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

U.S. Advertising

U.S. Sales 2002

Promotion 1980
Advertising
Outside U.S.

$0 $50 $100 $150 $200 $250 $300

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 IMC–Audience Contact Points

Point
Point of
of Public
Public
Publicity
Publicity Packaging
Packaging
Purchase
Purchase Relations
Relations

Internet/
Internet/ Direct
Direct
Interactive
Interactive
Media Marketing Response
Response
Media Marketing
Communications
Communications
Audience
Audience Sales
Sales
Direct
Direct Mail
Mail Promotion
Promotion

Broadcast
Broadcast
Print
Print Media
Media Outdoor
Outdoor Events
Events
Media
Media
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
IMC Principles Extend Worldwide

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

+
 Traditional Approach to Marketing
Communications

Sales
Publicity Promotion
Point of
Purchase

Media Packaging
Special Adver-
Events tising Direct
Response
Public
Relations
Interactive
Direct Marketing
Marketing

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Contemporary IMC Approach

Sales Direct
Packaging
Promotion Response

Media
Point of
Purchase Adver-
Public
tising Relations
Publicity

Interactive
Marketing Direct
Special
Marketing
Events

© 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

 Marketing Revolution and Shifting Tides

From Toward
Media
Media Advertising
Advertising Multiple
Multiple Forms
Forms of
of Communication
Communication

Mass
Mass Media
Media Specialized
Specialized Media
Media

Manufacturer
Manufacturer Dominance
Dominance Retailer
Retailer Dominance
Dominance

General
General Focus
Focus Data
Data Based
Based Marketing
Marketing

Low
Low Agency
Agency Accountability
Accountability Greater
Greater Agency
Agency Accountability
Accountability

Traditional
Traditional Compensation
Compensation Performance
Performance Based
Based Compensation
Compensation

Limited
Limited Internet
Internet Availability
Availability Widespread
Widespread Internet
Internet Availability
Availability

© 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

2003 Brand Value

Brand
Brand Identity
Identity is
is aa (Billions of Dollars)
combination
combination of of factors:
factors:
Name,
Name, logo,
logo, symbols,
symbols, 1. Coca-Cola $70.5
design,
design, packaging,
packaging, 2. Microsoft $65.1
product
product or
or service
service 3. IBM $51.8
performance,
performance, andand image
image 4. GE $42.3
or
or associations
associations inin the
the 5. Intel $31.1
consumer’s
consumer’s mind.
mind.
6. Nokia $29.4
IMC
IMC plays
plays aa major
major role
role 7. Disney $28.0
in
in the
the process
process of
of 8. McDonald’s $24.7
developing
developing andand
sustaining 9. Marlboro $22.2
sustaining brand
brand
identity
identity and
and equity.
equity. 10. Mercedes $21.4
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Intel’s Advertising 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
Direct Marketing
Marketing

Interactive/
Interactive/
Internet
Internet Marketing
Marketing

Sales
Sales Promotion
Promotion

Publicity/Public
Publicity/Public
Relations
Relations

Personal
Personal Selling
Selling
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 Classifications of Advertising

National
National Advertising
Advertising

Retail/Local
Retail/Local Advertising
Advertising

Primary
Primary vs.
vs. Selective
Selective
Demand
Demand Advertising
Advertising
Consumers

Business-to-Business
Business-to-Business Advertising
Advertising

Professional
Professional Advertising
Advertising

Trade
Trade Advertising
Advertising
Organizations
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
Mail
Mail
Direct
Direct
Internet
Internet Response
Response
Sales
Sales Advertising
Advertising
Direct
Direct
Marketing
Marketing
Shopping
Shopping Telemarketing
Telemarketing
Channels
Channels

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
Educates or
or AA Persuasive
Persuasive AA Sales
Sales Tool
Tool
Informs
Informs Advertising
Advertising or
or an
an Actual
Actual
Customers
Customers Medium
Medium Sales
Sales Vehicle
Vehicle

Obtains
Obtains Provides
Provides Builds
Builds and
and
Communicates
Communicates
Customer
Customer Customer
Customer Maintains
Maintains
and
and Interacts
Interacts
Database
Database Service
Service and
and Customer
Customer
With
With Buyers
Buyers
Information
Information Support
Support Relationships
Relationships
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
American Airlines Encourages
Customers to Do It All Online

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin +

Sales Promotion Tools

Coupons
Samples Trade
Allowances
Premiums
POP Displays
Contests/Sweepstakes
Training
Refunds/Rebates Programs
Bonus Packs Trade
Shows
Loyalty Programs
Coop
Events Advertising
• Trade-oriented
• Consumer- • [For resellers]

oriented
• [For end-users]
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 Various Uses of Sales Promotion

Introduce Get
Get Existing
Existing
Introduce New
New Customers
Customers toto
Products
Products Buy More
Buy More

Combat
Combat Attract
Attract New
New
Competition
Competition Customers
Customers
Sales
Sales
Promotion
Promotion
Enhance
Enhance Maintain
Maintain Sales
Sales In
In
Personal
Personal Selling
Selling Off
Off Season
Season

Tie
Tie In
In Increase
Increase Retail
Retail
Advertising
Advertising & &
Personal Inventories
Inventories
Personal Selling
Selling
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising Versus Publicity

Factor
Factor Advertising
Advertising Publicity
Publicity
Control
Control Great
Great Little
Little
Credibility
Credibility Lower
Lower Higher
Higher
Reach
Reach Measurable
Measurable Undetermined
Undetermined
Frequency
Frequency Schedulable
Schedulable Uncontrollable
Uncontrollable
Cost
Cost High/Specific
High/Specific Low/Unspecified
Low/Unspecified

Flexibility
Flexibility High
High Low
Low
Timing
Timing Specifiable
Specifiable Tentative
Tentative
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 Publicity Vehicles

Feature
Feature
Articles
Articles

News
News Interviews
Interviews
Interviews
Releases
Releases Publicity
Publicity
Vehicles
Vehicles

Press
Press Special
Special
Conferences
Conferences Events
Events
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 Public Relations Tools

Publicity Special
Vehicles Publications

Community Corporate Cause-related

Activities Advertising
Advertising Marketing

Public Affairs Special Event

Activities 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 Communications Programs

Sales PR/ Personal Direct Internet/

Advertising
Promotion Publicity Selling Marketing Interactive

Advertising Sales PR/ Personal Direct Internet/

Promotion Publicity Selling Marketing Interactive
Objectives Objectives Objectives Objectives Objectives Objectives

Message Sales PR/ Personal Direct Internet/

Promotion Publicity Selling Marketing Interactive
Strategy Strategy Strategy Strategy Strategy Strategy

Integration & Implementation of Marketing Communications Strategies

Monitor, Evaluate & Control Promotional Program
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 The Marketing Plan

1.
1. A
A detailed
detailed situation
situation analysis
analysis

2.
2. Specific
Specific marketing
marketing objectives
objectives

3.
3. A
A marketing
marketing strategy
strategy and
and program
program

4.
4. A
A program
program for
for implementing
implementing the
the strategy
strategy

5.
5. A
A process
process for
for monitoring
monitoring and
and evaluating
evaluating performance
performance

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin