Transcript Integrated Marketing Communications

INTEGRATED MARKETING
COMMUNICATIONS
Refresher : The Marketing Mix




Bordern’s (1961) Marketing Mix: product
planning, pricing, branding, distribution
channels, personal selling, advertising,
promotions, packaging, display, servicing,
physical handling, and fact finding and analysis.
McCarthy’s (1964) 4 Ps – Product, Price Place
Promotion
Kotler’s (1992) 4 Cs – Customers, Costs,
Convenience, Communication
Boom & Bitner’s (1983) 7 Ps – Product, Price
Place, Promotion, Physical Evidence, People,
Processes
P – PROMOTION: INTEGRATED
MARKETING COMMUNICATIONS (IMC)
Communications: The process whereby
thoughts are conveyed and meaning is shared
between individuals or between organizations
and individuals.
Marketing: A set of activities whereby business and
other organizations create transfers of value
(exchanges) between themselves and their
customers.
Marketing Communications
The collection of all elements in a brand’s
marketing mix that facilitate exchanges by
targeting the brand to a group of customers,
positioning the brand as somehow distinct from
competitive brands, and sharing the brand’s
meaning with the brand’s target audience.
INTEGRATED MARKETING
COMMUNICATIONS (IMC)

Coordination of all promotional activities – media
advertising, direct mail, personal selling, sales
promotion, and public relations – to produce a
unified customer-focused promotional message

Success of any IMC program depends critically on
identifying the members of an audience and
understanding what they want
 The
dramatic changes in the field of
marketing communications over the last
decade have challenged marketing
communicators to use communications
methods that will:
Break through the communications clutter in the
marketplace
 Reach audiences with interesting and persuasive
messages
 Assure that MarCom investments yield an adequate
return on investment


A move towards fully integrating all business
practices that communicate something about a
company’s brands to present or prospective
customers.
IMC requires a total strategy
including all marketing activities,
not just promotion
 Successful implementation of IMC
requires that everyone involved in
every aspect of promotion – public
relations, advertising, personal
selling, and sales promotion –
function as a team

 Joint
Integrated
Marketing
Promotion by BMW
and Apple
Computers
 Volvo
& Apple iPod
THE MARKETING COMMUNICATIONS MIX
1.
2.
3.
4.
5.
Personal Selling
Advertising
Public Relations
Sales Promotion
Sponsorship Marketing
Brand/Product Placement**
Personal Selling
1.

Interaction between salesperson
and prospect to sell products such
as insurance, automobiles, and real
estate.
2. Advertising

Informs the end customer or B2B
customer about products and brand
benefits and ultimately influences
brand choice.
3. Public Relations
Garners positive publicity for the
company and its brands through news
items or editorial comments.

4. Sales Promotion
Creates an immediate response from
the market.
Trade-oriented sales promotions
Consumer-oriented sales promotions

5. Sponsorship Marketing
Represents an opportunity for a
company and its brands to directly
target communications toward
narrow, but highly desirable,
audiences.
Associates a brand with a charitable
cause, a high profile event, or a
cultural affair.

IMPORTANCE OF DATABASES
With the growth of the Internet,
marketers have been given the power
to gather information faster and to
organize it easier than ever before
 By sharing this knowledge
appropriately among all relative
parties, a firm can lay the foundation
for a successful IMC program

Integrated Marketing Communications
Start with
the
customer
Use any form
of relevant
contact
Five Key
Aspects of
IMC
Achieve
Synergy
Affect
Behavior
Build
Relationships
Objective 2
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
CHANGES IN
MARKETING COMMUNICATION
PRACTICES
 Reduced
dependence on mass media
advertising.
 Increased
reliance on highly targeted
communication methods.
 Heightened
 Increased
demands on suppliers.
efforts to assess communications’
return on investment.
DETERMINING AN APPROPRIATE
MIX OF IMC TOOLS
Five Factors to Consider:
1.
2.
3.
4.
5.
What is the intended market?
What objectives must the MarCom initiative
achieve?
What is the product life-cycle stage?
What are competitors doing?
What is the available budget for marketing
communications?
DETERMINING AN APPROPRIATE
MIX OF IMC TOOLS
MANAGING THE MARCOM PROCESS
Selecting Target Markets
Establishing Objectives
Setting Budgets
Formulating Positioning
Strategies
Establishing Message
and Media Strategies
Evaluating Program
Effectiveness
 Stage

1: Selecting Target Markets:
Targeting allows marketing communicators to pinpoint
the product’s potential audience and to precisely deliver
messages to this group.
 Stage
2: Establishing Objectives:

Marketing communication objectives must fit within the
company’s overall corporate and marketing objectives.

Objectives must be realistic and stated in quantitative
terms with the amount of projected change and the time
duration specified.
OBJECTIVES – FIT WITH COMPANY OBJECTIVES NATIONAL EATING DISORDERS ASSOCIATION
 Stage




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3: Setting Budgets:
An organization’s financial resources are budgeted to
specific MarCom elements in order to accomplish the
sales and profit objectives established for its various
brands.
Top-down budgeting- Senior management decides how
much each subunit receives.
Bottom-up budgeting- Managers of subunits determine
how much is needed to achieve their objectives.
Bottom-up/Top-down (most frequently used)
Top-down/Bottom-up
Stage
4: Formulating Positioning
Strategies:
A good positioning statement should:
 Reflect a brand’s competitive advantage.
 Motivate customers to action.

WHAT IS THE POSITIONING OF THESE
BRANDS?
CAPTURE THE CHARACTERISTIC OF THE BRAND VIA
IMC
WHAT IS THE BRAND POSITIONING?
Big and Agile – Skoda Octavia 4x4 – ‘You
don’t see that very often’
BRAND IMAGE: WHAT IS IT?
 Establishing
Message and Media Strategies

Decisions must be made regarding the message to
be communicated and the media within which the
message will be carried.

Media typically connotes a mode of advertising
such as via television or radio, but the term media
can be applied to every MarCom element.
WHAT IS THE MESSAGE FOR BIG AL’S?
 Stage
5: Evaluating Program Effectiveness

Effectiveness is evaluated by comparing the actual
response rate with the objective established in the
form of a projected response rate.

Advertisers typically assess advertising in terms of
communication outcomes.
PROBLEMS FOR IMC
Few
providers have the skills
required to execute.
Mass
media campaigns easier
than Direct-to-Customer.
Need
for MarCom Director.
PROBLEMS WITH GLOBAL
COMMUNICATIONS
In China: KFC’s slogan: “Finger lickin’ good” came
out as “Eat your fingers off”
 Also in China: Coca-Cola had thousands of signs
made using the translation: “Ke-kou-ke-la”

Depending on the dialect this means . . .
 “Bite the wax tadpole,” or
 “Female horse stuffed with wax”


In Taiwan: Pepsi’s slogan, “Come alive with the Pepsi
generation” came out as “Pepsi will bring your
ancestors back from the dead”