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An Introduction to Integrated Marketing Communications

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Title: An Introduction to Integrated Marketing Communications


1
  • An Introduction to Integrated Marketing
    Communications

2
The Marketing Promotional Mixes
  • Product or Service
  • Pricing Policy
  • Distribution Method
  • Promotional Mix
  • Advertising
  • Direct Marketing
  • Sales Promotion
  • Publicity/Public Relations
  • Personal Selling
  • Interactive/Internet Mktg

IMC Tools
3
What is IMC?
  • The practice of unifying all marketing
    communication efforts so they send a clear,
    consistent, persuasive message to target
    audiences.

4
Integrated Marketing Communications
  • A marketing communications planning concept.
  • Recognizes the value of a comprehensive plan.
  • A plan that evaluates the strategic roles of
    several communications disciplines
  • General advertising
  • Direct response
  • Sales promotion
  • Public relations
  • Combines the disciplines to provide
  • Clarity
  • Consistency
  • Maximum communications impact

5
Why is IMC becoming so important?
  • Increased clutter.
  • Decreased message credibility.
  • Increased price competition.
  • Fragmented media markets.
  • Shift in channel power.
  • The development of database marketing.
  • Changes in information technology.

6
IMC Example
Book
http//thedarkknight.warnerbros.com/
7
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

8
Direct Marketing
  • Part of the IMC program
  • Typically has separate
  • Objectives
  • Budgets
  • Strategies
  • Direct marketing methods
  • Direct mail
  • Cataloging
  • Telemarketing
  • Direct response ads
  • Internet sales

9
Interactive/Internet Marketing
  • An entirely new era
  • Little or no history or experience
  • Rapidly changing communications technology
  • Unprecedented growth and development
  • Multiple Internet roles
  • As a persuasive advertising medium
  • As a means to educate or inform customers
  • As a sales tool or an actual sales vehicle
  • To obtain customer database information
  • To communicate and interact with buyers
  • To provide customer service and support
  • To build and maintain customer relationships

10
Sales Promotion
Marketing activities that provide extra value or
incentives to the sales force, distributors, or
ultimate consumers and can stimulate immediate
sales.
  • Trade-oriented
  • Targeted toward marketing intermediaries such as
    retailers, wholesalers, or distributors
  • Buying allowances
  • Promotional allowances
  • Price deals
  • Sales contests
  • Trade shows
  • Customer-oriented
  • Targeted to the ultimate users of a product or
    service
  • Coupons
  • Sampling
  • Premiums
  • Rebates
  • Contests
  • Sweepstakes
  • POP materials

11
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

12
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

13
Publicity
Non-paid, unsponsored, nonpersonal (media)
communications.
  • Disadvantages
  • Very little control
  • Requires media cooperation.
  • Can be negative.
  • Advantages
  • Most credible
  • Low cost mass communication

14
Public Relations
The management function which evaluates public
attitudes, identifies the policies and procedures
of an individual or organization with the public
interest, and executes a program of action to
earn public understanding and acceptance.
  • Tools used by Public Relations
  • Publicity
  • Special publications
  • Community activity participation
  • Fund-raising
  • Special event sponsorship
  • Public affairs activities

15
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

16
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

17
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

18
Full-Services Agencies
  • Non-Advertising Services
  • Strategic market planning
  • Sales promotion and sales training
  • Production of trade show materials
  • Package design
  • Public relations and publicity
  • Full Range of Marketing, Communication and
    Promotion services
  • Planning, creating, producing advertising
  • Performing research
  • Selecting media

19
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

20
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

21
Other Agencies and Services Media 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

22
Direct Response Agencies
  • Data Base Management
  • Direct Mail
  • Research
  • Media Services
  • Creative
  • Production

23
Sales Promotion Specialists
  • Contests
  • Sweepstakes
  • Refunds and rebates
  • Sampling programs
  • Incentive programs

24
Public Relations Firms
  • Strategy Development
  • Program Planning
  • Generating Publicity
  • Lobbying
  • Public Affairs
  • Image portrayal
  • Damage control

25
Interactive Agencies
  • Interactive Media Creation
  • Web sites
  • Web banner ads
  • CD-ROMs
  • Kiosks
  • Digitized Content
  • Audio
  • Video
  • Animation

26
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

27
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

28
Situation Analysis
  • Internal Factors
  • Assessment of the firms promotional organization
    and capabilities
  • Review of the firms previous promotional
    programs
  • Assessment of firm or brand image and
    implications for promotion
  • Assessment of relative strengths and weaknesses
    of product/service
  • External Factors
  • Customer analysis
  • Competitive analysis
  • Environmental analysis

29
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
30
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.

31
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.

32
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

33
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

34
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
35
Market Segmentation
Psychographic Segmentation
  • Lifestyles
  • Values
  • Attitudes
  • Interests
  • Opinions

www.claritas.com
36
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

37
Positioning
  • Positioning requires designing a company and
    product image and developing a marketing mix to
    promote the image to the target segment(s).

38
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

39
Potential Communications Objectives
  • Individual sales
  • Customer loyalty
  • Company image
  • Brand image
  • Store patronage
  • Service contract
  • An inquiry
  • A visit by the prospect
  • Product trial
  • Prescription for use
  • Recommendation
  • Adoption of the product

40
Communications Objectives
  • Messages are designed to achieve specific
    strategic goals.
  • The BellSouth Yellow Pages campaigns 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

41
Major Aspects of the Advertising Program
  • Message development
  • Called Creative Strategy
  • Determine basic appeal
  • Determine main message
  • Media strategy
  • Communication channels
  • Type of media . . .
  • Newspapers?
  • Magazines?
  • Radio?
  • Television?
  • Outdoor?
  • Specific media . . .
  • What specific papers, magazines, stations,
    billboards, or other media?

42
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 customers first exposure to
    product

43
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

44
Distribution Channel Decisions
  • Channel decisions involve
  • Selecting
  • Managing
  • Motivating
  • Independent intermediaries
  • Wholesalers
  • Distributors
  • Brokers
  • Retailers
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