Marketing Review & The Role of IMC in Marketing. Preview What is Marketing? What separates the mind of the marketing professional from the marketing armature?

Marketing Review & The Role of IMC in MarketingMarketing Review & The Role of IMC in Marketing

Preview

• What is Marketing?• What separates the mind of the marketing

professional from the marketing armature?• What is IMC • Ho do we use IMC?• What are some target outcomes for IMC?

What is Marketing?

3

TheCustomer

4

What is Marketing?

Customer

Marketing Activities

Marketing

Yesterday’s – The Four P’s–Product–Price –Place –Promotion

Jerome McCarthy, 1960

Marketing

1990’s – The Four C’s–Consumer wants–Cost to Satisfy–Convenience to Buy–Communication

Bob Lauterborn, 1990

Marketing Process

2011 – The Four B’s –Buyer satisfaction, instantly–Best price (value) anywhere–Buying is simple @ various places–Branding + available, searchable, accurate, complete information

Prof. Buford Barr, Santa Clara University

What Is Marketing?

Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return

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The Mindset of the Professional Marketer

Amateur Marketing Professional Marketing

Focuses on Product ?

Assumes Customer Perceptions

?

Focus on Benchmark Data

?

Focuses on Price ?

Marketing by “Gut Feel”

?

Reactive ?

The Mindset of the Professional Marketer

Amateur Marketing Professional Marketing

Focuses on Product Focuses on Customer

Assumes Customer Perceptions

Understands & Manages

Perceptions

Focus on Benchmark Data

Focus on Market Requirements

Focuses on Price Focuses on Value

Marketing by “Gut Feel”

Performs with Process

Reactive Proactive

----------Any Others?----------

The Marketing Process

Customer Needs, Wants & Demands

Products vs. Wants

• Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want

• Marketing myopia is focusing only on existing wants and losing sight of underlying consumer wants … and demands

Customer Value, Satisfaction & Expectations

Designing a Customer-Driven Marketing Strategy

Marketing Management Orientations


Production concept is the idea that consumers will favor products that are available or highly affordable



Product concept is the idea that consumers will favor products that offer the most quality, performance, and features.



Selling concept is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort


Marketing concept is the idea that achieving

organizational goals depends on knowing the needs and wants of the target markets

and delivering the desired satisfactions

better than competitors do


What companies do this? How?

Societal marketing concept is the idea that a

company should make good marketing decisions

by considering consumers’ wants, the

company’s requirements, consumers’ long-term interests, and society’s

long-run interests

The marketing mix is the set of tools (four Ps) the firm uses to implement its marketing strategy. It includes product, price, promotion, and place.

Integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers.

Preparing an Integrated Marketing Plan and Program

Integrated Marketing Communications PrinciplesIntegrated Marketing Communications Principles

Defining IMC

IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication

programs with consumers, customers, prospects employees and other relevant

external and internal audiences.

IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication

programs with consumers, customers, prospects employees and other relevant

external and internal audiences.

The goal of IMC is to generate short-term financial returns and build long-term

brand value.

The goal of IMC is to generate short-term financial returns and build long-term

brand value.

IMC– A Working Definition

• A process for managing the customer relationships that drives brand value

• A cross-functional process that strategically controls or influences messages sent to customers and prospects and that encourages a data-driven purposeful dialog with them

Duncan’s 5 Strategic IMC Elements

Cross functional design with support from top & senior management

An “outside-in” data base to determine perceptions and market trends

Marketing messages and activities operating in a synergistic manner and following a plan

A widely-defined target audience … customers, prospects, government agencies, special interest groups

A brand based on special relationships with multiple audiences underpinned by 2-way and symmetric communications

Duncan (2001). Using Advertising & Promotion to Build Brand. McGraw-Hill

Contemporary Perspective of IMC

Demand for accountabilityDemand for accountabilityDemand for accountability and measurement of outcomes

Demand for accountability and measurement of outcomes

Recognized as a business processRecognized as a business process

Importance of relevant audienceImportance of relevant audience

Recognized as a business processRecognized as a business process

Multiple relevant audiencesMultiple relevant audiencesIMCIMC

Why Integrated Communications

Increase ReachPeople use different media to get their informationPeople do not see the same media

Not everyone is “tuned in” when your message hits

Increases FrequencyCognitive research says that a person needs to see the

same message 6 times before it is seen onceDifferent people “need” the information at different timesRepeated viewing of the same information builds credibility

and believabilityOvercome Clutter & NoiseMedia Proliferation – The internet, social

media, web 2.0Decision making is a process, not an event

Growing Importance of IMC

• Strategic integration of communications functions– Avoids duplication– Synergy among promotional tools– More efficient and effective marketing

• Rapidly changing environment– Customers– Technology– Media

Rapidly Changing Media Environment

• Increasingly difficult to target audiences & communicate effectively– Customers no longer passive recipients– They demand more than information– From a myriad of sources

The Promotional Mix

AdvertisingAdvertising

Direct MarketingDirect Marketing

Interactive/Internet Marketing

Interactive/Internet Marketing

Sales PromotionSales Promotion

Publicity/PublicRelations

Publicity/PublicRelations

Personal SellingPersonal Selling

Strategic Communication Roles

• Use public relations to build brand• Use print and electronic advertising to

reinforce the brand• Use internal and external events

to amplify the brand• Use collateral (print and electronic) to

substantiate the brand• Use new and social media to build

brand loyalty and advocacy

Traditional MarCopm Approach

Point ofpurchase

Publicrelations

Directmarketing

Interactivemarketing

Specialevents

Packaging

Salespromotion

Directresponse

Mediaadvertising

Publicity

Contemporary IMC Approach

Point ofpurchase

Publicity

Interactivemarketing

Publicrelations

Directmarketing

Specialevents

PackagingSales

promotionDirect

response

MediaAdvertising

IMC Target Outcomes

• Framing preferred brand visions – product benefits or performance

• Strengthening brand value and perception – added value beyond physical attributes

• Enriched brand memory – enriched experiences that positively catalyze future re-purchase intention and behavior

Tsai (2005). “Integrated Marketing as Management of Holistic ConsumerExperience”; Business Horizons 48, Indiana University Kelley School of Business

In Review

• What is Marketing?

• What separates the mind of the marketing professional from the marketing armature?

• What is Integrated Marketing Communications (IMC)?

• How do we use IMC?

• What are some target outcomes for IMC?

Documents

Marketing Review & The Role of IMC in Marketing. Preview What is Marketing? What separates the mind of the marketing professional from the marketing armature?