Integrated Marketing Communications Courtesy: Abhishek Sharma PGDMM Gujarat University 1
Kotler on Marketing:Integrated marketingcommunications is a way of lookingat the whole marketing process fromthe viewpoint of the customer.
4A’s on Marketing American Association of Advertising Agencies (the “4As”): A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines— for example, general advertising, direct response, sales promotion, and public relations—and combines these disciplines to provide clarity, consistency, and maximum communications impact. 3
Evolution of IMC• During the 1980s, many companies came to see the need for more of a strategic integration of their promotional tools• To coordinate the use of a variety of promotional tools rather than relying primarily on media advertising• IMC offers one-stop shopping for all their clients’ promotional needs. 4
Relevance of IMC Better synergy among various promotional functions. Companies can avoid duplication. To maximize the return on its investment in marketing and promotion Changes in the Target Group (Customers) New Technological Advancements 5
Factors responsible for Rapid Growth of IMC Allocation of funds from media advertising to other forms of promotion, particularly consumer- and trade-oriented sales promotions. A shift from traditional ways of relying on advertising- focused approaches. A shift in marketplace power from manufacturers to 6 retailers.
Factors responsible for Rapid Growth of IMC (Contd) The rapid growth and development of database marketing. Demands for greater accountability from advertising agencies and changes in the way agencies are compensated. The phenomenal rise of the Internet. 7
The Role of IMC in Branding• People don’t buy products, they buy brands…• Brand Equity & Brand Identity• Edge to the companies in the Cut throat Competition• Direct connect with the end customer 8
The Promotional Mix: The Tools for IMC 9
Promotion Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. 10
Promotional Strategy / Promotional Mix A plan for the optimal use of the elements of promotional mix: Advertising Direct Marketing Publicity / Public Relations Personal Selling Sales Promotion
Advertising Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.
Advertising MediaTraditional ElectronicAdvertising Media Advertising Media Television Internet Radio Computer modems Newspapers Fax machines Magazines Books Direct mail Billboards Transit cards
Public Relations The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.
Public Relations Functions of Public RelationsEvaluates public Executes programsattitudes to “win” public Identifies areas of public interest 15
Publicity Public information about a company, good, or service appearing in the mass media as a news item. 16
Sales Promotion Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness. 17
Personal Selling Planned presentation to one or more prospective buyers for the purpose of making a sale. 20
Elements of Promotional Mix in a NutshellAdvertising Sales Public Personal Direct Promotion Relations Selling MarketingPrint and Contests, Press kits Sales Catalogsbroadcast ads games, presentation sweepstakes, lotteriesPackaging- Premiums and Speeches Sales Mailingsouter gifts meetingsPackaging Sampling Seminars Incentive Telemarketinginserts programsMotion Fairs and Annual reports Samples Electronicpictures trade shows shopping
Communication The process by which we exchange or share meanings through a common set of symbols. 22
Marketing Communication Categories of CommunicationInterpersonal MassCommunication Communication 23
The Communication Process As Senders As ReceiversInform Develop messagesPersuade Adapt messagesRemind Spot new communication opportunities 24
The Sender and Encoding The originator of the message in theSender communication process. The conversion of a sender’s ideas andEncoding thoughts into a message, usually in the form of words or signs. 25
The Communication Process Noise Encoding Message DecodingSender Receiver Message Channel Message Message Channel 26
The AIDA Concept Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. 27
The AIDA Concept Action Desire Interest Attention 28
Factors Affecting the Promotional Mix Nature of Product Stage in PLC Target Market FactorsFactors Type of Buying DecisionAffectingChoice of Promotion FundsPromotional Mix 29
Integrated Marketing Communications A method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused. 30