Integrated Marketing Communication ( Chapter 1 )

8/7/2019 Integrated Marketing Communication ( Chapter 1 )

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IntroductionIntroductionAn Introduction to

Integrated MarketingCommunication

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Integrated MarketingIntegrated MarketingCommunicationCommunication

Thursday, 03 February2011

Integrated Marketing Communication

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Integrated MarketingIntegrated MarketingCommunicationsCommunications

For many years, the promotional function in mostcompanies was dominated by mass-media advertising.Companies relied primarily on their advertisingagencies for guidance in nearly all areas of marketingcommunication. Most marketers did use additionalpromotional and marketing communication tools, butsales promotion and direct-marketing agencies as wellas package design firms were generally viewed asauxiliary services and often used on a per-project basis.Public relations agencies were used to manage the

organizations publicity, image, and affairs with relevantpublics on an ongoing basis but were not viewed asintegral participants in the marketing communicationsprocess.



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Integrated MarketingIntegrated MarketingCommunications (cont.)Communications (cont.)

Many marketers built strong barriers around the

various marketing and promotional functionsand planned and managed them as separate

practices, with different budgets, different views

of the market, and different goals and

objectives. These companies failed to recognizethat the wide range of marketing and

promotional tools must be coordinated tocommunicate effectively and present a

consistent image to target markets.



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The Evolution of IMCThe Evolution of IMC

During the 1980s, many companies began

taking a broader perspective of marketingcommunication and seeing the need for a

more strategic integration of their promotional

tools. The decade was characterized by the

rapid development of areas such as salespromotion, direct marketing, and public

relations, which began challenging advertisingsrole as the dominant form of marketing

communication.



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The Evolution of IMC (cont.)The Evolution of IMC (cont.)

These firms began moving toward the process ofintegrated marketing communications (IMC), which

involves coordinating the various promotionalelements and other marketing activities thatcommunicate with a firms customers. As marketersembraced concept of integrated marketingcommunications, they began asking their adagencies to coordinate the use of a verity of

promotional tools rather than relying primarily onmedia advertising agencies and use other types ofpromotional specialists to develop and implementvarious components of their promotional plans.



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A Contemporary Perspective ofA Contemporary Perspective ofIMCIMC

Integrated marketing communication is a

strategic business process used to plane,develop, execute and evaluate coordinated,

measurable persuasive brand communications

programs over time with consumers, customers,

prospects, employees, associates and othertargeted relevant external and audiences the

goal is to generated both short-term financialreturns and build long-term brand and share

holder value.



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Reasons for the GrowingReasons for the GrowingImportance of IMCImportance of IMC

There are a number of reasons why marketers areadopting the IMC approach. A fundamental reasonis that they understand the value of strategicallyintegrating the various communications functionsrather than having them operates autonomously. Bycoordination their marketing communicationsefforts, companies can avoid duplications, takeadvantage of synergy among promotional tools anddevelop more efficient and effective marketing

communications programs. Advocates of IMC arguethat it is one of the easiest ways for a company tomaximize the return on its investment in marketingand promotion.



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Reasons for the GrowingReasons for the GrowingImportance of IMC (cont.)Importance of IMC (cont.)

One of the major reasons for the growingimportance of integrated marketing

communications over the past decade isthat it plays a major role in the process ofdeveloping and sustaining brand identifyand equity.



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The Promotional MixThe Promotional MixThe Tools for IMC



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The Promotional MixThe Promotional Mix

Traditional the promotional mix hasincluded four elements: advertising. Sales

promotion. Publicity relations and personalselling. However in this text we view directmarketing as well as interactive media asmajor promotional-mix elements thatmodern-day marketers use to

communicate with their target markets.Each may take on a variety of forms. Andeach has certain advantages.



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Direct MarketingDirect Marketing

Direct response advertising and other forms ofdirect marketing have become very popular

over the past two decades, owing primarily tochanging lifestyles, particularly the increase intwo income households. This has meant morediscretionary income but less time for in-storeshopping. The availability of credit cards andtool-free phone numbers has also facilitated thepurchase of products from direct-response do.More recently, the rapid growth of the internet isfueling the growth of direct marketing.



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Interactive MarketingInteractive MarketingAdvances in technology and developments that have led todramatic growth of communication through interactivemedia, particularly the internet. Interactive media allow for a

back-and-forth flow of information whereby users canparticipate in and modify the form and content of theinformation they receive in real time.

Unlike traditional forms of marketing communications such asadvertising, which are one-way in nature, the new mediaallow users to perform a variety of functions such as receiveand alter information and images, make inquiries, respond toquestions, and, of course, make purchases. In addition to the

internet, other forms of interactive media include CD-ROMs,kiosks, interactive television, and digital cell phones.



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Sales PromotionSales Promotion

The next variable in the promotional mix is Sales

Promotion, which is generally defined as those

marketing activities that provide extra value orincentives to the sales force, the distributors, or

the ultimate consumer and can stimulate

immediate sales. Sales promotion is generallybroken into two major categories:

Consumer-oriented

Trade-oriented activities.



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Sales Promotion (cont.)Sales Promotion (cont.)

Consumer-oriented sales promotion istargeted to the ultimate user of a product

or service and includes couponing,sampling, premiums, rebates, contests,sweepstakes, and various point-of-purchasematerials these promotional tools

encourage consumers to make andimmediate purchase and thus canstimulate short sales.



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Sales Promotion (cont.)Sales Promotion (cont.)

Trade-oriented sales promotion is targetedtoward marketing intermediaries such as

wholesalers, distributors, and retailers.Promotional and merchandising allowancesprice deals, sales contest, and trade showsare some of the promotional tools used to

encourage the trade to stock and promotea companys products.



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PublicityPublicity

Refers to no personal communicationsregarding an organization, product, service, or

ideas not directly paid for or run underidentified sponsorship. It usually comes in theform of a news story, editorial, or announcement about an organization and/orits products and services. Like advertising,publicity involves no personal communicationto a mass audience, but unlike advertising,publicity is not directly paid for by thecompany.



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Public RelationsPublic Relations

Public relations is defined as the management

function which evaluates public attitudes,

identifies the policies and procedures o f anindividual or organization with the public

interest, and executes a program of action to

earn public understanding and acceptance.Public relations generally have a boarder

objective than publicity, as its purpose is toestablish and maintain a positive image of the

company among its various publics.



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Personal SellingPersonal Selling

The final element of an organizations promotionalmix is personal selling, a form of person-to-person

communication in which a seller attempts to assistsand persuade prospective buys to purchase thecompanys product or service or to act on an idea.Unlike advertising, personal selling involves directcontact between buyer and seller, either face-t-face or through some form of telecommunications

such as telephone sales. This interaction gives themarketer communication flexibility; the seller can seeor hear the potential buyers reactions and modifythe message accordingly.



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The IMC Planning ProcessThe IMC Planning ProcessDeveloping an integrated marketing

communications strategy



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The IMC Planning ProcessThe IMC Planning ProcessIn developing an integratedmarketing communicationsstrategy, a combines the

various promotional-mix toproduce an effectivecommunications program.Integrated marketingcommunicationsmanagement involves theprocess of planning themmust consider which

promotional tools to use andhow to integrate them toachieve marketing andcommunication objectives.



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Review the Marketing Plan andReview the Marketing Plan andObjectiveObjective

The first step in the IMC planning process isto review the marketing plan and

objectives. Before developing apromotional plan marketers mustunderstand where the company has beenits current position in the market. Where itintends to go, and how it plans a written

document that describes the overallmarketing strategy and programsdeveloped for an organization.



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Review the Marketing Plan andReview the Marketing Plan andObjective (cont.)Objective (cont.)

} A detailed situation analysis that consists of aninternal marketing audit and review and an

external analysis of the market competitionand environmental factors.

} Specific marketing objectives that providedirection a time frame for marketing activities,and a mechanism for measuringperformance.

} A marketing strategy and program thatinclude selection of marketing and decisionsand plans for the four elements of themarketing.



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The IMC Planning Process (cont.)The IMC Planning Process (cont.)

}A program for implementing themarketing strategy, including determining

specific tasks to be performed andresponsibilities.

}A process for monitoring andperformance and providing feedback sothat proper control can be maintained

and any necessary changes can bemade in the overall marketing strategy ortactics.



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Promotional Program SituationalPromotional Program SituationalAnalysisAnalysis

After the overall marketing plan is reviewed,the next step in developing a promotional

plan is to conduct the situation analysis. TheIMC program, the situation analysis focus onthe factors that influence or are relevant tothe development of a promotional strategy.

Internal Analysis External Analysis



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Internal AnalysisInternal Analysis

The internal analysis assesses relevant areas involvingthe product offering and the firm itself. The

capabilities of the firm and its ability to develop andimplement a successful promotional program, theorganization of the promotional department, andthe successes and failures of past programs shouldbe reviewed. The analysis should study the relativeadvantages and disadvantages of performing the

promotional functions in house as opposed to hiringan external agency planning, implementing, andmanaging certain areas of the promotionalprogram.



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External AnalysisExternal Analysis

The external analysis focuses on factors such as

characteristics of the firms customers, market

segments, positioning strategies, andcompetitors. An important part of the external

analysis is a detailed consideration of

customers characteristics and buying patterns,their decision processes and factors influencing

their purchase decisions. Attention must also begiven to consumers perceptions and attitudes

lifestyles.



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Analysis of the CommunicationAnalysis of the CommunicationProcessProcess

This stage of the promotional planning processexamines how the company can effectively

communicate with consumers in its targetmarkets. The promotional planner must thinkabout the process consumers will go through inresponding to marketing communications. Theresponse process for products or services forwhich consumer decision making ischaracterized by a high level of interest is oftendifferent from that for low sill influence thepromotional strategy.



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Communication ObjectivesCommunication Objectives

Refer to what the firm seeks to accomplishwith its promotional program. They are

often stated interns of the nature of themessage to be communicated or whatspecific communication effects are to beachieved.



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Budget DeterminationBudget Determination

After the communication objectives are

determined, attention turns to the promotional

budget, two basic questions are asked at thispoint. What will the promotional program cost?

How will the money be allocated? Ideally the

amount a firm needs to spend on promotionshould be determined by what must be done to

accomplish its communication objectives. Inreality, promotional budgets are often

determined using a more simplistic approach.



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Developing the IMC ProgramDeveloping the IMC Program

Developing the IMC program is generallythe most involved and detailed step of the

promotional planning process. As discussedearlier, each promotional mix element hascertain advantages and limitations. At thisstage of the planning process, decisions

have to be made regarding the role andimportance of teach element and theircoordination with one another.



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Monitoring, Evaluation, andMonitoring, Evaluation, andControlControl

The final stage of the IMC planning processis monitoring, evaluating, and controlling

the promotional program. It is important todetermine how well the IMC program ismeeting communications objectives andhelping the firm accomplish its overall

marketing goals and objectives.



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Integrated Marketing Communication ( Chapter 1 )