Integrated Marketing Communication Strategy

Dr Mallika Srivastava

Integrated Marketing Communication

IMC is the development of an Integrated Comprehensive Marketing Communication (Promotion) Plan that links the marketing function with the communication function to deliver Effective Marketing Messages capable of (1) informing, (2) convincing and (3) persuading people to buy.

IMC.
IMC makes use of such Promotion Elements as (1) Advertising, (2) Sales Promotion, (3) Public Relations, (4) Publicity, (5) Direct Marketing, (6) Networking, (7) Personal Selling, and other non-conventional elements like (8) On-line communications to develop and deliver clear, consistent, and impact-full communications capable of informing, convincing, and persuading customers to buy.

Integrated Marketing Communications

The Marketing Communications Environment is Changing:
Mass markets have fragmented, causing marketers to shift away from mass marketing

Media fragmentation is increasing as well

Improvements in information technology are facilitating segmentation

Marketing Revolution and Shifting Tides

From
Media Advertising Mass Media Manufacturer Dominance General Focus Low Agency Accountability Traditional Compensation Limited Internet Availability

Toward
Multiple Forms of Communication Specialized Media Retailer Dominance Data Based Marketing Greater Agency Accountability
Performance Based Compensation

Integrated Marketing Communications

The Need for Integrated Marketing Communications
Conflicting messages from different sources or promotional approaches can confuse company or brand images

Widespread Internet Availability

The problem is particularly prevalent when functional specialists handle individual forms of marketing communications independently

Integrated Marketing Communications

Integrated Marketing Communications
The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.

The Communication Process

Communications efforts should be viewed from the perspective of managing customer relationships over time. The communication process begins with an audit of all potential contacts. Effective communication requires knowledge of how communication works.

The Communication Process

Elements in the Communication Process
Sender Message Encoding Decoding

Developing Effective Communication

Step 1: Identifying the Target Audience
Affects decisions related to what, how, when, and where message will be said, as well as who will say it

Media
Receiver Noise

Response
Feedback

Step 2: Determining Communication Objectives

Six buyer readiness stages

Developing Effective Communication

Buyer-Readiness Stages
Awareness Knowledge Liking Preference Conviction Purchase

Developing Effective Communication

Step 3: Designing a Message
AIDA framework guides message design Message content contains appeals or themes designed to produce desired results

Rational appeals Emotional appeals

Love, pride, joy, humor, fear, guilt, shame

Moral appeals

Developing Effective Communication

Step 3: Designing a Message
Message Structure: Key decisions are required with respect to three message structure issues:

Developing Effective Communication

Step 4: Choosing Media
Personal communication channels
Includes face-to-face, phone, mail, and Internet chat communications Word-of-mouth influence is often critical Buzz marketing cultivates opinion leaders

Whether or not to draw a conclusion One-sided vs. two-sided argument Order of argument presentation

Message Format: Design, layout, copy, color, shape, movement, words, sounds, voice, body language, dress, etc.

Nonpersonal communication channels

Includes media, atmosphere, and events

Step 5: Selecting the Message Source

Developing Effective Communication

Highly credible sources are more persuasive A poor spokesperson can tarnish a brand

Promotion Mix
The promotion mix is the specific blend of advertising, public relations, personal selling, and directmarketing tools that the company uses to persuasively communicate customer value and build customer relationships

Step 6: Collecting Feedback

Recognition, recall, and behavioral measures are assessed May suggest changes in product/promotion

Elements of Marketing Communication

Advertising Sales Promotion Public Relations

Advertising
Advertising is any paid form of nonpersonal presentation and promotion of ideas,goods,or services by an identified sponsor.

Personal Selling
Direct Marketing

The 5 Ms of Advertising

Advertising objective
A specific communication task to be accomplished with a specific target audience during a specific period of time.

Advertising Objectives
Informative advertising Persuasive advertising

Advertising strategy
1.Creating the advertising message Message strategy Message execution 2.Selecting advertising media Deciding on reach ,Frequency, and Impact Choosing among major media types Selecting specific media vehicles decide on media timing

Reminder advertising

Sales Promotion
Mass communication technique that offers short-term incentives to encourage purchase or sales of a product or service. Rapid growth in the industry has been achieved because:
Product managers are facing more pressure to increase their current sales, Companies face more competition, Advertising efficiency has declined, Consumers have become more deal oriented.

Consumer - Promotion Tools

Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. ConsumerConsumerPromotion Tools Promotion Entice Consumers to Objectives Advertising Samples
Coupons Cash Refunds Price Packs Premiums Specialties Patronage Patronage Rewards Rewards Contests Sweepstakes Games

Try a New Product Lure Customers Away From Competitors Products Get Consumers to Load Up on a Mature Product Hold & Reward Loyal Customers Consumer Relationship Building

Point-of-Purchase Displays

Business - Promotion Tools

Short-Term Incentives That are Directed to Industrial Customers.
BusinessPromotion Objectives Generate Business Leads
Stimulate Purchases Reward Customers Motivate Salespeople

Trade - Promotion Tools

Short-Term Incentives That are Directed to Retailers and Wholesalers. Trade-Promotion Trade-Promotion Tools Objectives
Persuade Retailers or Wholesalers to Carry a Brand Price-Offs Allowances Free Goods Buy-Back Guarantees Contests Discounts Premiums Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers

Business-Promotion Tools
Trade Shows Sales Contests

Displays Push Money Specialty Advertising Items

Developing the Sales Promotion Program

Decide on the Size of the Incentive Set Conditions for Participation Determine How to Promote and Distribute the Promotion Program Determine the Length of the Program Evaluate the Program

Building good relations with the companys various publics by obtaining favorable publicity, building up a good corporate image and handling or heading off unfavorable rumors, stories and events. Major functions are:
Press Relations or Press Agency Product Publicity Public Affairs Lobbying Investor Relations Development

Public Relations

Major Public Relations Tools Major Public Relations Decisions

Setting Public Relations Objectives Choosing the Public Relations Messages and Vehicles Implementing the Public Relations Plan Audiovisual Materials Written Materials Special Events Public Service Activities Corporate Identity Materials Web Site News

Speeches

Evaluating Public Relations Results

Advertising Versus Publicity

Factor Control Credibility Reach Frequency Cost Flexibility Timing Advertising Great Lower Measurable Schedulable High/Specific High Specifiable Publicity Little Higher Undetermined Uncontrollable Low/Unspecified Low Tentative

Elements of Marketing Communication

Advertising Sales Promotion Public Relations Personal Selling Direct Marketing
Most effective tool for building buyers preferences, convictions, and actions Personal interaction allows for feedback and adjustments Relationship-oriented Buyers are more attentive Sales force represents a longterm commitment Most expensive of the promotional tools

Elements of Marketing Communication

Advertising Sales Promotion
Many forms: Telephone marketing, direct mail, online marketing, etc. Four distinctive characteristics:
Nonpublic Immediate Customized Interactive

Direct Marketing
Direct Mail Internet Sales Direct Response Advertising

Direct Marketing
Shopping Channels Catalogs Cataloging Telemarketing

Public Relations
Personal Selling Direct Marketing

Well-suited to highly targeted marketing efforts

Using the Internet as an IMC Tool

Promotion Mix Budget

Affordable budget method sets the budget at an affordable level Percentageofsales method sets the budget at a certain percentage of current or forecasted sales or unit sales price

The Internet

Educates or Informs Customers

A Persuasive Advertising Medium

A Sales Tool or an Actual Sales Vehicle

Competitiveparity method sets the budget to match competitor outlays Objectiveandtask method sets the budget based on what the firm wants to accomplish with promotion

Obtains Customer Database Information

Communicates and Interacts With Buyers

Provides Customer Service and Support

Builds and Maintains Customer Relationships

Integrated Marketing Communications Planning Model

Promotion Mix Strategies

Push strategy: trade promotions and personal selling efforts push the product through the distribution channels.
Producer marketing activities to Retailers and Wholesalers who resell to Consumers

Review of Marketing Plan Promotional Program Situation Analysis Analysis of the Communications Process Budget Determination Develop Integrated Marketing Communications Programs Advertising Advertising Objectives Message Strategy Sales Promotion Sales Promotion Objectives Sales Promotion Strategy PR/ Publicity PR/ Publicity Objectives PR/ Publicity Strategy Personal Selling Personal Selling Objectives Personal Selling Strategy Direct Marketing Direct Marketing Objectives Direct Marketing Strategy Internet/ Interactive Internet/ Interactive Objectives Internet/ Interactive Strategy

Personal selling, trade promotion by producer and personal selling, advertising and sales promotion by wholesaler/retailer

Pull strategy: producers use advertising and consumer sales promotions to generate strong consumer demand for products.
Producer marketing activities directed at consumer to create demand from retailers and wholesalers that then creates demand from producer.

Consumer advertising, sales promotion

Integration & Implementation of Marketing Communications Strategies Monitor, Evaluate & Control Promotional Program