CHAPTER 1 AN INTRODUCTION TO INTEGRATED MARKETING COMMUNICATIONS

Advertising and Promotion

are an integral part of our social and economic systems.

THE GROWTH OF ADVERTISING AND PROMOTION

It has evolved into a vital communications system for both the consumers and businesses.

deliver carefully prepared messages

The ability of advertising and other promotional methods to ______ to target audiences has given them a major role in the marketing programs of most organizations.

increase

Advertising and promotion spending is expected to continue to ____ as marketers around the world recognize the value and importance of advertising and other forms of marketing communication

Integrated marketing communications

play an important role in the marketing programs of companies in their efforts to communicate with and sell their products and services to consumers.

MARKETING

THE PROCESS OF PLANNING AND EXECUTING THE CONCEPTION, PRICING, PROMOTION, AND DISTRIBUTION OF IDEAS, GOODS, AND SERVICES TO CREATE EXCHANGES THAT SATISFY INDIVIDUAL AND ORGANIZATIONAL OBJECTIVES.-AMERICAN MARKETING ASSOCIATION (AMA)

exchange

The focus of this marketing definition is ____as a central concept in marketing and the use of the basic marketing activities to create and sustain relationships with customers.

desire and ability to give up that something to the other party, a way to communicate with each other.

For exchange to occur there must be two or more parties with something of value to one another, a__________

Advertising and promotion

facilitates the exchange process by informing customers of an organization’s product or service and convincing them of its ability to satisfy their needs or wants.

MARKETING

IS THE ACTIVITY, SET OF INSTITUTIONS, AND PROCESSES FOR CREATING, COMMUNICATING, DELIVERING AND EXCHANGING OFFERINGS THAT HAVE VALUE FOR CUSTOMERS, CLIENTS, PARTNERS, AND SOCIETY AT LARGE.-AMERICAN MARKETING ASSOCIATION (AMA) REVISED 2007. ”

value

This marketing definition recognizes the important role of marketing plays in the process of creating, communicating, and delivering ______ to customers, as well as society at large

Value

the customer’s perception of all benefits of a product or service weight against all the costs of acquiring and consuming it.

Functional

performance of the product

Experiential

What it feels like to use the product.

Psychological

Feelings such as self esteem or status that result from owning a particular brand.

THE MARKETING MIX

Marketing facilitates the exchange process and the development of relationships by carefully examining the needs and wants of consumers, developing a product or service that satisfies these needs, offering it at a certain price, making it available through a particular place or channel of distribution, and developing a program of promotion or communication to create awareness and interest.

1980s

companies began to take broader perspective of marketing communication, recognizing the need of strategic integration of their promotional tools.

Integrated marketing communication

is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communications programs over time with consumers, customers, prospects, employees, associates and other targeted relevant external and internal audiences.

short term financial returns

The goal is to generate both _____ and build long-term brand and shareholder value.

1. They understand the value of ….

REASONS FOR GROWING IMC:
_______strategically integrating the various communications functions

2. Companies can avoid…..

REASONS FOR GROWING IMC:
____duplication

3. Companies can take….

REASONS FOR GROWING IMC:
_______advantage of synergy among promotional tools

4. Companies can develop….

REASONS FOR GROWING IMC:
_______more efficient and effective marketing communication programs

5. One of the easiest….

REASONS FOR GROWING IMC:
_____ways for a company to maximize the return on its investment

THE ROLE OF IMC IN BRANDING

One of the major reasons for the growing importance of integrated marketing communications is it plays a major role in the process of developing and sustaining brand identity and equity.

Brand identity

is a combination of many factors, including name, logo, symbols, design, packaging, and performance of a product or service as well as the image or type of associations that come to mind when consumers think about a brand.

Encompasses the entire spectrum of consumers’ awareness, knowledge, and image of the brand as well as the company behind it.

Brand identity

relationship era

Today, marketing is now in the ____ and companies must connect with consumers based on trust, transparency, engagement, and authencitiy

in

“The future of marketing isn’t about getting people to buy your brand, but to buy ___ your brand.”

Building and maintaining brand identity and equity

require the creation of well-known brands that have favorable, strong, and unique associations in the mind of the consumer.

A successful IMC program requires marketers….

find the right combination of communication tools and techniques, define their role and the extent to which they can or should be used, and coordinate their use

Promotion

has been defined as the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea.

promotional mix

The basic tools used to accomplish an organization’s communication objectives are often referred to as the…

Advertising

defined as any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor.

non-personal component

means that advertising involves mass media (e.g., TV, radio, magazines, newspapers) that can transmit a message to large groups of individuals, often at the same time.

Advertising

It is the best-known and most widely discussed form of promotion, probably because of its pervasiveness.

It is a valuable tool for building company or brand equity because it is a powerful way to provide consumers with information as well as to influence their perceptions.

It can create favorable and unique images and associations for a brand. Especially for products or services that is hard to differentiate.

National Advertising

Classification of Advertising: Advertising to Consumer Markets

• Done by large companies on a nationwide basis or in most regions of the country.

• The goal of national advertisers are to inform or remind consumers of the company or brand and its features, benefits, advantages, or uses and to create or reinforce its image so that consumers will be predisposed to purchase it.

Retail/Local Advertising

Classification of Advertising: Advertising to Consumer Markets

• Done by retailers or local merchants to encourage consumers to shop at a specific store, use a local service or patronize a particular establishment. •\

• Emphasizes specific patronage motives such as price, hours of operation, service, atmosphere, image, or merchandise assortment.

Primary-versus Selective-Demand Advertising

Classification of Advertising: Advertising to Consumer Markets

• Primary-demand Advertising is designed to stimulate demand for the general product or entire industry.

• Selective-demand advertising focuses on creating demand for a specific company’s brand

Business-to-Business Advertising

Classification of Advertising: Advertising to Business and Professional Markets

• Targeted at individuals who buy or influence the purchase of industrial goods or services for their companies.

• Industrial goods are products that either become a physical part of another product, are used in manufacturing other goods, or are used to help a company conduct its business

Professional Advertising

Classification of Advertising: Advertising to Business and Professional Markets

• Targeted to professionals such as doctors, lawyers, dentists, engineers, or professors to encourage them to use a company’s product in their business operations.

• It might also be used to encourage professionals to recommend or specify the use of a company’s product by end-users.

Trade Advertising

Classification of Advertising: Advertising to Business and Professional Markets

• Targeted to marketing channel members such as wholesalers, distributors, and retailers.

• The goal is to encourage channel members to stock, promote, and resell the manufacturer’s branded products to their customers

Direct Marketing

• Organizations communicate directly with target customers to generate a response and/or a transaction.

• It has become an integral part of the IMC program of many organizations and often involves separate objectives, budgets, and strategies.

• Involves a variety of activities, including database management, direct selling, telemarketing, and direct response advertising.

Direct-response advertising

where a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer.

Digital/Internet Marketing

Over the past decade or so we have been experiencing perhaps the most dynamic and revolutionary changes of an era in the history of marketing and integrated marketing communications in particular.

Interactive media

allow for a two-way flow of communication whereby users can participate in and modify the form and content of the information they receive in real time.

Social Media

Digital/Internet Marketing
______-refers to online means of communication and interactions among people that are used to create, share, and even exchange content such as information, insights, experiences, perspectives, and even media themselves.

Mobile Marketing

Digital/Internet Marketing
______-a promotional activity designed for delivery to cell phones, smartphones, tablets, and other handheld devices including apps, messaging, commerce, and customer relationship management

Sales Promotion

The next variable in the promotional mix is _____, which is generally defined as those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales.

Consumer-oriented sales promotion

is targeted to the ultimate user of a product or service.

Trade-oriented sales promotion

is targeted toward marketing intermediaries such as wholesalers, distributors, and retailers.

Publicity

refers to non-personal communications regarding an organization, product, service, or idea under identified sponsorship. not directly paid for or run

• This includes press releases, press conferences, feature articles, photographs, films, and video news releases

Credibility

An advantage of publicity over other forms of promotions is its _______.

Public Relations

When an organization systematically plans and distributes information in an attempt to control and manage its image and the nature of the publicity it receives, it is really engaging in a function known as public relations.

Personal Selling

A form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase.

Personal Selling

• Involves direct contact between buyer and seller, either face-to-face or through some form of telecommunications, the company’s product or service or to act on an idea.
• Involves more immediate and precise feedback because the impact of the sales presentation can generally be assessed from the customer’s reaction

IMC INVOLVES AUDIENCE CONTACTS

Many companies are taking an audience contact or touch point perspective in developing their IMC programs whereby they consider all the potential ways of reaching their target audience and presenting the company or brand in a favorable manner.

touch point

refers to each and every opportunity the customer has to see or hear about the company and/or its brands or have an encounter or experience with it.

Company-created touch points

Four basic categories of contact or touch points:
_____- are planned marketing communication messages created by the company such as advertisements, websites and social media sites, news/press releases, packaging, brochures and collateral material, sale promotions, and point-of-purchase displays along with other types of in store décor.

Intrinsic touch points

Four basic categories of contact or touch points:
____- are interactions that occur with a company or brand during the process of buying or using the product or service such as discussions with retail sales personnel or customer service representatives.

Unexpected touch points

Four basic categories of contact or touch points:
____- are unanticipated references or information about a company or brand that a customer or prospect receives that is beyond the control of the organization.

Customer-initiated touch points

Four basic categories of contact or touch points:

_____- are interactions that occur whenever a customer or prospect contacts a company.

Paid Media

refers to channels a marketer pays to leverage and includes traditional advertising media such as television, radio, print, outdoor, and direct mail as well as various forms of digital advertising such as paid search and online display and video ads.

Owned Media

refers to channels of marketing communication that a company controls, such as its websites, blogs, and mobile apps as well as social media channels such as Facebook, Twitter (X), Instagram, and YouTube.

Earned Media

is exposure for a company or brand that it did not have to pay for and is generated by outside entities such as the media or the general public.

Agree

SUMMARY: Advertising and other forms of promotion are an integral part of the marketing process in most organizations. Over the past decade, the amount of money spent on advertising, sales promotion, direct marketing, and other forms of marketing communication has increased tremendously, both in the United States and in foreign markets. There has been a very large increase in the amount of monies spent on digital advertising done through the Internet as well as various forms of nontraditional media, some of which did not exist at the beginning of the new millennium, such as social media.

Elements of the Promotional Mix

1. Advertising

2. Direct marketing

3. Digital / internet marketing

4. Sales Promotion

5. Publicity / Public Relations

6. Personal Selling