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An Introduction toIntegrated MarketingCommunications
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Integrated MarketingCommunications
A method of carefully
coordinating all
promotional activities toproduce a consistent,
unified message that is
customer focused.
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IMC Popularity Growth7
Proliferation of thousands of mediachoices
Fragmentation of the mass market
Slash of advertising spending in favor
of promotional techniques
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How widespread is IMC?
In the manufacturing sector:
29.2% of all companies in this area have an IMCprogram
The category with the lowest IMC penetration is
furniture & fixtures at 4.9%
Highest is computer hardware at 60.2%, followed byinstrument & related products, 59.4%
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What are marketers
spending?In Business Marketings OutFront survey,
we found that: B-to-b marcomm spending: $73 billion Overall spending was up 14.5%
Online spending grew 143%
On average, companies devoted 1.2% of total
annual sales to b-to-b marcomm
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Breaking it down
Advertising: $17.7B
Sales Promo. : $13.6B Trade shows: $12.6B
Sales force management:$8B*
*excludes compensation &commission
Direct mktg.: $5.7B Online: $4.2B Market rsrch.: $3B Premiums/incentives: $2.7B
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IMCAudience Contact Points
MarketingCommunications
Audience
Point ofPurchase
Publicity PublicRelations
Packaging
Direct
Response
SalesPromotion
EventsOutdoorBroadcast
MediaPrint Media
Direct Mail
Internet/
InteractiveMedia
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IMC Principles Extend Worldwide
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Point ofPurchase
Publicity
PublicRelations
DirectMarketing
InteractiveMarketing
SpecialEvents
Packaging
SalesPromotion
DirectResponse
Traditional Approach to MarketingCommunications
MediaAdver-tising
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Contemporary IMC Approach
Point ofPurchase
Publicity
InteractiveMarketing
PublicRelations
DirectMarketing
SpecialEvents
PackagingSales
PromotionDirect
Response
Media
Adver-tising
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Traditional Compensation Performance Based CompensationTraditional 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
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
Marketing Revolution and Shifting Tides
From Toward
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The Evolution of IMC integrated marketing
communications (IMC) new advertising
orchestration
seamless communication all sources of brands or company
contact
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Reason for the Growing
Importance of IMC A shifting of marketing from media
advertising to other forms of promotion,
particularly consumer and trade-oriented sales promotions.
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A movement away from relying onadvertising-focused approaches, whichemphasize mass media such as network
television and national magazines, to solvecommunication problems.
A shift in marketplace power frommanufacturers to retailers.
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The rapid growth and development of
database marketing. Demands for greater accountability from
advertising agencies and changes in the wayagencies are compensated.
The rapid growth of the Internet, which ischanging the very nature of how companiesdo business and the ways they communicate
and interact with consumers.
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Dell Focuses on Building a RelationshipWith Customers
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C d d k
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Coordinated Marketing MixElements Build Image
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Advertising
Direct Marketing
Interactive/Internet Marketing
Sales Promotion
Publicity/PublicRelations
Personal Selling
Advertising
Direct Marketing
Interactive/Internet Marketing
Sales Promotion
Publicity/PublicRelations
Basic Elements of the Promotional Mix
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Primary vs. SelectiveDemand AdvertisingPrimary vs. SelectiveDemand Advertising
Business-to-Business Advertising
Organizations
National Advertising
Retail/Local Advertising
Professional Advertising
Trade Advertising
National Advertising
Retail/Local Advertising
Business-to-Business Advertising
Professional Advertising
Classifications of Advertising
Consumers
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An Example of B-to-B Advertising
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DirectResponse
Advertising
DirectResponse
Advertising
DirectMail
Cataloging
Telemarketing
InternetSales
Shopping
Channels
DirectMail
Telemarketing
Catalogs
Shopping
Channels
Direct Marketing is Part of IMC
DirectMarketing
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Builds andMaintainsCustomer
Relationships
ObtainsCustomerDatabase
Information
Communicatesand InteractsWith Buyers
ProvidesCustomer
Service andSupport
Educates orInforms
Customers
A PersuasiveAdvertising
Medium
A Sales Toolor an ActualSales Vehicle
ObtainsCustomerDatabase
Information
Communicatesand InteractsWith Buyers
ProvidesCustomer
Service andSupport
Educates orInforms
Customers
A PersuasiveAdvertising
Medium
A Sales Toolor an ActualSales Vehicle
Using the Internet as an IMC Tool
TheInternet
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Ai li E C t t D
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Airlines Encourages Customers to DoIt All Online
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Consumer-oriented
[For end-users]
Trade-oriented
[For resellers]
Sales Promotion Tools
EventsEvents
Loyalty ProgramsLoyalty Programs
Bonus PacksBonus Packs
Refunds/RebatesRefunds/Rebates
Contests/SweepstakesContests/Sweepstakes
PremiumsPremiums
SamplesSamples
CouponsCoupons
Coop
Advertising
Coop
Advertising
TradeShowsTradeShows
TrainingProgramsTrainingPrograms
POP DisplaysPOP Displays
TradeAllowances
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Introduce NewProducts
Get ExistingCustomers to
Buy More
Attract New
Customers
Maintain Sales InOff Season
Increase RetailInventories
Tie InAdvertising &
Personal Selling
EnhancePersonal Selling
Combat
Competition
Introduce NewProducts
Get ExistingCustomers to
Buy More
Attract New
Customers
Maintain Sales InOff Season
Increase RetailInventories
Tie InAdvertising &
Personal Selling
EnhancePersonal Selling
Various Uses of Sales Promotion
SalesPromotion
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Advertising Versus Publicity
Advertising Publicity
Tentative
Low
Low/Unspecified
Uncontrollable
Great
Lower
Measurable
Schedulable
High/Specific
High
Specifiable
Undetermined
Higher
Little
Factor
Control
Credibility
Reach
Frequency
Cost
Flexibility
Timing
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
ersona versus mass
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ersona versus massmarketing communications
Personal communications Mass communications
Reach of big audience
Speed Slow (selling), faster (DM Fast
Costs/reached person High Low
Influence on individual
Attention value High Low
Selective perception Relatively lower High
Comprehension High Moderate-low
Personal communicationsMass communications
Feedback
Direction Two-way One-way
Speed of feedback High Low
Measuring effectiveness Accurate Difficult
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InterviewsInterviews
FeatureArticles
SpecialEvents
Press
Conferences
NewsReleases
FeatureArticles
SpecialEvents
NewsReleases
Publicity Vehicles
PublicityVehicles
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CorporateAdvertisingCorporate
AdvertisingCause-related
MarketingCause-related
Marketing
PublicityVehicles
Community
Activities
Public Affairs
Activities
SpecialPublications
Special Event
Sponsorship
PublicityVehicles
Community
Activities
Public Affairs
Activities
SpecialPublications
Public Relations Tools
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
DuPont Uses Advertising to Enhance
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DuPont Uses Advertising to EnhanceIts Corporate Image
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Integrated Marketing Communications Planning Model
Promotional Program Situation AnalysisAnalysis of the Communications Process
Budget Determination
Develop Integrated Marketing Communications Programs
Review of Marketing Plan
AdvertisingSales
PromotionPR/
PublicityPersonalSelling
DirectMarketing
AdvertisingObjectives
SalesPromotionObjectives
PR/Publicity
Objectives
PersonalSelling
Objectives
DirectMarketingObjectives
MessageStrategy
SalesPromotionStrategy
PR/PublicityStrategy
PersonalSelling
Strategy
DirectMarketingStrategy
Integration & Implementation of Marketing Communications Strategies
Monitor, Evaluate & Control Promotional Program
Internet/Interactive
Internet/InteractiveObjectives
Internet/InteractiveStrategy
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Th M k i Pl
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1. A detailed situation analysis
2. Specific marketing objectives
3. A marketing strategy and program
4. A program for implementing the strategy
5. A process for monitoring and evaluating performance
1. A detailed situation analysis
3. A marketing strategy and program
4. A program for implementing the strategy
2. Specific marketing objectives
The Marketing Plan
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Models of Marketing
Communication The Black box model based on stimulus response
theory. The AIDA model from the early development phase
was explained in detail. The model assumes that a
customer follows Attention - Interest - Desire -Action - Satisfaction sequence.
The third model, Lavidge and Steiner, assumesthat a customer goes through six stages beforemaking a purchase. The stages in sequentialmanner are: Awareness - Knowledge - Liking -Preference - Conviction - Purchase.
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Chapter 14 Version 6e 34
The AIDA Concept
Attention
Interest
Desire
Action
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Contd:-
The DAGMAR model suggests the stages,Awareness - Comprehension - Conviction -Action.
The Joyce model is based on theinterrelations between advertising,purchasing and attitudes.
The Heightened appreciation model suggeststhat advertising strategy should be based on
distinct and important attribute of the brand. The FCB model divides buying behaviourusing two parameters: high involvement andlow involvement versus thinking and feeling.
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Buyer Behaviour &
InvolvementCriteria High
InvolvementLowInvolvement
Difference inBrands
COMPLEX VARIETYSEEKING
FewDifference inBrands
DISSONANCE REDUCING
HABITUALBUYING
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Ethical BehaviourEthics are moral principles and values that govern the actions and decisionsof an individual or group. In the marketing context, ethics is the moral
evaluation of marketing activities and decisions as right or wrong.
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Individual Factors
Organisational Factors
Perceived Opportunity
Understanding Ethical Conduct
Understanding Ethical Behaviour in Marketing Decisions
Individual
Factors
PerceivedOpportunity
OrganisationalFactors
Resulting Ethical orUnethical Behaviour
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When marketing managers face ethically challenging situations and are unable to
resolve them all alone, they experience ethical conflict, though they make
decisions in their everyday lives based on their personal concepts of right or
wrong.
Individual Factors
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Organisational Factors
Corporate culture refers to a set of values, beliefs, goals, norms, etc., shared by
its members and expressed in every day working through work habits, and other
activities.
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Perceived Opportunity
Opportunity refers to a set of conditions perceived as favourable that limit
barriers or provide rewards. Most managers in marketing do not deliberately
take advantage of every opportunity for unethical conduct in their companies.
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Marketing Related Ethical IssuesEthical issue refers to some situation, problem, or opportunity that can berecognised and requires a person or organisation to select from among
different actions that must be evaluated as right or wrong, or ethical or
unethical.
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Pyramid of Corporate Social Responsibility
Philanthropic
(be a good
corporate citizen)
Contribute to improve the
quality of community life.
Ethical Conduct(do the right thing, avoid harm)
Obligation to do what is right,
just, and fair, and avoid harm.
Legal
(obey the laws)
Play by the rules of game.
Economic
(earn profits)
Make profitable use of resources.
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Social Responsibility Issues Consumer Movement (Consumerism)
Ecological Concerns
Green Marketing
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Social Responsibility Issues
Indian Scene Consumer Protection Act, 1986
Consumer Forums
Competition Policy
Corporate Responsibility Issues
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Ethical Issues
The main ethical issues in advertising are puffery, badtaste, stereotyping, targeting children, promotingunhealthy products and subliminal advertising. Pufferyrefers to making exaggerated claims about the product,which cannot be proved. Advertisements are said to bein bad taste when they offend people. Stereotypingrefers to portraying men or women in a particular role,with a negative image. Advertisements targeted atchildren are considered unethical as children are notcapable of processing the given information.Consumption of unhealthy products like fast food and
tobacco products lead to bad health. So promoting suchproducts is not good. In subliminal advertising, theviewer is exposed to product messages and pictures insuch a way that he is not aware of watching them
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Social Responsibility and
Marketing Ethics
The issues of marketing practices and ethics and social Responsibility are considered tobe
contradictions almost an oxymoron to most people. Marketing professionals have facedcriticism
both in USA and India about their activities which harm consumers, like
deceptive practices, high pressure selling, high prices, shoddy or unsafe
products, planned obsolescence, and poor service to disadvantagedconsumers.
Deceptive practices fall into three groups; pricing, promotion, and packaging.
Deceptive pricing: Announcing super discount offers and attracting customers through
false advertising, subsequent visits prove that merchandise attracting maximum discounts
is out of stock and the retail prices are kept unethically higher before extending highdiscounts.
Deceptive promotion: Luring customers to the store with promises which are
unreasonable and then setting new terms to the scheme once purchase is made. Misrepresenting the products features or performance to misguide consumers.
Deceptive packaging: Exaggerating package contents through subtle design, usingmisleading labelling, or describing size in misleading terms.
Since profitable companies value long term customer relationships which are based ontrust and value, using deceptive practices can prove to be very costly in the long run.