An Introduction to Integrated Marketing Communications (IMC)

An Introduction to Integrated Marketing Communications (IMC)

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Chapter plan

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

1. What is IMC?

2. Reasons for the growing importance of IMC

3. IMC and branding

4. The promotional mix: The tools of IMC

4. IMC planning process

1. What is IMC?

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Coordinating the various

promotional elements to

effectively communicate with

target audiences

Point ofpurchase

Publicity

Publicrelations

Directmarketing

Interactivemarketing

Specialevents

Packaging

Salespromotion

Directresponse

Traditional Approach to Marketing Communications

MediaAdver-tising

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Contemporary IMC Approach

Point ofpurchase

Publicity

Interactivemarketing

Publicrelations

Directmarketing

Specialevents

PackagingSales

promotionDirect

response

MediaAdver-tising

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Traditional compensationTraditional compensation Performance-based compensation Performance-based compensation Traditional compensationTraditional compensation Performance-based compensation Performance-based compensation

Media advertisingMedia advertising Multiple forms of communicationMultiple forms of communication

Mass mediaMass media Specialized mediaSpecialized media

Manufacturer dominanceManufacturer dominance Retailer dominanceRetailer dominance

General focusGeneral focus Data-based marketingData-based marketing

Low agency accountabilityLow agency accountability Greater agency accountabilityGreater agency accountability

Limited Internet availabilityLimited Internet availability Widespread Internet availabilityWidespread Internet availability

Media advertisingMedia advertising Multiple forms of communicationMultiple forms of communication

Mass mediaMass media Specialized mediaSpecialized media

Manufacturer dominanceManufacturer dominance Retailer dominanceRetailer dominance

General focusGeneral focus Data-based marketingData-based marketing

Low agency accountabilityLow agency accountability Greater agency accountabilityGreater agency accountability

2. Reasons for the Growing Importance of IMC

From Toward

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3. 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.

2005 Brand Value(Billions of Dollars)

1. Coca-Cola$67.52

2. Microsoft$59.94

3. IBM$53.38

4. GE $46.995. Intel

$35.596. Nokia

$26.457. Disney

$26.448. McDonald’s

$26.019. Marlboro

$24.8410. Mercedes

$21.19

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.

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4.6. Personal Selling4.6. Personal Selling

4.1. Advertising4.1. Advertising

4.2. Direct Marketing4.2. Direct Marketing

4.3. Internet Marketing4.3. Internet Marketing

4.4. Sales Promotion4.4. Sales Promotion

4.5. Public Relations4.5. Public Relations

4. The promotional mix: The tools of IMC

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Cost effectiveCost effective

PaidPaid

Non-personalNon-personal

4.1. Advertising

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Primary vs. Selective Demand Advertising

Primary vs. Selective Demand AdvertisingPrimary vs. Selective Demand Advertising

Primary vs. Selective Demand Advertising

Business-to-Business AdvertisingBusiness-to-Business Advertising

Organizations

National AdvertisingNational Advertising

Retail/Local AdvertisingRetail/Local Advertising

Professional AdvertisingProfessional Advertising

Trade AdvertisingTrade Advertising

National AdvertisingNational Advertising

Retail/Local AdvertisingRetail/Local Advertising

Business-to-Business AdvertisingBusiness-to-Business Advertising

Professional AdvertisingProfessional Advertising

Classifications of Advertising

Consumers

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DirectResponse

Advertising

DirectResponse

Advertising

DirectResponse

Advertising

DirectResponse

Advertising

DirectMail

DirectMail

CatalogsCatalogs

TelemarketingTelemarketing

InternetSales

InternetSales

ShoppingChannelsShoppingChannels

DirectMail

DirectMail

TelemarketingTelemarketing

CatalogsCatalogs

ShoppingChannelsShoppingChannels

4.2. Direct Marketing

DirectMarketing

DirectMarketing

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Builds and maintains customer

relationships

Builds and maintains customer

relationships

Obtains customer database

information

Obtains customer database

information

Communicates and interacts with buyers

Communicates and interacts with buyers

Provides customer

service and support

Provides customer

service and support

Educates or informs

customers

Educates or informs

customers

A persuasive advertising

medium

A persuasive advertising

medium

A sales tool or an actual sales vehicle

A sales tool or an actual sales vehicle

Obtains customer database

information

Obtains customer database

information

Communicates and interacts with buyers

Communicates and interacts with buyers

Provides customer

service and support

Provides customer

service and support

Educates or informs

customers

Educates or informs

customers

A persuasive advertising

medium

A persuasive advertising

medium

A sales tool or an actual sales vehicle

A sales tool or an actual sales vehicle

4.3. Internet marketing

TheInternet

TheInternet

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• Consumer-oriented

• [For end-users]

• Trade-oriented

• [For resellers]

4.4. Sales Promotion Tools

EventsEvents

Loyalty ProgramsLoyalty Programs

Bonus Packs Bonus Packs

Refunds/Rebates Refunds/Rebates

Contests/SweepstakesContests/Sweepstakes

PremiumsPremiums

SamplesSamples

CouponsCoupons

CoopAdvertising

CoopAdvertising

TradeShowsTradeShows

TrainingProgramsTraining

Programs

POP DisplaysPOP Displays

TradeAllowances

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Corporate AdvertisingCorporate

Advertising Cause-related

MarketingCause-related

Marketing

PublicityVehicles

CommunityActivities

Public AffairsActivities

SpecialPublications

Special EventSponsorship

PublicityVehicles

CommunityActivities

Public AffairsActivities

SpecialPublications

4.5. Public Relations Tools

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InterviewsInterviewsInterviews Interviews

FeatureArticlesFeatureArticles

SpecialEventsSpecialEvents

PressConferences

PressConferences

NewsReleases

NewsReleases

FeatureArticlesFeatureArticles

SpecialEventsSpecialEvents

NewsReleases

NewsReleases

Publicity Vehicles

PublicityVehiclesPublicityVehicles

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Advertising Versus Publicity

AdvertisingAdvertising PublicityPublicity

TentativeTentative

LowLow

Low/Unspecified Low/Unspecified

Uncontrollable Uncontrollable

GreatGreat

LowerLower

Measurable Measurable

SchedulableSchedulable

High/Specific High/Specific

HighHigh

SpecifiableSpecifiable

UndeterminedUndetermined

HigherHigher

LittleLittle

FactorFactor

ControlControl

CredibilityCredibility

ReachReach

FrequencyFrequency

CostCost

FlexibilityFlexibility

TimingTiming

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Face-to-face communicationFace-to-face communication

Mostly used for business customersMostly used for business customers

4.6. Personal selling

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5. IMC Planning Model

Promotional program situation analysis

Analysis of the communications process

Budget determination

Develop integrated marketing communications programs

Review of marketing plan

AdvertisingSales

promotionPR/

publicityPersonalselling

Directmarketing

Advertisingobjectives

Salespromotionobjectives

PR/publicity

objectives

Personalselling

objectives

Directmarketingobjectives

Messagestrategy

Salespromotionstrategy

PR/publicitystrategy

Personalselling

strategy

Directmarketingstrategy

Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program

Internet/interactive

Internet/interactiveobjectives

Internet/interactivestrategy

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5. IMC Planning Model

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