INTEGRATED MARKETING COMMUNICATIONS

By DR Rajdeep Bakshi
Professor of Marketing

Integrated? Holistic? Arent those just words ad men use to confuse people?

Why IMC?
Will the 30 second spot be killed? Or will well-targeted TV still be effective?

Challenges:

Reach consumer wherever they are Provide consumer with experience

Solution: Integrated Marketing Communications (IMC)

Reasons For Growing Importance of IMC

Shift from media advertising to other forms of marketing communication Movement away from advertising focused- approaches that emphasize mass media Shift in power from manufacturers to retailers Rapid growth of database marketing Demands for greater ad agency accountability Changes in agency compensation Rapid growth of the Internet Increasing importance of branding

Communications Process

IMC is like an orchestra

Musical score guides all the members of the orchestra to play together

IMC plan guides all the members of an organization to work together

Musical score guides all the members of the orchestra to play together

Changes in Marketing Communication Practices

Reduced dependence on mass media advertising. Increased reliance on highly targeted communication methods. Heightened demands on suppliers. Increased efforts to assess communications return on investment.

Integrated Marketing Communications and Promotion

Elements of promotion Advertising strategies Other methods of promotion

Advertising and Integrated marketing Communications

Technology and consumer control are reshaping the communications environment The lines between entertainment and IMC are blurringMadison & Vine Firms use advertising / IMC to build brands Firms of all sizes need and use advertising Advertising is just one of many tools in IBP Advertising / IMC do not guarantee success8 of 10 new products fail People have all sorts of positive and negative perceptions about advertising and promotion

What is IMC

Integrated Marketing Communications is a simple concept. It ensures that all forms of communications and messages are carefully linked together

Linkages in IMC

Channel strategies

Push
Make

Pull
Create

product readily available to buyers Hard sell to

n Distributors n Consumers

demand for products

n When

Heavy

sales promotions

you care to send the very best n Vodafone Wherever you

Push vs Pull

The Meaning of Synergy

The payoff from IMC is that brand managers achieve

The

integration of multiple communication tools and media yield more positive communication results than the tools used individually

Barriers to IMC
Usual resistance to change Rigid organizational structures and power base. Isolation of communications, data Internal power battles. Fixing on a PR consultant IMC can restrict creativity. Time Horizons. Lack expertise in IMC

Benefits of IMC
1. It Drives Brand Differentiation IMC helps make your brand stand out vs. competitors 2. Brings Greater Accountability IMC allows you to track sales and profits based on your brands relationships with consumers 3. Increases the Level of Trust IMC focuses on long-term relationships, not one-time sale 4. Provides Internal Focus IMC focuses on one look, one voice

Integration through IMC

Horizontal Integration Making production, finance, distribution and communications work together and become conscious on what messages to send to customers. Data Integration Integrating different departments like sales, direct mail and advertising by using a marketing information system. Vertical Integration Develop firms marketing and communications objectives to support the higher level corporate objectives and corporate missions. Internal Integration Use internal marketing by keeping all staff informed and motivated about any new developments from new advertisements, to new corporate identities, new service standards, new strategic partners and so on. External Integration Through using external partners by making advertising and PR agencies work close together in order to deliver a single seamless solution - a cohesive message - an integrated message

Integration through in IMC

10 Golden Rules of Integration.

Get Senior Management Support Integrate At Different Levels of management. Ensure the Design Manual or even a Brand Book is used to maintain common visual standards for the use of logos, type faces, colours and so on. Focus on a clear marketing communications strategy. Start with a Zero Budget. Think Customers First. Build Relationships and Brand Values Develop a Good Marketing Information System Share Artwork and Other Media Be prepared to change it all. ('Kaizen)

Marcom Implementation Decisions

Mixing elements Creating messages Selecting media Establishing momentum

MarCom Outcomes

Enhancing Brand Equity

Affecting Behavior

Guiding Structure for IMC Implementation Decisions

Promotion by Decision Stage

Prepurchase
Influence decision, preference Samples

to induce trial

Purchase
Sales promotion Point-of-purchase (POP) displays

Post-purchase
Increase

repurchase propensity

Developing the Advertising Program

Identifying the target audience Specifying advertising objectives Setting the advertising budget Designing the advertisement(s)
Informational/persuasive Fear

appeals Sex appeals Humor appeal

Primary Factors Affecting the Choice of Promotion Mix Components

Promotional Resources, Objectives, and Policies Selection of Promotion Mix Components Characteristics of the Target Market

Characteristics of the Product

Cost and Availability of Promotional Needs

Problem Changes in Consumer Environment

Fragmented media

Hard to reach target audience

Sophisticated consumers

Want more than things

IMC Traditional Definition

The coordination and integration of all marketing

communication tools, avenues, and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost.
Clow & Baack (2007)

Model of IMC

IMC New Definition

The key mission of IMC is to effectively manage the mediated impression of and the direct encounter with the brand, so that synergism ensues among all the interrelated elements of IMC, including research and development, manufacturing, price formulation, channel arrangement, consumer service management, marketing message construction and communication program execution.

IMC is an ongoing process

The Integrated Marketing Communications Plan

The Marketing Communications Situation Analysis A. B. C. D. Company & Product History Product Evaluation Consumer Evaluation Competitive Analysis

Marketing Communications Target Audience Marketing Communications Objectives Marketing Communications Creative Strategy Marketing Communications Mix Marketing Communications Budget Marketing Communications Performance Evaluation Measures

Marketing Communications Planning

IMC Marketing Message

Message must be

Audiences include

Consistent Clear Systematic In all media

Customers Prospects Employees Government agencies

IMC at Kellogg (Using Product)

IMC at Kellogg (Using Package)

IMC at Kellogg (Using Direct Marketing)

IMC at Kellogg (Using Publicity)

IMC at Kellogg (Using Public Relations)

IMC at Kellogg (Using Sales Promotions)

IMC Planning Starts at Zero

Zero-based planning: A process that determines objectives and strategies based on current brand and marketplace conditions

Reasons for IMC Planning

Provides a Rational Process Informs Everyone of Expectations

IMC Planning Reasons

Ensures That the Program Is Integrated Helps Identify Budget Creates a Benchmark for Measuring Results

Which media should we use

To Choose the right medium for a promotional message, we need to consider the following. What do we want our ads to do? Who are we trying to reach? What message do we want to communicate? How much will each medium cost?

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Definition of Integrated Marketing Communications

A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines and combines these disciplines to provide clarity, consistency and maximum communications impact.

Monitor, Evaluate and Control Integrated Marketing Communications Program

Evaluate promotional program results and determine effectiveness Take actions to control and adjust promotional programs

High involvement products

Integrated Marketing Communications

A marketing communications planning concept that recognizes the value of a comprehensive plan. A plan that evaluates the strategic roles of several communications disciplines:

Media advertising Direct marketing Interactive/internet marketing Sales promotion Publicity/Public relations Clarity Consistency Maximum communications impact

Combines the disciplines to provide:

IMC Communication Tools

Integrate and Implement Marketing Communications Strategies

Integrate promotional mix strategies. Create and produce ads. Purchase media time and space Design and implement direct marketing programs Design and implement sales promotion program Design and implement public relations/publicity programs Design and implement interactive/internet marketing programs

Analysis of Communications Process

Analyze response process of customers in the target audience. Analyze best combination of source, message and channel factors for communicating with target audience. Establish communication goals and objectives.

Contact Points to Reach Customers Effectively

Mass media Broadcast - radio/TV Newspapers Magazines Direct Marketing Internet/interactive Brochures, sales literature Publicity/PR Events/sponsorships Local Regional National/international Sales Promotions In-store/POP Product placements in movies and television shows

Developing the IMC Program

Determine objectives and budget Message development

Called Creative Strategy Determine basic appeal Determine main message Communication channels Type of media . . .
n n n

Media strategy

Newspapers/Magazines Radio/Television Outdoor/Specialty

Select specific media Specific papers, magazines, TV programs, radio stations, billboards, or other media

TO REVIEW

Be Aware of the Nature of Integrated Marketing Communications Understand the Role of Promotion in the Marketing Mix Know the Process of Communications Understand the Objectives of Promotion Know the Elements of the Promotion Mix Have an Overview of the Major Methods of Promotion Know Factors That Affect the Choice of Promotional Methods Have Examined the Criticisms and Defenses of Promotion

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