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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 Integrated marketing communication: how marketing communication evolved Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 2-1 Learning objectives 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 To explore the concept of integration, its different types and the necessity of integrating the whole organisation, not just the marketing communication tools To examine how IMC has been implemented and the typical barriers to implementation Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 2-2 Relationships and value Marketing mix Advertising Marketing evolution Direct marketing Interactive Sales promotion Tools IMC Implementation Evolution IMC as a discipline Integration Definition & direction Importance of IMC PR Sponsorship Barriers Types Personal selling Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Integrating the organisation 2-3 Air New Zealand Nothing to hide campaign Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 2-4 Air New Zealand Nothing to hide campaign (cont.) 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 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 2-5 Relationships and value Marketing mix Advertising Marketing evolution Direct marketing Interactive Sales promotion Tools IMC Implementation Evolution IMC as a discipline Integration Definition & direction Importance of IMC PR Sponsorship Barriers Types Personal selling Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Integrating the organisation 2-6 Marketing: where IMC begins Traditional Traditional definition definition Marketing Marketing is is the the process process of of conception, conception, pricing, pricing, promotion promotion and and distribution distribution of of goods, goods, services services and and ideas ideas Revised Revised definition definition of of marketing marketing Marketing Marketing is is the the activity, activity, set set of of institutions, institutions, and and processes processes for for creating, creating, communicating, communicating, delivering delivering and and exchanging exchanging offerings offerings that that have have value value for for customers, customers, clients clients and and society society at at large large Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 2-7 Marketing: where IMC begins (cont.) Marketing Marketing is is the the activity, activity, set set of of institutions, institutions, and and processes processes for for creating, creating, communicating, communicating, delivering delivering and and exchanging exchanging offerings offerings that that have have value value for for customers, customers, clients clients and and society society at at large large AMA, AMA, 2007 2007 Value Value co-creation co-creation Social Social impact impact Exchange Exchange Relationships Relationships Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 2-8 Relationships and value Value Value = Benefits Benefits Minus Costs 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 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 2-9 Relationship marketing Relationship marketing involves creating, maintaining and enhancing long term relationships with consumers, as well as other stakeholders for mutual benefit Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 2-10 Reasons for the growing importance of IMC From Toward Media Media advertising advertising Multiple Multiple forms forms of of communication communication Mass Mass media media Specialised Specialised media media Manufacturer Manufacturer dominance dominance Retailer Retailer dominance dominance General General focus focus Database Database marketing marketing Low Low agency agency accountability accountability Greater Greater agency agency accountability accountability Limited Limited internet internet availability availability Widespread Widespread internet internet availability availability Marketer-control Marketer-control over over information information Consumer Consumer demand demand for for timely timely information information and and entertainment entertainment Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 2-28 Relationships and value Marketing mix Advertising Marketing evolution Direct marketing Interactive Sales promotion Tools IMC Implementation Evolution IMC as a discipline Integration Definition & direction Importance of IMC PR Sponsorship Barriers Types Personal selling Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Integrating the organisation 2-29 Integration Integration is a management process that can be both a functional task of coordination, as well as a strategic tool Message Message (tactical) (tactical) Types Types of of integration integration Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Strategic Strategic 2-30 Types of integration Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 2-31 Integration continuum Dysfunction Dysfunction Synergy Synergy ???? At one end of the continuum, audiences receive mixed or incorrect messages (dysfunction) At the other end, the combined effect of all messages adds value (synergy) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 2-32 Message integration Message integration is about verbal and visual consistency Theme Theme line line Logo Logo Message Message consistency consistency Achieving Achieving message message integration integration Common Common tone tone Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Colour Colour Shared Shared consistency consistency 2-33 Strategic integration Strategic integration brings together all the elements of the IMC mix Shared Shared budget budget Strong Strong leadership leadership Coordination Coordination Achieving Achieving strategic strategic integration integration Cross-functional Cross-functional teams teams Multiple Multiple audiences audiences Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Common Common objectives objectives Corporate Corporate mission mission Multiple Multiple communications communications disciplines disciplines 2-34 IMC integration Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 2-35 Relationships and value Marketing mix Advertising Marketing evolution Direct marketing Interactive Sales promotion Tools IMC Implementation Evolution IMC as a discipline Integration Definition & direction Importance of IMC PR Sponsorship Barriers Types Personal selling Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Integrating the organisation 2-36 IMC implementation Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 2-37 IMC practices Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 2-38 Barriers to implementation “Silo” “Silo” structures structures Lack Lack of of expertise expertise “Turf” “Turf” battles battles Organisational Organisational barriers barriers Absence Absence of of measurement measurement tools tools Multiple Multiple agencies agencies Lack Lack of of database database development development Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 2-39 Relationships and value Marketing mix Advertising Marketing evolution Direct marketing Interactive Sales promotion Tools IMC Implementation Evolution IMC as a discipline Integration Definition & direction Importance of IMC PR Sponsorship Barriers Types Personal selling Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Integrating the organisation 2-40 IMC audience contact tools Broadcast Broadcast media media (TV/radio) (TV/radio) Print Print media media (newspapers, (newspapers, magazines) magazines) Public Public relations/ relations/ publicity publicity Out-of-home Out-of-home media media Internet/ Internet/ interactive interactive Direct Direct marketing marketing Target Target audience audience Personal Personal selling selling POP POP (displays, (displays, packaging) packaging) Sales Sales promotion promotion Word-of-mouth Word-of-mouth Events Events and and sponsorship sponsorship Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Product Product placements placements 2-41 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, personal selling and other relevant communications activities Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 2-42 ... objectives 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... by Belch, Belch, Kerr & Powell 2-24 IMC defined Integrated? ?marketing? ?communication? ?is a strategic business process used Integrated? ?marketing? ?communication? ?is a strategic business process used ... approach to marketing communication Point of purchase Special events Public relations Publicity Media Advertising Direct marketing Sales promotion Packaging Direct response Interactive marketing