1. Communication Strategy and IMC
MKT 460 (Strategic Marketing)
Taufique Hossain

2. The marketing communications mix
The internet and digital technologies have enabled new interactive forms of communication, where the receiver has greater responsibility for their part in the communication process
A traditional model of the marketing communication mix

3. Figure 1.1 The tools and position of the marketing communications mix Fill 2009

4. Figure 1.2 Above-and below-the-line communications Fill 2009

5. Selection Criteria Degree of control required over delivery
Financial resources available (cost)
Level of credibility
Ability to deliver message (communications)
Size and geographic dispersion of target audiences

6. Key Characteristics of Tools
ADVERTISING
Non-personal mass communication
High reach
Impact
High cost
Low credibility?
Difficult to measure

7. Key Characteristics of Tools
SALES PROMOTION
Used tactically in short term
Aim is often to increase sales
High control and measurement
Moderate cost
Can be used throughout distribution channel
Credibility may be questioned

8. Key Characteristics of Tools
PERSONAL SELLING
Interpersonal communications tool (two way)
Instantaneous feedback possible
Message can be tailored
High cost
More suitable where message is complex

9. Key Characteristics of Tools
DIRECT MARKETING
Any form of direct response communications
Targets individual customers (database)
Can deliver personalised message
Builds relationships
Facilitated by technological developments
Moderate absolute cost but cost per contact high

10. Key Characteristics of Tools
PUBLIC RELATIONS
Non-personal
Wide range of tools available
High credibility
Low cost

11. Figure 1.3 The relative effectiveness of the tools of the marketing communications mix Fill page 25

12. Table 1.4 The 4Cs Framework – a summary of the key characteristics of the tools of marketing communications Fill

13. Major communication tools
Use
Examples
Advertising
Efficiently gets message to large audience
Television and radio commercials and new paper ads; paid search engine links; product and company brochures; billboards; transit ads; ads delivered by cell phone and s
Sales promotion
Stimulate immediate purchase; reward repeat purchase
Samples, coupons, premiums, contests, games, incentives
Public relations
Build positive image, strengthen ties with stakeholders
Event sponsorship, news release, briefings, speeches and blogs, public appearance
Direct marketing
Reach target audience, encourage direct response
Mail, , telemarketing campaigns, printed and online catalog, direct response tv and radio
Personal selling
Reach customers one to one to make sales, strengthen relationships
Sales appointment, sales meetings and presentation, online sales chat help

14. New Tools, New Media Broadcast advertising (TV/radio)
Print advertising (newspaper/magazine)
Interactive/internet marketing
Website/on-line advertising
Outdoor/billboards
Mobile/Wap
Personal selling
Telemarketing
Packaging
Direct marketing
Publicity/PR
Point of purchase
Product placement
Sales promotion
Word of mouth
Events & sponsorship

15. Product Placement

16. The Marketing Communications Planning Process
Context analysis
Communication objectives
Marketing communications strategy
Communications mix [tools and media]
Scheduling and Implementation
Resources
Evaluation and control
Feedback

17. Context Analysis
Can relate to environmental analysis undertaken by marketing>
SWOT PEST
Should adopt a communications focus:
Customer -Segmentation
Business – Corporate and marketing strategy, Competitor analysis
Internal – Financial, Culture, Value, Marketing expertise
External – Stakeholders, PEST

18. Lucozade Sport: Award Winning Campaign

19. Lucozade Sport: Understanding the market context
Non-alcoholic
Alcoholic
Water
Juice
Milk
Tea
Coffee
Lucozade
Other
Carbonated soft drink
Power
ade
Energy
Non-energy

20. Lucozade Sport: Business Context
Launched in 1990, by 2004 had grown to £50m brand
Strong year on year growth
In 2004 sales and usage fell sharply
Pepsi’s Gatorade and Coca Cola’s Powerade are main competitors
2005 Powerade redesigns packaging and attracts market aggressively
Only 18% of sports participants drinking Lucozade Sport by 2004

21. Determination of Objectives
Value of objectives:
Focus and coordination
They help to orient everyone involved toward a common goal
Guide for strategy formulation
They serve as criteria for developing strategy and making decisions
Measurement & control
They provide the standards and benchmarks for evaluating results

22. Objectives Objectives should consist of three main element:
Corporate objectives – business or marketing plan, mission
Marketing Objectives – sales objectives, market share, ROI
Marketing communication objectives – Current context, Current Brand identity, Future context

23. Lucozade Sport: Campaign Objectives
Getting associated with sport preparation so that the brand would be consumed before sport [Before]
Giving the product functionality and scientific credentials to raise credibility [Fuel]
Reduce the claim and align the brand to small but meaningful sport events [Edge]

24. Strategy
Guides the direction, approach and implementation of an organisation’s desired marketing communications
>Push
>Pull
>Profile
Planning is about the formalisation of the strategy and ideas into a manageable sequence of activities that can be resourced and implemented.

25. Figure 12.5 Marketing communication strategic eclipse

26. Figure 12.2 The direction of communication in a pull strategy

27. Pull Strategy
This will “pull” products through the distribution channels
Promote to consumers and users in order to “create” demand
Emphasis on mass media advertising

28. Figure 12.3 The direction of communication in a push strategy

29. Push Strategy Products “pushed” through the distribution channel
Promoting heavily to members of the distribution channel eg retailers, wholesalers, agents
It is assumed that they will in turn promote heavily to the end consumer
Emphasis on personal selling and sales promotion

30. Figure 12.4 The direction of communication in a profile strategy

31. Profile Strategy Communications to ‘stakeholder’ groups
Focuses on development of corporate image and reputation
Awareness, perception and attitudes held by stakeholders towards an organisation need to be understood and acted upon
Dialogue required which will normally lead to development of trust and commitment

32. Product life cycle stage and communication
Introduction
High initial expenditure
Advertising to create awareness
Sales promotion to create trial, retailer acceptance
Growth
Less intense communication activity
Shifts away from awareness to brand equity building
Advertising as a prime means of image creation
Each stage of the product life cycle requires a different communication strategy.
Growth- less information giving; more image building

33. Product life cycle stage and communication
Maturity
Reminding and reassuring
Decline
Low levels of advertising and sales promotion
Maturity- defensive and holding operation
Blanket application of this model is not good; Coke is a mature brand that keeps reinventing tself to keep it relevant and appealing to the teenage section. So, if you follow their communication, you will find that they keep coming up with new ideas, themes, etc which might resemble communication for earlier stages.

34. Coordinated communication mix
Figure 1.1 The tools and position of the marketing communications mix Fill 2009

35. Lucozade Sport: Communications Mix
Advertising Press/TV
Sponsorship
Talksport
Product Placement
Sports Science Academy
Relationship building

36. Resources: Budget Planning
Four commonly used approaches to setting the budget:
All you can afford
Percentage of sales
Competitive expenditure
Objective & task

37. Scheduling/Implementation
Agency v In-house
Creative
Copy
Production
Printing
Media planning and booking
Distribution
Timescale?
Competitors?
Environment

38. Monitoring & Evaluation of performance
Contingency planning
Feedback

39. Evaluation Techniques
Complex especially in the case of integrated campaigns. Each element of the mix may be measured in a different way to capture individual contribution.
Examples of some measurement techniques:
> Recall and recognition tests (TV advertising)
> Tracking studies (advertising)
> Column inches (PR)
> Coupon redemption (sales promotion)
> “hits” (online)
> Sales??????????

40. Lucozade Sport: Campaign Evaluation
Year on year sales
Penetration level among sports participants
Credibility of essential role in sports preparation

41. Integrated Marketing Communications (IMC)
The triangulated use of combinations of media emanating from the belief that image advertising, sales promotion, direct response advertising and marketing public relations are not mutually exclusive disciplines and that incorporating elements of each into communication materials may lead to a triangulation in effects Nowak and Phelps, 1994
Integrated marketing communications is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communications programmes over time Schultz, 2004

42. Figure 11.1 Elements for integration

43. The Case for IMC Reduce costs Streamlines company/agency relationships
Achieve synergy across mix
Supports brand and brand positioning in crowded market place
Fosters customer focused
Requires cultural shift and employee participation

44. The Case against IMC Encourages rigidity and inflexibility?
Decision making becomes more centralised
Loss of creativity
Increased time and bureaucracy
Internal resistance
Need for global brands to be adapted?
Could damage brand if one/some elements do not fit effectively

45. Management Fashion?
“ IMC is a management fashion, apparent in its lack of definition and transient influence and its influence upon practice should be conceived accordingly” “ Despite its pervasive penetration in the marketing and communication management world, little has been said, however, about IMC’s theoretical robustness as well as its actual significance for marketing and advertising thought and practice” Cornelissen & Lock 2000

46. The marketing communications mix
An Integrated Marketing Communication Mix
A contemporary model of the marketing communication mix