module i imc slides ver 2.1
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INTEGRATED MARKETINGCOMMUNICATION
MODULE -1
INTRODUCTION TO IMC
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Topics to be covered under the module
Meaning of IMC.
Role of IMC in Marketing process
Traditional Communication v/s IMC.
Introduction to IMC tools
Advertising, sales promotion, publicity,public relations, and event sponsorship;
The role of advertising agencies and other
marketing organizations providingmarketing services
Perspective on consumer behavior.
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As Per AMA for over two decades:
The process of planning and executing the
conception, pricing, promotion, and distribution of
ideas, goods, and services to create exchanges that
satisfy individual and organizational objectives.
Revised Definition of Marketing In 2007 the AMA
adopted a revised definition of marketing:
Marketing is the activity, set of institutions, and
processes for creating, communicating, and
delivering exchange offerings that have value for
customers, clients, partners and society at large.
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What is Customer Value?
Costs include the money paid for the product orservice as well as other factors such as acquiring
information, making the purchase, learning how to
use a product/service, maintaining, and disposing
of it.
Value is the customers perception of all of
the benefits of a product or service weighed
against all the costs of acquiring and using it.
Benefits can be functional, experiential or
psychological.
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What is IMC??
Don Schultz of NorthwesternUniversity says :
IMC is a strategic business process
used to plan, develop, execute andevaluate coordinated, measurable,brand communications programsover time with consumers,customers, prospects, employees,
associates and other targetedrelevant external and internalaudiences.
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Shiftfromo
ldschoo
ltonewmedia The value of strategically integrating
the various communication
functions rather than having themoperate autonomously.
How to target consumers through
telemarketing, direct mail and direct
response advertising due to growthand development of database
marketing
Demands for greater accountability
from advertising agencies andcompensation force agencies to
consider a variety of communication
tools and less expensive alternatives
to mass media advertising.
Marketers now know
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Continued.
The rapid growth of the
Internet changing the nature of
how companies do business
and how they communicate
and interact with consumers.
Shift from only advertising-focused approaches based on
mass media such as television and national magazines, to
solve communication problems and more attention to
smaller, targeted media alternatives.
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Top Companies by Brand Value
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Top Companies by Brand Value
Cont
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Advertising
Direct Marketing
Interactive/
InternetMarketing
Sales Promotion
Publicity /PublicRelations
Personal Selling
Promotion is defined as thecoordination of all seller-
initiated efforts to set up
channels of information and
persuasion to sell goods and
services or promote an idea.
The promotional mix is defined
as the basic tools or elements
that are used to accomplish
organizations objectives.
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Advertising
Any paid form of non personal communication about an organization,
product, service, or idea by an identified sponsor.
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Advertising
DisadvantagesThe cost of producing and placing ads
can be very high, particularly
television commercials
It can be difficult to determine the
effectiveness of advertising
There are credibility and image
problems associated with advertising
The vast number of ads has created
clutter problems and consumers arenot paying attention to much of the
advertising they see and/or hear
Advantages
Cost-effective way for communicating,
particularly with large audiences.
Differentiating similar products and
services and a valuable tool for creating
and maintaining brand equity
Ability to strike responsive chord with
audience through creative advertising
Opportunity to leverage popularadvertising campaigns into successful
IMC programs ability to control the
message
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National Advertisingdone by large companies
on a nationwide basis. Adsfor well-known brands and
companies shown ontelevision
Retail / Local
Advertsingdone by retail and localmerchants encouragingconsumers to shop at aspecific store, use a localservice, or patronize a
particular establishment
Primary v/s Selective
Advertisingprimary demandadvertising isdesigned to stimulate demandfor the general product class or
industry. Selective-demandfocuses on creating demand fora specific company and/or its
brands.
The Most Common Forms of Advertising
1) Directed towards Consumers and 2) Directed towards Businesses
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Directed towards Businesses
Business-to-Business
Advertising: advertising that
targets individuals who buyor influence the purchase of
industrial goods or services fortheir companies.
Professionaladvertising
advertising targeted toprofessionals such doctors,
lawyers, engineers, andthe like.
Trade advertising
targeted to marketingchannel members such aswholesalers, distributors,
and retailers.
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Direct Marketing
It is a system of marketing
by which organizations
communicate directly with
target customers to
generate a response and/ora transaction.
Direct marketing has not
traditionally been
considered an element ofthe promotional mix.
DirectMarketing
DirectMail
Direct
Response
Advertising
Tele
marketing
Catalogues
Shopping
Channels
Internet
Sales
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Advantages:
Changes in society (two-incomehouseholds, greater use of credit)have made consumers morereceptive to the convenience ofdirect-marketed products
Allows a company to be veryselective and target its marketingcommunications to specificcustomer segments. Messages canbe customized to fit the needs ofspecific market segments
Effectiveness of direct-marketingefforts are easier to assess thanother forms of promotion
Consumers and businesses are
being bombarded with unsolicited
mail and phone calls which makes
them less receptive to direct-
marketing
Direct marketing has image
problems. Problems with clutter
as there are too many direct-
marketing messages competing for
consumers attention
Disadvantages:
Direct Marketing
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TheInternet
Educates or informs
customers
Obtains customer databaseinformation
Communicates andinteracts with buyers
A persuasiveadvertising medium
A sales tool or anactual sales vehicle
Provides customer serviceand support
Builds and maintainscustomer relationships
Interactive/Internet Marketing
Interactive media allows back-and-forth flow of information whereby
users can participate in and modify the content of the information
they receive in real time.
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Advantages
The Internet can be used for avariety of IMC functions includingadvertising, direct marketing, salespromotion, public relations andselling
Messages can be tailored to appealto the specific interests and needs ofthe target audience
The interactive nature of theInternet leads to a higher degree ofcustomer involvement whencustomers are visiting a web site.
Disadvantages
The Internet is not yet acomplete mass medium as only aquarter of Indian householdshave access to the Internet.
Many Internet users do not payattention to banner ads and theclick-through rate on most isextremely low.
There is a great deal of clutter onthe Internet which makes it
difficult for advertisingmessages to be noticed and/orgiven attention.
Interactive/Internet Marketing
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Sales Promotion
Marketing activities that
provide extra value or
incentive to the sales force,
distributors, or the ultimate
consumer and can stimulateimmediate sales.
Sales promotion is generally
broken into two major
categories:
consumer-oriented
trade-oriented activities.
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Can be..
Consumer-oriented
Coupons /Samples /Premiums
Contest/Sweepstake
Refunds/RebatesBonus Packs /Loyalty
Programs
Events
Trade-oriented
Trade Allowances
POP Displays / Training
ProgramsTrade Shows
Co-op Advertising
Sales Promotion
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Advantages
Provides extra incentive toconsumer or middlemen topurchase or stock andpromote a brand
Way of appealing to pricesensitive consumer
Way of generating extrainterest in product or ads
Disadvantages
Many companies are becoming too reliant
on sales promotion and focusing too
much attention on short-run marketing
planning and performance
Problems with sales promotion clutter as
consumers are bombarded with too many
coupons, contests, sweepstakes and other
promotional offers
In some industries promotion wars may
develop whereby marketers sales
promotion incentives extensively which
results in lower profit margins and makes
it difficult to sell products at full price
Sales Promotion
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Publicity/Public Relations
Publicitynon-personalcommunications about anorganization, product, service,or idea that is not directly paidfor nor run under identifiedsponsorship.
Public Relationsamanagement function thatevaluates public attitudes,identifies the public policiesand procedures of an
individual or organization withthe public interest, andexecutes a program of action toearn public understanding andacceptance.
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Advantages
credibility of publicity isusually higher than other formsof marketing communication
low cost way of communicating
often has news value andgenerates word-of-mouth
discussion among consumers
Public relations generally has a broader objective than publicity, as its purpose is to
establish and maintain a positive image of the company among its various publics
Disadvantages
Lack of control over
what is said, when,
where and how it is said
Can be negative as well
as positive
Publicity/Public Relations
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Publicity Vehicles
PublicityVehicles
FeatureArticles
Interviews
SpecialEvents
PressConference
NewsReleases
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Public Relations
Systematically planning anddistributing information inan attempt to control andmanage image and the
nature of the publicityreceived.
Activities of persons ororganizations intended topromote understanding of
and good will towardthemselves or their productsor services
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Publicity Vehicles
Special Publications
Community Activities
Corporate Advertising
Cause-related Marketing
Special Event Sponsorship
Public Affairs Activities
Public Relations
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Personal Selling
Personal Selling is a direct
person-to-person communication
whereby a seller attempts to
assist and/or persuade
prospective buyers to purchase acompanys product or service or
act on an idea.
Unlike Advertising, personalselling involves direct contact
between buyer and seller
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Personal Selling
Advantages Direct contact between
buyer and seller allows formore communicationflexibility
Can tailor and adaptmessage to specific needsor situation of the customer
Allows for more immediateand direct feedback
Promotional efforts can betargeted to specific marketsand customers who arebest prospects.
Disadvantages
High cost per contact
(depending on the industry)
Expensive way to reach large
audiences Difficult to have consistent and
uniform message delivered to
all customers
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Advertising Agencies
Advertising agency or ad agency is a servicebusiness dedicated to creating, planning and
handling advertising (and sometimes other forms of
promotion) for its clients.
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ROLE OF ADVERTISING AGENCIES
Businesses, Corporations, Government
Organizations and Non Profit set-ups hire
advertising agencies to advertise their
products, brands and services to present
and prospective customers.
An advertising Agency should :
1)Understand the Product / Company
2 ) Plan & Create an Advertising Campaign
3 ) Strategize
Full Service Ad Agencies are well
equipped to plan and create advertisingcampaigns for a range of media including
TV commercials, Radio jingles, print
advertisements etc.
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Services offered by ad agencies
Full range ofmarketing
communicationand promotionservices
Planning
advertising
Creatingadvertising
Producingadvertising
Performingresearch
Selecting
media
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Services offered by ad agencies
Non
advertisingservices
Strategic market
planning
Salespromotions
Directmarketing
Interactivecapabilities
Packagedesign
Publicrelations and
publicity
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Types of Ad Agencies
Full Service
Research department, may include account
planners, media dept. obtains media space,
time, media planning and buying, sales
promotion, creative services that includes
Creation, execution of ads, copywriter artists,
other specialists and interactive media
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Creative boutiques
These types of agencies specialize in and provide only advertising
creative services.
They have creative personnel such as writers or artists on staff but do
not have media, research or account planning capabilities.
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Media Specialist Companies
They specialize in buying media time,particularly radio and television time
Because they purchase large amounts of time
and space, they usually receive large discountsand can save the agency/company money onmedia purchases
They are paid a fee or commission for their
work The agency or client may often develop the
media strategy
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Methods of Agency Compensation
Commission method
Fee or cost + Incentive-based systems
Percentage Charges
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Top Advertising Companies of India 2011
Ogilvy and Mather
J Walter Thompson India
Mudra Communication Pvt. Ltd
FCB-Ulka Advertising Ltd
Rediffusion-DY&R
McCann-Erickson India Ltd
RK Swamy/BBDO Advertising Ltd
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Thank you!