Week 1 IMC (1) PDF

Promotion & Advertising Planning Week 1: Integrated Marketing Communication Objectives ? Recognize the critical Role communication plays in marketing programs ? Review the nature of the communication process ? Define Integrated Marketing communications ? Discover the nature of a total...

Promotion & Advertising Planning Week 1: Integrated Marketing Communication Objectives ? Recognize the critical Role communication plays in marketing programs ? Review the nature of the communication process ? Define Integrated Marketing communications ? Discover the nature of a totally integrated advertising and marketing communications approach Communication and IMC programs ? An integrated marketing communication program is based on the foundation provided by the communication models. The process of communication To be an effective communicator and to get your point across without misunderstanding and confusion, your goal should be to lessen the frequency of these barriers at each stage of this process with clear, concise, accurate, well-planned communications. We follow the process through below: Source... ? As the source of the message, you need to be clear about why you're communicating, and what you want to communicate.You also need to be confident that the information you're communicating is useful and accurate. Message... ? The message is the information that you want to communicate. Encoding... ? This is the process of transferring the information you want to communicate into a form that can be sent and correctly decoded at the other end.Your success in encoding depends partly on your ability to convey information clearly and simply, but also on your ability to anticipate and eliminate sources of confusion (for example, cultural issues, mistaken assumptions, and missing information.) A key part of this is knowing your audience: Failure to understand who you are communicating with will result in delivering messages that are misunderstood. The process of communication Channel... ? Messages are conveyed through channels, with verbal including face-to-face meetings, telephone and videoconferencing; and written including letters, emails, memos, and reports. ? Different channels have different strengths and weaknesses. For example, it's not particularly effective to give a long list of directions verbally, while you'll quickly cause problems if you criticize someone strongly by email. Decoding... ? Just as successful encoding is a skill, so is successful decoding (involving, for example, taking the time to read a message carefully, or listen actively to it.) Just as confusion can arise from errors in encoding, it can also arise from decoding errors. This is particularly the case if the decoder doesn't have enough knowledge to understand the message. The process of communication Receiver... ? Your message is delivered to individual members of your audience. No doubt, you have in mind the actions or reactions you hope your message will get from this audience. Keep in mind, though, that each of these individuals enters into the communication process with ideas and feelings that will undoubtedly influence their understanding of your message, and their response. To be a successful communicator, you should consider these before delivering your message, and act appropriately. Feedback... ? Your audience will provide you with feedback, verbal and nonverbal reactions to your communicated message. Pay close attention to this feedback, as it is the only thing that allows you to be confident that your audience has understood your message. If you find that there has been a misunderstanding, at least you have the opportunity to send the message a second time. Context... ? The situation in which your message is delivered is the context. This may include the surrounding environment or broader culture (corporate culture, international cultures, and so on). Marketing Communication ? Modem marketing is the management of the four P's - product, price, promotion and place or distribution channel. In a sense the entire marketing process has a large content of communication. ? The product communicates a distinctive image such as youthfulness, glamour or prestige. ? The brand name communicates physical and psychological attributes of the product, ? The package communicates to the consumer what the manufacturer thinks of his convenience and sense of beauty. ? The price communicates the quality of the product. There are communications between buyers and sellers, i.e., the distribution channel. Thus, each element of the marketing mix either helps or hinders communication and ultimately the sales effort. ? Marketing communication is thus a broader term than promotional strategy. However, the most important element of marketing communication is the planned promotional communication. The Marketing Communication Process The New Look of Advertising Interactive, Informative, Entertaining Integrated Marketing Approach ? Traditional mass media ? Television, radio, magazines, newspapers, billboards ? Now drive consumers to Web sites ? Online strategies ? Provide detailed information ? Be experiential, entertaining, interactive ? MySpace,YouTube, Facebook, wireless mobile media devices, e-mail Traditional Marketing Approach Sales Specia Point of promotion l purchas Interactive events e marketing Media Packaging Adver- tising Public relation s Publicity Direct Direct marketing respons e Defining IMC IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences. The goal of IMC is to generate short-term financial returns and build long-term brand value. Defining IMC ? Simply, IMC attempts to unify all pieces of marketing communications, including, advertising, public relations, direct marketing, social media and sales promotion. It is designed to create messaging that is consistent across all channels. Contemporary Perspective of IMC Recognized as a business process IMC Importance Multiple of relevant relevant audience audiences Demand for accountability and Demand for accountability measurement of outcomes Test Your Knowledge Why are marketers decreasing the use of mass media advertising and increasing the use of integrated marketing communications? A) The mass market has become fragmented. B) New technologies have given consumers greater control over the communication process. C) Use of the Internet and electronic commerce is growing. D) New global markets are emerging. E) All of the above. Components of IMC: ? The Foundation - As the name suggests, foundation stage involves detailed analysis of both the product as well as target market. It is essential for marketers to understand the brand, its offerings and end-users.You need to know the needs, attitudes and expectations of the target customers. Keep a close watch on competitor’s activities. ? The Corporate Culture - The features of products and services ought to be in line with the work culture of the organization. Every organization has a vision and it’s important for the marketers to keep in mind the same before designing products and services. ? Example: Organization A‘s vision is to promote green and clean world. Naturally its products need to be eco friendly and biodegradable, in lines with the vision of the organization. Component of IMC ? Brand Focus - Brand Focus represents the corporate identity of the brand. ? Cunstomer Experience - Marketers need to focus on consumer experience which refers to what the customers feel about the product ? Communication Tools - various modes of promoting a particular brand such as advertising, direct selling, promoting through social media such as facebook, twitter,. ? Promotional Tools - Brands are promoted through various promotional tools such as trade promotions, personal selling and so on. Organizations need to strengthen their relationship with customers and external clients. ? Integration Tools - Organizations need to keep a regular track on customer feedbacks and reviews.You need to have specific software like customer relationship management (CRM) which helps in measuring the effectiveness of various integrated marketing communications tools. ? Integrated marketing communication enables all aspects of marketing mix to work together in harmony to promote a particular product or service effectively among end-users. Why IMC? ? Because it focuses on the customer and is efficient and cost-effective for the brand and organization. The IMC approach leverages all marketing and communication pieces and takes the value each provides to the brand to ensure that the customer receives a consistent, relevant and powerful message. Growing Importance of IMC ? Strategic integration of communications functions ? Avoids duplication ? Synergy among promotional tools ? More efficient and effective marketing ? Rapidly changing environment ? Consumers ? Technology ? Media Behind the Growing Importance of IMC From Toward 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 Traditional compensation Performance-based compensation Limited Internet availability Widespread Internet availability The Role of IMC in Branding ? Brand identity is a combination of ? Name ? Logo ? Symbols ? Design IMC plays a major role in developing and ? Packaging sustaining brand ? Performance identity and equity ? Image or associations Promotion mix ? The marketing communication mix (also called promotion mix) consists of four major tools: ? Advertising: Any paid form of non-personal communication of ideas, products and services by an identified sponsor. ? Sales Promotion: Short-term direct inducements to encourage sales of products and services. ? Publicity: Non-personal stimulation of demand for a product/service or business organisation as a whole by putting commercially Significant news in media to create a favourable image, It is not paid for by the sponsor. ? Personal Selling: For making sales, a salesman interacts orally with the buyer or buyers in the form of a sales presentation. ? Public Relations: Marketers engage in public relations to develop a favourable image of their organisations in the eyes of public - public at large, customers, suppliers, government, media, competitors, shareholders, employees and the society. The Promotional Mix Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations Personal Selling  Advertising ? Paid forms of non-personal communication – About an organization, product, service, or idea by an identified sponsor – No feedback from audience – Important for products and services aimed at mass consumer markets – Cost effective The Most Common Forms of Advertising National Advertising Retail/Local Advertising Primary vs. Selective Demand Advertising Consumers Business-to-Business Advertising Professional Advertising Trade Advertising Organizations Direct Marketing Direct Mail Internet Direct Response Sales Advertising Direct Marketing Shopping Telemarketing Channels Catalogs Bose Uses Direct Response Advertising Includes call for action. Phone number, mail-in form, website address provided. Interactive/Internet Marketing ? Back-and-forth communication ? Users participate in and modify the form and content of information ? Happens in real time ? Interactive media ? Internet ? CD-ROMs ? Kiosks ? Interactive television ? Digital cell phones  Using the Internet as an IMC Tool The Internet Educates or A persuasive A sales tool informs advertising or an actual customers medium sales vehicle Obtains Provides Builds and Communicates customer customer maintains and interacts database service and customer with buyers information support relationships Sales Promotion Coupons Samples Trade Allowances Premiums POP Displays Contest/Sweepstake Refunds/Rebates Training Programs Bonus Packs Trade Shows Loyalty Programs Coop Advertising Events Consumer-oriented Trade-oriented [For end-users] [For resellers] Coop Advertising  Sales Promotion ? Most of the promotional budget now goes to sales promotion ? Declining brand loyalty ? Increased consumer sensitivity to “deals” ? Larger and more powerful retailers are demanding more trade promotion support Test Your Knowledge _____ is nonpersonal communication, neither directly paid for nor run under, identified sponsorship. A) Advertising B) Sales promotion C) Publicity D)Public relations E) Personal selling Advertising Versus Publicity Factor Advertising Publicity Control Great Little Credibility Lower Higher Reach Measurable Undetermined Frequency Schedulable Uncontrollable Cost High/Specific Low/Unspecified Flexibility High Low Timing Specifiable Tentative  Publicity Vehicles Feature Articles News Interviews Releases Publicity Vehicles Press Special Conferences Events Public Relations Systematically planning and distributing information in an attempt to control and manage image and the nature of the publicity received. Public Relations Tools Cause-related Marketing Publicity Special Vehicles Publications Community Corporate Activities Advertising Public Affairs Special Event Activities Sponsorship  Personal Selling ? Person-to-person communication ? A seller attempts to assist and/or persuade prospective buyers to make a purchase or act on an idea  IMC Audience Contact Tools Public Broadcast Internet/ Print media Relations/ media interactive publicity Out-of-home Direct media marketing Target Audience Personal Sales selling Promotion Point-of-purc Word-of-mou Events and Product hase th sponsorship placements Test Your Knowledge The _____ is a written document that describes the overall marketing strategy and programs developed for an organization, product line, or brand. A) promotional plan B) marketing plan C) communications plan D) marketing audit E) situation analysis  The IMC Planning Process ? Developing an integrated marketing communications plan requires Planning Executing Evaluating Controlling Basic Elements of a Marketing Plan 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  Model of the IMC Planning Process Review of marketing plan Analysis of Promotional program situation Analysis of communications process Budget determination Develop integrated marketing communications program Sales PR/ Personal Direct Internet/ Advertising promotion publicity selling marketing interactive Develop objectives and strategy for each Develop message, media strategy, and tactics Integrate and implement marketing communications strategies Monitor, evaluate and control IMC Program