Integrated Marketing Communication Class.pptx

INTEGRATED MARKETING COMMUNICATIONS

TRADITIONAL MARKETING COMMUNICATIONS

Point of purchase

Publicity

Sales promotion Packaging

Special events

Media Advertising Direct response

Public relations Direct marketing

Interactive marketing

INTEGRATED MARKETING COMMUNICATIONS Packaging

Sales promotion

Point of purchase

Media Advertising Publicity

Interactive marketing

Direct marketing

Direct response

Public relations

Special events

IMC: careful mixing of all marketing communication tools (Promotion-mix), Approaches, & Resources within a company to provide a clear and distinct, coordinated message to target audience.

INTEGRATED MARKETING COMMUNICATIONS WHY IMC? • • • • •

Market: Cluttered More competition: Demanding Buyers Media Fragmentation: Many TV Channels and even more newspapers and weekly news magazines Lifestyle change: Malls and Cafes Technology – Email, internet, mobile, SMS - easy access to information for customer

and… • •

Shrinking budgets and demand for accountability Acceptance by marketing managers that specialization is important

INTEGRATED MARKETING COMMUNICATIONS IMC: Mix and Matching of Promotional-mix The promotional-mix include; • Public Relations & Publicity (Annual reports, Press releases, Lobbying, Donations etc.)

• Word-of-Mouth • Point-of-Purchase (Displays & Packaging) • Advertising (Print, Television, Radio, Billboards, Cinemas, Packaging etc.) • Direct Marketing (Mail order, Telemarketing, SMS, E-mails, Blogs, Flyers, Catalogs etc.) • Online & Interactive (Websites, Blogging, Podcasts, Mobile, email, Social NW) • Sales promotions (Coupons, Contest, Financing, Gifts, Sampling, Demos, Rebates etc.) • Sponsorships • Events & Experiences (Sports, Festivals, Melas, Arts, Street dramas, Causes, Factory visits etc.) • Product placements (TV & Movies) • Personnel selling

INTEGRATED MARKETING COMMUNICATIONS 1.

ADVERTISING – Strategic and long term, most economical form of consumer contact, transforms products into brands. Persuasive, expressive public presentation hence perceived as legitimate but impersonal .

2.

SALES PROMOTION – Short term, tactical. Creates quick response but not effective in building long-run brand preference

3.

PUBLIC RELATIONS & PUBLICITY – High credibility, dramatization, catch buyers off guard

4.

PERSONAL SELLING – Useful in later stages but long-term cost commitment

5.

DIRECT MARKETING – Customized, interactive, secrecy

6.

MERCHANDISING or Point of Purchase activity for traffic building in outlets especially self-service outlets

INTEGRATED MARKETING COMMUNICATIONS

7.

EVENT SPONSORSHIP – should be relevant target audience, involving

8.

PRODUCT DESIGN – and packaging and brand name acts as silent salesmen

9.

ONLINE ADVERTISING – internet users (rising segment), but interactive

10. WORD OF MOUTH recommendations – need to be stimulated through proper identification of Opinion leaders/Experts

INTEGRATED MARKETING COMMUNICATIONS EFFECTIVE IMC PLANNING: is understanding the strengths & weaknesses of each of the promotional mix elements – understanding what each can and can’t do on their own and how they can provide synergies when combined.

INTEGRATED MARKETING COMMUNICATIONS Assessment of Strengths & Weaknesses of Promotion-mix Promo-mix

Description

Strengths

Weaknesses

Advertising

Non-personal, paid print (Newspapers, Magazines) and broadcast (TV, Cinema, Radio, Outdoor) media communications.

Control over message content, when & where it appears, who is likely to view. Influences consumer perceptions, reminds, persuades, informs and creates brand equity.

Non-personal, Expensive to produce & distribute. Clutter so message may be missed or ignored, Not necessarily lead to sales.

Sales Promotion

Short-term incentives to encourage purchase (discounts, free offers, bundling, sampling, coupons, loyalty programs).

Incentives can be paid to consumers and channel intermediaries to support sales. Creates excitement and encourage immediate purchase.

Trade off between shortterm sales and long-term brand loyalty building. Clutter may make it hard to reach audiences.

Personal selling

Face to face communications.

Direct contact helps to meet consumer needs and modify the offer accordingly. Gains immediate feedback on the offer.

High cost, Difficult to ensure consistency in message, Credibility issue- might require a great deal of relationship building over a long term.

INTEGRATED MARKETING COMMUNICATIONS Assessment of Strengths & Weaknesses of Promotion-mix Promo-mix

Description

Strengths

Weaknesses

Public Relations (PR)

Usually directed at corporate public (Financial, Government, Suppliers, Channel and General community). Not to individual customers. Aims at long-term goodwill.

Can creates and maintain customer loyalty, builds pre-launch excitement, low cost, potentially large impact and credibility in the target market. Avoids advertising clutter.

Difficult for customers to connect the product with the PR and may not result in sales. Difficult to measure effectiveness and message may be inconsistent with other communication tools.

Publicity

Non-paid, Editorial and mainstream media content- news, stories, press release or press conference provided to television, radio or newspapers.

Low or no cost, highly credible, also offers w-o-m communication potential.

Lack of control over message content, where or when it is released and who receives it.

INTEGRATED MARKETING COMMUNICATIONS Assessment of Strengths & Weaknesses of Promotion-mix Promo-mix

Description

Strengths

Weaknesses

Online & Interactive

Customized and direct communication using technology such as internet, email, mobile to deliver the message and encourage a response.

Responses are immediate and measurable, easily accessible, can be used to inform, remind, persuade and get attention. Particularly useful in B2B.

Clutter in internet, connection problem, Spam issues, customers can be suspicious of purchasing on the internet due to privacy concern.

Direct Marketing

Customized communication directly to customers to get a response (Direct mail, telemarketing, Internet). Can be combined well with other promotion mix to good effect. Basically, data base marketing activities.

Direct contact with large base of targeted customers, limited waste coverage, data mining capabilities, low cost and increased frequency to reach out.

Junk mail, can be a negative image, maintaining accurate up to date database can be costly, content and mood creation can be difficult, printing and postage cost can be high.

INTEGRATED MARKETING COMMUNICATIONS Assessment of Strengths & Weaknesses of Promotion-mix Promo-mix

Description

Strengths

Weaknesses

Events & Sponsorships

Supporting sporting, cultural or social events, causes or charities. Direct sponsorship can provide naming rights with logo and brand display

Can be highly targeted (sports or rock concerts) or mainstream targeted (around the stadium or jerseys). Can be used to support relationship marketing.

Product placements

Accounts for a small portion of ad spend normally around TV shows and content sponsorships.

Exposure can be high and High cost, no guarantee the frequency can be high target market will notice the (video/DVD sales). Cost can brand, limited appeal. be low, acceptance is high. Less clutter.

Cinema

Advertisements prior to shows, in lobbies, signage, on food & drink packaging.

High exposure, consumer reaction to film can influence product perception, ad recall is good, less clutter, well segmented audience.

Can be costly.

High cost of production and distribution, irritation due to interruption.

INTEGRATED MARKETING COMMUNICATIONS Assessment of Strengths & Weaknesses of Promotion-mix Promo-mix

Description

Strengths

Weaknesses

POP & Packaging

In-store media- ads, aisle displays, brochures, signage, flyers, carts, in store TV and product packaging.

High attention and influence, affects impulse buying, modify buying behavior, reaches where and when purchase decision is made, POP displays can encourage retailers to stock products prominently.

No real downside, although excessive displays can become costly and customers may tend to ignore the signage unless it is specifically relevant.

Word-ofMouth

Customers often seek advice from peer network or opinion leaders (trend setters, loyal customers) regarding products or brands.

High consumer attention and influence on the purchase decision, can generate buzz and excitement around campaigns and products with consumers themselves spreading the message.

Difficult to identify opinion leaders and target messages specifically to them. Difficult to generate and control. Can be equally negative and positive.

INTEGRATED MARKETING COMMUNICATIONS Medium

Advantages

Newspapers

Limitations

Flexibility; timeliness; good local market coverage; Short life; poor reproduction quality; small broad acceptance; high believability “pass-along” audience.

Television expo-

Combines sight, sound, and motion; appealing to the senses; high attention; high reach

High absolute cost; high clutter; fleeting

sure; less audience selectivity

Direct Mail

Audience selectivity; flexibility; no ad competition within the same medium; personalization

Relatively high cost; “junk mail” image

Radio

Mass use; high geographic and demographic seleAudio presentation only; lower attention than ctivity; low cost television; nonstandardized rate structures; fleeting exposure

Magazines

High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along readership

Long ad purchase lead time; some waste circulation; no guarantee of position

Outdoor

Flexibility; high repeat exposure; low cost; low competition

Limited audience selectivity; creative limitations

Yellow pages

Excellent local coverage; high believability; wide reach; low cost

High competition; long and purchase lead time; create limitations

Newsletters

Very high selectivity; full control; interactive opportunities; relative low costs

Costs could run away

Brochures

Flexibility; full control; can dramatize messages

Overproduction could lead to runaway costs

Telephone

Many users; opportunity to give a personal touch used High selectivity; interactive possibilities; relatively low cost

Relative high cost unless volunteers are

Internet

Relatively new media with a low number of 14 users in some countries

INTEGRATED MARKETING COMMUNICATIONS IMC can help us deliver • Different media for same message: Coke • Consistency over time: Lux, Liril • Different message over different audience: Fair & Lovely- Women Vs Men, Bikes- Urban Vs Rural • Same message in different languages to make it relevant: Horlicks

INTEGRATED MARKETING COMMUNICATIONS DETERMINING THE IMC MIX

IMC decisions are concerned with the Planning, Implementation and Control of persuasive, integrated communications with target customers to ensure that the right customers receive the right message at the right times and in locations where they are receptive to those messages. Therefore, a number of factors affect IMC decisions;

INTEGRATED MARKETING COMMUNICATIONS DETERMINING THE IMC MIX

PRODUCT FACTORS

MARKETING-MIX FACTORS

BUDGET-FACTORS

DEMAND & SUPPLY FACTORS

CUSTOMER FACTORS

INTEGRATED MARKETING COMMUNICATIONS DETERMINING THE IMC MIX PRODUCT FACTORS Type of product, its uses, and how, where and when it is bought and consumed. eg. Low-involvement, non-durable, fast moving consumer goods that may be habitually purchased (Mass communication; Advertising, POP, Packaging display) eg. B2B products (Personal selling, internet selling, database marketing)

DEMAND & SUPPLY FACTORS No. of players in the industry, how strong the competitors are, direct & indirect substitutes available (many or few) and stage of the PLC. eg. Introductory stage requires high promotion to inform, persuade and induce product trial Maturity stage periodic promotion, updated POP, packaging and loyalty programs. eg. Where demand is elastic: Luxury goods & vacations – higher prices may require more promotions to offset the lowered demand. eg. Where demand is inelastic: milk, electricity, water and gas – there is reduced need to develop ads.

INTEGRATED MARKETING COMMUNICATIONS DETERMINING THE IMC MIX CUSTOMER FACTORS Consumers are influenced by cultural, social, personal & psychological factors Consumers play roles in buying decisions (Initiator, influencer, decider, buyer and user) Differences in buyer behavior between business markets & consumer markets eg. Consumer markets (Advertising, POP, Cinema, Outdoor, Sales promotion, publicity) eg. Business Markets (Personal selling, Personal selling, direct marketing, data base marketing, PR, events & sponsorships and WOM)

BUDGET FACTORS Top down or bottom up method Task method Percentage of sales method Competitive method

INTEGRATED MARKETING COMMUNICATIONS DETERMINING THE IMC MIX MARKETING MIX FACTORS Product price, Product Quality, Product Place Pricing strategy Intensive/Selective Distribution, Wide/Limited Promotion Sales through: Pull v/s push Channel intermediaries; Direct v/s multi intermediaries

Push Strategy

Supply Manufacturer

Supply

Retailer & Wholesaler

Demand

Demand

Consumer

Marketing Activities

Marketing Activities

Pull Strategy Supply Manufacturer

Demand

Retailer & Wholesaler Marketing Activities

Supply Demand

Consumer

INTEGRATED MARKETING COMMUNICATIONS IMC STRATEGY DEVELOPMENT Once SMART marketing objectives have been set, effective IMC strategies can be developed based on knowledge and understanding of the target consumers. For each marketing objective, one need to ask the 4WHEBA questions: WHO? WHAT? WHERE? WHEN? HOW? how we will EVALUATE the outcomes from the program? how we will develop a BUDGET? who will take responsibility for the ACTION?

INTEGRATED MARKETING COMMUNICATIONS IMC STRATEGY DEVELOPMENT WHO

Who is/are the target audience(s)? What is their current stage of buyer readiness? What do they know about us and our products? What do they know or believe about our competitors? What are their demographic, behavioral, psychographic and geographic characteristics?

WHAT

What response is sought from the target audience? (Do we want brand recognition, sales, feedback, website visits etc.?) What do we want consumers to say, feel, believe, understand or know about our products, brands or organization? What do we not want consumers to think, say feel, believe and so on?

WHERE

Where are consumers most likely to purchase products? Where are the most cost-effective places for consumers to view our communication messages? (TV, radio, billboards, POP, internet, cinema, news paper, magazines etc.)

WHEN

When will the message be displayed and what is the justification for the scheduling? (Christmas messages, Summer messages, Diwali messages etc.) Stage of the PLC & Quadrant of the BCG Matrix; (Intensive scheduling for products in the introduction or growth stages of the PLC or for star products on the BCG Matrix. While products in the maturity stage or cash cow products may only require periodic scheduling for a 2-3 week block every 6-8 months.

INTEGRATED MARKETING COMMUNICATIONS IMC STRATEGY DEVELOPMENT HOW

How will the communication messages be best developed / displayed? How will the message best appeal to the target audience? (cartoon, jingles, testimonials, scientific evidence, humor etc.) (can we use a rational appeal, an emotional appeal, a moral appeal or some combination of these)

EVALUATION (& measurement)

What results do we expect, and how will we measure these for ROI? If we intend to measure results, what do we need to do prior to the campaign running? How will we evaluate the success of the communication program?

BUDGET

How much? What approach?

ACTION

Who (department or individual) is to do what and when to develop the program?

INTEGRATED MARKETING COMMUNICATIONS DEVELOPING EFFECTIVE COMMUNICATIONS 1. IDENTIFY TARGET AUDIENCE – Potential buyers, current users, deciders, users (affects what to say, how to say, when, where and to whom to say) 2. SITUATION ANALYSIS & DETERMINE COMMUNICATION OBJECTIVES 3. DESIGNING THE MESSAGE 4. SELECT THE COMMUNICATION CHANNELS 5. DECIDE ON PROMOTION MIX 6. ESTABLISH TOTAL PROMOTION BUDGET 7. MEASURE PROMOTION RESULTS

INTEGRATED MARKETING COMMUNICATIONS DETERMINING COMMUNICATIONS OBJECTIVES 1)

Category need

2)

Brand awareness: recognition & recall

3)

Brand equity gains

4)

Brand purchase intention: deciding to purchase the brand

INTEGRATED MARKETING COMMUNICATIONS CONSUMER RESPONSE MODELS AIDA Stages

Model

Hierarchy-of-Effects Innovation-Adoption Model

Model

Attention

Stage

Model Exposure

Awareness Cognitive

Communications

Awareness

Reception

Knowledge Cognitive response Interest

Affective

Liking

Attitude

Evaluation

Intention

Preference

Stage Desire

Conviction

Trial

Behavior Stage

Interest

Action

Behavior

Purchase Adoption

INTEGRATED MARKETING COMMUNICATIONS DESIGNING THE MESSAGE • What to say ? (Message Content & Appeals) Informational appeals (Rational, Attributes, Benefits, Comparisons ) Transformational appeals - (Emotional +/-, sensory, social, ego satisfaction) • How to say it logically? (Message Structure)-order of presentation (strongest first or last); Conclusion Drawing • How to say it symbolically? (Message Format) • Who should say it? (Message Source) Celebrity, Expert, Common man; trustworthiness, likeability, affability

INTEGRATED MARKETING COMMUNICATIONS SELECT THE COMMUNICATION CHANNELS

Personal Communication Channels (Face-to-face, E-mail, Telephone, Sales force) And/Or Non-personal Communication Channels (All others communication channels)

INTEGRATED MARKETING COMMUNICATIONS ESTABLISH TOTAL PROMOTION BUDGET

1. Affordable method 2. Percentage to sales method 3. Competition parity method 4. Task oriented method

INTEGRATED MARKETING COMMUNICATIONS DECIDE ON PROMOTION-MIX Promotion-mix include; • Public Relations & Publicity

• Word-of-Mouth • Point-of-Purchase • Advertising • Direct Marketing • Online & Interactive • Sales promotions • Sponsorships • Events & Experiences • Product placements • Personnel selling

INTEGRATED MARKETING COMMUNICATIONS

Factors Influencing Promotion-mix 1.

PRODUCT TYPE

2.

PRODUCT LIFE CYCLE

3.

TARGET AUDIENCE MEDIA HABITS

4.

BUYER READINESS STAGE (Awareness-Knowledge-Conviction-Order-Reorder)

5.

COST

INTEGRATED MARKETING COMMUNICATIONS MEASURING PROMOTION RESULTS

• Awareness

• Trial • Repurchase • Satisfaction • Recall and Recognition scores • Brand equity • Attitude towards the product • Sales increase

INTEGRATED MARKETING COMMUNICATIONS SUCCESS FACTORS • Nature of Message: interesting, informative, eye catching, meaningful, relevant • Audience’s interpretation of message • Environment in which it is received: eg. 20% off in recession would be more effective. • Content: words, pictures, sounds, colours may have different meanings to different people. eg: Black; in urban areas- sophisticated, in rural areasmourning

INTEGRATED MARKETING COMMUNICATIONS HOW INTEGRATED IS THE IMC PROGRAM 1) 2) 3) 4)

Coverage Contribution to awareness, image, attitude, induce sales Commonality – consistency & cohesiveness of common associations Complementarity – different associations

INTEGRATED MARKETING COMMUNICATIONS CHOOSING AMONG MAJOR MEDIA TYPES 1.

TV – Best for Demonstration Purpose

2.

NEWSPAPER – best for launch announcements, authoritative medium.

3.

MAGAZINES – can segment audiences, long life span, pass on readership but periodic hence advertising impact less.

4.

RADIO – good reminder medium

5.

CINEMA – Smaller towns

6.

OUTDOOR – geographically selective medium

7.

OTHERS – neon signs, matchbox covers, wall paintings, tamashas

MERCI