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INTEGRATED MARKETING

COMMUNICATIONS (IMC) STRATEGY


The Marketing Communication Mix
Integrated Marketing Communications

THE MARKETING COMMUNICATIONS


MIX / PROMOTION MIX
A specific blend or mix of:
Advertising
Sales Promotion
Public Relations
Personal Selling and
Direct Marketing
Interactive/Internet marketing

ADVERTISING
Advertising is the activity of attracting
public attention to a product or
business, as by paid announcements
in the print, broadcast, or
electronic media
AMA - Any, paid form of nonpersonal presentation of ideas,
goods and services by an identified
sponsor.

SALES PROMOTION
A short-term incentives (offers) to
encourage the purchase or sale of a
product or service
A direct inducement
(encouragement) that offers an
extra value or incentive for the
product to the sales force,
distributors, or the ultimate consumer
with the primary objective of creating
an immediate sale.

PUBLIC RELATIONS
Building good relations with the
companys various publics by
obtaining favorable publicity,
building up a good corporate image and
handling an unfavorable news
Public Relations evaluates public
attitudes, identifies the policies and
procedures of an organization with the
public interest, and executes a
program of action (and
communication) to earn public
understanding and acceptance.

PERSONAL SELLING
Personal presentation by
the companys sales force
(salesman) for the purpose
of making sales, informing
and building customer
relationships

DIRECT MARKETING
Direct approach or
communications with
targeted consumers with
the help of internet,
mails, fax and other tools
for possible sale

INTERACTIVE/INTERNET
MARKETING
Using the internet as
a targeted means of
communicating
towards a specific
segment or market.
Internet has the
ability to allow the
participation of
consumers

THE INTEGRATED MARKETING


COMMUNICATIONS (IMC)
Integrated marketing communication
process, which involves coordinating
the various promotional elements
and other marketing activities that
communicate with a firms
customers.
A centralized messaging function so
that everything a company says
and does communicated a common
theme and position
A Big picture approach

Why IMC?
Promotional function of companies was
dominated by mass-media advertising.
Sales promotion, direct-marketing,
package design were viewed as
auxiliary (supportive) services.
Public relation were not viewed as
integral part in the marketing
communication process.
No co-ordination among promotional
tools.

IMC

IMC
Proper blend of promotional tools:

THE IMC - COMMUNICATION


PROCESS
IMC involves
identifying the target
audience and shaping
a well coordinated
promotional program
to obtain the desired
audience response.

THE BASIC COMMUNICATION


PROCESS

Noise
Distortions

THE BASIC COMMUNICATION


PROCESS
Complete communication happens when..
It grabs the attention of the receiver.
It must be properly decoded (understood) by the
receiver.
It must stimulate (motivate) the needs of the
receiver & suggest appropriate method to satisfy these
needs.

MARKETING COMMUNICATION
PROCESS

Feedback
(Mktg Research,
Sales Reports)

MARKETING COMMUNICATION
PROCESS
Marketing Manager = Sender of the message.
Ad copy, Publicity material, Sale promo displays =
Encoding
Print Media press & Magazines electronic media =
Channel Media
Consumer Interpretation = Decoding of message
Response = Feedback

STEPS IN DEVELOPING
EFFECTIVE COMMUNICATION
Identify the Target Audience.
Determine the Communication Objectives.
Design a Message
Choose a Media
Select Message Source
Collect Feedback

STEPS IN DEVELOPING EFFECTIVE


COMMUNICATION ~ TARGET AUDIENCE~
Who are the target
audience?
Potential Buyers
Current users
Individual
Groups
Publics

STEPS IN DEVELOPING EFFECTIVE COMMUNICATION


~ COMMUNICATION OBJECTIVES ~
What is/are communication
objectives?
Once the target audience has been
identified, the next step is to decide
the response sought (try to find)
from the audience
Find out where the target audience
now stands and to what stage it
needs to be moved

STEPS IN DEVELOPING EFFECTIVE COMMUNICATION


~ COMMUNICATION OBJECTIVES ~
the buyer readiness stages:
the stages consumers normally pass through on
their way to purchase, including awareness,
knowledge, liking, preference, conviction (opinion),
and purchase.

STEPS IN DEVELOPING EFFECTIVE


COMMUNICATION ~ DESIGNING MESSAGE~
Developing an effective message to communicate
effectively to the audience.
Follow the AIDA structure
Attention
Interest
Desire
Action

STEPS IN DEVELOPING EFFECTIVE


COMMUNICATION ~ DESIGNING MESSAGE~

Focus on Message Content, Message Structure,


Message Format
Message Content: Figure out an Appeal or Theme
(Rational, Emotional and Moral)
Message Structure: Draw a conclusion or let audience
decide, convey strongest arguments points first or
last, convey one sided or two sided arguments
Message Format: Print (headline, color, illustration),
Radio(music, voice), Television (characters,
expressions)

STEPS IN DEVELOPING EFFECTIVE


COMMUNICATION ~ CHOOSING MEDIA~
Two ways of selecting a Media
Personal Communication Channels Channels
through which two or more people communicate directly
with each other
Non-Personal Communication Channels Channels
that carry message without personal contact or feedback,
including major media, atmosphere, events.

STEPS IN DEVELOPING EFFECTIVE COMMUNICATION


~ MESSAGE SOURCE & FEEDBACK~
Either personal or non-personal communication, talks
about impact of the message
More Credible, More Persuasive
Collecting Feedback Finding out whether the
audience has remembered the message, how many
times they have been exposed to the message, how
many people bought the product or service

SETTING THE TOTAL PROMOTION


BUDGET AND MIX
After deciding the communication structure,
the next step is to decide on How much
should be spent?
The amount or budget depends upon the
nature of product and sector
Four common methods are followed to set the
total budget for advertising

SETTING THE TOTAL PROMOTION


BUDGET AND MIX
Affordable Method
Percentage of Sales Method
Competitive-parity Method
Objective and task Method

AFFORDABLE METHOD
Setting the promotion budget at
the level management thinks the
company can afford.
Small business houses tend to use this
method.
Promotion budget is treated the last
remaining expense.
Ignores the importance of advertising.

PERCENTAGE OF SALES METHOD


Setting a promotion budget at
a certain percentage of current
or forecasted sales or as a
percentage of the unit sales.
An ad budget is determined by
multiplying projected sales revenue
for the year by a given percentage.
The amount of money available for
advertising is based directly on
sales achievement of the brand.

COMPETITIVE-PARITY METHOD
Setting the promotion budget to
match competitors outlay.
This method depends upon the
amount of competitive spending.
The amount to be spent need not be
precisely the same as that of
competitors.
A major drawback of those method is
that it assumes that competitors
know what they are doing or that
competitors goals are the same as
ones own

OBJECTIVE AND TASK METHOD


develops the promotion
budget by;
defining specific objectives
(Objectives may be sales,
share volume levels, revenues
expected, income, or profit)
determining the tasks must
be performed to achieve these
objectives
estimating the costs of
performing these tasks

SETTING THE OVERALL


COMMUNICATION MIX
How do we decide what mix of promotion tools to use?
The nature of each promotion tool
The promotion mix strategy

THE NATURE OF EACH PROMOTION


TOOL ~ADVERTISING~
Advertising
Can reach masses at low cost
Allows repetition of message
Consumers tend to believe
whatever is presented
Allows the advertiser to use
pictures, videos
Advertising triggers quick
sales

Advertising
Its impersonal
Cant directly persuade
One way communication
Might not get the proper
attention
Costly

THE NATURE OF EACH PROMOTION


TOOL ~PERSONAL SELLING~
Personal Selling
Most effective tool
Personal interaction
Address directly to the proper
issues
Trusted relationship
Long term relationship

Personal Selling

Long term commitment than advertising

Sales force size harder to change

Most expensive promotion tool

THE NATURE OF EACH PROMOTION


TOOL ~SALES PROMOTION~
Sales promotion
Extensive range of tools like offers,
contests, coupons, discounts etc
Easily attract customers
Increase sales

Sales promotion

Only for short term

Not effective for building long brand preference

THE NATURE OF EACH PROMOTION


TOOL ~PUBLIC RELATIONS~
PR
Very believable
Useful for those customers who
ignore sales force and
advertisements
Message is considered to be in
form of news rather than sales
communication

PR

Tend to be used at the end

Ignored as a main communication tool

THE NATURE OF EACH PROMOTION


TOOL ~DIRECT MARKETING~
Direct Marketing
Non Public (directed to target)
Immediate and customized
Interactive

PUSH AND PULL


Push Strategy A promotion strategy that calls for using
the sales force and trade promotion to push the
product through channels.
The producer promotes the product to wholesalers,
the wholesalers, the wholesalers promote to
retailers and the retailers promote to consumers

PROMOTION MIX STRATEGY


The Push and Pull Strategy

Producer

Personal
Selling,
Trade
Promotion
By producer

Retailers
&
Wholesale
rs

Personal
Selling,
advertising,
sales
Consumer
promotion

By reseller

PUSH AND PULL


Pull Strategy A promotion strategy that calls for
spending a lot on advertising and consumer
promotion to build up consumer demand.
If successful consumers will ask their retailers for
the product, the retailers will ask wholesalers and
wholesalers to producer

PROMOTION MIX STRATEGY


Pull Strategy

Producer

Demand

Retailers
&
Wholesale
rs

Demand

Consumer
s

Producer marketing activities (ad, sales promo)

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