Transcript Slide 1

1
Chapter One
Integrated Marketing Communications
1-1
1
Ron Jon Surf Shop
-In the 1960s, surfboard technology was changing. Homemade wooden
boards were being replaced with mass-produced fiberglass models.
-A surfer name Ron Dimenna was frustrated that he could not buy one
of these new and improved rides. as a result he founded the first Ron
Jon Surf Shop In New Jersey.
- as time passed, the company grew, and additional locations were
opened.
- store were filled with amazing variety of items, from swimsuits and
surfboards to beach-themed home decorations.
1
Ron Jon Surf Shop
-A refreshments stand with picnic tables is located outside the store for
patrons to enjoy. The shop open 24 hours per day, 365 days a year Just
like the beach.
-Chrysler Corporation Joined in 40TH anniversary of the first shop by
creating a limited edition Ron Jon PT Cruiser. The car was customized
for surfers needs. Only 1000 Ron Jon Cars were made.
-The 40th anniversary celebration also featured a contest in which Ron
Jon memorabilia were solicited.
-Awarness of Ron Jon’s Presence has growth through innovative
marketing programs. Ron Jon surf shop was featured in a MasterCard
Commercials.
1
-Ron Jon expanded into Land-based sports. The company sponsored an
“end of summer” skateboard contest. These event were aimed at new,
young customers who enjoy skateboarding as much as they do surfing.
-Moreover, the company lunched several public relations campaigns
focused on community involvement. Example:
-1- a drive for patrons to donate blood.
-2- a beach cleanup drive.
-3- major donations.
- the company made its products available at airports.
-Finally, the company applied made some brand extension:
-1- surf-themed Ron Jon Cape Resort in Cape Canaveral.
-2- Ron Jon Bottled water.
-3- Ron Jon Surf School.
1
Integrated Marketing
Communications
Chapter 1 provides an overview of integrated marketing
communications, the basic communications model, and
the organization of the textbook. The chapter also
provides information on current trends in marketing
communications.
-The global marketplace consists of a complex set of competitors
battling for customers in a rapidly changing environment.
- A wide Varity of media are available to companies, ranging form simple
stand alone billboard to multilingual websites.
-Ways of reaching customers are increasing as more and more
nontraditional ways become popular.
-In the face of these sophisticated and cluttered market conditions.
Firms try to be heard. Marketing experts know that that a company’s
communications must speak with a clear voice.
-For a business to success, customers must understand the essence of
the business and the benefits of that business’s goods and services.
1
Integrated Marketing
Communications
According to the author, there are three trends that have emerged in
our turbulent new marketing communications context :
1- Accountability: advertising agencies are expected to produce
tangible results.
2- Task performed: Account Executive, Brand or Product Manager,
and creatives.
1
Account Executive
-Account Executive: is a person in an advertising agency who directs and
oversees advertising and promotional; programs for client companies.
-In the past, he worked as liaison between the people who prepared
commercials and client companies.
- nowadays, he is involved in developing overall strategic
communication plans while, at the same time, trying to make sure each
individual promotional activity achieves tangible results.
1
Brand Manager
Brand manager: is the individual who manages a specific brand or line of
products for client company.
When sales of a brand slow, the brand managers looks for ways to boost
them.
1
Creatives
Creatives: are people who develop the actual advertisements and
promotional materials.
Creatives are being asked to perform additional functions:
1- contributing ideas about strategic marketing direction of the firm,
while developing individual adverts.
2- creatives are also being held accountable for the effectiveness of
advertising campaigns.
http://www.mms.com/us/about/characters/red/
1
Most advertising and marketing agencies do more than create ads. They
help the client company develop totally integrated communications
program.
3- Alternative media.
Nowadays, companies are cutting expenditures on traditional media
commercials and moving to nontraditional media such as Facebook,
MySpace, YouTube, iphones, and text messaging systems.
1
“Younger consumers with considerable amount of purchasing power are less
likely to watch television. They are more likely to engage in technological
based interactions with friends around the world.”
Instead of trying to capture consumers attention, we should find ways to
engage with and interact with consumers.
FIGURE
1 .1
Communication Process
Sender
Encoding
Transmission
Device
Decoding
Receiver
Feedback
=Noise
Encoding: a creative takes the idea and transforms it into attention getting
advertisement designed for various media.
Copyright © 2012 Pearson Education, Inc.
publishing as Prentice Hall
1-17
1
Integrated Marketing
Communications
-Quality marketing communication occurs when customers ( the receivers)
decode or understand the message as it was intended by the sender.
-The most common form of noise affecting marketing communications is
clutter.
-Current customers are exposed to hundreds of marketing messages each day.
-Look at page 8 for examples of clutter.
-Feedback takes the form of purchases, inquires, complaints, questions, visits
to the store, blogs, and websites hits.
1
Integrated Marketing Communications
Integrated marketing communications : is the coordination and integration of
all marketing communication tools, avenues, and sources within a company
into a seamless program that maximize the impact on customers and
stakeholders at a minimal cost.
For years, the traditional view was that promotion activities included
advertising, sales promotion , and personal selling activities. This traditional
view was changed somewhat due to the accountability issue .
Now, it also includes activities such as database marketing, direct marketing,
sponsorship marketing, e-active marketing , alternative marketing , and public
relations.
A complete IMC plan incorporate every element of the marketing mix:
products, price, distribution methods, and promotions.
FIGURE
1.3
The Components of Promotion
Product
Advertising
Price
Promotion
Sales Promotions
Distribution
Personal Selling
Direct
Database
Sponsorship E-Active Social Alternative Public
Response
Marketing
Marketing Marketing Media Marketing Relations
Marketing
Copyright © 2012 Pearson Education, Inc.
publishing as Prentice Hall
1-20
1
An Integrated Marketing
Communications
Integrated marketing is based on the strategic marketing plan. This plan
coordinates efforts in all components of the marketing mix.
The purpose is to achieve harmony in the message sent to customers and
others.
The same plan integrate all promotional efforts to keep the company’s total
communications program in synchronization.
Figure 1.5 lists the steps required to complete a marketing plan.
Step one is Situational Analysis : which is the process of examining factors
from the organization’s internal and external environment.
This analysis aims to identifies marketing problems and opportunities present
in the external environment as well as internal company strengths and
weaknesses.
1
Step two is Marketing objectives.
These objectives include targets such as higher sales , an increase in market
share, a new competitive position, or desired customer actions, such as visiting
the store and making purchases.
Step three is Marketing budget.
Based on the marketing objectives, a marketing budget is prepared and
marketing strategies are finalized.
Step four is Marketing strategies. they apply to all ingredients of the marketing
mix, plus any positioning, differentiation, or branding strategies.
1
Integrated Marketing
Communications
Step five is Marketing tactics.
Marketing tactics guide the day by day activities necessary to support
marketing strategies.
The final step is stating how to evaluate performance.
FIGURE
1 . 10
Overview of IMC Text
Regulation
& Ethics
Database,
Direct Response,
& Personal Selling
Traditional
Media
Advertising
Management
Corporate Image
Brand Management
Evaluation
Sales
Promotions
Public
Relations &
Sponsorships
Alternative
Channels
E-Active
Marketing
Advertising Design
Theory & Appeals
Advertising Design
Messages & Frameworks
Buyer
Behaviors
Copyright © 2012 Pearson Education, Inc.
publishing as Prentice Hall
IMC Planning Process
1-24
1
our textbook design.
• The first section of our textbook builds foundations for IMC program.
• Chapter two describes the corporate image and brand management
elements by answering the following question:
who are we, and what message are we trying to send?
chapter four describes the promotion opportunity analysis element of a IMC
program. It includes identifying all target markets.
-The second section of this book is devoted to advertizing issues. It includes
the following: chapter five- advertising management, chapter six advertising
theories, chapter seven- advertising design.
- The third section contains information regarding both traditional and new
cutting ideas about how to reach potential customers. the discussion
encompasses traditional media channels ( TV, Radio, Magazines,
newspapers, outdoors signs, and direct mail)- chapter eight, chapter nineE- active marketing, and chapter ten- Alternative Marketing( buzz
marketing, Guerilla marketing).
1
• Database and direct response marketing programs are outlined in
chapter eleven. This chapter discuss issues such as: data collection
and analysis, permission marketing, CRM systems .
• in chapter twelve the textbooks authors discuss sales promotion
which are divided into two different types: trade promotion, and
consumer promotion.
• Public Relations programs will be discussed in chapter thirteen. The
discussion will cover topics such as, dealing with negative publicity,
and cause related marketing.
• finally, integration tools which are the top level of the IMC program.
the integration tools needed to make sure that all customers are
effectively served.
1
Refining the IMC program.
• IMC involves much more than writing a plan. It is also not limited to
the company’s marketing department. IMC is a company-wide
activity. To be successful every part of the organization’s operation
must be included.
• Four stages are involved in designing an IMC system:
• Firstly, identifying, coordinating, and managing all forms of marketing
communication.
• The objective of this stage is to bring all the of a company’s
communication elements together under one umbrella, including
advertising, promotion, direct marketing, internet and e-commerce
programs, public relations, sponsorship, and other marketing
activities.
1
Refining the IMC program.
• secondly, communication are examined form the perspective of the
customer. The marketing team analyze every contact that might
influence customers.
• It means studying every internal and external groups that might
affect perception of the company and its products. Such as,
employees, distributors, retailers, dealers, product package
designers, and others .
• Thirdly, the use of Information technology. A company should find
ways to use information technology in enhancing its IMC programs.
• With Computer technology and the abundance of information,
marketing teams now has the capacity to develop data-driven
programs to meet the needs of individual customers and allow for
the customization of marketing messages.
1 Refining the IMC program.
• Fourthly, the use of customer data information and insights to assist
corporate strategic planning.
• The information guides marketing decisions and the communication
approaches aimed at individual customer segments.
• Look at Dow Chemical, FedEx example on page 13.
1
the value of IMC plans
• Advances in technology and communications are major
new forces in integrated marketing communications,
consumers must be reached in a holistic fashion.
• There are several trends linked to the increasing
importance of integrated advertising and marketing
communication programs :
1
- 1- information technology.
technology enables instant communications among business
executives, employees , channel members, and others around the
world.
- It also create opportunities for marketing communications. Consider the
effect of UPS ( universal product code) bar code system !!!!. Previously,
companies were using test market, attitudinal research, and intention to
buy surveys to predict consumer purchasing behavior.
- Consider the effect of advanced statistical software which helps in
analyzing the data !!!!. By these software we can analyze data more
efficiently.
- Information about consumers can be correlated with items they buy,
when they buy, and where they buy.
- Companies now can determine who is buying and the best
communication channel to reach them.
1
the value of IMC plans
2- change in channel power:
- Numerous technological developments have changed the levels of
power held by members of the channel.
- Oftentimes retailers hold the most power, because they control shelf
space and purchase data.
- The size and power of mega-retailers means manufacturers and
suppliers have no choice but to follow the dictates of these “big box”
stores.
- However, the advancement of the world wide web and information
technology has caused some channel power to shift to consumers.
- Although many individual still purchase the majority of products and
services offline, individuals are shifting to more integrated
approaches to learning about products and making purchases.
1
the value of IMC plans
• 3- increases in competition:
• Information technology and communication advances have
dramatically changed the marketplace.
• The company that delivers on both quality and price get the business,
regardless of its location.
• In this competitive environment , the only way one firm can gain
sales is to take customers away from another.
• Integrating advertising and other marketing communications became
extremely important.
• Companies should create quality IMC program that reaches
customers and others in the distribution chain.
• The goals of manufacturers is to maximize its exposure to consumers
and retailers.
• retailers focuses their IMC efforts on maintaining customers loyalty.
1
the value of IMC plans
• 4-Brand Parity:
• Many of the available brands in many product categories offer nearly
identical benefits.
• consumers view quality levels of these brands as being nearly equal.
• From the consumer perspective, this means that shoppers will
purchase from group of accepted brands rather than one specific
brand.
• Other criteria, such as price, availability, and promotional deals have
a higher importance.
• In response, marketing teams tries to create messages that express
how the company’s products are clearly different.
• IMC programs are designed to gain the benefits associated with a
strong brand name.
1
the value of IMC plans
• 5- integration of information:
• Consumers have a variety of choices regarding where they obtain
information.
• If they are dissatisfied with the quantity and quality of information
they have, they can easily obtain additional information.
• So, company leaders should make sure that every contact point
project the same message.
• 6- Decline in the Effectiveness of Television Advertising:
• VCRS and DVR systems allow consumers to watch programs without
commercials.
• The use of remote controls; consumers can switch easily to another
channel during the commercials break.
• The rise in the popularity of cable TV, and satellite dishes; means
consumers have wide variety of viewing choices.
1
the value of IMC plans
- Many television advertisement are not seen.
- Look at figure 1.11
- To overcome problems shown in the figure, it is vital to create new
and innovative communication programs that hold the viewers
attention.
1
International implications
• When a company tries to integrate its marketing communication on
the global level, the mission becomes more difficult. Why?
• In the past marketers could employ two different strategies globally:
• 1- standardization.
• 2- adaptation.
• The GIMC approach (global integrated marketing communications
program) is easier to apply when a company relies on the
standardization method.
1
Market globally act locally
• McDonald’s example:
• In the UK, McDonald’s strategy is to listen more to local consumers
and then act on it. The company strives to do this around the world.
Some if its local favorites around the world include the McItaly
burger in Italy, Maharaja Mac in India, the McLobster in Canada, the
Ebi Filit-O in Japan. McDonald’s has novelty items on its menu in
Japan like the Teriyaki