An Introduction to Integrated Marketing Communications 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 $0 $50 $100 $150 $200 $250 $300 Advertising Outside U.S. U.S. Sales Promotion U.S. Advertising 2002 1980 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin IMC–Audience Contact Points Marketing Communications Audience Marketing Communications Audience Point of Purchase Point of Purchase Publicity Publicity Public Relations Public Relations Packaging Packaging Direct Response Direct Response Sales Promotion Sales Promotion Events Events Outdoor Outdoor Broadcast Media Broadcast Media Print Media Print Media Direct Mail Direct Mail Internet/ Interactive Media Internet/ Interactive Media © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin IMC Principles Extend Worldwide + © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Point of Purchase Publicity Public Relations Direct Marketing Interactive Marketing Special Events Packaging Sales Promotion Direct Response Traditional Approach to Marketing Communications Media Adver- tising © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Contemporary IMC Approach Point of Purchase Publicity Interactive Marketing Public Relations Direct Marketing Special Events Packaging Sales Promotion Direct Response Media Adver- tising © 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 Traditional Compensation Traditional Compensation Performance Based Compensation Performance Based Compensation Traditional Compensation Traditional Compensation Performance Based Compensation Performance Based Compensation Media Advertising Media Advertising Multiple Forms of Communication Multiple Forms of Communication Mass Media Mass Media Specialized Media Specialized Media Manufacturer Dominance Manufacturer Dominance Retailer Dominance Retailer Dominance General Focus General Focus Data Based Marketing Data Based Marketing Low Agency Accountability Low Agency Accountability Greater Agency Accountability Greater Agency Accountability Limited Internet Availability Limited Internet Availability Widespread Internet Availability Widespread Internet Availability Media Advertising Media Advertising Multiple Forms of Communication Multiple Forms of Communication Mass Media Mass Media Specialized Media Specialized Media Manufacturer Dominance Manufacturer Dominance Retailer Dominance Retailer Dominance General Focus General Focus Data Based Marketing Data Based Marketing Low Agency Accountability Low Agency Accountability Greater Agency Accountability Greater Agency Accountability Marketing Revolution and Shifting Tides From Toward © 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. 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. 2003 Brand Value (Billions of Dollars) 1. Coca-Cola $70.5 2. Microsoft $65.1 3. IBM $51.8 4. GE $42.3 5. Intel $31.1 6. Nokia $29.4 7. Disney $28.0 8. McDonald’s $24.7 9. Marlboro $22.2 10. Mercedes $21.4 IMC plays a major role in the process of developing and sustaining brand identity and equity. IMC plays a major role in the process of developing and sustaining brand identity and equity. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin [...]... 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. .. 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 1 A detailed situation analysis 2 Specific marketing objectives 2 Specific marketing objectives 3 A marketing strategy and program 3 A marketing strategy and program 4 A program for implementing... Obtains Customer Customer Database Database Information Information A Persuasive A Persuasive Advertising Advertising Medium Medium Communicates Communicates and Interacts and Interacts With Buyers With Buyers A Sales Tool A Sales Tool or an Actual or an Actual Sales Vehicle Sales Vehicle Provides Provides Customer Customer Service and Service and Support Support © 2003 McGraw-Hill Companies, Inc.,... Direct Direct Marketing Marketing Shopping Shopping Channels Channels Telemarketing Telemarketing Cataloging Catalogs 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 The Internet Internet Educates or Educates or Informs Informs Customers Customers Obtains... 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 Advertising Direct Marketing Direct Marketing Interactive/ Interactive/ Internet Marketing Internet Marketing. .. 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 Direct... Service and Support Support © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Builds and Builds and Maintains Maintains Customer Customer Relationships 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... Consumeroriented • [For end-users] • Tradeoriented • [For resellers] © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Various Uses of Sales Promotion Introduce New Introduce New Products Products Combat Combat Competition Competition Enhance Enhance Personal Selling Personal Selling Get Existing Get Existing Customers to Customers to Buy More Buy More Sales Sales Promotion Promotion Tie In Tie In Advertising... Advertising & Advertising & Personal Selling Personal Selling Attract New Attract New Customers Customers Maintain Sales In Maintain Sales In Off Season Off Season Increase Retail Increase Retail Inventories Inventories © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Advertising Versus Publicity Factor Factor Advertising Advertising Publicity Publicity Control Control Great Great Little Little... program 3 A marketing strategy and program 4 A program for implementing the strategy 4 A program for implementing the strategy 5 A process for monitoring and evaluating performance 5 A process for monitoring and evaluating performance © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin . An Introduction to Integrated Marketing Communications An Introduction to Integrated Marketing Communications © 2003 McGraw-Hill Companies, Inc.,. Media Manufacturer Dominance Manufacturer Dominance Retailer Dominance Retailer Dominance General Focus General Focus Data Based Marketing Data Based Marketing