Introduction to IMC - Integrated Marketing Communications PDF

Preview

Summary

Integrated Marketing Communications...

Description

TOPIC 1 INTRODUCTION TO INTEGRATED MARKETING COMMUNICATIONS

Introducing Integrated Marketing Communications Marketing Communications enjoys the highest profile of all elements of the marketing mix. It is better known as “promotion”. It sets out to influence the perceptions, understanding and actions of the target audience. Marketing Communications can be defined as Marketing Communications is an audience centred activity which attempts to encourage engagement between participants and provoke conversations. (Clow and Baack 2016)

Integrated Marketing Communications Integrated Marketing Communications is the coordination and integration of all marketing communication tools, avenues and sources within a company into a seamless program which maximizes the impact on consumers and other end-users at a minimal cost. The IMC includes all business-to-business, channel, customer, external communications and internal communications. (Clow and Baack 2016)

1

Reasons for the Growing Importance of IMC The IMC movement is being driven by a “marketing revolution” that is changing the ways companies market their products and services. Major characteristics of this marketing revolution include:

1. Increase in micro marketing

2. Integration of information by consumers

3. Brand Parity

4. Increase in competition 5. Changes in channel power 6. Development of Information technology

The Promotional Mix Traditional Promotional Mix 1. Advertising – Rational and Emotional Appeals 2. Sales Promotion – Sales Orientated and Trade Orientated sales promotion 3. Direct Marketing 4. Sponsorship 5. Public Relations 6. Personal Selling

E- Active Marketing Social Networks & Blogs Twitter Marketing & snapchat Viral Marketing

Alternative Marketing Product Placement Ambient Media In Game Advertising

2

What is to be integrated? Communication tools: the key visual triggers used in advertising should be replicated across the range of promotional tools used.

Messages: the theme and set of core messages used in any campaign should first be determined and then deployed as an integrated whole across the communication mix.

Marketing Mix: the elements of the marketing mix, however configured need to be integrated.

Branding: brands are themselves a form of integration

Strategy: there is no right way (or formula) to establish IMC, examine MM elements

Employees: training, delivery of messages, consistency, appearance, professionalism, service

Technology: technology needs to be integrated into not just the overall information systems strategy but also the marketing strategies of organizations

Agencies: a move to IMC requires a change in agency performance measures.

Perspectives on IMC The content perspective assumes that message consistency is the major goal in order to achieve the ‘one voice, one look’ position

3

The process perspective of IMC is rooted in the belief that real IMC can only be generated through an organisational structure that brings the various communication disciplines together.

Advantages and disadvantages of IMC – Clow and Baack 2016

Advantages of IMC 

Potential to produce synergistic and more effective communications



Can develop a competitive advantage through clearer positioning



Encourages coordinated brand development with internal and external participants



Has the potential to cause management to review its communications strategy



Requires a change in culture and fosters a customer focus



Provides a benchmark for the development of communication activities



Can lead to a cut in the number of agencies supporting a brand

Disadvantages of IMC 

Encourages centralisation and formal/bureaucratic procedures



Can require increased management time seeking agreement from all involves parties



Suggests uniformity and a single message



Tendency to standardisation might negate or dilute creative opportunities



Global brands restricted in term of local adaptation



Had the potential to severely damage a brands reputation if incorrectly managed



Can lead to mediocrity as no single agency has access to all sources of communication.

4

Promotional Management “The process of coordinating the promotional mix elements to develop a controlled and integrated programme of effective marketing communication” (Clow and Baack 2016) Promotions Opportunity Analysis Promotions Opportunity Analysis is the process by which marketers identify target audiences for the goods and services produced by the company. There are two objectives. 1. Determine which promotional opportunities exist for the company. 2. Identify the characteristics of each target audience so consumers can be reached with coherent advertising and marketing communications messages.

Once the overall marketing plan is established, the firm is ready to seek out new promotional opportunities. There are five steps in developing a Promotions Opportunity Analysis. They are: 1.

Conducting a Communication Marketing Analysis.

2.

Establishing objectives.

3.

Creating a budget.

4.

Preparing a promotional strategy.

5.

Matching tactics with the strategy.

1. Communication Market Analysis Communication Market Analysis is the process of discovering the organisation’s strengths and weaknesses in the area of marketing communication, and combining that information with an analysis of opportunities and threats that are present in the firm’s external environment. Examine competitors, customers, target markets, product positioning.

2. Establishing Marketing Communication Objectives 5

The most common marketing communications objectives that firms establish are: 

Develop brand awareness



Increase product/service category demand



Change customer beliefs or attitudes



Encourage repeat purchases



Build customer traffic



Enhance firm image



Increase sales

3. Establishing a Communication’s Budget Types of Budgets 1. Percentage of Sales Method a. Sales from the previous year b. Anticipated sales for the next year 2.

Meet-the-Competition Method

3.

“What we Can Afford” Method

4. Objective and Task Method 5. Payout Planning 6. Quantitative Models

4. Promotional Strategies Strategies are sweeping guidelines concerning the essence of the company’s marketing efforts. Strategies provide the long-term direction for all marketing activities. Message theme and strategy of the brand.

5. Matching Tactics with Strategies

6

Tactics are the things companies do to support overall promotional strategies. Tactics include promotional campaigns designed around themes, which are based on strategic objectives. Methods used in tactical campaigns include:



Advertisements based on the major theme or a subtheme



Personal selling enticements



Sales promotions (posters, point-of-purchase displays, end-of-aisle displays, freestanding displays)



Special product packaging and labelling



Price Changes

The following efforts can be included in tactical efforts: 

Coupons



Contests and prizes



Volume discounts



Gift certificates

Market Segmentation Rational for Segmenting Markets 1) Target market selection – Provides a basis for the selection of the target markets. A target market is a chosen segment of the market that the company has decided to serve. 2) Tailored marketing mix- Grouping of consumers based upon similarities is important when applying marketing strategies. 3) Differentiation – Market segmentation allows the development of differential marketing strategies to be offered by the organisation. 4) Opportunities and Threats – Markets are rarely stagnant. As customers become more affluent, seek new experiences and develop new values, new segments emerge.

7

LEVELS OF MARKET SEGMENTATION 

Mass Marketing: Mass-producing, mass promotions and mass distribution of the same product to all consumers.



Segment Marketing: Isolating broad segments that can make up a market and adapting the marketing to match the needs of one of those segments.



Niche marketing: Focusing on sub segments/niches with distinctive traits that may seek a special combination of benefits.



Micro-marketing: The practice of tailoring products and marketing programmes to suit specific individuals and circumstances.

Traditionally there are five main bases to segment the market: 

Demographic



Psychographics



Behavioural



Geographic



Benefit

International Implications 

Goal – to coordinate marketing efforts



Greater challenge due to national and cultural differences



Standardization versus Adaptation



“Think globally, but act locally”

Ethical Issues in Marketing Communications 1. Marketing causes people to buy more than they can afford. 8

2. Marketing overemphasises materialism. 3. Marketing increases the costs of goods and services 4. Marketing perpetuates stereotyping. 5. Marketers create offensive advertisements. 6. Marketing creates advertisements linked to bad habits and intimate subjects 7. Marketers use unfair tactics 8. Marketers Prepare Deceptive and Misleading Advertisements 9. Advertising professional services is unethical 10. Advertising to children is unethical. 11. Salespeople use deceptive practices.

References: Clow and Baack, 2016 Integrated Adertising, Promotion and Marketing Communications Pearson

Fill, 2013 Marketing Communications brands, experiences and participation 6th Edition

9...