What is IMC? • The practice of unifying all marketing communication efforts so they send a clear, consistent, persuasive message to target audiences.
Book IMC Example http://thedarkknight.warnerbros.com/
Advertising Paid, sponsor-identified, nonpersonal (media) communications. • Advantages • Low cost per contact • High degree of control • Best differentiation tool • Best brand equity builder • Disadvantages • Very high overall cost • Difficult to determine effectiveness • Credibility problems • Clutter
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
Sales Promotion • Advantages • Response is more immediate than advertising. • Appeals to price sensitive consumers • Generates extra interest in advertising • Easy to measure effects • High control • Disadvantages • Short term impact • Often abused • Promotion wars • Negligible brand image effect
Publicity Non-paid, unsponsored, nonpersonal (media) communications. • Advantages • Most credible • Low cost mass communication • Disadvantages • Very little control • Requires media cooperation. • Can be negative.
Personal Selling • Advantages • Low overall costs • Best for complex info • Very specific targeting • Direct feedback • Flexible message • Disadvantages • Very high cost per contact • Difficult to communicate a uniform message • Medium level of control
IMC Players • Advertiser or Client • Advertising Agency • AAAA; AAF; ARF • Media Organizations • Marketing Communications Specialists • Direct Marketing Agencies • Sales Promotion Agencies • Interactive Agencies • Public Relations Firms • Collateral Services • Namelab; Strategic Name Development
Reasons for Using an Agency • Obtain services of highly skilled specialists • Artists • Writers • Media analysts • Researchers • Others with specific skills • Obtain an objective point of view • Free of internal policy constraints and biases • Broad range of experience, having worked with: • Diverse marketing problems • Various types of clients
Full Range of Marketing, Communication and Promotion services Planning, creating, producing advertising Performing research Selecting media Non-Advertising Services Strategic market planning Sales promotion and sales training Production of trade show materials Package design Public relations and publicity Full-Services Agencies
Agency Services • Account services • The link between agency and client • Managed by the Account Executive • Marketing services • Research department may design and execute research programs • Media department may analyze, select and contract media resources • Creative services • Creation and execution of ads • Copywriters, artists, other specialists
Other Agencies and ServicesCreative Boutiques • Provide only creative services • Other functions provided by the internal client departments • Full-service agencies may subcontract with creative boutiques
Other Agencies and ServicesMedia Buying Services • Specialize in buying media, especially broadcast time • Agencies and clients develop media strategy • Media buying organizations implement the strategy and buy time and space
Direct Response Agencies • Data Base Management • Direct Mail • Research • Media Services • Creative • Production
Sales Promotion Specialists • Contests • Sweepstakes • Refunds and rebates • Sampling programs • Incentive programs
Public Relations Firms • Strategy Development • Program Planning • Generating Publicity • Lobbying • Public Affairs • Image portrayal • Damage control
Interactive Agencies • Interactive Media Creation • Web sites • Web banner ads • CD-ROMs • Kiosks • Digitized Content • Audio • Video • Animation
Agency Compensation • The Commissions Method • Agency usually receives 15 percent • Commissions are paid by the media • Commission system is controversial • System is becoming less common • Fee Arrangements • Fixed fee method • Fee-commission method • Cost-Plus Agreements • Incentive-Based Compensation • Percentage Charges
Marketing Strategy • The Marketing Concept • What is Marketing Strategy? • Providing superior customer value. • What is value? • The marketing Strategy Process: • Opportunity Identification / Situation Analysis • S-T-P • Marketing mix
Segmentation, Targeting, and Positioning Market Segmentation 1. Identify segmentation variables and segment the market 2. Develop profiles of resulting segments Market Targeting 3. Evaluate the attractiveness of each segment 4. Select the target segment(s) Product/Service Positioning 5. Identify possible positioning concepts for each target segment 6. Select, develop, and communicate the chosen positioning concept
Segmentation • Segmentation is a concept that recognizes the diversity in the marketplace. The process of segmenting the market produces clusters of people who enjoy similar product features.
Segmentation • Goal: Identify segments that seek different benefits and, therefore, will be responsive to different positionings of the product/offerings. • Means: Link benefits sought to characteristics that make customers readily identifiable and accessible. For example: • User status, Demographics, Media exposure patterns, … • Caution: Avoid over-segmenting; make sure that each segment is substantial enough to justify a unique positioning effort.
Market Segmentation • Bases for Segmentation • Usage • Non-users vs. Category users • Competitor users vs. Own brand users • Geographic • Zip Code Analysis • Regional Analysis • Demographic • Age • Gender • Income • Others • Benefit Sought • Psychographic
Market Segmentation Usage Segmentation • Category Usage Nonusers (%) Light Half %pop %use Heavy Half %pop %use Heavy users: Efficiency /Profit Caution: Majority Fallacy • Brand Usage • $ to Sales - Target people/companies with profile of current user • $ to Opportunity - Target users of competitive brands or nonusers
Market Segmentation Geographic Segmentation • Zip Code Analysis • Regional Analysis http://www.census.gov/cgi-bin/gazetteer Demographic Segmentation • Age • Gender • Income • Others Volkswagen Ads: 5-second-rule.mov Flirting.mov Synchronicity II.mov Turbonium.mov Smarter Looking.mov
Market Segmentation Psychographic Segmentation • Lifestyles • Values • Attitudes • Interests • Opinions www.claritas.com
Market Segmentation • Criteria For Segmentation • Identifiable • Accessible • Responsive • Significant • Capturing Segments • Instruments Available • Price • Product • Distribution • Promotion • Common Positioning Errors • Positioning in a crowded market space • Positioning on an unimportant attribute
Positioning • Positioning requires designing a company and product image and developing a marketing mix to promote the image to the target segment(s).
Positioning Statement • The key concept of an idea to be communicated to a target market via elements of the marketing mix. • Elements: • Target • Concept (Frame of Reference) • Point of Difference
Communications Objectives • Messages are designed to achieve specific strategic goals. • The “BellSouth Yellow Pages” campaign’s four objectives: • Introduce the new brand name and achieve • 50% unaided brand awareness • 80% aided brand awareness • Exceed unaided ad recall norm of 14% • Improve consumer usage share above 85% • Increase revenues by 2.6%
Product Decisions • A product is a bundle of benefits or values • Product symbolism refers to what a product or brand means to customers • Product quality, branding, packaging, and company name contribute to product image • BRANDING: • Brand name communicates attributes and meaning • Advertising creates and maintains brand equity • PACKAGING: • Packaging has become increasingly important • It is often the customer’s first exposure to product
Pricing Decisions • Price must be consistent with perceptions of the product • Higher prices communicate higher product quality • Lower prices reflect bargain or “value” perceptions • A product positioned as high quality while carrying a lower price than competitors will confuse customers • Price, advertising and distribution be unified in identifying the product position
Distribution Channel Decisions • Channel decisions involve: • Selecting • Managing • Motivating • Independent intermediaries: • Wholesalers • Distributors • Brokers • Retailers