Integrated Marketing Communication

Combining and integrating different elements of communication mix

Communication mix: Advertising Direct Marketing Consumer & Trade Promotions Publicity & Public Relations Event & Sports Sponsorships

IMC: Advertising Strengths:

Lower cost to reach target customer, since it uses mass media

Advertising can use complex visual and emotional methods to increase the effectiveness of the message (more effective for consumer products & services)

Increase Brand Awareness and favourable attitudes towards the Brand

IMC: Advertising Weaknesses:

Inability to actually get the sale (needs additional sales promotion support)

Widely perceived as biased (low trust and skeptical)

IMC: Direct Marketing Includes:

Direct mail Telemarketing Direct response Internet (?)

Also known as Database Marketing Advantages:

Ability to target specific, individual consumers, with an offer that is tailored to that consumer

Ability to direst measure the response

IMC: Direct Marketing Goal is to to build awareness and

generate action Often combined with advertising Useful:

To retain the loyalty of existing customers To cross-sell new products and services to

existing customers To increase the amount or frequency of

usage

IMC: Direct Marketing Database:

Internal customer data (House list) Advertisement responses (through coupons) Direct marketing Agencies

Users of Direct Marketing: Magazines & Newspapers Insurance-by-mail Book clubs Catalog retailers

IMC: Direct Marketing Targeting:

Cluster identification by database companies ClusterPLUS (Donnelley) Dun & Bradsheet Metromail

Creative Guidelines: Use testimonials Give as much information as possible Easy-to-use response cards Urgency for immediate response Scratch off number

IMC: Sales Promotion Consumer Promotion:

Coupons Straight price rebates For next purchase Other products consumed by a similar target

market (cross-ruff coupons) Point-of-sale coupon for a consumer buying a

competing brand (Catalina Marketing)

IMC: Sales Promotion Consumer Promotion:

Sweepstakes: Chance to participate in a contest Lucky draw

Subsidized financing:

IMC: Sales Promotion Trade Promotion:

Buying Allowance or Off-invoice Reduction at the time of invoicing depending

on volume Not linked to retailers' performance, displays,

retail store ads Count-Recount Allowances:

Discount is applied to volumes moved from distributor's warehouses to retailer's stores

IMC: Sales Promotion Trade Promotion:

Billback allowances: Based on retailers' performance Requires sales force to monitor compliance Performance could include in-store displays,

feature ads in retailer's circulars Display Allowances In-Ad Grocer Coupon:

Redeemable only at that retailer's stores

IMC: Sales Promotion Trade Promotion:

Slotting or Facing Allowance: One-time fee to get new brand on retailer's

shelf To compensate to make space

Trade Inventory Financing or Credit Period Sweepstakes, Contests

IMC: Other Action Oriented Communications

Retail Advertising 'Traffic-building' ads Limited-time-only ads

Cooperative Advertising Vertical Horizontal Ingredient-producer co-op

IMC: Other Action Oriented Communications

Reminder Ads: Short Outdoor billboards

Points-of-Purchase Materials Specialty Advertising (Leaflets) In-store Advertising Merchandising Environment Sales Leads in the case of Industrial Marketing

IMC: Public Relations Building Corporation's public image

before: Government Shareholders Employees Community at large

To counteract negative publicity during any crisis

IMC: Public Relations News Stories & Editorial Coverage Events and Sports Marketing Cause Related marketing

Organizing free distribution to the needy Sponsor art shows

Product Placement Movies TV Serials News-hour

IMC: Public Relations Open Contests:

Baking Contest World's Largest Roach New Logo and Brand

Relevance of IMC Different marketing communications elements need

to be tightly coordinated by the concerned agencies Marketing communication materials, particularly ads

should: Achieve targeted communication goals Lead to customer action of sales and repurchase

The growth and fragmentation of consumer media, coupled with increasing segmentation of consumer tastes and preferences, has made IMC relevant

Relevance of IMC The marketers now increasingly have to adopt

complex and multiple communication objectives Budget allocations have to be spread to all

elements of IMC in such a way to avoid 'Media Waste'

Who should do the coordinating? Marketing Managers (large companies) Outside Agencies (smaller companies)

Commitment and appreciation of top management towards IMC are essential