Download IMC - Product Management

Integrated Marketing
Communication
The Market Place
• Complex
• Dynamic
• Monopoly virtually non-existent
• The Consumer - the most pampered
and sought-after ‘thing’
Integrated Marketing Communications
• Everything the consumer sees or experiences
that has the brand name on it, communicates
“Communication goes beyond specific
communication tools. The product’s styling, its
packaging, price, the sales persons manner and
dress- all communicate something to the
customers. The whole marketing mix, not just
promotional mix, must be orchestrated for
maximum communication impact”.
Integrated Marketing Communication
• In market based economies, consumers rely on
advertising and other forms of promotion to make their
purchase decisions
• The ability of advertising and other promotional methods
to deliver the message to the target audience has given
them a major role in the marketing programs of most
organizations
• Many companies have started to recognize the need to
integrate their various marketing communication efforts
such as the Mass media advertising, Public Relation,
Sales Promotion and Direct Marketing to achieve more
effective marketing communication
Integrated Marketing Communication
What does this mean??
IMC is 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 – like
Advertising, DM, PR, SP, etc. - and combines these
disciplines to provide clarity, consistency, and
maximum communication impact (through the
seamless integration of discrete messages)
American Association of Advertising Agencies
Integrated Marketing Communication
Twenty-first century marketing will mean bringing
a brand to life using all possible contact points
and not simply relying on old formulas.
Reasons for the growing
importance of IMC
• Need to strategically integrating various communication
functions, rather than have them operate autonomously
• Adaptation of marketers to the changing environment or
to the ground reality of today, particularly with respect to
the consumers, technology and the media
• Changes in the way the companies market their
products
and services
Reasons for the growing
importance of IMC
• Shift from mass media advertising to other forms of
promotion, particularly consumer and trade oriented
sales promotions
• Shift in the market place power from the Manufacturers
to the Retailers.
• Movement away from relying only on advertising
focused approach with emphasis on mass media.
Consumers have contact with or receive information
about brands in stores through POS materials
Reasons for the growing
importance of IMC
• The major role it plays in the process of developing and
sustaining brand identity and brand equity. Well known
brands have an advantage with more and more
products
and services competing for consideration by customer
• In today’s market there are many different opportunities
and methods of contacting current and prospective
customers to provide information about the company
and brands as well as build the brand image.
• The challenge is to understand how to use various
IMC tools to make such contacts and deliver the
Developing
Integrated Marketing Communication
There is a working methodology
for developing
Integrated Marketing
Communication
Developing
Integrated Marketing Communication
The three-step process:
–
Identify the core idea for the message
–
Explode this out into various relevant
communication elements
–
Tie it all together with appropriate media
Developing
Integrated Marketing Communication
CORE
IDEA
Developing Integrated Marketing communication
PR &
Events
Promotions/
Sampling
Sales
literature
Co-op
advertising
Channel
promos
CORE
IDEA
Point of Sale
Direct
Marketing
Glow Signs/
Signage
Developing Integrated Marketing Communication
Mass Media
PR &
Events
Promotions/
Sampling
Sales
literature
Co-op
advertising
Channel
promos
CORE
IDEA
Glow Signs/
Signage
Mass Media
Point of Sale
Direct
Marketing
Integrated Marketing Communications
(…contd.)
The Components or Tools
• Advertising
• Direct Marketing
• Interactive/Internet
• Sales Promotion
• Public Relations
• Personal Selling
Advertising
There are several reasons why advertising is an
important
part of the marketers promotional mixes.
• Firstly, it is very cost effective method to communicate to
a large audience.
• Secondly, it helps create brand image and symbolic
appeal
for the brand which is a very important for companies
selling product and/or services that are difficult to
differentiate on functional attributes.
Advertising
Classification of Advertising
• Advertising in the consumer market
- National Advertising
- Retail/Local Advertising
- Primary/Secondary demand advertising
• Advertising to Business & Professional markets
- Business to Business Advertising
- Professional Advertising
- Trade Advertising
Direct Marketing
• Is much more than direct mail and mail order catalog. It
includes database management, CRM, Direct selling,
telemarketing, direct response ads through direct
marketing, internet and broadcast and print media
• Direct response advertising is the a major tool where the
product is prompted through advertisement that
encourages the consumer to purchase directly from the
manufacturers
• It has an important role in the IMC program of consumer
product companies and business to business marketers
Direct Marketing
• Involves telemarketing to call consumers directly and
attempts to sell to them the product directly.
• Uses CRM to mine the existing customers
• Used to inform consumers about new product launches
or product improvements and also to distribute product
samples or target users of a competing brand.
Interactive/Internet Marketing
• We are experiencing the most dynamic and revolutionary
changes of any era in the history of marketing, advertising
and promotion
• These changes are being driven by advances in
technology and developments that have led to dramatic
growth of communication through interactive media
particularly Internet.
• Biggest advantage of Interactive media allows back and
forth flow of information
• The Interactive medium that is having the greatest impact
is
Interactive/Internet Marketing
• Internet is changing the ways Companies design and
implements their entire business and marketing
strategies
and is also affecting their Market Communication
program.
• Many or most of the companies have developed
websites and use it to promote their products and
services by providing information to consumers as well
as interact with them
• Companies that are using internet effectively are
integrating their web strategies with other aspects of the
IMC program.
Interactive/Internet Marketing
• Biggest advantage of the Internet as a medium is that can
be used to execute all the elements of promotional mix
• In addition to advertising on the web, marketers use it for
sales promotion incentives like coupons, contests, etc.
and
also use it to conduct direct marketing, personal selling,
PR activities more effectively and efficiently
Interactive/Internet Marketing
• An example of this is Nike who used Internet effectively
to introduce Air Cross Trainer II shoes. The TVC showed
Marion Jones in dramatic situations and ended with
words “Continue at whatever.nike.com”. When viewers
visited the site they could select from 6 or 7 different
endings to the TVC, get information on sports and
purchase the shoes
• The Internet communication was very effective in driving
traffic to both Nike’s main website and
whatever.nike.com created specifically for the ad.
Needless to say it was very effective and helped make
AC Trainer II shoes best selling shoes for that season.
Sales Promotion
• Sales Promotion are those market activities that
provide extra value or incentives to sales force,
distributors or to the ultimate consumers and can
stimulate immediate sales
• Promotion and Sales Promotion are two terms and are
different. Promotion is an element of marketing by
which firms communicate with their customers, it
includes all the promotional mix elements.
• Promotional and merchandising allowances, price
deals, sales contest & trade shows, dealer conferences
are used to encourage Trade to stock and promote
products
Sales Promotion
• Consumer oriented sales promotion targeted to ultimate
users of product or service and includes coupons,
premium rebates, contest, etc.
• Trade oriented sales promotion is targeted towards
marketing intermediaries such as wholesalers,
distributors and retailers
Publicity
• Publicity refers to non-personal communication
regarding organizations, products or services that are
not directly paid for or run under identified sponsorship
• It usually comes in the form of news story, editorial or
announcement about organization and/or its products
and services.
• Like advertising, publicity involves non-personal
communication to a mass audience but unlike
advertising, publicity is not directly paid for by the
company.
Publicity
• An advantage of Publicity over the other forms of
promotions is its credibility. Consumers generally tend to
perceive Publicity as unbiased.
• Publicity is not always under the control of an
organization and is sometimes unfavorable. Negative
stories about the company and/or its products can be
very damaging.
• Recent examples being that of Coke. Pepsi, Cadbury’s
etc. The Hindi film industry uses it very effectively
Public Relations
• Public Relations is defined as the management function
which evaluates public attitudes, identifies the policies
and procedures of an individual or organization with the
public interest and executes a program of action to earn
public understanding and acceptance
• There is a distinction between Publicity and Public
Relations.
Public Relations
• When an organization systematically plans and
distributes information in an attempt to control and
mange its image
and the nature of the Publicity it receives, then it is
engaging in a function known as Public Relations.
• Public Relations generally have a broader objective than
Publicity as its purpose is to maintain a positive image of
the company among its various publics.
Personal Selling
• Personal Selling is a form of 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.
• Unlike Advertising, Personal Selling involves direct
contact between buyers and seller either face to face or
through
some form of telecommunication.
• Personal selling also involves more immediate and
precise feedback because the impact of the sale
presentation can generally be assessed from the
customer’s reaction. The
seller can see or hear potential buyer’s reaction and can
Intersecting your customer
• Consumer pathways
Wake up
Gym
Drive
to
work
Breakfast
Drive to
meeting
Switch on PC
Check
email
Tea
Break
Client
lunch
Agency
meeting
Drive
home
Chat
with son
Watch TV
Go
shopping
And
so to
bed
For a bank
TV news
ATM
Screen
saver
Cheque
credit via
SMS
Debit/cre
dit card
Direct mailer
Wake up
Gym
Drive
to
work
Breakfast
Drive to
meeting
Client
lunch
Switch on PC
Check
email
Agency
meeting
Tea
Break
Drive
home
Chat with
son
Watch TV
Go
shopping
FM, Signage eNewsletter
FM, Signage
TV news
And
so to
bed
For a soft drink
TV ad
Dispenser
Bottle on
table
FM,
Signage
POS on
table
Direct mailer
re event
Wake up
Gym
Drive
to
work
Breakfast
Drive to
meeting
Client
lunch
Switch on PC
Agency
meeting
Tea
Break
Check
email
Chat with
son
Drive
home
Dispenser
FM, Signage eNewsletter
FM, Signage
Watch TV
Go
shopping
TV ad
And
so to
bed
The output
• A multi-point, ‘3600’ campaign which can
deliver the desired communication and
provide a strong, consistent brand
experience
The Brand Experience
Wheel
Product&
presentations
Product
performance
Contests &
promos
Visual
merchandising
Help desks
Signage
Member
services
The Brand
Loyalty
Program
Retail points
Sponsorships
Partnerships
Advertising
After
marketing
Events &
contacts
Promotional Management
• Promotional Management involves coordinating the
promotional mix elements to develop a controlled
integrated program of effective Marketing communication
• Considerable thought is given on which elements of the
promotional mix to be used and how to combine them to
achieve the Marketing and Promotional objectives.
• Companies often face the difficult task of distributing the
total promotional budget across the promotional mix
elements
The IMC Planning Process
Review of the Marketing Plan
Promotional Program Situation Analysis
Analysis of Communication Process
Budget determination
Development of IMC
Implementation of IMC
Monitoring, Evaluation and controlling IMC
Review of the Marketing Plan
Review includes
• Internal marketing audit and review
• External analysis of market competition and environmental
factor
• Fixing specific marketing objective that provide direction
and time frame
• Selection of target markets and decisions on the plans for
the 4 elements of the marketing mix
Promotional Program
Situation Analysis
Consists of Internal Analysis
• Strengths and weakness of the firm, its ability to develop
and implement successful promotional program
• Review of the past programs and the success and failure
of
past programs
• Assessment of the product/service offering by the firm and
the firm itself
• Firm’s brand image and the implication of promotion
Promotional Program Situation Analysis
Consists of External analysis
• Focuses on factors such as characteristics of the firms
customers , analysis of market segments, positioning
strategies
• Competitors analysis
• Environmental analysis
Analysis of Communication Process
• This stage examines how the Company can effectively
communicate with consumers in the target market
• Communication decisions regarding use of various
source messages and channel factors are considered
• In this stage, the process the consumers goes through
in responding to marketing communication is analyzed
• Preliminary discussion on media mix option and their
cost implication is discussed in this stage.
• Communication objective is set which refers to what the
firm seeks to accomplish with its promotional program
Budget
• After the objectives are set, the promotion budget is
decided
• Two question are taken into consideration
- What will the program will cost?
- How will the money be allocated?
• Ideally the amount should be determined by what must
be done to achieve the communication objective
• In reality the budgets are determined using the methods
like how much money is available, brand or sales
revenue, competitors spends, share of voice to attained
in the category.
Monitoring, Evaluation and controlling
IMC
• It is the final stage and is important to know how well
the promotional program has met the communication
objective and the overall marketing goals and objectives
• Also why it has met or not met the communication
objective. This final stage is designed to provide the
managers with continual feedback that can be used as
an input into the planning process