INTRODUCTION TO IMC

INTEGRATED MARKETING COMMUNICATIONS

Defining Marketing Communications

Marketing communications… …all forms of communication between an organization and its target audiences, in the context of its brands, that affect its marketing performance, whether positively or negatively.

Marketing communications mix……tools available to or used by an organization, for communicating with its target audiences, both internal and external.

Looking At Marketing Communications ‘Redefining’ advertising:

Use of mass media, paid or otherwise, by an identified sponsor (or company), to deliver marketing communications to its defined target audiences.

AD VW

Looking At Marketing Communications ‘Redefining’ promotions:

Any activity designed to attract a target audience with a view to induce purchase of goods, services and ideas.

Looking At Marketing Communications ‘Redefining’

corporate communications: An integrated organization-wide approach towards communication, including ‘marketing communication’, ‘organizational communication’ and ‘management communication’.

The Communication Process

The key challenge for marketing communications is to be able to communicate the right message, in the right way, to the right people, at the right place, at the right time!

SenderMessag

eMedia Receiver

WHO? WHAT? BY WHAT MEANS? TO WHOM? WITH WHAT EFFECT?

THE ‘OLD’ COMMUNICATION MODEL

What is IMC…

American Association of Advertising Agencies’ definition:

A concept of good marketing communications that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines (e.g. advertising, direct response sales promotion and public relations) and combines these disciplines to provide clarity, consistency, and maximum communication impact.

What is IMC…

Betts et al., 1995: A strategic choice of elements of marketing communications which will effectively and economically influence transactions between an organization and its existing and potential customers, clients and consumers.

What is IMC…

Shimp, 2000: An organization’s unified, coordinated effort to promote a brand concept through the use of multiple communications tools that ‘speak with a single voice’.

What is IMC… in its simplest form?

A management process concept of integrating all marketing communications activities across relevant audience points to achieve greater brand coherence.

The IMC Process Model

The IMC Process Model provides a more comprehensive framework for understanding how marketing communication works. It recognizes the importance of the micro- and macro-environment in which Marketing communication takes place.

It identifies communications as a two-way process, and the risks involved in ‘decoding’ or ‘interpretation’ of communication.

The IMC Process Model

It highlights the fact that ‘receiver response’ is affected by several internal factors such as the receiver’s attitudes, associations, perceived quality & loyalty, in addition to external factors (such as the environment).

It also correlates receiver response with Brand Equity, a measure of the strength, currency and value of the brand in the consumer’s mind.

The IMC Process Model: Strategic Tasks For Brand Managers

1. Customer / Audience Relationship Management: The IMC Process Model expects the Brand Manager to recognize ‘the life-time value of customers.’

2. Image and brand management: The Model also identifies the strategic tasks involved in the management of positive, personal or non-personal communication between an organization and its many audiences – in the form of advertising, PR, and sales promotion.

The IMC Process Model

Sender

Message

Media

Receiver

CUSTOMER/ AUDIENCE RELATIONSHIP MANAGEMENT

Receiver

Response

Brand Equity

Marketing communications context

Communications loop

IMAGE AND BRANDMANAGEMENT

Time period + 1

Redefining Target Audience(TA) Original definition focused in terms of ‘customers’/

‘consumers’ – current definition includes other individuals/ groups affecting buying decision…

TARGET MARKET

END CUSTOME

R

OPINION LEADERS &

INNOVATORS

OTHER PUBLIC

S

CONSUMER

MEDIAOTHER DMUs

TRADE

INTERNAL

EXTERNAL

TRADE CUSTOMER

S

Redefining Target Audience(TA)

Publics: the larger body of individuals or stakeholders as defined in PR.

Segments: collective bodies of individuals expected to respond in the same manner to a company’s marketing activities and initiatives.

DMUs: Decision making units – other ‘players’ affecting the purchase outcome e.g. influencers, gate-keepers, specifiers, deciders, users overlooked.

The Marketing Communication Mix & IMC Mix Original ‘marketing mix’ developed by Neil

Borden of Harvard had 12 elements. The commonly recognized ‘marketing mix’ popularized by J. McCarthy has 4:1. Product planning2. Pricing3. Branding4. Advertising5. Promotions6. Display7. Personal Selling8. Channels of

distribution9. Physical handling10.Servicing11.Fact-finding 12.Analysis

1. Product 2. Price3. Promotion4. Place

The Marketing Communication Mix & IMC Mix

Basic Marketing Communications Mix

AdvertisingPublic Relations Personal sellingSales Promotion

IMC Planning

AdvertisingPublic Relations Personal sellingSales Promotion

Publicity

Stakeholders communicatio

n

Sponsorship

Lobbying

Product placement

Product Advertising

Corporate Advertising

Direct Response Advertising

Packaging

Merchandising

Trade/ Consumer Promotions

Direct Sales

Counter Sales

Exhibitions

Customer Service

Tele-Market

Marketing

LobbyingCommunication

In Conclusion…

The IMC Mix Model recognizes the ‘overlaps’ that exist between Advertising, PR, Direct Marketing Communications, Sales Promotions & Personal Selling.

Overlaps cause problems in defining roles and responsibilities - solution lies in:A) Defining and remaining focused on unified goals, B) Ensuring closer coordination within organization, & C) Accepting collective responsibility for RESULTS.

How can communications be integrated?

1. Clearly identifying Marketing Communication objectives – consistent with organizational objectives.

2. Adopting a planned approach – ensuring coherence & synergy;

3. Catering to an enlarged target audiences – not just Customers but other Publics as well;

4. Managing all forms of contact within an organization and outside;

5. Effectively integrating all promotional activities;

6. Using a range of promotional tools – personal/ non-personal;

7. Coordinating all communication – where one single message not practical, creating a single ‘visual’ image;

8. Optimizing use of media for effectiveness.

Virgin is a leading branded venture capital organization and is one of the world's most recognized and respected brands. Conceived in 1970 by Sir Richard Branson, the Virgin Group has gone on to grow very successful businesses in sectors ranging from mobile telephony to transportation, travel, financial services, media, music and fitness. Virgin uses PR to good effect in its marketing communication mix.

Virgin has created more than 300 branded companies worldwide, employing approximately 50,000 people, in 30 countries. Global branded revenues in 2009 exceeded £11.5 billion (approx. US$18 billion).

“We believe in making a difference. Virgin stands for value for money, quality, innovation, fun and a sense of competitive challenge. We deliver a quality service by empowering our employees and we facilitate and monitor customer feedback to continually improve the customer's experience through innovation.”

Richard Branson’s Virgin Group of Companies

http://www.virgin.co.uk

Benefits of IMC

a) Synergy: described as a “2+2=5 phenomenon”;

b) Linton & Morley’s list of 10 benefits:1. Creative integrity 2. Consistent messages3. Unbiased marketing recommendations4. Better use of media5. Greater marketing precision6. Operational efficiency7. Cost savings8. High-caliber consistent services9. Easier working relationships10.Greater agency accountability.

[EXERCISE]

Benefits of IMCLinton & Morley’s list of 10 benefits:

1. Creative integrity: standard guidelines followed;

2. Consistent messages: same message from any source;3. Unbiased marketing recommendations: all aspects considered in decision-making;

4. Better use of media: more balance, better coverage;5. Greater marketing precision: fewer errors;

6. Operational efficiency: more streamlined processes;7. Cost savings: less wastage/ duplication of effort;8. High-caliber consistent services: quality performance;9. Easier working relationships: greater cooperation;10.Greater agency accountability: more control, better evaluation of campaigns/ expenditure.

Role of Ad Agencies in promoting IMCMost agencies acknowledge the importance of IMC,

but few are willing to invest in the tools required:

UK Hobbs Marketing, Charles Grant-Salmon: “We recognised seven years ago the need to integrate the service with other areas of the cycle, to enable us to offer a more total solution, to enable our customers to have tighter control and a better and more complete return on their investment.”

BMP DDB Chairman, Chris Powell: “It’s hard enough to do a traditional campaign. We haven’t got good enough at developing integrated campaigns..” (Marketing Week, 2002c).

Bozell UK Group Chairman: “Advertising agencies should stick to their core business”.

Factors encouraging growth of IMC

Lack of real growth in advertising expenditure worldwide – exception China. In the UK growth has been slow, but faster than global growth;

Substitution of advertising professionals in ad agencies: agencies encouraged to hire people with broader skill-sets; New promotional agencies set up in competition to ad agencies: e.g. agencies specializing in new/ digital media emerging; Growth in media independents: more specialized service offerings;

Clients engaging consultants for strategic advice and planning: consultants creating new broad-based strategies;

Factors encouraging growth of IMC Perceived financial advantage of IMC: self-

explanatory; Growth in international communication: as

companies transcend geographical boundaries, need for greater specialization and standardization in communication was imminent;

Spread of Relationship Marketing concept & recognition of internal audiences: Need to earn loyalties and support from a more varied stakeholders community required greater skills for creating and disseminating communication; Technological advances: Spread of database marketing and the internet allows for data and its transfer to be manipulated in ways hitherto unknown.

Barriers to growth of IMC Negative mind-set: years of reliance on a

system puts people in comfort zone;

Organizational structure: Vertical organizations encourage people to work in ‘functional silos’ and inhibit cross-sell of idea;

Cost and budgets: The perception that IMC requires bigger budgets and scale;

Lack of conceptual clarity: inability to understand the finer points of the IMC mix;

Dimensions of integration: IMC requires integration beyond the elements of IMC mix. It requires cross-functional integration and team-work.

END OF INTRO TO IMC