Transcript APCh01.ppt
An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Growth of Advertising and Promotion Expenditure in Billions of Dollars U.S. Advertising U.S. Sales Promotion 2002 1980 Advertising Outside U.S. $0 $50 $100 $150 $200 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin $250 $300 IMC–Audience Contact Points Point of Purchase Internet/ Interactive Media Direct Mail Print Media Publicity Public Relations Marketing Communications Audience Broadcast Media Outdoor © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Packaging Direct Response Sales Promotion Events IMC Principles Extend Worldwide © 2003 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 © 2003 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 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The US Army Uses TV Advertising as Part of Its IMC Program *Click outside of the video screen to advance to the next slide © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Marketing Revolution and Shifting Tides 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 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Dell Focuses on Building a Relationship With Customers © 2003 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. 2003 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 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin $70.5 $65.1 $51.8 $42.3 $31.1 $29.4 $28.0 $24.7 $22.2 $21.4 Intel’s Advertising Helps Build Brand Equity *Click outside of the video screen to advance to the next slide © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Coordinated Marketing Mix Elements Build Image © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin + Basic Elements of the Promotional Mix Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations Personal Selling © 2003 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 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Organizations Great Advertising Can Strike a Responsive Chord with Consumers *Click outside of the video screen to advance to the next slide © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin An Example of “B-to-B” Advertising © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin + Direct Marketing is Part of IMC Direct Mail Direct Response Advertising Internet Sales Direct Marketing Shopping Channels Telemarketing Cataloging Catalogs © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Bose Uses Direct Response Advertising © 2003 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 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Builds and Maintains Customer Relationships American Airlines Encourages Customers to Do It All Online © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin + 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] © 2003 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 © 2003 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 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Publicity Vehicles Feature Articles News Releases Interviews Publicity Vehicles Press Conferences Special Events © 2003 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 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin DuPont Uses Advertising to Enhance Its Corporate Image + © 2003 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 Integration & Implementation of Marketing Communications Strategies Monitor, Evaluate & Control Promotional Program © 2003 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 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin