Chap00001_An Introduction to IMC - Copy

7/30/2019 Chap00001_An Introduction to IMC - Copy

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An Introduction to

Integrated MarketingCommunications


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Integrated marketing communication


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IMC is Marketing &Promotional Mixes

Marketing Mix:

Product or ServicePricing

Channels of Distribution

Promotion

Promotional Mix:Advertising

Direct Marketing

Interactive/internet marketingSales Promotion

Publicity/Public Relations

Personal Selling


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Definition of

Integrated MarketingCommunications


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Definition of IntegratedMarketing Communications

A concept of marketing communicationsplanning that recognizes the added value

of a comprehensive plan that evaluates

the strategic roles of a variety ofcommunication disciplines and combines

these disciplines to provide clarity,

consistency and maximumcommunications impact.


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Definition of IntegratedMarketing Communications

A marketing communications planning

concept that recognizes the value of acomprehensive plan.

A plan that evaluates the strategicroles of several communications

disciplines: Media advertising

Direct marketing

Interactive/internet marketing

Sales promotion Publicity/Public relations

Combines the disciplines to provide: Clarity, Consistency

Maximum communications impact


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Reasons for the

GrowingImportanceof IMC

f i


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Reasons for growing Importanceof IMC.

1.A very fundamental reason isthat they recognized the value ofstrategically integrating the variouscommunication functions rather

than having them operateautonomously. The move alsoreflects an adaptation by marketers

to a changing environment,particularly with respect todemographics, lifestyles, mediause, and shopping patterns.


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2.The IMC movement is alsobeing driven by a marketingrevolution that is changingthe ways companies market

their products and services.

Major characteristics of this

marketing revolutionincludes:..


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Ashifting of marketing dollars/rupees

from media advertising to other formsof promotion particularly trade-orientedsales promotion.

A movement away from just relying onlyon advertising-it shifted more onfocused approaches, which emphasizemass media to solve communication

problems and more attention to smaller,targeted media alternatives.

A shift in marketplace power frommanufacturers to retailers.


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Due to consolidation (merger) in the

retail industry, small local retailersare being replaced by large regional,national, and international chainsthat are using their power to

demand promotional fees andallowances. (Subway Macdonald)

Retailers are also using newtechnologies which is prompting

many marketers to shift their focusto promotional tools that canproduce short term results, such assales promotion.


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The rapid growth and

development of databasemarketing is prompting manymarketers to target consumers

through a variety ofdirect-marketing methods such astelemarketing, direct mail and

direct response advertising.


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Demands for greater

accountability fromadvertising agencies andchanges in the way agenciesare compensated which aremotivating agencies toconsider a variety ofcommunication tools and lessexpensive alternatives to

mass media advertising.


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The rapid growth of the

Internet is also changing thevery nature of howcompanies do business andthe ways they communicateand interact with consumers.


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This marketing revolution isaffecting everyoneinvolved in the marketing

and promotional process,it has had even greaterimpact on the changing

role oftraditionaladvertising agencies.


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Many agencies haveresponded by acquiringpublic relations, sales

promotion, directmarketing firms, andinteractive agencies and

publicize their capability tomeet all of their clientsIMC needs.


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The Role of IMC inBranding

Power of DifferentBrands


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The Role of IMC in Branding

one of the major reasons

for the growingimportance of IMC is that

it plays a major role inthe process ofdeveloping

and sustaining brandidentity and equity.


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What isBrand Identity and Brand Equity?


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Brand identity is a combination of

many factors including the name,logo, symbols, design, packaging,and performance of a product orservice as well as the associations,attachment that come to mind whenconsumers think about a brand.It isthe sum of all points ofcontact that

consumers have with a brand whichincludes the various forms ofIntegrated Marketing Communication

used by a company.

What is Brand identity?


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BrandIdentity


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Case let in Sodas and FedEx

Sodas

FedEX


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What is Brand Equity?


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What is Brand Equity?

Brand equityis an intangibleasset that depends on

associations made by the

consumer. There areat least three perspectives

from which to view brandequity:


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1.Financial - One way tomeasure brand equity is todetermine the price

premium that a brandcommands over a genericproduct.


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2.Brand extensions

A successful brand can be used asa platform to launch related products.

The benefits of brand extensions isleveraging of existing brandawareness and thus reducing

advertising expenditures, anda the lower risk from consumers theperspective. (Nirma)


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3.Consumer-basedA strong brand increases the consumer's

attitude strength toward the productassociated with the brand.

Attitude strength is built by experiencewith a product. This importance of

actual experience by the customerimplies that trial samples are moreeffective than advertising in the earlystages of building a strong brand.

The consumer's awareness andassociations lead to perceived quality,inferred attributes (indirect features ),and eventually, brand loyalty.


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The promotional mix

The tools for IMC


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Promotion is defined as the coordination of all

seller-initiated ( retailer,manufacturer,vendor )efforts to set up channels of information and

persuasion to sell goods and services or

promote an idea.

Promotion is best viewed as the communication

function of marketing by putting promotional mix

together in IMC form and other marketingelements such as brand name, package design,

price or retail outlets implicitly (completely)

communicates with consumers.

The Role of Promotion


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In majority of the organizations

communication with the

Marketing takes place through

a carefully planned andcontrolled promotional

programwhich utilizes elements

of the promotional mix.


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The promotional mix is

defined as thebasic tools orelementsthat are used to

accomplish organizations

objectives.

Now Lets discuss role andfunction of each promotional mix

element with its advantages and

limitations.

El t f P ti l Mi


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Elements of Promotional Mix

You have studied in detail

AdvertisingDirect

Marketing

Interactive/Internet Marketing

Sales

PromotionPublicity/Public

Relations

Personal Selling


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PROMOTIONAL MANAGEMENT

Elements of Promotional Mix

AdvertisingDirect

Marketing

Interactive/

Internet Marketing

Sales

PromotionPublicity/Public

Relations

Personal Selling

Promotional management


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Promotional management should

be defined as the process of

coordinating the promotional

mix elements to develop a

controlled and integrated program

of effective marketing

communication.Promotional Management involves

Various decision areas such as:

Promotional management


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which promotional tools to use andhow to combine them effectively

determining the size of anddistributing the advertising and

promotional budget (Allocation)

determining the influence ofvarious factors on the promotional

mix including the type of product,target market, decision process ofthe buyer, stage of the product lifecycle, and channels of distribution

P omotional planning p ocess


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Promotional planning process

The promotional plan provides a

framework for developing,implementing, and controlling an

organizations integrated marketing

communication program and

activities.

The steps in the Integrated Marketing

Communications Planning Modelinclude:..

Integrated Marketing Communications Planning Model


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Promotional Program Situation Analysis

Analysis of the Communications Process

Budget Determination

Develop Integrated Marketing Communications Programs

Review of Marketing Plan

Advertising SalesPromotion

PR/Publicity

PersonalSelling

DirectMarketing

AdvertisingObjectives

SalesPromotionObjectives

PR/Publicity

Objectives

PersonalSelling

Objectives

DirectMarketingObjectives

MessageStrategy

SalesPromotionStrategy

PR/PublicityStrategy

PersonalSelling

Strategy

DirectMarketingStrategy

Integration & Implementation of Marketing Communications Strategies

Monitor, Evaluate & Control Promotional Program

Internet/Interactiv

Internet/InteractivObjective

Internet/Interactiv

Strategy



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IMC Planning Model.doc

Reviewing the Marketing Plan
http://localhost/var/www/apps/conversion/releases/20121120192253/tmp/scratch_4/MODELS/IMC%20Planning%20Model.dochttp://localhost/var/www/apps/conversion/releases/20121120192253/tmp/scratch_4/MODELS/IMC%20Planning%20Model.doc


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Its the first step in IMC planning process to

review the marketing plan and objectives.

Before developing marketing plan marketersmust understand where the company has beenand what's its current position in the market,

where it intends to go and how it plans to getthere.

All information should be contained in the

marketing plan a written document thatdescribes the overall marketing strategy andprograms developed for a company, product orbrand

Elements of Marketing plan


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Elements of Marketing plan

Marketing plans can take several forms but

generally include five basic elements.1.A detailed situation analysis

2. Specific marketing objectives

3. A marketing strategy and program thatincludes selection of a target market and plans

for marketing mix elements

4. A program for implementing the marketingstrategy

5. A process for monitoring and evaluatingperformance of Marketing Strategy Mast Drink
http://localhost/var/www/apps/conversion/releases/20121120192253/Mast_Drink.mp4http://localhost/var/www/apps/conversion/releases/20121120192253/Mast_Drink.mp4


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Situation Analysis

Situation Analysis Internal Factors


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Situation Analysis Internal Factors

1 .Internal Factors

Assessment of the firms organization ofpromotional programs , its inbuilt capacityand capabilities

Review of the firms previous promotional

programs Assessment of firms or brand image and

implications for promotion

Assessment of relative strengths andweaknesses of product/service(comparative studies from global and localmarket and position of their company.)


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2.External FactorsCustomer analysis

Competitive analysisEnvironmental analysis

Situation Analysis


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yExternal Factors

Customer Analysis

Who buys our product or service? Who initiates and makes the decision

to purchase and who influences the process? How is the purchase decision made?

What features or criteria are important tocustomers? What are customers perceptions of and

attitudes toward our company, product/serviceor brands?

What factors influence the decision makingprocess? (Antwrep,Blegium..catchup)

Contact points where customers can bereached?

IMC Program Situation Analysis


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g yExternal Factors

Competitive Analysis Direct and indirect competitors

Key Benefits and positioning

used by competitors Our Position relative to

competitors

Size of competitorsadvertising/promotional budgets

IMC strategies being used bycompetitors

IMC Program Situation Analysis


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g yExternal Factors

Environmental analysis

TechnologicalPolitical/Legal

Demographic Socio/Cultural

Economic


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Analysis ofCommunications Process

Analysis of Communications Process


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Analysis of Communications Process

Analyze response process of customers

will go through in responding marketingcommunication. (tataneno SBI Registration)

Analyze best combination of source,

message and channel factors forcommunicating with target audience.

(What is the message and what mix we needto use for maximum impact)

Establish communication goals andobjectives based on promotinal mix chosen.

Communications Objectives


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Communications Objectives

Communication Objectives flow from

marketing objectives. Whereasmarketing objectives refer to overall

marketing program and are outlined

in terms of sales,profitabilty or market

share goals, Objectives in terms of

awareness to be created ,knowledge tobe given, attitude and behavior to be

changed, Identity ,image and brand to

be built.(Its a long term planning)

What is the objective ?


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What is the objective ?


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After the Communication objectives

are determined ,attention turns tobudget for IMC Program.

Two questions comes to mind: What will be the promotional program cost ?

(Total) How will the money be allocated ?

Ideally the amount the firm needs to spend on

promotion should be determined to achieve its

objectives. Normally budget allocation is based

on company's or brands sales revenue. BUT At

IMC planning stage budget that we decide is

Often tentative



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Promotional Program Situation Analysis

Analysis of the Communications Process


Develop Integrated Marketing Communications Programs

Review of Marketing Plan


PR/Publicity

PersonalSelling

DirectMarketing

AdvertisingObjectives

SalesPromotionObjectives

PR/Publicity

Objectives

PersonalSelling

Objectives

DirectMarketingObjectives

MessageStrategy

SalesPromotionStrategy

PR/PublicityStrategy

PersonalSelling

Strategy

DirectMarketingStrategy

Integration & Implementation of Marketing Communications Strategies

Monitor, Evaluate & Control Promotional Program

Internet/Interactiv

Internet/InteractivObjective

Internet/Interactiv

Strategy


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Develop Integrated

Marketing

Communications Program

Of


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Of

Promotional Mix selected

Advertising

Direct marketing

Interactive/InternetMarketing

Sales promotion

Public relations/publicityPersonal selling


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After Developing ..

Integrate and ImplementMarketing Communications

Strategies


PR/Publicity

PersonalSelling

DirectMarketing

Internet/Interactive

Integrate and Implement MarketingC i ti St t i


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Communications Strategies

Integrate promotional mixstrategies.

Create and produce ads.

Purchase media time andspace

Design and implement directmarketing programs


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Design and implement sales

promotion program

Design and implement publicrelations/publicity programs

Design and implementinteractive/

internet marketing programs


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Monitor,Evaluate and

ControlIntegrated Marketing

CommunicationsProgram


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Mon tor, Eva uate an ontro IntegrateMarketing Communications Program


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Marketing Communications Program

Evaluate promotionalprogram results and

Determine effectiveness

Take actions to control and

adjust promotional programs

Case.

Cadbury Manages Crisis with IMC

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