shimp8e chap01

PowerPoint Presentation by Charlie CookThe University of West Alabama

CHAPTER 1

Eighth Edition

© 2010 South-Western, a part of Cengage LearningAll rights reserved.

Overview of Integrated Marketing Communications

1. Appreciate the practice of marketing communications and recognize the marcom tools used by practitioners.

2. Describe the philosophy and practice of integrated marketing communications (IMC).

3. Understand the five key features of IMC.

4. Recognize the activities involved in developing an integrated communications program.

5. Identify obstacles to implementing an IMC program.

6. Understand and appreciate the components contained in an integrative model of the marcom decision-making process.

Chapter ObjectivesAfter reading this chapter you should be able to:

© 2010 South-Western, a part of Cengage Learning. All rights reserved. 1–2


Introduction to Marketing Communications Introduction to Marketing Communications (Marcom)(Marcom)

Business-to-Consumer(B2C)

Business-to-Business(B2B)

Integrated MarcomB2C&B

Integrated Marketing Communication (IMC)

Programs


The Tools of Marketing CommunicationsTable 1.1

Source: Adapted from Figure 1.1 in Kevin Lane Keller, “Mastering the Marketing Communications Mix: Micro and Macro Perspectives on Integrated Marketing Communication Programs,” Journal of Marketing Management 17 (August, 2001), 823–851.

1.1. Media AdvertisingMedia Advertising• • TVTV• • RadioRadio• • MagazinesMagazines• • NewspapersNewspapers

2.2. Direct Response and Direct Response and Interactive AdvertisingInteractive Advertising

• • Direct mailDirect mail• • Telephone solicitationTelephone solicitation• • Online advertisingOnline advertising

3.3. Place AdvertisingPlace Advertising• • Billboards and bulletinsBillboards and bulletins• • PostersPosters• • Transit adsTransit ads• • Cinema adsCinema ads

4.4. Store Signage and Point-of-Store Signage and Point-of-Purchase AdvertisingPurchase Advertising

• • External store signsExternal store signs• • In-store shelf signsIn-store shelf signs• • Shopping cart adsShopping cart ads• • In-store radio and TVIn-store radio and TV

5.5. Trade- and Consumer-Trade- and Consumer-Oriented PromotionsOriented Promotions

• • Trade deals and buying Trade deals and buying allowancesallowances

• • Display and advertising Display and advertising allowancesallowances

• • Trade showsTrade shows• • Cooperative advertisingCooperative advertising• • SamplesSamples• • CouponsCoupons• • PremiumsPremiums• • Refunds/rebatesRefunds/rebates• • Contests/sweepstakesContests/sweepstakes• • Promotional gamesPromotional games• • Bonus packsBonus packs• • Price-off dealsPrice-off deals

6.6. Event Marketing and Event Marketing and SponsorshipsSponsorships

• • Sponsorship of sporting Sponsorship of sporting eventsevents

• • Sponsorship of arts, fairs, Sponsorship of arts, fairs, and festivalsand festivals

• • Sponsorship of causesSponsorship of causes7.7. Marketing-Oriented Public Marketing-Oriented Public

Relations and Relations and PublicityPublicity8.8. Personal SellingPersonal Selling


The Integration of Marketing The Integration of Marketing CommunicationsCommunications

• Why Not Integrated?Why Not Integrated? Tradition of separation communication toolsTradition of separation communication tools Influence of specialized outside suppliersInfluence of specialized outside suppliers Managerial parochialismManagerial parochialism

Fear of budget cutbacksFear of budget cutbacks Loss of power and authorityLoss of power and authority

Resistance of outside suppliers to broadening their Resistance of outside suppliers to broadening their functionsfunctions

Skeptics who consider IMC to be a fadSkeptics who consider IMC to be a fad


The Integration of Marketing The Integration of Marketing Communications (cont’d)Communications (cont’d)

• IMC and SynergyIMC and Synergy Using multiple communication tools in conjunction Using multiple communication tools in conjunction

with one another can produce greater results with one another can produce greater results ((synergistic effectssynergistic effects) than tools used individually and ) than tools used individually and in an uncoordinated fashion.in an uncoordinated fashion.


And Now a Definition of IMCAnd Now a Definition of IMC

• Integrated Marketing Communications (IMC)Integrated Marketing Communications (IMC)• Is a communications process for planning, creation, integration, Is a communications process for planning, creation, integration, and implementation of diverse forms of marcom delivered to a and implementation of diverse forms of marcom delivered to a brand’s targeted customers and prospectsbrand’s targeted customers and prospects

• Has as its goal influencing or affecting behavior of targeted Has as its goal influencing or affecting behavior of targeted audience audience

• Considers all touch points a customer/ prospect has with the brand Considers all touch points a customer/ prospect has with the brand as potential delivery channels for messages as potential delivery channels for messages

• Requires that all of a brand’s communication media deliver a Requires that all of a brand’s communication media deliver a consistent message consistent message

• Has customer/prospect as its starting point for determining types of Has customer/prospect as its starting point for determining types of messages and media to inform, persuade, and induce actionmessages and media to inform, persuade, and induce action


Five Key Features of IMCTable 1.2Table 1.2

1. Start with the customer or prospect.

2. Use any form of relevant contact or touch point.

3. Speak with a single voice.

4. Build relationships.

5. Affect behavior.


Key IMC Feature # 1Key IMC Feature # 1

• The Consumer or Business Customer Must The Consumer or Business Customer Must Represent the Starting Point for All Marketing Represent the Starting Point for All Marketing Communications ActivitiesCommunications Activities

• Takeaway:Takeaway: Consumers in ControlConsumers in Control

Outside-in approach: learn the media preferences and Outside-in approach: learn the media preferences and lifestyles of customers/prospects to know the best contexts lifestyles of customers/prospects to know the best contexts to reach them with brand messages.to reach them with brand messages.

Reduced Dependence on Mass MediaReduced Dependence on Mass Media Consumers are increasingly in control of their media choices Consumers are increasingly in control of their media choices

for acquiring information about brands.for acquiring information about brands.


Selecting the Appropriate Marcom ToolsSelecting the Appropriate Marcom Tools

Identify Marcom Program Goals

Determine Best Way to Allocate

Marketing Budget

Media-Neutral Approach

Courtesy of WISK®, Unilever United States, Inc.



• Use Any and All Marcom Tools Use Any and All Marcom Tools That Are Up to the TaskThat Are Up to the Task

• Takeaway:Takeaway: 360-Degree Branding360-Degree Branding

A brand’s A brand’s touch pointstouch points should be should be everywhere the target audience is.everywhere the target audience is.

Not All Touch Points Not All Touch Points Are Equally EngagingAre Equally Engaging Surround customers/prospects Surround customers/prospects

with the message, but not to the with the message, but not to the point of being irritatingly present.point of being irritatingly present.



• Multiple Messages Must Speak Multiple Messages Must Speak with a Single Voicewith a Single Voice

• Takeaway:Takeaway: A brand’s positioning statement must:A brand’s positioning statement must:

Present a clear idea of the Present a clear idea of the brand in its target market’s mindbrand in its target market’s mind

Consistently deliver the same Consistently deliver the same unified message across all unified message across all media channels on all occasions.media channels on all occasions.

© Richard B. Levine / Newscom



• Build Relationships Rather Build Relationships Rather Than Engage in FlingsThan Engage in Flings

• Takeaway:Takeaway: Loyalty programsLoyalty programs promote long- promote long-

term relationships between term relationships between customers and brands that lead customers and brands that lead to customer retention.to customer retention.

Experiential marketing programsExperiential marketing programs can create brand experiences can create brand experiences that make positive and lasting that make positive and lasting impressions on customers.impressions on customers.



• Don’t Lose Focus of the Ultimate Objective: Don’t Lose Focus of the Ultimate Objective: Affect BehaviorAffect Behavior

• Takeaway:Takeaway: The goal of IMC is to influence the target audience in The goal of IMC is to influence the target audience in

such a way that the audience engages in a specific such a way that the audience engages in a specific desired behavior.desired behavior.

The effectiveness of an IMC program is judged by its The effectiveness of an IMC program is judged by its success in terms of its ultimate influence on behavior.success in terms of its ultimate influence on behavior.


Obstacles to Implementing IMCObstacles to Implementing IMC

• Integration requires tight coordination among all Integration requires tight coordination among all elements of a marcom program.elements of a marcom program. Few providers of marketing communication services Few providers of marketing communication services

have the diversity of skills required to execute an IMC have the diversity of skills required to execute an IMC program.program.

Direct-to-customer advertising is more difficult than a Direct-to-customer advertising is more difficult than a mass media campaign.mass media campaign.

The greatest challenge is making sure that all The greatest challenge is making sure that all marcom tools are consistently executed.marcom tools are consistently executed.


Marketing CommunicationsMarketing Communications

• Marketing Communications’ ObjectiveMarketing Communications’ Objective To enhance brand equity by moving customers to To enhance brand equity by moving customers to

favorable action toward the brand—trying it, repeat favorable action toward the brand—trying it, repeat purchasing it, and becoming loyal toward the brand.purchasing it, and becoming loyal toward the brand.

• Brand EquityBrand Equity The degree to which consumers favorably perceive The degree to which consumers favorably perceive

the brand’s features and benefits as compared to the brand’s features and benefits as compared to competitive brands and how strongly these views are competitive brands and how strongly these views are held in memoryheld in memory


Making Brand-Level Marcom Decisions and Achieving Desired Outcomes

Figure 1.1Figure 1.1


Fundamental Marcom DecisionsFundamental Marcom Decisions

Targeting Positioning Setting Objectives Budgeting

Fundamental Marcom Program

Decisions


Fundamental Marcom Decisions (cont’d)Fundamental Marcom Decisions (cont’d)

Top-down(TD)

Bottom-up/Top-down(BU/TD)

Top-down/Bottom-up(TD/BU)

Bottom-up(BU)

Budgeting Procedures


Fundamental Marcom Decisions: Fundamental Marcom Decisions: Commit-to-Memory MantraCommit-to-Memory Mantra

1. Directed to a specifictarget market

2. Clearly positioned

3. Created to achieve a specific objective

4. Undertaken within budget constraints

All marketing communications

should be:


Marcom Implementation DecisionsMarcom Implementation Decisions

MixingElements

CreatingMessages

SelectingMedia

EstablishingMomentum

Marcom ProgramImplementation

Decisions


A Buy-One-Get-One-Free Promotion

Figure 1.2Figure 1.2


Marcom OutcomesMarcom Outcomes

Enhancing Brand Equity

Affecting Behavior

Marcom Outcomes


Marcom Program EvaluationMarcom Program Evaluation

Measuring Resultsfor Accountability

BehavioralImpact

Communication Outcomes

Providing Feedback

Taking Corrective Action

Greater InvestmentDifferent

Communication Combinations

Revised StrategyRevised Allocations

Marcom Program Implementation