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Chapter One

The World of Integrated Marketing Communications

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Chapter Objectives

Identify the need for integrated marketing communications (IMC). Understand the definition, characteristics, and development levels of IMC. Comprehend the trends that paved the way to IMC. Distinguish the approaches to planning IMC. Appreciate the comprehensiveness of Strategic Marketing Communications.

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Operating in a World of Unity and Diversity


Figure 1-1 The New Marketing Cycle Unity
The brand

Diversity
The marketplace

The role of IMC

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

IMC in Action: J&J ACUVUE


Figure 1-2

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Definition of IMC

Integrated Marketing Communications A concept that recognizes the added value in a program that integrates a variety of strategic disciplinesfor example, general advertising, direct response, sales promotion, and public relationsand combines these disciplines to provide clarity, consistency, and maximum communication impact.

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Definition of IMC: Part 2

Professor Don Schultz, the founding father of IMC: IMC is the process of managing all sources of information about a product/service to which a customer or prospect is exposed, which behaviorally moves the consumer toward a sale and maintains customer loyalty.
2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Characteristics of an IMC Campaign

Campaign continuity: all messages are interrelated.


Physical continuity: consistent use of creative elements. Psychological continuity: consistent attitude toward the firm and its brands.

Strategic orientation: designed to achieve strategic company goals .

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

A Developmental View of IMC

Seven levels of IMC development:

Awareness of the need for integration


- Most rudimentary form of IMC

Image integration
- Message/media consistency

Functional integration
- Marketing communications programs as a function of marketing goals

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

A Developmental View of IMC

Seven levels of IMC development (cont):


Coordinated integration
- Personal selling

Consumer-based integration
- Effective positioning

Stakeholder-based integration
- Widening the stakeholder group

Relationship-management integration
- Management strategies within each functional unit

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Trends that Paved the Way to IMC

Decrease in message credibility Clutter: the enormity of message bombardment Decrease of cost in database marketing

Advent in computer technology and mailing-list organizations.

Increase of cost and decrease in effectiveness of massmedia communications

Cost-conscious marketers seeking aggressive and effective marketing communications campaigns

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Trends that Paved the Way to IMC II


Increase in mergers and acquisitions of marketing communications agencies

Meeting clients needs for comprehensive marketing communications services

Increase in media and audience fragmentation

The need to identify the media habits of target consumers as a means to place effective and messages in specialized and nontraditional media

Increase in parity or me-too products

Share of voice as an effective means to achieve returns and market share

Shift of information technology

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Approaches to Planning IMC

Mandated one-look approach Theme-lines or matchbooks approach Supply-side planning approach Ad hoc approach Consumer-based approach Moore and Thorson IMC model

Schultz, Tannenbaum, and Lauterborn IMC model

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Mandated One-Look Approach

Common look method Common colors, graphics, and logo treatments in all forms of marketing communications Major shortcoming: No strategic focus; thus IMC decisions cannot be made effectively.

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Theme-Lines or Matchbook Approach

An attempt to coordinate all supporting forms of marketing communications around an advertising theme. Goal: to use non-advertising forms of marketing communications to trigger consumers to remember the advertising message. Shortcoming: necessary but not sufficient and no strategic focus.

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Supply-Side Planning Approach

A system of marketing communications services that has the appearance of integration. Pro: the price of the package deal. Shortcomings

The package deal may not fit the exact needs of the business client. In reality the bargain may not provide true integrated value.

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Ad Hoc Approach

An attempt to integrate the disparate elements of their marketing communications programs by arranging meetings with all the interested parties. Shortcoming

Inefficiency: no underlying model or plan to guide the integration efforts. Outcome highly influenced by group dynamics.

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Moore and Thorson IMC Model


ID the market. Segment the market. ID the message and communication vehicles. Allocate resources. Evaluate effectiveness.

Five Steps:

Shortcoming: lack of linkage between corporate decisions and those made on the marketing and marketing communications levels.
2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Schultz, Tannenbuam, Lautherborn IMC Model

IMC as a sequence of marketing communications planning activities:

Database development
Segmentation Contact management Communications strategy Marketing objectives Marketing Tools Marketing Communications Tactics

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Schultz and Colleagues IMC Model


Database Development

Gathering and assembling information (demographics, psychographics, purchase history, and category networks) about the product users (consumers).

Segmentation

Basic and long-lived marketing process in which consumers are divided into subsegments that group around certain homogeneous similarities; breaking the market into the segments of loyal users, competitive users, and swing users.

Contact Management

Determination of the time, place, or situation in which to communicate to the customer or prospect.

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Schultz and Colleagues IMC Model


Communications Strategy

Determination of what main points the consumer should take away from the communications and what action the consumer should take as a result of the communications. Message has to induce some overt behavior and this behavior is captured and measured in relation to marketing objectives. Marketing objectives stated in relation to selected target markets (loyal customers, competitive users, and swing users). Elements of the marketing mix (product, price, place, and promotion) used as marketing communications tools to implement the communications strategy and achieve the stated marketing objective.

Marketing Objectives

Marketing Tools

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Schultz and Colleagues IMC Model


Marketing Communication Tactics

Tactics such as advertising, direct marketing, sales promotion, public relations, and event marketing used to implement the communications strategy and achieve the marketing objective

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Schultz and Colleagues IMC Model

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Schultz and Colleagues IMC Model

Using IMC to implement the


most effective communications strategy

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Schultz and Colleagues IMC Model

The Schultz, Tannenbaum, and Lauterborn model lacks in three areas:

(1) Not dealing with budgeting issues. (2) Not dealing with issues of monitoring and control. (3) Working with a model that involves a narrow and highly select use of concepts not yet fully grounded in the marketing communications, marketing, and business strategy literature.

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

A Logical Extension: SMC


From integrated marketing communications to strategic marketing communications (SMC)

Definition of SMC: A systematic approach that guides the marketing communications manager to fully integrate strategies and objectives at the corporate and marketing organizational levels with all elements of the marketing communications campaign at the planning, execution, and monitoring stages.
2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

Final Thought

The multitude which does not reduce itself to unity is confusion.

- Blaise Pascal (1623-1662)

2007 Thomson, a part of Thomson Corporation. Thomson, the Star logo, and Atomic Dog are trademarks used herein under license. All rights reserved.

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