Lecture Advertising and promotion (2/e) – Chapter 2: Integrated marketing communication

Chapter 2 - Integrated marketing communication: how marketing communication evolved. The goals of this chapter are: To review the concept of marketing, examining how marketing communications has changed; to introduce and define the concept of integrated marketing communication (IMC); to examine reasons for the increasing importance of IMC;...

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.

Learning objectives

Marketing evolution

IMC as a discipline Integration

Relationships and value

Marketing mix Advertising

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.)

Marketing evolution

IMC as a discipline Integration

Relationships and value

Marketing mix Advertising

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

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.

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.)

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

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

Value co-creation

Social impact   Social impact  

Exchange

Relationships and value

Value = Benefits Benefits     Minus Costs

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

Relationship marketing

Relationship marketing

Flexible manufacturing processes

Flexible manufacturing processes

Value co-creation

Value co-creation (cont.)

The marketing mix

Customer needs

Customer needs

Price

Promotion

Place (distribution)

Place

(distribution)

Product

Expanded marketing mix

Customer needs

Customer needs

Place (distribution)

Place

Processes People

Physical evidence

Physical evidence

IMC and the marketing mix

Marketing evolution

IMC as a discipline Integration

Relationships and value

Marketing mix Advertising

Media Adver- tising

Interactive marketing Direct response

Coordinated IMC approach

Point of

purchase

Publicit y Interactive

Public relations

Direct

n

Direct response

Media advertising

Axe Wake up campaign

 consumer’s perceptions of brands as a synthesis

of the bundle of messages received or contact points with a brand.

A contemporary perspective

of IMC

IMC

Recognised as a strategic business process

Multiple 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 availability Widespread internet availability

Media advertising Multiple forms of communication Mass media Specialised media

Manufacturer dominance Retailer dominance

General focus Database marketing

Low agency accountability Greater agency accountability

Marketing evolution

IMC as a discipline Integration

Relationships and value

Marketing mix Advertising

Strategic

Types of integration

Integration continuum

????

Message integration

Message integration is about verbal and visual

consistency.

Achieving message integration

Achieving message integration

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

Multiple communications disciplines

Shared budget

Shared budget

IMC integration

Marketing evolution

IMC as a discipline Integration

Relationships and value

Marketing mix Advertising

IMC implementation

IMC practices

Barriers to implementation

Absence of measurement tools

Absence of measurement tools Lack of database Lack of database development development

Multiple agencies

Organisational barriers

Organisational barriers

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

Lack of expertise

Lack of expertise

Marketing evolution

IMC as a discipline Integration

Relationships and value

Marketing mix Advertising

IMC audience contact tools

Target audience Target audience

Print media (newspapers, magazines)

Public relations/

publicity

Public relations/

publicity

Internet/ interactive

Internet/ interactive

Direct marketing

Direct marketing

Sales promotion

Sales promotion

Product placements

Product placements

Events and sponsorship

Events and sponsorship

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,