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An Introduction to Integrated Marketing Communications

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Presentation on theme: "An Introduction to Integrated Marketing Communications"— Presentation transcript:

1 An Introduction to Integrated Marketing Communications

2 The Marketing & Promotional Mixes
Product or Service Pricing Policy Distribution Method Promotional Mix Advertising Direct Marketing Sales Promotion Publicity/Public Relations Personal Selling Interactive/Internet Mktg IMC Tools

3 What is IMC? The practice of unifying all marketing communication efforts so they send a clear, consistent, persuasive message to target audiences.

4 Integrated Marketing Communications
A marketing communications planning concept. Recognizes the value of a comprehensive plan. A plan that evaluates the strategic roles of several communications disciplines: General advertising Direct response Sales promotion Public relations Combines the disciplines to provide: Clarity Consistency Maximum communications impact

5 Why is IMC becoming so important?
Increased “clutter”. Decreased message credibility. Increased price competition. Fragmented media markets. Shift in channel power. The development of database marketing. Changes in information technology.

6 IMC Example Book

7 Advertising Paid, sponsor-identified, nonpersonal (media) communications. Advantages Low cost per contact High degree of control Best differentiation tool Best brand equity builder Disadvantages Very high overall cost Difficult to determine effectiveness Credibility problems Clutter

8 Direct Marketing Part of the IMC program Typically has separate:
Objectives Budgets Strategies Direct marketing methods Direct mail Cataloging Telemarketing Direct response ads Internet sales

9 Interactive/Internet Marketing
An entirely new era: Little or no history or experience Rapidly changing communications technology Unprecedented growth and development Multiple Internet roles As a persuasive advertising medium As a means to educate or inform customers As a sales tool or an actual sales vehicle To obtain customer database information To communicate and interact with buyers To provide customer service and support To build and maintain customer relationships

10 Sales Promotion Customer-oriented Trade-oriented
Marketing activities that provide extra value or incentives to the sales force, distributors, or ultimate consumers and can stimulate immediate sales. Customer-oriented Targeted to the ultimate users of a product or service Coupons Sampling Premiums Rebates Contests Sweepstakes POP materials Trade-oriented Targeted toward marketing intermediaries such as retailers, wholesalers, or distributors Buying allowances Promotional allowances Price deals Sales contests Trade shows

11 Sales Promotion Uses Introduce new products
Get existing customers to buy more Attract new customers Combat competition Maintain sales in off season Increase retail inventories Tie in advertising & personal selling Enhance personal selling efforts

12 Sales Promotion Advantages Disadvantages
Response is more immediate than advertising. Appeals to price sensitive consumers Generates extra interest in advertising Easy to measure effects High control Disadvantages Short term impact Often abused Promotion wars Negligible brand image effect

13 Publicity Non-paid, unsponsored, nonpersonal (media) communications.
Advantages Most credible Low cost mass communication Disadvantages Very little control Requires media cooperation. Can be negative.

14 Public Relations Tools used by Public Relations
The management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance. Tools used by Public Relations Publicity Special publications Community activity participation Fund-raising Special event sponsorship Public affairs activities

15 Personal Selling Advantages Disadvantages Low overall costs
Best for complex info Very specific targeting Direct feedback Flexible message Disadvantages Very high cost per contact Difficult to communicate a uniform message Medium level of control

16 IMC Players Advertiser or Client Advertising Agency
AAAA; AAF; ARF Media Organizations Marketing Communications Specialists Direct Marketing Agencies Sales Promotion Agencies Interactive Agencies Public Relations Firms Collateral Services Namelab; Strategic Name Development

17 Reasons for Using an Agency
Obtain services of highly skilled specialists Artists Writers Media analysts Researchers Others with specific skills Obtain an objective point of view Free of internal policy constraints and biases Broad range of experience, having worked with: Diverse marketing problems Various types of clients

18 Full-Services Agencies
Full Range of Marketing, Communication and Promotion services Planning, creating, producing advertising Performing research Selecting media Non-Advertising Services Strategic market planning Sales promotion and sales training Production of trade show materials Package design Public relations and publicity

19 Agency Services Account services Marketing services Creative services
The link between agency and client Managed by the Account Executive Marketing services Research department may design and execute research programs Media department may analyze, select and contract media resources Creative services Creation and execution of ads Copywriters, artists, other specialists

20 Other Agencies and Services Creative Boutiques
Provide only creative services Other functions provided by the internal client departments Full-service agencies may subcontract with creative boutiques

21 Other Agencies and Services Media Buying Services
Specialize in buying media, especially broadcast time Agencies and clients develop media strategy Media buying organizations implement the strategy and buy time and space

22 Direct Response Agencies
Data Base Management Direct Mail Research Media Services Creative Production

23 Sales Promotion Specialists
Contests Sweepstakes Refunds and rebates Sampling programs Incentive programs

24 Public Relations Firms
Strategy Development Program Planning Generating Publicity Lobbying Public Affairs Image portrayal Damage control

25 Interactive Agencies Interactive Media Creation Digitized Content
Web sites Web banner ads CD-ROMs Kiosks Digitized Content Audio Video Animation

26 Agency Compensation The Commissions Method Fee Arrangements
Agency usually receives 15 percent Commissions are paid by the media Commission system is controversial System is becoming less common Fee Arrangements Fixed fee method Fee-commission method Cost-Plus Agreements Incentive-Based Compensation Percentage Charges

27 Marketing Strategy The Marketing Concept What is Marketing Strategy?
Providing superior customer value. What is value? The marketing Strategy Process: Opportunity Identification / Situation Analysis S-T-P Marketing mix

28 Situation Analysis Internal Factors External Factors
Assessment of the firm’s promotional organization and capabilities Review of the firm’s previous promotional programs Assessment of firm or brand image and implications for promotion Assessment of relative strengths and weaknesses of product/service External Factors Customer analysis Competitive analysis Environmental analysis

29 Segmentation, Targeting, and Positioning
Market Segmentation 1. Identify segmentation variables and segment the market 2. Develop profiles of resulting segments Market Targeting 3. Evaluate the attractiveness of each segment 4. Select the target segment(s) Product/Service Positioning 5. Identify possible positioning concepts for each target segment 6. Select, develop, and communicate the chosen positioning concept

30 Segmentation Segmentation is a concept that recognizes the diversity in the marketplace. The process of segmenting the market produces clusters of people who enjoy similar product features.

31 Segmentation Goal: Identify segments that seek different benefits and, therefore, will be responsive to different positionings of the product/offerings. Means: Link benefits sought to characteristics that make customers readily identifiable and accessible. For example: User status, Demographics, Media exposure patterns, … Caution: Avoid over-segmenting; make sure that each segment is substantial enough to justify a unique positioning effort.

32 Market Segmentation Bases for Segmentation Usage Geographic
Non-users vs. Category users Competitor users vs. Own brand users Geographic Zip Code Analysis Regional Analysis Demographic Age Gender Income Others Benefit Sought Psychographic

33 Market Segmentation Usage Segmentation Category Usage Nonusers (%)
Light Half %pop %use Heavy Half %pop %use Heavy users: Efficiency /Profit Caution: Majority Fallacy Brand Usage $ to Sales - Target people/companies with profile of current user $ to Opportunity - Target users of competitive brands or nonusers

34 Market Segmentation Volkswagen Ads: Geographic Segmentation
Zip Code Analysis Regional Analysis Demographic Segmentation Age Gender Income Others Volkswagen Ads: Synchronicity Smarter

35 Psychographic Segmentation
Market Segmentation Psychographic Segmentation Lifestyles Values Attitudes Interests Opinions

36 Market Segmentation Criteria For Segmentation Capturing Segments
Identifiable Accessible Responsive Significant Capturing Segments Instruments Available Price Product Distribution Promotion Common Positioning Errors Positioning in a crowded market space Positioning on an unimportant attribute

37 Positioning Positioning requires designing a company and product image and developing a marketing mix to promote the image to the target segment(s).

38 Positioning Statement
The key concept of an idea to be communicated to a target market via elements of the marketing mix. Elements: Target Concept (Frame of Reference) Point of Difference

39 Potential Communications Objectives
Individual sales Customer loyalty Company image Brand image Store patronage Service contract An inquiry A visit by the prospect Product trial Prescription for use Recommendation Adoption of the product

40 Communications Objectives
Messages are designed to achieve specific strategic goals. The “BellSouth Yellow Pages” campaign’s four objectives: Introduce the new brand name and achieve 50% unaided brand awareness 80% aided brand awareness Exceed unaided ad recall norm of 14% Improve consumer usage share above 85% Increase revenues by 2.6%

41 Major Aspects of the Advertising Program
Message development Called “Creative Strategy” Determine basic appeal Determine main message Media strategy Communication channels Type of media . . . Newspapers? Magazines? Radio? Television? Outdoor? Specific media . . . What specific papers, magazines, stations, billboards, or other media?

42 Product Decisions A product is a bundle of benefits or values
Product symbolism refers to what a product or brand means to customers Product quality, branding, packaging, and company name contribute to product image BRANDING: Brand name communicates attributes and meaning Advertising creates and maintains brand equity PACKAGING: Packaging has become increasingly important It is often the customer’s first exposure to product

43 Pricing Decisions Price must be consistent with perceptions of the product Higher prices communicate higher product quality Lower prices reflect bargain or “value” perceptions A product positioned as high quality while carrying a lower price than competitors will confuse customers Price, advertising and distribution be unified in identifying the product position

44 Distribution Channel Decisions
Channel decisions involve: Selecting Managing Motivating Independent intermediaries: Wholesalers Distributors Brokers Retailers

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