explosive growth in social networking
E) All of the above
1-13
What is Brand Identity?
Image or
Associations
Name
Performance
Brand
Identity
Logo
Packaging
Design
Symbols
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Class Exercise
In the next ONE MINUTE:
-Write down as many brands, in any
category, that you can think of
GO!
1-15
World’s Top 10 Brands
• Apple
• Google
• Coca-Cola
• IBM
• Microsoft
• General Electric
• McDonald's
• Samsung
• Intel
• Toyota
Source: Interbrand’s
Best Global Brands 2013
1-16
What is Promotion?
• The coordination
• of all seller initiated efforts
• to set up channels of information and
persuasion
• in order to sell goods or services
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The Promotional Mix
Advertising
Direct
Marketing
Digital/
Internet
Marketing
Sales
Promotion
Publicity/
Public
Relations
Personal
Selling
Basic tools used to accomplish objectives
1-18
Advertising
• Paid, non-personal communication
• About an organization/product/service
• With an identified sponsor
• No immediate feedback from audience
• EXCEPTION: PSA (Public Service
Announcement) – space donated by
media
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Advertising – continued
• Mass media
• TV
• Radio
• Magazines
• Newspapers
• Benefits of Advertising
• Cost effective
• Reaches large audiences
Advertising is best way to build brand image
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Advertising to Consumer Markets
National advertising
• Done on a nationwide basis or in most regions of the country
Retail/local advertising - Encourage consumers to:
• Shop at a specific store
• Use a local service
• Patronize a particular establishment
Primary- versus selective-demand advertising
• Primary-demand - Stimulates demand for the general
product class or entire industry
• Selective-demand - Creates demand for a specific company’s
brands
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Advertising to Business / Professional Markets
Business-to-business advertising
• Targets individuals who buy or influence the
purchase of industrial goods or services for their
companies
Professional advertising
• Targets professionals, encouraging them to use a
company’s product in their business operations
Trade advertising
• Targets marketing channel members, encouraging
them to stock, promote, and resell the
manufacturer’s branded products to their
customers
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Leading U.S. Advertisers
• Proctor & Gamble
• Walt Disney
• General Motors
• Walmart
• Comcast
• Time Warner
• AT&T
• Target
• Verizon
• Johnson & Johnson
• Ford
• Pfizer
• L’Oreal
• Bank of America
• JPMorgan / Chase
• Macy’s
• American Express
• Berkshire Hathaway
• Toyota
• Anheuser-Busch
• Fiat / Chrysler
• Sears
1-23
Direct Marketing
Organizations communicate directly with
customers to generate response/sale
Direct Mail
Catalogs
Telemarketing
Database
Management
Direct
Response Ads
Direct Selling
Shopping
Channels
Internet
Sales
1-24
Direct Response Advertising
• Encourages
consumers to
purchase
directly from the
manufacturer
1-25
Direct Response Advertising - continued
Media Used
Reason for Growth
Direct Mail
Changing Lifestyles
Television
Credit Cards
Magazines
Toll-free Numbers
Internet
Rapid Internet Growth
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Digital/Internet Marketing
Interactive media
• Allow users to participate in and modify the content
of the information they receive in real time
Social media
• Online means of communication and interactions
used to create, share, and exchange content
Mobile marketing
• Messages delivered are specific to a consumer’s
location or consumption situation
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Advantages of Digital/Internet Marketing
Interactive nature
Capability to precisely measure the
effects of advertising and other forms
of promotion
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Sales Promotion
Marketing activities that provide
extra value or incentives to the…
Sales
Force
Ultimate
Consumer
Retailers
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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
1-30
Sales Promotion
• Increased emphasis due to:
• Declining brand loyalty
• Increased consumer sensitivity to
promotional deals
• Retailers’ demand for more trade
promotion support from companies
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Publicity
A news story,
editorial, or
announcement to
a mass audience
Advantages:
High credibility and
low cost
Non-personal/not directly paid for
by identified sponsor
Disadvantages:
Tools:
Is sometimes
unfavorable;
Not always under
company control
News release;
feature articles;
press conference
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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
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Public Relations
• Tools:
• Special publications
• Community activities
• Fund-raising events
• Sponsorships
• Public affairs
activities
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Personal Selling
• Person-to-person communication
• Face to face or telephone sales
• Persuade target to make a purchase
• Provides immediate feedback to tailor
message
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IMC Audience Contact Tools
Determine which tools most effective in reaching target
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Touch Points: Control vs. Impact
Every opportunity consumer
sees/hears/experiences
product
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IMC 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
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Elements of a Marketing Plan
Detailed situation analysis
Specific marketing objectives
Marketing strategy and program
Program for implementing the strategy
Process for monitoring & evaluating performance
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Promotional Program Situational Analysis
Internal
External
Firm’s promotional
organization/capabilities
Customer analysis
Review of previous
programs and results
Environmental analysis
Competitive analysis
Assess firm/brand
image
Assess strengths and
weaknesses of product
or service
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Types of Objectives
• Marketing Objectives
• What is to be accomplished by marketing
programs
• Stated in terms of sales, market share,
profitability
• Communication Objectives
• What is the nature of message to be
communicated
• Creating awareness/image/favorable
attitude/knowledge about product and it’s
benefits
1-41
Budget Determination
• What will the promotional program cost?
• How will the money be allocated?
1-42
Developing the IMC Program
IMC Strategies
Creative
Basic
appeal/message
Media
Which
communication channel to
use
1-43
Monitoring, Evaluation, Control
Basic Goals
Determine how well the program
is doing, and why
Problem correction
Continual management feedback
Input for future promotions/strategies
1-44