Role & Challenge Of IMC In Facilitating The Success Of Brands

Week 01W. Rofianto

What is Marketing?

Marketing is the activity, set of institutions, and processes

for creating, communicating, delivering, and exchangingofferings that have value for customers, clients, partners,

and society at large.

(American Marketing Association’s official definition of marketing,

Approved July 2013)

Defining IMCIMC is a strategic business process used to plan, develop,

execute and evaluate coordinated, measurable, persuasive

brand communication programs with consumers, customers,

prospects employees and other relevant external and internal

audiences.

The goal of IMC is to generate financial returns and build

brand equity.

Advertising

Direct Marketing

Interactive/Internet Marketing

Sales Promotion

Publicity/PublicRelations

Personal Selling

Advertising

Direct Marketing

Interactive/Internet Marketing

Sales Promotion

Publicity/PublicRelations

The Promotional Mix

The Tools of Marketing Communications

Source: Shimp (2010), adapted from Figure 1.1 in Kevin Lane Keller, “Mastering the Marketing Communications Mix: Micro and Macro

Perspectives on Integrated Marketing Communication Programs,” Journal of Marketing Management 17 (August, 2001), 823–851.

1. Media Advertising

• TV

• Radio

• Magazines

• Newspapers

2. Direct Response and

Interactive Advertising

• Direct mail

• Telephone solicitation

• Online advertising

3. Place Advertising

• Billboards and bulletins

• Posters

• Transit ads

• Cinema ads

4. Store Signage and Point-of-

Purchase Advertising

• External store signs

• In-store shelf signs

• Shopping cart ads

• In-store radio and TV

5. Trade- and Consumer-

Oriented Promotions

• Trade deals and buying

allowances

• Display and advertising

allowances

• Trade shows

• Cooperative advertising

• Samples

• Coupons

• Premiums

• Refunds/rebates

• Contests/sweepstakes

• Promotional games

• Bonus packs

• Price-off deals

6. Event Marketing and

Sponsorships

• Sponsorship of sporting

events

• Sponsorship of arts, fairs,

and festivals

• Sponsorship of causes

7. Marketing-Oriented Public

Relations and Publicity

8. Personal Selling

The Integration of Marketing Communications

Why Not Integrated?

Tradition of separation communication tools

Influence of specialized outside suppliers

Managerial parochialism

Skeptics who consider IMC to be a fad

Using multiple communication tools in conjunction with one

another can produce greater results (synergistic effects) than

tools used individually and in an uncoordinated fashion.

Basic IMC Issues

How to enhance

brand equity

How to affect

customer

behavior

How to justify

marcom

investments

How to

demonstrate

financial

accountability

Marketing Communicators Challange

IMC Keys

1. Start with the customer or prospect.

2. Use any form of relevant contact or touch point.

3. Speak with a single voice.

4. Build relationships.

5. Affect behavior.

https://www.youtube.com/watch?v=1tpnf9NWX-Y

Coordinated Marketing Mix Elements Build Image

The Marketing Communications Decision-Making Process

Source: Shimp (2010)

A Firm-Based Perspective on Brand Equity

Higher

market share

Increased

brand loyalty

Premium

pricing

Revenue

premiums

Brand Equity

The degree to which consumers favorably perceive the brand’s

features and benefits as compared to competitive brands and

how strongly these views are held in memory

Children’s Taste Preferences (In percents)

Source: Shimp (2010)

A Customer-Based Brand Equity Framework

Source: Shimp (2010), adapted from Kevin Lane Keller, “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity,” Journal of Marketing 57

(January 1993), 7.

The Brand Awareness Pyramid

Source: Shimp (2010), adapted from David A. Aaker, Managing Brand Equity (New York: Free Press, 1991), 62.

Ways of Enhancing Brand Equity

Speak-for-Itself Message-Driven Leveraging

Enhancing Brand Equity

Change in

brand

awareness

Improvement

in attitudes

toward

the brand

Increased

purchase

intentions

Larger sales

volume

What to Measure?

Measuring Marcom Effectiveness, Why ?

Demands for greater accountability on the marketing function

To become better at marcom activities

https://www.youtube.com/watch?v=98U2O7cpcNw

IMC: Facilitate successful new product introductions,

Reduce the product failure rate (potentially 35-45%)

Model of the Brand Adoption Process

Brand Characteristics That Facilitate Adoption

Relative Advantage

Complexity

Compatibility

Observability

Trialability

Brand Naming

Speed of

Brand Awareness

Overall

Brand Image

Brand Equity

Formation

Brand Name

company’s unique designation or trademark,

which distinguishes its offering from other product category entries.

Brand Name Fundamentals

Compatible with desired image

Distinguishable from competitors

Suitable forglobal use

Memorable and pronounceable

Facilitatesconsumerlearning

Facilitating Consumer Learning

of Brand Associations

Exceptions to Naming Rules

Some brands become successful in spite of their names

First brand in a new product category can be successful

regardless of its name if it offers distinct advantages.

Empty vessels - names can be intentionally meaningless

at inception

Logos

Good Logo Designs

Are natural—neither too

simple nor too complex

Are readily recognized

Convey same meaning to

all target market members

Evoke positive feelings

Are suited for periodic

updating

The Role of Logos

graphic design element related to a brand name

https://www.youtube.com/watch?v=QKvgw9TJoCk

https://www.youtube.com/watch?v=HB3xM93rXbY