brought to you in association with integrated marketing communications

Brought to you in association with

Integrated Marketing Communications


What is IMC?

A new buzzword?A new pitch for clients?A new spin on the same old plan?OR: A whole new approach that involves all aspects of a company’s business?


Brief history

B-to-b agencies have traditionally been doing more IMC-oriented efforts than consumer.IMC is an evolutionary step in b-to-b marketingNew tools are fueling interest in IMC as marketers realize they are just that: tools


How widespread is IMC?

According to our OutFront study:57.5% of companies DO NOT have an IMC programOf the 39.1% that do, the leading companies are computer companies82.1% of computer software companies say they have an IMC program in place


How widespread is IMC?

In the manufacturing sector:29.2% of all companies in this area have an IMC programThe category with the lowest IMC penetration is furniture & fixtures at 4.9%Highest is computer hardware at 60.2%, followed by instrument & related products, 59.4%


What are marketers spending?

In Business Marketing’s OutFront survey, we found that:

B-to-b marcomm spending: $73 billionOverall spending was up 14.5%Online spending grew 143%On average, companies devoted 1.2% of total annual sales to b-to-b marcomm


Breaking it down

Advertising: $17.7BSales Promo. : $13.6BTrade shows: $12.6BSales force management: $8B*

*excludes compensation & commission

Direct mktg.: $5.7B Online: $4.2B Market rsrch.: $3B Premiums/incentives: $2.7B


How has interactive affected marketing methods?

What have marketers learned so far?

Interactive and IMC


Browsers=Mosaic, Cello Only a couple hundred .com Web sites 9600 modems Moving to 14.4

1994 – The Internet


AOL Amazon.com 14.4 modems

How to make money from consumers?

Search engines Netiquette Build me a web site!



Surfing is dead Failed models Stalled IPO’s Where’s the money?



Firms see Web’s unique advantage Real revenue and ROI Have made initial commitment: The CEO/CFO listens! E-commerce is exploding

1994 – B to B makes its mark


Marketers develop Internet’s unique potential for reaching customers

They’re abandoning its copycat uses

1999 – Real Maturation


Cisco Systems $ 3 million / day

Dell Computer $ 2 million / day

GE Information Systems $ 4 billion / year

Grainger $ 35 million / year

The sales reality


Marshall Industries www.marshall.com Cisco Systems www.cisco.com Bay Networks www.baynetworks.com Dell Computer www.dell.com Compaq Computer www.compaq.com Federal Express www.fedex.com IBM www.ibm.com W.W. Grainger www.grainger.com 3Com Corp. www.3com.com First Union www.firstunion.com

The 1998 Top Ten


November 1997

Dell Web revenues: $2 million a day

Cisco: 26% of its business online

August 2000

Dell Web revenues: $5 million+ a day

Cisco: 57% of its business online

NM200 – Then and Now


The NM Top 10 are shifting from an order-taker mentality to a customer-centric focus.

B-to-b Web sites are moving from a marketing and transaction focus to knowledge management and customer service.

What’s changed


60% accept orders and payments Up from 46% in our first survey

86% use their sites to distribute product Up from 78%

96% for customer service and support Down from 100%

A look at the Top 50


88% distribute e-mail notices/newsletters

71% are part of intranet or extranet Up from 42%

76% use their Web sites to recruit staff



Other findings:

These sites have undergone anywhere from 0 to 9 redesigns.

Web staff sizes range from 1 to 125.

Cisco has been doing Web marketing the longest, with more than 5 years of experience.

Average site age: 31 months



The leading Web marketers are moving quickly as the Net hits its third phase as a business tool.

Phase 1: Technophiles pester boss until they get the go-ahead to build a Web site.

Phase 2: Marketing wrestles control of Web site from IT. Site is digital replica of marketing department. Most companies still here.

What we learned


Sites are making the shift from vertical to horizontal Instead of being vertical slices down the marketing

stovepipe, smart companies are transforming their Web sites into horizontal cross-sections of their entire business operation.

Marketing shouldn’t lose control, but rather should lead this enterprise-wide transition to a customer-centric focus.

Phase 3: The move to IMC


Offline marketing is a passive medium that tells customers what the brand is

Online marketing is an interactive medium that allows customers to experience the brand

IMC Online


Fed Ex: Allows customers to track their packages on its Web site

Dell: The Configurator lets users build their own computer system

MasterCard: Extends its offline “priceless” campaign to an online Seal of Approval for e-commerce sites to continue its trust/security message

IMC Online


As the stakes become larger, more companies will be turning to marketing to sell their goods and services

Interactive is a powerful tool when used well, but it is just one more tool

Marketing will continue to tie together all the tools in its arsenal through well-organized IMC programs

The Future


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brought to you in association with integrated marketing communications

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