CHAPTER OBJECTIVES - Chapter 1 Integrated Marketing Communications C...

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Chapter 1

Integrated Marketing Communications

CHAPTER OBJECTIVES

Students should be able to answer the following questions:

1.1 How does communication take place?

1.2 What is an integrated marketing communications program?

1.3 What trends are affecting marketing communications?

1.4 What are the components of an integrated marketing communications program?

1.5 What is meant by GIMC?

OVERVIEW

Advertising and promotion face a rapidly shifting landscape. A decline in traditional media viewing combined with the rise in internet usage and the use of social media have created a new order.

Effective advertising and marketing campaigns often now involve more than one well-made commercial because such a wide variety of media is available.

Current advertising and marketing methods range from simple stand-alone billboard advertisements to complex, multilingual global websites.

Lean Cuisine

How do you convince consumers that the same product should be viewed in a different way?The marketing team realized that the term “diet” was fading in usage and popularity.

Nestle, ConAgra, Kellogg, and General Mills jointly launched a three-year, $30 million image campaign entitled “Frozen. How Fresh Stays Fresh.” The idea was to convince consumers, many of whom had begun to strongly prefer fresh food over frozen, that the latter was equally tasty and healthy.

(Integrated Advertising, Promotion, and Marketing Communications, 8e (Global Edition) Kenneth Clow, Donald Baack) (Instructor Manual) 1 / 4

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Every element of this new approach sought to generate a change in consumer perceptions of a longstanding product, noting that in FDA standards the word “lean” means food items cannot contain more than 10 grams of fat.

Questions for Students:

• What do you think of when you hear the term “diet” food? Will these

companies be able to change your perception?

• Did you see this campaign? What was your reaction?
• Do you think using social media will work in this instance? Why or why

not?

This chapter explains the nature of an integrated advertising and marketing communications program.

First, communication processes are described. Understanding how communication works builds the foundation for an integrated marketing program.

Also, the trends affecting marketing communications are noted.

Next, an integrated marketing communications program is described.

Finally, the integrated marketing communications process is applied to global or international operations, creating a globally integrated marketing communications (GIMC) program.

Objective 1.1: How does communication take place?

The Nature of Communication

Communication is defined as transmitting, receiving, and processing information. The parts of a communications model are displayed in Figure 1.1. Components that should be

discussed include:

• Sender—the person(s) attempting to deliver a message or idea

• Encoding processes—the verbal (words, sounds) and nonverbal (gestures, facial expression, posture) cues that the sender utilizes in dispatching the message

• Transmission device—all of the items that carry the message from the sender to the receiver

• Decoding—takes place when the receiver employs any set of his or her senses (hearing, seeing, feeling, etc.) in the attempt to capture the message

• Receiver—the intended audience for a message 2 / 4

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• Feedback—information the sender obtains from the receiver regarding the receiver’s perception or interpretation of a message

• Noise—anything that distorts or disrupts a message

Figure 1.1 A Model of Communication

A message, from a company such as Chick-fil-A, is being prepared by the Sender.

Encoding processes include all of the verbal and nonverbal cues that are part of the marketing message.

Messages travel to audiences via various transmission devices, such as a television, billboard, Sunday paper with a coupon, or a letter to the purchasing agent of a large retail store.

Decoding occurs when the receiver’s (consumer’s) senses are touched in some way by the message.

Feedback occurs through inquiries, trips to the store, and purchases.

Noise is all of the factors that prevent the consumer from seeing the message. A classic example is clutter, which exists when consumers are exposed to hundreds of marketing messages per day and most are tuned out (see Figure 1.2)

Figure 1.2 Displays examples of communication noise that affect television.

Question for Students: Can you think of additional examples of noise in advertising or marketing communications?

Objective 1.2: What is an integrated marketing communications program?

Integrated Marketing Communications

Integrated marketing communications (IMC) is the coordination and integration of all marketing communication tools, avenues, and sources in a company into a seamless program designed to maximize the impact on customers and other stakeholders.

The program should cover all of a firm’s business-to-business, market channel, customer- focused, and internally directed communications.

The marketing mix consists of • Products 3 / 4

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• Pricing systems • Distribution systems • Promotional programs

The promotions mix consists of • Advertising • Sales promotions (including consumer and trade promotions) • Personal selling activities

The IMC promotions mix also includes • Database marketing • Direct response marketing • Online marketing • Social media • Guerilla marketing • Alternative marketing • Public relations programs

Figure 1.3 Displays all of these elements.

Figure 1.4 Lists the steps required to complete a marketing plan.

• Situational analysis (examining problems and opportunities in the organization’s

external environment and strengths and weaknesses in the firm itself)

• Defining marketing objectives (sales, market share, competitive position, and

customer actions desired)

• Budget preparation

• Finalizing marketing strategies and tactics

• Evaluation of performance

Objective 1.3: What trends are affecting marketing communications?

Emerging Trends in Marketing Communications

Figure 1.5 Illustrates current trends affecting marketing communications Emphasis on Accountability and Measurable Results Advertising agencies are expected to produce tangible outcomes. Promotional dollars must be spent carefully.

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