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Integrated Marketing Communications

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Prasad Naik at University of California, Davis
Prasad Naik
Ph D Gallagher
Ph D Gallagher
Ph D Gallagher
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Abstract

Advertising transforms commodities (e.g., cars, chips, and computers) into brands (e.g., BMW, Pentium, Dell). By building strong brands, it enables companies to charge price premiums, gain competitive advantage, and sustain long-run profitability. Consequently, companies typically spend several millions dollars on marketing communications and, collectively, they spend about $250 billion each year on advertising alone ⎯ a sum that exceeds the gross domestic product (at purchasing parity) of 85% of the nations of the world, which includes the developed economies like Switzerland, Hong Kong, and Singapore. In this course, we will cover issues of designing and implementing advertising and promotional plans. Specifically, we study the institutional aspects of advertising, consumer behavior, assessing ad effectiveness and allocation, creative strategy, use & abuse of consumer and trade promotions, PR & placement, social media and the emerging media landscape. We will discuss the role of "integrating" all the marketing communication activities (e.g., television, print, PR, direct mail, and the new media) to achieve synergistic impact. The course focuses on managerial aspects of decision-making for building brands profitably. Class Objectives 1. To learn institutional aspects of advertising: agency structure, functions, compensation, evaluation, and agency-client relationship 2. To set advertising objectives, measuring ad effectiveness, budgeting methods 3. To study various creative styles, and when to use which ones 4. To know various types of consumer and trade promotions, when to use which ones, and potential problems and abuse 5. To understand media landscape (both the old and the new) and how to achieve synergy via an "integrated" strategy.
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MGB 242
Spring 2010
1
Integrated Marketing Communications
Prasad A. Naik, Ph. D.
Gallagher Hall 3314
Call 754 9834 or email panaik@ucdavis.edu
Class Meetings: Fridays, 2-5 & 6-9 pm on Apr. 2, 16, 30, May 14, May 28.
Course Outline
Course Description
Advertising transforms commodities (e.g., cars, chips, and computers) into brands
(e.g., BMW, Pentium, Dell). By building strong brands, it enables companies to charge
price premiums, gain competitive advantage, and sustain long-run profitability.
Consequently, companies typically spend several millions dollars on marketing
communications and, collectively, they spend about $250 billion each year on advertising
alone ⎯ a sum that exceeds the gross domestic product (at purchasing parity) of 85% of
the nations of the world, which includes the developed economies like Switzerland, Hong
Kong, and Singapore.
In this course, we will cover issues of designing and implementing advertising
and promotional plans. Specifically, we study the institutional aspects of advertising,
consumer behavior, assessing ad effectiveness and allocation, creative strategy, use &
abuse of consumer and trade promotions, PR & placement, social media and the
emerging media landscape. We will discuss the role of “integrating” all the marketing
communication activities (e.g., television, print, PR, direct mail, and the new media) to
achieve synergistic impact. The course focuses on managerial aspects of decision-making
for building brands profitably.
Class Objectives
1. To learn institutional aspects of advertising: agency structure, functions,
compensation, evaluation, and agency-client relationship
2. To set advertising objectives, measuring ad effectiveness, budgeting methods
3. To study various creative styles, and when to use which ones
4. To know various types of consumer and trade promotions, when to use which ones,
and potential problems and abuse
5. To understand media landscape (both the old and the new) and how to achieve
synergy via an “integrated” strategy.
Class Administration
Classes consist of lectures, cases, articles, projects, and guest speaker. Lectures
provide concepts and principles of advertising, promotions, direct marketing, and IMC.
MGB 242
Spring 2010
2
Cases are used to develop the skills in problem-solving. Students are expected to
carefully read and thoroughly analyze the assigned case, consider information available
at the time of the case event, identify the relevant issues, generate alternatives, and
recommend actions. Articles are written by leading scholars in the specific topics and
furnish literature reviews or discuss the state-of-the-art issues.
Project . A small group of students will form teams (~ 5 or less), and each team
will identify a topic of interest related to advertising, promotion, database marketing, or
emerging media (e.g., blogs, social network, web-chatter). For example, what
characteristics of YouTube videos help or hurt viewership? How to manage marketing
communications before, after and during a product harm crisis (e.g., Toyota’s “moving
forward”!). To not restrict your creativity, I do not provide further examples of topics.
The teams will choose a topic (and get go/no-go from me) and then do research on it to
provide valuable information, fresh perspectives, and/or new insights. A final report and
its presentation will summarize your findings.
Grading
25 points Class participation and quality of discussions
25 points Mid-term Exam
25 points Final Exam
25 points Project
Course Packet: Required readings as below:
1. Mountain Dew Case, by Douglas B. Holt, Oct 05, 2001, Product number: 502040-
PDF-ENG.
Description: The key role of selecting creative in brand communications, the
problems with building a brand in a turbulent cultural environment, the challenges
of extending an advertising campaign, and the senior management skills needed
to interpret ads are highlighted.
2. “Optimal Marketing,” by Corstjens and Merrihue, HBR article, Oct. 01, 2003,
Product number: R0310H-PDF-ENG.
Description: Samsung Inc. determines how to allocate billion dollars to various
marketing activities and regions by using hard data, not intuition. Marketing
executives undertook an intensive 18-month project to gather diverse and detailed
information about more than 400 possible product-category and country
combinations. It collected all that data in a single, easy-to-access site and used the
software's analytical power to predict the impact of different allocation scenarios.
Such what-if testing enables management to find the budget allocation that will
yield the highest total marketing ROI. Samsung also worked to anticipate and
defuse organizational resistance to change.
MGB 242
Spring 2010
3
3. Giant Consumer Products: The Sales Promotion Resource Allocation Decision,
Nov 13, 2009, Product number: 4131-PDF-ENG.
Description: This case focuses on major strategic issues that firms face when
formulating and implementing a sales promotion, including: cannibalization,
brand equity erosion, forward-buying, pass-through, and consumer stockpiling.
Based on calculating top-line revenue, marketing margin, and return on marketing
investment (ROMI) for prior promotions, students can recommend the most
financially and strategically defensible initiative from a choice of several
competing sales promotions.
4. HubSpot: Inbound Marketing and Web 2.0, by Thomas Steenburgh, Jill Avery,
and Naseem Dahod, May 28, 2009, Product number: 509049-PDF-ENG.
Description: This case introduces the concept of inbound marketing, pulling
customer prospects toward a business through the use of Web 2.0 tools and
applications like blogging, search engine optimization, and social media. Students
follow the growth of HubSpot, an entrepreneurial venture which, in its quest for
growth, faces significant challenges including: developing market segmentation
and targeting strategies to decide which customer to serve and which to turn
away, and determining whether inbound marketing programs can generate enough
scale or traditional outbound marketing methods are needed to accelerate growth.
5. “Public Relations Comes of Age,” by David Robinson, Business Horizon (2006),
49, 247-256.
Description: Public relations (PR) is an important component of a firm's
integrated marketing communications strategy. This paper defines contemporary
PR practices and develops rules for successful implementation.
6. “Integrated Marketing Communications: Provenance, Practice and Principles,” by
Prasad Naik, Handbook of Advertising, 2007.
7. “RFID at the METRO Group” by Zeynep Ton, Vincent Dessain, Monika
Stachowiak-Joulain, Apr 01, 2009, Product number: 606053-PDF-ENG.
Description: Introduces radio frequency identification (RFID) as the next
generation of automatic identification technologies. Showcases the use of
technology by the world’s third-largest retailer. Foreshadows the shape of things
to come for in-store Marketing Communications in the 21st Century.
Optional Texts (Need not buy)
1. Advertising and Promotion: An IMC Perspective , Belch and Belch, any
reasonably recent edition.
2. Effective Advertising, by Gerard Tellis, Sage Publications, 2004.
... For other areas of activities and services defined by the extant mission, either a marketing or sales orientation may be appropriate. A similar position regarding the role of marketing in public organizations was taken by Hutton (1996) who recommended reconsideration of the fallacious understanding of relationships between marketing and public relations suggested by Kotler & Mindag (1978). Comparing Kotler's definition of generic marketing with definitions of integrated marketing communications (IMC) and relationship marketing, Hutton (1996) found them to be almost identical and, that all of them were, ‚a definition of public relations, as it has been practiced by more enlightened organizations for decades‛ (p. ...
... A similar position regarding the role of marketing in public organizations was taken by Hutton (1996) who recommended reconsideration of the fallacious understanding of relationships between marketing and public relations suggested by Kotler & Mindag (1978). Comparing Kotler's definition of generic marketing with definitions of integrated marketing communications (IMC) and relationship marketing, Hutton (1996) found them to be almost identical and, that all of them were, ‚a definition of public relations, as it has been practiced by more enlightened organizations for decades‛ (p. 158). ...
... Hutton suggested that public organizations adopt a ‚separate but equal‛ model of relationships between public relations and marketing. Consistent with Capon & Mauser (1982), Hutton (1996) suggested that public relations was the appropriate vehicle for implementing persuasion and the core mission, while marketing was more appropriate for the extant mission with its focus on physical distribution, capacity utilization, new product development, and the like. ...
A Critical Appraisal of the Conceptualization of Public Park and Recreation Marketing
Book
Full-text available
  • Jul 2018
The objectives of the study were (a) to identify the reasons and concerns of those public administrators and marketing scholars who do not accept the usefulness of marketing in the public sector; (b) to deconstruct, comprehend, interpret, and critically appraise the current conceptualization of public sector marketing from the viewpoint of negativists identified in step (a); and (c) to reconstruct, redefine, reinterpret, and reoperationalize the current controversial conceptualization of public sector marketing into a new conceptualization in the context of park and recreation services. The critical theory approach to the study primary used non-empirical procedures data collection and analytic procedures which included investigative research, negative case analysis, and theoretical triangulation. These procedures were supplemented with empirical data collected from in-depth interviews with five scholars and with three parks and recreation managers. Results of the non-empirical procedures revealed the biased selective nature of the current conceptualization of public park and recreation marketing and the existence of alternative conceptualizations which have been ignored. The existing and alternative models were discussed with scholars and park and recreation managers. Support was found for the alternative models. From these data an alternative conceptualization of public park and recreation marketing was developed and named the concept of administered marketing. Implications for park and recreation managers are discussed. Directions for future research into the administratively managed park and recreation marketing concept are suggested.
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... Some authors have attempted to determine the most important factors resulting in higher levels of company integration. Specifically, certain aspects have been identified, such as: orientation towards the consumer and the market (Low, 2000); the commitment and implication of upper management (Porcu et al., 2012); the type and size of the same and the leadership position in the market ; the level of development of the marketing within the company (Kitchen et al., 2004). ...
... Source: own elaboration One noteworthy aspect is that, even though numerous authors (Low, 2000;Kitchen et al., 2004;Reid et al., 2005 andPorcu et al., 2012), have identified distinct criteria regarding the type of company that have an effect on its greater or lower level of integration, in this study no significant differences were found based on company size or activity sector. So, it appears that there is a generalized attitude among all of the studied companies with regards to integrated marketing communication. ...
Integrated marketing communication in the digital environment. Advertiser attitudes towards online communication techniques
Article
Full-text available
  • Dec 2019
The growth and development of the Information and Communication Technologies (ICT) has brought with it numerous communication techniques related to the online environment. It has also changed the way in which consumers consider business communication , demanding increased interaction and per-sonalization of the messages. In the face of this concept , it is increasingly necessary for companies to strategically coordinate and integrate the tools that are used in both on and offline channels. This study attempts to determine whether or not the online communication tools are integrated according to conventional techniques, and also whether they consider the consumer when it comes to defining communication strategies. To do this, an online survey was created for a national sample of 301 Spanish companies , representing distinct sizes and activity sectors. The primary results reveal, on the one hand, a very positive attitude was found between all of the of the surveyed companies, regardless of size or activity sector, towards integrated marketing communication , mostly between the digital communication techniques in terms of coordinating the messages that are sent out via a combination of on and offline channels. And, on the other hand, the actual communication integration level in companies is more tactical than strategic.
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... b. Identification of strategic issues and treatment of IMC concept more of a business process perspective rather than that of a simple coordination of marketing communication tools [6]. c. ...
... d. Measure and evaluate the effects of IMC [5][6]. ...
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New Digital Media Marketing and Micro Business
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  • Jan 2013
This paper considers innovative marketing within the context of a micro firm, exploring how such firm’s marketing practices can take advantage of digital media. Factors that influence a micro firm’s innovative activities are examined and the development and implementation of digital media in the firm’s marketing practice is explored. Despite the significance of marketing and innovation to SMEs, a lack of literature and theory on innovation in marketing theory exists. Research suggests that small firms’ marketing practitioners and entrepreneurs have identified their marketing focus on the 4Is. This paper builds on knowledge in innovation and marketing and examines the process in a micro firm. A qualitative approach is applied using action research and case study approach. The relevant literature is reviewed as the starting point to diagnose problems and issues anticipated by business practitioners. A longitudinal study is used to illustrate the process of actions taken with evaluations and reflections presented. The exploration illustrates that in practice much of the marketing activities within micro firms are driven by incremental innovation. This research emphasises that integrating Information Communication Technologies (ICTs) successfully in marketing requires marketers to take an active managerial role far beyond their traditional areas of competence and authority.
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New Digital Media Marketing and Micro Business
Chapter
  • Jan 2012
This paper considers innovative marketing within the context of a micro firm, exploring how such firm’s marketing practices can take advantage of digital media. Factors that influence a micro firm’s innovative activities are examined and the development and implementation of digital media in the firm’s marketing practice is explored. Despite the significance of marketing and innovation to SMEs, a lack of literature and theory on innovation in marketing theory exists. Research suggests that small firms’ marketing practitioners and entrepreneurs have identified their marketing focus on the 4Is. This paper builds on knowledge in innovation and marketing and examines the process in a micro firm. A qualitative approach is applied using action research and case study approach. The relevant literature is reviewed as the starting point to diagnose problems and issues anticipated by business practitioners. A longitudinal study is used to illustrate the process of actions taken with evaluations and reflections presented. The exploration illustrates that in practice much of the marketing activities within micro firms are driven by incremental innovation. This research emphasises that integrating Information Communication Technologies (ICTs) successfully in marketing requires marketers to take an active managerial role far beyond their traditional areas of competence and authority.
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ПРИМЕНЕНИЕ ТЕХНОЛОГИЙ ЦИФРОВОГО МАРКЕТИНГА НА ПАРФЮМЕРНО-КОСМЕТИЧЕСКОМ РЫНКЕ
Article
  • Oct 2018
Цель работы. Целью работы является анализ основных тенденций влияния формирующихся цифровых технологий на рынок парфюмерии и косметики, как в количественном, так и в качественном измерении. Метод или методология проведения работы. Применялся широкий спектр методов сбора фактического материала и его обработки, проведены собственные исследования особенностей потребительского поведения на основе первичных источников информации. Проанализированы данные мониторинга и анализа отраслевых и общеэкономических событий в России и мире ведущих аналитических агентств. Результаты. Исследование включает описание тенденций развития российского и зарубежного парфюмерно-косметического ритейла, что позволяет сравнить развитие российского рынка с рынками других стран, выявить аналогии и построить прогноз развития. На основе анализа вторичных данных выявлены ключевые направления дальнейшего развития парфюмерно-косметического ритейла. Сделан вывод о том, что развитие интернет-технологий вынуждает бизнес перестраивать маркетинговую стратегию под изменившуюся внешнюю среду и активно использовать digital-инструменты, принципиально менять свою систему маркетинговых коммуникаций, формировать виртуальную инфраструктуру бизнеса, развивать интернет-маркетинг, управление взаимоотношениями с клиентами на основе CRM-систем, внедрять маркетинг-аналитику (или бизнес-аналитику) и т. п. Развитие цифровых технологий приводит к тому, что важным фактором конкурентоспособности становится скорость ведения бизнеса, внешней и внутренней логистики, бизнес-процессов, принятия и реализации управленческих решений. Область применения результата. Результаты проведенного исследования могут быть использованы в качестве рекомендаций российскими компаниями по использованию возможностей интернет-технологий для роста бизнеса. Выводы. Развитие цифровых технологий и меняющиеся потребительские тренды приводят к необходимости использования digital-инструментов маркетинга для успешного развития бизнеса.
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