have a well-defined purpose and support n extend the message delivered by all the other elements. What is I.M.C. • Represents the 4th P ie Promotion • Encompasses a variety of commn disciplines- advertising, personal selling, sales promotion, direct marketing, public relations, electronic media, community building, viral, mobile, et al touch points. • A strategic optimum combination to provide clarity, consistency, max communicative impact; each a part of a whole. What is I.M.C. • This integration of elements provides the firm with the best means to reach the target audience with the desired message, and it enhances the value story by offering a clear and consistent message. • 3 elements in any IMC strategy: • The Consumer • The Channels thro which the msg is commtd • The Evaluation of the Results of the commn IMC an integral part of mktg • Functions of IMC: • To Inform; Generate Awareness • To Persuade; Induce Trial, Purchase; r/ships. • To Remind; Repurchase; Build long term R/ships with existing/potential customers. • Processes in IMC: • Planning • Executing • Controlling n Evaluation IMC Strategies • Determination of target audience • Establishment of objectives • Setting of budgets • Analysis of social, competitive, cultural n technological issues • Evaluation and feedback regarding the effectiveness of promotional strategies adopted. IMC Mix • Publicity • Personal Selling • Media Advertising • Public Relations • Sales Promotions • IMC conveys info on all elements of M.Mix: • 4 P’s + Process, People, Physical Evidence. Contemporary perspective of IMC • IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communications programs over time with consumers, customers, prospects, employees, associates and other targeted relevant external and internal audiences. The goal is to generate both short-term financial returns and build long-term brand and shareholder value. Don Schultz- North Western Univ. Reasons for growing importance of IMC • Fading age of mass marketing to the new era of micromarketing. Fragmentation of consumer market and proliferation of media. Shift from traditional media advtg to other promo forms n non-traditional media. Cost/ pdt placement in films. • Rapid growth of internet n social media. • Shift in mktplace power from manufacturers to retailers. Small to big retailers; sales promo tools to gain s/term results fast. Reasons for growth of IMC • Growth and development of database marketing: companies have extensive data: • Customer names; geographic, demographic, psychographic profiles; purchase patterns; credit and other financial info; other relevant characteristics. • Use above to target customers thro direct mktg methods- telemktg, email mktg, direct mail etc – for CRM, cust preferences, modify p/s to suit custs. Reasons for growth importance of IMC • Greater accountability for advtg agencies and changes in compensation packages: • Specialized MARCOM firms • Incentive based systems of compensation- sales, mkt share, profitability. • For building and maintaining brand identity and equity for creation of well-known brands that have favorable, strong, unique associations in the mind of consumers. Advertising and Promotion- An IMCA Shimp • Pg 25 Table 1 Tools of Marketing Comms • Pg 28 Table 1.2 Five key features of IMC • Pg 37 Table 1.3 Making brand level MARCOM decisions and achieving desired outcomes • All MARCOM should be: 1. directed to a particular market. 2. clearly positioned. 3. created to achieve a specific objective. 4. undertaken to accomplish the objective within budget constraint. A&P- An IMCA- Shimp • Pg 53- Fig2.1- A Customer-based brand equity framework • Pg 54- Fig2.2- The brand awareness pyramid • Pg 63- Fig2.8- Leveraging brand meaning from various sources. Buying decision process • Need recognition- process of a consumer: • Functional- existing solution dissatisfactory- Android phones • Recognize problem over time- large house • Routine depletion- petrol • Unpredictable problems- car breakdown • Emotional/psychological needs- status C.B. D.P. • Consumers have several needs at same time • Prioritize needs based on: • Magnitude of discrepancy- desired/present • Relative importance of the problem • Need inhibitors to overcome by consumers. • Information search- internal/external • Evaluation of alternatives- awareness set to smaller set to evolved/consideration set. Low involvement/High involvement products. C.B.D.P. • Purchase- consumers: place mode of purchase payment terms, delivery of product, install and training for usage of product. • Post- Purchase evaluation of decisions: • Cognitive dissonance • Reassure. Communication Response Hierarchy • A- Attention- powerful words, eye catching images • I-Interest- engage, spend more time on message in detail- focus on their need • D-Desire- link the benefits/features • A-Action- ensure buy- easy buy details. Setting communication objectives: DAGMAR Approach • DAGMAR means Designing Advertising Goals for Measured Advertising Results. Steps: • Determining advertising objectives: • Who is the Target market- demographics, psychographics, geographic, geodemo etc • What emphasis- features, benefits, emotions • What goals- awareness, understanding, attitudes n influence to buy, product trial, repeat buy. Determining ad objectives • Where- geographic markets to emphasize • When- months seasons best to advertise • How- to decide how often the product needs to be advertised. • Hierarchy- of- effects model in setting objctvs: • Attitudes- Attitude Reinforcement • Unawareness- Awareness- Expectations- Trial Brand Loyalty • Beliefs- Belief Reinforcement. Glycerine soap Objective setting • Implications: Making consumers aware of a new brand; influencing their expectations about a brands attributes and benefits; encouraging them to try the brand. • Good advtg objectives must specify the foll: • Must include who, what, when to accomplish • Must be quantitative and measureable • Must specify the amount if change- 60% Objective setting • Objectives must be internally consistent- compatible with other components of marketing communication mix. Sales increase • Must be clear and in writing- disseminated and responsibility. • Direct objectives used to initiate certain behaviors or actions like: • Advertising by retailers; Direct response advtg; Sales promotion advtg; BtoB advtg. Objective setting • Indirect objectives: • Corporate advertising at national level- image brand building • Traditional view on using sales volume as an advtg objective • Heretical view • DAGMAR: • Awareness; Comprehension; Conviction; Action Brand Positioning thru Advertising • In today’s times of product parity, it is the image of the brand that sells. • Positioning is what a product does for the target market. • Advertising conveys and reinforces the positioning and creates an image of the brand over a long period of time. • Despite change in chief/agency Identifying and Understanding the Target Audience • T.A.- refers to a group at which the advertising is targeted/aimed; surety to buy the product. • Consumer target market- socio-economic group, age, gender, buying frequency, lifestyle. • Business target market- type of industry, order size, product specs, buyer-seller r/ship. • Research target audience- their choice, select- ion, why buy criteria shaped by external and psychological factors.(age/perceptions). Identifying and understanding the target audience • Advertising in business markets has different criteria. • Purchase Manager- Cost; Engineer- technical. • Ads with different appeals/media to influence. Campaign Planning Process • Define the advertising objectives: • Direct-action advertising- induce buy now • Indirect-action advtg- stimulate Dd for later • Ad objective- buy brand whenever needed. • Position the Offering: • Ads position products in consumer’s mind by: • Product characteristics/customer benefits- cavity/fresh breath • Price-quality- Superior qlty at premium Campaign Planning Process • Product use- toothpaste-Colgate • Product user- brand ambassador • Product class- 7 UP • Symbols using competition as reference- Thumbs Up • Using competitor image as reference point while focusing on its own brand image – i10 Campaign Planning Process • Create Awareness: • Preconditioning customers to buy and know the company, products, personnel. • Advertising Stimulates Trial: • New product/Brand introduction- increases diffusion rate among target consumers • Try pdt, experience qlty, build confidence for pdt. Various promotional campaigns also do the same. Campaign Planning Process • Remind, reiterate, reinforce, recall: • Based on PLC; ad objectives: • Consolidate mkt share/profits • Ensure high sales • Creating barriers for entry of competitor’s brand. • Ensure support to sales force: • Cold calling; tough nut to crack. Campaign planning process • Correct misconceptions: • Tarnished reputations of brands/cos due to – ve publicity, advtg helps resuscitate image. • Establish the ad spends: • Ad spend is part of total comm spend of co. • %age of sales method: • Demerits: % may decrease with less sales and impact brand adversely. Campaign Planning Process • Not in sync with overall market opportunities and communication objectives. • Affordability Method: • Based on company’s present status and affordability. Demerits: • Unscientific; ignores comm objectives and available market opportunity to ensure sales and growth of brand. Media Decisions • Choice of media class – include outdoor, tv, radio, mobile, internet etc • Different media vehicles- include program, magazine, journal, newspaper etc Evaluation of advertising effectiveness • Measure ad effectiveness by seeking foll ans: • What should be evaluated? • When should it be evaluated? • How should it be evaluated? Ad Effectiveness- What to measure • Market Research or Advertising Research done to know if advertising objectives are met, like: • Brand awareness creation • Positioning a brand • Inducing trial for a brand by target customers • Support to sales team; generate sales. • Remove misconceptions of brand- competitrs • Trade/dealer - improvement of stock levels etc • Pre- Testing; Post- Testing. When and How to Measure • Can measure effectiveness, Before/During/ After a given promotional campaign. • Pre-Testing- kind of response that can be expected from target to ad campaign. Eg • Pre-testing TV commercials: checks how it communicates the brand attitudes, copy comprehension, interest created in brand. • Folder techniques used for above. Post-testing research • How target reacted to ad/promotional campaign; to plan future ad/promo campains. • If sales increased. • Altered usage patterns, extent of usage • Recall status- long term- media decisions- check with Q&A, coupons etc • Advertising is where creativity and commerce meet. Both important aspects. Improve advtg results • By understand customer mindset; how he decides to see/buy; know the triggers. • Advertiser: expose customer to the commn; understand commn correctly; store in memory and make buy decision. • Customer: selective exposure, perception, retention, decision. • Advertiser: influencers/mediators, strong/weak attitudes, behaviors, reasons. Organize campaign development • 4 options for advertiser to evaluate/choose: • Tie-up with different agencies • Have own advertising dept with all functions • Involve a reputed ad agency with specialized professional skills • Mix of in-house and specialized outside agencies. • TYPES OF MEDIA- STRENGTHS/WEAKNESS Media Planning, Selection/Scheduling • Media planning means optimal usage of ad space and time. Coordination of marketing strategy, advtg strategy, media strategy. • 4 elements for developing media strategy: • Selection of target customers • Defining the media objectives • Selection of media vehicles and categories • Negotiating and buying the chosen media Changing face of advertising • The spin, the story, the message, the call to action, the image, the placement, the measurement, the refinement: • It all adds up to a powerful cocktail that can ultimately change the world. Module 3 05 April 2016 • Belch n Belch Chapter 3 • The role of Ad Agencies n other Marketing Communication Agencies. • Nike v/s Under Armour • Phil Knight, Beaverton, Oregon- Global sales $20 billion- “Swoosh- Just Do It”. v/s Founded 1996 Kevin Plank- Sales $725 million in 2009- “We must protect this House”. Participants in the IMC process- pg 85 • Advertiser (client) • Advertising Agency • Media Organizations • Marketing Communication Specialist Orgns: • Direct Marketing agencies • Sales promotion agencies • Interactive agencies • Public Relations firms • Collateral services- support functions to above Participants in IMC process • Clients: the key in the process; provide funds to advertise/promote products, services, causes; final decision maker; use its advtg dept, set up in- house agency/ outside agency. • Advertising Agency: outside firm specializes in the creation, production, and/or placement of communications message to facilitate IMC process; large advertisers use many agencies for various brands, specialized media agencies, regional agencies for ads for specific ethnic markets. Participants in IMC process • Media Organizations: • Media’s primary function- information, entert- ainment to subscribers, viewers, readers. • Have editorial and program content to attract consumers to buy and view/read. • So advertisers/agencies buy time/space to communicate messages to target customers in cost effective manner. Participants… • Specialized Marketing Communication Svcs: • Area of expertise services • Direct Marketing Agencies, Sales Promotion Agencies, Interactive Agencies, P.R.firms. • Interactive agencies- develop and maintain websites. • P.R.firms- generate and manage publicity of company, product, service; focus on relation- ships and communication with relevant publics. The Client’s Role- Organizing IMC • Every organization (client) uses some form of marketing communications. • Depends on several factors: • Size of the organization • The number of products it markets • Importance of IMC in its M.Mix • Advertising and Promotion Budget • Its marketing organization structure The Client’s Role- Centralized • Marketing personnel directly involved in advertising decisions: • Inputs to campaign plans • Agency selection • Evaluation of proposed programs. • Responsibility rests with Ad/Comm Manager • All elements of IMC must communicate uniform, clear, positive campaign messages. The Client’s Role- Centralized • The Centralized System: • Marketing divided on functional lines: • Marketing Research; Advertising; Sales; Product Planning. • Head: Advertising Manager/ Marketing Com- munications Manager. Functions include: • Planning and Budgeting- based on Mkt Plan • Administration and Execution The Client’s Role- Centralized • Coordination with other departments: • Coordination with outside agencies and services like: • Media buying services; brochure; pop mats et • Used by companies with limited product/svc lines, ltd divisions and brands. • Helps coordinating ad program from central point , engages top mgmt expertise • Process easier, expertise, experienced decision making. The Client’s Role- Decentralized