Pizza !
List the first five pizza companies that come to mind.
Discussion Slide
Describe the advertisements used by each. Can you identify each company’s logo, tagline or any other prominent identification marks? What makes a good pizza advertisement?
Chapter 1: Integrated Marketing Communications
Chapter Overview
Highly competitive global marketplace. Need to invest marketing dollars wisely. Firms are demanding accountability. Change in roles of account executives, creatives and brand managers. Chapter One topics:
– Communication processes – Integrated marketing communications – Global integrated marketing communications
Exhibit 1-2 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?
Figure 1-1 Communication Process
Noise
Sender
Noise
Encoding
Channel Decoding
Noise
Feedback Noise
Receiver
Discussion Slide
Exhibit 1-2 Shoe Advertisements
What message do you think each sender wanted to communicate? What factors affect the decoding of each ad’s message? What noise factors would interfere with receiving the correct message?
Types of messages
Planned message Inferred message- marketing mix element Maintenance message- personnel Unplanned message
Figure 1-2 Barriers to Communication
Between Individuals
Age Gender Culture Social status Personality
Between Companies
Poor selling techniques Unfocused advertising Poor media choices Failure to find correct contact persons
Within Companies
Poor downward flow (orders, procedures) Poor lateral flow (communication between departments) Poor upward flow (employees afraid of management) Poor machinery (computers, telephone systems, intranet systems) Information not stored for future use or poor retrieval system
Advertising Clutter
To how many ads were you exposed during the 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?
Discussion Slide
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 internal communications.
Figure 1-3 Traditional Marketing Mix
Product Price Promotion Distribution
Advertising
Sales Promotions
Personal Selling
Direct Marketing
Public Relations
IMC
It is a process of managing the customer relationships that derive brand value. It is a cross functional process for creating and nourishing profitable relationship with customers and other stakeholders by strategically controlling or influencing all messages sent to these group and encouraging data driven purposeful dialogue between them
IMC
Cross functional-coordination and cooperation among various department and external agencies---to get to a common goal Relationship oriented Integrated message through marketing communication and indirectly through other element of marketing mix Interactive—two way rather than one way.
Figure 1- 4 The Marketing Plan
Situation analysis. Marketing objectives. Marketing budget. Marketing strategy. Marketing tactics. Evaluation
Figure 1-5: Integrated Marketing Communication Plan
IMC Concept Ethics & Social Issues
Chs. 3-6
Chs. 1-2
Promotion Analysis Brand and Firm Image Consumer Buyer Behavior B-to-B Buyer Behavior
Marketing Plan
Advertising Management Chs. 7-10 Advertising Media Selection Advertising Design Trade Promotions Consumer Promotions Personal Selling
Chs. 11-13
Chs. 14-17
Public Relations Sponsorship Programs Database Programs Internet Marketing Evaluating Integrated Marketing
Figure 1-8 Items to be Included in an IMC Program
Company logo Product brand name and company name Business cards Letterhead Carry home bags (paper or plastic) Wrapping paper Coupons Promotional giveaways (coffee mugs, pens, pencils, calendars) Design of booth for trade shows Advertisements (billboards, space used on cars and busses, television, radio, magazines and newspapers) Toll free 800 number Company database
Cooperative advertising with other businesses Personal selling pitches Characteristics of target market buyers Characteristics of business buyers Sales incentives provided to sales force (contests, prizes, bonuses and commissions) Internal messages Company magazines and newspapers Statements to shareholders Speeches by company leaders Public relations releases Sponsorship programs Web site
Four Stages in Cultivating an IMC System
[American Productivity & Quality Center]
Stage 1: Identify, coordinate and manage all forms of external communications. Stage 2: Extend the scope of communication to include everyone in the organization. Stage 3: Apply information technologies to the IMC program. Stage 4: Treat the IMC as an investment and not a departmental function.
Strategies of the Best Companies
[American Productivity & Quality Center]
Developed both interpersonal and crossfunctional communications. Involved customers in planning processes. Understood customers as corporate customers for the purpose of cross-selling.
Figure 1-6 Factors Affecting the Value of IMC Programs
Development of information technology. Changes in channel power. Increase in competition (global competitors) Maturing markets. Brand parity Integration of information by consumers Decline in effectiveness of mass media advertising.
Barriers to IMC
•Top management support
•Organizational Barriers--hierarchical
•Cultural Barriers—Fear of losing power and reduction in budget allocation
The Internet Impact
Changes in Channel Power
Greater use of the Internet to buy and sell products
Figure 1-7 Viewer Activities During TV Commercials
Positive Responses: Get amused by the ads (26%) Sit and watch commercials (19%)
Negative Responses: Get annoyed at the number of ads (52%) Get up and do something else (45%) Switch channels (39%) Talk to others in the room (34%) Turn down the sound on TV (19%) Read (11%) Use the computer (5%)
Source: Jennifer Lach, “Commercial Overload,” American Demographics, (September 1999), Vol.. 21, No. 9, p. 20.
Global Integrated Marketing Communications
GIMC is more challenging in the international arena. Standardization vs Adaptation. ―Think globally, but act locally.‖
Building Your IMC Campaign
Organizational Culture Client Agency Relationship Collaborative Strategy Customer Centric Strategy