Chapter 1

An Introduction to Integrated Marketing

Communications

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The Marketing & Promotional Mixes

•Product or Service•Pricing Policy•Distribution Method•Promotional Mix

• Advertising• Direct Marketing• Sales Promotion• Publicity/Public Relations• Personal Selling

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Integrated Marketing Communications

• A marketing communications planning concept.• Recognizes the value of a comprehensive plan.• A plan that evaluates the strategic roles of several

communications disciplines:• General advertising• Direct response• Sales promotion• Public relations

• Combines the disciplines to provide:• Clarity• Consistency• Maximum communications impact

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A Marketing Revolution

• Shift from media advertising to other forms

• Movement away from a mass media approach

• Shift in power from manufacturers to retailers

• Rapid growth of database marketing

• Greater ad agency accountability

• Changes in agency compensation

• Rapid growth of the Internet

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Advertising Versus Publicity

•Advertising• Paid, sponsor-identified,

nonpersonal (media) communications.

•Publicity• Non-paid, unsponsored,

nonpersonal (media) communications.

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Classifications of Advertising

•National advertising•Retail/local advertising•Advertising to increase demand

• Primary demand for the product category• Selective demand for a specific brand

•Business & professional advertising• Business-to-business advertising• Professional advertising• Trade advertising

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Direct Marketing

• Direct marketing methods• Direct mail• Cataloging• Telemarketing• Direct response ads• Internet sales

• Part of the IMC program• Typically has separate:

• Objectives• Budgets• Strategies

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Interactive/Internet Marketing

• An entirely new era:• Little or no history or experience• Rapidly changing communications technology• Unprecedented growth and development

• Multiple Internet roles• As a persuasive advertising medium• As a means to educate or inform customers• As a sales tool or an actual sales vehicle• To obtain customer database information• To communicate and interact with buyers• To provide customer service and support• To build and maintain customer relationships

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Marketing activities that provide extra value or incentives to the sales force, distributors, or ultimate consumers and can stimulate immediate sales.

Marketing activities that provide extra value or incentives to the sales force, distributors, or ultimate consumers and can stimulate immediate sales.

Sales Promotion

• Trade-oriented• Targeted toward marketing

intermediaries such as retailers, wholesalers, or distributors• Promotion allowances• Merchandise allowances• Price deals• Sales contests• Trade shows

• Customer-oriented• Targeted to the ultimate

users of a product or service• Coupons• Sampling• Premiums• Rebates• Contests• Sweepstakes• POP materials

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Sales Promotion Uses

• Introduce new products•Get existing customers to buy more•Attract new customers•Combat competition•Maintain sales in off season• Increase retail inventories•Tie in advertising & personal selling•Enhance personal selling efforts

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Advertising Versus Publicity

FACTOR ADVERTISING PUBLICITYControl Great LittleCredibility Lower HigherReach Achievable UndeterminedFrequency Schedulable LowCost Specific UnspecifiedFlexibility High LowTiming Specifiable Tentative

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Publicity Vehicles

• News Releases:• Single-page news stories sent to media who might

print or broadcast the content.

• Feature Articles:• Larger manuscripts composed and edited for a

particular medium.

• Captioned Photos:• Photographs with content identified and explained

below the picture.

• Press Conferences:• Meetings and presentations to invited reporters

and editors.

• Special Events:• Sponsorship of events, teams, or programs of

public value.

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Public Relations

• Tools used by Public Relations• Publicity• Special publications• Community activity participation• Fund-raising• Special event sponsorship• Public affairs activities

The management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance.

The management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance.

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Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.

Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.

Promotional Management

•Considerations for developing the promotional mix include:• Type of product• Buyer’s decision process• Stage of product life cycle• Channels of distribution

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The Marketing Plan

1. A detailed situation analysis

2. Specific marketing objectives

3. A marketing strategy and program

4. A program for implementing the strategy

5. A process for monitoring and evaluating performance

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Situation Analysis• Internal Factors

• Assessment of the firm’s promotional organization and capabilities

• Review of the firm’s previous promotional programs

• Assessment of firm or brand image and implications for promotion

• Assessment of relative strengths and weaknesses of product/service

• External Factors• Customer analysis• Competitive analysis• Environmental analysis

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Potential Communications Objectives

• Individual sales• Customer loyalty• Company image• Brand image• Store patronage• Service contract

• An inquiry• A visit by the prospect• Product trial• Prescription for use• Recommendation• Adoption of the product

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Major Aspects of the Advertising Program

• Message development• Called “Creative Strategy”• Determine basic appeal• Determine main message

• Media strategy• Communication channels• Type of media . . .

• Newspapers?• Magazines?• Radio?• Television?• Outdoor?

• Specific media . . .• What specific papers, magazines,

stations, billboards, or other media?