Communication Strategy & IMC

Communication Strategy and IMCMKT 460 (Strategic Marketing)Taufique Hossain1The marketing communications mixA traditional model of the marketing communication 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 processFigure 1.1 The tools and position of the marketing communications mix Fill 2009

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

Selection CriteriaDegree of control required over deliveryFinancial resources available (cost)Level of credibilityAbility to deliver message (communications)Size and geographic dispersion of target audiences

Key Characteristics of ToolsADVERTISINGNon-personal mass communicationHigh reachImpactHigh costLow credibility?Difficult to measureKey Characteristics of ToolsSALES PROMOTIONUsed tactically in short termAim is often to increase salesHigh control and measurementModerate costCan be used throughout distribution channelCredibility may be questionedKey Characteristics of ToolsPERSONAL SELLINGInterpersonal communications tool (two way)Instantaneous feedback possible Message can be tailoredHigh costMore suitable where message is complex

Key Characteristics of ToolsDIRECT MARKETINGAny form of direct response communicationsTargets individual customers (database)Can deliver personalised messageBuilds relationshipsFacilitated by technological developmentsModerate absolute cost but cost per contact highKey Characteristics of ToolsPUBLIC RELATIONSNon-personal Wide range of tools availableHigh credibilityLow cost

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

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

Major communication toolsToolUseExamplesAdvertisingEfficiently gets message to large audienceTelevision and radio commercials and new paper ads; paid search engine links; product and company brochures; billboards; transit ads; ads delivered by cell phone and emailsSales promotionStimulate immediate purchase; reward repeat purchaseSamples, coupons, premiums, contests, games, incentivesPublic relationsBuild positive image, strengthen ties with stakeholdersEvent sponsorship, news release, briefings, speeches and blogs, public appearanceDirect marketingReach target audience, encourage direct responseMail, email, telemarketing campaigns, printed and online catalog, direct response tv and radioPersonal sellingReach customers one to one to make sales, strengthen relationshipsSales appointment, sales meetings and presentation, online sales chat helpNew Tools, New Media

Broadcast advertising (TV/radio)Point of purchaseWebsite/on-line advertisingInteractive/internet marketingMobile/WapDirect marketingSales promotionEvents & sponsorshipProduct placementPublicity/PRTelemarketingWord of mouthPersonal sellingPackagingOutdoor/billboardsPrint advertising (newspaper/magazine)14Product Placement

The Marketing Communications Planning ProcessContext analysisCommunication objectivesMarketing communications strategyCommunications mix [tools and media]Scheduling and ImplementationResourcesEvaluation and controlFeedbackContext AnalysisCan relate to environmental analysis undertaken by marketing> SWOT PESTShould adopt a communications focus: Customer -Segmentation Business Corporate and marketing strategy, Competitor analysis Internal Financial, Culture, Value, Marketing expertise External Stakeholders, PEST Lucozade Sport: Award Winning Campaign

Lucozade Sport: Understanding the market contextEnergyNon-energyNon-alcoholicCarbonated soft drinkAlcoholicWaterLucozadeJuiceMilkTeaCoffeeOther Powerade19Lucozade Sport: Business ContextLaunched in 1990, by 2004 had grown to 50m brandStrong year on year growthIn 2004 sales and usage fell sharplyPepsis Gatorade and Coca Colas Powerade are main competitors2005 Powerade redesigns packaging and attracts market aggressivelyOnly 18% of sports participants drinking Lucozade Sport by 2004

Determination of Objectives Value of objectives:Focus and coordinationThey help to orient everyone involved toward a common goalGuide for strategy formulationThey serve as criteria for developing strategy and making decisionsMeasurement & controlThey provide the standards and benchmarks for evaluating results

21ObjectivesObjectives should consist of three main element:Corporate objectives business or marketing plan, missionMarketing Objectives sales objectives, market share, ROIMarketing communication objectives Current context, Current Brand identity, Future context

Lucozade Sport: Campaign ObjectivesGetting 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]StrategyGuides the direction, approach and implementation of an organisations desired marketing communications>Push>Pull>ProfilePlanning is about the formalisation of the strategy and ideas into a manageable sequence of activities that can be resourced and implemented.Figure 12.5 Marketing communication strategic eclipse

Figure 12.2 The direction of communication in a pull strategy

Pull StrategyThis will pull products through the distribution channelsPromote to consumers and users in order to create demandEmphasis on mass media advertisingFigure 12.3 The direction of communication in a push strategy

Push StrategyProducts pushed through the distribution channelPromoting heavily to members of the distribution channel eg retailers, wholesalers, agentsIt is assumed that they will in turn promote heavily to the end consumerEmphasis on personal selling and sales promotionFigure 12.4 The direction of communication in a profile strategy

Profile Strategy Communications to stakeholder groupsFocuses on development of corporate image and reputationAwareness, perception and attitudes held by stakeholders towards an organisation need to be understood and acted uponDialogue required which will normally lead to development of trust and commitmentProduct life cycle stage and communicationIntroductionHigh initial expenditureAdvertising to create awarenessSales promotion to create trial, retailer acceptanceGrowthLess intense communication activityShifts away from awareness to brand equity buildingAdvertising as a prime means of image creation32Each stage of the product life cycle requires a different communication strategy.

Growth- less information giving; more image buildingProduct life cycle stage and communicationMaturityReminding and reassuring

DeclineLow levels of advertising and sales promotion 33Maturity- 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.

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

Coordinated communication mixLucozade Sport: Communications MixResources: Budget PlanningFour commonly used approaches to setting the budget:All you can affordPercentage of salesCompetitive expenditureObjective & task36Scheduling/ImplementationAgency v In-house Creative Copy Production Printing Media planning and booking Distribution Timescale?Competitors?EnvironmentFeedbackContingency planningMonitoring & Evaluation of performance38Evaluation TechniquesComplex 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??????????

Lucozade Sport: Campaign EvaluationYear on year salesPenetration level among sports participantsCredibility of essential role in sports preparationIntegrated 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 Figure 11.1 Elements for integration

The Case for IMCReduce costsStreamlines company/agency relationshipsAchieve synergy across mixSupports brand and brand positioning in crowded market placeFosters customer focusedRequires cultural shift and employee participationThe Case against IMCEncourages rigidity and inflexibility?Decision making becomes more centralisedLoss of creativityIncreased time and bureaucracyInternal resistanceNeed for global brands to be adapted?Could damage brand if one/some elements do not fit effectivelyManagement 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 IMCs theoretical robustness as well as its actual significance for marketing and advertising thought and practice Cornelissen & Lock 2000The marketing communications mix

An Integrated Marketing Communication MixA contemporary model of the marketing communication mix