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Chapter One

Integrated Marketing Communications

Prof. (Dr.) Kao Kveng Hong, Ph.D., D.Litt.

• What ads do you recall about surfing and surf boards?

• How do the ads depict surfing?

• How would you evaluate RonJon’s web site?

• What do you think of their logo?

Ron Jon Surf Shop Http://www.ronjons.com

1Surfing !

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Chapter Overview

• Highly competitive global marketplace.• Wide variety of media available for

communications.• Clear communications needed.• Emerging trends.

• Accountability.• Change in roles of account

executives, creatives and brand managers.

• Development of alternative media.

IntegratedMarketing Communications

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F I G U R E 1 .2Communication Process

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Shoe Advertisements

• Which advertisement attracts your attention the most?• Which advertisement is the least appealing?• How important is the brand name in each ad?• What is the message of each individual advertisement?• What makes each advertisement effective?• What are the pros and cons of each advertisement?

Click image for larger view

E X H I B I T

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Comparing the Advertisement to the Web Site

• Reebok (http://www.reebok.com)• New Balance (http://www.newbalance.com)• Nike (http://www.nike.com)• Adidas (http://www.adidas.com)

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F I G U R E 1 . 2Possible Noise in

Watching a TV Advertisement

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Advertising Clutter

• How many ads were you exposed to duringthe 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?

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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 internalcommunications.

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Phillip Franznick,President/Partner ofFD & B Advertising Agency talks about the change in advertising agencies to integrated marketing communication agencies.

Click image to play video.

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F I G U R E 1 . 4Traditional Marketing Mix

Product

Advertising Sales Promotions Personal Selling

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Price Promotion Distribution

DatabaseMarketing

DirectMarketing

SponsorshipMarketing

InternetMarketing

GuerillaMarketing

AlternativeMarketing

The Marketing Plan

• Situation analysis.• Marketing objectives.• Marketing budget.• Marketing strategy.• Marketing tactics.• Evaluation

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F I G U R E 1 . 5

F I G U R E 1 . 6Integrated Marketing Communication Plan

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Four Stages inCultivating an IMC System

[American Productivity & Quality Center]

Stage 1: Identify, coordinate and manage all

forms of marketing communications.Stage 2: Communications are

examined from perspective of customers.Stage 3: Apply information

technologies tothe IMC program.Stage 4: Customer data information

and insights used in corporate strategic planning.

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• Information technology• Changes in channel power• Increase in competition (global competitors)• Brand parity• Integration of information• Decline in effectiveness of television

advertising.

F I G U R E 1 . 8Trends Impacting Integrated Advertising and Marketing Communications

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F I G U R E 1 . 9U.S. Online Retail Sales

Apparel 7%

Appliances3%

Auto & parts

8%

Consumer electronics Computer

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hardw are/sof tw are 8%

5%

Other 19%

Food/beverages 3%

Home furnishings 5%

Music/videos 4%

Toys/video games 3%

Travel 35%

Source: Adapted from “U.S. Online Retail Sales,” Digital Marketing & Media Fact Pack, Advertising Age, Crain Communications, Inc. (2007), p. 34.

F I G U R E 1 . 10Market Share – Top Brands in Running Shoe Industry

Adidas, 13.2%

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Asics, 13.3%

Avia, 1.7%

Brooks, 1.7%

New Balance, 17.8%

Source: Adapted from Matt Powell, “A Steady Stride,” SCB, Vol. 39, No. 11 (November 2006), p. 15.

Nike, 46.2%

Saucony, 1.7%

Reebok, 2.3%

Other, 2.1%

F I G U R E 1 . 11Why Viewers Do Not Watch Ads

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I'm bored

Program is

boring Turn to another

program

Ads are on

Ad

boring Ad

annoying

Seen ad a

lot

0%

10%

20%

30%

40%

50%

60%

70%

80%

90% 100%

Global Integrated Marketing Communications

• Goal – to coordinate marketing efforts• Greater challenge due to national and cultural

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

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Integrated Marketing Communication

IMC is a way of looking at

the whole marketing Process

From the viewpoint of the receiver

Three Aspects

How Does Communication Work ?

Steps In Developing IMC

Responsibility Of Planning IMC

Marketing Communication Mix- 5 Models

AdvertisingSales PromotionPublic RelationPersonal SellingDirect Marketing

Advertising

•Print & broadcast Ads•Packaging-outer•Packaging-inserts•Motion Pictures•Brochure &Booklets•Posters & Leaflets

•Directories•Bill Boards•Display Signs•POP•Audio Visual •Symbols & Logos

Paramjit Sharma

Sales Promotion

•Contests ,Games ,lotteries•Premiums & gifts•Samples•Fairs & Trade Shows•Exhibitions•Demonstrations•Coupons•Rebates•Low Interest Financing•Trade in Allowances•Tie-ins

IMC IMC IMC IMC

Public Relations

•Press kits

•Speeches

•Seminars

•Annual Reports

•Donations

•Sponsorships

•Publications

•Community Relations

•Lobbying

•Identity Media

•Company Magazine

•Events

IMC IMC IMC IMCPersonal Selling

Sales Presentation

Sales meetings

Incentive Programmes

Samples

Fairs & Trade Shows

Direct Marketing

Catalogs

Mailings

Telemarketing

ElectronicShopping

TVShopping

Fax Mail

E-mail

Voice Mail

Communication Process

How Can we reach our Customers ?

How Can Our Customers Reach us?

Communication Process

SENDER Encoding

MediaDecoding RECEIVER

NOISE

Feedback Response

Message

Message Not Reaching Target Audience

Selective Attention

SelectiveDistortion

SelectiveRetention

Developing Effective Communication

Identify Target AudienceDeveloping ObjectivesDesign MessageSelect ChannelsEstablish BudgetDecide On Media MixMeasure ResultsManage IMC

Identify Target Audience

Potential Buyers

Current Users

Deciders or Influencers

Individuals

Groups

Particular or General Public

Paramjit Sharma

Identify Target Audience

1 familiarity Scale

Image Analysis

2 Favorability Scale

Never Heard Of Know a Know a fair Know VeryHeard Of Only Little Bit Amount well

Very Somewhat Indifferent Somewhat VeryFavorable Unfavorable favorable Favorable

Image Audience- FF Analysis

•A•B •A

•D•C

FavorableAttitude

Unfavorable Attitude

HighFamiliarity

lowFamiliarity

Paramjit Sharma

Determining Communication Objectives

CognitiveStage

AffectiveStage

BehaviorStage

Attention

Interest

Desire

Action

Awareness

Knowledge

LikingPreference

Conviction

Purchase

Interest

Evaluation

Trial

Adoption

ExposureReception

Cognitive Response

Attitude

Intention

Behavior

AIDAModel

CommunicationModelStages

Awareness

InnovationAdoption

ModelHierarchy ofEffect Model

Models

Design The Message

MessageStructure

MessageContent

Rational AppealEmotional AppealMoral Appeal

MessageFormat

MessageSource

IMC IMC IMC IMCSelecting Communication Channels

Personal Communication Channels *Advocate, Experts & Social Channel

Non Personal Communication Channels *Media, Atmosphere, Events, Cliques

Marketing Communication Budget

4 Methods

Affordable Method

Percentage Of Sales Method

Competitive Parity Method

Objective & Task Method

Marketing Communication Budget

Objective & Task Method

Establish Market share Goal

Percentage which can be reached by advertising

Percentage of aware Prospects to be Persuaded by advertisement

Trial Rate

Gross Rating Points

Determine advertisement Budget

Deciding The Marketing Communication Mix

PROMOTION TOOLS•Advertising

•Sales Promotion

•PR & Publicity

•Personal Selling

•Direct Marketing

Measure The Communication Results

Marketing Communication Budget

4 Methods

Affordable Method

Percentage Of Sales Method

Competitive Parity Method

Objective & Task Method