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Integrated
Marketing Communications
IMC is the coordination and
integration of all marketing
communication tools, avenues and
sources within a company into a
seamless program which
maximizes the impact on
consumers and other end-users at
a minimal cost.



                                   1-1
FIGURE         1 .1
Communication Process




                        1-2
FIGURE                                                      5.6
                                        Global Advertising Expenditures



                           $160.0
                                                                                                                                $500
                                                                                                                                       $438
                           $140.0   $134.3                                                                                      $450
                                                                                                                                $400
                           $120.0                                                                                               $350
Expenditures in Billions




                                                                                                                                $300          $263
                           $100.0
                                                                                                                                                     $238   $249                                         $240
                                                                                                                                $250
                           $80.0                                                                                                $200                                $167                          $157
                                                                                                                                $150                                        $122           $123
                           $60.0
                                                                                                                                $100
                                                                                                                                                                                     $52
                           $40.0             $33.2                                                                              $50
                                                      $21.6                                                                      $0
                           $20.0                              $15.8
                                                                       $11.1      $8.3       $6.9    $5.4     $5.3     $5.0

                             $0.0
                                    United   Japan Germany    U.K.     France     Italy     Brazil   Spain   Canada Australia
                                    States
                                                                 Total Advertising Expenditures
                                                                                                                                                        Average Expenditure per Capita




                                                     Source: Juliana Koranteng and Normandy Madden, “Ranking of the Top Global Ad Markets,”
                                                     Advertising Age International, (May 2000), pp. 17-20.
                                                                                                                                         5-3
TAB LE 5 . 1
          Comparison of B-to-B and Consumer Communications
          Expenditures



       Print Ads


      Radio Ads


         TV Ads


             PR


Sales Promotions


        Catalogs


    Trade Shows


      Direct Mail



                    0   5   10       15          20          25              30   35   40   45     50
                                 Percentage of Total Communications Budget



                                                       Consumer     B-to-B

                                                                                                 5-4
Marketing Budgets

         Advertising
            26%




Consumer Promotions             Trade Promotions
       24%                            50%




                                                   5-5
Discussion Slide
     Advertising Clutter

•   To how many ads were you exposed during
    the last 24 hours from the following media?
    –   Television
    –   Radio
    –   Magazines
    –   Newspapers
    –   Billboards
    –   Internet Web sites
•   How many ads can you recall from each of
    the above media?


                                                      1-6
FIGURE                     1.8
Items to be Included in an IMC Program
    •   Company logo                           •   Cooperative advertising with other
    •   Product brand name and company             businesses
        name                                   •   Personal selling pitches
    •   Business cards                         •   Characteristics of target market
    •   Letterhead                                 buyers
    •   Carry home bags (paper or plastic)     •   Characteristics of business buyers
    •   Wrapping paper                         •   Sales incentives provided to sales
    •   Coupons                                    force (contests, prizes, bonuses and
                                                   commissions)
    •   Promotional giveaways (coffee
        mugs, pens, pencils, calendars)        •   Internal messages
    •   Design of booth for trade shows        •   Company magazines and newspapers
    •   Advertisements (billboards, space      •   Statements to shareholders
        used on cars and busses, television,   •   Speeches by company leaders
        radio, magazines and newspapers)       •   Public relations releases
    •   Toll free 800 number                   •   Sponsorship programs
    •   Company database                       •   Web site


                                                                                    1-7
FIGURE              1.6
Factors Affecting the Value of IMC Programs



 •   Development of information technology
 •   Increase in competition (global competitors)
 •   Brand parity
 •   Integration of information by consumers
 •   Decline in effectiveness of mass media
     advertising.




                                                    1-8
FIGURE                        1.7
Viewer Activities During TV Commercials


         Positive Responses:
         •    Get amused by the ads (26%)
         •    Sit and watch commercials (19%)

         Negative Responses:
         •    Get annoyed at the number of ads (52%)
         •    Get up and do something else (45%)
         •    Switch channels (39%)
         •    Talk to others in the room (34%)
         •    Turn down the sound on TV (19%)
         •    Read (11%)
         •    Use the computer (5%)


     Source: Jennifer Lach, “Commercial Overload,” American Demographics,
     (September 1999), Vol.. 21, No. 9, p. 20.
                                                                            1-9
Global Integrated
     Marketing Communications

•   GIMC is more challenging in the international
    arena.
•   Standardization vs Adaptation.
•   “Think globally, but act locally.”




                                               1-10
Verbal and Visual Elements
   Central vs Peripheral route processing
   Visual processing
     – Easier to recall
     – Stored both as pictures and words
     – Concrete vs abstract
   Radio visual imagery
Pepsi radio ads in which listeners hear
a can being opened.
   Visual esperanto
A universal language for global advertising.
e.g. a boy and father at a sport event
(the message is a shared family moment).




                                               7-11
Advertising Appeals
      Fear
      Humor
      Music
      Rationality
      Emotions



                      7-12
Discussion Slide
FIGURE                7.6
Humorous Ads Quiz



 Good or Service                             Hints

    Beer                    Miller Lite, Keystone, Budweiser, Hineken
    Restaurants              Wendy’s, Shoney’s, Long John Silvers
    NBA                                   It’s Fantastic
    Telephone                             U.S. Cellular
    Motels                         Holiday Inn, Red Roof Inn




Can you remember an advertisement
for each good or service that was funny?
                                                                               7-13
Humor
Appeal




         7-14
Emotional Appeals

   Based on three ideas:
    – Consumers ignore most ads.
    – Rational ads go unnoticed.
    – Emotional ads can capture attention.




                                             7-15
This ad for a nonprofit animal rights and rescue group
draws on viewers’ sympathies toward animals.




                                                         7-16
Spokespersons
    Celebrities
    CEOs
    Experts
    Typical persons




                       8-17
FIGURE                    8.4
Celebrity Endorsers


   Ace Hardware: John Madden              GMC Trucks: Grant Hill
   Adidas: Steffi Graf                    Hanes Hosiery: Fran Drescher
   American Express: Jerry Seinfeld       Hanes Underwear: Michael Jordan
   Amway: Shaquille O’Neal                K-Mart: Rose O’Donnell
   AT&T: Whitney Houston                  L’eggs: Jamie Lee Curtis
   Campbell Soup: Wayne Gretzky           MasterCard: Tom Watson
   Compaq Computers: Hakeem               Nintendo: Ken Griffey, Jr.
    Olajuwon                               Outback Steakhouse: Rachel Hunter
   Converse: Larry Bird, Larry            Revlon: Cindy Crawford
    Johnson, Lattrell Sprewell             Sprite: Grant Hill
   Danskin: Nadia Comaneci                Taco Bell: Spike Lee, Shaquille
   Fila: Naomi Campbell, Grant Hill,       O’Neal, Hakeem Olajuwon
    Kathy Ireland, Vendela




                                                                            8-18
FIGURE               8.6
Principles of Effective Advertising



              Visual consistency.
              Campaign duration.
              Repeated taglines.
              Consistent positioning.
              Simplicity.
              Identifiable selling point.

                                             8-19
Beating Ad Clutter
   Presence of competitor ads.
   Use repetition.
   Use multiple mediums.
   Create ads that gain attention.
   Create ads that relate to the
    target audience




                                      8-20

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Ch.17 18 new

  • 1. Integrated Marketing Communications IMC is the coordination and integration of all marketing communication tools, avenues and sources within a company into a seamless program which maximizes the impact on consumers and other end-users at a minimal cost. 1-1
  • 2. FIGURE 1 .1 Communication Process 1-2
  • 3. FIGURE 5.6 Global Advertising Expenditures $160.0 $500 $438 $140.0 $134.3 $450 $400 $120.0 $350 Expenditures in Billions $300 $263 $100.0 $238 $249 $240 $250 $80.0 $200 $167 $157 $150 $122 $123 $60.0 $100 $52 $40.0 $33.2 $50 $21.6 $0 $20.0 $15.8 $11.1 $8.3 $6.9 $5.4 $5.3 $5.0 $0.0 United Japan Germany U.K. France Italy Brazil Spain Canada Australia States Total Advertising Expenditures Average Expenditure per Capita Source: Juliana Koranteng and Normandy Madden, “Ranking of the Top Global Ad Markets,” Advertising Age International, (May 2000), pp. 17-20. 5-3
  • 4. TAB LE 5 . 1 Comparison of B-to-B and Consumer Communications Expenditures Print Ads Radio Ads TV Ads PR Sales Promotions Catalogs Trade Shows Direct Mail 0 5 10 15 20 25 30 35 40 45 50 Percentage of Total Communications Budget Consumer B-to-B 5-4
  • 5. Marketing Budgets Advertising 26% Consumer Promotions Trade Promotions 24% 50% 5-5
  • 6. Discussion Slide Advertising Clutter • To how many ads were you exposed during the last 24 hours from the following media? – Television – Radio – Magazines – Newspapers – Billboards – Internet Web sites • How many ads can you recall from each of the above media? 1-6
  • 7. FIGURE 1.8 Items to be Included in an IMC Program • Company logo • Cooperative advertising with other • Product brand name and company businesses name • Personal selling pitches • Business cards • Characteristics of target market • Letterhead buyers • Carry home bags (paper or plastic) • Characteristics of business buyers • Wrapping paper • Sales incentives provided to sales • Coupons force (contests, prizes, bonuses and commissions) • Promotional giveaways (coffee mugs, pens, pencils, calendars) • Internal messages • Design of booth for trade shows • Company magazines and newspapers • Advertisements (billboards, space • Statements to shareholders used on cars and busses, television, • Speeches by company leaders radio, magazines and newspapers) • Public relations releases • Toll free 800 number • Sponsorship programs • Company database • Web site 1-7
  • 8. FIGURE 1.6 Factors Affecting the Value of IMC Programs • Development of information technology • Increase in competition (global competitors) • Brand parity • Integration of information by consumers • Decline in effectiveness of mass media advertising. 1-8
  • 9. FIGURE 1.7 Viewer Activities During TV Commercials Positive Responses: • Get amused by the ads (26%) • Sit and watch commercials (19%) Negative Responses: • Get annoyed at the number of ads (52%) • Get up and do something else (45%) • Switch channels (39%) • Talk to others in the room (34%) • Turn down the sound on TV (19%) • Read (11%) • Use the computer (5%) Source: Jennifer Lach, “Commercial Overload,” American Demographics, (September 1999), Vol.. 21, No. 9, p. 20. 1-9
  • 10. Global Integrated Marketing Communications • GIMC is more challenging in the international arena. • Standardization vs Adaptation. • “Think globally, but act locally.” 1-10
  • 11. Verbal and Visual Elements  Central vs Peripheral route processing  Visual processing – Easier to recall – Stored both as pictures and words – Concrete vs abstract  Radio visual imagery Pepsi radio ads in which listeners hear a can being opened.  Visual esperanto A universal language for global advertising. e.g. a boy and father at a sport event (the message is a shared family moment). 7-11
  • 12. Advertising Appeals  Fear  Humor  Music  Rationality  Emotions 7-12
  • 13. Discussion Slide FIGURE 7.6 Humorous Ads Quiz Good or Service Hints  Beer Miller Lite, Keystone, Budweiser, Hineken  Restaurants Wendy’s, Shoney’s, Long John Silvers  NBA It’s Fantastic  Telephone U.S. Cellular  Motels Holiday Inn, Red Roof Inn Can you remember an advertisement for each good or service that was funny? 7-13
  • 14. Humor Appeal 7-14
  • 15. Emotional Appeals  Based on three ideas: – Consumers ignore most ads. – Rational ads go unnoticed. – Emotional ads can capture attention. 7-15
  • 16. This ad for a nonprofit animal rights and rescue group draws on viewers’ sympathies toward animals. 7-16
  • 17. Spokespersons  Celebrities  CEOs  Experts  Typical persons 8-17
  • 18. FIGURE 8.4 Celebrity Endorsers  Ace Hardware: John Madden  GMC Trucks: Grant Hill  Adidas: Steffi Graf  Hanes Hosiery: Fran Drescher  American Express: Jerry Seinfeld  Hanes Underwear: Michael Jordan  Amway: Shaquille O’Neal  K-Mart: Rose O’Donnell  AT&T: Whitney Houston  L’eggs: Jamie Lee Curtis  Campbell Soup: Wayne Gretzky  MasterCard: Tom Watson  Compaq Computers: Hakeem  Nintendo: Ken Griffey, Jr. Olajuwon  Outback Steakhouse: Rachel Hunter  Converse: Larry Bird, Larry  Revlon: Cindy Crawford Johnson, Lattrell Sprewell  Sprite: Grant Hill  Danskin: Nadia Comaneci  Taco Bell: Spike Lee, Shaquille  Fila: Naomi Campbell, Grant Hill, O’Neal, Hakeem Olajuwon Kathy Ireland, Vendela 8-18
  • 19. FIGURE 8.6 Principles of Effective Advertising  Visual consistency.  Campaign duration.  Repeated taglines.  Consistent positioning.  Simplicity.  Identifiable selling point. 8-19
  • 20. Beating Ad Clutter  Presence of competitor ads.  Use repetition.  Use multiple mediums.  Create ads that gain attention.  Create ads that relate to the target audience 8-20