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Copyright © 2012 McGraw-Hill Companies, Inc., All right reversedMcGraw-Hill/Irwin

An Introduction to IntegratedMarketing Communications

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Gatorade Case History

• In 1965 football coach of Gators met with medical researchers

• Players’ electrolytes and carbs not being replenished

• Gatorade created to address these needs

• Official sports drink of NFL, MLB, NHL, NBA

• High profile endorsers Michael Jordan / Serena Williams

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Gatorade Case History - continued

• In 2008, economy crashed• Gatorade sales declined due to new

products launched• Energy bars / vitamin waters / protein powders

• Consumers had more sports nutrition choices

• Gatorade losing relevance among target audience

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Gatorade Case History - continued

• In 2010, launched G Series product line

(drinks, chews, shakes, powders and bars)

• Major social media push(along with sponsorships,

advertising and IMC)

• Sales grew 9% in 2012 and retains leadership position

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Gatorade IMC Strategy

Integrated Marketing Strategy

Traditional MassMedia

Social Media

Sponsor-ships

Point-of-Sale

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Change in Media Landscape

• Past: only mass media

• Today: Fragmented and Targeted• Average HH has over 130 TV channels;

DVD’s /Video-On-Demand

• Internet ads/social media/mobile marketing

• Consumers in control of their content

• Need for well planned/executed Integrated Marketing Communications

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What is Marketing?

• A process of

• planning and executing

• the conception, pricing, promotion and distribution

• of ideas, goods and services

• to create exchanges that satisfy individual / organizational objectives

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Other Marketing Concepts

• Marketing Exchange• Two or more parties with something of

value• Desire to give up that something• Way to communicate with each other• Not all exchanges are money: nonprofit

donations for goodwill

• Relationship Marketing• More than one time sale

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What is Value?

• Benefits of aproduct vs. costs of

acquiring it

• Benefits can be functional/experiential/ psychological

• Costs are $ paid/learning how to use it/ maintaining it

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The Marketing Mix

• The Four Ps• Product• Price• Place• Promotion

• How to combine elements for an effective marketing program

• Good advertising doesn’t replace poor product / priced improperly /

can’t find it in stores

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Integrated Marketing Communications

• Concept of planning

• Recognizes added value of a comprehensive plan

• That combines a variety of communication disciplines• Advertising/sales promotion/publicity

• To provide clarity, consistency and maximum communications impact

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Contemporary IMC Approach

Point ofpurchase

Publicity

Digital –Internet

Marketing

Publicrelations

Directmarketing

Specialevents

PackagingSales

promotionDirect

response

Massmedia

advertising

• By coordinating marketing communication efforts:

• Avoid duplication

• Increase synergy

• More efficient and effective programs

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Test Your Knowledge

Why are marketers decreasing the use of mass media advertising and increasing the use of integrated marketing communications?

A) The mass market has become fragmented B) New technologies gave consumers greater

control over the communication process C) Use of the Internet and electronic commerce

is growing D) Explosive growth in social networking E) All of the above

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What is Brand Identity?

BrandIdentity

Image orAssociations Performance

Name Packaging

Logo Design

Symbols

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Class Exercise

In the next ONE MINUTE:

-Write down as many brands, in any category, that you can think of

GO!

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World’s Top 10 Brands

• Apple• Google• Coca-Cola• IBM• Microsoft• General Electric• McDonald's• Samsung• Intel• Toyota

Source: Interbrand’s Best Global Brands 2013

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What is Promotion?

• The coordination

• of all seller initiated efforts

• to set up channels of information and persuasion

• in order to sell goods or services

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The Promotional Mix

Digital/ Internet

Marketing

Digital/ Internet

MarketingAdvertisingAdvertising Direct

Marketing

Direct Marketing

Personal Selling

Personal Selling

Sales Promotion

Sales Promotion

Publicity/ Public

Relations

Publicity/ Public

Relations

Basic tools used to accomplish objectives

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Advertising

• Paid, non-personal communication• About an organization/product/service • With an identified sponsor• No immediate feedback from audience• EXCEPTION: PSA (Public Service

Announcement) – space donated by media

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Advertising – continued

• Mass media• TV• Radio• Magazines• Newspapers

• Benefits of Advertising• Cost effective• Reaches large audiences

Advertising is best way to build brand image

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Advertising to Consumer Markets

National advertising

• Done on a nationwide basis or in most regions of the country

Retail/local advertising - Encourage consumers to:

• Shop at a specific store• Use a local service

• Patronize a particular establishment

Primary- versus selective-demand advertising

• Primary-demand - Stimulates demand for the general product class or entire industry

• Selective-demand - Creates demand for a specific company’s brands

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Advertising to Business / Professional Markets

• Targets individuals who buy or influence the purchase of industrial goods or services for their companies

Business-to-business advertising

• Targets professionals, encouraging them to use a company’s product in their business operations

Professional advertising

• Targets marketing channel members, encouraging them to stock, promote, and resell the manufacturer’s branded products to their customers

Trade advertising

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Leading U.S. Advertisers

• Proctor & Gamble

• General Motors

• Comcast

• AT&T

• Verizon

• Ford

• L’Oreal

• JPMorgan / Chase

• American Express

• Toyota

• Fiat / Chrysler

• Walt Disney

• Walmart

• Time Warner

• Target

• Johnson & Johnson

• Pfizer

• Bank of America

• Macy’s

• Berkshire Hathaway

• Anheuser-Busch

• Sears

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Direct Marketing

Database Management

Database Management

TelemarketingTelemarketing

Direct MailDirect Mail

Shopping ChannelsShopping Channels

CatalogsCatalogs

InternetSalesInternetSales

Direct SellingDirect Selling

Direct Response Ads

Direct Response Ads

Organizations communicate directly with customers to generate response/sale

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Direct Response Advertising

• Encourages consumers to purchase directly from the manufacturer

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Direct Response Advertising - continued

Media Used

Direct Mail

Television

Magazines

Internet

Reason for Growth

Changing Lifestyles

Credit Cards

Toll-free Numbers

Rapid Internet Growth

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Digital/Internet Marketing

Interactive media

• Allow users to participate in and modify the content of the information they receive in real time

Social media

• Online means of communication and interactions used to create, share, and exchange content

Mobile marketing

• Messages delivered are specific to a consumer’s location or consumption situation

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Advantages of Digital/Internet Marketing

Interactive nature

Capability to precisely measure the effects of advertising and other forms

of promotion

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Sales Promotion

Marketing activities that provideextra value or incentives to the…

Sales Force

Retailers

Ultimate Consumer

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Consumer vs. Trade Promotions

Consumer-oriented

Trade-oriented

Couponing, sampling, premiums, rebates, contests, sweepstakes, POP

materials

Wholesalers, distributors, retailers

Encourages immediate purchases

Promotional/merchandising allowances, price deals, sales

contests, trade shows

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Sales Promotion

• Increased emphasis due to:

• Declining brand loyalty

• Increased consumer sensitivity to promotional deals

• Retailers’ demand for more trade promotion support from companies

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Publicity

Advantages:

High credibility and low cost

Advantages:

High credibility and low cost

Tools:

News release; feature articles;

press conference

Tools:

News release; feature articles;

press conference

Disadvantages:

Is sometimes unfavorable;

Not always under company control

Disadvantages:

Is sometimes unfavorable;

Not always under company control

A news story, editorial, or

announcement to a mass audience

A news story, editorial, or

announcement to a mass audience

Non-personal/not directly paid forby identified sponsor

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Public Relations

• Management function• Evaluates public attitudes• Identifies items of public interest• Executes a program of action to earn

public understanding and acceptance

• Primary objectives• Establish and maintain a positive image

of the company among various publics

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Public Relations

• Tools:

• Special publications• Community activities• Fund-raising events• Sponsorships• Public affairs

activities

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Personal Selling

• Person-to-person communication• Face to face or telephone sales• Persuade target to make a purchase• Provides immediate feedback to tailor

message

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IMC Audience Contact Tools

Determine which tools most effective in reaching target

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Touch Points: Control vs. Impact

Every opportunity consumer sees/hears/experiences

product

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IMC Planning Model

Promotional program situation analysis

Analysis of the communications process

Budget determination

Develop integrated marketing communications programs

Review of marketing plan

Advertising Salespromotion

PR/publicity

Personalselling

Directmarketing

Advertisingobjectives

Salespromotionobjectives

PR/publicityobjectives

Personalsellingobjectives

Directmarketingobjectives

Messagestrategy

Salespromotionstrategy

PR/publicitystrategy

Personalsellingstrategy

Directmarketingstrategy

Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program

Internet/interactive

Internet/interactiveobjectives

Internet/interactivestrategy

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Elements of a Marketing Plan

Detailed situation analysis

Marketing strategy and program

Specific marketing objectives

Program for implementing the strategy

Process for monitoring & evaluating performance

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Promotional Program Situational Analysis

Internal

Firm’s promotional organization/capabilities

Review of previous programs and results

Assess firm/brand image

Assess strengths and weaknesses of product or service

External

Customer analysis

Competitive analysis

Environmental analysis

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Types of Objectives

• Marketing Objectives• What is to be accomplished by marketing

programs• Stated in terms of sales, market share,

profitability

• Communication Objectives• What is the nature of message to be

communicated• Creating awareness/image/favorable

attitude/knowledge about product and it’s benefits

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Budget Determination

• What will the promotional program cost?• How will the money be allocated?

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Developing the IMC Program

IMC Strategies

Creative Media

Basic appeal/message

Which communication channel to

use

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Monitoring, Evaluation, Control

Basic Goals

Determine how well the programis doing, and why

Problem correction

Continual management feedback

Input for future promotions/strategies