IMC: The New Principles of Advertising and Promotion, 2/e
Tom Duncan,
University of Colorado/Boulder
ISBN: 0072537744 Copyright year: 2005
Book Preface
To Professors
Advertising, as you know, is changing. That is why this textbook is about advertising and IMC. It includes all the key advertising principles and practices plus the integration process that maximizes advertising's effectiveness. IMC—integrated marketing communication—is no magic wand or silver bullet but simply the process of advertising, promotions, and media working together in strategic and effective ways. As the following excerpts attest, integration is no longer just a buzzword. Integration is now the foundation of most major advertising and promotion efforts.
In a study of 273 major U.S. companies, 43 percent said having one agency that could offer fully integrated services was "very important."
Advertising Age, June 10, 2003 (AdAge.com).
According to the CEO of MVBS, "We needed to get people to buy into the fact that there was a larger idea that was better for everyone . . . The larger idea, of course, is integrated marketing services for clients."
Advertising Age, March 16, 2003 (AdAge.com).
Ogilvy & Mather was named Agency of the Year because it "soared creatively, packed a powerful new-business punch, and excelled at creating integrated programs for a roster of blue-chip clients."
Advertising Age Special Report, January 14, 2002, pp. 1, S1.
According to Don Calhoun, executive VP of marketing for Wendy's: "It is important for us at Wendy's to have all of our resources integrated under one roof . . . integration produces the best results."
Wall Street Journal, August 16, 2002, p. B5.
McCann's newest strategic planning tools "address the marketing landscape shift of the late 1990s, when print ads and TV spots went from being the primary communication channels to being simply two channels among many that also included event marketing, e-marketing, PR, and relationship marketing."
Advertising Age, March 18, 2002, p. C26.
Publicis CEO Maurice Levy "ensures that all [marketing communication] disciplines are combined from the beginning of the process, avoiding the fragmented model we're used to seeing as the end product of poor integration. To put it simply, the brand communication is born of the whole."
Advertising Age, March 4, 2002, p. 30.
This text (like every other major textbook written for the introductory course in advertising) includes coverage of industry organization, customers' buying behavior, segmenting and targeting, and positioning, along with explanations of the marketing communication (MC) functions and media. However, to these fundamentals, Principles of Advertising & IMC adds a thorough treatment of the practices critical to building customer relationships and brands. Presented here are the IMC concepts and processes used by companies that truly put the customer first. IMC is about integrating marketing and communication.
If you agree that advertising and promotion should be taught from an integrated perspective, check the subject index of your current textbook to see how much coverage is given to these critical integration practices:
Brand/customer touch points (intrinsic, unexpected, company created, customer created).
Branding, brand building, and brand equity.
Customer retention and lifetime customer value.
Two-way, interactive communication.
Construction and use of databases.
Brand messages rather than marketing communication messages.
Cross-functional organization.
SWOT analyses (internal strengths and weakness, external opportunities and threats).
Zero-based planning.
Customer service and its communication role in retaining customers.
Relationship metrics.
If those topics are not covered in your current textbook (or are mentioned only briefly), your students are receiving only part of the big picture of how advertising is being practiced today.
Content "Quality Control"
In preparation for the development of this revision, the first edition was reviewed by a panel of professors who had adopted and used the text, as well as by a group who had used competing textbooks. At the same time, two groups of students were asked to give their anonymous feedback on the book. In response to the input from both professors and students, the first edition was revised, and the new version was sent to a second panel of professors for review. Because of this triple set of reviews, the text you are now holding is as current and accurate as it could possibly be.
As a result of this feedback and re-writing, the new edition differs from its predecessor in many important ways. Key topics are explained in a more clear and concise manner. The discussion of management issues has been streamlined, and the number of visuals and examples has increased. A discussion of channel marketing has been added. More explanation is given to customer service and its impact on customer retention. More explanation also is given to personal selling. Direct response appears in its own chapter. And the IMC model has been simplified.
Because of the rigorous reviews, we are confident that Principles of Advertising & IMC provides the most contemporary textbook discussion of advertising and IMC. Using many examples and cases, the book explains what smart companies and marketing communication agencies are doing to build customer relationships and brands.
Acknowledgments
A book like this is possible only with the help and input of many people. I am indebted most to my wife, friend, and academic colleague, Professor Sandra Moriarty. Her wisdom and advice over the years have been invaluable to my development of an IMC concept and process. Her patience and understanding during the writing of this book are impossible to repay.
A big thanks to Steve Patterson, the McGraw-Hill/Irwin sponsoring editor who originally signed this book. His confidence and foresight regarding the academic and professional importance of IMC gave birth to the book's production. Thanks to Linda Schreiber, executive editor, who very professionally managed the development and revision of the book along with Sarah Crago, who diligently managed the day-to-day logistics and paid close attention to the many details so necessary in producing a book package of this nature. Thanks to Laura Edwards for editing and giving many suggestions for ways to make the content more accessible to students. Thanks to Kristen Meador for research and editing assistance. Thanks also to the production team at McGraw-Hill: Susanne Riedell, project manager; Matt Baldwin, designer; Jeremy Cheshareck, photo coordinator; and Rose Range, supplement producer. The time and energy they contributed to the production of the second edition are priceless.
Others who made significant contributions, for which I am extremely grateful, are
Peggy Bronn, Professor of Marketing, BI School of Business, Oslo, Norway.
Clarke Caywood, Former Director, IMC Graduate Program, Northwestern University.
Ed Chambliss, Team Manager, The Phelps Group.
Bob Davies, Vice President, Price/McNabb.
Michelle Fitzgerald, Connection Planner, Fallon.
Mark Goldstein, Fallon's Worldwide Director of Integrated Marketing.
Richard Goode-Allen, Assistant Professor, University of Colorado-Boulder.
Amy Hume, Media VP, Leo Burnett.
David Miln, marketing communication and brand consultant, London.
Marieke de Mooij, international cultural marketing consultant, the Netherlands.
Joe Plummer, Executive Vice President, Director of Brand Strategy and Research, McCann-Erickson World Group.
Don Schultz, founder of Northwestern University's IMC program.
Karl Weiss, President, Marketing Perceptions Inc.
Thanks to the following people who reviewed the first edition or manuscript drafts in various stages and provided insights, commentary, and suggestions that enhanced the quality and usefulness of this text:
Janice Bukovac, Michigan State University
Jerone Christia, Coastal Carolina University
Douglas Allen Cords, California State University
Rama Jayanti, Cleveland State University
Tom Leach, University of New England
Terry Paul, Ohio State University
Carolyn Predmore, Manhattan College
Lopo Rego, University of Iowa
Vicki D. Rostedt, University of Akron
Richard Stafford, University of Kentucky
Sandra H. Utt, University of Memphis
Lara Zwarun, University of Texas
Richard Beltramini, Wayne State University
Newell Chiesl, Indiana State University
Jerry Conover, Northern Arizona University
Stevina Evuleocha, California State University-Hayward
Aron Levin, Northern Kentucky University
Sandy Lueder, Southern Connecticut State University
Esther Page-Wood, Western Michigan University
Corliss Thornton, Georgia State University
Terri Albert, University of Hartford
Tiffany Barnett White, University of Illinois
Leila Collins, University of Maryland
Susan Mudambi, Temple University
Michelle Patrick, University of North Carolina
Eugene Secunda, New York University
Allen Smith, Florida Atlantic University
For Students
You've been doing it . . . and probably never realized it!
If you are like most college students (or just about anybody else), you have been "doing" advertising most of your life. Think about it. When you select your clothes, shoes, car, eyeglass frames, and everything else that's personal, chances are, one of your considerations is how you hope these things will make you look. Your decisions result in messages designed to say something about you to the people around you.
Some of the other "ads" that you have created and sent about yourself include where you work or go to school; the brand of bike, skis, snowboard, tennis racket, or golf clubs you use; how you react in certain situations (laugh, get angry, walk away); the things you do and the places you go to have fun; and the friends you hang around with. All these things, people, and behaviors send messages about you and impact to what extent others notice, like, and accept you.
Do you buy nonbranded things to signal that you are not materialistic and overly brand conscious? If you do, these selections and behaviors also send a message to others, just as traditional advertising does. Face it: From a marketing perspective, you are a brand, with a certain identity and image that is being constantly reinforced or changed by the decisions you make.
Just like you, IBM, McDonald's, Ford, Starbucks, and most other companies want to be liked—and want their products to be liked and accepted. Every day companies make decisions that affect how others perceive them. They pay a lot of attention not only to what their advertising says but also to the messages communicated by the design of their packages, by their employees' uniforms, and even by the design of their places of business. Like you, companies are aware that how they talk to customers and other stakeholders "advertises" something very important about them. They know that everything they do, and sometimes what they don't do, can send a powerful brand message.
This book explains how companies develop identities, images, and brands that create customer relationships that in turn produce sales and profits.
What Does "Advertising" Mean?
Several years ago, a global advertising agency, Leo Burnett, showed a sample of consumers a wide range of brand messages—a TV commercial, a magazine and newspaper ad, a direct-mail offer, a coupon, a recording of a telemarketing call, a picture of a sponsored event, a news story that said good things about a company or brand, and a package with an appetizing picture of the product inside. When asked to characterize these brand messages, the majority of consumers said they were all examples of "advertising," things companies use to persuade customers to like them and buy their products. They used advertising as an umbrella term referring to a variety of brand messages.
The word advertising is used in the same broad way in the title of this book (and many competing textbooks) because the book includes chapters on sales promotion, direct response, public relations, and events and sponsorships. Although consumers may call all persuasive messages "advertising," the umbrella term in this book is not advertising but marketing communication. Why? Because in the industry, mass media advertising is considered to be just one of many marketing communication functions.
What This Book Is All About
Because advertising, public relations, sales promotion, direct marketing, and the other MC functions have become so sophisticated, and the media so fragmented, commercial message clutter has significantly increased. As a result, companies find it extremely challenging to reach prospects and retain current customers. At the same time, emerging communication technologies, especially the internet, have greatly empowered customers by providing them with more ways in which to talk back to companies. Interactive media are available around the globe.
The difference between brand messages and media continue to blur as we see increased use of product placements, events, sponsorships, and brand-driven editorial content. The use of databases and computers to segment and profile customers is becoming more pervasive, easier, and less costly.
As a result of these new ways of communicating, customers have become more business-savvy and have higher expectations than ever before. This has resulted in fierce competition among brands and in top management demanding even greater accountability for how advertising and promotion budgets are spent. This textbook explains advertising and promotional practices within this marketplace environment—the real world.
The old marketplace motto "Caveat emptor" ("Let the buyer beware") has become obsolete. Today, a more accurate axiom is "Let the company beware." Recognizing this change, smart companies intensify their efforts to integrate their marketing communications and all other brand messages, because doing so is the most cost-effective way to build brand relationships and brand value.
Every business is unique, so advertising and promotions for every situation will be different. Nevertheless, there are basic principles and practices on which all advertising and promotion planning should be based. The overall objective of this book is to help you understand the various marketing communication functions, the major media alternatives, and the processes for integrating these activities in the most effective and efficient way in order to develop long-term, profitable brand relationships that build brands and create brand equity.
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2005 McGraw-Hill Higher Education