2-1 copyright 2012 mcgraw-hill australia pty ltd powerpoint slides t/a advertising and promotion 2e...

2-1Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell

Chapter 2

Integrated marketing communication: how marketing communication evolved


1. To review the concept of marketing, examining how marketing communications has changed.

2. To introduce and define the concept of integrated marketing communication (IMC).

3. To examine reasons for the increasing importance of IMC.

4. To explore the concept of integration, its different types and the necessity of integrating the whole organisation, not just the marketing communication tools.

5. To examine how IMC has been implemented and the typical barriers to implementation.

Learning objectives


Tools

Marketing evolution

IMC as a discipline

Integration

Relationships and value

Marketing mix

Advertising

Direct marketing

InteractiveIMC

Evolution

Sales promotion

PR

Sponsorship

Personal selling

Implementation

Definition & direction

Importance of IMC

Barriers

TypesIntegrating the

organisation


Air New Zealand Nothing to hide campaign


Campaign objectives were to : hold Air New Zealand’s market share leverage the campaign for retail promotional

sales convey that Air NZ airfare was all-inclusive—

unlike the competition build on the airline’s leadership and innovation

credentials lift Air NZ brand profile in offshore markets,

primarily through unpaid media.

Air New Zealand Nothing to hide campaign (cont.)


Tools

Marketing evolution

IMC as a discipline

Integration


Marketing mix

Advertising

Direct marketing

InteractiveIMC

Evolution

Sales promotion

PR

Sponsorship

Personal selling

Implementation


Importance of IMC

Barriers


organisation


Marketing: where IMC begins

Revised definition of marketing

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients and society at large.

Revised definition of marketing


Traditional definition

Marketing is the process of conception, pricing, promotion and distribution of goods, services and ideas.

Traditional definition

Marketing is the process of conception, pricing, promotion and distribution of goods, services and ideas.


Marketing: where IMC begins (cont.)


AMA, 2007


AMA, 2007 RelationshipsRelationships

Value co-creationValue co-creation

Social impact Social impact

ExchangeExchange



ValueValue = Benefits Benefits CostsCostsMinus

Value refers to the customer’s perception of all the benefits of a product or service weighed against the costs of acquiring and consuming it.


Relationship marketing

Relationship marketing involves creating, maintaining and enhancing long term relationships with consumers, as well as other stakeholders for mutual benefit.


Factors driving shift to relationship marketing

Desire for superior value

Desire for superior value



Flexible manufacturing

processes

Flexible manufacturing

processesAdvances in ITAdvances in IT

Demanding customers Demanding customers


Value co-creation


Value co-creation (cont.)


The marketing mix

Customer needs

Customer needs

PricePrice

PromotionPromotionPlace(distribution)

Place(distribution)

ProductProduct


Expanded marketing mix

Customer needs

Customer needs

ProductProduct PricePrice

Place(distribution)

Place(distribution) PromotionPromotion

ProcessesProcessesPeoplePeople

PhysicalevidencePhysicalevidence


IMC and the marketing mix


Tools

Marketing evolution

IMC as a discipline

Integration


Marketing mix

Advertising

Direct marketing

InteractiveIMC

Evolution

Sales promotion

PR

Sponsorship

Personal selling

Implementation


Importance of IMC

Barriers


organisation


Evolution of IMC Companies relied primarily on advertising

agencies for guidance.

This led to the dominance of advertising with other marketing communication elements added on as an auxiliary or afterthought.

Many marketers built barriers around promotional functions.

Recognising the need to integrate all elements of the communication mix, marketers developed the concept of IMC to present a consistent image.


Fragmented approach to marketing communication

Point ofpurchase

Publicity

Publicrelations Direct

marketing

Specialevents

Packaging

Salespromotion

MediaAdver-tising

Interactivemarketing

Directresponse


Coordinated IMC approach

Point ofpurchase

Publicity

Interactivemarketing

Publicrelations

Directmarketing

Specialevents

PackagingSales

promotion

Directresponse

Mediaadvertising


Consumer evolution

Many market-related factors have contributed to the rise of IMC, including:

demographics

lifestyles

media usage

purchasing habits


Axe Wake up campaign


Agency evolution

Many industry factors contributed to the rise of IMC, including:

increasing professionalism of sales promotion, direct marketing and PR competition between advertising agencies and specialist communications service providers clients expectations that agencies offer a broader range of services marketers redefining their activities in a more strategic and coordinated manner consumer’s perceptions of brands as a synthesis of the bundle of messages received or contact points with a brand.


IMC defined

A concept of marketing communications planning that recognises the added value of a comprehensive plan that evaluates the strategic roles of a variety of communicationdisciplines—for example, general advertising, direct response, sales promotion, and public relations—and combines these disciplines to provide clarity, consistency, and maximum communications impact.

American Association of Advertising Agencies (4As)

A concept of marketing communications planning that recognises the added value of a comprehensive plan that evaluates the strategic roles of a variety of communicationdisciplines—for example, general advertising, direct response, sales promotion, and public relations—and combines these disciplines to provide clarity, consistency, and maximum communications impact.

American Association of Advertising Agencies (4As)


IMC defined

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. The goal is to generate both short-term financial returns and build long-term brand and shareholder value.

Don Schultz, North Western University

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. The goal is to generate both short-term financial returns and build long-term brand and shareholder value.

Don Schultz, North Western University


A contemporary perspective of IMC

IMCIMC

Recognised as a strategic business processRecognised as a strategic business process

Multiple relevant audiencesMultiple relevant audiences

Demand for accountability & measurement of outcomes

Demand for accountability & measurement of outcomes


My type of IMC


Reasons for the growing importance of IMC

Limited internet availabilityLimited internet availability Widespread internet availabilityWidespread internet availability

Marketer-control over information

Marketer-control over information

Consumer demand for timely information and entertainment

Consumer demand for timely information and entertainment

Media advertisingMedia advertising Multiple forms of communicationMultiple forms of communication

Mass mediaMass media Specialised mediaSpecialised media

Manufacturer dominanceManufacturer dominance Retailer dominanceRetailer dominance

General focusGeneral focus Database marketingDatabase marketing

Low agency accountabilityLow agency accountability Greater agency accountabilityGreater agency accountability

From Toward


Tools

Marketing evolution

IMC as a discipline

Integration


Marketing mix

Advertising

Direct marketing

InteractiveIMC

Evolution

Sales promotion

PR

Sponsorship

Personal selling

Implementation


Importance of IMC

Barriers


organisation


Integration

Integration is a management process that can be both a functional task of coordination, as well as a strategic tool.

Message(tactical)

Message(tactical)

Types of

integration

Types of

integration

StrategicStrategic


Types of integration


Integration continuum

At one end of the continuum, audiences receive mixed or incorrect messages (dysfunction). At the other end, the combined effect of all messages adds value (synergy).

DysfunctionDysfunction SynergySynergy

????


Message integration

Message integration is about verbal and visual consistency.

Achieving message

integration

Achieving message

integration

LogoLogoColourColour

Theme lineTheme line Message consistency

Message consistency

Common toneCommon tone Shared consistency

Shared consistency


Strategic integration

Strategic integration brings together all the elements of the IMC mix.

Achieving strategic

integration

Achieving strategic

integration

Corporate mission

Corporate mission

Common objectives

Common objectives

Multiple communications

disciplines

Multiple communications

disciplines

Shared budget

Shared budget

Strong leadership

Strong leadership

Cross-functional teams

Cross-functional teams

Multiple audiences

Multiple audiences

CoordinationCoordination


IMC integration


Tools

Marketing evolution

IMC as a discipline

Integration


Marketing mix

Advertising

Direct marketing

InteractiveIMC

Evolution

Sales promotion

PR

Sponsorship

Personal selling

Implementation


Importance of IMC

Barriers


organisation


IMC implementation


IMC practices


Barriers to implementation

Absence of measurement tools

Absence of measurement tools

Lack of database development

Lack of database development

Multiple agenciesMultiple agenciesOrganisational

barriersOrganisational

barriers

“Silo” structures “Silo” structures “Turf” battles “Turf” battles

Lack of expertise Lack of expertise


Tools

Marketing evolution

IMC as a discipline

Integration


Marketing mix

Advertising

Direct marketing

InteractiveIMC

Evolution

Sales promotion

PR

Sponsorship

Personal selling

Implementation


Importance of IMC

Barriers


organisation


IMC audience contact tools

Target audienceTarget audience

Broadcast media

(TV/radio)

Broadcast media

(TV/radio)

Print media (newspapers, magazines)

Print media (newspapers, magazines)

Public relations/publicity

Public relations/publicity

Internet/interactive

Internet/interactive

Directmarketing

Directmarketing

Sales promotion

Sales promotion

Product placements

Product placements Events and

sponsorship

Events and sponsorshipWord-of-mouthWord-of-mouth

POP(displays,

packaging)

POP(displays,

packaging)

Personal selling

Personal selling

Out-of-home media

Out-of-home media


Summary and conclusions Marketing activities involve combining the

four controllable elements of the marketing mix into a comprehensive program.

IMC involves combining the elements of the promotional mix in an integrated manner.

Integrating IMC involves both tactical and strategic integration.

IMC tools include: advertising, sales promotion, public relations, sponsorship, personal selling and other relevant communications activities.

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