Transcript Direct Marketing

An Introduction to
Integrated Marketing
Communications
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Growth of Advertising and Promotion
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
What is Marketing?
Marketing is an
organizational function
and a set of processes for
creating, communicating
and delivering value to
customers and for
managing customer
relationships in ways that
benefit the organization.
Value
Relationship marketing
Mass customization
Customer relationship
management (CRM)
© 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
Contemporary IMC Approach
Packaging
Sales
promotion
Point of
purchase
Publicity
Interactive
marketing
Media
Advertising
Direct
marketing
Direct
response
Public
relations
Special
events
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Defining IMC
IMC is a strategic business
process used to plan, develop,
execute and evaluate coordinated,
measurable, persuasive brand
communication programs with
consumers, customers, prospects
employees and other relevant
external and internal audiences.
The goal of IMC is to
generate short-term
financial returns and build
long-term brand value.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
A Contemporary Perspective of IMC
Recognized as a business process
IMC
Importance
of relevant
audience
Multiple relevant
audiences
Demand for accountability and
Demand for accountability
Measurement of 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
Reasons for the Growing Importance of
IMC
From
Toward
Media advertising
Multiple forms of communication
Mass media
Specialized media
Manufacturer dominance
Retailer dominance
General focus
Data-based marketing
Low agency accountability
Greater agency accountability
Traditional compensation
Performance-based compensation
Limited Internet availability
Widespread Internet availability
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
IMC and Branding
Brand Identity is a
combination of factors:
Name, logo, symbols,
design, packaging,
product or service
performance, and image
or associations in the
consumer’s mind.
IMC plays a major role
in the process of
developing and
sustaining brand
identity and 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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
$67.52
$59.94
$53.38
$46.99
$35.59
$26.45
$26.44
$26.01
$24.84
$21.19
Basic Elements of the Promotional Mix
Advertising
Direct Marketing
Interactive/
Internet Marketing
Sales Promotion
Publicity/Public
Relations
Personal Selling
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Classifications of Advertising
National Advertising
Retail/Local Advertising
Primary vs. Selective
Demand Advertising
Consumers
Business-to-Business Advertising
Professional Advertising
Trade Advertising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Organizations
Direct Marketing is Part of IMC
Direct
Mail
Direct
Response
Advertising
Internet
Sales
Direct
Marketing
Shopping
Channels
Telemarketing
Catalogs
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Bose Uses Direct Response Advertising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Using the Internet as an IMC Tool
The
Internet
Educates or
informs
customers
Obtains
customer
database
information
A persuasive
advertising
medium
Communicates
and interacts
with buyers
A sales tool
or an actual
sales vehicle
Provides
customer
service and
support
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Builds and
maintains
customer
relationships
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
Various Uses of Sales Promotion
Introduce new
products
Combat
competition
Enhance
personal selling
Get existing
customers to buy
more
Sales
Promotion
Tie in advertising
& personal
selling
Attract new
customers
Maintain sales in
off season
Increase retail
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
Advertising Versus Publicity
Factor
Advertising
Publicity
Control
Great
Little
Credibility
Lower
Higher
Reach
Measurable
Undetermined
Frequency
Schedulable
Uncontrollable
Cost
High/Specific
Low/Unspecified
Flexibility
High
Low
Timing
Specifiable
Tentative
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Publicity Vehicles
Feature
Articles
News
Releases
Interviews
Publicity
Vehicles
Press
Conferences
Special
Events
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
media
(TV/radio)
Print media
(newspapers,
magazines)
Public
Relations/
publicity
Out-of-home
media
Internet/
interactive
Direct
marketing
Target Audience
Personal
selling
Point-ofpurchase
(displays,
packaging)
Sales
Promotion
Word-ofmouth
Events and
sponsorship
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Product
placements
(TV and movies)
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. A detailed situation analysis
2. Specific marketing objectives
3. A marketing strategy and program
4. A program for implementing the strategy
5. A process for monitoring and evaluating performance
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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