An Introduction to Integrated Marketing Communications

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• An Introduction to Integrated Marketing
  Communications

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The Marketing Promotional Mixes

• Product or Service
• Pricing Policy
• Distribution Method
• Promotional Mix
• Advertising
• Direct Marketing
• Sales Promotion
• Publicity/Public Relations
• Personal Selling
• Interactive/Internet Mktg

IMC Tools
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What is IMC?

• The practice of unifying all marketing
  communication efforts so they send a clear,
  consistent, persuasive message to target
  audiences.

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Integrated Marketing Communications

• A marketing communications planning concept.
• Recognizes the value of a comprehensive plan.
• A plan that evaluates the strategic roles of
  several communications disciplines
• General advertising
• Direct response
• Sales promotion
• Public relations
• Combines the disciplines to provide
• Clarity
• Consistency
• Maximum communications impact

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Why is IMC becoming so important?

• Increased clutter.
• Decreased message credibility.
• Increased price competition.
• Fragmented media markets.
• Shift in channel power.
• The development of database marketing.
• Changes in information technology.

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IMC Example
Book
http//thedarkknight.warnerbros.com/
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Advertising
Paid, sponsor-identified, nonpersonal (media)
communications.

• Advantages
• Low cost per contact
• High degree of control
• Best differentiation tool
• Best brand equity builder

• Disadvantages
• Very high overall cost
• Difficult to determine effectiveness
• Credibility problems
• Clutter

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Direct Marketing

• Part of the IMC program
• Typically has separate
• Objectives
• Budgets
• Strategies

• Direct marketing methods
• Direct mail
• Cataloging
• Telemarketing
• Direct response ads
• Internet sales

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Interactive/Internet Marketing

• An entirely new era
• Little or no history or experience
• Rapidly changing communications technology
• Unprecedented growth and development
• Multiple Internet roles
• As a persuasive advertising medium
• As a means to educate or inform customers
• As a sales tool or an actual sales vehicle
• To obtain customer database information
• To communicate and interact with buyers
• To provide customer service and support
• To build and maintain customer relationships

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Sales Promotion
Marketing activities that provide extra value or
incentives to the sales force, distributors, or
ultimate consumers and can stimulate immediate
sales.

• Trade-oriented
• Targeted toward marketing intermediaries such as
  retailers, wholesalers, or distributors
• Buying allowances
• Promotional allowances
• Price deals
• Sales contests
• Trade shows

• Customer-oriented
• Targeted to the ultimate users of a product or
  service
• Coupons
• Sampling
• Premiums
• Rebates
• Contests
• Sweepstakes
• POP materials

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Sales Promotion Uses

• Introduce new products
• Get existing customers to buy more
• Attract new customers
• Combat competition
• Maintain sales in off season
• Increase retail inventories
• Tie in advertising personal selling
• Enhance personal selling efforts

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Sales Promotion

• Advantages
• Response is more immediate than advertising.
• Appeals to price sensitive consumers
• Generates extra interest in advertising
• Easy to measure effects
• High control

• Disadvantages
• Short term impact
• Often abused
• Promotion wars
• Negligible brand image effect

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Publicity
Non-paid, unsponsored, nonpersonal (media)
communications.

• Disadvantages
• Very little control
• Requires media cooperation.
• Can be negative.

• Advantages
• Most credible
• Low cost mass communication

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Public Relations
The management function which evaluates public
attitudes, identifies the policies and procedures
of an individual or organization with the public
interest, and executes a program of action to
earn public understanding and acceptance.

• Tools used by Public Relations
• Publicity
• Special publications
• Community activity participation
• Fund-raising
• Special event sponsorship
• Public affairs activities

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Personal Selling

• Advantages
• Low overall costs
• Best for complex info
• Very specific targeting
• Direct feedback
• Flexible message

• Disadvantages
• Very high cost per contact
• Difficult to communicate a uniform message
• Medium level of control

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IMC Players

• Advertiser or Client
• Advertising Agency
• AAAA AAF ARF
• Media Organizations
• Marketing Communications Specialists
• Direct Marketing Agencies
• Sales Promotion Agencies
• Interactive Agencies
• Public Relations Firms
• Collateral Services
• Namelab Strategic Name Development

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Reasons for Using an Agency

• Obtain services of highly skilled specialists
• Artists
• Writers
• Media analysts
• Researchers
• Others with specific skills
• Obtain an objective point of view
• Free of internal policy constraints and biases
• Broad range of experience, having worked with
• Diverse marketing problems
• Various types of clients

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Full-Services Agencies

• Non-Advertising Services
• Strategic market planning
• Sales promotion and sales training
• Production of trade show materials
• Package design
• Public relations and publicity

• Full Range of Marketing, Communication and
  Promotion services
• Planning, creating, producing advertising
• Performing research
• Selecting media

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Agency Services

• Account services
• The link between agency and client
• Managed by the Account Executive
• Marketing services
• Research department may design and execute
  research programs
• Media department may analyze, select and contract
  media resources
• Creative services
• Creation and execution of ads
• Copywriters, artists, other specialists

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Other Agencies and ServicesCreative Boutiques

• Provide only creative services
• Other functions provided by the internal client
  departments
• Full-service agencies may subcontract with
  creative boutiques

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Other Agencies and Services Media Buying Services

• Specialize in buying media, especially broadcast
  time
• Agencies and clients develop media strategy
• Media buying organizations implement the strategy
  and buy time and space

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Direct Response Agencies

• Data Base Management
• Direct Mail
• Research
• Media Services
• Creative
• Production

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Sales Promotion Specialists

• Contests
• Sweepstakes
• Refunds and rebates
• Sampling programs
• Incentive programs

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Public Relations Firms

• Strategy Development
• Program Planning
• Generating Publicity
• Lobbying
• Public Affairs
• Image portrayal
• Damage control

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Interactive Agencies

• Interactive Media Creation
• Web sites
• Web banner ads
• CD-ROMs
• Kiosks
• Digitized Content
• Audio
• Video
• Animation

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Agency Compensation

• The Commissions Method
• Agency usually receives 15 percent
• Commissions are paid by the media
• Commission system is controversial
• System is becoming less common
• Fee Arrangements
• Fixed fee method
• Fee-commission method
• Cost-Plus Agreements
• Incentive-Based Compensation
• Percentage Charges

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Marketing Strategy

• The Marketing Concept
• What is Marketing Strategy?
• Providing superior customer value.
• What is value?
• The marketing Strategy Process
• Opportunity Identification / Situation Analysis
• S-T-P
• Marketing mix

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Situation Analysis

• Internal Factors
• Assessment of the firms promotional organization
  and capabilities
• Review of the firms previous promotional
  programs
• Assessment of firm or brand image and
  implications for promotion
• Assessment of relative strengths and weaknesses
  of product/service
• External Factors
• Customer analysis
• Competitive analysis
• Environmental analysis

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Segmentation, Targeting, and Positioning
Market Segmentation
1. Identify segmentation variables and segment
the market 2. Develop profiles of
resulting segments
Market Targeting
3. Evaluate the attractiveness of each
segment 4. Select the target segment(s)
Product/Service Positioning
5. Identify possible positioning concepts for
each target segment 6. Select, develop, and
communicate the chosen positioning concept
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Segmentation

• Segmentation is a concept that recognizes the
  diversity in the marketplace. The process of
  segmenting the market produces clusters of people
  who enjoy similar product features.

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Segmentation

• Goal Identify segments that seek different
  benefits and, therefore, will be responsive to
  different positionings of the product/offerings.
• Means Link benefits sought to characteristics
  that make customers readily identifiable and
  accessible. For example
• User status, Demographics, Media exposure
  patterns,
• Caution Avoid over-segmenting make sure that
  each segment is substantial enough to justify a
  unique positioning effort.

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Market Segmentation

• Bases for Segmentation
• Usage
• Non-users vs. Category users
• Competitor users vs. Own brand users
• Geographic
• Zip Code Analysis
• Regional Analysis
• Demographic
• Age
• Gender
• Income
• Others
• Benefit Sought
• Psychographic

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Market Segmentation
Usage Segmentation

• Category Usage

Nonusers ()
Light Half pop use
Heavy Half pop use
Heavy users Efficiency /Profit Caution
Majority Fallacy

• Brand Usage
• to Sales - Target people/companies with profile
  of current user
• to Opportunity - Target users of competitive
  brands or nonusers

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Market Segmentation
Geographic Segmentation

• Zip Code Analysis
• Regional Analysis

http//www.census.gov/cgi-bin/gazetteer
Demographic Segmentation

• Age
• Gender
• Income
• Others

Volkswagen Ads 5-second-rule.mov Flirting.mov
Synchronicity II.mov Turbonium.mov Smarter
Looking.mov
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Market Segmentation
Psychographic Segmentation

• Lifestyles
• Values
• Attitudes
• Interests
• Opinions

www.claritas.com
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Market Segmentation

• Criteria For Segmentation
• Identifiable
• Accessible
• Responsive
• Significant
• Capturing Segments
• Instruments Available
• Price
• Product
• Distribution
• Promotion
• Common Positioning Errors
• Positioning in a crowded market space
• Positioning on an unimportant attribute

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Positioning

• Positioning requires designing a company and
  product image and developing a marketing mix to
  promote the image to the target segment(s).

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Positioning Statement

• The key concept of an idea to be communicated to
  a target market via elements of the marketing
  mix.
• Elements
• Target
• Concept (Frame of Reference)
• Point of Difference

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Potential Communications Objectives

• Individual sales
• Customer loyalty
• Company image
• Brand image
• Store patronage
• Service contract

• An inquiry
• A visit by the prospect
• Product trial
• Prescription for use
• Recommendation
• Adoption of the product

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Communications Objectives

• Messages are designed to achieve specific
  strategic goals.

• The BellSouth Yellow Pages campaigns four
  objectives
• Introduce the new brand name and achieve
• 50 unaided brand awareness
• 80 aided brand awareness
• Exceed unaided ad recall norm of 14
• Improve consumer usage share above 85
• Increase revenues by 2.6

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Major Aspects of the Advertising Program

• Message development
• Called Creative Strategy
• Determine basic appeal
• Determine main message
• Media strategy
• Communication channels
• Type of media . . .
• Newspapers?
• Magazines?
• Radio?
• Television?
• Outdoor?
• Specific media . . .
• What specific papers, magazines, stations,
  billboards, or other media?

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Product Decisions

• A product is a bundle of benefits or values
• Product symbolism refers to what a product or
  brand means to customers
• Product quality, branding, packaging, and company
  name contribute to product image
• BRANDING
• Brand name communicates attributes and meaning
• Advertising creates and maintains brand equity
• PACKAGING
• Packaging has become increasingly important
• It is often the customers first exposure to
  product

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Pricing Decisions

• Price must be consistent with perceptions of the
  product
• Higher prices communicate higher product quality
• Lower prices reflect bargain or value
  perceptions
• A product positioned as high quality while
  carrying a lower price than competitors will
  confuse customers
• Price, advertising and distribution be unified in
  identifying the product position

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Distribution Channel Decisions

• Channel decisions involve
• Selecting
• Managing
• Motivating
• Independent intermediaries
• Wholesalers
• Distributors
• Brokers
• Retailers