Promotional Management€¦ · • Five basic elements in a marketing plan 1. A detailed...

MKT 337: WSK Introduction to IMC

Promotional Management

Chapter 1: Introduction to IMC


MARKETING

Process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large


Marketing and the Marketing Mix

• Marketing facilitates the exchange process and development of

relationships

• Careful examination of needs and wants

• 4 Ps of Marketing

• Promotion, one of the Ps

• All Ps must be combined and coordinated

• All focus on Promotion and not on other Ps – will not work

• Cohesive marketing strategy


INTEGRATED MARKETING COMMUNICATIONS (IMC)


The Evolution of IMC

• Need for integration has existed for a while

• Mass-media advertising was the focus

• Sales promotion, direct marketing and package design firms were

viewed as auxiliary services

• Even PR wasn’t considered a part of the IMC


The Evolution of IMC

• Companies started demanding synergy in their communication

• Agencies started offering other services

– PR, Sales promotion, direct marketing

• More than just a fad


What is an IMC?

Integrated Marketing Communication is a strategic business

process

used to plan, develop, execute and evaluate

coordinated, measurable, persuasive brand communications

programmes over time

with consumers, customers, prospects, employees, associates

and other targeted relevant external and internal audiences.


Breakdown of Definition

• What is it?

– An ongoing strategic business process

• What is it used for?

– To plan, develop, execute and evaluate

• Plan, develop, execute & evaluate what?

– Coordinated, measurable, persuasive brand communications programme

• For whom?

– Customers, prospects, employees, associates and other external and

internal audiences


Reasons for the growing importance

• Started to understand the value of strategic integration

• Avoid duplication

• Take advantage of synergy among promotional tools

• Develop more efficient and effective marketing communications

programme

• Maximise the returns on investment in marketing and promotion


The Role of IMC in Branding

• Developing and sustaining a brand identity and equity

• Require favourable, strong and unique associations in the minds of the

consumers

• Brand Identity

– Combination of name, logo, symbols, design, packaging and performance as well as

the image and associations that come to mind when consumers think about a

brand

• Sum of all points of contacts with the consumers

• All IMC activities contribute towards the brand identity

– Advertising, Sales Promotion, sponsorship, websites, articles, interaction with

company rep,


The Role of IMC (cont.)

• Mass-media was the cornerstone of brand-building efforts

• The recent recession has changed the way marketers operate and

the way consumer purchase

• Need to connect based on trust, transparency, engagement and

authenticity


THE PROMOTIONAL MIX The Tools for IMC


Definitions

• 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 tools used to accomplish an organisation’s communications

objectives


Promotional Mix

• Advertising

• Sales Promotion

• Public Relations

• Personal Selling

• Direct Marketing

• Digital/Interactive Media


Advertising

• Any paid form of nonpersonal communication about an

organisation, product, service or idea by an identified sponsor

• Mass media

• No opportunity for immediate feedback

• Reasons for importance

– Cost-effective to reach large numbers

– Tool for building brand equity by providing information and influencing

perception

• Create favourable and unique associations


Classifications of Advertising

ADVERTISING TO CONSUMER MARKETS

• National Advertising

• Retail/Local Advertising

• Primary- versus Selective-demand Advertising

ADVERTISING TO BUSINESS AND PROFESSIONAL MARKETS

• Business-to-Business Advertising

• Professional Advertising

• Trade Advertising


Direct Marketing

• Organisations communicate directly with target customers to generate a

response and/or a transaction [no intermediaries]

– Database management, Direct Selling, Telemarketing, Direct-response ads

• Direct-response advertising

– Product is promoted through an ad that encourages the consumer to

purchase directly from the manufacturer

• Customer Relationship Management [CRM]

– The systematic tracking of customer preferences and behaviours and

modifying a product or service to meet individual needs and wants


Digital Marketing

• Most dynamic and revolutionary changes in marketing and IMC

• Interactive Media

– Two-way flow of communication whereby users can participate in and

modify content of the information they receive in real time

– Receive, alter, and share information and images; make inquiries;

respond to questions; and even make purchases online

• Marketers use internet as an advertising medium

– Banners, paid search

– Direct Marketing, PR and personal selling


Digital Marketing (cont.)

• Social Media

– Online means of communication and interactions among people that are

used to create, share and exchange information, insights, experiences

– Facebook, Twitter, LinkedIn, Pinterest

• Smartphone revolution

– Third screen

– Target consumers specific to a their location/consumption situation

– Price offers depending on proximity to rival stores

– App-based businesses

• Examples: OLA cabs, OYO rooms. Airbnb


Digital Marketing (cont.)

• Interactive nature is the biggest advantage

• Evaluation of campaigns also much easier to measure

– Whether they clicked on the ad

– How long they spent on the page

– Did it lead to a purchase


Examples of Digital Marketing






Example of Paid Search

• Type in ‘Online Grocery Shopping’

• See what comes up


Sales Promotion (SP)

• Marketing activities that provide extra incentives to the sales force, the distributors or

the end consumers and can stimulate immediate sales

• Consumer-oriented SP

– targeted to the end user includes couponing, sampling, premiums, rebates contest,

sweepstakes and various POP materials

• Trade-oriented SP

– Targeted towards intermediaries such as wholesalers, distributors or retailers

• Reasons for recent shift to Sales/Trade Promotions from advertising

– Declining brand loyalty and increased sensitivity to deals

– Larger and more powerful retailers demanding more trade promotion support


Consumer-oriented Sales Promotion Examples


Publicity/Public Relations

• Publicity

– Nonpersonal communication regarding an organisation, product, service

or idea not directly paid for or run under identified sponsorship.

– News story, editorial, announcement about an org or its products

• Techniques used to gain publicity

– Press release, press conference, feature articles, photographs, films and

video news releases

• Advantage – Credibility, low cost

• Disadvantage – Not always under control [Maggi/Melamine fiasco]


Example of Publicity


Publicity/Public Relations

• Public Relations

– The management function which evaluates public attitudes, identifies the policies

and procedures of an individual or organisation with the public interest, and

executes a programme of action to earn public understanding and acceptance

– Takes place when an org. distributes information in an attempt to control its image

– Managing relationships with investors, employees, suppliers, community,

government, consumers, etc.

• Activities include

– Special publications, Participation in community activities, Fund-raising,

Sponsorship of special events


Example of PR (sponsorship)


Personal Selling

• 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

• Direct contact – face-to-face or through telecommunication

• Gives the seller flexibility to customise/modify

• Examples

– NIDO does door-to-door personal selling in order to convince mothers to

switch to their brand

– BRAC Bank agents knock on our doors at NSU to get faculty members to

subscribe to their credit cards


IMC INVOLVES AUDIENCE CONTACTS


Contact/Touch Points

• Contact/Touch Point

– 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

• Categories of Touch Points

– Company created touch points

– Intrinsic touch points

– Unexpected touch points

– Customer initiated touch points


IMC Audience Contact Tools


Control Vs Impact

• Not all touch points are equally effective

• Differ in regard to company’s ability to control them

• Advertising often dismissed

• Unexpected messages have third-party credibility

High

Low High Ability to influence

Relative Impact

Unexpected

Customer-initiated

Intrinsic

Planned: Company-created


THE IMC PLANNING PROCESS


IMC

Pla

nn

ing

Mo

del


Review of the Marketing Plan

• To begin with, firms must analyse where they stand

• Five basic elements in a marketing plan

1. A detailed situational analysis of internal (marketing audit) and external

(competition and environment) factors

2. Specific Marketing objectives that provide direction, a time frame and

mechanism for measuring performance

3. Strategy that includes selection of target market and plans for the 4Ps

4. Programme for implementing the marketing strategy, including

determining specific tasks to be performed

5. Monitoring and evaluating performance and providing feedback


Promotional Programme Situation Analysis

• Internal Analysis

– Organisation of the Promotional Department

– Firm’s ability to implement promotional programme

• Agency Evaluation and Selection

– Review of the previous programme results

– Strength and weakness of the image of the firm/brand

– Strength and weakness of the product/service


Promotional Programme Situation Analysis

• External Analysis

– Consumer Behaviour Analysis

– Market Segmentation and Target Marketing

– Market Positioning

– Competitors

– Marketing Environment Analysis


Analysis of the Communication Process

• Analyse receiver’s response processes

– Low-involvement or high involvement

• Analyse source, message and channel factors

– Media Mix options and cost implications

• Establishing communication goals and objectives

– Communication Objectives: what the firm seeks to accomplish with its

promotional programme

– Different from Marketing Objectives: what is to be accomplished by

the overall marketing programme


Budget Determination

– What will be the promotion cost?

– How will the money be allocated?

• Set tentative marketing communications budget

• Allocate tentative budget


Developing the Integrated IMC Programme

• Decisions about the role of each element of the promotion mix

– The coordination with one another

• Activities need to be performed to implement each element

• Procedures for evaluation and changes

• For example, advertising programme has its own set of objectives

and budget


‘Advertising’ as part of the IMC Programme

• Creative Strategy

– Basic appeal and message the advertiser wishes to convey to the

target audience (TA)

• Media Strategy

– Which communication channels will be used to deliver the message to

the TA

– Careful evaluation of Advantages and limitations, costs and

effectiveness for the TA required


Implementation of the Advertising Campaign

• Most large firms hire advertising agencies

– To plan and produce messages

– To evaluate and purchase media

• But with client’s approval

• Similar process takes for other elements of the IMC programme

• Advertising agencies do perform some of the other functions

• But firms hire specialist agencies as well (PR, sales promotion, etc.)


Monitoring, Evaluation and Control

• Find out how well the programme is doing and why

• Problem could be the message or the media

• Must know reasons for the result in order to take further decisions

• Input crucial for subsequent IMC planning and strategy development


End of Chapter

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Promotional Management€¦ · • Five basic elements in a marketing plan 1. A detailed...

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