AN OVERVIEW OF INTEGRATED

Advertising Promotion and Other Aspects of Integrated Marketing Communications 9e Terence Shimp Craig Andrews (Solutions Manual All Chapters) 1 / 4

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

AN OVERVIEW OF INTEGRATED

MARKETING COMMUNICATIONS

Chapter Objectives

• Appreciate the practice of marketing communications and recognize the marcom tools used

by practitioners.

• Differentiate among the following terms: marketing mix, marketing, communications,

marketing communications, the promotional mix, and integrated marketing communications.

• Describe the philosophy and practice of integrated marketing communications (IMC) and the

five key features of IMC.

• Recognize the activities involved in developing an integrated communications program.
• Identify obstacles to implementing an IMC program.
• Understand and appreciate the components contained in an integrative model of the marcom

decision-making process.

Chapter Overview This chapter discusses the nature of marketing communications, particularly at the brand level.Whereas the “4P” characterization has led to widespread use of the term “promotion” for describing communications with 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 advertising, sales promotion, public relations, event marketing, and other communication devices; comparatively, 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 five key features of IMC are discussed: (1) start with the customer or prospect; (2) use any form of relevant contact or touch point; (3) speak with a single voice; (4) build relationships; and (5) affect behavior.Changes in marcom practices as well as obstacles to implementing IMC are given.

The latter portion of the chapter describes a model of the marketing communications decision- making process. The model includes fundamental decisions (i.e., targeting, positioning, setting objectives, and budgeting), implementation decisions (i.e., mixing elements, creating messages, selecting media, and establishing momentum), expected outcomes (i.e., enhancing brand equity and affecting behavior), and program evaluation.

The chapter appendix provides information on important U.S. trade associations in the marketing communications field.

Chapter 1 2 / 4

Chapter 1 © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Chapter Outline

• Introduction

All firms employ marketing communications (marcom) to one degree or another. The focus may be directed at consumers (B2C), or focused on customers of other businesses

(B2B).

II. Marketing Communications Objectives and Terminology All organizations (i.e., B2B, B2C, not-for-profit) use various forms of marketing communications to promote their offerings and achieve financial and nonfinancial goals.Companies have a variety of general objectives for their marcom programs including informing and persuading customers and inducing action from customers. The primary

forms of marketing communications include:

• traditional mass media advertising • online advertising • store signage and point-of-purchase communications • direct-mail literature • marketing-oriented public relations and publicity releases • sponsorships of events and causes • presentations by salespeople • various collateral forms of communications devices.The marketing mix includes product, price, place, and promotion. The term, communications, refers to the process whereby commonness of thought is established and meaning is shared between individuals or between organizations and individuals. Figure 1.1 illustrates this idea in a Social Media Venn Diagram. Marketing is human activity directed at satisfying needs and wants through exchange processes. Marketing communications represents the collection of all elements in an organization’s marketing mix that facilitate exchange by establishing shared meaning with its customers. All marketing mix variables can communicate with customers. Further marketing communications may be intentional or unintentional.

III. Promotional Mix Elements The promotional mix elements include advertising, public relations, sales promotion, personal selling, direct marketing, and online marketing/social media. Advertising is any paid form of non-personal communication of ideas, goods, or services by an identified sponsor. This includes traditional mass media outlets such as television, magazines, newspapers, and out-of-home. Public relations is an organizational activity involved with fostering goodwill between a company and its various publics. Sales promotion consists of all promotional activities that attempt to stimulate short-term buyer behavior. It may be directed toward the trade or toward the end consumer. Personal selling is paid, person-to- person communication in which a seller determines needs and wants of prospective buyers and attempts to persuade these buyers to purchase the company’s products or services. Direct marketing represents an interactive system of marketing which uses one or more advertising media to effect a measureable response. Direct-response advertising involves the use of any of several media to transmit messages that encourage buyers to purchase directly from the advertiser. Online marketing is the promotion of product and 3 / 4

An Overview of Integrated Marketing Communications © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.services over the Internet. Social media marketing represents marketing activities conducted using online social communities, channels and services as the venue. Figure 1.2 illustrates the promotional mix.

IV. The Primary Tools of Marketing Communications Table 1.1 provides a listing of possible marketing communication tools.

• The Integration of Marketing Communications

Mountain Dew’s marketing communications is described as an example of an integrated communications plan.

• Why Integrate?

Organizations have traditionally handled communication tools as separate, specialized practices within different units of the organization.

• IMC Practices and Synergy

IMC is worth practicing because it can create synergy; in other words, multiple methods in combination with one another yield more positive communication results than do the tools used individually.

• Definition of IMC

IMC is the coordination of the promotional mix elements with each other and with the other elements of the brands’ marketing mix (product, place, price) such that all elements speak with one voice.

VI. Key IMC Features The five key features of IMC are listed in Table 1.2.

A. Key Feature #1: IMC Should Begin with the Customer or Prospect

The marcom process should start with the customer or prospect and then work back (“outside-in” approach) to determine those communication methods that will best serve the customers’ information needs and motivate them to purchase the brand.

• Consumers in Control

Consumers are increasingly active participants in the marcom messages to which they pay attention by choosing when, how, and where they view these messages.

• Reduced Dependence on the Mass Media

Marcom should use the channels which reach people where, when, and how they wish.

B. Key Feature #2: Use Any Form of Relevant Contact

Select those tools that are most appropriate for the communications objective at hand.

• Touch Points and 360-Degree Branding

The IMC objective is to reach the target audience efficiently and effectively using appropriate touch points.

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