Introduction of IMC

Definition of Integrated Marketing Communications

A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines and combines these disciplines to provide clarity, consistency and maximum communications impact.

Integrated Marketing Communications

A marketing communications planning concept that recognizes the value of a comprehensive plan.

A plan that evaluates the strategic roles 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

The Marketing & Promotional Mixes

Marketing Mix:

• Product or Service
• Pricing
• Channels of Distribution
• Promotion

Promotional Mix:

• Advertising
• Direct Marketing
• Interactive/internet marketing
• Sales Promotion
• Publicity/Public Relations
• Personal Selling

Communication-Based Marketing Model

Communication Levels

• Corporate Level

  Messages sent by a company's overall business practices and philosophies such as mission, labor practices, philanthropies, culture and other processes

• Marketing Level

  Messages sent by or inferred from by various aspects of marketing mix such as product performance, design, appearance, pricing and distribution

• Marketing Communication Level

  Strategic and executional consistency among all forms of marketing communication

Reasons For Growing Importance of IMC

Shift from media advertising to other forms of marketing communication Movement away from advertising focused- approaches that emphasize mass media Shift in power from manufacturers to retailers Rapid growth of database marketing Demands for greater ad agency accountability Changes in agency compensation Rapid growth of the Internet Increasing importance of branding

Coca-Cola is the world's most valuable brand

IMC Communication Tools

Advertising

Advantages of advertising

• Advertiser controls the message
• Cost effective way to communicate with large audiences
• Effective way to create brand images and symbolic appeals
• Often can be effective way to strike responsive chord with consumers

Disadvantages of advertising

• High costs of producing and running ads
• Credibility problems and consumer skepticism
• Clutter
• Difficulty in determining effectiveness

Classifications of Advertising

An example of a business-to-business ad

Direct Marketing

Advantages of direct marketing

• Changes in society have made consumers more receptive to direct- marketing
• Allows marketers to be very selective and target specific segments of customers
• Messages can be customized for specific customers.
• Effectiveness easier to measure

Disadvantages of direct marketing

• Lack of customer receptivity and very low response rates
• Clutter (too many messages)
• Image problems – particularly with telemarketing

Direct marketing methods

• Direct mai
• Catalogs
• Telemarketing
• Direct response ads
• Direct selling
• Internet

Interactive/Internet Marketing

Advantages of interactive/ internet marketing

• Can be used for a variety of IMC functions
• Messages can be tailored to specific interests and needs of customers
• Interactive nature of the Internet leads to higher level of involvement
• Can provide large amounts of information to customers.

Disadvantages of interactive/ internet marketing

• Internet is not yet a mass medium as many consumers lack access
• Attention to Internet ads is very low
• Great deal of clutter on the Internet
• Audience measurement is a problem on the Internet

Use of the Internet as an IMC Tool

• As an advertising medium to inform, educate and persuade customers
• As a direct sales tool
• To obtain customer database information
• To communicate and interact with buyers
• To provide customer service and support
• To build and maintain customer relationships
• As a tool for implementing sales promotion
• As a tool for implementing publicity/public relations programs

The Internet is an important IMC tool for American Airlines

Sales Promotion

Consumer-oriented

– Targeted to the ultimate users of a product or service

• Coupons
• Sampling
• Premiums
• Rebates
• Contests
• Sweepstakes
• POP materials

Sales Promotion Uses

Introduce new products Get existing customers to buy more Attract new customers Combat competition Maintain sales in off season Increase retail inventories Tie in advertising & personal selling Enhance personal selling efforts

Publicity

Publicity Vehicles

Advertising Versus Publicity

Public Relations

Personal Selling

Advantages of personal selling

• Direct contact between buyer and seller allows for more flexibility
• Can tailor sales message to specific needs of customers
• Allows for more direct and immediate feedback
• Sales efforts can be targeted to specific markets and customers who are best prospects.

Promotional Management

Considerations for developing the promotional program include:

• Type of product
• Buyer's decision process
• Stage of product life cycle
• Channels of distribution

Integrated Marketing Communications Planning Model

The Marketing Plan

A document that describes the overall marketing strategy and programs developed for a company, product or brand. The plan includes:

• A detailed situation analysis Specific marketing objectives
• A marketing strategy and program that includes selection of a target market and plans for marketing mix elements
• A program for implementing the strategy
• A process for monitoring and evaluating performance

Situation Analysis

Internal Factors

• Assessment of the firm's promotional organization and capabilities
• Review of the firm's previous promotional programs
• Assessment of firm or brand image and implications for promotion
• Assessment of relative strengths and weaknesses of product/service

External Factors

• Customer analysis
• Competitive analysis
• Environmental analysis

IMC Program Situation Analysis External Factors

Envionmental analysis

• Technological Political/Legal
• Demographic Socio/Cultural
• Economic

Competitive Analysis

• Direct and indirect competitors
• Position relative to competitors
• Size of competitors' advertising/ promotional budgets
• IMC strategies being used by competitors

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 attributes or criteria are important to customers?
• What are customers' perceptions of and attitudes toward our company, product/service or brands?
• What factors influence the decision making process?
• Contact points where customers can be reached?

 

Analysis of Communications Process

• Analyze response process of customers in the target audience.
• Analyze best combination of source, message and channel factors for communicating with target audience.
• Establish communication goals and objectives.

Potential Communications Objectives

Sales Customer loyalty Company image Brand image Store patronage Service contract

An inquiry A visit by a prospect Product trial Recommendation Adoption of the product

The objectives of this ad include image building and encouraging inquiries

Potential Communications Objectives

Individual sales Customer loyalty Company image Brand image Store patronage Service contract

An inquiry A visit by the prospect Product trial Prescription for use Recommendation Adoption of the product

Contact Points Where Customers Can Be Effectively Reached

• Mass media

• Broadcast - radio/TV
• Newspapers
• Magazines

• Direct Marketing
• Internet/interactive
• Brochures, sales literature
• Publicity/PR

Events/sponsorships

• Local
• Regional
• National/international

• Sales Promotions
• In-store/POP
• Product placements in movies and television shows
• Promotional products

Develop Integrated Marketing Communications Program

Integrate and Implement Marketing Communications Strategies

Monitor, Evaluate and Control Integrated Marketing Communications Program