integrated marketing communication by manish badhiye

Integrated Marketing Communication

4p’s of marketing mix

Product Price Place Promotion

Marketing communication is focused on promotion mix

Promotion compasses all the tools in the marketing mix whose major role is persuasive communication

What is communication?

Transmitting, receiving & processing information.

Communication occurs when the message that was sent reaches its destination in a form that is understood by the intended audience

The communication Process

Elements in the communication process

Sender

Encoding

Decoding

Receiver

Response

Feedback

Noise

Message

Media

Communication in marketing

Sender are the manufacturing or marketing companies

Intended audience is mainly customer internal or external

The idea is to convey the positive things about the product, brand or company

Intentions may be different like image, sale, revenue, profit or just to get attention

Encoding – putting thoughts into symbolic form Message – Set of symbols Media – communication channel Decoding – The process by which receiver

assign meaning to the symbol encoded by the sender

Receiver – The party receiving the message sent by another party

Response – The reaction of the receiver after being exposed to the message.

Feedback – The part of the receivers response communicated back to the sender.

Noise – The unplanned static or distortion during the communication process.

Senders field Receivers Field

of experience of experience

Sender Encoding

Media

Decoding Receiver

Noise

ResponseFeedback

Message

promotion

Promotion is the coordination of all seller initiated efforts to set up channels of information & persuasion in order to sell goods & services or promote an idea

Promotion compasses all the tools in the marketing mix whose major role is persuasive communication

Elements of Promotion Mix

Promotion Mix

Advertising Direct marketingInteractive /

Internet marketing

Sales promotion Personal selling

Publicity/ public relation

AdvertisingAdvertising

Direct MarketingDirect Marketing

Interactive/Internet MarketingInteractive/Internet Marketing

Sales PromotionSales Promotion

Publicity/PublicRelationsPublicity/PublicRelations

AdvertisingAdvertising

Personal SellingPersonal Selling

Direct MarketingDirect Marketing

Interactive/Internet MarketingInteractive/Internet Marketing

Sales PromotionSales Promotion

Publicity/PublicRelationsPublicity/PublicRelations

Basic Elements of the Promotional Mix

Communication or promotion tools

Advertising Sales promotion Public relations Personal selling Direct marketing

Interactive / internet marketing

Point ofpurchase

Publicity

Publicrelations

Directmarketing

Interactivemarketing

Specialevents

Packaging

Salespromotion

Directresponse

Traditional Approach to Marketing Communications

MediaAdver-tising

Contemporary IMC Approach

Point ofpurchase

Publicity

Interactivemarketing

Publicrelations

Directmarketing

Specialevents

PackagingSalespromotion

Directresponse

MediaAdver-tising

Advertising

Paid form- occasional exception PSA Nonpersonal - involves mass media

generally no opportunity for

immediate feedback ( except

direct response ad) Used to create brand images and symbolic

appeals for a company or brand

Sales promotion

Short term incentives to encourage the purchase or sale of product or service.

Discounts Coupons Displays Demonstrations

Two Types- Consumer-oriented – targeted to the

ultimate user of a product /service Trade-oriented - targeted towards

marketing intermediaries

Public Relation

Building good relations with the companies various publics by obtaining favorable publicity, building up good corporate image, and handling or heading off unfavorable rumors, stories, and events.

Press releases Sponsorships Special events Web pages

Personal Selling

Personal presentation by the firms sales force for the purpose of making sales and building customer relationship

Sales presentations Trade shows Incentive programs

Direct Marketing

Direct connection with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

through the use of direct mail, telephone, direct-response television, e-mail, and the Internet to communicate directly with specific consumers

Catalog Telemarketing Kiosks

Interactive / internet marketing

Steps in Developing Effective Marketing Communication

Identify the target audience

Determine the communication objectives

Design the message

Choose the media

Select the message source

Collecting feedback

Determine the communication objectives

IMC

The concept under which a company carefully integrates and coordinates its many promotion tools, sources, avenues to deliver a clear, consistent, and compelling message about the organization and its products.

What is Integrated Marketing Communication

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

At its most basic level, Integrated Marketing Communications, or IMC, means integrating all the promotional tools, so that they work together in harmony.

Reasons for the Growing Importance of IMC

Media advertisingMedia advertising Multiple forms of communicationMultiple forms of communication

Mass mediaMass media Specialized mediaSpecialized media

Manufacturer dominanceManufacturer dominance Retailer dominanceRetailer dominance

Concept Driven AppealsConcept Driven Appeals Data-driven marketingData-driven marketing

Low agency accountabilityLow agency accountability Greater agency accountabilityGreater agency accountability

Traditional compensationTraditional compensation Performance-based compensation Performance-based compensation

Limited Internet availabilityLimited Internet availability Widespread Internet availabilityWidespread Internet availability

Reasons for the Growing Importance of IMC

Shifting of marketing dollars from media advertising to other forms of promotion , particularly consumer-and trade-oriented sales promotions.

A movement away from relying on advertising-focused approaches, which emphasize mass media such as network television and national magazines, to solve communication problems

A shift in marketplace power from manufacturers to retailers.

Rapid growth and development of database marketing. Demand for a greater accountability from advertising

agencies and the changes in the way agencies are compensated.

The rapid growth of the internet, which is changing the very nature of how companies do business and the way they communicate and interact with consumers.

IMC Audience Contact Tools

Broadcast media (TV/radio)

Broadcast media (TV/radio)

Print media (newspapers,

magazines)

Print media (newspapers,

magazines)

Public Relations/publicity

Public Relations/publicity

Internet/interactive

Internet/interactive

Directmarketing

Directmarketing

Sales Promotion

Sales Promotion

Product placements (TV and movies)

Product placements (TV and movies)

Events and sponsorship

Events and sponsorship

Word-of-mouth

Word-of-mouth

Point-of-purchase (displays, packaging)

Point-of-purchase (displays, packaging)

Personal selling

Personal selling

Out-of-home media Out-of-home media

Target AudienceTarget Audience

Need for Integrated Marketing Communications

Conflicting messages from different sources or promotional approaches can confuse the customers about company or brand images

Increasing no of promotional tools & trends if not used to complement each other, the message is not effective creating chaos in customer’s mind

Benefits

increases profits through increased effectiveness

create competitive advantage

boost sales by stretching messages across several communications tools to create more avenues for customers to become aware, aroused, and ultimately, to make a purchase and profits, while saving money, time and stress.

Creates credibility & reduces risk in the mind of the buyer

Continued…

nurture long term relationships with customers

Factors affecting IMC programs In developing an IMC strategy, a company combines

the promotional mix elements, balancing the strengths & weaknesses of each.

Companies considers many factors in developing their IMC programs including

Type of product Target market Buyer decision process PLC stage Distribution channels

What is an IMC plan?

A framework for developing, implementing & controlling the organization's integrated marketing communication programs & activities

IMC Plan

It must : - Evaluate the current situation Determine the role of each promotion mix

element Develop the strategies for each promotion mix

element Plan for their implementation Consider how to evaluate results

IMC planning model

Review of mktg plan

Analysis of promotional program situation

Analysis of communication process

Budget determination

Develop IMC program

Direct Mktg Interactive/Internet mktg

Sales promotionPR/PublicityAdvtising PS

Cntd..

Direct Mktg internet mktg S p PRAdvtising PS

objectives objectives obj obj obj obj

strategy strategy strategy strategy strategy strategy

Msg &media strategy &

tactics

Msg &media strategy &

tactics

Msg &media strategy &

tactics

Msg &media strategy &

tactics

Msg &media strategy & tactics

Sales messageStrategy & sales

tactics

Integrate & implement mktg communication strategies

Monitor, evaluate & control IMC program

Review of marketing plan- it is a written document that describes the overall mkting strategy & programs developed for an organization

Examine overall marketing plan and objectives Role of advertising and promotion Competitive analysis Asses environmental influences Analysis of promotional program situation Internal analysis External analysis Analysis of communications process Analyze receivers response process Analyze source, message, channel factors Establish communications goals and objectivesBudget Determination Set tentative marketing communications budget Allocate tentative budget

Develop integrated marketing communications program

Integrate and implement Marketing communication Strategies

Integrate promotion mix strategies

create and produce ads

Purchase media time , space, etc.

design & implement direct marketing programs

design & distribute sales promotion materials

design & implement public relation / publicity programs

design & implement interactive / internet marketing

programs

Monitor , Evaluate, and control IMC program.

Evaluate promotional program results/ effectiveness

Take measure to control and adjust promotional strategies

Marketing and promotion process model