Integrated Marketing Communication

1. Integrated Marketing Communication

2. The Market Place • Complex • Dynamic • Monopoly virtually non-existent • The Consumer - the most pampered and sought-after ‘thing’

3. 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”.

4. 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

5. 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

6. 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.

7. 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

8. 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

9. 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 branding message efficiently and effectively

10. Developing Integrated Marketing Communication There is a working methodology for developing Integrated Marketing Communication

11. 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

12. Developing Integrated Marketing Communication CORE IDEA

13. Developing Integrated Marketing communication Co-op advertising PR & Events Channel promos Point of Sale CORE IDEA Promotions/ Sampling Direct Marketing Sales literature Glow Signs/ Signage

14. Developing Integrated Marketing Communication Mass Media Co-op advertising PR & Events Channel promos CORE IDEA Point of Sale Promotions/ Sampling Sales literature Direct Marketing Glow Signs/ Signage Mass Media

15. Integrated Marketing Communications(…contd.) The Components or Tools • Advertising • Direct Marketing • Interactive/Internet • Sales Promotion • Public Relations • Personal Selling

16. 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.

17. 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

18. 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

19. 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.

20. 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 the Internet especially through world wide web

21. 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.

22. 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

23. 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.

24. 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

25. 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

26. 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.

27. 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

28. 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.

29. 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.

30. 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 modify the message.

31. Wake up Gym Breakfast Client lunch Drive to meeting Drive to work Switch on PC Agency meeting Tea Break Check email Chat with son Drive home Watch TV And so to bed Go shopping Intersecting your customer • Consumer pathways

32. ATM TV news Screen saver Cheque credit via SMS Debit/credit card Direct mailer FM, Signage eNewsletter TV news FM, Signage For a bank Wake up Gym Breakfast Client lunch Drive to meeting Drive to work Switch on PC Agency meeting Tea Break Check email Chat with son Drive home Watch TV And so to bed Go shopping

33. Dispenser TV ad Bottle on table FM, Signage POS on table Direct mailer re event Dispenser FM, Signage eNewsletter TV ad FM, Signage For a soft drink Wake up Gym Breakfast Client lunch Drive to meeting Drive to work Switch on PC Agency meeting Tea Break Check email Chat with son Drive home Watch TV And so to bed Go shopping

34. The output • A multi-point, ‘3600’ campaign which can deliver the desired communication and provide a strong, consistent brand experience

35. Product performance Product& presentations Contests & promos Help desks Visual merchandising Member services The Brand Signage Retail points Loyalty Program Events & contacts Sponsorships After marketing Partnerships Advertising The Brand Experience Wheel

36. 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

37. 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

38. 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

39. 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

40. 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

41. 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

42. 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 methodslike how much money is available, brand or sales revenue, competitors spends, share of voice to attained in the category.

43. 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