Marketing Management 13 th of June 2011

Communicating Customer Value Integrated Marketing Communications Strategy

Background Part of greater Marketing Tools – Promotions Used to clearly and persuasively communicate value Trends show growth in digital media spend and reach Digital communication is not done in isolation – it’s part of the wider marketing campaign Marketers should blend new media strategies with old traditional media strategies The point is to garner customer involvement and to advance the brand experience Effective online media and digital campaigns are picked up by traditional media

The Promotion Mix Also known as the Marketing Communication Mix consists of a blend of: –Advertising –PR –Personal Selling –Sales Promos –Direct Marketing Tools The above are to persuasively communicate customer value and build customer relationships The holistic Marketing Mix has to be well coordinated for a a better communication impact

Integrated Marketing Communication Previously mass media campaigns were the preferred means of communications Mass media advertising in magazines, billboards, radio and television – past Changes in consumers has compelled marketing communication to transform and led to: –The New Marketing Communications Landscape –The Shifting Marketing Communications Model –The Need for Integrated Marketing Communications

New Marketing Communications Landscape Major Factors affecting change in marketing communications: –Consumers are changing and more informed and empowered – effects of internet and options available to consumers –Marketing Strategies are changing and the focus is becoming more on focused marketing programs –Vast improvements in communications technology – the digital age New technologies give marketers new ideas and media to interact with targeted consumers Consumers are now more in control over the nature and timing of messages to send and receive

Shifting Marketing Communications Model The new digital media has given birth to new marketing communications model Communication has become less broadcasting and more focussed and narrow –More specialised and targeted media selections –Smaller customer segments and personalised messages The model is about providing consumer clusters what they want and not force feeding them Mass media audiences are shrinking, costs continue to rise and advertising clutter increases Could we be seeing the demise of traditional mass media? Are the TV, radio and magazine adverts still necessary?

Shifting Marketing Communications Model Advertisers are making the shift from mass media to targeted, cost-effective, engaging and interactive media Audiences are dispersing in many directions and using different mediums Traditional media still works, it just has far more competition and reduced pull New Marketing Communications Model will consist of both traditional mass media and variety of targeted and personalised media Effective use of media now demands a cocktail of media tools Marketers must embrace all communication means and see them as plain media

Shifting Marketing Communications Model

Need for Integrated Marketing Communications Consumers receive messages from broad range of sources Messages from differing media should all become part of a single company message Often companies fail to integrate various communication channels effectively Different company departments and different service providers Results in distorted communication to consumers Mixed communications from various sources results in blurred consumer brand perceptions

Need for Integrated Marketing Communications Companies need to coordinate all customer touch points to ensure a clear and consistent brand message Integrated Marketing Communications: integrating and coordinating the company’s numerous communication channels to deliver a clear, consistent and compelling message about the organisation and its products All touch points are considered and will deliver a positive message to build strong relationships IMC consistently incorporates all the company’s communication, messages and images Greater communication consistency leads to greater sales impact

Need for Integrated Marketing Communications

The Communication Process Communications is now being viewed as managing customer relationships over time We’re no longer interested in immediate, short-sighted goals Not only “How can we reach customers?”, but also “How can we enable customers to reach us?” Customers differ and therefore programs have to be developed for specific segments, niches and varying individuals We need to understand and audit all our touch points and understand their influence and effectiveness Marketers need to understand the communication experiences at different stages of the buying process

The Communication Process We need to understand the basis of communication to communicate effectively Communication involves nine elements: –Major Parties: Sender and Receiver –Communication Tools: Message and the Media –Communication Functions: Encoding, Decoding, Response and Feedback –Noise: Noise during the process

The Communication Process

Key Factors of Good Communication –Senders need to know their targeted audience –Senders need to know responses they seek –Senders need good ability of encoding messages which considers how the target market decodes them –Senders need to send messages through media which reaches target audiences –Feedback channels to assess audience response to the message The best messages consist of words and symbols which are familiar to the receiver The more the sender’s experience overlaps with that of the receiver the more effective the message

See you next time. Cheers Guys!