Overview of Integrated Marketing Communications - PowerPoint Presentation

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Overview of

Integrated Marketing CommunicationsSlide2

Chapter Objectives

After reading this chapter you should be able to

:Appreciate the practice of marketing communications and recognize the marcom tools used by practitioners.Differentiate among the following terms: the marketing mix, communications, marketing communications, the promotional mix, and integrated marketing communications.Describe the philosophy and practice of integrated marketing communications (IMC) and the five key features of IMC.

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Chapter Objectives (cont’d)

Recognize the activities involved in developing an integrated communications program.

Identify obstacles to implementing an IMC program.Understand and appreciate the components contained in an integrative model of the marcom decision-making process.3Slide4

Pepsi Loot and Foursquare

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Examples of Successful Campaigns and

Understanding Consumer Behavior

Means-End Chaining:Tropicana OJ Commercials:5Attributes

Consequences

Values

(the means) (the ends)

Drink

Tropicana OJ

quiet

refreshment

satisfaction/nutrition

Drink Enriched

Tropicana OJ added calcium/ refreshment satisfaction/reduce osteoporosisSlide6

Marketing and the Marketing Concept

Marketing

(Kotler 1980): human activity directed at satisfying needs and wants through exchange processes.Is marketing = selling??The idea of the marketing concept is to adapt the company’s offering to the needs and wants of the customer.

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Exchange: An Important Part of Marketing

For exchange to occur, there must be ....

Two parties and each party must ...have something of value to the other party,be capable of communication and delivery

,

be

free to accept/reject the offer

, and there must be

an

agreement to terms

.

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Communications and Marketing Communications

Communications:

the process where individuals share meaning and establish a commonness of thought.Marketing Communications: the collection of all elements of a firm’s marketing mix that facilitate exchange by establishing shared meaning with the firm’s customers.Marketing Communications -> B2B, B2C, non-profits Marketing Mix: specific collection of certain levels of elements of a brand’s 4Ps – product, price, place and promotion.

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Figure 1.1: Social Media Venn Diagram

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Figure 1.2: Elements of Promotional Mix

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Examples of the “Tools of Marcom”

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Promotion Management and Objectives of Promotion

Promotion Management: coordination of promotional mix elements in setting objectives, establishing budgets, designing programs, evaluating performance, and taking corrective action.

General Objectives of Promotion:InformPersuadeInduce Action

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Branding

Brand

A name, term, sign, symbol, or design intended to identify the goods and services of one seller or groups of sellers and differentiate them from those of competition.

Brand equity

The goodwill that an established brand has built up over its existence

.

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Marketing Communications

at the Brand Level

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The key for brand communications is to differentiate one company’s offering from another’s

A well-known and respected brand is an invaluable asset

A successful brand can create barriers to entry for competitors

BrandSlide15

Integrated Marketing Communications

Integrated Marketing Communications (IMC)

The coordination of the

promotional mix

elements with each other and with other elements of the brand’s

marketing mix

such that all elements speak with

one voice

.

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The Integration of Marketing Communications

Why Not Always Integrated?

Tradition of separate communication toolsInfluence of specialized outside suppliersManagerial parochialismFear of budget cutbacksLoss of power and authorityResistance of outside suppliers to broadening their functions

Skeptics who consider IMC to be a fad

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The payoff from IMC is that brand managers achieve:

The integration of multiple communication tools and media yield more positive communication results than the tools used individually

Synergy

The Meaning of Synergy

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Five Key Features of IMC

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IMC Feature #1: Start with Customer or Prospect

Identify Marcom

Program Goals

Determine Best

Way to Allocate

Marketing Budget

Media-Neutral

Approach

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IMC Feature #2: Use Any

F

orm of Relevant ContactAn example of a Touch Point, or 360° Marketing: Hershey Foods20Slide21

IMC Feature #

3: Achieve Synergy

Multiple messages must speak with a single voiceTakeaway:A brand’s positioning statement must:Present a clear idea of the brand in its target market’s mindConsistently deliver the same unified message across all media channels on all occasions.

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Build relationships (e.g., Harley Davidson) rather than engage in flings

Costs 5-10x more to acquire a new customer than keep a current one

Takeaway:Loyalty programs promote long-term relationships between customers and brands that lead to customer retention.Experiential marketing programs can create brand experiences that make positive and lasting impressions on customers.

IMC Feature #

4: Build Relationships

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IMC Feature #5: Affect Behavior

Don’t lose focus of the ultimate objective:

Affect BehaviorIMC must do more than just influence brand awareness or enhance consumer attitudes – the objective is to move people to action.23Slide24

Changes in

Marketing

Communication PracticesReduced dependence on mass media advertising.Increased reliance on highly targeted communication methods.Heightened demands on suppliers.Increased efforts to assess communications’ return on investment. 24Slide25

Obstacles to Implementing IMC

Few providers have the skills required to execute.

Mass media campaigns easier than direct-to-customer.The real challenge is to make sure that tools are consistently executed.

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SWOT Analysis

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Constraints

Vulnerabilities

Internal

ExternalSlide27

Figure 1.3: Making Brand-Level Marcom Decisions and Achieving Desired Outcomes

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Making Fundamental Marcom Decisions

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Micromarketing

: The customizing of products and communications to smaller segments (e.g., toothpaste).Slide29

Target Market Selection Strategies

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Segment A

Segment C

2.

Differentiated Marketing

3.

Concentrated Marketing

1. Undifferentiated MarketingSlide30

Marcom Implementation Decisions

Mixing

elementsCreating messagesSelecting mediaEstablishing momentum30Slide31

Marcom Outcomes

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Program Evaluation

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A Concluding Mantra: All Marketing Communications Should be…

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Directed to a Particular Target Market

Undertaken to Accomplish the Objective within the Budget Constraint

Clearly

Positioned

Created to Achieve a Specific Objective