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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
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FIGURE
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Communication Process
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FIGURE
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Communication Noise in Television Advertising
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Advertising Clutter
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Discussion Slide
How many ads were you exposed to during the last 24 hours from the following media?
– – – – – – Television Radio Magazines Newspapers Billboards Internet Web sites
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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-tobusiness, channel, customer, external communications, and internal communications.
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FIGURE
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Components of Promotion
Product
Price
Promotion
Distribution
Advertising
Sales Promotions
Personal Selling
Database Marketing
Direct Sponsorship Internet Marketing Marketing Marketing
Public Relations
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FIGURE
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The Marketing Plan
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Situation analysis Marketing objectives Marketing budget Marketing strategy Marketing tactics Evaluation of performance
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FIGURE
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An IMC Plan
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Exhibit 1.2
Items to Be Included in an IMC Program
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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 buses, television, radio, magazines, and newspapers) Toll free 800 number Company database
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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
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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.
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Strategies of the Best Companies
[American Productivity & Quality Center]
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Developed both interpersonal and cross-functional communications. Involved customers in planning processes. Understood customers as corporate customers for the purpose of crossselling.
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FIGURE
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Factors Affecting the Value of IMC Programs
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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
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FIGURE
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Global Internet Retail Sales by Product Type
Toys and games, 4.2% Apparel and gifts, 5.0% Books, 8.5% CDs, music, and videos, 11.8% Other, 0.1% Tickets & travel, 29.0%
Household, 12.8% Computers, electronics, and software, 28.7%
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FIGURE
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Market Share – Top Four Shoe Brands
60%
% of Total US Athletic Shoe Market
50% 40%
48%
36% 30% 20% 10% 0% 6% 3% 1986 Nike Reebok 6% 4% 1997 Adidas New Balance 31% 20% 20% 13% 11% 9%
2003
Source: Greg Lindsay, “The Rebirth of Cool,” Business 2.0, Vol. 5, No. 8 (September 2004), pp. 108-113.
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FIGURE
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Viewer Activities During TV Commercials
• Positive Responses • Ads have potential to be entertaining (45%) • Sit and watch ads (16%) • Negative Responses • Get up and do something else (54%) • Get annoyed (52%) • Switch channels (40%) • Talk to others in the room (34%) • Turn down the sound on the TV (19%) • Read (11%) • Use the computer (5%)
Source: Jennifer Lach, “Commercial Overload,” American Demographics, (September 1999), Vol.. 21, No. 9, p. 20.
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Global Integrated Marketing Communications
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GIMC is more challenging in the international arena Standardization vs Adaptation “Think globally, but act locally”
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