Understanding Integrated Marketing Communication

1. a. Create Awareness b. Stimulate Demand c. Encourage Product Trial d. Retain Loyal Customers e. Combat Competitive • Inform • Persuade • Remind
2. Awareness Knowledge Liking Preference Conviction 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…
3. Product Communicates Price Communicates Place (Point of sales) Communicates Promotion Communicates. Product Communicates Product 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
4. Package Communicates • 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 Communication Is Not Just Restricted To Happens through all the other Ps
5. “ 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
6. 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
7. The Most Valuable Brands in the World http://brandirectory.com/ Source:
8. 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.
9. 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 )
10. 1 | Ogilvy & Mather Ltd 2 | GWT Hindustan Thompson Associates 3 | Rediffusion – DY&R 4 | Mudra Communications Ltd 5 | McCann-Erickson India Ltd 6 | Pressman Advertising and Marketing Ltd 7 | FCB-Ulka Advertising Ltd 8 | RK Swamy BBDO Advertising Ltd 9 | Trikaya Grey Advertising (India) Ltd
11. 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.
12. Point of purchase Public relations Direct marketing Interactive marketing Special events Packaging Sales promotion Media Adver- tising Publicity Direct response Traditional Marketing Approach Contemporary IMC Approach
13. 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 advertising Direct Marketing Sales Promotions Public Relations Personal Selling IMC Management
14. Advertising public relations sales promotion personal selling corporate identity exhibitions ambient 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 transport advertising
15. 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
16. 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
17. 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
18. Advertising Sales Promotion Type of Buying Decision Complex Routine Personal Selling Not Routine or Complex Advertising Public Relations Product Characteristics Business products • Personal selling • Sales promotion Consumer products Convenience = advertising Durables = personal selling Both = Public Relations
19. IMC–Audience Contact Points Marketing Communications Audience Point of Purchase Publicity Public Relations Packaging Direct Response Sales Promotion EventsOutdoor Broadcast Media Print Media Direct Mail Internet/ Interactive Media
20. 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 Sales promotion PR/ publicity Personal selling Direct marketing Internet/ interactive Advertising Develop integrated marketing communications program Model of the IMC Planning Process
21. 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
22. 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
23. 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
24. 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 Brand Awareness Brand Image 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
25. Brand Knowledge 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 Overall Evaluation (Attitude) Types of Brand Associations Favorability, Strength, and Uniqueness of Brand Association Brand Awareness Brand Image
26. What Is a Good Brand? Brand Prestige Marketing Communications Core Product / 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
27. 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 Core Product / 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
28. 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
29. 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 IMC IMC Provides better Trust among consumers. Effectiveness level than single message strategies. Brand differentiation. Connection with the company.
30. 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
31. 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?