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An Introduction to
Integrated MarketingCommunications
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Integrated marketing communication
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IMC is Marketing &Promotional Mixes
Marketing Mix:
Product or ServicePricing
Channels of Distribution
Promotion
Promotional Mix:Advertising
Direct Marketing
Interactive/internet marketingSales Promotion
Publicity/Public Relations
Personal Selling
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Definition of
Integrated MarketingCommunications
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Definition of IntegratedMarketing Communications
A concept of marketing communicationsplanning that recognizes the added value
of a comprehensive plan that evaluates
the strategic roles of a variety ofcommunication disciplines and combines
these disciplines to provide clarity,
consistency and maximumcommunications impact.
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Definition of IntegratedMarketing Communications
A marketing communications planning
concept that recognizes the value of acomprehensive plan.
A plan that evaluates the strategicroles of several communications
disciplines: Media advertising
Direct marketing
Interactive/internet marketing
Sales promotion Publicity/Public relations
Combines the disciplines to provide: Clarity, Consistency
Maximum communications impact
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Reasons for the
GrowingImportanceof IMC
f i
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Reasons for growing Importanceof IMC.
1.A very fundamental reason isthat they recognized the value ofstrategically integrating the variouscommunication functions rather
than having them operateautonomously. The move alsoreflects an adaptation by marketers
to a changing environment,particularly with respect todemographics, lifestyles, mediause, and shopping patterns.
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2.The IMC movement is alsobeing driven by a marketingrevolution that is changingthe ways companies market
their products and services.
Major characteristics of this
marketing revolutionincludes:..
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Ashifting of marketing dollars/rupees
from media advertising to other formsof promotion particularly trade-orientedsales promotion.
A movement away from just relying onlyon advertising-it shifted more onfocused approaches, which emphasizemass media to solve communication
problems and more attention to smaller,targeted media alternatives.
A shift in marketplace power frommanufacturers to retailers.
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Due to consolidation (merger) in the
retail industry, small local retailersare being replaced by large regional,national, and international chainsthat are using their power to
demand promotional fees andallowances. (Subway Macdonald)
Retailers are also using newtechnologies which is prompting
many marketers to shift their focusto promotional tools that canproduce short term results, such assales promotion.
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The rapid growth and
development of databasemarketing is prompting manymarketers to target consumers
through a variety ofdirect-marketing methods such astelemarketing, direct mail and
direct response advertising.
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Demands for greater
accountability fromadvertising agencies andchanges in the way agenciesare compensated which aremotivating agencies toconsider a variety ofcommunication tools and lessexpensive alternatives to
mass media advertising.
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The rapid growth of the
Internet is also changing thevery nature of howcompanies do business andthe ways they communicateand interact with consumers.
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This marketing revolution isaffecting everyoneinvolved in the marketing
and promotional process,it has had even greaterimpact on the changing
role oftraditionaladvertising agencies.
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Many agencies haveresponded by acquiringpublic relations, sales
promotion, directmarketing firms, andinteractive agencies and
publicize their capability tomeet all of their clientsIMC needs.
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The Role of IMC inBranding
Power of DifferentBrands
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The Role of IMC in Branding
one of the major reasons
for the growingimportance of IMC is that
it plays a major role inthe process ofdeveloping
and sustaining brandidentity and equity.
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What isBrand Identity and Brand Equity?
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Brand identity is a combination of
many factors including the name,logo, symbols, design, packaging,and performance of a product orservice as well as the associations,attachment that come to mind whenconsumers think about a brand.It isthe sum of all points ofcontact that
consumers have with a brand whichincludes the various forms ofIntegrated Marketing Communication
used by a company.
What is Brand identity?
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BrandIdentity
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Case let in Sodas and FedEx
Sodas
FedEX
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What is Brand Equity?
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What is Brand Equity?
Brand equityis an intangibleasset that depends on
associations made by the
consumer. There areat least three perspectives
from which to view brandequity:
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1.Financial - One way tomeasure brand equity is todetermine the price
premium that a brandcommands over a genericproduct.
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2.Brand extensions
A successful brand can be used asa platform to launch related products.
The benefits of brand extensions isleveraging of existing brandawareness and thus reducing
advertising expenditures, anda the lower risk from consumers theperspective. (Nirma)
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3.Consumer-basedA strong brand increases the consumer's
attitude strength toward the productassociated with the brand.
Attitude strength is built by experiencewith a product. This importance of
actual experience by the customerimplies that trial samples are moreeffective than advertising in the earlystages of building a strong brand.
The consumer's awareness andassociations lead to perceived quality,inferred attributes (indirect features ),and eventually, brand loyalty.
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The promotional mix
The tools for IMC
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Promotion is defined as the coordination of all
seller-initiated ( retailer,manufacturer,vendor )efforts to set up channels of information and
persuasion to sell goods and services or
promote an idea.
Promotion is best viewed as the communication
function of marketing by putting promotional mix
together in IMC form and other marketingelements such as brand name, package design,
price or retail outlets implicitly (completely)
communicates with consumers.
The Role of Promotion
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In majority of the organizations
communication with the
Marketing takes place through
a carefully planned andcontrolled promotional
programwhich utilizes elements
of the promotional mix.
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The promotional mix is
defined as thebasic tools orelementsthat are used to
accomplish organizations
objectives.
Now Lets discuss role andfunction of each promotional mix
element with its advantages and
limitations.
El t f P ti l Mi
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Elements of Promotional Mix
You have studied in detail
AdvertisingDirect
Marketing
Interactive/Internet Marketing
Sales
PromotionPublicity/Public
Relations
Personal Selling
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PROMOTIONAL MANAGEMENT
Elements of Promotional Mix
AdvertisingDirect
Marketing
Interactive/
Internet Marketing
Sales
PromotionPublicity/Public
Relations
Personal Selling
Promotional management
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Promotional management should
be defined as the process of
coordinating the promotional
mix elements to develop a
controlled and integrated program
of effective marketing
communication.Promotional Management involves
Various decision areas such as:
Promotional management
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which promotional tools to use andhow to combine them effectively
determining the size of anddistributing the advertising and
promotional budget (Allocation)
determining the influence ofvarious factors on the promotional
mix including the type of product,target market, decision process ofthe buyer, stage of the product lifecycle, and channels of distribution
P omotional planning p ocess
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Promotional planning process
The promotional plan provides a
framework for developing,implementing, and controlling an
organizations integrated marketing
communication program and
activities.
The steps in the Integrated Marketing
Communications Planning Modelinclude:..
Integrated Marketing Communications Planning Model
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Promotional Program Situation Analysis
Analysis of the Communications Process
Budget Determination
Develop Integrated Marketing Communications Programs
Review of Marketing Plan
Advertising SalesPromotion
PR/Publicity
PersonalSelling
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/Interactiv
Internet/InteractivObjective
Internet/Interactiv
Strategy
Integrated Marketing Communications Planning Model
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IMC Planning Model.doc
Reviewing the Marketing Plan
http://localhost/var/www/apps/conversion/releases/20121120192253/tmp/scratch_4/MODELS/IMC%20Planning%20Model.dochttp://localhost/var/www/apps/conversion/releases/20121120192253/tmp/scratch_4/MODELS/IMC%20Planning%20Model.doc -
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Reviewing the Marketing Plan
Reviewing the Marketing Plan
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Reviewing the Marketing Plan
Its the first step in IMC planning process to
review the marketing plan and objectives.
Before developing marketing plan marketersmust understand where the company has beenand what's its current position in the market,
where it intends to go and how it plans to getthere.
All information should be contained in the
marketing plan a written document thatdescribes the overall marketing strategy andprograms developed for a company, product orbrand
Elements of Marketing plan
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Elements of Marketing plan
Marketing plans can take several forms but
generally include five basic elements.1.A detailed situation analysis
2. Specific marketing objectives
3. A marketing strategy and program thatincludes selection of a target market and plans
for marketing mix elements
4. A program for implementing the marketingstrategy
5. A process for monitoring and evaluatingperformance of Marketing Strategy Mast Drink
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Situation Analysis
Situation Analysis Internal Factors
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Situation Analysis Internal Factors
1 .Internal Factors
Assessment of the firms organization ofpromotional programs , its inbuilt capacityand capabilities
Review of the firms previous promotional
programs Assessment of firms or brand image and
implications for promotion
Assessment of relative strengths andweaknesses of product/service(comparative studies from global and localmarket and position of their company.)
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2.External FactorsCustomer analysis
Competitive analysisEnvironmental analysis
Situation Analysis
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yExternal Factors
Customer Analysis
Who buys our product or service? Who initiates and makes the decision
to purchase and who influences the process? How is the purchase decision made?
What features or criteria are important tocustomers? What are customers perceptions of and
attitudes toward our company, product/serviceor brands?
What factors influence the decision makingprocess? (Antwrep,Blegium..catchup)
Contact points where customers can bereached?
IMC Program Situation Analysis
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g yExternal Factors
Competitive Analysis Direct and indirect competitors
Key Benefits and positioning
used by competitors Our Position relative to
competitors
Size of competitorsadvertising/promotional budgets
IMC strategies being used bycompetitors
IMC Program Situation Analysis
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g yExternal Factors
Environmental analysis
TechnologicalPolitical/Legal
Demographic Socio/Cultural
Economic
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Analysis ofCommunications Process
Analysis of Communications Process
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Analysis of Communications Process
Analyze response process of customers
will go through in responding marketingcommunication. (tataneno SBI Registration)
Analyze best combination of source,
message and channel factors forcommunicating with target audience.
(What is the message and what mix we needto use for maximum impact)
Establish communication goals andobjectives based on promotinal mix chosen.
Communications Objectives
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Communications Objectives
Communication Objectives flow from
marketing objectives. Whereasmarketing objectives refer to overall
marketing program and are outlined
in terms of sales,profitabilty or market
share goals, Objectives in terms of
awareness to be created ,knowledge tobe given, attitude and behavior to be
changed, Identity ,image and brand to
be built.(Its a long term planning)
What is the objective ?
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What is the objective ?
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Budget Determination
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Budget Determination
After the Communication objectives
are determined ,attention turns tobudget for IMC Program.
Two questions comes to mind: What will be the promotional program cost ?
(Total) How will the money be allocated ?
Ideally the amount the firm needs to spend on
promotion should be determined to achieve its
objectives. Normally budget allocation is based
on company's or brands sales revenue. BUT At
IMC planning stage budget that we decide is
Often tentative
Integrated Marketing Communications Planning Model
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Promotional Program Situation Analysis
Analysis of the Communications Process
Budget Determination
Develop Integrated Marketing Communications Programs
Review of Marketing Plan
Advertising SalesPromotion
PR/Publicity
PersonalSelling
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/Interactiv
Internet/InteractivObjective
Internet/Interactiv
Strategy
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Develop Integrated
Marketing
Communications Program
Of
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Of
Promotional Mix selected
Advertising
Direct marketing
Interactive/InternetMarketing
Sales promotion
Public relations/publicityPersonal selling
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After Developing ..
Integrate and ImplementMarketing Communications
Strategies
Advertising SalesPromotion
PR/Publicity
PersonalSelling
DirectMarketing
Internet/Interactive
Integrate and Implement MarketingC i ti St t i
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Communications Strategies
Integrate promotional mixstrategies.
Create and produce ads.
Purchase media time andspace
Design and implement directmarketing programs
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Design and implement sales
promotion program
Design and implement publicrelations/publicity programs
Design and implementinteractive/
internet marketing programs
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Monitor,Evaluate and
ControlIntegrated Marketing
CommunicationsProgram
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Mon tor, Eva uate an ontro IntegrateMarketing Communications Program
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Marketing Communications Program
Evaluate promotionalprogram results and
Determine effectiveness
Take actions to control and
adjust promotional programs
Case.
Cadbury Manages Crisis with IMC