Transcript Chap001.ppt
1 An Introduction to Integrated Marketing Communications McGraw-Hill/Irwin Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed The Modern World of Marketing • Rapidly changing media environment • Mass media losing viewers, readers, listeners • Digital media targets narrow audience • Consumers not content to be passive message recipients • Information now obtained from a myriad of sources 1-2 Volkswagen Strategy Traditional Mass Media Social Media Integrated Marketing Strategy Point-ofSale Kits Sports Team Sponsor 1-3 Punch Dub • Entertaining, interactive information 1-4 The Growth of Advertising and Promotion • Integral part of social and economic systems • Carefully prepared messages delivered to carefully targeted audiences • Six-fold increase between 1980 and 2010 • New marketing channels • Internet ads (banner ads, videos, webisodes) • Social media • Mobile marketing 1-5 The Role of Marketing Advertising & Promotion Inform customers of a product or service Convince them of its ability to satisfy their wants or needs Nonprofit Organizations Solicit donations Offer intangible social and psychological satisfactions Help develop and sustain relationships 1-6 What is Marketing? The activity, set of institutions, and processes for… creating, communicating, delivering, and exchanging offerings that have… value for customers, clients, partners, and society at large 1-7 What is Value? • Customer’s perception of all the benefits of a product or service • Weighed against costs of acquiring and consuming it • Benefits can be… • Functional • Experiential • Psychological 1-8 The Marketing Mix • The Four Ps • Product • Price • Place • Promotion 1-9 Contemporary IMC Approach Packaging Sales promotion Mass media advertising Point of purchase Publicity Interactive marketing Direct marketing Direct response Public relations Special events 1-10 Growing Importance of IMC • Value of IMC • Avoids duplication of marketing efforts • Synergy among promotional tools • More efficient and effective marketing • Rapidly changing environment • Consumer behavior • Technology • Media consumption behavior • Proliferation of media 1-11 The Marketing Revolution Shift from traditional media ads to other forms of promotion/nontraditional media Internet and social media changing how companies interact with consumers Power shift: manufacturers to retailers Database marketing Greater ad agency accountability Changes in how ad agencies are compensated 1-12 The Role of IMC in Branding Image or Associations Name Performance Brand Identity Logo Packaging Design Symbols 1-13 Building Brands in a Recession Consumers Spend less money Carefully scrutinize purchases Rethink brand loyalties Willing to trade off or down More price sensitive More value conscious 1-14 Building Brands in a Recession Companies Reduce advertising budgets Balance discounts/promos w/brand image Must overcome consumer distrust Change product marketing focus Increase online social presence Look for new ways to remain relevant 1-15 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 1-16 The Promotional Mix Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/ Public Relations Personal Selling 1-17 Advertising • Paid, nonpersonal communication • About an organization, product, service, or idea • With an identified sponsor • No immediate feedback from audience 1-18 Non-Personal Media • Mass media • TV • Radio • Magazines • Newspapers • Benefits • Cost effective • Large audiences 1-19 Advertising Classifications National Retail / Local Consumers Primary / Selective Demand Business-to-Business Professional Trade Organizations 1-20 Forms of Direct Marketing Direct Mail Catalogs Telemarketing Database Management Direct Response Ads Direct Selling Shopping Channels Internet Sales 1-21 Direct Response Advertising • Encourages consumers to purchase directly from the manufacturer 1-22 Direct Response Advertising Major Tools Forces for Change Direct Mail Changing Lifestyles Television Credit Cards Magazines Toll-free Numbers Internet Rapid Internet Growth 1-23 Interactive Marketing • Interactive media • Internet • Kiosks • Interactive television • Cell phones • Other mobile devices 1-24 Interactive Marketing • Internet activities • Advertise products and services • Link ads and websites to search engines • Offer coupons, contests, sweepstakes • Conduct direct marketing • Do personal selling • Conduct public relations activities • Measure advertising and promotions 1-25 Sales Promotion Marketing activities that provide extra value or incentives to the… Sales Force Ultimate Consumer Retailers 1-26 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 1-27 Publicity A news story, editorial, or High credibility and announcement to low cost a mass audience Not directly paid for or run under identified sponsor Is sometimes unfavorable Not always under company control 1-28 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 1-29 Public Relations • Uses publicity and other tools • Special publications • Community activities • Fund-raising events • Sponsorships • Public affairs activities 1-30 Personal Selling • Person-to-person communication • A seller attempts to assist and/or persuade prospective buyers to make a purchase or act on an idea 1-31 IMC Audience Contact Tools 1-32 Touch Points: Control vs. Impact 1-33 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 1-34 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 1-35 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 1-36 Analysis of Communications Process • Communication decisions • Source and message • Communication channels • Media mix • Costs • Marketing goals • Communication objectives 1-37 Budget Determination • What will the promotional program cost? • How will the money be allocated? 1-38 Developing the IMC Program IMC Strategies Creative Media 1-39 Monitoring, Evaluation, Control Basic Goals Determine how well the program is doing, and why Problem correction Continual management feedback Input for future promotions/strategies 1-40