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Understanding Integrated Marketing Communication

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Page 1: Understanding  Integrated Marketing Communication
Page 2: Understanding  Integrated Marketing Communication

a. Create Awarenessb. Stimulate Demandc. Encourage Product

Triald. Retain Loyal

Customerse. Combat

Competitive Promotional Efforts

• Inform• Persuade• Remind

Page 3: Understanding  Integrated Marketing Communication

Awareness

Knowledge Liking Preferen

ceConvicti

on Purchase

• To make a particular brand of a product. (It’s Ours)• Availability in market. (Its there)• To communicate point of purchase. (Where)• To project the distinctive features of the product.

(Why ‘us’)• To justify the product.• To take feedback. (What do you think )• Change attitudes.• Fasten the effects process.

Contd…

Page 4: Understanding  Integrated Marketing Communication

Product CommunicatesPrice CommunicatesPlace (Point of sales) CommunicatesPromotion Communicates.

Product CommunicatesProduct Message; Live Identity.

Physical Attributes Like Colour, Shape, Size, Package, Labels, Logo, Brand Name And Brand Name Of The Manufacturer.

Calcium Sandoz

Visual Communication: which the consumer acquires by the sight of the product.

Tactile Communication: Consumer gets through touching and feeling the product. Eg. Mattresses

Performance Communication: Consumer experiences through seeing the performance or use of the products. Eg. Automobile

Colour Communicates. Eg. Rasna, Red colour on soft drinks and cigarettes.

Design Communicates. Eg. Pen drives.

Brand Name Communicates. Eg. Pepsi,Tata

Reasonable Price Fad. Big bazaar, Babool

Page 5: Understanding  Integrated Marketing Communication

Package Communicate

s

• Functions as ‘Silent Salesman’.

• Package first, product later.

Place Communicates

• Store Image• Merchandising• Communication

Potential

Promotion

Communicates

• Advertising• Sales Promotion• Public Relations• Direct Selling• Personal Selling

Marketing Communication Is Not Just Restricted To Promotion.Communication Happens through all the other Ps as well In 2016 !

Page 6: Understanding  Integrated Marketing Communication

“ The process of developing and implementing various forms of persuasive communication programs with

customers and prospects Over Time.”

IMC is the coordination and integration of all marketing communication tools, and sources

within a company that maximizes the impact on consumers and other end users at a minimal

cost› Entails the Planning, Creation, Integration, and Implementation of Diverse Forms of

Marketing Communications

› Goal of IMC is to Influence or Directly Affect the Behavior of the Targeted Audience.

› Same Communication Message through all the channels of Marketing Communications

Page 7: Understanding  Integrated Marketing Communication

The Need for IMC• Conflicting messages from different sources or promotional approaches can confuse

company or brand images• The problem is particularly prevalent when functional specialists handle individual forms of

marketing communications independently

Page 8: Understanding  Integrated Marketing Communication

The Most Valuable Brands in the World

http://brandirectory.com/

Source:

Page 9: Understanding  Integrated Marketing Communication

History of Pre- IMC Era• Historically Organizations handled Advertising, Sales Promotion,

Point-of-Purchase Displays, and Other Promotional Tools as Virtually Separate Practices due to Unit Specialization, plus Outside Specialist Suppliers.

• Resistance to Change for Various Reasons.

Today a Move Toward IMC

Why the Move Toward IMC?• Many Advertising Agencies have Merged with other Suppliers and Broadened

their Scope and Embraced IMC. Brand Organizations Must Integrate. Brand Managers Must Closely Link Their Efforts with Suppliers and Commit to Integration of Various Communications Tools.

Page 10: Understanding  Integrated Marketing Communication

Traditional compensation Performance-based compensation

Media advertising Multiple forms of communication

Mass media Specialized media

Manufacturer dominance Retailer dominance

General focus Data-based marketing

Low agency accountability Greater agency accountability

Limited Internet availability Widespread Internet availability

From Toward

( Factors Contributing to IMC )

Page 11: Understanding  Integrated Marketing Communication

1 | Ogilvy & Mather Ltd2 | GWT Hindustan Thompson Associates3 | Rediffusion – DY&R4 | Mudra Communications Ltd 5 | McCann-Erickson India Ltd 

6 | Pressman Advertising and Marketing Ltd7 | FCB-Ulka Advertising Ltd8 | RK Swamy BBDO Advertising Ltd 9 | Trikaya Grey Advertising (India) Ltd 10 | Chaitra Leo Burnett Pvt Ltd

Page 12: Understanding  Integrated Marketing Communication

Start With The Customer Work To The Company (Outside-in not Inside-out)

Use Any Form of Relevant Contact – get creative (“MD street teams”) Contact – Any Message Medium Capable of Reaching Target Customers and

Presenting the Brand in a Favorable Light. “360-Degree Branding”

Achieve Synergy Convey the Message Consistently “Speak with a Single Voice” (1 + 1 = 3)

Positioning Statement: The Key Idea that Encapsulates what a Brand is Intended to Stand for in its Target Market’s Mind and Then Consistently Delivers the Same Idea Across All Media Channels.

Build Relationships between the brand and the consumer. A Relationship is an Enduring Link between a Brand and its Customers.› Successful Relationships lead to Repurchase and Possibly Even Loyalty toward a

Brand.› It is Cheaper to Keep a Customer than Lose them and Have to get New Ones.› CRM – Customer Relationship Management. Ways to Build Relationships.

Frequent Flyer, Loyalty Programs, Experiential Programs.Affect Behavior: Must do more than Just Build Awareness or Enhance Consumer

Attitudes. Ultimately Affecting Sales is Still the Gold Standard and Explains the Popularity of Sales Promotion.

Page 13: Understanding  Integrated Marketing Communication

Point ofpurchase

Publicrelations

Directmarketing

Interactivemarketing

Specialevents

Packaging

Salespromotion

MediaAdver-tising

Publicity

Directresponse

Traditional Marketing Approach

Contemporary IMC Approach

Page 14: Understanding  Integrated Marketing Communication

Marketing Organization•Marketing Plan•Goal & Objectives•Brand Audit (what you are doing now

Specialized Promotion Organizations•Media Organizations•Event Management Firms•Web Site Designers•Sales Promotions Agencies•Direct Marketing Agencies•Public Relations Firms•P-O-P Agencies & Designers

Advertising Agency•Research•Creative Strategies•Production•Message Placement Advertising

Internet advertisingDirect MarketingSales PromotionsPublic RelationsPersonal Selling

IMC Management

Page 15: Understanding  Integrated Marketing Communication

advertising public relations sales promotion personal selling

corporate identity

exhibitionsambient

ads

press ads

TV ads

radios ads

outdoor ads

inside transport

outside transport

sales calls

telesales

tele-marketing

press releases

internet marketing

database marketing

mobile

transportadvertising

Page 16: Understanding  Integrated Marketing Communication

A combination of promotional methods used to promote a specific product.

Person-to-person communication in which a seller informs and educates prospective customers and attempts to influence their purchase choices

Personal Selling

Non-personal communication that is paid for by an identified sponsor and involves either mass communication and other media or direct-to consumer communication via direct mail

Advertising

Page 17: Understanding  Integrated Marketing Communication

Non-personal communications to a mass audience that is not directly paid for by the company

Publicity

All the marketing activities that attempt to promote immediate sales of a product

Sales Promotion

The practice of promoting the interests of a company and its brands by associating the company with a specific event

Sponsorship

Includes all signs (displays, posters, signs, shelf cards, and other visual materials) designed to influence buying decisions at the point of sale

Point-Of-Purchase

Page 18: Understanding  Integrated Marketing Communication

Product Life Cycle Stage• Introduction = advertising• Growth/Maturity

• Consumer = advertising• Business = personal selling and sales promotion

• Decline = reduction of all promotional activities

Distribution Intensity• Intense = advertising, sales promotion• Selective = Vary• Exclusive = Personal selling

Page 19: Understanding  Integrated Marketing Communication

Advertising

Sales Promotion

Type ofBuying Decision

Complex

Routine

Personal Selling

Not Routineor Complex

Advertising

Public Relations

Product CharacteristicsBusiness products

• Personal selling• Sales promotion

Consumer productsConvenience = advertisingDurables = personal selling

Both = Public Relations

Page 20: Understanding  Integrated Marketing Communication

IMC–Audience Contact Points

Marketing Communications

Audience

Point of Purchase Publicity Public

Relations Packaging

DirectResponse

Sales Promotion

EventsOutdoorBroadcast MediaPrint Media

Direct Mail

Internet/Interactive

Media

Page 21: Understanding  Integrated Marketing Communication

Analysis of Promotional program situation

Review of marketing plan

Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program

Develop objectives and strategy for each

Develop message, media strategy, and tactics

Analysis of communications process

Budget determination

Salespromotion

PR/publicity

Personalselling

Directmarketing

Internet/interactiveAdvertising

Develop integrated marketing communications program

Model of the IMC Planning Process

Page 22: Understanding  Integrated Marketing Communication

The Risks of Integration• In order for IMC to work, there must be strong coordination amongst the

different marketing disciplines

• This need creates an Achilles heel for integration• Can prevent rapid responses to unexpected situations and emerging opportunities• Failure of any one component can have direct consequences for other reliant

components

Common causes of IMC failure• Incorrect strategic assumptions

• Inferior tactical execution

• Unanticipated marketplace changes

• Rogue partner behavior

• Unforseen delays– Product to market, integrated marketing

elements

• Conflicts between integration partners

Page 23: Understanding  Integrated Marketing Communication

Harmonizing IMC• Allow adequate feedback and flexibility to facilitate response

amongst various marketing elements

• Do not allow elements to get distracted from ultimate strategic goals of IM program

• Leadership should allow elements to spontaneously work together, to address issues that may be missed

• M&M Color vote example

Page 24: Understanding  Integrated Marketing Communication

Evaluating IMC Programs

• Coverage - what proportion of the target audience is reached by each communication option employed, as well as how much overlap exists among options

• Cost - what is the per capita expense• Are we getting good “eyeball” return on investment?

• Contribution - the collective effect on brand equity in terms of • enhancing depth & breadth of awareness• improving strength, favorability, & uniqueness of brand associations

• Commonality - the extent to which information conveyed by different communication options share meaning

• Complementarity - the extent to which different associations and linkages are emphasized across communication options

• Versatility - the extent to which information contained in a communication option works with different types of consumers

• Different communications history• Different market segments

Page 25: Understanding  Integrated Marketing Communication

• A brand possesses equity to the extent that consumers are familiar with the brand and have stored in memory favorable, strong, and unique brand associations

Enhancing Brand Equity

BrandAwareness

BrandImage

Whether a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked

• The associations that come to mind contemplating a particular brand

• Brand association - the particular thoughts and images that a consumer has about a brand

Page 26: Understanding  Integrated Marketing Communication

BrandKnowledge

Brand Recognition

Brand Recall

Non-Product-Related(e.g., Price, Packaging, User and Usage Imagery)

Product-Related(e.g., color, size, design features)

Functional

Symbolic

Experiential

Attributes

Benefits

OverallEvaluation(Attitude)

Types ofBrand Associations

Favorability, Strength, and Uniqueness of Brand Association

BrandAwareness

BrandImage

Page 27: Understanding  Integrated Marketing Communication

What Is a Good Brand?

Brand Prestige

“Wrap-Arounds”

Marketing Communications

CoreProduct /Service

Mix of offline and online advertising Emphasizes advantages to AAdvantage

memberships, including mileage points and online services

Superior service AAdvantage frequent-flyer club Award-winning Admirals Club lounges Comfortable chairs Portable defibrillators on every flight

Safe, on-time transportation from A to B

Page 28: Understanding  Integrated Marketing Communication

A Conceptual Model of Brand Equity A good brand...

CUSTOMER BENEFITS Confidence Loyalty Satisfaction

FIRM BENEFITS Reduce marketing costs Increased margins Opportunity for brand

extensions

BRAND AWARENESS Depth Breadth

BRAND ASSOCIATIONS Strength

Relevant Consistent

Valence Uniqueness

Memorable Distinctive

“Wrap-Arounds”

CoreProduct /Service

Market Communication

… provides positive consumer responses...

… and benefits both target customers and the firm

Source: Kevin Lane Keller, Strategic Brand Management (Upper Saddle River, NJ: Prentice-Hall, Inc., 1998), David Aaker, Building Strong Brands (New York: The Free Press, 1996), market2customer Analysis, Marketspace Analysis

Page 29: Understanding  Integrated Marketing Communication

Role of Integrated Marketing Communications

• Marketing communications …• are the “voice” of the brand and are a means by which it can establish a

dialogue and build relationships with consumers.

• allow marketers to inform, persuade, incentivize, and remind consumers directly or indirectly

• can contribute to brand equity by establishing the brand in memory and linking strong, favorable, and unique associations to it.

21st-Century Integrated Marketing• Integrated marketing must keep pace with the ever-changing world of

promotional innovations to help sell products and services• Communications professionals also must be familiar with infomercials, movie

and TV product placements Infomercial. Are program-length commercial TV-Movie Product Placements. Product placement in films and TV shows They are also known as “embedded advertisement” They have become a more intergraded part of movies and TV shows

Page 30: Understanding  Integrated Marketing Communication

Finding New Ways to Build Brands• Consumers are driving the trend

• They view brands as a form of self-expression• They know more about brands and the companies that make them• Cynicism about corporations is at an all-time high• They seek and share information with other consumers via the Internet

• Get consumers involved• Apple Computer lets consumers test products in store• Starbucks positions stores as a community gathering place

• Interaction can be the best marketing• MySpace• Facebook• Google

Benefits Of IMCIMC Provides better

Trust among consumers.Effectiveness level than single message strategies.

Brand differentiation.Connection with the company.

Page 31: Understanding  Integrated Marketing Communication

Personal And Electronic Word-Of- Mouth Communication

• Word-of-Mouth – personal informal exchanges customers share with one another about products, brands, and companies

• Buzz marketing – an attempt to gain acceptance of product by word-of-mouth

• Viral marketing – strategy to get Internet users to share ads and promotions with their friends

Page 32: Understanding  Integrated Marketing Communication

Criticisms And Defenses Of Promotion

• Promotion deceptive?• Does promotion increase prices?• Does promotion create needs?• Does promotion encourage materialism?• Does promotion help customers without costing too

much?• Should potentially harmful products be promoted?


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