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Integrated Marketing Communication

1. Marketing Communication.
2. Types of Messages.
3. IMC
4. Benefits of IMC
5. MCM & Elements of IMC
Marketing Communication

Tom Duncan :
“Marketing Communication is a collective
term for all the various types of planned
messages used to build a brand.”
Types of Messages

A Company has to manage four types of messages :


1. Planned – External communication activities
2. Inferred – For premium products –selling product
from prestigious store
3. Maintenance – Interaction of Customer Service
Cell & Customer
4. Unplanned – News reports, Trade Publications etc.
Integrated Marketing Communication

Marketing Power Dictionary :


“ IMC can be defined as a holistic
approach to promote buying and selling in
the digital economy.”
Integrated Marketing Communication

According to American Marketing Association :


“IMC is a planning process designed to assure
that all brand contacts received by a customer
or prospect for a product, service or
organization are relevant to that person and
consistent over time.”
Integrated Marketing Communication
According to Tom Duncan :
“A Process for managing the customer
relationships that drive brand value. More
specifically, it is cross-functional process for
creating and nourishing profitable
relationships with customers and other
stakeholders by strategically controlling or
influencing all messages sent to these groups
and encouraging, data driven, purposeful
dialogue with them.”
Growing Importance & Benefits of IMC

1. Increasing Competition
2. Increased IT Sources
3. Need of Consistency
4. Decline in Effectiveness of Mass Advtg.
5. Provides greater Brand Differentiation
6. Greater Accountability & Coordination
7. Effective at Cutting through Message Clutter
8. Increases Customer’s Trust
Marketing Communication Mix

“ A Marketing Communication Mix is the


selection of Marketing Communication
functions used at a given time as part of a
marketing program.”
Tools of Marketing Communication

1. Personal Selling
2. Advertising 7. Sponsorship
3. Sales Promotion 8. Point of Purchase
4. Public Relation Display
9. Exhibition
5. Publicity
10. Packaging
6. Direct Marketing 11. Internet
12. Corporate Identity
Marketing Communication Mix
Personal selling
‘PS can be described as a two way communication
between a buyer and a seller.’
- The direct presentation of a product

- It takes place face-to-face or over the phone

- It may be directed to a business person or a final customer

- Face to face comm. Meetings, Telephone Calls, Trade


Shows, Exhibitions or Sales Force etc.
Marketing Communication Mix

Advertising

‘Non personal, paid announcements by an


identified sponsor.’

- Nonpersonal communication & paid

- Most familiar outlets are broadcast (TV, radio) and


print (newspapers, magazines) media

- However, there are many other advertising vehicles,


from billboards to T-Shirts and, more recently, the
Internet
Marketing Communication Mix
Sales Promotion
According to the International Chamber of Commerce-

‘Marketing devices and techniques which are used to make


goods and services more attractive by providing some
additional benefit, whether in cash or in kind or the
expectation of such benefit.’

- A sponsor-funded, demand-stimulating activity designed to


supplement advertising and facilitate personal selling

- Included are a wide spectrum of activities, such as event


sponsorships, contests, trade shows, in-store displays,
rebates, samples, premiums, discounts, and coupons
Marketing Communication Mix

PUBLIC RELATIONS
Acoording to Public Relation Society of America-
‘PR are communication activities that help an organization and its
public adopt mutually to each other.’

- Unlike most advertising and personal selling, it does not


include a specific sales message
- PR can take many forms, including newspapers, annual
reports, lobbying, TV talk shows and support of charitable
or civic events
Marketing Communication Mix

Publicity

- is a special form of PR that involves news stories about an


organization or its products
- Like advertising, it consists of an impersonal message that
reaches a mass audience.But: Placement is not paid for
- subject of the publicity has little or no control over it
- has greater credibility than advertising
Marketing Communication Mix

Direct Marketing

- Product available at customers’ convenience


- Directly fromManufacturer to Buyer
Marketing Communication Mix

Sponsorship
According to T. Managhan-
‘An investment in cash or kind in an activity, in return for
access to the exploitable commercial potential associated
with this activity.’
- Three types. Event related- sponsor an event .
- Cause related – Charitable activity like Polio Campaign.
- Broadcast related – a TV programme.
Marketing Communication Mix

Point of Purchase Displays

- Inferred messages.
- Used by Cosmetics and Confectionaries
- Beneficial in latest mall culture
- Not very popularly adopted by many companies
Marketing Communication Mix

Exhibitions

- Works on ‘SEEING IS BELIEVING’


- Brings together buyers, sellers and competitors
- Facilitate easy comparison
Factors Affecting the Promotion Mix
Designing an effective promotion mix involves
strategic decisions about these factors:
1. target audience,
2. objective of the promotion effort,
3. nature of the product,
4. stage in the product’s life cycle,
5. amount of money available for promotion,
6. Legal Environment,
7. Competition,
8. Consumer Buying Behavior.
1. Target Audience

- As is true for most areas of marketing, decisions on the


promotional mix will be greatly influenced by the target
audience
- A promotion aimed at middlemen is called a push
strategy, and a promotion directed at end users is called a
pull strategy
2. Promotion Objective

A promotion plan may have different promotion


objectives :

- To Introduce
- To Inform
- To Persuade
- To Remind
3. Nature of the Product

Several product attributes influence the promotion mix


such as:

- unit value,
- degree of customization, and
- presale and post sale service
4. Stage in the Product Life Cycle

According to Stages of PLC promotion plan varies :


1. Introduction – Creating awareness & Creating
demand.
2. Growth - Creating brand preference,
Differentiation from competitors,
Deep penetration in the market
3. Maturity - Retain brand image, To remind
Generally increase in budget
4. Decline - Survival of the brand, General
decrease in budget.
5. Funds Available or Budget

- Regardless of the most desirable


promotional mix, the amount of money
available for promotion is often the ultimate
determinant of the mix
- There are four common promotional budgeting methods
(frequently discussed in connection with the advertising budget,
but may be applied to any promotional activity):
- Percentage of Sales:
- Promotional budget is related to company income
- But: Following this approach, management is making
promotion a result of sales when, in fact, it is a cause of
sales
- As a result, using the percentage-of-past-sales method
reduces promotional expenditures when sales are declining,
just when promotion usually is most needed!
- All Available Funds
- Following Competition:
- A weak method, but one that is used occasionally
- There are at least two problems: A firm’s competitor may
be as just in the dark regarding how to set a promotional
budget; a company’s promotional goals may be quite
different from its competitors’
- Task or Objective:
- Best approach for establishing the promotional budget
- Determine the tasks or objectives the promotional program
must accomplish and then decide what they will cost
6. Legal Restrictions

- Promotion Mix should be in accordance of


legal restriction
- Restrict the available options
- Like in India no advertising can be done for
Liquor and Cigarettes
7. Nature of Competition

- Has profound impact on MCM decisions.


1. Monopolistic Mkts - Freedom & Leeway to design
own mix
2. Growing Mkts - A Unique MCM - offering a
benefit to different customer
3. Perfect Competition – Need to match MCM with
competitors
8. Consumer Buying Behavior

- A target audience can be in any of six stages of buying


readiness
- The stages are:
- Awareness
- Knowledge
- Liking
- Preference
- Conviction
- Purchase
- The stages are called the hierarchy of effects because
they represent stages a buyer goes through in moving
toward a purchase, with each also describing a possible
goal or effect of promotion
The Communication Process and Promotion