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MODULE 1 INTEGRATED MARKETING COMMUNICATIONS

Presented by; CHETHAN GOWDA B.J CIDHOOJOYCEE K.P YOGANANDA Y.N

CHAPTER OBJECTIVES

To review the various elements of the promotional mix: advertising, sales promotion, public relations, direct marketing, Internet marketing, and personal selling. To introduce the concept of integrated marketing communications (IMC) by considering its evolution, growth, importance, and a broader view. To examine how various marketing and promotional elements must be coordinated to communicate effectively with the IMC perspective. To summarize a model of the IMC planning process and examine the CHATHAN,CIDHOO,YOGA steps in developing a marketing communications program.
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WHAT IS IMC?

Co-ordinating the various promotional elements to effectively communicate with target audiences

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DEFINITION OF INTEGRATED MARKETING COMMUNICATIONS

concept of marketing communications planning that recognizes the

added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines and combines these disciplines to provide clarity, consistency and maximum

communications impact.

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Defining IMC

IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences. The goal of IMC is to generate short-term financial returns and build long-term brand value.
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INTEGRATED MARKETING COMMUNICATIONS


A marketing communications planning concept that recognizes the value of a comprehensive plan. A plan that evaluates the strategic roles of several communications disciplines:

Media advertising Direct marketing

Interactive/internet marketing
Sales promotion Publicity/Public relations
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INTEGRATED MARKETING APPROACH

Traditional mass media


Television, radio, magazines, newspapers, billboards Now drive consumers to Web sites

Online strategies

Provide detailed information Be experiential, entertaining, interactive MySpace, YouTube, Facebook, wireless mobile media devices, e-mail
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Increasingly difficult to target audiences & communicate effectively


Consumers
They

RAPIDLY CHANGING MEDIA ENVIRONMENT

no longer passive recipients

demand more than information

From

a myriad of sources

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ITS GOOGLES WORLD

Founded in 1998

Delivers relevant search results by favoring pages linked to by other sites


Sells ads linked to search keywords Annual revenue exceeds $10 billion

Keys to success

Simplicity Speed Accuracy


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GOOGLE RAPIDLY EXPANDING

Beyond online search advertising


Automated purchase of radio ads Magazine and newspaper ad-buying YouTube Google TV Ads Partnership with Nielsen Media Research New varieties of online ads

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WHAT IS MARKETING?

An organizational function Processes for creating, communicating, and delivering value to customers Managing customer relationships in ways that benefit the organization and its stakeholders
Value

Relationship marketing

Mass customization

Customer relationship management (CRM)

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BASIC ELEMENTS OF A MARKETING PLAN


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


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PROMOTION

Coordination of

all seller-initiated efforts to set up channels of information and persuasion to sell goods and services or to promote an idea.

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BASIC ELEMENTS OF THE PROMOTIONAL MIX


Advertising Advertising Direct Marketing Marketing Direct Interactive/ Interactive/ Internet Marketing Internet Marketing

Sales Promotion Promotion Sales


Publicity/Public Publicity/Public Relations Relations Personal Selling
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BASIC ELEMENTS OF THE PROMOTIONAL MIX


Advertising

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ADVERTISING

Non-personal communication
Highly

pervasive form of promotion best known, most widely

discussed.
Used

to create brand images and symbolic appeals for a company

or brand.
Ability

to strike a responsive chord with consumers.

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CLASSIFICATIONS OF ADVERTISING
National Advertising National Advertising Retail/Local Advertising Retail/Local Advertising Primaryvs. vs. Selective Primary Selective Demand Advertising Demand Advertising

Consumers

Business-to-Business Advertising Business-to-Business Advertising Professional Advertising Professional Advertising

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Trade Advertising

Organizations

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GROWTH OF ADVERTISING AND PROMOTION


Expenditure in Billions of Dollars

Advertising Outside U.S. 2007 1980 U.S. Advertising

$0

$50

$100

$150

$200

$250

$300

$350

$400

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BASIC ELEMENTS OF THE PROMOTIONAL MIX


Advertising Advertising Direct Marketing

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DIRECT MARKETING

Communication directly with target consumers to generate a response or transaction.

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DIRECT MARKETING IS PART OF IMC


Direct Direct Mail Mail

Internet Sales

Direct Direct Response Response Advertising Advertising

Direct Marketing
Shopping Shopping Channels Channels Catalogs Cataloging
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Telemarketing Telemarketing

BOSE USES DIRECT RESPONSE ADVERTISING

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BASIC ELEMENTS OF THE PROMOTIONAL MIX


Advertising Advertising Direct Marketing Marketing Direct Interactive/ Internet Marketing

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Internet Marketing

Interactive media allow two-way communication. Users can participate in and modify the form and content of information they receive.

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USING THE INTERNET AS AN IMC TOOL


The Internet

Educates or Educates or Informs Informs Customers Customers

Persuasive AA Persuasive Advertising Advertising Medium Medium

A Tool or A Sales Sales Tool an Sales or Actual an Actual Vehicle Sales Vehicle

Obtains Obtains Customer Customer Database Database Information Information

Communicates Communicates and Interacts With and Interacts Buyers With Buyers

Provides Provides Customer Customer Service and Service and Support Support
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Builds and Maintains Customer Relationships

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AMERICAN AIRLINES ENCOURAGES CUSTOMERS TO DO IT ALL ONLINE

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THE PROMOTIONAL MIX OR IMC COMMUNICATION TOOLS


Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion

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SALES PROMOTION

Activities providing extra value or incentive to sales force or consumer.

Activities can be consumer-oriented or trade-oriented.

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Sales Promotion Tools


Coupons Samples Premiums
Contests/Sweepstakes

Trade Allowances POP Displays

Refunds/Rebates Bonus Packs

Training Programs
Trade Shows Coop Advertising

Loyalty Programs
Events

Consumer-oriented
For end-users
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Trade-oriented
For resellers
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VARIOUS USES OF SALES PROMOTION


Introduce New Products Get Existing Customers to Buy More

Combat Competition

Enhance Personal Selling

Sales Promotion

Attract New Customers

Maintain Sales In Off Season

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Tie In Advertising & Personal Selling

Increase Retail Inventories


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BASIC ELEMENTS OF THE PROMOTIONAL MIX


Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion

Publicity/Public Relations
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PUBLIC RELATIONS

Evaluating public attitudes, identifying policies and procedures of individuals or organizations, and executing a program of action to gain public understanding and acceptance.

Systematically planning and distributing information in an attempt to control and manage image and the nature of the publicity received

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PUBLICITY

Non-personal communications regarding an organization, product, service, or idea.

Idea reaches public in a form not directly paid for by the company. More credible to consumers than other forms of promotion.

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POSITIONING STRATEGIES
How should we position?
By andand Benefits? By Attributes Attributes Benefits?

By oror Quality? By Price Price Quality?


By or Application? By Use Use or Application?

By Class? By Product Product Class?


By User? By Product Product User? By By Competitor? Competitor?
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By Cultural Symbols?

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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

BASES FOR SEGMENTATION


Psychographic Demographic

Customer Characteristics
Socioeconomic Geographic

Behavior

Outlets

Buying Situation
Usage Benefits 35

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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

DEVELOPING A POSITIONING STRATEGY


What Position Do Do We What Position Have Now?Now? We Have Does Our Creative Strategy Match It? What Position What Position Do Do We We Want To Want To Own? Own?

The Position
Do Have thethe Do We We Have Tenacity To Stay Tenacity To Stay With WithIt? It? Do Have thethe Do We We Have Money To Do the Money To Do the Job? Job? From Must FromWhom Whom We Win This Must We Win Position? This Position?

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Positioning Decisions
Is the Current Is the Current Position Position Strategy Strategy Working? Working? Is the Segmentation Is the Segmentation Strategy Strategy Appropriate? Appropriate?

The Checklist

How Strong Is the Competition?


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Are Sufficient AreThere There Sufficient Resources To To Resources Communicate the the Communicate Position? Position?
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PUBLICITY VEHICLES
Feature Feature Articles Articles

News News Releases Releases

Publicity Vehicles

Interviews Interviews

Press Conferences
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Special Special Events Events


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ADVERTISING VERSUS PUBLICITY


Factor Control Credibility Reach Advertising Great Lower Measurable Schedulable Publicity Little Higher Undetermined

Frequency
Cost Flexibility
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Uncontrollable
Low/Unspecified

High/Specific
High Specifiable

Low Tentative
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Timing

PUBLIC RELATIONS TOOLS


Publicity Vehicles Special Publications

Community Activities

Corporate Advertising

Cause-related Marketing

Public Affairs Activities


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Special Event Sponsorship


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DUPONT USES PUBLIC RELATIONS TO ENHANCE ITS CORPORATE IMAGE

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BASIC ELEMENTS OF THE PROMOTIONAL MIX


Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion

Publicity/Public Relations
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Personal Selling
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PERSONAL SELLING

Person-to-person communication. Seller encourages prospective buyers to purchase companys product/service or to act on an idea.

Direct contact between buyer and seller gives communication


flexibility to marketer.

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PARTICIPANTS IN THE PROMOTIONAL PROCESS

Figure 1-3

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INTEGRATED MARKETING COMMUNICATIONS

IMC coordinates various promotional elements and marketing activities which communicate with a firms customers to provide clarity, consistency, and maximum communications impact.

Evolved as companies realized the need for strategic integration of promotional tools.

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TRADITIONAL APPROACH TO MARKETING COMMUNICATIONS


Sales Promotion

Point of Purchase

Publicity

Special Events

Media Advertising

Packaging

Direct Response

Public Relations Direct Marketing

Interactive Marketing
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CONTEMPORARY IMC APPROACH


Packaging Sales Promotion Direct Response

Point of Purchase

Publicity

Media Advertising

Public Relations

Interactive Marketing

Direct Marketing

Special Events
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REASONS FOR THE GROWTH OF IMC


Planning Efficiency and Effectiveness

Consumer Adoption of Technology and Media


Innovative Marketing Practices

Shifting of marketing dollars


Movement from advertising focus

Growth of the Internet


Growth of database marketing Shift in power

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IMPORTANCE OF IMC

Consumers Point of View

Relationship Marketing

IMC helps link elements of promotional campaign to clearly and accurately represent the brand.

Allows marketers to create, maintain, or enhance long-term relationships with customers or stakeholders.
More cost-effective to retain customers than acquire new ones.
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DELL FOCUSES ON BUILDING A RELATIONSHIP WITH CUSTOMERS

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A BROADER VIEW OF IMC

IMC can be expanded to consider all sources of brand or company contact by customer.

A total marketing communications strategy recognizes how ALL marketing activities communicate with customers.

Everything the company says and does needs to communicate a common theme.
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IMC AND BRANDING


Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumers mind. IMC plays a major role in the process of developing and sustaining brand identity and equity.
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2003 Brand Value


(Billions of Dollars)

1. Coca-Cola 2. Microsoft 3. IBM 4. GE 5. Intel 6. Nokia 7. Disney 8. McDonalds 9. Marlboro 10. Mercedes
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$70.5 $65.1 $51.8 $42.3 $31.1 $29.4 $28.0 $24.7 $22.2 $21.4

COMMUNICATION ROLE OF PRODUCT DECISIONS

Product planning involves portraying the product as a bundle of benefits for consumers.

Product Symbolism

What a product or brand means to consumers. What consumers experience by purchasing or using the product.

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PRODUCT SYMBOLISM

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BRAND EQUITY
Added

value resulting from products image, customer attachment to product, and impressions of product differentiation.

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PACKAGING IS MORE THAN A CONTAINER

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COMMUNICATION ROLE OF PRICE DECISIONS

Economic cost to consumers for all product benefits combined. Advertising and promotion reinforce consumers belief that products benefits or qualities accurately indicates the price decisions.
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COMMUNICATION ROLE OF DISTRIBUTION DECISIONS


Marketing Channels

Interdependent organizations involved in making product or service available.

Distribution strategy should take into account the communication


objectives has an impact on IMC program.

What messages are conveyed by selling a product at Holt Renfrew instead of Wal-Mart?

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PROMOTIONAL MANAGEMENT

Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.

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REVIEW THE IMC PLAN


1. A situation analysis 1. Adetailed detailed situation analysis

2. Specific marketing objectives 2. Specific marketing objectives

3. strategy and program 3.A Amarketing marketing strategy and program

4. for implementing the strategy 4.A Aprogram program for implementing the strategy

5. A process for monitoring and evaluating performance


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MARKETING AND PROMOTIONS PROCESS MODEL


Opportunity Analysis Identifying Markets Product Decisions Promotional Decisions Competitive Analysis Pricing Decisions Advertising Direct Marketing Interactive Marketing Sales Promotion Publicity and Public Relations Personal Selling Positioning Through Marketing Strategies CHATHAN,CIDHOO,YOGA Promotion To Trade Ultimate Consumer Consumers Businesses Promotion to Final Buyer

Market Segmentation

Target Marketing Selecting a Target Market

Distribution Decisions

Resellers

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IMC Planning Model


Review of Marketing Plan Promotional Program Situation Analysis Analysis of the Communications Process Budget Determination Develop Integrated Marketing Communications Programs Sales Promotion Sales Promotion Objectives Sales Promotion Strategy PR/ Publicity PR/ Publicity Objectives PR/ Publicity Strategy Personal Selling Personal Selling Objectives Personal Selling Strategy Direct Marketing Direct Marketing Objectives Direct Marketing Strategy Internet/ Interactive Internet/ Interactive Objectives Internet/ Interactive Strategy

Advertising
Advertising Objectives Message Strategy

Integration & Implementation of Marketing Communications Strategies


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62 Monitor, Evaluate & Control Promotional Program