an introduction to integrated marketing communication
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IMCTRANSCRIPT
An Introduction to Integrated Marketing Communication
Lecture-1
Incredible India capture the world through Integrated Communications
Marketing: American Marketing Association (AMA), the organization that represents marketing professionals in the United States and Canada, defined marketing as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
This definition of marketing focused on exchange as a central concept in marketing and the use of the basic marketing activities to create and sustain relationships with customers
Marketing Focuses on Relationships and Value
AMA adopted a revised definition of marketing in 2004, which is as follows:
Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
Value is the customer’s perception of all of the benefits of a product or service weighed against all the costs of acquiring and consuming it. Benefits can be functional (the performance of the product), experiential (what it feels like to use the product), and/or psychological (feeling such as self-esteem or status that result from owning a particular brand). Costs include the money paid for the product or service as well as other factors such as acquiring information about the product/service, making the purchase, learning how to use it, maintaining the product, and disposing of it. The focus on customer relationships and value has led many companies to emphasize relationship marketing, which involves creating, maintaining, and enhancing long-term relationships with individual customers as well as other stakeholders for mutual benefit.
Advances in information technology, along with flexible manufacturing systems and new marketing processes, have led to mass customization, whereby a company can make a product or deliver a service in response to a particular customer’s needs in a cost-effective way.
Marketers are giving more attention to the lifetime value of a customer because studies have shown that reducing customer defections by just 5 percent can increase future profit by as much as 30 to 90 percent. As companies focus more attention on customer retention, many are developing customer relationship management (CRM) programs.
Consumers can log on to the Dell website and build their own computers or to NikeiD.com to design personalized athletic shoes and other products.
Marketing Mix
These four Ps—product, price, place (distribution), and promotion—are elements of the marketing mix. The basic task of marketing is combining these four elements into a marketing program to facilitate the potential for exchange with consumers in the marketplace.
The primary is on one element of the marketing mix: the promotional variable
Understanding Marketing Communication
Marketing communication is an important P of marketing. It involves all activities concerned with effectively communicating product information to selected target audience.
A target audience is the group of consumers to whom marketing communication messages are directed.
All marketing communication is done with a purpose . The prime purpose of communication is to seek a cognitive, affective and behavioural response.
Marketing Communication Mix
Marketing communication is the set of all tools to promote a product. We can divide these marketing communication mix tools in to High and Low control messages.
High Control messages are those elements of the communication mix over which an organization has greater control since they can be explicitly planned, executed and delivered to consumers. E.g. Advertising, sales Promotion, Direct Marketing, Special events etc.
Low control messages are spontaneous and not designed formally. E.g. an organisation’s crisis management, Shareholders Interaction, Employee Behaviour, Gossip, Consumer word of Mouth etc.
COMMUNICATION MIX TOOLS
Traditionally the promotional mix has included four elements: advertising, sales promotion, publicity/public relations, and personal selling.
Each element of the promotional mix is viewed as an integrated marketing communications tool that plays a distinctive role in an IMC program. Each may take on a variety of forms. And each has certain advantages.
Advertising
Interactive/ Internet marketing
Sales promotion
Direct marketing
Publicity/ public relations
Personal selling
Unconventional Media
Packaging
Point of Purchase (POP) or Merchandise Material
Advertising Specialities
Sponsorships
Event Marketing
Trade shows and Exhibits
Customer Service
ADVERTISING
The non-personal
presentation of
ideas and
products by an
identified sponsor.**PAID FOR**
ADVERTISING
The word advertising is derived from its Latin root ad verter, which means “to turn towards” and to attract attention to”.
According to “Philip Kotler” & American Marketing Association. The advertising is any paid form of non personal presentation of
Ideas
Goods
Services by an identified sponsor that is called Advertising.
Objectives of Advertising
Inform
Persuade
Remind
Reinforce
Types of Advertising: Classified on the basis of the nature or purpose of advertisement
Brand Building Advertisement
Tactical Advertising- Direct Response Advertising
National Advertising
Retail Advertising
Public Service Advertising
Corporate Advertising
Trade Advertising
SALES PROMOTION
stimulate purchasesincrease store traffic
2 for 1 Sale
Buy One, Get One Free
$2 off after 8PM on Tuesday
GOAL is to enhance and speed up the effectiveness of the other three.
Marketing activities-other than personal selling, advertising and public relations-that stimulate consumer buying and dealer effectiveness.
SALES PROMOTION
Free samplesFree samples
ContestsContests
PremiumsPremiums
Trade ShowsTrade Shows
Vacation GiveawaysVacation Giveaways
CouponsCoupons
Popular Toolsfor
Consumer SalesPromotion
Popular Toolsfor
Consumer SalesPromotion
SALES PROMOTION TOOLS
direct communication
with consumers
to generate a response in the form of an order,
a request for further information,
or a visit to a retail outlet.
DIRECT MARKETING
Slide 18-55
DIRECT MARKETING
• The Growth of Direct Marketing
Direct Orders
• The Value of Direct Marketing
Lead Generation
Traffic Generation
• Technological, Global, andEthical Issues in Direct Marketing
Slide 18-56
FIGURE 18-9 Direct marketing expenditures, sales, and employment by medium
The marketing function thatevaluates public attitudes, identifies areas within the organization that
the public may be interested in, and executes a program of action to earn
public understanding and acceptance.
PUBLIC RELATIONS/ PUBLICITY
PUBLICITYPUBLIC RELATIONS
Creating demand
for a business or
product by placing
news about it in
the media
Internet/Interactive Marketing
The internet is the ultimate direct marketing medium and fastest growing advertising medium. While internet remains the most powerful digital media other interactive media also allow for active participation from or interactivity with the recipient.
In other words , Interactive media allow two way communication b/w organisation and its audiences. E.g. mobile telephony, Computer games, Kiosk based terminals, Interactive television, Electronic storage media, etc.
Ways the Internet Can Be Used as a Source of Publicity
A company web site can be used to obtain and display positive feedback.
“Tae-Bo has really changed my life. I’ve lost weight, toned-up, and feel better than ever.”
-Susie Wells, CA
Ways the Internet Can Be Used as a Source of Publicity
A business’s goods, services, or web site might be mentioned in an Internet newsgroup.
OnlineNews.com
Car shopping on the webBuying a car on the web just got easier! Autobytel.com will help you get the financing, pick out the model, color and extras. Then they provide a quote from a local dealer. All at the touch of a keypad.
PERSONAL SELLINGThe PERSONAL presentation of a product
or company to one or more potential buyers
the two-way flow of communication between
a buyer and seller, often in face-to-face
encounter, designed to influence a person’s
or group’s purchase decision or group’s
purchase decision.
PERSONAL SELLING
A method of carefully coordinating all promotional
activities to produce a consistent, unified message that
is customer focused.
I can send it out, but how do I know what was received ?
INTEGRATED MARKETING COMMUNICATIONS
NoiseNoise
SourceSource EncodingMessage
EncodingMessage
FeedbackChannel
FeedbackChannel
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
THE COMMUNICATION PROCESS
The process by which we exchange or share meanings through a common set of symbols.
Criteria for Selecting Media
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
The promotional mix
Slide 18-23
FIGURE 18-A Factors that influence the use of promotional tools
Slide 18-24
INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX
• The Target Audience
Slide 18-27
INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX
• The Product Life Cycle
Introduction Stage
Growth Stage
Maturity Stage
Decline Stage
Slide 18-28
FIGURE 18-3 Promotional tools used over the product life cycle of Purina Dog Chow
Slide 18-30
INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX
• Product Characteristics
Complexity
Risk
Ancillary Services
Slide 18-32
INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX
• Stages of the Buying Process
Prepurchase Stage
Purchase Stage
Postpurchase Stage
Slide 18-33
FIGURE 18-4 How the importance of promotional elements varies during the stages of consumer’s purchase decision
Slide 18-34
INTEGRATED MARKETING COMMUNICATIONS—DEVELOPING THE PROMOTIONAL MIX
• Channel Strategies
Push Strategy
Pull Strategy
• Direct-to-Consumer
Slide 18-35
FIGURE 18-5 A comparison of push and pull promotional strategies
Slide 18-41
DEVELOPING AN IMC PROGRAM
• Identifying the Target Audience
Hierarchy of Effects
• Awareness
• Interest
• Specifying Promotion Objectives
• Evaluation
• Trial
• Adoption
Slide 18-42
FIGURE 18-6 The promotion decision process
Slide 18-45
DEVELOPING AN IMC PROGRAM
• Setting the Promotion Budget
Percentage of Sales Budgeting
Competitive Parity Budgeting (Matching Competitors or Share of Market)
All-You-Can-Afford Budgeting
Objective and Task Budgeting
Slide 18-46
FIGURE 18-7 U.S. promotion expenditures by companies in 2003
Slide 18-47
FIGURE 18-8 The objective and task approach
Slide 18-48
DEVELOPING AN IMC PROGRAM
• Selecting the Right Promotional Tools
• Designing the Promotion
• Scheduling the Promotion
ETHICS AND SOCIAL RESPONSIBILITY ALERT
How Do You Like Your E-Mail? “Opt-out” or “Opt-in” Are Your Choices
Slide 18-58
Corporate Plan (Corporate Objectives and Strategies)
Marketing Plan( Marketing Objectives and strategies)
Steps involved in the Marketing PlanSituational AnalysisSet Marketing ObjectivesDevise Marketing StrategiesFrame Implementation factorMonitor and evaluate performance
IMC Plan(IMC Objectives and strategies)
• Situational Analysis• Determine a Problem or Opportunity• Determine the Communication Objectives• Determine the Budget• Develop IMC Strategies
• Select Target Audience• Arrive at the Communication Mix• Design Message strategies• Determine Media strategies
• Implement strategies and monitor activities• Evaluate the Planning Process
Reasons for Growing IMC Importance
Decreasing Impact of Traditional Advertising
Proliferation of new ways to reach Consumers
Demand for greater Accountability
Growth of Database Marketing
Growth of International Marketing
Emphasis on Relationship Marketing
Tighter Control over Communication
Changing Compensation structure of agencies
Need For a single Brand Custodian
Need for creating brand identity: Brand, Brand Recognition, Brand Identity, Brand equity.
Benefits of IMC
IMC provides greater:
Brand Differentiation
Accountability with in a firm
Trust Among Consumers
Levels of effectiveness in cutting through message clutter than single strategies
IMC wraps communications around customers and helps them move through the various stages of the buying process.
This 'Relationship Marketing' cements a bond of loyalty with customers which can protect them from the inevitable onslaught of competition.
IMC also increases profits through increased effectiveness. At its most basic level, a unified message has more impact than a disjointed myriad of messages.
IMC can boost sales by stretching messages across several communications tools to create more avenues for customers to become aware, aroused, and ultimately, to make a purchase.
Carefully linked messages also help buyers by giving timely reminders, updated information and special offers which, when presented in a planned sequence, help them move comfortably through the stages of their buying process.
IMC also makes messages more consistent and therefore more credible. This reduces risk in the mind of the buyer which, in turn, shortens the search process and helps to dictate the outcome of brand comparisons.
Barriers to the adoption of IMC Top Management Support (lack of).
Accurate Metrics (lack of).
Manpower (lack of).
Changes needed in the organization
Theoretical and practical foundations (lack of).