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4 P's vs. 4 C's
Not PRODUCT, but CONSUMER
You have to understand what the consumers' wants and needs are. Times have changed and you can no longer sell whatever you can make. The product characteristics have to match the specifics of what someone wants to buy. And part of what the consumer is buying is the personal "buying experience."
Not PRICE, but COST Understand the consumer's cost to satisfy the want or need. The product
price may be only one part of the consumer's cost structure. Often it is the cost of time to drive somewhere, the cost of conscience of what you buy, the cost of guilt for not treating the family members, the investment a consumer is willing to make to avoid risk, etc.
Not PLACE, but CONVENIENCE Think convenience of the buying experience and then relate that to a delivery mechanism. Consider all possible definitions of "convenience" as it relates to satisfying the consumer's wants and needs. Convenience may include aspects of the physical or virtual location, access ease,
transaction service time, and hours of availability.
Not PROMOTION, but COMMUNICATION Communicate through different media working together to present a unified message making the feedback or communication two-way. Be sure to include an understanding of non-traditional mediums, such as word of mouth and how it can influence your position in the consumer's mind. How many ways can a customer hear (or see) the same message through the course of the day, each message reinforcing the earlier images?
Marketing Communication It is a means to; • • Inform Persuade and
the customers, directly or indirectly, about the product / service offered by a firm for profitable relationship It represents the voice of the firm to inform customers;
Who makes a product
What the firm / brand stand for Incentive or rewards the customers get
Changing environment Earlier; • • • • Print media, basically for urban literate Radio Wall paintings Leaflets
Now; • • • •
Local activities and events – melas, hats, exhibitions, etc
TV (more than 100 channels with regional languages programmes Print media for all PCs and Cellphones SMSs and telemarketing
Communication Mix • • • • • • • Advertising – any paid form of non-personal presentation / promotion by an identified sponsor Sales Promotion – short term incentives for inducing trial or purchase Events & Experiences – sports, entertainments, festivals, tours or group gathering for celebrations PR & Publicity – seminars, annual reports, press conferences, community relations, company magazines Direct Marketing – use of mail, phone, fax, email, internet, for soliciting, catalogues, TV shopping Interactive Marketing – online activities / programme, Websites, Voice mail, telemarketing Word of Mouth
What is IMC It is the coordination and integration of all marketing communication tools, avenues, functions and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost. This integration affects all firms’ business-to-business, marketing channel, customer-focused and internally directed communications. This management concept is designed to make all aspects of marketing
communication such as advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation.
It is a process for managing customer relationships that drive brand value
primarily through communication efforts. Such efforts often include crossfunctional processes that create and nourish profitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging data-driven, purposeful dialog with them.
1. It can create competitive advantage, boost sales and profits, while saving money, time and stress. 2. IMC wraps communications around customers and helps them move through the various stages of the buying process. The organisation simultaneously consolidates its image, develops a dialogue and nurtures its relationship with customers.
3. This 'Relationship Marketing' cements a bond of loyalty with customers which can protect them from the inevitable onslaught of competition. The ability to keep a customer for life is a powerful competitive advantage. 4. 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 and thus increasing profits for the company 5. Finally, IMC saves money as it eliminates duplication in areas such as graphics and photography since they can be shared and used in say, advertising, exhibitions and sales literature.
Reasons For Growing Importance of IMC •Shift from media advertising to other forms of marketing communication
•Movement away from advertising focused- approaches that emphasize mass media
•Shift in power from manufacturers to retailers •Rapid growth of database marketing •Demands for greater ad agency accountability •Rapid growth of the Internet •Increasing importance of branding
Role & Importance of IMC – changing face of today’s marketing communications • Mass markets have fragmented
Marketers are therefore shifting from mass marketing
Thereby need to develop focused marketing programmes to build relationship with customers
Vast changes in technology – helping in speeding towards segmented marketing • IT helps keep close track of customer needs – more informations about customers at all levels (at individual, family and other circles) New technology provides new avenues for communications
Though mass media like TV, magazines and others play an important role dominance is declining The focus is on targetted markets/ customers with speciality magazines, cable network, websites, airport kiosks etc.
The other factors being; •Shift in power from manufacturers to retailers •Rapid growth of database marketing
•Demands for greater ad agency accountability
•Rapid growth of the Internet •Increasing importance of branding
Need for IMC • • Required due to shift from mass marketing to target marketing Promotional & advertising approaches need to be co-ordinated • • Mass media sends one signal while price promotions or labels send different massage
In large organisations different approaches may be taken by advertising, sales, promotions, PR. And other departments including the persons involved in web designing
The companies therefore need to ensure that ADVERTISING PERSONAL SELLING – PR – DIRECT MARKETING – SALES PROMOTIONS have two way communications so that the message is coordinated to ensure a BETTER, CONSISTANT & EFFECTIVE communication
Process of Communication
Communications need to be developed for specific segments
The approach from HOW TO REACH CUSTOMERS to HOW WE CAN FIND WAYS TO LET CUSTOMERS REACH US The process of communication is;
• • • • • •
ENCODING MESSAGE MEDIA DECODING RECEIVER RESPONSE
NOISE – distortion or obstructions, conflicting messages etc
Developing effective Communication Following steps are taken for developing effective communications; • • Identifying Target audience Determining communication objectives
Designing a message
• • Content Structure Personal communications media – WOM Non-personal communication channels - media
Choosing media • •
Selecting the source – including a celebrity
Deciding Mix • • • • Advertising Personal selling – specifically for building buyers preferences, convictions and actions Sales promotions – coupons contests, special discounts etc Public Relations