Chapter 1: An Introduction to Integrated Marketing Communications
Focuses Charmin toilet tissue and how Procter & Gamble has added social media to
... [Show More] traditional
media to the IMC program for the brand. Also discusses how Charmin is one of the most creative
brands on social media. Charmin is one of the brands being featured in the new video cases
being produced for 11e.
KEY TERMS
Exchange : may be the core phenomenon or domain for study in marketing
Marketing : Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering and exchanging offerings that have value for customers, clients,
partners, and society at large
Value : Value is the customer’s perception of all the benefits of a product or service weighed
against all the costs of acquiring and consuming it.
Marketing mix : Product, price, place (distribution), and promotion
Integrated marketing communications (IMC) : involves coordinating the various promotional
elements and other marketing activities that communicate with a firm’s customers
Sustainability : development that meets the needs of the current generation without
compromising the ability of future generations to meet their needs
Promotion : the coordination of all seller-initiated efforts to set up channels of information and
persuasion in order to sell goods and services or promote an idea
Promotional mix : The basic tools used to accomplish an organization’s communication
objectives
Advertising : any paid form of nonpersonal communication about an organization, product,
service, or idea by an identified sponsor
Direct marketing : organizations communicate directly with target customers to generate a
response and/ or a transaction
Direct-response advertising : a product is promoted through an ad that encourages the
consumer to purchase directly from the manufacturer
Omnichannel retailing : companies sell their products through multiple distribution channels
including retail stores, online, catalogs, and mobile apps
Interactive media: allow for a two-way flow of communication whereby users can participate in
and modify the form and content of the information they receive in real time (allow users to
perform a variety of activities such as receive, alter, and share information and images; make
inquiries; respond to questions; and even make purchases online)
Social media : online means of communication and interactions among people that are used to
create, share, and exchange content such as information, insights, experiences, perspectives,
and even media themselves
Mobile marketing : promotional activity designed for delivery to cell phones, smartphones,
tablets, and other handheld devices including apps, messaging, commerce, and customer
relationship management
Sales promotion: marketing activities that provide extra value or incentives to the sales force, the
distributors, or the ultimate consumer and can stimulate immediate sales
Publicity: non-personal communications regarding an organization, product, service, or idea not
directly paid for or run under identified sponsorship
Public relations: When an organization systematically plans and distributes information in an
attempt to control and manage its image and the nature of the publicity it receives. “a strategic
communication process that builds mutually beneficial relationships between organizations and
their publics.”
Personal selling: a form of person-to-person communication in which a seller attempts to assist
and/or persuade prospective buyers to purchase the company’s product or service or to act on
an idea
Touch point: A touch point refers to each and every opportunity the customer has to see or hear
about the company and/or its brands or have an encounter or experience with it. Like Yelp
reviews
Paid media: channels a marketer pays to leverage and includes traditional advertising media
such as television, radio, print, outdoor, and direct mail as well as various forms of digital
advertising such as paid search and online display and video ads
Owned media: channels of marketing communication that a company controls, such as its
websites, blogs, and mobile apps as well as social media channels such as Facebook, Twitter,
Instagram, and YouTube
Earned media: exposure for a company or brand that it did not have to pay for and is generated
by outside entities such as the media or the general public
Integrated marketing communications management: the process of planning, executing,
evaluating, and controlling the use of the various promotional-mix elements to effectively
communicate with target audiences.
Integrated marketing communications plan: provides the framework for developing,
implementing, and controlling the organization’s IMC program. Those involved with the IMC
program must decide on the role and function of the specific elements of the promotional mix,
develop strategies for each element, determine how they will be integrated, plan for their
implementation, and consider how to evaluate the results achieved and make any necessary
adjustments
Marketing plan: a written document that describes the overall marketing strategy and programs
developed for an organization, a particular product line, or a brand. Marketing plans can take
several forms but generally include five basic elements
1. A detailed situation analysis that consists of an internal marketing audit and review and an
external analysis of the market competition and environmental factors.
2. Specific marketing objectives that provide direction, a time frame for marketing activities,
and a mechanism for measuring performance.
3. A marketing strategy and program that include selection of target market(s) and decisions
and plans for the four elements of the marketing mix.
4. A program for implementing the marketing strategy, including determining specific tasks
to be performed and responsibilities.
5. A process for monitoring and evaluating performance and providing feedback so that
proper control can be maintained and any necessary changes can be made in the overall
marketing strategy or tactics.
Internal analysis: assesses relevant areas involving the product/service offering and the firm
itself
External analysis: focuses on factors such as characteristics of the firm’s customers, market
segments, positioning strategies, and competitors
Internal Analysis External Analysis
➢ Assessment of firm’s promotional
organization and capabilities
➢ Review of firm’s previous promotional
programs and results
➢ Assessment of firm or brand image
and those implications for promotion
➢ Assessment of strengths and
weaknesses of product or service
❖ customer analysis
❖ Competitive analysis
❖ Environmental analysis
Marketing objectives: what is to be accomplished by the overall marketing program.
Communication objectives: what the firm seeks to accomplish with its promotional program
Chapter 2: The Role of IMC in the Marketing Process
Focuses on “Creating a New Image for Buick” and discusses Buick’s attempt to reposition the
100+-year-old auto to appeal to a younger market.
KEY TERMS
strategic marketing plan: A strategic marketing plan usually evolves from an organization’s
overall corporate strategy and serves as a guide for specific marketing programs and policies
market segments: target markets the company wishes to pursue
market opportunities: areas where there are favorable demand trends, where the company
believes customer needs and opportunities are not being satisfied, and where it can compete
effectively
competitive advantage: something special a firm does or has that gives it an edge over
competitors.
target marketing: involves four basic steps
1. identifying markets with unfulfilled needs
2. segmenting the market
3. targeting specific segments
4. positioning one’s product or service through marketing strategies.
market segmentation: dividing a market into distinct groups that (1) have common needs and (2)
will respond similarly to a marketing action.
geographic segmentation: markets are divided into different geographic units. These units may
include nations, states, counties, or even neighborhoods. Consumers often have different buying
habits depending on where they reside
demographic segmentation: Dividing the market on the basis of demographic variables such as
age, sex, family size, education, income, and social class is called demographic segmentation
psychographic segmentation: Dividing the market on the basis of personality, lifecycles, and/or
lifestyles is referred to as psychographic segmentation.
behavioristic segmentation: Dividing consumers into groups according to their usage, loyalties,
or buying responses to a product is behavioristic segmentation.
80–20 rule: 20 percent of their buyers account for 80 percent of their sales volume.
benefit segmentation: The grouping of consumers on the basis of attributes sought in a product
is known as benefit segmentation and is widely used
undifferentiated marketing: ignoring segment differences and offering just one product or
service to the entire market
differentiated marketing: marketing in a number of segments, developing separate marketing
strategies for each.
concentrated marketing: is used when the firm selects one segment and attempts to capture a
large share of this market.
Positioning: “the art and science of fitting the product or service to one or more segments of the
broad market in such a way as to set it meaningfully apart from competition.”1
Salient attributes: (those that are important to consumers and are the basis for making a
purchase decision)
Repositioning: usually occurs because of declining or stagnant sales or because of anticipated
opportunities in other market positions. Repositioning is often difficult to accomplish because of
entrenched perceptions about and attitudes toward the product or brand.
product symbolism: what a product or brand means to consumers and what they experience in
purchasing and using it.
brand identity: name, logo, symbols, design, packaging, and image of associations held by
consumers.
brand equity: intangible asset of added value or goodwill that results from the favorable image,
impressions of differentiation, and/or the strength of consumer attachment to a company name,
brand name, or trademark
marketing channels: the place element of the marketing mix, are “sets of interdependent
organizations involved in the process of making a product or service available for use or
consumption.”
direct channel: selling to consumers directly. firms that use direct-response advertising,
telemarketing, or the Internet to sell their products
indirect channel: using a network of wholesalers (institutions that sell to other resellers) and/or
retailers (which sell primarily to the final consumer)
promotional push strategy: Programs designed to persuade the trade to stock, merchandise,
and promote a manufacturer’s products
trade advertising: to interest wholesalers and retailers and motivate them to purchase its
products for resale to their customers.
promotional pull strategy: spending money on advertising and sales promotion efforts directed
toward the ultimate consumer.
Chapter 3: Organizing for Advertising and Promotion: The Role of Ad
Agencies and Other Marketing Communication Organizations
KEY TERMS
Clients: the advertisers
advertising agency: an outside firm that specializes in the creation, production, and/or placement
of the communications message and that may provide other services to facilitate the marketing
and promotions process.
media organizations: The primary function of most media is to provide information or
entertainment to their subscribers, viewers, or readers. But from the perspective of the
promotional planner, the purpose of media is to provide an environment for the firm’s marketing
communications messages. The media must have editorial or program content that attracts
consumers so that advertisers and their agencies will want to buy time or space with them
specialized marketing communication services: They include direct-marketing agencies, sales
promotion agencies, digital/interactive agencies, and public relations firms.
collateral services: the wide range of support functions used by advertisers, agencies, media
organizations, and specialized marketing communication firms.
advertising manager: responsible for all promotions activities except sales (in some companies
this individual has the title of marketing communications manager).
in-house agency: an advertising agency that is set up, owned, and operated by the advertiser
centralized system: In the most common example of a centralized system, the advertising or
marcom manager controls the entire promotions operation, including budgeting, coordinating
creation and production of ads, planning media schedules, and monitoring and administering the
sales promotions programs for all the company’s products or services.
decentralized system: separate manufacturing, research and development, sales, and marketing
departments for various divisions, product lines, or businesses
brand manager: responsible for the total management of the brand, including planning,
budgeting, sales, and profit performance
category management system: additional layer(s) of management above the brand managers to
coordinate the efforts of all the brand managers handling a related group of products. This
system—generally referred to as a category management system—includes category managers
as well as brand and advertising managers. The category manager oversees management of the
entire product category and focuses on the strategic role of the various brands in order to build
profits and market share.
Billings: the amount of client money agencies spend on media purchases and other equivalent
activities
Superagencies: During the late 1980s and into the 90s, the advertising industry underwent major
changes as large agencies merged with or acquired other agencies and support organizations to
form large advertising organizations, or superagencies. These superagencies were formed so
that agencies could provide clients with integrated marketing communications services
worldwide.
full-service agency: offers its clients a full range of marketing, communications, and promotions
services, including planning, creating, and producing the advertising; performing research; and
selecting media. A full-service agency may also offer non-advertising services such as strategic
market planning; sales promotions, direct marketing, and digital/interactive capabilities; package
design; and public relations and publicity.
account executive: responsible for understanding the advertiser’s marketing and promotions
needs and interpreting them to agency personnel.
account planner: individuals that gather information that is relevant to the client’s product or
service and can be used in the development of the creative strategy as well as other aspects of
the IMC campaign.
Copywriter: The individuals who conceive the ideas for the ads and write the headlines,
subheads, and body copy
departmental system: each of the agency functions shown in Figure 3–6 is set up as a separate
department and is called on as needed to perform its specialty and serve all of the agency’s
clients.
group system: individuals from each department work together in groups to service particular
accounts.
creative boutique: small ad agencies that provide only creative services and have long been an
important part of the advertising industry.
media specialist companies: organizations that specialize in the buying of media, particularly for
television and digital advertising.
programmatic buying: wide range of technologies that are automating the buying, placement,
and optimization of advertising media
commission system: the agency receives a specified commission (usually 15 percent) from the
media on any advertising time or space it purchases for its client
negotiated commission: the commissions average from 8 to 10 percent or are based on a
sliding scale that becomes lower as the clients’ media expenditures increase.
fixed-fee method: the agency charges a basic monthly fee for all of its services and credits to
the client any media commissions earned. the media commissions received by the agency are
credited against the fee. If the commissions are less than the agreed-on fee, the client must make
up the difference. If the agency does much work for the client in non-commissionable media, the
fee may be charged over and above the commissions received.
fee–commission combination:
cost-plus system: the client agrees to pay the agency a fee based on the costs of its work plus
some agreed-on profit margin (often a percentage of total costs). This system requires that the
agency keep detailed records of the costs it incurs in working on the client’s account. Direct
costs (personnel time and out-of-pocket expenses) plus an allocation for overhead and a markup
for profits determine the amount the agency bills the client
incentive-based system:
percentage charges: Another way to compensate an agency is by adding a markup of
percentage charges to various services the agency purchases from outside providers. These may
include market research, artwork, printing, photography, and other services or materials. Markups
usually range from 17.65 to 20 percent and are added to the client’s overall bill.
financial audit:
qualitative audit:
direct-marketing agency:
sales promotion agency:
public relations firm:
digital/interactive agency
Chapter 4
New chapter opener focuses on “Is Successful Branding Just about Emotions, Color, and
Emojis?”
Chapter 5
New chapter opener focuses on award winning “Like a Girl” viral campaign for Procter &
Gamble’s Always feminine protection product.
● Updated Digital and Social Media Perspective “Consumer Packaged-Goods Marketers Turn to
Digital Media” discusses role of digital and social media for low-involvement products
● Updated perspective on Elaboration Likelihood Model and research challenging its findings
Chapter 6
How Under Armour has been able to compete against larger competitors such as Nike and
Adidas in the battle to sign athletes to endorsement deals. Discusses UA endorsers such as NBA
basketball star Stephen Curry, golfer Jordan Spieth, MLB baseball star Bryce Harper, and
ballerina Misty Copeland. Under Armour was featured in a video case study for the 10e that
focused on its IMC program for targeting women as well as its entry into the market for basketball
shoes; this video is available for use with the 11e as well.
● New IMC Perspective “Marketers Run into Problems with Athlete Endorsers” discusses
problems Nike has had with some of its high-profile endorsers such as Maria Sharapova, Tiger
Woods, Lance Armstrong, and others
● New Digital and Social Media Perspective “YouTube Stars Are the New Celebrities to Teens”
discusses implications for marketers
Chapter 7
New chapter opener reviews “Changing Media Habits Means Changing Budget Allocations. Is
Digital the New King?” and discusses whether the rush to digital media is the best strategy using
examples of how traditional companies like Hershey are changing their media strategies.
● New Digital and Social Media Perspective “Are Social, Digital, and Mobile Media Changing
the Ways Marketers Use Consumer Funnels—Or Are These Funnels Even Relevant?” Examines
how some companies no longer feel consumer funnels are relevant
● New IMC Perspective “Companies Like Coca Cola, Kraft, P&G, and 7UP Believe That
Advertising Works” discusses how during periods of decreasing sales or economic downturns
many successful companies increase, rather than decrease, media expenditures
Chapter 8
Focuses on IMC program used by Intuit’s TurboTax tax preparation software and creative
advertising developed for the brands such as the “It Doesn’t Take a Genius to Do Your Taxes”
campaign. TurboTax is one of the companies/brands being featured in the new video cases for
11e.
● New Digital and Social Media Perspective that discusses the top ad campaigns of the 21st
century and how they are moving beyond traditional media and using social media
● Additional new Digital and Social Media Perspective that focuses on how the move toward
digital advertising is creating a need for speed and challenging the pretesting of creative work
Chapter 9
Focuses on the Coca Cola Company’s DASANI brand of bottled water, and how creative
advertising has helped the brand become the market leader and led to several new line
extensions, such as DASANI Drops® and DASANI Sparkling water. DASANI is one of the
companies/brands being featured in the new video cases for 11e.
● New Digital and Social Media perspective “Marketers Use Virtual Reality to Create Immersive
Experiences for Consumers” focuses on how AT&T has used VR to help deter texting and
driving, and how retailers and professional sports teams are using the technology for creative
experiences for customers and fans
● Updated IMC Perspective on IMC program for fastfood chain Taco Bell and its “Live Más”
campaign which led to company being selected as Marketer of the Year by Advertising Age in
2013. Taco Bell was featured in a video case study for the 10e and this video is available for use
with the 11e as well.
● New section added to the 11e on Creative Tactics for Online Advertising that includes
discussion of tactics for online display advertising as well as online video
● New Digital and Social Media Perspective on awardwinning “Unstoppable” campaign created
by the Martin Agency for GEICO insurance; this campaign won all of the major creative awards in
2016
Chapter 10
“Programmatic: Advertising’s Newer, Better Mousetrap—Is Buying Better with Robots?” describes
and examines the hottest new means of purchasing media today and the pros and cons of
programmatic media buying
● Updated figure on leading national advertisers
● New explanation of how to read an MRI+ report, written and provided by GfK-MRI
● New figure on media usage by snowboarders reflecting more digital media usage
● New IMC Perspective “Being Social, Cosmopolitan, and Other Factors May Determine Which
Media You Use” [Show Less]