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.

The Marketing Mix

+People

ProcessPhysical Evidence

Product PricePlace

PromotionPeople

Physical EvidenceProcess Selling

AdvertisingSales PromotionDirect Marketing

PublicitySponsorshipExhibitionsPackaging

POS/MerchandisingWord of mouth

E-marketingCorporate Identity

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.

Mixing the communication Mix

Unaware-ness

Awareness Acceptance Preference Insistence Reassurance

Television

Radio

Posters

National Press

Business press

PR Editorials

Company Magazines

Attention Interest Desire Conviction Action Repeat Purchase

Mixing the communication Mix

Unaware-ness

Awareness Acceptance Preference Insistence Reassurance

Direct Mail

Database Marketing

Literature

New Media (internet)

Exhibitions & Seminars

Sales Promotions

others

Face to face

After sales support

Attention Interest Desire Conviction Action Repeat Purchase

Benefits of IMC

• Increase Market Penetration• Develop Repeat Purchase Behavior• Establish Customer Relationships• Increase Rate of Consumption• Encourage Product Trial• Stimulate Impulse Buying• Stimulate Demand• Differentiate the Product• Establish a Product Image• Influence Sales Volume• Establish, Modify, or Reinforce Attitudes• Develop Sales Leads• Stimulate Interest• Establish Understanding• Build Support & Acceptance

Barriers of IMC

Lack Of:Top Management Support- Without top management support, it’s hard for any plan or

project to be successful. Some of the managers still think that the marketing budget gets diluted and effectiveness suffers if multiple tools are employed or even fail to see that

they can reach the target audience via multiple media channels (not just the traditional ones).

Accurate Metrics - As long as there will not be accurate metrics to measure marketing productivity, marketing expenditures in general will be seen by some CEOs as an expense that can be easily cut. It’s even harder to measure the actual impact of a specific channel

as part of the overall impact.

Manpower- Small businesses do not usually have the manpower with cross-disciplinary skills to integrate their marketing communications. The implementation requires proper planning, redefining the scope of marketing communication, application of information

technology and financial and strategic integration.

Lack Of:

Changes needed in the Organization - To implement the IMC process effectively, a company needs to follow certain guidelines. It should adopt a flexible organizational

structure and change the mindset of the employees. It should adopt a customer centric strategy to design communication campaigns from the consumer perspective. A

collaborative strategy is needed, that enables coordination and cooperation between various departments in the organization. This is sometimes easier said then done as rigid

organizational structures (silos) are often “infested” with managers who protect both their budgets and their power base.

Theoretical and practical foundation- Although there is a lot of information about IMC in general and IMC tools in particular, there is still not a “standard procedure” that can be

followed. What should a truly integrated marketing department look like? Should the PR department report to Marketing? Also, no more wild and wacky sales promotions unless

they fit into the overall marketing communications strategy and so on. The practical aspects are still to be defined.

Most of the barriers that relate to HR and organizational changes can be overcome by training the staff. There is an innate resistance to change in people but with proper change management, the anxiety and fear of change can be put aside. The lack of

accurate metrics however, can not be easily overcome as getting accurate information is usually expensive and sometime not even available.

Barriers of IMC

Marketing Communication Tools

Selling and Sales Management

Size and importance of the sales force – ‘ Sales’ is conspicuous by its absence on business cards, ‘New Business development’, ‘ Account Manager’, or ‘ Key Account Manager’, even ‘Relationship manager’, or marketing Executive are often Preferred.Industrial Markets – Industrial Markets prefer Personal Selling more than others , Consumer goods, on the other hand rarely use personal selling to the end user or consumer because of high cost per visit.Integrating with the communication mix – An organization’s own sales force or a distributor’s or agent’s sales force, all have to be kept abreast of any new advertising or sales promotion campaigns , product knowledge

Sales Force

Types of Sales People – ‘Orders getter’, excellent at winning new sales, ‘Order takers’, excellent at

maintaining the existing customers.

Types of Sales force - Field sales force will be supported by an in-house telesales team who do the prospecting

and appointment setting, helping sales people to do what they are best at.

Functions of selling – “Sell”, only 10% of the salesman actual time is spent selling. Prospecting, Appointment

setting, letter writing, travelling, training, post sales service, customer care, entertaining, intelligence gathering, forecasting, understanding customers developing customized solution team selling etc.

Sales Force

Collecting Feedback - Best sales people are expert listeners. They ask intelligent questions and listen carefully. Competitor activity, customer needs and new opportunities and threats should be picked up by the sales force and fed back

to the Sales Manager.

Consultative selling – “ Selling to them to working with them” A paradigm shift has happened to maintain a long term relation with the

customers.

Sales Force

Field Marketing - Reduced cost, flexibility and direct measurability make a contract sales force or field marketing team attractive compared to, full

time, in – house field sales team

Field Marketing – Selling to independent retails outletsMerchandising and Displays

Sampling/ Promotions Market Research into Shelf facings, stocking levels and positions in

stores. Monitoring customer care / service.

Sales Force

Multi Level Marketing – System of selling goods directly to the customers through a network of self employed salespeople. The

manufacturer recruits distributors who in turn recruit(or sponsor) more distributors who in turn recruit more distributors and so on.

Managing the Sales force

Recruiting- Determining the right size and structure of the sales force is vital. Sales force attrition is a fact of life. Some salespeople move to new companies, some are promoted, others retire, or are fired. Recruitment is

a continuous process.

Training – Training is an ongoing process, not an one-off activity. It is again a continuous process like recruitment. The sales force has to

acquire and maintain three pieces of knowledge and one set of skills – Selling skills.

1)Product (4P’s, Features/benefits and USP’s)2)Market(Customers and Competitors)3)Company( History, Structure Etc)

The 7P approach to selling skills

1) Prospecting (looking for potential customer)2) Preparation (Objective setting, Continual customer research

etc)3) Presentation (Demonstration, Discussion)4) Possible Problems (Handling objections)

5) ‘Please give me the order’ (closing the sale)6) Pen to Paper ( recording accurately all the details)7) Post – Sales Service ( Developing the relationship)

Motivating- Maintaining the sales force’s motivation is a vital part of the sales Management. It is the sales Manager’s job to build a team feeling

and get every one to work together sharing ideas rather than hiding them from each other. ------- Psychic income

Managing the Sales force

Controlling – Controlling the sales force involves analyzing sales.

• by product•By market/region•By sales person

Creative selling – Always room for creativity, new form of presentation, a

new way of prospecting, or a new way of showing determination to win

the business, etc.

Advertising

Advertising – Managing Campaign

Advertising campaign is planned and managed by SOSTAC + 3MsWhat is SOSTAC?

S – Situation Analysis( Where are we?)O – Objectives (where do we want?)S – strategy (How do we get there?)T – Tactics (the details of strategy)

A – Action (Implementation – putting plans to work)C – Control (Measurement, Monitoring, Reviewing and Modifying)

What is 3M?M – Men/Women ( the

human resource)M – Money (Budget)M – Minutes (time)

Advertising campaign is planning process incorporates an analysis of the current situation( research) and a clear definition of the

overall communication s objectives as well as specific objectives.The strategy summarizes:

What to say (message)How to say it (execution tone or creative strategy)

Who to say it to (target audience) Where to say it (media choice or media strategy)

When to say it (timing)How much will it cost (budget)

Advertising – Managing Campaign

Advertising – The Situation

What are the current sales trend, market share trend and overall market trend?

Regions or segment that buy more than othersHow big are the competition’s sales (Per region/per distribution

channel)Profile of the customer and non customer who might be converted

Who is the target market now and in future?Who are the Heavy users?

When do they buy?Where do they buy?

How is the brand positioned in the minds of the target markets?Why do people use/not use a brand?Features and benefits of the product

Advertising – The Situation

Product Interrogation – can sometimes reveal hidden benefits which advertising can

subsequently highlight – USPProduct or Service interrogation explores and

examines every angle, including product characteristics, user characteristics, ways of

using, benefits of using, disadvantage of non-usage, competitors comparisons, product

heritage, customer cases, newsworthiness and more.

Trend Identification – New values, trends,

attitudes or lifestyles/business

styles that may affect the organization’s product or service

Review Of Past Advertisement –

Analysis of competitors advertising campaigns –

triggers ideas and provides insight into

Competitors strategies

Advertising – Objectives

Objectives should be SMARTS – Specific

M – MeasurableA – ActionableR – Realistic

T – Time specific

Marketing Objectives – refers to

sales, market share, distribution,

penetration, launching new products and so on

Communication Objectives – how to

affect the target audience, generate

awareness, attitudes, interest or trial.

Advertising – Objectives

What is DAGMAR?Defining

Advertising goals for measuringAdvertising results

What is AIDA?Awareness

InterestDesireAction

Advertising – Strategy

Includes positioning, objectives, target audience, key benefits, secondary benefits and media to be used.Should offer strategic direction to client and agency

team.

Advertising – Concept

Client Approval – Agencies support their

concepts with a “message rationale” which basically

explains why the concept is brilliant and guaranteed to

achieve outstanding results!

Clearance – The finished advertisements should be checked before publication or broadcasting by the relevant regulatory

authority.

Testing – Test is conduct with the finished advertisement in a region on with the organization before it is rolled out nationally or

internationally. Then the actual Roll Out happens.

Production – requires time and careful attention to detail. Involves overseas locations, casting, contract, rehearsals,

special effects, weeks or months of sophisticated computer

graphics, studio shoots, editing and more.

Tracking – The advertisement campaign can and should be monitored or tracked to see how it is working.

Sales Promotion

Sales Promotion – Introduction

What is Sales Promotion?

Sales Promotion - Introduction

Sales Promotion – Is bigger than advertising. The reason for growth of Sales Promotion are:

a)The movement towards relationship marketing(rewarding loyal customers, e.g.. Club membership)

b)Growth of direct mail marketing(and incentives)c)The emergence of promotion literate customers who expect

promotions with certain types of products.d)During recessions price conscious customers search for

value-for-money promotionse)Powerful retailers favor suppliers whose products sell

quickly( because of heavy advertisement or exciting promotions or both)

f)High television advertising costs force marketing managers to

look for more cost effective methods of promotions – Sales Promotion

Sales Promotions could have negative or positive impact

Sales Promotion - Introduction

Three main categories under which a sales promotion is done.

1)Customer Promotions – Premiums, gifts, prizes and competitions.

2)Trade Promotions – Special terms, point-of-sale materials, free pens, diaries, competitions and prizes.

3)Sales force Promotions – Incentives, motivation schemes

Sales Promotion that go wrong happens for two reasons: a) they are a function of a bad brand strategy – with no link to the brand value and long term branding.

b) They have had not attention paid to the detail, so problems emerge such as fulfillment.

Sales Promotion - Objectives

Objectives1)Increase sales

2)Develop new sales lead3)Satisfy retailers with complete package

4)Move excess stocks5)Block a competitor6)Match a competitor

7)Build a database8)Generate Publicity

Sales Promotion – Strategy or Tactics

Sales Promotion that go wrong happens for two reasons: a) they are a function of a bad brand strategy – with no link to the brand value and long term branding.

b) They have had not attention paid to the detail, so problems emerge such as fulfillment.

Sales Promotion – Strategy or Tactics

The Short Term Tactical Approach – ‘Immediate action’, Contrasts with the long term image and brand

building capability of advertising.

Reason for Short term Tactical approach – Management pressure to boost sales.

Shortening of product life cycle. Increased Competition and Increased new product

introduction.Business Problems solved by sales promotion.

Additional Service sales pressures – ‘Ad-hoc’ ‘add on’

Sales Promotion – Strategy or Tactics

The Strategic Approach – All promotions should be part of a bigger and long-term strategy, building and

reinforcing brand image, strengthening user loyalty and inviting new users to join the club.

Reason for Strategic approach – Enables one offer to build on the previous one – continuity of

communication.Communicates image and functional values, so

promotions work harder.Produce considerable savings in TIME and MONEY.Enables offers to be linked with advertising and PR

Facilitates better approach to Joint promotions

Sales Promotion – Strategy or Tactics

Developing Strategic Approach1)Indentify Customers need

2)Identify long term strategic marketing and communication objectives

3)Create guidelines for products and services showing the style of sales promotion appropriate to brands long term health.

4)Determining the total marketing communication budget available for sales promotion.

5)Support and commitment of senior management for sufficient management expertise and funds.

6)Evaluation of long term performance against long term objectives.

7)Develop a ‘promotions file’ compiling ideas and costs through out the year.

8)Plan and forecast for sales promotion’s results.

Sales Promotion – Promotion wars

Competitors compete with each other using different elements of the marketing mix, marketing communication mix, sales promotion mix.

Sales Promotion – Creative Promotions

There is always a room for creative innovation. The only limitation to potential sales promotion creations is

one’s imagination. If it is stunningly successful, it is likely that the completion will follow unless the

innovative promotion relates uniquely to the brand in a creative way.

Sales Promotion – Joint Promotions

What is Joint Promotion?

Managing Sales Promotion

Choosing and Agency – Internal or External Ad agency – Develop a pool, list possible agencies, invite them to present

credentials, check references, shortlist, brief them, pitch, evaluation , selection, written contract.

Planning the campaign – SOSTAC and 3M method can be used

Research – Research of previous promotions(including competitors) followed by target market.

Attention to details – The choice of promotional tool can be directly affected by the availability of resources(3M).

Control and Measurement – Control, Measurement and monitoring form the loop in the management system. How can the

success or otherwise of the promotion be measured?

Direct Marketing

Direct Marketing

What is direct Marketing?

Directing Marketing brings the market directly into the home or office of an individual buyer instead of the

buyer having to go to the market. Armchair Shopping

Direct Marketing in UK defines Direct Marketing as: The distribution of information, products or services through any advertising medium that invites

the individual to respond directly to the advertiser.

Direct Marketing

Direct Marketing should not be used solely as a tactic – more Strategic basis by integrating it with other marketing communication

tools.

Direct Marketing includes

1)Direct Mail2)Telemarketing

3)Door-to-door selling4)Direct response

advertising – “Phone now/fill in the coupon”

5)Computerized home shopping

6)Home shopping networks7)Inserts, Leaflet drops,

house-to-house distribution

Database Marketing

What is Database Marketing?

Database Marketing is more than just names of customers, it includes two types of data- Historical data(transactional data or back data) includes names

address recency and frequency of purchases, responses to offers

and value of purchases. Predictive data identifies which groups or subgroups are more likely to respond to a specific offer(Customer attributes – lifestyle, house

type, past behavior)

Database Marketing also includes – Database building, database warehousing, data-mining, data-manipulation,

data maintenance -

Direct Marketing - Advantages

Direct Marketing Advantages1)Targeting

2)Cost – effective3)Control and accountability

4)Immediate and Flexible5)Opportunity to test

6)International 7)Opportunity to build

database8)Tailored Messages

9)Long term customers10)Multifunctional

Direct Marketing - Disadvantages

Direct Marketing Disadvantages

1)Upsetting Middlemen2)Intrusion or invasion of

Privacy3)Abusive messages from

customers4)Initial cost is high

5)High investment on database building

6)Damage company’s corporate image

Direct Marketing - Growth

Direct Marketing growth1)Market Fragmentation

2)Tailor made technology3)The list explosion0

4)Sophisticated software5)Hybrid Marketing systems6)Constant search for cost

effectiveness

Direct Mail Campaign - Planning

Direct Mail Campaigns1)Timing

2)List selection3)Creative Mailings

4)Budgeting5)Operational Implications

6)Testing

Who are you trying to influence?

What are you selling?Why should your prospects

buy?Where will you find your

prospect/When should you speak to

them?

Telemarketing

What is Telemarketing?

Two way communication. Can collect and give information and get fast feedback.

Telemarketing - Growth

Telemarketing - Growth1)Management’s constant search for cost-effective

methods2)New ways of competing

3)Market fragmentation4)The emergence of niches

5)Falling costs6)The increased capacity of

computer technology

Telemarketing – Campaign

Launch the campaign for telemarketing

Public Relations

Public Relations

What is Public Relations?

Public Relations: The development of and maintenance of good relationships with different publics

Public Relations: practice is the art and science of analyzing trends, predicting their consequences,

counseling organization leaders, and implementing planned programmes of action that will serve both the

organization’s and the public interest.

Public Relations: Includes employees, investors, suppliers, customers, distributors,

legislators/regulators/governments, pressure groups, the community, the media, and even competition.

Public Relations

Product PR(product/brand publicity)

Corporate PR(Corporate image enhancement)

Public Relations - MIX

Public Relation Mix: shows how the ‘visibility’

or publicity-generating activities such as news

releases, news conferences, publicity stunts, conferences, events, exhibitions,

sponsorship, and sales promotion can all

integrate

Media relation and publicity

Media Relation and publicity: Commercials, news items or features that appear in a local or national newspapers, trade journals, radio

programmes, and televisions. Although they

appear to be written by an editor or journalist, many of the news items and features are written by skilled

PR professionals. Like Advertising , editorial publicity can

achieve many communication goals such as increasing

awareness or repositioning.

The important features that differentiate

editorial coverage to that of advertising;

1)No Media cost.2)Message has higher

credibility.3)No control over the

message.4)Reducing the lack of

control.

Media relation and publicity

Media Relation and publicity:

Controlled integration of publicity.

Measuring Media relations.

Sponsorship

What should be sponsored?How does one choose what to sponsor and what to

reject?How much should be spent?

When does it become less value for money?How is it measured?

What exactly does sponsorship mean?

Sponsorship

What is Sponsorship?

Sponsorship is more than patronage, altruism or

benefaction. It can indeed help others while

simultaneously achieving specifically defined

communication objectives.It is also seen as worthy activity supported with

cash or consideration in return for satisfying

specific marketing and corporate objectives

Sponsorship

Range and type of sponsorship

The range of sponsorship

opportunities is limited only by one’s

imagination. Sports, arts, education, community and

broadcast. Expedition, voyage into space and

so on…………

Sponsorship – Advantages

Cost effective(advertising) in terms of reaching a particular audience.

Engagement of audience in a relaxed

atmosphere. Sponsorship reaches those places where

conventional advertising cannot

reach. Effects of sponsorship

are measurable.

Sponsorship – Disadvantages

Sponsorship undermines artistic integrity. In case of

health and education issues involved are too important to be left to

the whim of a Corporation.

Considered as excessive indulgence

by employees specially if there are

redundancies occurring at the same time.

Running a Sponsorship Programme

Analyzing and summarizing.

Defining sponsorship objectives.

Clarifying strategy.Developing the tactical

details.Defining target

audiences.Considering the 3M’s.Monitor and Measure.

Sponsorship - Objectives

1) Increased Awareness

2) Build an Image3) Improve or maintain

relations4) Increase sales and

open closed markets5) Attract

distributors/agents6) Create promotional

materials7) Circumventing

advertising bans8) Ideas.

Exhibitions

What is Exhibitions?

Exhibitions

Imagine bringing a whole market together under

one roof, for a few days. An exciting idea.

An explosive concept.Buyers, sellers, competitors

all under one roof.

Exhibitions

1) Prioritize Exhibition objectives

2) Develop an Exhibition Strategy

3) Select the right shows4) Agree a design

strategy5) Determine pre-show

promotional tactics6) Train Exhibition staff

7) Finalize daily action(operational)

plan8) Ensure follow up

9) Evaluate post show

Exhibitions – Selection of shows

Selection Criteria1) Type of Exhibition2) Target audience

3) Timings4) Facilities

5) Costs6) Previous Success

7) Endorsements

Exhibitions- Value Analysis

1) Costs2) Cost Per Enquiry

3) Cost per order4) Percentage of sales

5) ROI6) Press Coverage

7) Experimental non - attendance

Exhibitions – Poor Performance

Twelve reasons for poor performance

1) Inadequate statements of purpose and objective

2) Poor – quality visitor3) Bad location of stand4) Ineffective quality and

design of stand5) Bad Management of

stand by the personnel6) Lack of follow up of

leads and enquiries

7) Ignoring competition-steal your prospective visitors8) Poor recognition of

company by buyers9) Poor Corporate identity

10) Inadequate arrangements made for the staff working at the

stand11) Breakdown in

Organization and control12) Inadequate control of

costs and budgets.

Packaging

Packaging

Importance of Packaging

Acts a silent sales person.Highlighting USP’S of a product.

Information on usage of a product.

Break through on misery of choice on similar competitive

products.Competitive advantage.

Developing stronger shelf presence.

Positioning and creating or strengthening a brand image in

the minds of the customer.Extraordinarily effective

advertising medium.Free medium and good

packaging design saves manufacturing cost.

Packaging

Basic functions of Packaging

Three basic functions of

packaging are:Protect (and Contain)

Offer conveniencecommunicate

Packaging

Grab the attention of passive shoppers

Persuade and convince the viewers.

Build brand personality and image

Build loyalty with a pack that;a)Looks nice on table

b)Is easy to find anywherec)Distinctive and recognizable

d)Easier to use than competitive products

Usage information.Information on mandatory

requirements.

Communication functions of Packaging

Packaging

The Designer’s tools

Six tools a designer can use;

1)Shape2)Size

3)Color4)Graphics5)Materials

6)Smell

Packaging – Design ProcessBriefing

Research

Concept development

Research Research

Concept Selection Concept Selection

Graphics Shapes

Graphic and Shape designAgrees optimum Design

Packaging – Design ProcessGraphic and Shape designAgrees optimum Design

Mock up

Layout

Finished artwork

Typesetter’s brief

Labels

Model

Model drawings

Detailed component drawings

Toolmakers Drawings

Bottles

Pack with Labels

Merchandising

Merchandising - Tools

1) Leaflets and dispensers2) Stickers3) Posters

4) Show cards and cardboard cut outs

5) Branded racks or display units

6) Dump bins 7) Three dimensionala) Injection moulded

charactersb) Holograms

c) Free standing floor display

8) Electronic gadgetsa) Spotlighting system

b) Video walls c) Plasma screen

d) Illuminated display system

e) Interactive POS system9) Shelf space

10) Shelf positioning 11) In store sampling12) Window displays

13) Digital imaging and web based merchandising

analysis tools

Merchandising

Distributors empathy and Retail strategies

‘Distributors empathy’ helps a supplier to make his

product or services fit in with the retailer’s plan.

-----------------------------------------Every retailer has its own

marketing mix- This fits in with the retailing strategy to exploit it source ‘competitive

advantage’.

Merchandising - Tools

The more common low – tech merchandising

tools are:1) Store image (external

and internal)2) Store layout

3) Merchandise range4) Color blocking5) Point-of-sales

display/retail sales promotions

6) Miscellaneous

Word of Mouth

Word of Mouth

People talk about Companies and

Organizations, their products, their services,

their staff and their experience as

customers. WOM is by far the most potent in

both Industrial and Consumer markets

Word of Mouth

Why do people bother to talk about products and services in the first

place?Do some people talk more

than others? Are some people listened to

more than others?Who are the opinion leaders

and opinion formers?

Corporate Identity

Corporate Identity

What is Corporate Identity?

Corporate Identity is how a corporation, company or organization expresses itself visually. It is the

prime interface between an organization and its key audiences. The first

contact people have with an organization will bring them in contact with its

Corporate Identity.

Corporate Identity

More than a Logo

Although when many people use the term ‘Corporate

Identity’, they are referring to a logo, in

reality corporate identity is much more broader.

“Logo is a tip of Iceberg”

Corporate Identity

Managing Corporate Identity

There are number of stages in management of corporate identity

1) Gain Board-level support2) Assess current situation

and determine ideal image.

3) Brief and select designer4) Develop Design

concepts5) Select, research and test

concepts.6) Explain internally.

7) Implement launch and maintain.

8) Review and update.

Corporate Identity

What is Corporate Image?

Corporate image is the corporate brand. Every company has an image

or brand.Corporate image is perception.

Corporate identity is the reality of the tangible points

of public contact.Corporate Identity – Buildings,

Vehicles, Uniforms so onCorporate Image – Sum of

People’s perceptions of an organization, Images –

sight, sound, smell touch, taste, experience through

product usage, customer service, corporate

communications……..