Chapter 1 Introduction to IMC PDF

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1 Introduction to Integrated Marketing Communications

1.1. Definition of IMC 1.2. Evolution of IMC 1.3. Importance of IMC 1.4. The role of IMC in the marketing process 1.5. IMC planning process 1-1

1.1. Definition of Integrated Marketing Communications (IMC) Marketing Activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for: - Customers, clients, partners, and society at large Exchange: Involves parties with: – Something of value to one another – Desire and ability to give up something to the other party – Way to communicate with each other 1-2

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1.1. Definition of Integrated Marketing Communications (IMC) Marketing Mix – Product, price, place, and promotion (4Ps) – To develop an effective marketing mix, marketers must: • Be knowledgeable about the issues and options of each element of the mix • Know how to combine the elements to form an effective marketing program • Analyze the market and use the data to develop the marketing strategy and mix

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1.1. Definition of Integrated Marketing Communications (IMC) Montblanc uses a variety of marketing-mix elements, including price, product design, brand name, and distribution strategy, to create a high-quality, upscale image for its watches. Does incorporating a well-known celebrity into this ad help reinforce Montblanc’s image? Source: Montblanc 1-4

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1.1. Definition of Integrated Marketing Communications (IMC) Integrated Marketing Communications (IMC) American Association of Advertising Agencies (the 4As) developed one of the first definition of IMC: “A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines (e.g. general advertising, direct response, sales promotion, and public relations) and combines these disciplines to provide clarity, consistency, and maximum communication impact.” (The 4 As, 1989)

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1.1. Definition of Integrated Marketing Communications (IMC) Integrated Marketing Communications (IMC) – Coordinate various promotional elements and other marketing activities that communicate with a firm’s customers – Recognize the added value of a comprehensive plan that: • Evaluate the strategic roles of a variety of communication disciplines • Combine the disciplines to provide clarity, consistency, and maximum communications impact

– Ensure all marketing and promotional activities project a consistent, unified image 1-6

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1.1. Definition of Integrated Marketing Communications (IMC) Integrated Marketing Communications (IMC) The coordination and integration of all marketing communication tools, avenues, and sources within a company into a seamless program which maximizes the impact on consumers and other end-users at a minimal cost. This integration includes all business-to-business, channel, customer, external communications, and internal communications. 1-7

FIGURE

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Components of Promotion

Product

Advertising

Price

Promotion

Sales Promotions

Direct Marketing

Distribution

Personal Selling

Interactive/ Public Internet Relations Marketing 1-8

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IMC INVOLVES AUDIENCE CONTACTS

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Many companies are taking an audience contact or touch point perspective in developing their IMC programs whereby they consider all of the potential ways of reaching their target audience and presenting the company or brand in a favorable manner. 1-9

IMC INVOLVES AUDIENCE CONTACTS

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IMC INVOLVES AUDIENCE CONTACTS

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1.2. Evolution of IMC Reasons for IMC growth (1) Fragmentation of Media (2) Database technology (3) Consumer empowerment (4) Advertising Clutter

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Advertising Clutter •

How many ads were you exposed to during the last 24 hours from the following media? – – – – – –

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Television Radio Magazines Newspapers Billboards Internet Web sites

How many ads can you recall from each of the above media?

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1.3. Importance of IMC 

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Strategically integrates the various communications functions Avoids duplication and takes advantage of synergy among promotional tools Develops more efficient and effective marketing communications programs (maximize ROI in MKT & promotion) Changing environment – Evolution to micromarketing – Consumers’ unresponsiveness to traditional advertising – Changing rules of marketing 1-14

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1.3. Importance of IMC Changing rules of marketing  Shift from media advertising to other forms of marketing communication  Movement away from advertising focused-approaches that emphasize mass media  Shift in power from manufacturers to retailers  Rapid growth of database marketing  Demands for greater ad agency accountability  Changes in agency compensation  Rapid growth of the Internet  Increasing importance of branding 1-15

1.3. Importance of IMC Pepsi Perfect was featured in the movie Back to the Future II and the 6,500 limited edition bottles that Pepsi offered as a creative tie-in immediately sold out. Source: PepsiCo

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1.4. The role of IMC in the marketing process

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1.5. IMC planning process 

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Integrated marketing communications management – Planning, executing, evaluating, and controlling the use of the promotional-mix elements to effectively communicate with target audiences Integrated marketing communications plan – Developing, implementing, and controlling an organization’s IMC program

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1.5. IMC planning process Step 1- Review of the marketing plan Step 2- Promotional program situation analysis Step 3- Analysis of the communication process Step 4-Budget determination Step 5-Developing the IMC program Step 6-Integration and Implementation of Marketing Communications Strategies Step 7-Monitoring, evaluation and control 1-19

1.5. IMC planning process Step 1: Review of Marketing Plan  Examine overall marketing plan and objectives  Role of advertising and promotion  Competitive analysis 

Assess environmental influences

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1.5. IMC planning process Marketing Plan  Describes overall marketing strategy and programs for an organization and includes: – Situation analysis – Marketing objectives – Selection of target market(s) and plans for the four elements of the marketing mix – Program for implementing the marketing strategy – Process for monitoring and evaluating performance

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1.5. IMC planning process Step 2-Analysis of Promotional Program Situation  Internal analysis – Promotional department organization – Firm’s ability to implement promotional program – Agency evaluation and selection – Review of previous program results 

External analysis – Consumer behavior analysis – Market segmentation and target marketing – Market positioning – Competitive analysis – Environmental analysis 1-22

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Areas covered in the situation analysis

1.5. IMC planning process Step 3-Analysis of Communication Process  Analyze receiver’s response processes  Analyze source, message, channel factors  Establish communications goals and objectives

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Communication Process

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Communication Noise in Television Advertising

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1.5. IMC planning process Step 3-Analysis of Communication Process (cont.)  Marketing objectives – Determine what is to be accomplished by the overall marketing program in terms of sales, market share, or profitability 

Communication objectives – Determine what the firm seeks to accomplish with its promotional program – Stated in terms of: • Nature of the message to be communicated • Specific communication effects to be achieved

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1.5. IMC planning process Step 4-Budget Determination  Set tentative marketing communications budget  Allocate tentative budget

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1.5. IMC planning process Step 5-Develop Integrated Marketing Communications Program

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Developing the IMC Program Items to Be Included in an IMC Program • •

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Company logo Product brand name and company name Business cards Letterhead Carry home bags (paper or plastic) Wrapping paper Coupons Promotional giveaways (coffee mugs, pens, pencils, calendars) Design of booth for trade shows Advertisements (billboards, space used on cars and buses, television, radio, magazines, and newspapers) Toll free number Company database

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Cooperative advertising with other businesses Personal selling pitches Characteristics of target market buyers Characteristics of business buyers Sales incentives provided to sales force (contests, prizes, bonuses, and commissions) Internal messages Company magazines and newspapers Statements to shareholders Speeches by company leaders Public relations releases Sponsorship programs Web site

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1.5. IMC planning process Step 6-Integrate and Implement Marketing Communications Strategies       

Integrate promotional-mix strategies Create and produce ads Purchase media time, space, etc. Design and implement direct-marketing programs Design and distribute sales promotion materials Design and implement public relations/publicity programs Design and implement interactive/Internet marketing programs 1-31

1.5. IMC planning process Step 7-Monitoring, Evaluation, and Control  Determining how well the program is: – Meeting communication objectives – Helping the firm accomplish its overall marketing goals and objectives 

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Evaluating promotional program results/effectiveness Taking measures to control and adjust promotional strategies 1-32

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A framework for IMC planning

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EXHIBIT

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Shoe Advertisements Which advertisement attracts your attention the most? Which advertisement is the least appealing? How important is the brand name in each ad? What is the message of each individual advertisement? What makes each advertisement effective? What are the pros and cons of each advertisement? 1-34

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Comparing the Advertisement to the Web Site Reebok (http://www.reebok.com) ASICS (http://www.asics.com)

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New Balance (http://www.newbalance.com) Skechers (http://www.skechers.com)

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Strategies of the Best Companies

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Developed both interpersonal and crossfunctional communications. Involved customers in planning processes. Understood customers as corporate customers for the purpose of cross-selling. [American Productivity & Quality Center]

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