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BBA III SEM ADVERTISING MANAGEMENT -UNIT 2

Integrated Marketing Communications (IMC) is a strategic approach that coordinates various promotional tools to effectively communicate a consistent message to target audiences. It addresses traditional and online marketing strategies, combining approaches like advertising, public relations, and direct marketing to enhance brand identity and consumer relationships. The IMC process requires comprehensive knowledge and integration of diverse marketing elements to meet objectives such as informing, persuading, and building brand loyalty.

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INTEGRATED MARKETING COMMUNICATIONS
1. What is IMC? © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Coordinating the various promotional elements to effectively communicate with target audiences
Point of purchase Publicity Public relations Direct marketing Interactive marketing Special events Packaging Sales promotion Direct response Traditional Approach to Marketing Communications Media Adver- tising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Contemporary IMC Approach Point of purchase Publicity Interactive marketing Public relations Direct marketing Special events Packaging Sales promotion Direct response Media Adver- tising © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Integrated Marketing Approach  Traditional mass media − Television, radio, magazines, newspapers, billboards − Now drive consumers to Web sites  Online strategies − Provide detailed information − Be experiential, entertaining, interactive − MySpace, YouTube, Facebook, wireless mobile media devices, e-mail
The New Look of Advertising Interactive, Informative, Entertaining
Marketing communications is a systematic methodology aimed at creating a niche for a particular product or service in the market through various modes of communication to reach the end user.
IMC entails coordinating the organization's promotional mix (communication elements - advertising, sales promotions, personal selling, public relations (PR) & direct/online marketing) to communicate a clear, consistent & compelling company & brand message. The IMC program must blend these elements to inform, persuade, remind & reinforce their attitudes/perceptions most effectively at each brand contact.
Objectives of Marketing Communication  Inform your target audience about your brand  Persuade your target audience to purchase your product or use your service  Remind your target audience about your brand and encourage them to make the purchase
OTHER OBJECTIVES • Increase Market Penetration • Develop Repeat Purchase Behavior • Establish Customer Relationships • Increase Rate of Consumption • Encourage Product Trial • Stimulate Impulse Buying • Stimulate Demand • Differentiate the Product • Establish a Product Image • Influence Sales Volume • Establish, Modify, or Reinforce Attitudes • Develop Sales Leads • Stimulate Interest • Establish Understanding • Build Support & Acceptance
• Increase Market Penetration • Develop Repeat Purchase Behavior • Establish Customer Relationships • Increase Rate of Consumption • Encourage Product Trial • Stimulate Impulse Buying • Stimulate Demand • Differentiate the Product • Establish a Product Image • Influence Sales Volume • Establish, Modify, or Reinforce Attitudes • Develop Sales Leads • Stimulate Interest • Establish Understanding • Build Support & Acceptance MARKETING COMMUNICATIONS OBJECTIVES
Growing Importance of IMC  Strategic integration of communications functions − Avoids duplication − Synergy among promotional tools − More efficient and effective marketing  Rapidly changing environment − Consumers − Technology − Media
Traditional compensationTraditional compensation Performance-based compensationPerformance-based compensationTraditional compensationTraditional compensation Performance-based compensationPerformance-based compensation Media advertisingMedia advertising Multiple forms of communicationMultiple forms of communication Mass mediaMass media Specialized mediaSpecialized media Manufacturer dominanceManufacturer dominance Retailer dominanceRetailer dominance General focusGeneral focus Data-based marketingData-based marketing Low agency accountabilityLow agency accountability Greater agency accountabilityGreater agency accountability Limited Internet availabilityLimited Internet availability Widespread Internet availabilityWidespread Internet availability Media advertisingMedia advertising Multiple forms of communicationMultiple forms of communication Mass mediaMass media Specialized mediaSpecialized media Manufacturer dominanceManufacturer dominance Retailer dominanceRetailer dominance General focusGeneral focus Data-based marketingData-based marketing Low agency accountabilityLow agency accountability Greater agency accountabilityGreater agency accountability Factors for the Growing Importance of IMC From Toward
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. 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. 2005 Brand Value (Billions of Dollars) 1. Coca-Cola $67.52 2. Microsoft $59.94 3. IBM $53.38 4. GE $46.99 5. Intel $35.59 6. Nokia IMC plays a major role in the process of developing and sustaining brand identity and equity. IMC plays a major role in the process of developing and sustaining brand identity and equity.
Participants in the IMC Process  Advertisers or Clients − firms that have products, services or causes to be marketed  Advertising Agency − an outside firm that specializes in the creation, production, and/or placement of the communications message and that may provide other services to facilitate the marketing and promotions process.
Participants in the IMC Process  Media Organizations − provide information or entertainment to their subscribers, viewers, or readers − purpose of media is to provide an environment for the firm’s marketing communications message.  Specialized Marketing Communications Services − direct-marketing agencies, sales promotion agencies, interactive agencies and public relations firms
Participants in the IMC Process  Collateral Services − wide range of support functions used by advertisers, agencies, media organizations, and specialized marketing communications firms. − perform specialized functions the other participants use in planning and executing advertising and other promotional functions.
6. Personal Selling6. Personal Selling 1. Advertising1. Advertising 2. Direct Marketing2. Direct Marketing 3. Internet Marketing3. Internet Marketing 4. Sales Promotion4. Sales Promotion 5. Public Relations5. Public Relations The promotional mix: The tools of IMC
Cost effectiveCost effective PaidPaid Non-personalNon-personal 1. Advertising
Primary vs. Selective Demand Advertising Primary vs. Selective Demand Advertising Primary vs. Selective Demand Advertising Primary vs. Selective Demand Advertising Business-to-Business AdvertisingBusiness-to-Business Advertising Organizations National AdvertisingNational Advertising Retail/Local AdvertisingRetail/Local Advertising Professional AdvertisingProfessional Advertising Trade AdvertisingTrade Advertising National AdvertisingNational Advertising Retail/Local AdvertisingRetail/Local Advertising Business-to-Business AdvertisingBusiness-to-Business Advertising Professional AdvertisingProfessional Advertising Classifications of Advertising Consumers
Advertising  a paid non-personal presentation & promotion of ideas, goods or services by an identified sponsor − Advantages – repeatedly reach masses of geographically dispersed buyers at a low cost per exposure, increases legitimacy, large scale advertising positively related to seller’s size, popularity & success, dramatise sound/motion − Disadvantages – costly, impersonal, 1 way communication, may not be as persuasive as salespeople (no response)
Direct Response Advertising Direct Response Advertising Direct Response Advertising Direct Response Advertising Direct Mail Direct Mail CatalogsCatalogs TelemarketingTelemarketing Internet Sales Internet Sales Shopping Channels Shopping Channels Direct Mail Direct Mail TelemarketingTelemarketing CatalogsCatalogs Shopping Channels Shopping Channels 2. Direct Marketing Direct Marketing Direct Marketing
Builds and maintains customer relationships Builds and maintains customer relationships Obtains customer database information Obtains customer database information Communicates and interacts with buyers Communicates and interacts with buyers Provides customer service and support Provides customer service and support Educates or informs customers Educates or informs customers A persuasive advertising medium A persuasive advertising medium A sales tool or an actual sales vehicle A sales tool or an actual sales vehicle Obtains customer database information Obtains customer database information Communicates and interacts with buyers Communicates and interacts with buyers Provides customer service and support Provides customer service and support Educates or informs customers Educates or informs customers A persuasive advertising medium A persuasive advertising medium A sales tool or an actual sales vehicle A sales tool or an actual sales vehicle 3. Internet marketing The Internet The Internet
Direct & Online Marketing  direct connection with carefully targeted consumers to gain immediate response & long term relationships − Characteristics – less public, immediate, customized, interactive e.g. direct mail, catalogues, online, telemarketing − Interaction with targeted consumers (individualized) - dialogue - adjust messages to be highly targeted - build long term 1 to 1 relationships
• Consumer- oriented [For end- users] • Trade-oriented [For resellers] 4. Sales Promotion Tools EventsEvents Loyalty ProgramsLoyalty Programs Bonus PacksBonus Packs Refunds/RebatesRefunds/Rebates Contests/SweepstakesContests/Sweepstakes PremiumsPremiums SamplesSamples CouponsCoupons Coop Advertising Coop Advertising Trade Shows Trade Shows Training Programs Training Programs POP DisplaysPOP Displays Trade Allowances
Sales Promotion  short term incentives to encourage the purchase of a goods or services − Advantages – attract consumer attention, incentivises quick purchases, dramatise product offers to boost sales − Disadvantages – sales promotion effects are short lived, don’t effectively build long run brand preference & customer r/ships like advertising & personal selling
Corporate Advertising Corporate Advertising Cause-related Marketing Cause-related Marketing Publicity Vehicles Community Activities Public Affairs Activities Special Publications Special Event Sponsorship Publicity Vehicles Community Activities Public Affairs Activities Special Publications 5. Public Relations Tools
InterviewsInterviewsInterviewsInterviews Feature Articles Feature Articles Special Events Special Events Press Conferences Press Conferences News Releases News Releases Feature Articles Feature Articles Special Events Special Events News Releases News Releases Publicity Vehicles Publicity Vehicles Publicity Vehicles
Advertising Versus Publicity AdvertisingAdvertising PublicityPublicity TentativeTentative LowLow Low/UnspecifiedLow/Unspecified UncontrollableUncontrollable GreatGreat LowerLower MeasurableMeasurable SchedulableSchedulable High/SpecificHigh/Specific HighHigh SpecifiableSpecifiable UndeterminedUndetermined HigherHigher LittleLittle FactorFactor ControlControl CredibilityCredibility ReachReach FrequencyFrequency CostCost FlexibilityFlexibility TimingTiming
Public Relations  building relationships with company publics via favorable publicity, corporate image & media handling − Advantages - very believable (news stories, sponsorships & events), reach those who avoid ads/salespeople, dramatize a company or product (gets to the buyer as ‘news’) − Disadvantages – can backfire
Face-to-face communicationFace-to-face communication Mostly used for business customersMostly used for business customers 6. Personal selling
Personal Selling  a personal presentation by the firm’s sales force to make a sale & build customer relationships − Advantages – used in B2B marketing, effective tool in certain stages of buying process, can build buyer preferences, convictions & actions, personal interaction, flexible (can adjust), buyer feels a greater need to listen/respond − Disadvantages – sales force requires longer term commitment than advertising, most expensive promotional tool
The IMC Planning Process  Developing an integrated marketing communications plan requires Planning Executing Evaluating Controlling
IMC Management & Planning STRATEGIC PLANNING OF IMC IS DIFFERENT FROM TRADITIONAL USE OF MULTIPLE PROMOTIONAL TOOLS  IMC Management Planning Requires Comprehensive & Detailed Knowledge − Customers − Prospects  Knowledge about Customer & Prospects  IMC Management Plan - Built Around Brand Communications  Control of IMC Management & Planning – Centralized − Firms Appointing IMC or Marcom Managers
IMC Management & Planning (con’t) IMC Model Considers Complete Process  Uses Promotion to Communicate to Target Markets  Effectively Deploys Promotional Tools  Corporate & Marketing Plans - Understood and Adopted as Part of IMC Plan  Databases - Help Identify & Profile Target Markets  Promotional Objective - Dictate Mix of Promotional Tools to Pursue for each Target
Model of IMC Management and Planning  IMC Model considers complete process  Uses promotion to communicate to target markets.  Different Advertisements effectively deploys promotional tools.  Reaching out the audience in an unique way.  Corporate and marketing plans understood and adopted as part of IMC plan.  Databases Help identify and profile target markets.  Promotional objectives dictate mix of promotional tools to pursue for each target.
Basic Elements of a Marketing Plan 5. A process for monitoring and evaluating performance5. A process for monitoring and evaluating performance 1. A detailed situation analysis1. A detailed situation analysis 3. A marketing strategy and program3. A marketing strategy and program 4. A program for implementing the strategy4. A program for implementing the strategy 2. Specific marketing objectives2. Specific marketing objectives
Model of the IMC Planning Process Analysis of Promotional program situation Review of marketing plan Integrate and implement marketing communications strategies Monitor, evaluate and control IMC Program Develop objectives and strategy for each Develop message, media strategy, and tactics Analysis of communications process Budget determination Sales promotion PR/ publicity Personal selling Direct marketing Internet/ interactive Advertising Develop integrated marketing communications program
Challenges in Implementation of an Integrated Marketing Communication  Every departmental manager has his own specific objective or targets.  A sales promotion manager would only be interested in increase his sales even if it means, doing it at the cost of diluting the brand equity.  Benefits derived over a period of time, which might de-motivate the marketing people.  The enduring commitment and support of top management.
 Key obstacles − Lack of people with the broad perspective and skills to make it work − Internal turf battles − Agency egos − Fear of budget reductions − Ensuring consistent execution − Measuring success − Compensation Contd.
AIDA Model
COMMUNICATION MODELS BASED ON THE THREE STAGES OF BUYING BEHAVIOUR
Cognitive Stage The cognitive component deals with cognition, or knowledge; it is the power of knowing, perceiving or conceiving ideas about the product. It is dealing with the basic information that a consumer needs to know. A customer needs to be exposed to the product and understand its usage before he actually purchases it.
Affective Stage The effective component deals with the affections/emotions. For example, feelings of likes or dislike towards objects are dealt on the effective plane. It is at this stage that the consumer will either have preference or liking towards the product or he will develop a dislike. This stage shows his attitude towards the product, whether he is for or against the product.
Behaviour Stage This is the stage when the consumer, after having the knowledge and developing the liking or disliking towards the product, will ultimately lead into a purchase of the product or rejection of the product. He would first try the product and develop loyalty towards it or he is completely convinced that the product is good and would purchase the product.
AIDA Model
AIDA MODEL  The design and development of advertising follows the AIDA formula. The effectiveness of advertising depends upon to what extent the advertising message is received and accepted by the target audience.  American advertising and sales pioneer, Elias St. Elmo Lewis, is largely credited for developing the AIDA model.  Research has identified that an advertisement to be effective has to (i) Attract Attention (ii) Secure Interest (iii) Build Desire for the product and finally (iv) Obtain Action.
Attention  Most campaigns rely on a mix of visual stimuli Typography , Color, Layout , Size , Celebrity , model etc.  Text is then employed to further grab attention, enticing the reader to continue reading in search of more information. That is why the first paragraph of a sales letter, direct mail piece or ad needs to be the strongest. · Have you ever...? · Are you noticing...? · Can you see...?  Presenting a shocking fact or statistic that identifies a problem
Interest  Raise customer interest by focusing on and demonstrating advantages and benefits .  Keep them engaged.  Establish a need, create a bond .  Being able to establish a need in the mind of a consumer is the cornerstone of an effective ad campaign.  A demonstration or illustration can help the recipients to further identify with the problem and want to actively seek possible solutions  Hinting at something special to keep their interest in what you have to say.
Desire  This is the stage where you stoke the flames of their desire until they are absolutely certain they have to have what you are selling.  Convince customers that they want and desire the product or service and that it will satisfy their needs.  This is often accomplished through the problem-solution technique.  Desire is like a fire, and can be stoked by many methods, such as: (Scarcity principle), how other people approve of the item etc.  There are certain barriers here - certain reservations in the mind of customers. We have to overcome them. We have to convince by giving evidence, testimonials, endorsements, and facts and figures
Action  You've attracted their attention, built their interest and fanned their desire.  Lead customers towards taking action and/or purchasing.  A call to action should be in every single ad, regardless of format. Whether it is a special offer, a free gift or time- limited discount.  Whether it's going to your website, picking up the phone or sending an order, the last section of advertisement needs to contain a powerful call to action.
Example: Film Industry  Before the films are to be released, they start with airing their promos on television. Later they use the outdoor and the press to create more AWARENESS AND ATTENTION. The producers bank on the star cast, music, locations and the crew of the film to catch the eyes of the public.  To create INTEREST among the consumers, they then release the music and also introduce the theme of the film. The purchase of the music cassettes and CDs is an indication of the interest generated by their efforts.  Later at the DESIRE stage, along with continuous promos on television, press and hoardings, they have promotions through contests and movie tickets as prizes. They also have interactive programs like the star cast of the film visiting different music shops and creating desire among the audience.  After all these promos and activities, if the film is successful in creating interest and desire among the people, there is immediate ACTION which is seen through purchases of tickets at movie halls.
Branding
What is a Brand? A name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. What is Branding? Providing goods and services with the power of the brand.
What is a brand ? Branding is a combined effort of the company which is projected to the consumer. Company Brand Consumer Marketing Design
(1) Products and services have become so alike that they fail to distinguish themselves by their quality, efficacy, reliability, assurance and care. Brands add emotion and trust to these products and services, thus providing clues that simplify consumers’ choice. (2) These added emotions and trust help create a relationship between brands and consumers, which ensures consumers’ loyalty to the brands. (3) Brands create aspirational lifestyles based on these consumer relationships. Associating oneself with a brand transfers these lifestyles onto consumers. (4) The branded lifestyles extol values over and above the brands’ product or service category that allow the brands to be extended into other product and service categories. Thus saving companies the trouble and costs of developing new brands, while entering new lucrative markets. (5) The combination of emotions, relationships, lifestyles and values allows brand owners to charge a price premium for their products and services, which otherwise are barely distinguishable from generics. What is a brand ?
“The degree of consumer attachment to a brand.” RecognitionRecognition PreferencePreference InsistenceInsistence Awareness of name, benefit and package Is useful, consumer will buy if available…evoked set Will search for; must have
 Identify the maker  Simplify product handling  Organize accounting  Signify quality  Create barriers to entry  Serve as a competitive advantage  Secure price premium
Branding is endowing products and services with the power of the brand
 Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel and act with respect to the brand.
Brand Elements
Slogans – Examples
The Role of Brands
The 10 MostValuable Brands Brand Brand Value (Billions) Coca-Cola $67.00 Microsoft $56.93 IBM $56.20 GE $48.91 Intel $38.32 Nokia $30.13 Toyota $27.94 Disney $27.85 McDonald’s $27.50 Mercedes-Benz $22.13
Measuring Brand Equity Brand Audits ◦ Comprehensive examination of a brand to assess the health of the brand ◦ Suggest ways to improve its equity. BrandTracking ◦ Collecting information about the brand performance Brand valuation ◦ Determining financial value of the brand
Managing Brand Equity Brand reinforcement ◦ Continuous product improvement and innovation. Brand revitalization ◦ Change in Positioning ◦ Overhaul the brand image
BBA III SEM ADVERTISING MANAGEMENT -UNIT 2