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Integrated Marketing communications

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4 Hour session on Marketing Communications

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Integrated Marketing communications

  1. 1. Marketing Communications
  2. 2. Overview <ul><li>Introduction to Integrated Marketing Communications (IMC) </li></ul><ul><li>Definitions </li></ul><ul><li>The IMC Process </li></ul><ul><li>Planning & Implementation (IMC) </li></ul><ul><li>IMC mix and Media Integration </li></ul><ul><li>Mop up & Discussion </li></ul>2011 Tom Chapman
  3. 3. Traditional Marketing Communications (Finne & Grönroos 2009) 2011 Tom Chapman
  4. 4. The Emergence of IMC (Kitchen, Brignell, Li, & Jones, 2004, 19) <ul><li>Integrated Marketing Communications (IMC) seems to have passed through and still is passing through a conjectural storm as to its meaning and purpose. </li></ul><ul><li>…what is really needed, is the emergence of a new dynamic paradigm that will finally facilitate business movement to marketing communications (and the related range of activities) that are clearly in customer and consumer interests. Currently, IMC extends no more than a promise of this. </li></ul>2011 Tom Chapman
  5. 5. Importance <ul><li>Driver of competitive advantage </li></ul><ul><li>Integration of the Marketing Communications Mix using strengths to off set weaknesses </li></ul><ul><li>Changes in the media landscape, technology and data driven information and knowledge, globalization and agency structure and practice </li></ul><ul><li>“ Apparently, IMC increased communications impact, made creative ideas more effective, provided greater communication consistency, and agency executives believed integrated approaches could and would improve client return on investment.” Kitchen, Brignell, Li, & Jones, (2004, p21) </li></ul><ul><li>Rise of ‘push-pull’ marketing, rise of consumer to consumer marketing, commoditization and branding influence, difficulty of measurement and KPI, difficulty in managing various ICM elements & changing economic turbulence. ( Kitchen & Schultz, 2009) </li></ul>2011 Tom Chapman
  6. 6. Emerging trends impacting on marketers and markets in the twenty-first century. (Luck & Moffatt, 2009, p315) <ul><li>Globalisation </li></ul><ul><li>Market Forces </li></ul><ul><li>Communication </li></ul><ul><li>Customer Behaviour </li></ul><ul><li>Interactive Environment </li></ul><ul><li>Dislocation of Labour </li></ul><ul><li>Capital Flow </li></ul><ul><li>Fragmentation of traditional media </li></ul><ul><li>Emergence of new media </li></ul><ul><li>Simultaneous media exposure </li></ul>2011 Tom Chapman
  7. 7. Defining IMC ( Schultz, 1993a, p. 10) <ul><li>. . . a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communications disciplines (for example, general advertising, direct response, sales promotion, and public relations) and combines these disciplines to provide clarity, consistency, and maximum communications impact. </li></ul>2011 Tom Chapman
  8. 8. Defining IMC (Duncan, 2002, p. 7) <ul><li>... a process for managing the customer relationships that drive brand value. More specifically, it is a cross functional process for creating and nourishing profitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging data-driven, purposeful dialogue with them. </li></ul>2011 Tom Chapman
  9. 9. Defining IMC (Shimp, 2000) <ul><li>The primary goal of IMC is to affect behavior through directed communication. </li></ul><ul><li>The process should start with the customer or prospect and then work backward to the brand communicator. </li></ul><ul><li>IMC should use all forms of communication and all sources of brand or company contacts as prospective message delivery channels. </li></ul><ul><li>The need for synergy is paramount with coordination helping to achieve a strong brand image. </li></ul><ul><li>IMC requires that successful marketing communications needs to build a relationship between the brand and the customer. </li></ul>2011 Tom Chapman
  10. 10. Defining IMC <ul><li>A single message, a singular position through a range of tools, from a customer orientation or perspective </li></ul>2011 Tom Chapman
  11. 11. Exercise 2011 Tom Chapman
  12. 12. (Kitchen & Schultz, 2009, 198) <ul><li>“ for the first time in marketing history consumers were finally perceived to be a driving force in marketing activities and crucially important to the overall success of the entire organization. In the original concept of IMC, there was an implied emphasis on the customer, that is, the assumption that integrating communication elements would be of value to both consumers / end users and the marketing organization as well.” </li></ul>2011 Tom Chapman
  13. 13. One Size Does Not Fit All, the case of DELL <ul><li>High Involvement </li></ul>Purchase Low Involvement Relationship Transactional 1 to Many Comms 1 to 1 Comms Internal Product Focus External Customer Focus Internal Sales External Sales Low Value High Value Awareness eShots Newsletters FTF Meetings Whitepapers Sales Enablement Keynotes Webinars Events Integrated Messaging PR Value Prop PPTs Demos Thought Leadership Backgrounders Case Studies Consideration Dell.com Customer / Solution Videos Podcasts Community / Web 2.0 2011 Tom Chapman
  14. 14. False Dawn ( Kitchen & Schultz, 2009) <ul><li>No widespread agreement on definition or process </li></ul><ul><li>No widespread agreement on metrics or KPI </li></ul><ul><li>Still too much tactical / internal focus with too little attention on consumer insight </li></ul><ul><li>Hiding the ‘old dogs’ of Advertising and PR with little true consideration of changes in the external environment </li></ul><ul><li>Marketing is seen as a cost </li></ul>2011 Tom Chapman
  15. 15. Exercise & Break 2011 Tom Chapman
  16. 16. Pickton & Broderick AM2010 2011 Tom Chapman
  17. 17. Pickton & Broderick AM2010 IMC Process 2011 Tom Chapman
  18. 18. Planning & Implementation (IMC) 2011
  19. 19. Caemmerer (2009) 2011 Tom Chapman
  20. 20. 2011
  21. 21. Barriers to implementation (Gurau 2008, 172) <ul><li>Lack of horizontal communication </li></ul><ul><li>Functional specialisation </li></ul><ul><li>Decentralisation; </li></ul><ul><li>Lack of IMC planning and expertise </li></ul><ul><li>Lack of budget </li></ul><ul><li>Lack of database technology </li></ul><ul><li>Corporate culture </li></ul><ul><li>Fear of change. </li></ul>2011 Tom Chapman
  22. 22. Exercise 2011 Tom Chapman
  23. 23. The Consumer Pespective <ul><li>“ With the power to receive the information shifted to the receivers, marketers must design the message to capture the needs of their audience.” Hongcharu (2011, 33) </li></ul><ul><li>“ Key to the issue of IMC is the fact that the consumer does not see advertising, public relations, sales promotion, and other marketing techniques as separate and divisible components.” (Yeshin, 1998 cited Zvobgo & Melewar 2011, 2) </li></ul>2011 Tom Chapman
  24. 24. Zvobgo & Melewar (2011, 3) <ul><li>“ Respective employees should be given new skills, both on the part of those determining the strategy and tactics, as well as those responsible for the implementation of the resulting campaign (Yeshin, 1998). ... Effective integration is only possible if databases are developed about each customer’s activities, purchases, and company interactions over time (Linton & Morley, 1995; Schultz, 1998; Zahay, Mason, & Schibrowsky, 2009) ” </li></ul>2011 Tom Chapman
  25. 25. Exercise & Break 2011 Tom Chapman
  26. 26. IMC Mix 2011 Tom Chapman
  27. 27. Major communication types (Keller 2009) <ul><li>Advertising – any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. </li></ul><ul><li>Sales promotion – a variety of short-term incentives to encourage trial or purchase of a product or service. </li></ul><ul><li>Events and experiences – company-sponsored activities and programs designed to create daily or special brand-related interactions. </li></ul><ul><li>Public relations and publicity – a variety of programs designed to promote or protect a company’s image or its individual products. </li></ul>2011 Tom Chapman
  28. 28. Major communication types (Keller 2009) <ul><li>Direct marketing – use of mail, telephone, fax, email or Internet to communicate directly with or solicit response or dialogue from specific customers and prospects. </li></ul><ul><li>Interactive marketing – on-line activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image or elicit sales of products and services. </li></ul><ul><li>Word-of-mouth marketing – people-to-people oral, written or electronic communications which relate to the merits or experiences of purchasing or using products or services. </li></ul><ul><li>Personal selling – face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions and procuring orders. </li></ul>2011 Tom Chapman
  29. 29. Interactive options (Keller 2009) <ul><li>Websites – companies must design websites that embody or express their purpose, history, products and vision. A key challenge is designing a site that is attractive on first viewing and interesting enough to encourage repeat visits. </li></ul><ul><li>Microsites – a microsite is a limited area on the Web managed and paid for by an external advertiser/company. Microsites are individual Web pages or cluster of pages that function as supplements to a primary site. </li></ul><ul><li>Search ads – paid-search or pay-per-click ads, represent 40% of all on-line ads. Thirty-five percent of all searches are reportedly for products or services. The search terms serve as a proxy for the consumer’s consumption interests and trigger relevant links to product or service offerings alongside search results from Google, MSN and Yahoo!. Advertisers pay only if people click on the links. </li></ul><ul><li>Display ads – display ads or banner ads are small, rectangular boxes containing text and perhaps a picture that companies pay to place on relevant websites. The larger the audience, the more the placement costs. Some banners are accepted on a barter basis. </li></ul><ul><li>Interstitials – interstitials are advertisements, often with video or animation, that pop up between changes on a website, e.g. ads for Johnson & Johnson’s Tylenol headache reliever would pop up on brokers’ websites whenever the stock market fell by 100 points or more. </li></ul>2011 Tom Chapman
  30. 30. Interactive options (Keller 2009) <ul><li>Internet-specific ads and videos – with user-generated content sites such as YouTube, MySpace Video and Google Video, consumers and advertisers can upload ads and videos to be shared virally by millions of people. </li></ul><ul><li>Sponsorships – many companies get their name on the Internet by sponsoring special content on websites that carry news, financial information and so on. </li></ul><ul><li>Alliances – when one Internet company works with another, they end up advertising each other through alliances and affiliate programs. </li></ul><ul><li>On-line communities – many companies sponsor on-line communities whose members communicate through postings, instant messaging and chat discussions about special interests related to the company’s products and brands. </li></ul><ul><li>E-mail – e-mail uses only a fraction of the cost of a ‘d-mail’, or direct mail campaign. </li></ul><ul><li>Mobile marketing – in developing countries especially, mobile phone marketing will become increasingly important. </li></ul>2011 Tom Chapman
  31. 31. Media Integration 2011 Tom Chapman
  32. 32. 2011 Tom Chapman
  33. 33. 2011 Tom Chapman
  34. 34. 2011 Tom Chapman
  35. 35. Implications of digital media for IMC ( Mulhern, 2009) <ul><li>Consumer Insight - “In a digital environment, consumer insight becomes not something that is done at a certain point in time… but something that is always taking place” p93 </li></ul><ul><li>Data-driven planning (evidence-based decision making) </li></ul><ul><ul><li>Customer valuation and segmentation </li></ul></ul><ul><ul><li>Customer response analysis </li></ul></ul><ul><ul><li>Market intelligence </li></ul></ul><ul><ul><li>Financial models </li></ul></ul><ul><li>Cross-media integration </li></ul><ul><li>Communications to multiple stakeholders. </li></ul>2011 Tom Chapman
  36. 36. The Future ( Mulhern, 2009, p99) <ul><li>In a digital era, the viewpoint of media as communications channels cannot be sustained. One reason is that there are too many communication channels now available for any media planner to effectively allocate communications across them. More importantly, the media-as-channels framework fails to incorporate several of the dimensions… </li></ul><ul><li>The evolution of media beyond information and entertainment to include other digital services and experiences. </li></ul><ul><li>The ability of organizations of all types to communicate directly with consumers and other stakeholders, without the need for traditional media organizations. </li></ul>2011 Tom Chapman
  37. 37. The Future ( Mulhern, 2009, p99) cont... <ul><li>The networking of communications among audience members and the ability of people to exchange information directly with each other. </li></ul><ul><li>The availability of continuous streams of data about consumer purchase and media use behaviors. </li></ul><ul><li>The expansion of mediated experiences beyond what media companies generate and control. </li></ul><ul><li>The replacement of outbound media channels with multi-dimensional communication networks. </li></ul><ul><li>The blending of commercial and noncommercial content – not just branded entertainment but the inclusion of noncommercial information in ads. </li></ul>2011 Tom Chapman
  38. 38. References <ul><li>Caemmerer, B. (2009). The planning and implementation of integrated marketing communications. Marketing Intelligence & Planning , 27 (4), 524-538 </li></ul><ul><li>Duncan, T. (2002) IMC: Using Advertising and Promotion to Build Brands (International Edition). New York: The McGraw-Hill Companies, Inc., 2002. </li></ul><ul><li>Finne, A., & Grönroos, C. (2009). Rethinking marketing communication: From integrated marketing communication to relationship communication. Journal of Marketing Communications 15 (2-3), 179-195 </li></ul><ul><li>Gurau, C. (2008). Integrated online marketing communication: implementation and management. Journal of Communication Management 12 (2), 169-184 </li></ul><ul><li>Hongcharu, B. (2011). A Comparative Study Of Traditional Mass Media, The Internet And Mobile Phones For Integrated Marketing Communications. Journal of Business & Economics Research 7 (12), 31-40 </li></ul>2011 Tom Chapman
  39. 39. References <ul><li>Keller, K. L. (2009). Building strong brands in a modern marketing communications environment. Journal of Marketing Communications Journal of Marketing Communications , Journal of Marketing Communications 15 (2-3), 139-155. </li></ul><ul><li>Kitchen, P. J., Brignell, J., Li, T. & Jones, G. S. (2004) The Emergence of IMC: A Theoretical Perspective. Journal of Advertising Research 44 , 19-30 </li></ul><ul><li>Kitchen, P. J., & Schultz, D. E. (2009). IMC: New horizon/false dawn for a marketplace in turmoil. Journal of Marketing Communications , 15 (2/3), 197-204. </li></ul><ul><li>Luck, E. M., & Moffatt, J. J. (2009). IMC: Has anything really changed? A new perspective on an old definition. The Journal of Marketing Communications , 15 (3). </li></ul>2011 Tom Chapman
  40. 40. References <ul><li>Mulhern, F. (2009). Integrated marketing communications: From media channels to digital connectivity. Journal of Marketing Communications , 15 (2-3), 85-101. </li></ul><ul><li>Schultz, D. E. (1993) “ Integrated Marketing Communications: Maybe Definition Is in the Point of View. ” Marketing News , January 18, 1993 </li></ul><ul><li>Shimp, T. A. (2000) Advertising Promotion: Supplemental Aspects of Integrated Marketing Communications 5th ed. Fort Worth, TX: The Dryden Press, Harcourt College Publishers, 2000. </li></ul><ul><li>Zvobgo, M., & Melewar, T. C. (2011). Drivers of Globally Integrated Marketing Communications: A Review of Literature and Research Propositions. Journal of Promotion Management , 17 (1), 1-20. </li></ul>2011 Tom Chapman

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