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Chapter Overview• Highly competitive global marketplace• Need to invest marketing dollars wisely• Firms are demanding accountability• Change in roles of account executives,

creatives and brand managers• Chapter One topics:

• Communication processes

• Integrated marketing communications

• Global integrated marketing communications

Integrated Marketing Communications

1

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F I G U R E 1 .1

Communication Process

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F I G U R E 1 . 2Communication Noise in Television Advertising

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Advertising Clutter

• How many ads were you exposed to during the last 24 hours from the following media?– Television– Radio– Magazines– Newspapers– Billboards– Internet Web sites

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

Discussion Slide

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Integrated Marketing Communications is 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. The IMC includes all business-to-business, channel, customer, external communications, and internal communications.

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F I G U R E 1 . 3Components of Promotion

Product Price Promotion Distribution

Advertising Sales Promotions Personal Selling

DatabaseMarketing

DirectMarketing

SponsorshipMarketing

InternetMarketing

PublicRelations

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• Situation analysis• Marketing objectives• Marketing budget• Marketing strategy• Marketing tactics• Evaluation of performance

F I G U R E 1 . 4The Marketing Plan

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F I G U R E 1 . 5

An IMC Plan

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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 800 number• Company database

• 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

Exhibit 1.2Items to Be Included in an IMC Program

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Four Stages in Cultivating an IMC System

Stage 1: Identify, coordinate, and manage all forms of external communications.

Stage 2: Extend the scope of communication to include everyone in the organization.

Stage 3: Apply information technologies to the IMC program.

Stage 4: Treat the IMC as an investment and not a departmental function.

[American Productivity & Quality Center]

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Strategies of the Best Companies

• Developed both interpersonal and cross-functional 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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• Development of information technology• Changes in channel power• Increase in competition (global competitors)• Maturing markets• Brand parity• Integration of information by consumers• Decline in effectiveness of mass media

advertising

F I G U R E 1 . 6Factors Affecting the Value of IMC Programs

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F I G U R E 1 . 7Global Internet Retail Sales by Product Type

Tickets & travel, 29.0%

Computers, electronics, and software, 28.7%

Household, 12.8%

CDs, music, and videos, 11.8%

Books, 8.5%

Apparel and gifts, 5.0%

Toys and games, 4.2%

Other, 0.1%

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F I G U R E 1 . 8Market Share – Top Four Shoe Brands

20%

48%

36%

31%

20%

6% 6%3% 4%

13%

9%11%

0%

10%

20%

30%

40%

50%

60%

1986 1997 2003

% o

f Tot

al U

S A

thle

tic S

hoe

Mar

ket

Nike Reebok Adidas New Balance

Source: Greg Lindsay, “The Rebirth of Cool,” Business 2.0, Vol. 5, No. 8 (September 2004), pp. 108-113.

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Source: Jennifer Lach, “Commercial Overload,” American Demographics,(September 1999), Vol.. 21, No. 9, p. 20.

F I G U R E 1 . 9Viewer Activities During TV Commercials

• Positive Responses• Ads have potential to be entertaining (45%)• Sit and watch ads (16%)

• Negative Responses• Get up and do something else (54%)• Get annoyed (52%)• Switch channels (40%)• Talk to others in the room (34%)• Turn down the sound on the TV (19%)• Read (11%)• Use the computer (5%)

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Global Integrated Marketing Communications

• GIMC is more challenging in the international arena

• Standardization vs Adaptation• “Think globally, but act locally”