Chapter 01 IMC Notes
Chapter 01 IMC Notes
Chapter 01 IMC Notes
COMMUNICATIONS
Chapter Objectives
Appreciate the practice of marketing communications and recognize the marcom tools
used by practitioners.
Describe the philosophy and practice of integrated marketing communications (IMC).
Understand the fie key features of IMC.
!ecognize the actiities inoled in deeloping an integrated communications program.
Identify obstacles to implementing an IMC program.
Understand and appreciate the components contained in an integratie model of the
marcom decision"making process.
Chapter Overview
#his chapter discusses the nature of marketing communications$ particularly at the brand leel.
%hereas the &'() characterization has led to *idespread use of the term &promotion) for
describing communications *ith prospects and customers$ the term marketing communications
(marcom) is preferred by most practitioners and educators$ and it is used to refer to the
collection of adertising$ sales promotion$ public relations$ eent marketing$ and other
communication deices+ comparatiely$ the term promotions is used to refer to sales promotions.
Integrated marketing communications (IMC) is the philosophy and practice of carefully
coordinating a brand,s sundry marketing communication elements$ and fie key features of IMC
are discussed- (.) start *ith the customer or prospect+ (/) use any form of releant contact or
touch point+ (0) speak *ith a single oice+ (') build relationships+ and (1) affect behaior.
Changes in marcom practices as *ell as obstacles to implementing IMC are gien.
#he latter portion of the chapter describes a model of the marketing communications decision"
making process. #he model includes fundamental decisions (i.e.$ targeting$ positioning$ setting
ob2ecties$ and budgeting)$ implementation decisions (i.e.$ mi3ing elements$ creating messages$
selecting media$ and establishing momentum)$ e3pected outcomes (i.e.$ enhancing brand e4uity
and affecting behaior)$ and program ealuation.
#he chapter appendi3 proides information on important U.5. trade associations in the marketing
communications field.
Chapter 2 Chapter 1
Appealing to Youth and Reinvigorating a Brand Image: State Farms nowwhat!com
Campaign
!esearch sho*ed that 5tate 6arm$ the largest insurer of homes and automobiles in the U5.$ *as
considered a brand for older consumers *ith limited appeal to .7"to"/1"year"olds. 8o* could the
5tate 6arm brand name be reinigorated to appeal to this youthful
age group9 #hough the brand *as *ell respected among this group$ they considered the brand
irreleant for their financial needs. #he solution- 5tate 6arm and its adertising agency deised
an integrated marketing communication program$ called the :o* %hat9 Campaign. In the
multipronged campaign *ere #; and print adertisements$ direct
mail pieces$ a dedicated %eb site$ and a kickoff eent at the <ollapalooza music festial in
Chicago. #he ads engaged consumers *ho before considered the product irreleant. #he
campaign,s success is attributed to the fact that the arious adertising messages did not attempt
to oersell$ but instead captured attention *ith humorous$ slice"of"life e3ecutions that heighten
curiosity and gie young consumers a good reason to seek additional information from the
no**hat.com %eb site.
Creating a "epsi Commercial in China
#o reach China,s Internet"say youth and to engage their interest in (epsi$ the (epsi Creatie
Challenge contest *as created. Consumers *ere inited to deelop a #; spot
that *ould star =ay Cho* (also spelled Chou)$ a superstar throughout Asia. Contest entrants
submitted scripts for a commercial$ and other consumers logged on to a %eb site then read and
scored the scripts. #he best ideas from highest"scoring entries *ere chosen and .1 finalists *ere
identified. #hese scripts *ere posted online$ and consumers oted for the best script. #he *inner
receied >./$1?? and an opportunity to participate in the production of the commercial. More
than /@$??? commercial scripts *ere submitted. A (epsi A3ec said &#he reason *hy digital
interactie marketing campaigns like the (epsi Creatie Challenge *ork is that they add alue by
creating a mechanism for consumers to get inoled.) Bf course$ &getting inoled) is simply
another *ay of saying that consumers, control oer adertising content is increasing.
#he $aundr% &anger as an Advertising #ouch "oint
!eaching large numbers of men *ith adertising messages is often difficult. 8anger :et*ork
arranges *ith laundry"supply firms to make and distribute laundry hangers carrying adertising
messages for distribution in dry cleaners in the U5. Mitchum deodorant used hangers as part of a
multimedia campaign for its ne* brand of men,s deodorant. In a pretest of the hanger ads in t*o
cities the brand e3perienced double"digit gro*th in consumer brand a*areness and purchase
intentions. 8anger :et*ork,s ads hae been used in appro3imately '? percent of the /1$??? dry
cleaning outlets in the United 5tates.
MKTG 6220
IMC
Summer 2014
Focus: Chapter 1: Overview of Integrated Marketing Communications
Elements of marketing communications
Tools:
-Personal selling: Use of sales reps;
-Advertising;
-Sales promotions; includes point-of-purchase communications (buy one get one free, rebates)
-Events sponsorship (Sponsorship marketing): Similar to celebrity endorsement
-Public relations; includes publicity, which relates to develop relations with media to provide
information on company/brand
-Packaging: usually contains information and features that infuence consumer decisions;
-Internet: new media such as Facebook, MySpace, Youtube
-See also Table 1.1 (Slide 4 in the PowerPoint notes)
(Diferentiate b/w tools and tactics)
Tools: Advertising, sales promotions
Tactic: A specifc thing u do. e.g. sponsorship in events.1/2 page or full page ad in Business
Standard, 15% discount
Integrated Marketing Communications (IMC):
Defnition:
-Is a communications process for planning, creation, integration, and implementation of diverse
forms of marcom delivered to a brands targeted customers and prospects;
-Has as its goal infuencing or afecting behavior of targeted audience.
A beneft? Synergy, that is, the integration of multiple communication tools and media yield more
positive communication results than the tools used individually. One result is non-duplication of
eforts; hence the brand saves money on IMC.
Five Key Features of IMC: (MCQ and ESSAYS) important
1. Start with the customer or prospect: Individual consumer or business consumer must represent
the starting point for all MarCom activities.
-Consumers in control
-Reduced dependence on mass media
2. Use any form of relevant contact/touch point . Website is a contact point.(for example, all kinds of
advertising media, including novel media; various touch points, e.g., foor of a supermarket or cofee
sleeves; also some brands have, for example, had consumers shave information on their heads).
-360-degree branding: a brands touch point should be everywhere the target audience is
-Not all touch points are equally engaging
3. Achieve synergy (multiple messages must speak with a single voice).
4. Build relationships (What are some ways in which brands build relationships with you?)
-Loyalty programs
-Experiential marketing programs (retailtainment- idea where the retail space becomes a
place where u can entertain consumers; building brand experiences)
5. Afect behavior (ultimately, you want consumers to take action, for example, purchase the brand,
repurchase, become brand loyal, tell others about the brand).
Marketing Communications Decision-Making Process (article in IMC booklet) important fr exam
Brands have to make two kinds of decisions: (a) Fundamental decisions; and (b) Implementation
decisions.
Fundamental decisions:
-Positioning: how the brand wants to be perceived; image in consumers minds.
-Targeting: who the audience member is that the brand wants to reach, e.g., college students, 18-22
years, who live in Ohio.
-Setting objectives: determining what the brand wants to achieve through its IMC eforts, e.g., We
want to generate a 5% increase in market share within the next 12 months. don't confuse b/w
marketing objs and marketing communications objectives
-Budgeting: how much money will be allocated to each tool and on what basis.
All Marketing Communications Should Be: Directed to a particular target audience; clearly position
the brand; created to achieve specifc objectives; and undertaken to accomplish the objectives within
budget constraints.
Implementation decisions
-Mixing elements: using diferent tools in a coordinated manner (Ad, SP, PR, etc)
-Creating messages: what the brand wants to say/signal to consumers
-Selecting media: e.g., radio, TV, newspapers, magazines, Internet, billboards, POPs
-Establishing momentum (ensuring that IMC eforts are maintained)
The brand is seeking certain outcomes:
-Enhancing brand equity (the reputation, image, and goodwill of the brand)
-Afecting behavior (see above)
Program evaluation: The brand also needs to evaluate its IMC eforts to ensure that they are
working as expected
-Determining measures to be used to assess performance (e.g., sales, market share, visits to website)
-Providing feedback: if things are not working well
-Taking corrective action: changes made of things are not working as expected
Media category: Mode of transmission. E.g. newspapaer
Media vehicle: Specifc one under the category chosen. E.g. Business Standard.