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Role of Integrated Marketing
            Communications
                     Overview
A Definition
 Integrated Marketing Communication…..
 is a process for planning, executing &
   monitoring the brand messages that
   create customer relationships
  Duncan, Principles of Advertising & IMC, 2005:17
Integrated Marketing Communication (IMC)

  IMC “is the coordination and integration of all
  marketing communication tools, avenues, and
  sources within a company into a seamless
  program that maximizes the impact on consumers
  and other end users at a minimal cost” (Clow &
  Baack, 2007, p. 8).




                                                3
Mont Blanc use a variety of marketing mix elements, including
price, product, design, brand name and distribution strategy to
create high-quality, upscale usage image for its pens.




                Mont Blanc
Impact of IMC

 IMC plays a role in all:
 §  Business-to-business (B2B) interactions.
 §  Marketing channel communications.
 §  Customer-focused communications.
 §  Internally directed communications.




                                                5
The Goal of IMC

 As with all marketing activities, the goal of IMC
   is to build brands.
 Brands that are well known and liked are more
   likely to be purchased → increase profit
   margins.
 Brand Equity: “the intangible value of a brand
   – value added to a product or service that
   derives from a perception in customer’s
   minds” (Duncan, 2005, p. 8).


                                                     6
Benefits of IMC

 IMC provides greater:
 §  Brand differentiation.
 §  Accountability within a firm.
 §  Trust among consumers.
 §  Levels of effectiveness in cutting through
     message clutter than single strategies.




                                                  7
The Changing World of MC
        Old World                         New World

    “Talking At” Consumers        Two-way Dialogue With Consumers




                                     Focus on Building Long Term
Focus on Winning New Customers      Relationships With Consumers




  Marketers Relied Primarily on     Marketers Use and Coordinate
                                      Many Different Forms of
   Advertising and Promotions      Communication With Consumers



                                                                   8
IMC – The Evolution
                 Mass Marketing
            Using mass communication

                        to

               Relationship Marketing
  Using integrated marketing communication with a
                  focus on interaction
What trends are driving integration?
           External                       Internal
 •  Brand & product
    proliferation              •  Expertise
 •  Customisation              •  Corporate missions
 •  Decreasing brand loyalty   •  Communication
 •  Price sensitivity             technology
 •  More demand, less trust
 •  Clutter                    •  Benefits to be gained
 •  Service Economics
 •  Rising Costs &
    Accountability
Interaction Model
                                                                                            Environment	
  
                                                                                            Market	
  structure	
  
                                                                                            Dynamism	
  
                                                                                            Interna1onalisa1on	
  
                                                                                            Channel	
  posi1on	
  
                                                                                            Social	
  system	
  
                                                                                            Atmosphere	
  
                                                                                            Power/dependence	
  
                                                                                            Co-­‐opera1on	
  
                                                                                            Closeness	
  
                                                                                            Expecta1ons	
  
              Organiza(on	
                                                                                                                                            Organization
              	
  	
  	
  Technology	
                        Long	
  term	
  rela1onships	
                                                                             Technology
              	
  	
  	
  	
  Structure	
                     Ins1tu1onalisa1on,	
  Adapta1ons	
                                                                          Structure
              	
  	
  	
  	
  Strategy	
                                                                                                                                  Strategy
              	
  
                                                                         Interac(on	
  Process	
  
              Individual	
                                                                                                                                              Individual
              	
  	
  	
  	
  	
  Aims	
                                                                                                                                   Aims
              	
  	
  Experience	
            Short	
  term	
  exchange	
  episodes	
                                                                                    Experience
                                              	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Products/services	
  	
  
              	
  	
  	
  	
  Skills	
                                                                                                                                     Skills
                                              	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Informa1on	
  	
  
                                              	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Financial	
  
                                              	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Social	
  




Source: Adapted with permission from Håkansson (1982, p24)
IOR	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Marke1ng	
  	
  	
  	
  	
  Supply/Demand	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Industrial	
  Network	
  
                   	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Channel	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Chain	
  

Upstream	
  
suppliers	
  
	
  
	
  
	
  
Direct	
  	
                                                                                                                         	
  	
  	
  	
  Supply	
  
suppliers	
                                                                                                                          	
  	
  	
  network	
  
	
                                                                                                                                   	
  
	
                                                                                                                                   	
  
	
                                                                                                                                   	
  
	
                                                                                                                                   	
  
Manu-­‐                                                                                                                              	
  
facturers	
                                                                                                                          	
  
	
                                                                                                                                   	
  
	
                                                                                                                                   	
  
	
                                                                                                                                   	
  
	
                                                                                                                                   	
  
Distributors	
                                                                                                                       	
  
	
                                                                                                                                   Distribu2on	
  	
  
	
                                                                                                                                   	
  	
  	
  network	
  
	
  
	
  
	
  
Customers	
  




Fig 5.2 – From IOR to channel to chain to network
IMC & the need for integration
 •  Covers a number different media and strategies
 •  TV, radio, Direct, PR, social media etc
 •  Selective combination of appropriate types of
    communication
 •  Meeting a common set of objectives for the brand
 •  Integration over time with regard to customers
 •  Integration provides synergy
Integration and Synergy

                 Integration     =         Synergy


  When brand
                         …they reinforce each   … and create a
  messages are
                         other…                 synergy effect like:
  integrated…




                                                                       14
The Marketing Communication Matrix
                           Ballantyne, Luxton, Powell (2004) Introduction to Marketing: A value
                           exchange approach ed Gabbott, Pearson:381

                        Mass Market          Segmented/Mass                       Individual
                                             Customisation

 2-way
communication
 An interactive
approach (listening &
learning including
informal dialogue
initiated by planned
messages)

 1-way
communication
 Conventional mass
marketing
The Importance of Integration

§ Integration begins with the way a company and its
   agencies organise the process for creating and
   delivering brand messages.
§ All participants involved in creating and delivering
   brand messages must work together:
    §  The company,
    §  Company agencies,
    §  The media,
    §  Channel members, and
    §  MC support services.

                                                          16
17
The Key Players in the IMC Process




                                     18
Organisations: Nike as an example


                     B2B

        Nike’s Relationship with shoe
           retailers like Foot Locker


                     B2C

    Niketown stores selling shoes directly
               to consumers
                                             19
The 8 Key Functions of Marketing
Communication
 §    Advertising
 §    Direct marketing
 §    Publicity (public relations)
 §    Sales promotion
 §    Personal selling
 §    Internet/ Social media
 §    Events and sponsorships
 §    Packaging
                                      20
What is Advertising?
 •  Consumer & B2B different
 •  Refers to space/time for which a price is paid by
    the advertiser to the media owner
 •  Refers to messages over which the medium
    exercises no editorial control (other than accept/
    reject)
 •  Media=TV, radio, cinema, newspapers & mags,
    outdoor, digital & ambient
 •  Is conventional advertising under threat?
What is Direct Marketing?
 •  Selected & selective distribution & communication
    channel
 •  Direct Response & interactive
 •  Media involved
     •  Print
     •  TV (digital)
     •  Telemarketing
     •  Internet (includes viral, blogging)
 •  Is junk mail Direct Marketing?
 •  Where does podcasting fit in?
 •  Are online social networks the most direct?
Publicity & Public Relations

“Publicity is stories and brand mentions delivered by
the mass media without charge” (Duncan, 2005, p.
10).
Public Relations “are communication activities that
help an organization and its publics adapt mutually to
each other” in an effort to gain the support and
cooperation of those publics” (Duncan, 2005, p. 10).




                          Source: http://commercial-archive.com/132015.php   23
What is Brand Public Relations?
 •  All the company’s efforts to foster
    better relations with its various publics
    or stakeholders, beyond relationships
    necessitated by sales transactions
 •  Is it the same as publicity?
What is Sales Promotion?
 •  Can take many forms (samples, bonus
    packs, sweepstakes, coupons, competitions
    etc etc)
 •  Targeted at trade & customers
 •  Short term focus
 •  Are “Price Offs” sales promotion?
Personal Selling?
 •  Social selling
 •  Customer retention
 •  Customer acquisition
 •  Referrals and Cross selling
Internet / Social Media
 •  True One on Marketing
 •  Co-creating with customer
 •  I.e. Face book, twitter, Utube, Linkedin,
    Slideshare etc
Events & Sponsorships

Events: A highly targeted brand-associated activity
  designed to actively engage customers and
  prospects and generate publicity
Example: Harley Owners Group motorcycle rallies.

Sponsorships: Financial support for an organisation,
  person, or activity in exchange for brand publicity
  and association
Example: Nike’s sponsorship of Tiger Woods.

                                                        28
Packaging
 •  Communicates value and quality
 •  Protects product
 •  Ways of differentiating product
 •  Visually impactful
Message Clutter and IMC
Developing the Integrated Marketing
Communication Program

•  Being critically aware of the planning
   process as a process
•  Evaluating the outcomes
•  Monitoring and Control
  •  Eg. continuous tracking
Integrated Marketing Communications
Model
Key Success Factors in IMC
 Smith (1996) put forward a summary of the guidelines for
   effective integration:
    –  Ensure senior management understanding & support for IMC
       implementation
    –  Ensure IMC is implemented horizontally
    –  Ensure common visual standards are maintained
    –  Have clear communications objectives, clear positioning
       statements, & link core brand values into every communication
    –  Start with a zero budget and build communications plan around
       objectives
    –  Design communications around the customer's buying process
    –  Ensure all communications help to develop stronger relationships
       and brand values with customers
    –  Develop a good marketing information system
    –  Share artwork & other media
    –  Be prepared to change it all
Summary
 •    A Definition
 •    Trends influencing IMC
 •    Elements of IMC & Definitions
 •    The Marketing Communication Planning
      Process
Conclusion
 •  Don’t think too narrowly
     •  Communication is not merely advertising
 •  Think outside the box
     •  What does the brave new world of the 21st
        century hold for us?
You are welcome to contact Nigel Bairstow at B2B
Whiteboard your source of B2B Asia / Pacific
marketing advice

http://www.linkedin.com/pub/nigel-bairstow/6/41b/726

http://twitter.com/#!/b2bwhiteboard

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The Role of Integrated Marketing Communications

  • 1. Role of Integrated Marketing Communications Overview
  • 2. A Definition Integrated Marketing Communication….. is a process for planning, executing & monitoring the brand messages that create customer relationships Duncan, Principles of Advertising & IMC, 2005:17
  • 3. Integrated Marketing Communication (IMC) IMC “is the coordination and integration of all marketing communication tools, avenues, and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost” (Clow & Baack, 2007, p. 8). 3
  • 4. Mont Blanc use a variety of marketing mix elements, including price, product, design, brand name and distribution strategy to create high-quality, upscale usage image for its pens. Mont Blanc
  • 5. Impact of IMC IMC plays a role in all: §  Business-to-business (B2B) interactions. §  Marketing channel communications. §  Customer-focused communications. §  Internally directed communications. 5
  • 6. The Goal of IMC As with all marketing activities, the goal of IMC is to build brands. Brands that are well known and liked are more likely to be purchased → increase profit margins. Brand Equity: “the intangible value of a brand – value added to a product or service that derives from a perception in customer’s minds” (Duncan, 2005, p. 8). 6
  • 7. Benefits of IMC IMC provides greater: §  Brand differentiation. §  Accountability within a firm. §  Trust among consumers. §  Levels of effectiveness in cutting through message clutter than single strategies. 7
  • 8. The Changing World of MC Old World New World “Talking At” Consumers Two-way Dialogue With Consumers Focus on Building Long Term Focus on Winning New Customers Relationships With Consumers Marketers Relied Primarily on Marketers Use and Coordinate Many Different Forms of Advertising and Promotions Communication With Consumers 8
  • 9. IMC – The Evolution Mass Marketing Using mass communication to Relationship Marketing Using integrated marketing communication with a focus on interaction
  • 10. What trends are driving integration? External Internal •  Brand & product proliferation •  Expertise •  Customisation •  Corporate missions •  Decreasing brand loyalty •  Communication •  Price sensitivity technology •  More demand, less trust •  Clutter •  Benefits to be gained •  Service Economics •  Rising Costs & Accountability
  • 11. Interaction Model Environment   Market  structure   Dynamism   Interna1onalisa1on   Channel  posi1on   Social  system   Atmosphere   Power/dependence   Co-­‐opera1on   Closeness   Expecta1ons   Organiza(on   Organization      Technology   Long  term  rela1onships   Technology        Structure   Ins1tu1onalisa1on,  Adapta1ons   Structure        Strategy   Strategy   Interac(on  Process   Individual   Individual          Aims   Aims    Experience   Short  term  exchange  episodes   Experience                                      Products/services            Skills   Skills                                                Informa1on                                                      Financial                                                        Social   Source: Adapted with permission from Håkansson (1982, p24)
  • 12. IOR                      Marke1ng          Supply/Demand                                                Industrial  Network                                        Channel                          Chain   Upstream   suppliers         Direct            Supply   suppliers        network                   Manu-­‐   facturers                     Distributors       Distribu2on            network         Customers   Fig 5.2 – From IOR to channel to chain to network
  • 13. IMC & the need for integration •  Covers a number different media and strategies •  TV, radio, Direct, PR, social media etc •  Selective combination of appropriate types of communication •  Meeting a common set of objectives for the brand •  Integration over time with regard to customers •  Integration provides synergy
  • 14. Integration and Synergy Integration = Synergy When brand …they reinforce each … and create a messages are other… synergy effect like: integrated… 14
  • 15. The Marketing Communication Matrix Ballantyne, Luxton, Powell (2004) Introduction to Marketing: A value exchange approach ed Gabbott, Pearson:381 Mass Market Segmented/Mass Individual Customisation 2-way communication An interactive approach (listening & learning including informal dialogue initiated by planned messages) 1-way communication Conventional mass marketing
  • 16. The Importance of Integration § Integration begins with the way a company and its agencies organise the process for creating and delivering brand messages. § All participants involved in creating and delivering brand messages must work together: §  The company, §  Company agencies, §  The media, §  Channel members, and §  MC support services. 16
  • 17. 17
  • 18. The Key Players in the IMC Process 18
  • 19. Organisations: Nike as an example B2B Nike’s Relationship with shoe retailers like Foot Locker B2C Niketown stores selling shoes directly to consumers 19
  • 20. The 8 Key Functions of Marketing Communication §  Advertising §  Direct marketing §  Publicity (public relations) §  Sales promotion §  Personal selling §  Internet/ Social media §  Events and sponsorships §  Packaging 20
  • 21. What is Advertising? •  Consumer & B2B different •  Refers to space/time for which a price is paid by the advertiser to the media owner •  Refers to messages over which the medium exercises no editorial control (other than accept/ reject) •  Media=TV, radio, cinema, newspapers & mags, outdoor, digital & ambient •  Is conventional advertising under threat?
  • 22. What is Direct Marketing? •  Selected & selective distribution & communication channel •  Direct Response & interactive •  Media involved •  Print •  TV (digital) •  Telemarketing •  Internet (includes viral, blogging) •  Is junk mail Direct Marketing? •  Where does podcasting fit in? •  Are online social networks the most direct?
  • 23. Publicity & Public Relations “Publicity is stories and brand mentions delivered by the mass media without charge” (Duncan, 2005, p. 10). Public Relations “are communication activities that help an organization and its publics adapt mutually to each other” in an effort to gain the support and cooperation of those publics” (Duncan, 2005, p. 10). Source: http://commercial-archive.com/132015.php 23
  • 24. What is Brand Public Relations? •  All the company’s efforts to foster better relations with its various publics or stakeholders, beyond relationships necessitated by sales transactions •  Is it the same as publicity?
  • 25. What is Sales Promotion? •  Can take many forms (samples, bonus packs, sweepstakes, coupons, competitions etc etc) •  Targeted at trade & customers •  Short term focus •  Are “Price Offs” sales promotion?
  • 26. Personal Selling? •  Social selling •  Customer retention •  Customer acquisition •  Referrals and Cross selling
  • 27. Internet / Social Media •  True One on Marketing •  Co-creating with customer •  I.e. Face book, twitter, Utube, Linkedin, Slideshare etc
  • 28. Events & Sponsorships Events: A highly targeted brand-associated activity designed to actively engage customers and prospects and generate publicity Example: Harley Owners Group motorcycle rallies. Sponsorships: Financial support for an organisation, person, or activity in exchange for brand publicity and association Example: Nike’s sponsorship of Tiger Woods. 28
  • 29. Packaging •  Communicates value and quality •  Protects product •  Ways of differentiating product •  Visually impactful
  • 31. Developing the Integrated Marketing Communication Program •  Being critically aware of the planning process as a process •  Evaluating the outcomes •  Monitoring and Control •  Eg. continuous tracking
  • 33. Key Success Factors in IMC Smith (1996) put forward a summary of the guidelines for effective integration: –  Ensure senior management understanding & support for IMC implementation –  Ensure IMC is implemented horizontally –  Ensure common visual standards are maintained –  Have clear communications objectives, clear positioning statements, & link core brand values into every communication –  Start with a zero budget and build communications plan around objectives –  Design communications around the customer's buying process –  Ensure all communications help to develop stronger relationships and brand values with customers –  Develop a good marketing information system –  Share artwork & other media –  Be prepared to change it all
  • 34. Summary •  A Definition •  Trends influencing IMC •  Elements of IMC & Definitions •  The Marketing Communication Planning Process
  • 35. Conclusion •  Don’t think too narrowly •  Communication is not merely advertising •  Think outside the box •  What does the brave new world of the 21st century hold for us?
  • 36. You are welcome to contact Nigel Bairstow at B2B Whiteboard your source of B2B Asia / Pacific marketing advice http://www.linkedin.com/pub/nigel-bairstow/6/41b/726 http://twitter.com/#!/b2bwhiteboard