An Introduction to Integrated Communications The Growth of and Expenditure in Billions of Dollars U.S. U.S. Outside U.S. 2002 1980 $0 $50 $100 $150 $200 $250 $300 IMC Audience Contact Points Point of Purchase Public Relations Packaging Internet/ Mail Communications Audience Response Print Broadcast Outdoor 1
IMC Principles Extend Worldwide Traditional Approach to Communications Point of Purchase Special Public Relations Packaging Response Contemporary IMC Approach Packaging Response Point of Purchase Public Relations Special 2
Revolution and Shifting Tides From Mass Manufacturer Dominance General Focus Low Agency Accountability Traditional Compensation Limited Internet Availability Toward Multiple Forms of Communication Specialized Retailer Dominance Data Based Greater Agency Accountability Performance Based Compensation Widespread Internet Availability IMC and Branding Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer s mind. IMC plays a major role in the process of developing and sustaining brand identity and equity. 2003 Brand Value (Billions of Dollars) 1. Coca-Cola $70.5 2. Microsoft $65.1 3. IBM $51.8 4. GE $42.3 5. Intel $31.1 6. Nokia $29.4 7. Disney $28.0 8. McDonald s $24.7 9. Marlboro $22.2 10. Mercedes $21.4 Coordinated Mix Elements Build Image 3
Basic Elements of the al Mix / Internet /Public Relations Personal Selling Classifications of National Retail/Local Consumers Primary vs. Selective Demand Business-to-Business Professional Trade Organizations Great Can Strike a Responsive Chord with Consumers *Click outside of the video screen to advance to the next slide 4
is Part of IMC Internet Shopping Channels Mail Response Telemarketing Cataloging Catalogs Bose Uses Response Using the Internet as an IMC Tool The Internet Educates or Informs Customers A Persuasive Medium A Tool or an Actual Vehicle Obtains Customer Database Information Communicates and Interacts With Buyers Provides Customer Service and Support Builds and Maintains Customer Relationships 5
American Airlines Encourages Customers to Do It All Online Tools Coupons Samples Premiums Contests/Sweepstakes Refunds/Rebates Bonus Packs Loyalty Programs Consumeroriented [For end-users] Trade Allowances POP Displays Training Programs Trade Shows Coop Tradeoriented [For resellers] Various Uses of Introduce New Products Get Existing Customers to Buy More Combat Competition Enhance Personal Selling Attract New Customers Maintain In Off Season Tie In & Personal Selling Increase Retail Inventories 6
Versus Factor Control Credibility Reach Frequency Cost Flexibility Timing Great Lower Measurable Schedulable High/Specific High Specifiable Little Higher Undetermined Uncontrollable Low/Unspecified Low Tentative Vehicles Feature Articles News Releases Vehicles Interviews Press Conferences Special Public Relations Tools Vehicles Special Publications Community Activities Corporate Cause-related Public Affairs Activities Special Event Sponsorship 7
DuPont Uses to Enhance Its Corporate Image Integrated Communications Planning Model Review of Plan al Program Situation Analysis Analysis of the Communications Process Budget Determination Develop Integrated Communications Programs PR/ Personal Selling Internet/ Message PR/ PR/ Personal Selling Personal Selling Integration & Implementation of Communications Strategies Monitor, Evaluate & Control al Program Internet/ Internet/ The Plan 1. A detailed situation analysis 2. Specific marketing objectives 3. A marketing strategy and program 4. A program for implementing the strategy 5. A process for monitoring and evaluating performance 8
MAC Triad M A PT C M=Message A=Audience C=Channel P=Purpose T=Timing You are the Brand Brand Brand Equity Brand Extension Brand Expansion Brand Familiarity Brand Favorability Brand Identity Brand Image Brand Insistence Brand Loyalty Brand Power (Brand Champions) Questions??? M. Larry Litwin, APR, Fellow PRSA larry@larrylitwin.com www.larrylitwin.com 9