Module I IMC Slides Ver 2.1

7/31/2019 Module I IMC Slides Ver 2.1

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Christ Institute of Management Sem-III Batch - 2011-2013 Compiled by : Alex Daniel

INTEGRATED MARKETINGCOMMUNICATION

MODULE -1

INTRODUCTION TO IMC


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Topics to be covered under the module

Meaning of IMC.

Role of IMC in Marketing process

Traditional Communication v/s IMC.

Introduction to IMC tools

Advertising, sales promotion, publicity,public relations, and event sponsorship;

The role of advertising agencies and other

marketing organizations providingmarketing services

Perspective on consumer behavior.


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As Per AMA for over two decades:

The process of planning and executing the

conception, pricing, promotion, and distribution of

ideas, goods, and services to create exchanges that

satisfy individual and organizational objectives.

Revised Definition of Marketing In 2007 the AMA

adopted a revised definition of marketing:

Marketing is the activity, set of institutions, and

processes for creating, communicating, and

delivering exchange offerings that have value for

customers, clients, partners and society at large.


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What is Customer Value?

Costs include the money paid for the product orservice as well as other factors such as acquiring

information, making the purchase, learning how to

use a product/service, maintaining, and disposing

of it.

Value is the customers perception of all of

the benefits of a product or service weighed

against all the costs of acquiring and using it.

Benefits can be functional, experiential or

psychological.


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What is IMC??

Don Schultz of NorthwesternUniversity says :

IMC is a strategic business process

used to plan, develop, execute andevaluate coordinated, measurable,brand communications programsover time with consumers,customers, prospects, employees,

associates and other targetedrelevant external and internalaudiences.


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Shiftfromo

ldschoo

ltonewmedia The value of strategically integrating

the various communication

functions rather than having themoperate autonomously.

How to target consumers through

telemarketing, direct mail and direct

response advertising due to growthand development of database

marketing

Demands for greater accountability

from advertising agencies andcompensation force agencies to

consider a variety of communication

tools and less expensive alternatives

to mass media advertising.

Marketers now know


7/39Christ Institute of Management Sem-III Batch - 2011-2013 Compiled by : Alex Daniel

Continued.

The rapid growth of the

Internet changing the nature of

how companies do business

and how they communicate

and interact with consumers.

Shift from only advertising-focused approaches based on

mass media such as television and national magazines, to

solve communication problems and more attention to

smaller, targeted media alternatives.



Top Companies by Brand Value



Top Companies by Brand Value

Cont



Advertising

Direct Marketing

Interactive/

InternetMarketing

Sales Promotion

Publicity /PublicRelations

Personal Selling

Promotion is defined as thecoordination of all seller-

initiated efforts to set up

channels of information and

persuasion to sell goods and

services or promote an idea.

The promotional mix is defined

as the basic tools or elements

that are used to accomplish

organizations objectives.



Advertising

Any paid form of non personal communication about an organization,

product, service, or idea by an identified sponsor.


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Advertising

DisadvantagesThe cost of producing and placing ads

can be very high, particularly

television commercials

It can be difficult to determine the

effectiveness of advertising

There are credibility and image

problems associated with advertising

The vast number of ads has created

clutter problems and consumers arenot paying attention to much of the

advertising they see and/or hear

Advantages

Cost-effective way for communicating,

particularly with large audiences.

Differentiating similar products and

services and a valuable tool for creating

and maintaining brand equity

Ability to strike responsive chord with

audience through creative advertising

Opportunity to leverage popularadvertising campaigns into successful

IMC programs ability to control the

message


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National Advertisingdone by large companies

on a nationwide basis. Adsfor well-known brands and

companies shown ontelevision

Retail / Local

Advertsingdone by retail and localmerchants encouragingconsumers to shop at aspecific store, use a localservice, or patronize a

particular establishment

Primary v/s Selective

Advertisingprimary demandadvertising isdesigned to stimulate demandfor the general product class or

industry. Selective-demandfocuses on creating demand fora specific company and/or its

brands.

The Most Common Forms of Advertising

1) Directed towards Consumers and 2) Directed towards Businesses


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Directed towards Businesses

Business-to-Business

Advertising: advertising that

targets individuals who buyor influence the purchase of

industrial goods or services fortheir companies.

Professionaladvertising

advertising targeted toprofessionals such doctors,

lawyers, engineers, andthe like.

Trade advertising

targeted to marketingchannel members such aswholesalers, distributors,

and retailers.


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Direct Marketing

It is a system of marketing

by which organizations

communicate directly with

target customers to

generate a response and/ora transaction.

Direct marketing has not

traditionally been

considered an element ofthe promotional mix.

DirectMarketing

DirectMail

Direct

Response

Advertising

Tele

marketing

Catalogues

Shopping

Channels

Internet

Sales


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Advantages:

Changes in society (two-incomehouseholds, greater use of credit)have made consumers morereceptive to the convenience ofdirect-marketed products

Allows a company to be veryselective and target its marketingcommunications to specificcustomer segments. Messages canbe customized to fit the needs ofspecific market segments

Effectiveness of direct-marketingefforts are easier to assess thanother forms of promotion

Consumers and businesses are

being bombarded with unsolicited

mail and phone calls which makes

them less receptive to direct-

marketing

Direct marketing has image

problems. Problems with clutter

as there are too many direct-

marketing messages competing for

consumers attention

Disadvantages:

Direct Marketing


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Christ Institute of Management Sem-III Batch 2011-2013 Alex Daniel

TheInternet

Educates or informs

customers

Obtains customer databaseinformation

Communicates andinteracts with buyers

A persuasiveadvertising medium

A sales tool or anactual sales vehicle

Provides customer serviceand support

Builds and maintainscustomer relationships

Interactive/Internet Marketing

Interactive media allows back-and-forth flow of information whereby

users can participate in and modify the content of the information

they receive in real time.


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Advantages

The Internet can be used for avariety of IMC functions includingadvertising, direct marketing, salespromotion, public relations andselling

Messages can be tailored to appealto the specific interests and needs ofthe target audience

The interactive nature of theInternet leads to a higher degree ofcustomer involvement whencustomers are visiting a web site.

Disadvantages

The Internet is not yet acomplete mass medium as only aquarter of Indian householdshave access to the Internet.

Many Internet users do not payattention to banner ads and theclick-through rate on most isextremely low.

There is a great deal of clutter onthe Internet which makes it

difficult for advertisingmessages to be noticed and/orgiven attention.

Interactive/Internet Marketing


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Sales Promotion

Marketing activities that

provide extra value or

incentive to the sales force,

distributors, or the ultimate

consumer and can stimulateimmediate sales.

Sales promotion is generally

broken into two major

categories:

consumer-oriented

trade-oriented activities.


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Can be..

Consumer-oriented

Coupons /Samples /Premiums

Contest/Sweepstake

Refunds/RebatesBonus Packs /Loyalty

Programs

Events

Trade-oriented

Trade Allowances

POP Displays / Training

ProgramsTrade Shows

Co-op Advertising

Sales Promotion


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Advantages

Provides extra incentive toconsumer or middlemen topurchase or stock andpromote a brand

Way of appealing to pricesensitive consumer

Way of generating extrainterest in product or ads

Disadvantages

Many companies are becoming too reliant

on sales promotion and focusing too

much attention on short-run marketing

planning and performance

Problems with sales promotion clutter as

consumers are bombarded with too many

coupons, contests, sweepstakes and other

promotional offers

In some industries promotion wars may

develop whereby marketers sales

promotion incentives extensively which

results in lower profit margins and makes

it difficult to sell products at full price

Sales Promotion


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Publicity/Public Relations

Publicitynon-personalcommunications about anorganization, product, service,or idea that is not directly paidfor nor run under identifiedsponsorship.

Public Relationsamanagement function thatevaluates public attitudes,identifies the public policiesand procedures of an

individual or organization withthe public interest, andexecutes a program of action toearn public understanding andacceptance.


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Advantages

credibility of publicity isusually higher than other formsof marketing communication

low cost way of communicating

often has news value andgenerates word-of-mouth

discussion among consumers

Public relations generally has a broader objective than publicity, as its purpose is to

establish and maintain a positive image of the company among its various publics

Disadvantages

Lack of control over

what is said, when,

where and how it is said

Can be negative as well

as positive

Publicity/Public Relations


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Publicity Vehicles

PublicityVehicles

FeatureArticles

Interviews

SpecialEvents

PressConference

NewsReleases


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Public Relations

Systematically planning anddistributing information inan attempt to control andmanage image and the

nature of the publicityreceived.

Activities of persons ororganizations intended topromote understanding of

and good will towardthemselves or their productsor services


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Publicity Vehicles

Special Publications

Community Activities

Corporate Advertising

Cause-related Marketing

Special Event Sponsorship

Public Affairs Activities

Public Relations


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Personal Selling

Personal Selling is a direct

person-to-person communication

whereby a seller attempts to

assist and/or persuade

prospective buyers to purchase acompanys product or service or

act on an idea.

Unlike Advertising, personalselling involves direct contact

between buyer and seller


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Personal Selling

Advantages Direct contact between

buyer and seller allows formore communicationflexibility

Can tailor and adaptmessage to specific needsor situation of the customer

Allows for more immediateand direct feedback

Promotional efforts can betargeted to specific marketsand customers who arebest prospects.

Disadvantages

High cost per contact

(depending on the industry)

Expensive way to reach large

audiences Difficult to have consistent and

uniform message delivered to

all customers


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Advertising Agencies

Advertising agency or ad agency is a servicebusiness dedicated to creating, planning and

handling advertising (and sometimes other forms of

promotion) for its clients.


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ROLE OF ADVERTISING AGENCIES

Businesses, Corporations, Government

Organizations and Non Profit set-ups hire

advertising agencies to advertise their

products, brands and services to present

and prospective customers.

An advertising Agency should :

1)Understand the Product / Company

2 ) Plan & Create an Advertising Campaign

3 ) Strategize

Full Service Ad Agencies are well

equipped to plan and create advertisingcampaigns for a range of media including

TV commercials, Radio jingles, print

advertisements etc.


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Services offered by ad agencies

Full range ofmarketing

communicationand promotionservices

Planning

advertising

Creatingadvertising

Producingadvertising

Performingresearch

Selecting

media


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Services offered by ad agencies

Non

advertisingservices

Strategic market

planning

Salespromotions

Directmarketing

Interactivecapabilities

Packagedesign

Publicrelations and

publicity


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Types of Ad Agencies

Full Service

Research department, may include account

planners, media dept. obtains media space,

time, media planning and buying, sales

promotion, creative services that includes

Creation, execution of ads, copywriter artists,

other specialists and interactive media


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Creative boutiques

These types of agencies specialize in and provide only advertising

creative services.

They have creative personnel such as writers or artists on staff but do

not have media, research or account planning capabilities.


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Media Specialist Companies

They specialize in buying media time,particularly radio and television time

Because they purchase large amounts of time

and space, they usually receive large discountsand can save the agency/company money onmedia purchases

They are paid a fee or commission for their

work The agency or client may often develop the

media strategy


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Methods of Agency Compensation

Commission method

Fee or cost + Incentive-based systems

Percentage Charges


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Top Advertising Companies of India 2011

Ogilvy and Mather

J Walter Thompson India

Mudra Communication Pvt. Ltd

FCB-Ulka Advertising Ltd

Rediffusion-DY&R

McCann-Erickson India Ltd

RK Swamy/BBDO Advertising Ltd


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Thank you!

Module I IMC Slides Ver 2.1

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