MARK4600 1stEdition Exam 1 Study Guide Chapter 1 Integrated Marketing Communications Integrated Marketing Communications Integrated Marketing Communications o 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 o Covers all of a firm s business to business market channel customer focused and internally directed communications The Communication Process Steps of a Marketing Plan o Current situational analysis o SWOT analysis o Marketing Objectives o Target Market o Marketing Strategies o Marketing tactics o Implementation o Evaluation of performance The Marketing Mix and Components of Promotion Marketing Mix o Provides the starting point o Price Product Promotion Distribution Components of Promotion o Traditional view advertising sales promotion personal selling o Expanded View Database Marketing Direct Response Marketing Sponsorship Marketing E Active Marketing Social Media Alternative Marketing Public Relations Emerging Trends in Marketing Emphasis on Accountability and Measurable Results o Company leaders expect advertising agencies to produce tangible outcomes they spend their promotional dollars carefully o Many companies rely less on 30 second television spots and instead pursue alternative communication venues o Marketing should not be viewed as an expense but rather as an investment in which promotional dollars generate sales and profits Changes in Tasks Performed o Account Executive Develops overall strategic communication plans for client companies while at the same time overseeing individual promotional activities Growing demand for accountability means the individual closely examines each marketing campaign seeking evidence of success to show perspective clients o Brand or product manager Oversees a specific brand or line of products for client company Organizes the activities of multiple individuals and agencies while integrating each marketing campaign o Creatives The individuals who develop the actual advertisements and promotional materials Most are employed by agencies others are self employed o Account planners Represent the voice of the consumer within the agency to the agency s creative staff An account planner will be involved in the development of an advertising campaign Now being asked to contribute ideas about the firm s strategic marketing direction and the types of communication that will best reach each target audience Emergence of Alternative Media o Alternative interactive marketing techniques can create experiences with a brand rather than mere purchases o Spend less on tv advertising and have shifted funds to digital media The Value of IMC Reasons for Integrated Advertising and Marketing Communications Programs o Advances in information technology Technology enables instant communication creating both opportunities and threats for marketing communications Consumers hold access to a wealth of info about companies products and brands they can communicate with each other sending favorable or unfavorable ratings and info Marketers are adapting methods to communicate and vend products effectively in this new communication rich age Also monitor what consumers are saying in blogs and online forums Advances in info technology allowed self styled makeup maven Lauren Luke to sell cosmetics around the world o Changes in channel power Marketing channel consists of a producer or manufacturer vending goods to wholesalers or middleman who in turn sell items to retailers who sell the items to consumers o o o o Recent technological developments alter the levels of power held by members of the channel Retailers seek to maintain channel power by controlling shelf space and purchase data which allows them to determine which products are placed on store shelves The growth of the Internet and other methods of communication shifts some channel power to consumers Consumers obtain info about goods and services and purchase them using the Internet Buyers who shop on behalf of organizations and other company members seeking business to business products also tap into these resources Increase in global competition Increase in info technology changes where competition comes from Not just down the street but across the world Consumers desire quality and low prices The company that delivers both quality and values makes the sale regardless of location In this environment integrating advertising and other marketing communications becomes increasing important advertising alone cannot maintain sales Increase in brand parity Many currently available products offer nearly identical benefits Emphasis on customer engagement The expanding number of available brands perceived to be roughly equivalent leads to another response Increase in micro marketing These programs focus more on individuals and micro segments rather than the mass population Brand Parity Brand parity o When consumers believe that most brands provide the same set of attributes o Shoppers select from a group of brands rather than one specific brand o Equality becomes less concern because consumers perceive only minor differences between brands Consumer Contact Point Contact point o Any place where customers interact with or acquire additional information about a firm o To build loyalty many marketing efforts have been made to engage customers with the brand at every contact point o Customer engagement programs often utilize digital media and should become part of the total integrated marketing approach Effective engagement provides a venue for two way communication o It can be built by offering incentives and reasons for the consumer to communicate with the company o For customers to take advantage of these initiatives however they must develop emotional commitments to the brand and have feelings of confidence integrity pride and passion toward it o The brand must deliver on its promises and provide reasons for consumers to continue to interact with the company Key Terms Communication o Transmitting receiving and processing information Senders o The persons attempting to deliver a message or idea Encoding o The verbal words sounds and nonverbal gestures facial expressions posture cues that the sender utilizes in dispatching a message Transmission Devices o All of the items that carry a message from the sender to the receiver Decoding o What occurs when the receiver employs any of