© 2010 South-Western, a part of Cengage Learning All rights reserved. PowerPoint Presentation by Charlie Cook The University of West Alabama CHAPTER 1 Eighth Edition Overview of Integrated Marketing Communications 1. Appreciate the practice of marketing communications and recognize the marcom tools used by practitioners. 2. Describe the philosophy and practice of integrated marketing communications (IMC). 3. Understand the five key features of IMC. 4. Recognize the activities involved in developing an integrated communications program. 5. Identify obstacles to implementing an IMC program. 6. Understand and appreciate the components contained in an integrative model of the marcom decision-making process. Chapter Objectives After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 1–2 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 1–3 Introduction to Marketing Communications Introduction to Marketing Communications (Marcom) (Marcom) Business-to-Consumer (B2C) Business-to-Business (B2B) Integrated Marcom B2C&B Integrated Marketing Communication (IMC) Programs © 2010 South-Western, a part of Cengage Learning. All rights reserved. 1–4 The Tools of Marketing Communications Table 1.1 Source: Adapted from Figure 1.1 in Kevin Lane Keller, “Mastering the Marketing Communications Mix: Micro and Macro Perspectives on Integrated Marketing Communication Programs,” Journal of Marketing Management 17 (August, 2001), 823–851. 1. 1. Media Advertising Media Advertising • • TV TV • • Radio Radio • • Magazines Magazines • • Newspapers Newspapers 2. 2. Direct Response and Direct Response and Interactive Advertising Interactive Advertising • • Direct mail Direct mail • • Telephone solicitation Telephone solicitation • • Online advertising Online advertising 3. 3. Place Advertising Place Advertising • • Billboards and bulletins Billboards and bulletins • • Posters Posters • • Transit ads Transit ads • • Cinema ads Cinema ads 4. 4. Store Signage and Point-of- Store Signage and Point-of- Purchase Advertising Purchase Advertising • • External store signs External store signs • • In-store shelf signs In-store shelf signs • • Shopping cart ads Shopping cart ads • • In-store radio and TV In-store radio and TV 5. 5. Trade- and Consumer- Trade- and Consumer- Oriented Promotions Oriented Promotions • • Trade deals and buying Trade deals and buying allowances allowances • • Display and advertising Display and advertising allowances allowances • • Trade shows Trade shows • • Cooperative advertising Cooperative advertising • • Samples Samples • • Coupons Coupons • • Premiums Premiums • • Refunds/rebates Refunds/rebates • • Contests/sweepstakes Contests/sweepstakes • • Promotional games Promotional games • • Bonus packs Bonus packs • • Price-off deals Price-off deals 6. 6. Event Marketing and Event Marketing and Sponsorships Sponsorships • • Sponsorship of sporting Sponsorship of sporting events events • • Sponsorship of arts, fairs, Sponsorship of arts, fairs, and festivals and festivals • • Sponsorship of causes Sponsorship of causes 7. 7. Marketing-Oriented Public Marketing-Oriented Public Relations and Relations and Publicity Publicity 8. 8. Personal Selling Personal Selling © 2010 South-Western, a part of Cengage Learning. All rights reserved. 1–5 The Integration of Marketing The Integration of Marketing Communications Communications • Why Not Integrated? Why Not Integrated?  Tradition of separation communication tools Tradition of separation communication tools  Influence of specialized outside suppliers Influence of specialized outside suppliers  Managerial parochialism Managerial parochialism  Fear of budget cutbacks Fear of budget cutbacks  Loss of power and authority Loss of power and authority  Resistance of outside suppliers to broadening their Resistance of outside suppliers to broadening their functions functions  Skeptics who consider IMC to be a fad Skeptics who consider IMC to be a fad © 2010 South-Western, a part of Cengage Learning. All rights reserved. 1–6 The Integration of Marketing The Integration of Marketing Communications (cont’d) Communications (cont’d) • IMC and Synergy IMC and Synergy  Using multiple communication tools in conjunction Using multiple communication tools in conjunction with one another can produce greater results with one another can produce greater results ( ( synergistic effects synergistic effects ) than tools used individually and ) than tools used individually and in an uncoordinated fashion. in an uncoordinated fashion. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 1–7 And Now a Definition of IMC And Now a Definition of IMC • Integrated Marketing Communications (IMC) Integrated Marketing Communications (IMC) • Is a communications process for planning, creation, integration, Is a communications process for planning, creation, integration, and implementation of diverse forms of marcom delivered to a and implementation of diverse forms of marcom delivered to a brand’s targeted customers and prospects brand’s targeted customers and prospects • Has as its goal influencing or affecting behavior of targeted Has as its goal influencing or affecting behavior of targeted audience audience • Considers all touch points a customer/ prospect has with the brand Considers all touch points a customer/ prospect has with the brand as potential delivery channels for messages as potential delivery channels for messages • Requires that all of a brand’s communication media deliver a Requires that all of a brand’s communication media deliver a consistent message consistent message • Has customer/prospect as its starting point for determining types of Has customer/prospect as its starting point for determining types of messages and media to inform, persuade, and induce action messages and media to inform, persuade, and induce action © 2010 South-Western, a part of Cengage Learning. All rights reserved. 1–8 Five Key Features of IMC Table 1.2 Table 1.2 1. Start with the customer or prospect. 2. Use any form of relevant contact or touch point. 3. Speak with a single voice. 4. Build relationships. 5. Affect behavior. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 1–9 Key IMC Feature # 1 Key IMC Feature # 1 • The Consumer or Business Customer Must The Consumer or Business Customer Must Represent the Starting Point for All Marketing Represent the Starting Point for All Marketing Communications Activities Communications Activities • Takeaway: Takeaway:  Consumers in Control Consumers in Control  Outside-in approach: learn the media preferences and Outside-in approach: learn the media preferences and lifestyles of customers/prospects to know the best contexts lifestyles of customers/prospects to know the best contexts to reach them with brand messages. to reach them with brand messages.  Reduced Dependence on Mass Media Reduced Dependence on Mass Media  Consumers are increasingly in control of their media choices Consumers are increasingly in control of their media choices for acquiring information about brands. for acquiring information about brands. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 1–10 Selecting the Appropriate Marcom Tools Selecting the Appropriate Marcom Tools Identify Marcom Program Goals Determine Best Way to Allocate Marketing Budget Media-Neutral Approach Courtesy of WISK®, Unilever United States, Inc. [...]... All rights reserved Setting Objectives Budgeting 1–18 Fundamental Marcom Decisions (cont’d) Top-down (TD) Top-down/Bottom-up (TD/BU) Budgeting Procedures Bottom-up/Top-down (BU/TD) © 2010 South-Western, a part of Cengage Learning All rights reserved Bottom-up (BU) 1–19 Fundamental Marcom Decisions: Commit-to-Memory Mantra All marketing communications 1 Directed to a specific target market should be:... Undertaken within © 2010 South-Western, a part of budget constraints Cengage Learning All rights reserved 1–20 Marcom Implementation Decisions Marcom Program Implementation Decisions Mixing Elements Creating Messages © 2010 South-Western, a part of Cengage Learning All rights reserved Selecting Media Establishing Momentum 1–21 Figure 1.2 A Buy-OneGet-One-Free Promotion © 2010 South-Western, a part of Cengage... these views are held in memory © 2010 South-Western, a part of Cengage Learning All rights reserved 1–16 Figure 1.1 Making Brand-Level Marcom Decisions and Achieving Desired Outcomes © 2010 South-Western, a part of Cengage Learning All rights reserved 1–17 Fundamental Marcom Decisions Fundamental Marcom Program Decisions Targeting Positioning © 2010 South-Western, a part of Cengage Learning All rights... of its ultimate influence on behavior © 2010 South-Western, a part of Cengage Learning All rights reserved 1–14 Obstacles to Implementing IMC • Integration requires tight coordination among all elements of a marcom program  Few providers of marketing communication services have the diversity of skills required to execute an IMC program  Direct-to-customer advertising is more difficult than a mass... Feature # 2 • Use Any and All Marcom Tools That Are Up to the Task • Takeaway:  360-Degree Branding  A brand’s touch points should be everywhere the target audience is  Not All Touch Points Are Equally Engaging  Surround customers/prospects with the message, but not to the point of being irritatingly present South-Western, a part of © 2010 Cengage Learning All rights reserved 1–11 Key IMC Feature... Consistently deliver the same unified message across all media channels on all occasions © 2010 South-Western, a part of Cengage Learning All rights reserved 1–12 © Richard B Levine / Newscom Key IMC Feature # 4 • Build Relationships Rather Than Engage in Flings • Takeaway:  Loyalty programs promote long- term relationships between customers and brands that lead to customer retention  Experiential marketing... Marcom Outcomes Marcom Outcomes Enhancing Brand Equity © 2010 South-Western, a part of Cengage Learning All rights reserved Affecting Behavior 1–23 Marcom Program Evaluation Marcom Program Implementation Measuring Results for Accountability Behavioral Impact Communication Outcomes Taking Corrective Action Providing Feedback © 2010 South-Western, a part of Cengage Learning All rights reserved Greater... relationships between customers and brands that lead to customer retention  Experiential marketing programs can create brand experiences that make positive and lasting impressions on customers © 2010 South-Western, a part of Cengage Learning All rights reserved 1–13 Key IMC Feature # 5 • Don’t Lose Focus of the Ultimate Objective: Affect Behavior • Takeaway:  The goal of IMC is to influence the target... execute an IMC program  Direct-to-customer advertising is more difficult than a mass media campaign  The greatest challenge is making sure that all marcom tools are consistently executed © 2010 South-Western, a part of Cengage Learning All rights reserved 1–15 Marketing Communications • Marketing Communications’ Objective  To enhance brand equity by moving customers to favorable action toward the . ads 4. 4. Store Signage and Point-of- Store Signage and Point-of- Purchase Advertising Purchase Advertising • • External store signs External store signs • • In-store shelf signs In-store shelf signs •. signs • • Shopping cart ads Shopping cart ads • • In-store radio and TV In-store radio and TV 5. 5. Trade- and Consumer- Trade- and Consumer- Oriented Promotions Oriented Promotions • • Trade. (Marcom) (Marcom) Business-to-Consumer (B2C) Business-to-Business (B2B) Integrated Marcom B2C&B Integrated Marketing Communication (IMC) Programs © 2010 South-Western, a part of Cengage