Summary was created by using prescribed textbook (Advertising and Promotion: An Integrated Marketing Communications Perspective; 12th Edition). Also includes illustrations displayed in textbook as well as notes made in class.
Marketing Management 244:
Chapter 1: An Introduction to Integrated Marketing Communications
Learning Objective 1: Describe the role of advertising and other promotional elements in marketing
Learning Objective 2: Discuss the evolution of the integrated marketing communications (IMC)
concept.
Learning Objective 3: Explain the increasing value of the IMC perspective in advertising and
promotional programs.
Learning Objective 4: Identify the elements of the promotional mix
Learning Objective 5: Identify the contact points between marketers and their target audiences.
Learning Objective 6: Describe the steps in the IMC planning process.
The Growth of advertising and promotion: (LO 1)
- A + P both integral part of social and economic systems
- Vital communication system for consumers and businesses
- In 1980 A + P were dominant forms of marketing communication
- Advertising spending has shifted from traditional media to online digital advertising formats
and social media
- Largest category of Internet advertising is paid search on search engines - Growth in mobile
marketing
The Role of marketing: (LO 1)
- AMA (American Marketing Association) definition of marketing:
- Marketing: Activity, set of institutions, and processes for creating, communicating,
delivering and exchanging offerings that have value for customers, clients, partners and
society at large
- Exchange: involves parties with: something of value to one another, desire and ability to
give something up to the other party and as a way to communicate with each other
- Focus in market-driven companies is on developing and sustaining relationships with
customers and delivering value
- Value: the customers perception of all the benefits of a product or service weighed against
all the costs of acquiring and consuming it
- The 4 P’s (elements of the marketing mix) : product, price, place (distribution) and
promotion
- To develop an effective marketing mix, marketers must:
- Be knowledgeable about the issues and options of each element of the mix
,- Know how to combine the elements to form an effective marketing program
- Analyze the market (consumer research) and use the data to develop the marketing strategy
and mix
- Other strategies for achieving marketing communication effectively include: social media,
sponsoring events, sales promotion, direct marketing and public relations. Integrated
Marketing Communications (IMC) (LO 2)
- During the 1980s firms moved away from traditional marketing, the decade characterised by
rapid development of sale promotion, direct marketing and public relations.
- IMC =Coordinating the various promotional elements and other marketing activities that
communicate with a firm’s customers
- Terms used to describe integration: “new advertising”, “orchestration” and “seamless
communication”
- 4 A’s= American Association of Advertising Agencies definition for IMC= a concept of
marketing that recognizes the added value of a comprehensive plan that: Evaluates the
strategic roles of a variety of communication disciplines (eg. General advertising, direct
response, sales promotion and public relations) and combines the disciplines to provide
clarity, consistency, and maximum communications impact
- Ensures all marketing and promotional activities project a consistent, unified image
- IMC requires a “big picture” approach
Montblanc example in textbook:
- Montblanc uses a variety of marketing-mix elements, including price,
product design, brand name, and distribution strategy, to create a
high-quality, upscale image for its watches.
- Hugh Jackman = tactical co-ordination
Contemporary Perspective: (LO 2)
- Criticism :“Inside-out marketing” approach
- Packs promotional mix elements together, making them look and
sound alike
- Contemporary perspective: Goal - Generate short-term financial
returns and build long-term brand and shareholder value - Views
IMC as ongoing strategic business process
Reasons for the Growing Importance of IMC (LO 3)
- Fundamental reason is understanding the value strategically integrates various
communications functions rather than having the operate autonomously
- Develops more efficient and effective marketing communications programs
- Avoids duplication and takes advantage of synergy among promotional tools
- One of the easiest ways for a company to maximize return on it’s investment in marketing
and promotion
,- Changing environment (with respect to consumers, technology, and media consumption
behavior)
- Evolution to micromarketing - consumers’ unresponsiveness to traditional advertising
- Changing rules of marketing (ad agencies constantly have to reposition themselves
The Role of IMC in Branding (LO 3)
- Major role in developing the brand identity and equity
- Consumers have limited amounts of time therefore well-known brands have competitive
advantage
- Strong brands have the power to command a premium price from consumers/investors
- Recognizes the need for companies to connect with consumers based on trust,
transparency, and authenticity
- Brand Identity is a combination of many factors (name, logo, symbols, design, packaging,
associations with p/s when consumer thinks of the brand etc.)
- Sustainability: development that meets the needs of the current generation without
compromising the ability of future generations to meet their needs is of major importance-
Companies are addressing sustainability by carefully examining the social and
environmental impacts of their marketing strategies.
The Promotional Mix: The Tools for IMC (LO 4)
- Tools that accomplish an organization’s communication objectives
- Promotion: Coordination of all seller-initiated efforts to: Set up channels of information and
persuasion and sell goods and services or promote an idea
- Elements of the promotional mix:
1) Advertising:
- Definition: Any paid form of nonpersonal communication: about an organization, product,
or service (and/or) with an idea from an identified sponsor
- The nonpersonal component: Involves mass media
- Message is transmitted to large groups of individual + no opportunity for immediate
feedback
- Benefits: 1)Most cost-effective way to reach large numbers of consumers. 2) Builds brand
equity by influencing consumers’ perceptions
, Advertising to Consumer Markets:
§ National Advertising: Done on a nationwide basis or in most regions of the country.
Goal is to inform or reinforce image of company/brand
§ Retail/local advertising: Encorages consumers to: shop at a specific store, use a local
service, Patronize a particular establishment
§ Primary- versus selective-demand advertising:
- Primary-demand: stimulates demand for the general product class or entire industry
(promotional strategy)
- Selective-demand: creates demand for a specific company’s brands (overall market growth)
Advertising to Business and Professional Markets:
§ Business-to-business advertising: Targets individuals who buy or influence the
purchase of industrial goods or services for their companies
§ Professional advertising: Targets professionals, encouraging them to use a
company’s product in their business operations
§ Trade advertising: Targets marketing channel members, encouraging them to stock,
promote, and resell the manufacturer’s branded products to their customers
1) Direct Marketing:
- Definition: Involves communicating directly with target customers to generate a response
and/or a transaction
- Database management (used to target prospective customers), Direct selling, telemarketing
(calling customers directly)
- Direct-response advertising: Encourages the consumer to purchase directly from the
manufacturer
- Omnichannel retailing: trend whereby companies sell their products through multichannel
retailing stores, online, catalogues and mobile apps
3) Digital/Internet Marketing:
- Interactive media: Allow users to participate in and modify the form and content of the
information they receive in real time (ie. can ask questions, share info/images etc. )
- Social media: Online means of communication and interactions used to create, share,
and exchange content (has also revolutionized how businesses communicate and brand
themselves)
- Mobile marketing: Messages delivered are specific to a consumer’s location or
consumption situation
- Advantages of Digital/Internet Marketing: Interactive nature and capability to precisely
measure the effects of advertising and other forms of promotion
4) Sales Promotion:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller jacobsmadre. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.20. You're not tied to anything after your purchase.
