Important to Know Competitors are battling for customers
Marketers spending huge for marketing Methods range from simple to
complex The number of ways to reach potential customers continually
increases. Speak with a clear voice visible measurable Companies
need visible and measurable result from marketing expenditure
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Communication It can be defined as transmitting, receiving and
processing information. When a person, group, or organization
attempts to transfer an idea or message, communication occurs when
the receiver is able to understand the information.
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Communication Process Noise encodingdecoding
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IMC external internal IMC is a strategic business process used
to plan, develop, execute and evaluate coordinated, measurable,
persuasive brand communications programs over time with consumers,
customers, prospects, employees, associates and other targeted
relevant external and internal audiences. The goal is to generate
both short- term financial returns, and build long-term brand and
shareholder value.
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The Components of Promotion Advertising Advertising Sales
Promotion Sales Promotion Personal Selling Personal Selling
Database Marketing Database Marketing Direct Marketing Direct
Marketing Sponsorship Marketing Sponsorship Marketing Internet
Marketing Internet Marketing Public Relations Public Relations
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The components of Promotion
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Why is IMC gaining importance? Strategically integrating
various communication functions, rather than have them operate
autonomously. Avoids duplication Avoids duplication Produces
synergy among promotional tools Produces synergy among promotional
tools More efficient and effective communication programs More
efficient and effective communication programs Higher return on
investment, according to IMC advocates Higher return on investment,
according to IMC advocates In response to changing environment
particularly with respect to consumers, technology and media
Changes in consumer demographics, lifestyles, media use, buying and
shopping patterns Changes in consumer demographics, lifestyles,
media use, buying and shopping patterns
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Why is IMC gaining importance? Media fragmentation they are
each reaching a smaller and more selective audience How many TV
channels do you have at home? How many TV channels do you have at
home? How many newspapers get printed everyday? How many newspapers
get printed everyday? Online services gaining prominence - Internet
now has in excess of 800 million internet users Hotel and car
rentals Hotel and car rentals Airline bookings Airline bookings
Consumers tune out traditional advertising We are put off by
advertising We are put off by advertising We are tired of being
bombarded with sales messages We are tired of being bombarded with
sales messages Gen Y are skeptical of traditional advertising Gen Y
are skeptical of traditional advertising
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Promotional Mix Advertising Direct Marketing Interactive/
Internet Marketing Sales Promotion Publicity/ Public Relations
Personal Selling
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An Integrated Marketing Communications Plan Situation Analysis
Marketing Objectives Marketing Budget Marketing Strategies
Marketing Tactics Evaluation of Performance
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Situation Analysis Internal Analysis Promotional department
organization Firms ability to implement promotional program Agency
evaluation and selection Review of previous program results
External Analysis Consumer behavior analysis Market segmentation
and target marketing Market positioning refer to Belch & Belch:
Figure 1-7
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Marketing Objectives Higher Sales? Increase Market Share A new
Competitive Position Desired Customer Actions To create awareness
or knowledge about a product To create an image
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Marketing Budget Ideally, there should be just 2 questions:
What will the promotional program cost? How will the money be
allocated? In reality, budget is often allocated on the basis of
How much is available for spending A percentage of companys or
brands sales revenue
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Marketing Strategies Positioning Differentiation Branding In
our factories we make products, in the supermarket we sell hope. -
Charles Revson, Founder of Revlon I clothe egos - Versace, Fashion
Designer
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Evaluation of Performance Firm accomplish its overall marketing
goals and objectives We need to know how well the promotional
program is doing, as well as why The findings of this particular
IMC program will be used as input for the next program.
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Marcom Implement Marcom Strategy Large companies hire
advertising agencies to plan and produce their messages and to
evaluate and purchase the media that will carry their ads. Agencies
work closely with clients as they develop the ads and select
media.
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Refining the IMC Program First Stage First Stage Identify,
coordinate, and manage all forms of marketing communication. Bring
all the communications elements under one umbrella Second Stage
Second Stage Communications are examined from the perspective of
the customer. To be certain external communication match internal
communication
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Refining the IMC Program Third Stage Third Stage Should find
ways to apply information technology to IMC programs Final Stage
Final Stage Organization uses customer data information and
insights to drive corporate strategic planning
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Factors Affecting the Value of IMC Program Development of
Information Technology Changes in Channel Power Increase in
competition ( Global Competitors) Maturing Markets Brand Parity
(Identical Benefits, Are you ready to switch?) Integration of
Information by customers Decline in effectiveness of mass
advertising
