Marketing Review & The Role of IMC in Marketing

Preview What is Marketing? What separates the mind of the marketing professional from the marketing armature? What is IMC Ho do we use IMC? What are some target outcomes for IMC?

What is Marketing? 3 The Customer

4 What is Marketing? Customer Marketing Activities

Marketing Yesterday’s – The Four P’s –Product –Price –Place –Promotion Jerome McCarthy, 1960

Marketing 1990’s – The Four C’s –Consumer wants –Cost to Satisfy –Convenience to Buy –Communication Bob Lauterborn, 1990

Marketing Process 2011 – The Four B’s –Buyer satisfaction, instantly –Best price (value) anywhere –Buying is various places –Branding + available, searchable, accurate, complete information Prof. Buford Barr, Santa Clara University

What Is Marketing? Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return

9 The Mindset of the Professional Marketer Amateur MarketingProfessional Marketing Focuses on Product? Assumes Customer Perceptions ? Focus on Benchmark Data ? Focuses on Price? Marketing by “Gut Feel” ? Reactive?

The Mindset of the Professional Marketer Amateur MarketingProfessional Marketing Focuses on ProductFocuses on Customer Assumes Customer Perceptions Understands & Manages Perceptions Focus on Benchmark Data Focus on Market Requirements Focuses on PriceFocuses on Value Marketing by “Gut Feel” Performs with Process ReactiveProactive Any Others?

The Marketing Process

Customer Needs, Wants & Demands

Products vs. Wants Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want Marketing myopia is focusing only on existing wants and losing sight of underlying consumer wants … and demands

Customer Value, Satisfaction & Expectations

Designing a Customer-Driven Marketing Strategy Marketing Management Orientations

Designing a Customer-Driven Marketing Strategy Production concept is the idea that consumers will favor products that are available or highly affordable Marketing Management Orientations

Designing a Customer-Driven Marketing Strategy Product concept is the idea that consumers will favor products that offer the most quality, performance, and features. Marketing Management Orientations

Designing a Customer-Driven Marketing Strategy Selling concept is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort

Designing a Customer-Driven Marketing Strategy Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do

Designing a Customer-Driven Marketing Strategy What companies do this? How? Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-term interests, and society’s long-run interests

The marketing mix is the set of tools (four Ps) the firm uses to implement its marketing strategy. It includes product, price, promotion, and place. Integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers. Preparing an Integrated Marketing Plan and Program

Integrated Marketing Communications Principles

Defining IMC IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences. The goal of IMC is to generate short-term financial returns and build long-term brand value.

IMC– A Working Definition A process for managing the customer relationships that drives brand value A cross-functional process that strategically controls or influences messages sent to customers and prospects and that encourages a data- driven purposeful dialog with them

Duncan’s 5 Strategic IMC Elements Cross functional design with support from top & senior management An “outside-in” data base to determine perceptions and market trends Marketing messages and activities operating in a synergistic manner and following a plan A widely-defined target audience … customers, prospects, government agencies, special interest groups A brand based on special relationships with multiple audiences underpinned by 2-way and symmetric communications Duncan (2001). Using Advertising & Promotion to Build Brand. McGraw-Hill

Contemporary Perspective of IMC Demand for accountability Demand for accountability and measurement of outcomes Recognized as a business process Importance of relevant audience Recognized as a business process Multiple relevant audiences IMC

Why Integrated Communications Increase Reach People use different media to get their information People do not see the same media Not everyone is “tuned in” when your message hits Increases Frequency Cognitive research says that a person needs to see the same message 6 times before it is seen once Different people “need” the information at different times Repeated viewing of the same information builds credibility and believability Overcome Clutter & Noise Media Proliferation – The internet, social media, web 2.0 Decision making is a process, not an event

Growing Importance of IMC Strategic integration of communications functions –Avoids duplication –Synergy among promotional tools –More efficient and effective marketing Rapidly changing environment –Customers –Technology –Media

Rapidly Changing Media Environment Increasingly difficult to target audiences & communicate effectively –Customers no longer passive recipients –They demand more than information –From a myriad of sources

The Promotional Mix Advertising Direct Marketing Interactive/ Internet Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations Publicity/Public Relations Personal Selling

Strategic Communication Roles Use public relations to build brand Use print and electronic advertising to reinforce the brand Use internal and external events to amplify the brand Use collateral (print and electronic) to substantiate the brand Use new and social media to build brand loyalty and advocacy

Traditional MarCopm Approach Point of purchase Public relations Direct marketing Interactive marketing Special events Packaging Sales promotion Direct response Media advertising Publicity

Contemporary IMC Approach Point of purchase Publicity Interactive marketing Public relations Direct marketing Special events Packaging Sales promotion Direct response Media Advertising

IMC Target Outcomes Framing preferred brand visions – product benefits or performance Strengthening brand value and perception – added value beyond physical attributes Enriched brand memory – enriched experiences that positively catalyze future re-purchase intention and behavior Tsai (2005). “Integrated Marketing as Management of Holistic Consumer Experience”; Business Horizons 48, Indiana University Kelley School of Business

In Review What is Marketing? What separates the mind of the marketing professional from the marketing armature? What is Integrated Marketing Communications (IMC)? How do we use IMC? What are some target outcomes for IMC?