IMC Chapter One-modefied

8/16/2019 IMC Chapter One-modefied

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Chapter One

An Introduction toIntegrated Marketing

Communications

Integrated MarketingIntegrated Marketing

CommunicationsCommunications


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MC Moon

The McDonald’s Corporationannounced its plans to expand thefranchise into unchartered territory.They’re building a branch on the moon!

James A. Sinner the Chairman andC"# of McDonald’s said the lunar

restaurant is scheduled to open inJanuary $%&'.

The company set aside a budget of(&$.' billion to complete the pro)ect.That’s nearly *%%% times +hat it coststo open a McDonald’s restaurant on

"arth. Sinner said he +anted to open a

restaurant on the moon because thecompany had ,run out of space- on"arth.


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MC Moon


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An ntroduction to ntegrated Mareting

Communications Chapter #ne

The /ro+th of Ad0ertising andThe /ro+th of Ad0ertising and

1romotion1romotion

n the 1ast1ast mareters relied onmedia ad0ertising to attract

customers to their products.

TodayToday companies are integratingtheir ad0ertising efforts +ith a0ariety of other communicationother communication

toolstools such as

2ebsites on the nternet Direct mareting

Sales promotion

1ublic relations

"ntertainment mareting

Sponsorship of e0ents.


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An ntroduction to ntegrated MaretingCommunications Chapter #ne

"0idence of the increasing"0idence of the increasingimportance of ad0ertising andimportance of ad0ertising andpromotion comes from the gro+thpromotion comes from the gro+thin expenditures in these areas.in expenditures in these areas.

n &34% ad0ertising expendituresin the 5nited States +ere ('6billion and (73 billion +as spenton many sales promotiontechni8ues.

9y $%&% total ad0ertising andnon ad0ertising maretingexpenditure in the 5SA +ereestimated to be (*:% billion asfollo+s;

(&:: billion media ad0ertising ($4% billion sales promotion (&'% billion direct mails

(6% billion sponsorships < e0entmareting

(&6 billion online search ( & billion online social media

mareting

(&& billion online display ad0ertising (&.' billion online 0ideo ads. (& billion mobile de0ices ad0ertising

1romotional expenditures in1romotional expenditures ininternational marets ha0e gro+ninternational marets ha0e gro+nas +ell.as +ell.

Ad0ertising expenditures outsidethe 5nited States increased from('' billion in &34% to nearly ($:%billion by $%%'.


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An ntroduction tontegrated Mareting

CommunicationsChapter #ne

Mareting =ocuses onMareting =ocuses on

>elationship < ?alue>elationship < ?alue

Successful companiesSuccessful companies

recogni@e that creatingcommunicating and deli0ering

0alue0alue to their customers isextremely important.

?alue?alue is the customersperception of all of the benefitsof a product or ser0ice +eighedagainst all the costs ofac8uiring and consuming it.

The focus on customercustomerrelationshipsrelationships andand 0alue0alue has ledhas ledmany companies to emphasi@emany companies to emphasi@erelationship marketingrelationship marketing.

>elationship Mareting>elationship Mareting in0ol0escreating maintaining andenhancing longBtermrelationships +ith indi0idualcustomers as +ell as other

staeholders for mutual benefit.


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2hy mo0ing to relationship2hy mo0ing to relationshipmareting mareting

=irst=irst companies recogni@e thatcustomers ha0e become much

more demanding. They +ant personali@edpersonali@ed

products and ser0ices that aretailoredtailored to their specific needsand +ants.

nformation technology


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An ntroduction to ntegrated MaretingCommunications

Chapter #ne

A contemporary 1erspecti0e of A contemporary 1erspecti0e ofMCMC

ntegrated maretingntegrated maretingcommunicationcommunication is a strategic

business process used toused to plande0elop execute and e0aluatecoordinated measurablepersuasi0e brandcommunications programs o0ertime +ith consumers customersprospects employees associatesand other targeted rele0ant

external and internal audiences. The /oal/oal is to generate both

shortBterm financial returns andbuild longBterm brand andshareholder 0alue.


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Chapter #ne

>easons for /ro+ing>easons for /ro+ingmportance of MCmportance of MC

Mareters did understood the0alue of strategically integratingintegrating the 0arious communicationsfunctions rather than ha0ingthem operate separatelyseparately.

9y doing so companies

a0oided duplicationa0oided duplication andde0eloped more efficient andeffecti0e maretingcommunications programs.


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Ma)or characteristics of thisMa)or characteristics of thismareting re0olution include;mareting re0olution include;

A shifting of mareting dollarsshifting of mareting dollars frommedia ad0ertising to other forms of

promotion particularly consumerBand tradeBoriented salespromotions.

A mo0ement a+aymo0ement a+ay from relying onad0ertisingBfocusedad0ertisingBfocused approaches+hich emphasi@e mass media totosol0e communication problemssol0e communication problems.

A shift in maretplace po+er frommanufacturersmanufacturers to retailersretailers.

The rapid gro+th and de0elopmentof database maretingdatabase mareting.

The rapid gro+thgro+th of thenternetnternet changing the +ays+aysthey companies communicatethey companies communicateand interact +ith consumers.

Demands for greateraccountability from ad0ertising

agencies and changes in the+ay agencies and othermareting communication firmsare compensated.


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Chapter #ne

The >ole of MC in 9randing;

#ne of the ma)or reasons for the gro+ing importance of integratedmareting communications o0er the past decade is that it plays ama)or role in the process of de0eloping and sustaining brand identityand e8uity.

SimplyGstrong brands ha0e the po+er to command a premium pricefrom consumers as +ell as in0estors. ( what is branding Videowhat is branding Video).


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Chapter #ne

9rand identity9rand identity is a combination of many factors including the namelogo symbols design pacaging and performance of a product orser0ice as +ell as the image or type of associations that comes tomind +hen consumers thin about a brand.

t reflects the entire spectrum of consumersH a+areness no+ledget reflects the entire spectrum of consumersH a+areness no+ledge

and image of the brand as +ell as the company behind it.and image of the brand as +ell as the company behind it.


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The 1romotional Mix; The Tools for MCThe 1romotional Mix; The Tools for MC

1romotion1romotion is the coordination of all seller initiated efforts to set upchannels of information and persuasion in order to sell goods andser0ices or promote an idea.

9asic tools used to accomplish an organi@ations communicationob)ecti0es are often referred to as the 1romotional mix.


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Chapter #ne

1) Advertising1) Advertising Ad0ertising is any paid form of nonB

personal communication about anorgani@ation product ser0ice or idea byan identified sponsor.

The 1aid1aid aspect of this definition reflectsthe fact that the space or time for an

ad0ertising message generally must bebought.

The IonBpersonalIonBpersonal component means thatad0ertising in0ol0es mass media that cantransmit a message to large groups ofindi0iduals often at the same time.


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Chapter #ne

2hy ad0ertising is an important2hy ad0ertising is an importantpartpart of many mareters MCprograms

=irst=irst ad0ertising is still the mostmostcostBeffecti0ecostBeffecti0e +ay to reach largeaudiences.

1opular T? sho+s can reach asmany as $' to 6% million 0ie+erseach +ee.

SecondSecond Ad0ertising is a 0aluabletool for building brand e8uity byinfluencing their perceptions.

ThirdThird ad0ertising is stillrecogni@ed as one of the best+ays to build the brand image formany products and ser0ices

The Most Common Types ofThe Most Common Types of Ad0ertising Ad0ertising

Ad0ertising to Consumer Ad0ertising to Consumer

Marets;Marets;

National Advertising National Advertising Retail/Local Advertising Retail/Local Advertising

Primary-versus elective !emandPrimary-versus elective !emand

Advertising Advertising

Ad0ertising to business and

professional Marets; "usiness to business advertising "usiness to business advertising #rade Advertising #rade Advertising


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Chapter #ne

2)Direct Marketing2)Direct Marketing

Direct Mareting in0ol0esdatabase management directdatabase management directselling telemareting and directBselling telemareting and directB

response ads through direct mailresponse ads through direct mailthe nternet and 0ariousthe nternet and 0ariousbroadcast and print media.broadcast and print media.

Companies such as Tupper+areester < A0on relies only onindependent contractors to selltheir products directly to

consumers. #ne of the ma)or tools of direct

mareting is direct responsedirect responsead0ertisingad0ertising, that encourages theconsumer to purchase directlyfrom the manufacturer.


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Chapter #ne

nteracti0e medianteracti0e media allo+ for abacBandBforth flo+ ofinformation +hereby users canparticipate in and modify theform and content of the

information they recei0e in realtime.

The ne+ media allo+ users toperform a 0ariety of functionssuch as;

>ecei0e and alter informationand images.

Mae in8uiries. >espond to 8uestions. Mae purchases.


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3)Sales promotion3)Sales promotion, are those mareting acti0ities thatpro0ide extra 0alue or

incenti0es to the sales forcethe distributors or the ultimateconsumer and can stimulateimmediate sales.

Sales promotion is generallybroen into t+o ma)orcategories;

ConsumerBoriented acti0itiesConsumerBoriented acti0ities ConsumerBoriented sales

promotion includes couponingsampling premiums rebatescontests s+eepstaes.

TradeBoriented acti0ities.

TradeBoriented sales promotion+holesalers distributors and

retailers. Such as allo+ances price

deals sales contests.


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Chapter #ne

>easons for the increased emphasis on sales promotion;>easons for the increased emphasis on sales promotion;

aF Declining brand loyalty.

bF ncreased consumer sensiti0ity to promotional deals.

cF >etailers ha0e become larger and more po+erful and are

demanding more trade promotion support from companies. $n recent years many com%anies have shi&ted the em%hasis o& their

%romotional strategy &rom advertising advertising to sales %romotionsales %romotion.


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1ublicity1ublicity usually comes in theform of a ne+s story editorialor announcement about anorgani@ation andKor its productsand ser0ices.

Lie ad0ertising publicityin0ol0es nonBpersonalcommunication to a massaudience.

5nlie ad0ertising publicity isnot directly paid for by thecompany.

An ad0antage of publicity o0erother forms of promotion is itscredibility.

Consumers generally tend tobe less septical to+ard

fa0orable information about aproduct or ser0ice +hen itcomes from a source theypercei0e as unbiased.

4)Pulic relations4)Pulic relations isthe management function+hich e0aluates publicattitudes identifies the policiesand procedures of an indi0idualor organi@ation +ith the public

interest and executes aprogram of action to earn publicunderstanding and acceptance.


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Chapter #ne

!)Personal selling!)Personal selling is a form of personBtoBperson communicationin +hich a seller attempts to assist andKor persuade prospecti0ebuyers to purchase the companys product or ser0ice.

5sing personal selling insures the follo+ing5sing personal selling insures the follo+ing;

Communication flexibility.

Tailoring the message to the customers specific needs or situation. mmediate and precise feedbac.

Targeting efforts specific marets and customer types that are thebest prospects for the companys product or ser0ice.


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Chapter #ne

The MC 1lanningThe MC 1lanning

MC management in0ol0es theprocess of planning executinge0aluating and controlling the useof the 0arious promotionalBmix

elements to effecti0elycommunicate +ith targetaudiences.

The MC program Should;The MC program Should;

Decide on the role and function ofthe specific elements of thepromotional mix.

De0elop strategies for eachelement.

Determine ho+ they +ill beintegrated.

1lan for their implementation.

Consider ho+ to e0aluate theresults achie0ed and mae anynecessary ad)ustments.

Strategy 0s. TacticsStrategy 0s. Tactics


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Chapter #ne


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Chapter #ne

1romotional 1rogram Situation Analysis

The situation analysis includes

both an internal and an externalanalysis. t focuses on thefactors that influence or arerele0ant to the de0elopment ofa promotional strategy.

The internal analysis assessesrele0ant areas in0ol0ing theproductKser0ice offering and thefirm itself.

The internal analysis alsoassesses se0eral things suchas;

The relati0e strengths and+eanesses of the product orser0ice.

ts ad0antages anddisad0antages.

Any uni8ue selling points orbenefits it may ha0e.

ts pacaging price anddesignN and so on.


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Chapter #ne

"xternal Analysis"xternal Analysis

The external analysis focuseson factors such as;

Characteristics of the firmscustomers.

Maret segments.

1ositioning strategies andcompetitors.

An important part of the external An important part of the externalanalysis is a detailedanalysis is a detailedconsiderationconsiderationof;of;

Customers characteristics 9uying patterns.

Their decision processes.

=actors influencing theirpurchase decisions.

Consumers perceptions andattitudes.

Lifestyles.

Criteria for maing purchasedecisions.


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Analysis of the Analysis of theCommunications 1rocess;Communications 1rocess;

At this stage the mareterexamines ho+ the company

can effecti0ely communicate+ith consumers in its targetmarets.

"stablishing communicationcommunicationgoals and ob)ecti0esgoals and ob)ecti0es is anessential step.

Mareting ob)ecti0esMareting ob)ecti0es refer to+hat is to be accomplished bythe o0erall mareting program.#hey are o&ten stated in terms ohey are o&ten stated in terms o&sales' maret share' or %ro&itability.sales' maret share' or %ro&itability.

Communication ob)ecti0esCommunication ob)ecti0es referto +hat the firm sees toaccomplish +ith its promotionalprogram includes;

IatureIature of the message.

Creating a+arenessCreating a+areness orno+ledge about a product andits attributes or benefits.

Creating an imageCreating an imageN orde0eloping fa0orable attitudes

preferences or purchaseintentions.

/uiding forces/uiding forces for de0elopmentof the o0erall maretingcommunications strategy andof ob)ecti0es for eachpromotionalBmix area.


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Chapter #ne

9udget Determination9udget Determination

Ouestions to be ased;

2hat +ill the promotional

program cost Po+ +ill the money be

allocated

At this stage the budget isoften tentati0e. t may not be

finali@ed until specificpromotionalBmix strategies arede0eloped.


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De0eloping the integratedDe0eloping the integratedMareting CommunicationsMareting Communications1rogram1rogram

At this stage decisions ha0e to

be made regarding the role andimportance of each elementand their coordination +ith oneanother.

1rocedures must be de0elopedfor e0aluating performance and

maing any necessarychanges.

T+o important aspects of theT+o important aspects of thead0ertising program are;ad0ertising program are;

Message de0elopmentMessage de0elopment Media strategyMedia strategy

Decisions must be maderegarding +hich types of media+ill be used as +ell as specificmedia selections.

This tas re8uires carefule0aluation of the media optionsad0antages and limitationscosts and ability to deli0er the

message effecti0ely to thetarget maret.


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Chapter #ne

The final stage the MC planningprocess is monitoringmonitoringe0aluating and controlling thee0aluating and controlling the

promotional program.promotional program.

t is important to;t is important to;

Determine ho+ +ell the MCprogram is meeting

communications ob)ecti0es

Po+ the MC programs +ill helpthe firm accomplish its o0erallmareting goals and ob)ecti0es.


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MC 1lanning 1rocessMC 1lanning 1rocess


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Assignment Q #ne Assignment Q #ne

Choose a specificcoffee shop chain anddiscuss ho+ this firm isusing the integratedmaretingcommunications toolsin de0eloping a

promotional concept forits products.

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IMC Chapter One-modefied

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