imc - intro - copy

7/31/2019 IMC - Intro - Copy

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An Introduction toIntegrated MarketingCommunications

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


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2

Integrated MarketingCommunications

A method of carefully

coordinating all

promotional activities toproduce a consistent,

unified message that is

customer focused.

7


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3

IMC Popularity Growth7

Proliferation of thousands of mediachoices

Fragmentation of the mass market

Slash of advertising spending in favor

of promotional techniques


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How widespread is IMC?

In the manufacturing sector:

29.2% of all companies in this area have an IMCprogram

The category with the lowest IMC penetration is

furniture & fixtures at 4.9%

Highest is computer hardware at 60.2%, followed byinstrument & related products, 59.4%


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What are marketers

spending?In Business Marketings OutFront survey,

we found that: B-to-b marcomm spending: $73 billion Overall spending was up 14.5%

Online spending grew 143%

On average, companies devoted 1.2% of total

annual sales to b-to-b marcomm


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Breaking it down

Advertising: $17.7B

Sales Promo. : $13.6B Trade shows: $12.6B

Sales force management:$8B*

*excludes compensation &commission

Direct mktg.: $5.7B Online: $4.2B Market rsrch.: $3B Premiums/incentives: $2.7B


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IMCAudience Contact Points

MarketingCommunications

Audience

Point ofPurchase

Publicity PublicRelations

Packaging

Direct

Response

SalesPromotion

EventsOutdoorBroadcast

MediaPrint Media

Direct Mail

Internet/

InteractiveMedia



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IMC Principles Extend Worldwide

+ 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


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Point ofPurchase

Publicity

PublicRelations

DirectMarketing

InteractiveMarketing

SpecialEvents

Packaging

SalesPromotion

DirectResponse

Traditional Approach to MarketingCommunications

MediaAdver-tising



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Contemporary IMC Approach

Point ofPurchase

Publicity

InteractiveMarketing

PublicRelations

DirectMarketing

SpecialEvents

PackagingSales

PromotionDirect

Response

Media

Adver-tising



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Traditional Compensation Performance Based CompensationTraditional 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

Marketing Revolution and Shifting Tides

From Toward



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The Evolution of IMC integrated marketing

communications (IMC) new advertising

orchestration

seamless communication all sources of brands or company

contact


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Reason for the Growing

Importance of IMC A shifting of marketing from media

advertising to other forms of promotion,

particularly consumer and trade-oriented sales promotions.


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A movement away from relying onadvertising-focused approaches, whichemphasize mass media such as network

television and national magazines, to solvecommunication problems.

A shift in marketplace power frommanufacturers to retailers.


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The rapid growth and development of

database marketing. Demands for greater accountability from

advertising agencies and changes in the wayagencies are compensated.

The rapid growth of the Internet, which ischanging the very nature of how companiesdo business and the ways they communicate

and interact with consumers.


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Dell Focuses on Building a RelationshipWith Customers


C d d k


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Coordinated Marketing MixElements Build Image



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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



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Primary vs. SelectiveDemand AdvertisingPrimary vs. SelectiveDemand 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



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An Example of B-to-B Advertising



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DirectResponse

Advertising

DirectResponse

Advertising

DirectMail

Cataloging

Telemarketing

InternetSales

Shopping

Channels

DirectMail

Telemarketing

Catalogs

Shopping

Channels

Direct Marketing is Part of IMC

DirectMarketing



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Builds andMaintainsCustomer

Relationships

ObtainsCustomerDatabase

Information

Communicatesand InteractsWith Buyers

ProvidesCustomer

Service andSupport

Educates orInforms

Customers

A PersuasiveAdvertising

Medium

A Sales Toolor an ActualSales Vehicle

ObtainsCustomerDatabase

Information

Communicatesand InteractsWith Buyers

ProvidesCustomer

Service andSupport

Educates orInforms

Customers

A PersuasiveAdvertising

Medium

A Sales Toolor an ActualSales Vehicle

Using the Internet as an IMC Tool

TheInternet


Ai li E C t t D


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Airlines Encourages Customers to DoIt All Online



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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

PremiumsPremiums

SamplesSamples

CouponsCoupons

Coop

Advertising

Coop

Advertising

TradeShowsTradeShows

TrainingProgramsTrainingPrograms

POP DisplaysPOP Displays

TradeAllowances



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Introduce NewProducts

Get ExistingCustomers to

Buy More

Attract New

Customers

Maintain Sales InOff Season

Increase RetailInventories

Tie InAdvertising &

Personal Selling

EnhancePersonal Selling

Combat

Competition

Introduce NewProducts

Get ExistingCustomers to

Buy More

Attract New

Customers

Maintain Sales InOff Season

Increase RetailInventories

Tie InAdvertising &

Personal Selling

EnhancePersonal Selling

Various Uses of Sales Promotion

SalesPromotion



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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


ersona versus mass


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ersona versus massmarketing communications

Personal communications Mass communications

Reach of big audience

Speed Slow (selling), faster (DM Fast

Costs/reached person High Low

Influence on individual

Attention value High Low

Selective perception Relatively lower High

Comprehension High Moderate-low

Personal communicationsMass communications

Feedback

Direction Two-way One-way

Speed of feedback High Low

Measuring effectiveness Accurate Difficult


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InterviewsInterviews

FeatureArticles

SpecialEvents

Press

Conferences

NewsReleases

FeatureArticles

SpecialEvents

NewsReleases

Publicity Vehicles

PublicityVehicles



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CorporateAdvertisingCorporate

AdvertisingCause-related

MarketingCause-related

Marketing

PublicityVehicles

Community

Activities

Public Affairs

Activities

SpecialPublications

Special Event

Sponsorship

PublicityVehicles

Community

Activities

Public Affairs

Activities

SpecialPublications

Public Relations Tools


DuPont Uses Advertising to Enhance


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DuPont Uses Advertising to EnhanceIts Corporate Image



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Integrated Marketing Communications Planning Model

Promotional Program Situation AnalysisAnalysis of the Communications Process

Budget Determination

Develop Integrated Marketing Communications Programs

Review of Marketing Plan

AdvertisingSales

PromotionPR/

PublicityPersonalSelling

DirectMarketing

AdvertisingObjectives

SalesPromotionObjectives

PR/Publicity

Objectives

PersonalSelling

Objectives

DirectMarketingObjectives

MessageStrategy

SalesPromotionStrategy

PR/PublicityStrategy

PersonalSelling

Strategy

DirectMarketingStrategy

Integration & Implementation of Marketing Communications Strategies

Monitor, Evaluate & Control Promotional Program

Internet/Interactive

Internet/InteractiveObjectives

Internet/InteractiveStrategy


Th M k i Pl


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1. A detailed situation analysis

2. Specific marketing objectives

3. A marketing strategy and program

4. A program for implementing the strategy

5. A process for monitoring and evaluating performance

1. A detailed situation analysis

3. A marketing strategy and program

4. A program for implementing the strategy

2. Specific marketing objectives

The Marketing Plan



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Models of Marketing

Communication The Black box model based on stimulus response

theory. The AIDA model from the early development phase

was explained in detail. The model assumes that a

customer follows Attention - Interest - Desire -Action - Satisfaction sequence.

The third model, Lavidge and Steiner, assumesthat a customer goes through six stages beforemaking a purchase. The stages in sequentialmanner are: Awareness - Knowledge - Liking -Preference - Conviction - Purchase.


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Chapter 14 Version 6e 34

The AIDA Concept

Attention

Interest

Desire

Action

5


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Contd:-

The DAGMAR model suggests the stages,Awareness - Comprehension - Conviction -Action.

The Joyce model is based on theinterrelations between advertising,purchasing and attitudes.

The Heightened appreciation model suggeststhat advertising strategy should be based on

distinct and important attribute of the brand. The FCB model divides buying behaviourusing two parameters: high involvement andlow involvement versus thinking and feeling.


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Buyer Behaviour &

InvolvementCriteria High

InvolvementLowInvolvement

Difference inBrands

COMPLEX VARIETYSEEKING

FewDifference inBrands

DISSONANCE REDUCING

HABITUALBUYING


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Ethical BehaviourEthics are moral principles and values that govern the actions and decisionsof an individual or group. In the marketing context, ethics is the moral

evaluation of marketing activities and decisions as right or wrong.


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Individual Factors

Organisational Factors

Perceived Opportunity

Understanding Ethical Conduct

Understanding Ethical Behaviour in Marketing Decisions

Individual

Factors

PerceivedOpportunity

OrganisationalFactors

Resulting Ethical orUnethical Behaviour


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When marketing managers face ethically challenging situations and are unable to

resolve them all alone, they experience ethical conflict, though they make

decisions in their everyday lives based on their personal concepts of right or

wrong.

Individual Factors


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Organisational Factors

Corporate culture refers to a set of values, beliefs, goals, norms, etc., shared by

its members and expressed in every day working through work habits, and other

activities.


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Perceived Opportunity

Opportunity refers to a set of conditions perceived as favourable that limit

barriers or provide rewards. Most managers in marketing do not deliberately

take advantage of every opportunity for unethical conduct in their companies.


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Marketing Related Ethical IssuesEthical issue refers to some situation, problem, or opportunity that can berecognised and requires a person or organisation to select from among

different actions that must be evaluated as right or wrong, or ethical or

unethical.


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Pyramid of Corporate Social Responsibility

Philanthropic

(be a good

corporate citizen)

Contribute to improve the

quality of community life.

Ethical Conduct(do the right thing, avoid harm)

Obligation to do what is right,

just, and fair, and avoid harm.

Legal

(obey the laws)

Play by the rules of game.

Economic

(earn profits)

Make profitable use of resources.


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Social Responsibility Issues Consumer Movement (Consumerism)

Ecological Concerns

Green Marketing


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Social Responsibility Issues

Indian Scene Consumer Protection Act, 1986

Consumer Forums

Competition Policy

Corporate Responsibility Issues


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Ethical Issues

The main ethical issues in advertising are puffery, badtaste, stereotyping, targeting children, promotingunhealthy products and subliminal advertising. Pufferyrefers to making exaggerated claims about the product,which cannot be proved. Advertisements are said to bein bad taste when they offend people. Stereotypingrefers to portraying men or women in a particular role,with a negative image. Advertisements targeted atchildren are considered unethical as children are notcapable of processing the given information.Consumption of unhealthy products like fast food and

tobacco products lead to bad health. So promoting suchproducts is not good. In subliminal advertising, theviewer is exposed to product messages and pictures insuch a way that he is not aware of watching them


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Social Responsibility and

Marketing Ethics

The issues of marketing practices and ethics and social Responsibility are considered tobe

contradictions almost an oxymoron to most people. Marketing professionals have facedcriticism

both in USA and India about their activities which harm consumers, like

deceptive practices, high pressure selling, high prices, shoddy or unsafe

products, planned obsolescence, and poor service to disadvantagedconsumers.

Deceptive practices fall into three groups; pricing, promotion, and packaging.

Deceptive pricing: Announcing super discount offers and attracting customers through

false advertising, subsequent visits prove that merchandise attracting maximum discounts

is out of stock and the retail prices are kept unethically higher before extending highdiscounts.

Deceptive promotion: Luring customers to the store with promises which are

unreasonable and then setting new terms to the scheme once purchase is made. Misrepresenting the products features or performance to misguide consumers.

Deceptive packaging: Exaggerating package contents through subtle design, usingmisleading labelling, or describing size in misleading terms.

Since profitable companies value long term customer relationships which are based ontrust and value, using deceptive practices can prove to be very costly in the long run.

imc - intro - copy

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