Integrated Marketing CommunicationWeek 01

W. Rofianto, ST, MSi

Reference & Evaluation

Assignment 40%MidTerm Exam 25%Final Project 35%

http://rofianto.wordpress.com/imc/

rofi_anto@yahoo.com

What is Marketing?

Marketing is the activity, set of institutions, and processes

for creating, communicating, delivering, and exchanging

offerings that have value for customers, clients, partners,

and society at large.

(American Marketing Association’s official definition of marketing

released August 2007)

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.

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

Coordinated Marketing Mix Elements Build Image

Coordinated Marketing Mix Elements Build Image

Traditional compensation Performance-based compensation Traditional compensation Performance-based compensation

Media advertising Multiple forms of communication

Mass media Specialized media

Manufacturer dominance Retailer dominance

General focus Data-based marketing

Low agency accountability Greater agency accountability

Limited Internet availability Widespread Internet availability

Media advertising Multiple forms of communication

Mass media Specialized media

Manufacturer dominance Retailer dominance

General focus Data-based marketing

Low agency accountability Greater agency accountability

The Growing Importance of IMC

From Toward

IMC and Branding

2005 Brand Value(Billions of Dollars)

1. Coca-Cola $67.52

2. Microsoft $59.94

3. IBM $53.38

4. GE $46.99

5. Intel $35.59

6. Nokia $26.45

7. Disney $26.44

8. McDonald’s $26.01

9. Marlboro $24.84

10. Mercedes $21.19

IMC plays a major role in the

process of developing and

sustaining brand identity and

equity.

Advertising

Direct Marketing

Interactive/Internet Marketing

Sales Promotion

Publicity/PublicRelations

Personal Selling

Advertising

Direct Marketing

Interactive/Internet Marketing

Sales Promotion

Publicity/PublicRelations

Basic Elements of the Promotional Mix

Primary vs. Selective Demand AdvertisingPrimary vs. Selective Demand Advertising

Business-to-Business Advertising

Organizations

National Advertising

Retail/Local Advertising

Professional Advertising

Trade Advertising

National Advertising

Retail/Local Advertising

Business-to-Business Advertising

Professional Advertising

Classifications of Advertising

Consumers

DirectResponseAdvertising

DirectResponse

Advertising

Direct

Mail

Catalogs

Telemarketing

Internet

Sales

Shopping

Channels

Direct

Mail

Telemarketing

Catalogs

Shopping

Channels

Direct Marketing is Part of IMC

DirectMarketing

Builds and maintains customer

relationships

Obtains customer database

information

Communicates and interacts with buyers

Provides customer

service and support

Educates or informs

customers

A persuasive advertising

medium

A sales tool or an actual sales

vehicle

Obtains customer database

information

Communicates and interacts with buyers

Provides customer

service and support

Educates or informs

customers

A persuasive advertising

medium

A sales tool or an actual sales

vehicle

Using the Internet as an IMC Tool

The

Internet

Consumer-oriented[For end-users]

Trade-oriented[For resellers]

Sales Promotion Tools

EventsEvents

Loyalty ProgramsLoyalty Programs

Bonus PacksBonus Packs

Refunds/RebatesRefunds/Rebates

Contests/SweepstakesContests/Sweepstakes

SamplesSamples

CouponsCoupons

CoopAdvertising

CoopAdvertising

TradeShowsTradeShows

TrainingProgramsTraining

Programs

POP DisplaysPOP Displays

TradeAllowances

Introduce new products

Get existing customers to buy

more

Attract new

customers

Maintain sales in

off season

Increase retail

inventories

Tie in advertising & personal selling

Enhance personal

selling

Combat

competition

Introduce new products

Get existing customers to buy

more

Attract new

customers

Maintain sales in

off season

Increase retail

inventories

Tie in advertising & personal selling

Enhance personal

selling

Various Uses of Sales Promotion

SalesPromotion

Advertising Versus Publicity

Advertising Publicity

Tentative

Low

Low/Unspecified

Uncontrollable

Great

Lower

Measurable

Schedulable

High/Specific

High

Specifiable

Undetermined

Higher

Little

Factor

Control

Credibility

Reach

Frequency

Cost

Flexibility

Timing

Corporate AdvertisingCorporate

Advertising Cause-related

MarketingCause-related

Marketing

Publicity

Vehicles

Community

Activities

Public Affairs

Activities

Special

Publications

Special Event

Sponsorship

Publicity

Vehicles

Community

Activities

Public Affairs

Activities

Special

Publications

Public Relations Tools

Product

decisions

Pricing

decisions

Channel-of-

distribution

decisions

Product

decisions

Pricing

decisions

Channel-of-

distribution

decisions

Opportunity

analysis

Competitive

analysis

Target

marketing

Identifying

markets

Market

segmentation

Selecting a

target market

Positioningthroughmarketingstrategies

Promotional

decisions

• Advertising

• Direct marketing

• Interactive marketing

• Sales promotion

• Publicity and public relations

• Personal selling

Ultimate

consumer

• Consumers

• Businesses

Promotion

to final

buyer

Opportunity

analysis

Competitive

analysis

Target

marketing

Identifying

markets

Market

segmentation

Selecting a

target market

Positioningthroughmarketingstrategies

Promotional

decisions

• Advertising

• Direct marketing

• Interactive marketing

• Sales promotion

• Publicity and public relations

• Personal selling

Ultimate

consumer

• Consumers

• Businesses

Marketing and Promotions Process Model

Resellers

Purchase

Positioning through marketing strategies

Selecting market to target

Determining market segmentation

Identify markets with unfulfilled needs

Selecting market to target

Determining market segmentation

Identify markets with unfulfilled needs

The Target Marketing Process

By Attributes and Benefits?

By Price or Quality?

By Use or Application?

By Product Class?

By Product User?

By Competitor?

By Cultural Symbols?

By Attributes and Benefits?

By Price or Quality?

By Use or Application?

By Product Class?

By Product User?

By Competitor?

Positioning Strategies

How should

we position?

Cultural Symbols Can Differentiate Brands

Branding and Packaging Work Closely Together

Product Decisions

BRANDING

Brand name commun-icates attributes and meaning

Advertising creates and maintains brand equity

Packaging has become increasingly important

It’s often customers’ first exposure to product

PACKAGINGBRANDING

A Package Is More than a Container

Push Policy

Producer

Wholesaler

Retailer

Consumer

Producer

Wholesaler

Retailer

Consumer

Push Versus Pull

Information Flow

Pull Policy

Producer

Wholesaler

Retailer

Consumer

Point of sale displays, racks, stands

Trade deals, special displays

Dealer premiums, prizes, gifts

Cooperative advertising deals

Advertising materials, mats, inserts

Push money or “spiffs"

Collaterals, catalogs, manuals

Point of sale displays, racks, stands

Trade deals, special displays

Dealer premiums, prizes, gifts

Cooperative advertising deals

Advertising materials, mats, inserts

Push money

Collaterals, catalogs, manuals

Promotion to Push Goods Through Channels

PUSH

Company conventions, meetings

Sampling, free trial

Cents-off promotions

Cents-off coupons

Combination offers

Premiums or gifts

Contests, sweepstakes

Point-of-purchasePoint-of-purchase

Contests, sweepstakes

Premiums or gifts

Combination offers

Cents-off coupons

Cents-off promotions

Sampling, free trial

Promotion to Pull Goods Through Channels

PULL

Trading stamps