Imc, Integrated Marketing Communication 3f2mt

Integrated Marketing Communication (IMC)

Marketing  The task of Identifying Consumer Needs and fulfilling

them.  This may include activities like Marketing Research, New Product Development, Distribution Management, Pricing, Analysis of Competition, Promotion etc.  The Marketing Mix  Product  Price  Place  Promotion

 Product  Conception and planning of actual product  Product quality, design, features, size, varieties,

warranty etc  Price  Setting the price of a product  Retail/Wholesale price, discounts, Margins etc

 Place  Getting the product to the final consumer  Distribution channel, market coverage, location,

transportation etc  Promotion  Informing consumers about organization’s offerings,

persuading them to buy it and reminding them about it from time to time.  Advertising, sales promotion, direct marketing, personal selling

Communication

Imparting, sharing or exchanging of Information, thoughts, ideas, views etc between two or more people.

Communication Process Message Sender

Encoding

Channel

Receiver

Barriers

Response

Decoding

Marketing Communication  It

involves all the activities concerned with effectively communicating product information to the consumers and persuading them to buy it.  The prime purpose of marketing communication is to seek a cognitive, affective or behavioral response of the consumer

Communication Response Hierarchy Stages

AIDA Model

Hierarchy of effects Model

Innovation Adoption Model

Information Processing Model

Cognitive Stage

Attention

Awareness Knowledge

Awareness

Presentation Attention Comprehension

Affective Stage

Interest Desire

Liking Preference Conviction

Interest Evaluation

Yielding Retention

Behavioral Stage

Action

Purchase

Trial Adoption

Behavior

Marketing Communication Mix/ Promotional Mix  Advertising  Direct Marketing

 Personal Selling  Interactive/Internet

Marketing  Publicity

 Sales Promotion

Marketing Communication Mix/ Promotional Mix  Advertising  Direct Marketing

 Personal Selling  Interactive/Internet

Marketing  Publicity

 Sales Promotion

 Advertising  Any paid form of non personal communication

about an organization, product, service or idea by an identified sponsor. -- ‘Non-Personal’ indicates the Mass Media -- ‘Paid form’ emphasizes that ment time or space must be purchased. -- ‘Communication’ indicates the Message and its Presentation -- ‘Identified Sponsor’ refers to the r who is communicating.

 Objectives of ment  Inform  Persuade  Remind

 Reinforce

 Classification of ments  Brand Building ments  Direct Response ments  National/Regional ments  Retail ments  Public Service ments  B2B ments

Marketing Communication Mix/ Promotional Mix  Advertising  Direct Marketing

 Personal Selling  Interactive/Internet

Marketing  Publicity

 Sales Promotion

 Sales Promotion  Marketing activity that provide extra value or incentive to the

sales force, distributor or the ultimate consumer and can stimulate immediate sales. -- Consumer Oriented Sales Promotion Directed to the end of a product (e.g. discounts, coupons, samples, contests, Point of Purchase material etc.) -- Trade Oriented Sales Promotion Directed to resellers like distributors, whole sellers, retailers etc to motive them to provide special for the organization’s products and market it. (Allowances, trade shows, sales contests etc)

Marketing Communication Mix/ Promotional Mix  Advertising  Direct Marketing

 Personal Selling  Interactive/Internet

Marketing  Publicity/Public

Relation  Sales Promotion

 Publicity and Public Relations  Publicity: Refers to non personal communication

regarding an organization/product not directly paid for or run under identified sponsorship. E.g. News Releases, Media Coverage, Word-ofMouth, Press Conferences  Public Relations: The management function which

evaluates public attitudes, identifies the policies and procedures of an organization with public interest and executes a program of action to earn public understanding and acceptance. E.g. Participation in community activities, fund raising, sponsorship of special events etc.

Marketing Communication Mix/ Promotional Mix  Advertising  Direct Marketing

 Personal Selling  Interactive/Internet

Marketing  Publicity

 Sales Promotion

 Personal Selling  It is a form of person-to-person communication in

which a seller attempts to assist and/or persuade the prospective buyers to purchase the company’s products or service.  More prominent one-to-one is there as compared to direct selling  Possibility of Moulding the message based upon the consumer’s reaction/response.

E.g. Face-to-face meeting, Telephonic conversations, personal online chat.

Marketing Communication Mix/ Promotional Mix  Advertising  Direct Marketing

 Personal Selling  Interactive/Internet

Marketing  Publicity

 Sales Promotion

 Direct Marketing  The marketer and the prospect interact directly, without

the presence of any intermediary like wholesaler, retailer etc.  Use of database is an important aspect of Direct

Marketing.  There is no prominent one-to-one interaction like personal selling.  Direct Response Advertising is one of the major tools of Direct Marketing. E.g. E-mail, catalogues, Home Shop 18, Star CJ Alive etc.

Marketing Communication Mix/ Promotional Mix  Advertising  Direct Marketing

 Personal Selling  Interactive/Internet

Marketing  Publicity

 Sales Promotion

 Internet/Interactive Marketing  Using network synergy for effective marketing.

E.g. Websites, Social Networking sites, Viral ads etc

Integrated Marketing Communication  A concept of marketing communication planning that

recognizes the added value of a comprehensive plan that evaluates the strategic role of a variety of communication discipline, for e.g. advertising, direct selling, sales promotion etc, and combines these disciplines to provide clarity, consistency and maximum communication impact.  An IMC approach seeks to have all of a company’s marketing and communication activities , project a consistent, unified image to the marketplace. It calls for a centralized messaging function so that everything a company says and does communicate a common theme and positioning.

Factors contributing to IMC  Shift of marketing budget from media advertising

to other forms of promotion, particularly consumer and trade oriented sales promotion.  A movement away from relying on advertising

focused approaches, which emphasize mass media such as national TV, Magazines etc, to solve communication problem  A shift in marketplace power from manufacturer to

retailer

Factors contributing to IMC  The rapid growth and development of Database

marketing.  Demand for greater ability from marketing

agencies and changes in the way agencies are compensated.  The rapid growth of Internet and other technological

advancements have changed the very nature of how companies do business and the way they communicate and Interact with the consumers.

IMC Planning Process

Review of Marketing Plan Situational Analysis of Promotional Program Analysis of Communication Process Budget Determination Developing IMC Program Advertising

Direct Marketing

Personal Selling

Sales Promo

Objectives, Message, Media Strategy

Integration & Implementation

Monitoring and Evaluation

Publicity/ PR

Internet Mkt

Review of Marketing Plan  Situational Analysis  The Industry Situation: Industry Practices,

base, Growth Rate etc  The Product Situation: Product strength & Weakness, sales and profit margins etc  The competitive Situation: Major competitors, their strength and Weakness etc  The Socio-cultural Situation: Taste & Preferences, cultural norms etc.  The distribution Situation: Channels of distribution, Modes of transportation etc.  The Promotion Situation: Current campaigns, their objectives, media, Budget etc.  Other factors: Economic, Political, Legal, Technological

 Marketing Objectives  What company wants to achieve from its Marketing

Plans  Marketing Strategies  Determining the various ways and options for

achieving marketing objectives and selecting the right line of action.  Implementation Strategies  Implementing what has been planned

Situational Analysis of Promotional Programs  Internal Factors:  Assessment of firm’s promotional capabilities.  Assessment of firm’s previous promotional programs

and its results.  Assessment of firm’s brand image and implication for promotion.  Assessment of relative strengths and weaknesses of the products  External Factors  Customer Analysis  Competitive Analysis: Promotional Strategies of

Competitors  Environmental Analysis: Current trends or developments related to advertising

Analysis of Communication Process  Analyze receiver’s response process  Analyze source, message and channel factors  Establish communication goals

Integrate & Implement  Integrate Promotional mix strategies  Creation and Production of ments  Purchase of Media Time, Space  Deg and Implementation of direct

marketing program  Deg and Distribution sales promotion material  Deg and Implementation of PR/ Public relations program  Deg and Implementation of Internet marketing programs.

Evaluation and Control  Evaluation of Promotional Program

Results/Effectiveness  Taking measures to control and adjust promotional strategies

Participants of IMC

r (Client)

Advertising Agency

Specialized Marketing Communication Services

Media

Collateral Service Providers

Participants of IMC

r (Client)

Advertising Agency

Specialized Marketing Communication Services

Media

Collateral Service Providers

 r  They have the products or service to be

marketed  Provide funds for advertising and promotion  Develop marketing program  Final decision maker of advertising and promotional programs to be used.

Participants of IMC

r (Client)

Advertising Agency

Specialized Marketing Communication Services

Media

Collateral Service Providers

 Advertising Agency  An outside firm that specializes in the creation,

production and placement of communication message and that may provide other services to the marketing and promotions process. Functions of Advertising Agencies  Client Servicing  Involves understanding the clients’ business in totality,

understanding their marketing strategy and convert it into an effective advertising program.  This is done through working with clients on one side and creative and media teams of the agency on the other.

 Creative Work  Ensuring creative output in form of a print ment, television commercial, radio jingle etc.  Copywriters, art persons play a key role into this.  Media Planning and Buying  Deciding on which form of Media is to be used for advertising.  Buying of space, time etc for ment placements.

Participants of IMC

r (Client)

Advertising Agency

Specialized Marketing Communication Services

Media

Collateral Service Providers

 Media  The media represents the channel through

which the ment is carried E.g: Print, TV, Radio, Outdoor etc.  These media must have the content that attracts audience so that the rs and the agencies would want to buy time and space with them.

Participants of IMC

r (Client)

Advertisin g Agency

Specialized Marketing Communication Services

Media

Collateral Service Providers

 Specialized Marketing Communication

Services  Direct Response Agencies  Rapp Collins (Part of Mudra Group)  Lintas Personal  Saatchi & Saatchi Direct  Sales Promotion Agencies  Kidstuff  Public Relation Agencies  Good relations India Pvt. Ltd.  Hammer & Partner  Ogilvy  Rediffusion PR  Interactive Agencies  Tribal DDB+Mudra Communication

Participants of IMC

r (Client)

Advertising Agency

Specialized Marketing Communication Services

Media

Collateral Service Providers

 Collateral Services  Collateral services are the wide range of

functions used by rs, ment agencies etc. E.g: Photographers, Image Banks, Model Coordinators, Marketing research firms etc

Regulatory Bodies ASCI (Advertising Standards Council of India) Goal: To maintain and enhance the public’s confidence in Advertising ASCI seeks to ensure that ments conform to their code of self regulation which requires ments to be:  Truthful and fair to consumers and competitors  Within the bounds of generally accepted standards of public decency  Non Promotion of products hazardous to the society at large.

Unconventional/ Promotional Media Sponsorships

Merchandising

Outdoor Media Yellow Pages

Promotional Products

Product Placements

 Sponsorships  When a company pays money to get promotional

mileage through any event, it is called Sponsorship.  Cultural/Entertainment Events: Award Functions, Fashion

Weeks etc  Sports Events: Olympic, Asian Games, Cricket etc  Cause Based Events: This normally refers to activities that are undertaken to promote cause such as that relating to Environment, Health, Security etc.

 Merchandising  Refers to that promotional activity which involves

the proper placement and promotion of the product at the point of purchase.  The main job of merchandising is to ensure that the company’s stocks are well placed in the retail shelves and are visible clearly to the consumer.  POP Material (Point of Purchase Material): Includes

promotional material that a company uses to promote its products at the point of sale. E.g: Product Banners, Posters, Display Stands etc.  Gifts

 Out of Home/Outdoor Media  Static: Hoardings, Bus Shelters, Railway Stations,

Airports, Neon Signs etc  Transit Media: Buses,Trucks, Trains, Cars, Taxis, Airplanes etc. Advantages:  Selectivity of Location

 Cost Effectiveness (as Compared to Mass Media)  Scope for Creativity

Disadvantages:  Waste Coverage: it is not likely that everyone ing by a

billboard is a part of Target Market.  Limited Message Capabilities  Measurement of Effectiveness  Wear out

 Promotional Products Marketing  The products that are distributed free, wherein recipients

don’t have to earn it by making some product purchase. E.g: Ball Pens, T-Shirts, Coffee Mugs, Calendars, Key Rings etc

Advantages: Selectivity  Flexibility  Frequency (Repetitive Exposure)  Goodwill 

Disadvantages: Company Image (if proper selection of promotional material is not made)  Saturation  Lead Time 

 Yellow Pages  Yellow Pages includes:  Specialized Directories  General Directories  Audiotex  Internet Directories

Advantages:  Wide Availability  Action Orientation  Costs  Frequency

 Disadvantages:  Localized Media  Wear out  Limited Creativity  Long Publishing Period

 Product Placements  Showing the use of Products in Movies, TV Serials,

Music Videos etc. Advantages:  Exposure

 Frequency  Source Association  Recall

Disadvantages  Time of Exposure  Lack of Control  Public Reaction