Promotion Application

through

IMC

Purpose of Communication

Develop brand awareness Increase category demand Change customer belief or attitude Enhance purchase actions Encourage repeat purchases Build customer traffic Enhance firm image Increase market share Increase sales Reinforce purchase decisions

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Marketing and IMC

Marketing, as we all know is creating and retaining consumers/customers.

But marketing actions must take into consideration not only customers and potential customers but also other stakeholders (Stakeholders are individuals or groups who can affect or be affected by, an organization) : employees, customers, investors, suppliers, distribution channel members, the community, the media, special interest and activist groups and government regulatory agencies. In other words, a stake holder is anyone who has a stake in the success or failure of an organization.

WHAT IMC MEANS

We all know that equity of a brand or a company is the relationship between the customer and the brand or organization.

IMC is an process for managing the customer relationship that drive brand value. More specifically, it is a cross-functional process for creating and nourish ing profitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging data-driven, purposeful dialogue with them. To make sure the definition is clear, let's look at of its major elements:

1.Cross functional process means that all of the company's major departments (and outside communication agencies) that touch the customer must way of working together in the planning and monitoring of brand relationships.

2. Creating and nourishing stakeholder relationships means attracting new and then interacting with them to find ways the company can further satisfy their wants and needs. The more satisfied customers or other stakeholders are, the more business or support they will generally give to a company. Nourishing means not only retaining customers and stakeholders but also increasing the company's percentage of their category purchases and support.

3. Profitable customer relationships are specified because not all relationships are of equal value to a company. Some customers are more profitable to a company than others because of the quantity they buy, the types of products they buy, or the amount of servicing they require. 4. Strategically controlling or influencing all

messages means recognizing that everything a company does sends a message how it makes its products, how products perform, how it sets prices, through what kinds of stores it provides its services or sells its products, and how its employees act. In other words, all aspects of the marketing mix deliver messages and all of these messages need to be either strategically controlled or influenced. To strategically control or influence brand messages means to plan and monitor them to ensure they have consistent meaning. The messages must not contradict each other.

5. Encouraging purposeful dialogue recognizes that customers are tired of intrusive telemarketing calls, junk mail, interruptive commercials, and overcommercialization of events. Customers want the ability to interact with companies and initiate a discussion when they have a need to do so, and to have this dialogue in a way and at a time convenient to them. The interactivity discussion explains how companies can make it easier for their customers and prospects to make purchases, ask questions, complain when something goes wrong, or give compliments when they are especially pleased. Communication, in other words, is at the heart of every relationship.

IMC objectives To support sales increases To encourage trial To create awareness To inform about a feature or

benefit To remind To reassure To create an image To modify attitudes

An Interactive Marketing Communication Model (1 of 3)

SourceCompany/brand,agency

MessageBrand messages (planned unplanned, product, service)

ChannelNewspaper, mail, magazine, e-mail, TV, radio, package, salesperson, customer service, Internet

ReceiverTarget audience

Response & FeedbackBuy/not buy, request information, visit store, sample product, repeat

NoiseClutter, message conflict and

inconsistency

IMC Model (2 of 3)

Sender - party sending the message Encoding - message in symbolic form Message - word, pictures and

symbols that the sender transmits Media - the communication channel

e.g radio Decoding - receiver assigns meaning

to symbols encoded by the sender

IMC Model (3 of 3)

Response - reaction of the receiver after being exposed to the to the message

Feedback - the part of the receiver’s response after being communicated to the sender

Noise - unplanned static or distortion during the communication process e.g. competitor action (Creature Comforts?)

Databases and information technology

SWOT analysis, zero-based planning

(MC functions)

Cross-functional organization

(Monitoring and evaluating brand

relationship

Brand messages(strategic consistencyof brand positioning

big creative idea)

Media-mass, niche, and interactive (Intrinsic and created brand

contacts)

Advertising, Customerservice,Direct response

E-commerce events,Packaging, Personal

selling, Public relation,Sales promotions,

Sponsorships, Trade shows

Brand relationship(Customer acquisition

retention, growth)

Sales, profits, andbrand equity.

IMC Process Model

Importance of IMC

From media advertising to multiple forms of communication.

From mass media to more specialized (niche) media, which are cantered on specific target audiences.

From a manufacturer-dominated market to a retailer-dominated, consumer-controlled market.

From general-focus advertising and marketing to data-based marketing.

From low agency accountability to greater agency accountability, particularly in advertising.

From traditional compensation to performance-based compensation (increased sales or benefits to the company).

From limited Internet access to 24/7 Internet availability and access to goods and services.

The IMC Message Typology

Product Planned

Service Unplanned

Brand

• The Four Sources of Brand Messages

Planned Messages

Planned messages are the marketing communication messages delivered by advertising, sales promotion, personal sales, merchandising materials, press releases, events, sponsorships, packaging, and annual reports, to name a few.

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Product MessagesThe second type of message is the product message; these include all messages sent by a product’s design, performance, pricing, and distribution. Product DesignThe design of a product can send powerful messages. Operating on the principle that if it looks good, it must be good, companies in the auto industry have always maintained a staff of industrial designers to style cars.

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Product PerformanceAlthough product design is important, product performance is even more important when it comes to sending brand messages. As most marketers know, how well a product performs or how well a service is delivered, relative to expectations, is a major determinant of whether or not customers become repeat buyers.

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Pricing and DistributionThe brand messages sent by price and distribution are often not recognized for their importance in a brand’s overall communication. There’s a big perceived difference, for example, between cosmetics sold at New Market and those sold at One Stop Mall.

Service MessagesService messages come from contact with service representatives, receptionists, secretaries, delivery people, and all other representatives of a company. Service messages are usually personal, real-time interfaces between a company and a customer- and this is what makes them especially strong.

Unplanned MessagesUnplanned messages include brand- or company- related news stories, gossip, rumors, actions of special interest groups, comments by the trade and by competitors, findings by government agencies or research institutions, and word of mouth. Employee MessagesEmployees are an important communication source, and their views are highly credible to people they know, as well as to reporters who interview them, particularly in a crisis situation.

News MediaFor most companies, the most critical unplanned messages come from the news media. Such messages often reach a relatively large audience and are seen as having especially high credibility.

Disasters and CrisesAnother type of unplanned message handled by public relations is generated by company-related disasters. The crisis, disaster, or emergency is the most unwanted of unplanned messages, but crises are also a fact of life.

THE MARKETING COMMUNICATION FUNCTION

Mass mediaadvertising

Specialty advertising

Sales promotion

Marketingpublic relations

Personal sales

Eventsand

sponsorships

Customer service

Trade shows

Licensing

Direct response

Merchandisingand

point-of-purchasematerial.

Packaging

Traditional Marketing Communication Function

The Promotion Mix Personal selling Telemarketing Direct mail Trade fairs and exhibitions Commercial television Newspapers and magazines Radio Cinema Point of sale displays Packaging New Screen Social Networking

WHAT NEEDS TO BE INTEGRATED ?

Employees

Customers

Corporate mission

Businesspartners

DatabasesCorporate culture

Corporatelearning

TRENDS DRIVING INTEGRATION ?

1. Brand and product

proliferation

2. Product commoditization

3. Decreasing brand toyalty

4. Price sensitive

5. More demand less trust.

6. Message clutter

7. Service economic

8. Rising costs and accountability

Internal1. Departmentalization

2. Expertise.3. Hollow corporate missions

4. Misuse of new Communication

technologies

Trends Driving Integration

External

Directresponse

Marketing services

Eventsponsors

hip

Marketing

1970s

1960s

1950s

Up to 1940s

Advertising

Sales

Salespromoti

on

Product/brand management

Sales

Marketing

publicrelation

s

The Disintegration & Integration of Marketing(dates are approximations)

2000s IntegrationFocus on Brand

Positioning

A Communication-Based Marketing Model for

Managing Relationships

Corporate-level message sources

AdministrationManufacturing/

Operations

MarketingFinance HumanResources

Legal

Marketing-level message sources

ProductMix

PriceMix

MarketingCommunicatio

nMix

DistributionMix

Marketing-level message sourcesPersonal

SalesAdver-tising

SalesPromotion

PublicRelations

DirectMarketing

Pack-aging

Events

StakeholdersEmployeesInvestorsFinancial communityGovernmentRegulators

ConsumersLocal communityMedia Interest groups

Customers

DistributorsSupplierscompetition

Brand relationships

Brand value

Interactivity

Recourse Recognition Responsiveness Respect

Reinforcement

Cross-Functional Brand Equity (IM) Team

Cross-Functional (IM) Team

The Promotion Elements

The Promotional Message

Grab ATTENTIONExcite INTERESTCreate DESIREPrompt ACTION

AIDADifferentiation Show Crazy Ones

Execution styles Slice of life Lifestyle Fantasy Mood or image Musical Personality symbol Technical Expertise Scientific Evidence Testimonial Evidence

Media choice?

Marketing objectives Definition of problem e.g falling

awareness Evaluation of different tools choice of optimum mix of

promotional methods Integration into overall marketing

communication programme

Questions