VOC 198_LECTURE - 8 (2) (2).pptgggggggggggggggggg

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
VOC 198
PRINCIPLES OF
MARKETING FOR
COMMUNICATORS
SECTION 01
LECTURE – 8 (2)
Chapter 1
An Introduction to
Integrated
Marketing
Communications

1-2
Learning Objectives
 To examine the marketing communication function
and the growing importance of advertising and
other promotional elements in the marketing
programs of domestic and foreign companies
 To introduce the concept of integrated marketing
communications (IMC) and consider how it has
evolved

1-3
Learning Objectives
 To examine reasons for the increasing importance
of the IMC perspective in planning and executing
advertising and promotional programs
 To introduce the various elements of the
promotional mix and consider their roles in an IMC
program
 To examine the various types of contact points
through which marketers communicate with their
target audiences

1-4
Learning Objectives
 To examine how various marketing and
promotional elements must be coordinated to
communicate effectively
 To introduce a model of the IMC planning process
and examine the steps in developing a marketing
communications program

1-5
Marketing
 Activity, set of institutions, and processes for
creating, communicating, delivering and
exchanging offerings that have value for:
 Customers, clients, partners, and society at large
 Exchange: Involves parties with:
 Something of value to one another
 Desire and ability to give up something to the other
party
 Way to communicate with each other

1-6
Value
 Customer’s perception of benefits of a product or
service against the costs of acquiring and
consuming it
 Benefits are functional, experiential, and/or
psychological
 Costs - Money paid for:
 Acquiring a product or service or information about it
 Making the purchase and learning to use
 Maintaining and disposing the product

1-7
Marketing Mix
 Product, price, place, and promotion
 To develop an effective marketing mix, marketers
must:
 Be knowledgeable about the issues and options of
each element of the mix
 Know how to combine the elements to form an
effective marketing program
 Analyze the market and use the data to develop the
marketing strategy and mix

1-8
Integrated Marketing Communications
(IMC)
Coordinate various promotional elements and other marketing
activities that communicate with a firm’s customers
• Evaluates the strategic roles of a variety of communication disciplines
• Combines the disciplines to provide clarity, consistency, and maximum
communications impact
Recognizes the added value of a comprehensive plan that:
Ensures all marketing and promotional activities project a consistent,
unified image

1-9
(IMC)
 Criticism - Inside-out marketing approach
 Packs promotional mix elements together, making
them look and sound alike
 Contemporary perspective
 Goal - Generate short-term financial returns and
build long-term brand and shareholder value
 Views IMC ongoing strategic business process

1-10
Growing Importance of IMC
Strategically integrates the various communications functions
Avoids duplication and takes advantage of synergy among
promotional tools
Develops more efficient and effective marketing
communications programs
• Evolution to micromarketing
• Consumers’ unresponsiveness to traditional advertising
• Changing rules of marketing
Changing environment

1-11
(IMC): Role in Branding
Helps develop and sustain brand identity and
equity
Recognizes the need for companies to connect
with consumers based on trust, transparency, and
authenticity

1-12
Promotional Mix
 Tools that accomplish an organization’s
communication objectives
 Promotion: Coordination of all seller-initiated
efforts to:
 Set up channels of information and persuasion
 Sell goods and services or promote an idea

1-13
Figure 1.2 - Elements of the
Promotional Mix

1-14
Advertising
 Any paid form of nonpersonal communication:
 About an organization, product, or service
 With an idea from an identified sponsor
 Nonpersonal
 Involves mass media
 Message is transmitted to large groups of individuals
 No opportunity for immediate feedback

1-15
Benefits of Advertising
Most cost-effective way to reach large numbers of
consumers
Builds brand equity by influencing consumers’
perceptions

1-16
Advertising to Consumer Markets
National advertising
• Done on a nationwide basis or in most regions of the country
Retail/local advertising - Encourage consumers to:
• Shop at a specific store
• Use a local service
• Patronize a particular establishment
Primary- versus selective-demand advertising
• Primary-demand - Stimulates demand for the general product class or
entire industry
• Selective-demand - Creates demand for a specific company’s brands

1-17
Advertising to Business and
Professional Markets
• Targets individuals who buy or influence the purchase of
industrial goods or services for their companies
Business-to-business advertising
• Targets professionals, encouraging them to use a company’s
product in their business operations
Professional advertising
• Targets marketing channel members, encouraging them to
stock, promote, and resell the manufacturer’s branded products
to their customers
Trade advertising

1-18
Direct Marketing
 Communicating directly with target customers to
generate a response and/or a transaction
 Involves:
 Database management
 Direct selling
 Telemarketing
 Direct-response advertising
 Encourages the consumer to purchase directly from the
manufacturer

1-19
Digital/Internet Marketing
Interactive media
• Allow users to participate in and modify the form and content
of the information they receive in real time
Social media
• Online means of communication and interactions used to
create, share, and exchange content
Mobile marketing
• Messages delivered are specific to a consumer’s location or
consumption situation

1-20
Advantages of Digital/Internet
Marketing
Interactive nature
Capability to precisely measure the effects of
advertising and other forms of promotion

1-21
Sales Promotion
 Marketing activities that provide extra value or
incentives to the:
 Sales force
 Distributors
 Ultimate consumer
 Aid in stimulating immediate sales
 Categories
 Consumer-oriented
 Trade-oriented

1-22
Sales Promotion
 Increased emphasis due to:
 Declining brand loyalty
 Increased consumer sensitivity to promotional deals
 Retailers’ demand for more trade promotion support
from companies

1-23
Publicity
 Nonpersonal communications regarding an
organization, product, service, or idea not directly
paid for or run under identified sponsorship
 Advantage
 High credibility and low cost
 Disadvantages
 Not always under the control of an organization
 Negative stories are highly damaging

1-24
Public Relations
 Evaluates public attitudes
 Identifies policies and procedures of an individual
or organization with the public interest
 Goal - Establish and maintain a positive image
among various publics

1-25
Personal Selling
 Person-to-person communication in which seller
attempts to assist and/or persuade prospective
buyers to:
 Purchase a company’s product
 Act on an idea
 Allows seller to tailor messages to the customer’s
specific needs or situation
 Involves immediate and precise feedback

1-26
Contact or Touch Point
 Every opportunity a customer has to see or hear
about a company and/or its brands or have an
encounter or experience with it
 Categories
 Company created
 Intrinsic
 Unexpected
 Customer-initiated

1-27
Figure 1.5 - IMC Audience Contact
Tools

1-28
Figure 1.6 - IMC Contact Points:
Control vs. Impact

1-29
IMC Planning Process
• Planning, executing, evaluating, and controlling the use of the
promotional-mix elements to effectively communicate with target
audiences
Integrated marketing communications management
• Developing, implementing, and controlling an organization’s IMC
program
Integrated marketing communications plan

1-30
IMC Planning Model
Analysis of promotional program situation and the communication process
Budget determination
Develop integrated marketing communications programs
Review of marketing plan
Advertising
Direct
marketing
Digital/Internet
marketing
Sales
promotion
PR/publicity
Advertising
objectives
Direct-
marketing
objectives
Internet
marketing
objectives
Sales
promotion
objectives
PR/publicity
objectives
Advertising
strategy
Direct-
marketing
strategy
Internet
marketing
strategy
Sales
promotion
strategy
PR/publicity
strategy
Integrate and implement marketing communications strategies
Monitor, evaluate, and control IMC Program
Personal selling
Personal-selling
objectives
Personal-selling
strategy
Advertising
message &
media strategy
& tactics
Direct-
marketing
message &
media strategy
& tactics
Internet
message &
media strategy
& tactics
Sales promotion
message &
media strategy
& tactics
PR/publicity
message &
media strategy
& tactics
Sales message
strategy and
sales tactics

1-31
Marketing Plan
 Describes overall marketing strategy and programs
for an organization and includes:
 Detailed situation analysis
 Specific marketing objectives with time-frame and
mechanism for measuring performance
 Selection of target market(s) and plans for the four
elements of the marketing mix
 Program for implementing the marketing strategy
 Process for monitoring and evaluating performance

1-32
Review of Marketing Plan
 Examining overall marketing plan and objectives
 Identifying the role of advertising and promotion
 Performing competitive analysis
 Assessing environmental influences

1-33
Internal Analysis
 Assesses the firm and relevant areas involving the
product/service offering
 Assessment of:
 Capability to develop and implement promotional
program
 Brand image and implications for promotion
 A product’s relative strengths and weaknesses
 Reviews previous promotional programs and
results

1-34
External Analysis
 Focuses on characteristics of a firm’s customers,
market segments, positioning strategies, and
competitors
 Customer analysis
 Competitive analysis
 Environmental analysis

1-35
Analysis of Communication Process
 Involves analyzing:
 Receiver’s response processes
 Source, message, and channel factors
 Establishes communication goals and objectives

1-36
Analysis of Communication Process
Marketing objectives
• Determine what is to be accomplished by the overall
marketing program in terms of sales, market share, or
profitability
Communication objectives
• Determine what the firm seeks to accomplish with its
promotional program
• Stated in terms of:
• Nature of the message to be communicated
• Specific communication effects to be achieved

1-37
Budget Determination
Set tentative marketing communications budget
Allocate tentative budget

1-38
Developing Integrated Marketing
Communications Program
 Involves deciding the role and importance of each
promotional-mix element
 Aspects of an advertising program
 Creative strategy - Determining the basic appeal and
message to be conveyed to the target audience
 Media strategy - Determining the communication
channels to use to deliver the message

1-39
Monitoring, Evaluation, and Control
 Determining how well the program is:
 Meeting communication objectives
 Helping the firm accomplish its overall marketing
goals and objectives
 Evaluating promotional program
results/effectiveness
 Taking measures to control and adjust promotional
strategies

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