Integrated Marcom – An overview

Integrated Marcom – An overview Integrated Marketing Comms • A holistic approach to marketing communication • Aims to ensure consistency of message • Includes online and offline marketing channels • Process in which messages communicated by each of the promotional elements are harmonized, so that consumers will receive a consistent message regarding the brand or the company Customer is the Heart of IMC Customer IMC– Audience Touch Contact Point of Purchase Internet/ Interactive Media Direct Mail Publicity Public Relations Packaging Marketing Communications Audience Direct Response Sales Promotion Print Media Broadcast Media Outdoor Events Online marketing channels • • • • • • • • • • • e-marketing campaigns or programs search engine optimization (SEO) pay-per-click Affiliate Email Banner Latest web related channels for webinar, Blog, micro-blogging RSS Podcast Internet TV Offline marketing channels – – – – – – – Taditional print (newspaper, magazine), Mail order Public relations Industry relations Billboard Radio Television Key Requirements A company develops its integrated marketing communication program using all the elements of the marketing mix When a company develops a total marketing communications strategy it needs to recognize all the ways a company can communicate with its customers The most important job of the marketing communication team is to ENSURE that the product and brand promotions are sending the right message IMC Strategy should depend on your CUSTOMER / TARGET AUDIENCE wants IMC and Branding Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind. IMC plays a major role in the process of developing and sustaining brand identity and equity. 2003 Brand Value (Billions of Dollars) 1. Coca-Cola 2. Microsoft 3. IBM 4. GE 5. Intel 6. Nokia 7. Disney 8. McDonald’s 9. Marlboro 10. Mercedes $70.5 $65.1 $51.8 $42.3 $31.1 $29.4 $28.0 $24.7 $22.2 $21.4 The brand race • You saw the list of the 10 most valuable brands, as measured by the brand consultancy company Interbrand • These popular brands have a competitive edge with consumers during the purchase decision process • With more and more products and services available to consumers, developing and maintaining brand identity is becoming increasingly more important • Well known brands have a major competitive advantage in today’s marketplace. • A well-defined and coordinated IMC plan contributes to overall brand identity and equity Things to remember • Before selecting an IMC tool, marketing, product and brand managers must look at social, competitive, legal, regulatory, ethics, cultural and technological considerations • One thing you want to avoid when activating the tools of integrated marketing communication is reaching inappropriate audiences and causing controversy. Thinks to remember about IMC • Communication is always one of the most important and vital strategic areas of an organization's success • You can have the best or most innovative products or services, but if your internal and external communications are weak, then the demand for your products or services raises a personal flag of concern • When communicating the value of your products or services, you want to focus on how they will benefit your clients • Factors such as direction, clarity, consistency, timing and appearance of your messages, conveyed to your targeted audience, will help avoid any confusion about the benefits of your brand • If companies are ethically planning, communicating, and following industry guidelines, they will most likely earn the trust of their customers and target audience Marketing Mix 5 Major modes Advertising - Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor Personal selling - Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships ( face to face) Public relations - Building good relationships with the company’s various publics by obtaining favorable publicity, building up a good "corporate image", and handling unfavorable rumors, stories, and events Sales promotion - Short-term incentives to encourage the purchase or sale of a product or service Direct marketing - Direct communications with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships Direct Marketing is Part of IMC Direct Mail Internet Sales Direct Response Advertising Direct Marketing Shopping Channels Cataloging Catalogs Telemarketing Using the Internet as an IMC Tool The Internet Educates or Informs Customers A Persuasive Advertising Medium A Sales Tool or an Actual Sales Vehicle Obtains Customer Database Information Communicates and Interacts With Buyers Provides Customer Service and Support Builds and Maintains Customer Relationships Sales Promotion Tools Coupons Samples Premiums Contests/Sweepstakes Trade Allowances POP Displays Training Programs Trade Shows Coop Advertising Refunds/Rebates Bonus Packs Loyalty Programs Events • Consumeroriented • [For end-users] • Tradeoriented • [For resellers] Uses of Sales Promotion Introduce New Products Get Existing Customers to Buy More Combat Competition Enhance Personal Selling Sales Promotion Attract New Customers Maintain Sales In Off Season Tie In Advertising & Personal Selling Increase Retail Inventories Public Relations Tools Feature Articles News Releases Publicity Vehicles Interviews Press Conferences Special Events Publicity Vehicles Publicity Vehicles Special Publications Community Activities Corporate Advertising Cause-related Marketing Public Affairs Activities Special Event Sponsorship Classifications of Advertising National Advertising Retail/Local Advertising Primary vs. Selective Demand Advertising Consumers Business-to-Business Advertising Professional Advertising Trade Advertising Organizations THE SHIFT Marketing Revolution and Shifting Tides From Media Advertising Mass Media Manufacturer Dominance General Focus Low Agency Accountability Traditional Compensation Toward Multiple Forms of Communication Specialized Media Retailer Dominance Data Based Marketing Greater Agency Accountability Performance Based Compensation Limited Internet Availability Widespread Internet Availability The 7 Shifts 1. From media advertising to multiple forms of communication (including promotions, product placements, mailers...) 2. From mass media to more specialized media, which are centered around specific target audiences. 3. From a manufacturer-dominated market to a retailerdominated market. The market control has transferred into the consumer's hands. 4. From general-focus advertising and marketing to databased marketing. 5. From low agency accountability to greater agency accountability. Agencies now play a larger role in advertising than ever before. 6. From traditional compensation to performance-based compensation. This encourages people to do better because they are rewarded for the increase sales or benefits they cause to the company. 7. From limited Internet access to widespread Internet availability. This means that people can not only have 24/7 access to what they want, but that advertisers can also target potential buyers just as much. Traditional Approach to Marketing Communications Sales Promotion Point of Purchase Publicity Special Events Media Advertising Packaging Direct Response Public Relations Direct Marketing Interactive Marketing Contemporary IMC Approach Sales Promotion Packaging Direct Response Point of Purchase Publicity Media Advertising Public Relations Interactive Marketing Direct Marketing Special Events IMC – Advertising Dell Focuses on Building a Relationship With Customers Coordinated Marketing Mix Elements Build Image An Example of “B-to-B” Advertising Bose Uses Direct Response Advertising American Airlines Encourages Customers to Do It All Online DuPont Uses Advertising to Enhance Its Corporate Image – Use as a PR tool The Marketing Plan 1. A detailed situation analysis 2. Specific marketing objectives 3. A marketing strategy and program 4. A program for implementing the strategy 5. A process for monitoring and evaluating performance A TIP SOSTAC® • It took PR Smith five years to devise SOSTAC® but you can learn it in five minutes • Use it and you are well on your way to building a well structured and comprehensive plan • You can also use this approach to check other plans to see if they are comprehensive SOSTAC® • S stands for Situation Analysis - which means where are we now? • O stands for Objectives which means where do we want to go? • S stands for Strategy which summarises how we are going to get there. • T stands for Tactics which are the details of strategy. • A is for Action or implementation - putting the plan to work. • C is for Control which means measurement, monitoring, reviewing, updating and modifying. Now add the 3m's • the three key resources, Men, Money and Minutes. • Men meaning men and women, expertise and abilities to do different jobs • Money means budgets - have we the money? • Minutes mean time - what are the time scales, schedules or deadlines? Is there enough time? SOSTAC® + 3M's If you can remember SOSTAC® + 3M's and build them into your marketing plan, you have the platform for writing a good marketing plan..