Integrated Marketing Communication Changing nature of marketingChanging nature of marketing Marketing mix beyond 4 P’s. – people, positioning, Marketing mix beyond 4 P’s. – people, positioning,

profitability, processes, planningprofitability, processes, planning Communications mix including selling;advertising;sales Communications mix including selling;advertising;sales

promotion; direct marketing; publicity; exhibitions; promotion; direct marketing; publicity; exhibitions; packaging; POP sales and merchandising;internet; word packaging; POP sales and merchandising;internet; word of mouth; corporate communication; sponsorships etcof mouth; corporate communication; sponsorships etc

IMC creates competitive advantage, boosts sales, saves IMC creates competitive advantage, boosts sales, saves time and effort. It is focused and cohesive.time and effort. It is focused and cohesive.

Inter department ego, limitations to creativity are some Inter department ego, limitations to creativity are some barriers to IMC.barriers to IMC.

The marketing communications planning and behavior S – Situation Analysis (where are we now?)S – Situation Analysis (where are we now?)

O – Objectives (where do we want to go?)O – Objectives (where do we want to go?) S – Strategy (how do we get there?)S – Strategy (how do we get there?) T – Tactics ( Details of strategy)T – Tactics ( Details of strategy) A – ActionsA – Actions C – Control (measurement, review, modify)C – Control (measurement, review, modify) Awareness; Interest; Evaluation; Trial; AdoptionAwareness; Interest; Evaluation; Trial; Adoption Consumer buying behavior – who?, why buy; How, when Consumer buying behavior – who?, why buy; How, when

and where do they buy – prerequisite to communications and where do they buy – prerequisite to communications planning.planning.

Motivation,perception, attitude, memory, lifestyle,opinions, Motivation,perception, attitude, memory, lifestyle,opinions, groups, culture, religion – influence consumer psychology groups, culture, religion – influence consumer psychology and behavior.and behavior.

The ICM process

Understanding markets for target productsUnderstanding markets for target products Understanding consumers in defined markets for target Understanding consumers in defined markets for target

products and mapping.products and mapping. Understanding behavior, competition, environment, and Understanding behavior, competition, environment, and

demographics.demographics. Market research programsMarket research programs MIS MIS Communications strategy, objectives, and planCommunications strategy, objectives, and plan Communications campaignsCommunications campaigns Communications monitoring and impactCommunications monitoring and impact Assessment, audits, review and corrective actionsAssessment, audits, review and corrective actions

The changing global communications environment Fast changing diverse global comm. Environment – Fast changing diverse global comm. Environment –

people; places; Technology;desires;habits;wants; people; places; Technology;desires;habits;wants; reachreach

Legislation and Regulatory – trade & merchandise Legislation and Regulatory – trade & merchandise Act ; Copyright Act ; IPR and patent Act & law; Data Act ; Copyright Act ; IPR and patent Act & law; Data protection; Advertising regulation, censorship, DTHprotection; Advertising regulation, censorship, DTH

Economics : Recession, Rural Growth; varied Economics : Recession, Rural Growth; varied markets; retail expansion ; Net shopmarkets; retail expansion ; Net shop

Demographics; youth aspirations; education ; health; Demographics; youth aspirations; education ; health; sports; travel; lifestyle; women; childrensports; travel; lifestyle; women; children

Technology – 1% today of what 2050 will be! – its Technology – 1% today of what 2050 will be! – its capacity to influence innovation, research,needs!capacity to influence innovation, research,needs!

International marketing communication Global opportunity as never beforeGlobal opportunity as never before Greater sensitivity to national differences and capacity to Greater sensitivity to national differences and capacity to

adapt to them.adapt to them. Language,literacy,color,culture,media, lack of media data, Language,literacy,color,culture,media, lack of media data,

usage, characteristics,, standards, costs, and restrictionsusage, characteristics,, standards, costs, and restrictions Consumers, markets, economics, logistics;lifestyles; Consumers, markets, economics, logistics;lifestyles;

competition; perceptionscompetition; perceptions Global communication strategy; centralized or Global communication strategy; centralized or

decentralized; central and local mix ; local production; decentralized; central and local mix ; local production; manpower issues; sustainability and use of joint ventures.manpower issues; sustainability and use of joint ventures.

Growing importance of IMC

Shift from media advertising to consumer and Shift from media advertising to consumer and trade promotions.trade promotions.

Fragmentation of media markets – to direct mail Fragmentation of media markets – to direct mail and event sponsorshipsand event sponsorships

Shift in market place power from manufacturer to Shift in market place power from manufacturer to retailerretailer

Rapid growth of data base marketing – telemktg; Rapid growth of data base marketing – telemktg; direct response mktgdirect response mktg

Shift to in house media buying practicesShift to in house media buying practices

IMC planning Model

Review of Marketing Plan ->Review of Marketing Plan -> Analysis of Promotional Program ->Analysis of Promotional Program -> Analysis of the communication process ->Analysis of the communication process -> Budget determination ->Budget determination -> Develop integrated marketing communications programDevelop integrated marketing communications program Promotional Mix – Advertising – Direct Marketing – Promotional Mix – Advertising – Direct Marketing –

Sales Promotion – Publicity/PR – Personal Sales Promotion – Publicity/PR – Personal selling/events/sponsorships/digitalselling/events/sponsorships/digital

Integrate and implement IMC strategiesIntegrate and implement IMC strategies Monitor, evaluate and control IMC programsMonitor, evaluate and control IMC programs

Marketing Strategy – Role of advertising and Promotion Opportunity analysis for Co; products; segments; target Opportunity analysis for Co; products; segments; target

markets ; consumers, COD, etc.markets ; consumers, COD, etc. Competitive Analysis – competitive advantages, edge, SWOT, Competitive Analysis – competitive advantages, edge, SWOT,

outlook.outlook. Target market selection – product mix – branding – packaging Target market selection – product mix – branding – packaging

– costs – demand – competition – pricing & perceived value – – costs – demand – competition – pricing & perceived value – COD selection, criteria – developing promotional strategies – COD selection, criteria – developing promotional strategies – push:pull – promotion to final buyers.push:pull – promotion to final buyers.

National Advertising : Regional : Retail : Direct Response : National Advertising : Regional : Retail : Direct Response : Industrial : Professional:Industrial : Professional:

Macro marketing environment demographic, technological, Macro marketing environment demographic, technological, economic, social, regulatory.economic, social, regulatory.

Role of Consumer Behavior in IMC Desire to influence purchase behavior of consumers. – as Desire to influence purchase behavior of consumers. – as

the process and activities people engage in when searching, the process and activities people engage in when searching, purchasing, using,,evaluating products and services to purchasing, using,,evaluating products and services to satisfy needs and desires.satisfy needs and desires.

How consumers gather info regarding various alternatives How consumers gather info regarding various alternatives and use this to select brands. Understand and use this to select brands. Understand Consumer Consumer decision processdecision process and reasons for purchase. – Opinion and reasons for purchase. – Opinion Groups.Groups.

Problem recognition : Info search: Alternative evaluation : Problem recognition : Info search: Alternative evaluation : Purchase decision: Post evaluationPurchase decision: Post evaluation

Motivation : Perception : Attitude formation: Integration : Motivation : Perception : Attitude formation: Integration : Learning (Learning (Psychological Processes)Psychological Processes)

Consumer Behavior - IMC Maslow’s hierarchy of needsMaslow’s hierarchy of needs In-depth interviews ; projective techniques; association tests ; In-depth interviews ; projective techniques; association tests ;

focus groupsfocus groups Information Information from – personal sources ; commercials ; public from – personal sources ; commercials ; public

sources ; personal experiences – sources ; personal experiences – PerceptionPerception – individual – individual process – process – Sensation – Selection – Alternatives and evoked Sensation – Selection – Alternatives and evoked set – set – brands identified during alternative evaluation – TOM brands identified during alternative evaluation – TOM advertising for reminders – advertising for reminders – evaluative criteria – evaluative criteria – attributes /beliefs – purchase decision – post evaluation – attributes /beliefs – purchase decision – post evaluation – loyalty –loyalty –23% TO 71% loyalty to different brands. – positive 23% TO 71% loyalty to different brands. – positive or negative consequences – repeat buying or drop probability or negative consequences – repeat buying or drop probability of a brand. - schemes assist in repeat purchase behavior.of a brand. - schemes assist in repeat purchase behavior.

Consumer Behavior - IMC

Reference groups – family, friends etcReference groups – family, friends etc The initiator – info provider – influencer – decision The initiator – info provider – influencer – decision

maker – purchasing agent – consumermaker – purchasing agent – consumer Situational determinantsSituational determinants Unconditioned and conditioned stimulusUnconditioned and conditioned stimulus IMC must take into account various aspects of CB in a IMC must take into account various aspects of CB in a

target market for target products and integrate its target market for target products and integrate its manipulation in the communication process to elicit manipulation in the communication process to elicit positive response from consumers.positive response from consumers.

CB understanding changes and evolves and is a CB understanding changes and evolves and is a continuous process for IMC managers.continuous process for IMC managers.

Communications process Source encoding – putting thoughts, ideas or Source encoding – putting thoughts, ideas or

information into a symbolic form familiar to the information into a symbolic form familiar to the target audience in such a way that it will be target audience in such a way that it will be understood by the receiver.understood by the receiver.

Development of message into a transmittable form Development of message into a transmittable form that appropriate for the channel of communication that appropriate for the channel of communication being used involving semiotics – meaning of being used involving semiotics – meaning of communication lies with the people who see and communication lies with the people who see and interpret it.interpret it.

Channel of communication – direct, mass,personalChannel of communication – direct, mass,personal Receiver decoding – the process of transforming Receiver decoding – the process of transforming

the senders message back into thought – process the senders message back into thought – process of receiver must match the encoding of the sender of receiver must match the encoding of the sender within the receivers framework of reference. within the receivers framework of reference.

Communications process Noise – unplanned distortion or interference in the Noise – unplanned distortion or interference in the

communications process.communications process. Response/ feed backResponse/ feed back Analyzing the receiver – target audienceAnalyzing the receiver – target audience AIDA model – attention, interest, desire, action. – AIDA model – attention, interest, desire, action. –

hierarchy of effects model, innovation adoption hierarchy of effects model, innovation adoption model, information processing model.model, information processing model.

Standard learning hierarchy ( learn – feel – do) – Standard learning hierarchy ( learn – feel – do) – dissonance/ attribution hierarchy ( do – feel – dissonance/ attribution hierarchy ( do – feel – learn) – the low involvement hierarchy ( learn – learn) – the low involvement hierarchy ( learn – do – feel)do – feel)

Integrated information response model (Robert Integrated information response model (Robert Smith and William Swinyard), involvement model Smith and William Swinyard), involvement model ( Judith Zaichkowsky), The Foote, Cone and ( Judith Zaichkowsky), The Foote, Cone and Belding ( FCB) Grid.Belding ( FCB) Grid.

Communications process Model of cognitive response.Model of cognitive response. The Elaboration Likely hood Model (ELM) The Elaboration Likely hood Model (ELM)

( Richard Petty and John Cacioppo) – central and ( Richard Petty and John Cacioppo) – central and peripheral route to persuasion which are a function peripheral route to persuasion which are a function of the receivers motivation and ability to process a of the receivers motivation and ability to process a message.message.

High involvement level of target audience need High involvement level of target audience need strong arguments – low level needs peripheral strong arguments – low level needs peripheral ques.ques.

The IMC manager needs to learn as much as The IMC manager needs to learn as much as possible about target markets and how it may possible about target markets and how it may respond to marketing communication effortsrespond to marketing communication efforts

Determining ASP objectives Realistic ASP objectives guide the development of Realistic ASP objectives guide the development of

the IMC programthe IMC program Budgeting for ASP, creative and media strategies Budgeting for ASP, creative and media strategies

evolve from these objectives against which evolve from these objectives against which performance can be measuredperformance can be measured

Companies fail to understand values of objectives. Companies fail to understand values of objectives. Necessary that all departments, agencies have Necessary that all departments, agencies have written and approved objectives for ASP within written and approved objectives for ASP within the companies marketing strategythe companies marketing strategy

Objectives should be measurable to evaluate the Objectives should be measurable to evaluate the effectiveness of the IMCeffectiveness of the IMC

Situation analysis identify marketing and Situation analysis identify marketing and promotional issues facing the brand or the promotional issues facing the brand or the company. company.

Determining ASP objectives Promotional objectives evolve from marketing Promotional objectives evolve from marketing

plan and MO ( territory, customer, product mix, plan and MO ( territory, customer, product mix, brands, COD, segments and competition, brands, COD, segments and competition, positioning, quantifiable targets.) Role of IMC in positioning, quantifiable targets.) Role of IMC in achieving marketing goals. Translate MO’s into achieving marketing goals. Translate MO’s into communication goals and specific promotional communication goals and specific promotional objectives.objectives.

Sales functions of many factors including IMC Sales functions of many factors including IMC and they must all be coordinated to achieve MO’s and they must all be coordinated to achieve MO’s recognizing that results of IMC maybe over recognizing that results of IMC maybe over medium to long term. Hierarchical models relevant medium to long term. Hierarchical models relevant ( Lavidge and Steiner)( Lavidge and Steiner)

IMC is not a quick fix solution to achieve sales IMC is not a quick fix solution to achieve sales objectives. Use of communications effect pyramid objectives. Use of communications effect pyramid ( awareness – knowledge – liking – preference – ( awareness – knowledge – liking – preference – trial – purchase – use)trial – purchase – use)

Determining ASP objectives Communications objectives include increasing Communications objectives include increasing

percentage of consumers in target market who percentage of consumers in target market who associate with brand.associate with brand.

Increasing number of consumers in target Increasing number of consumers in target audience who prefer our brand.audience who prefer our brand.

Encouraging current users of product to use it Encouraging current users of product to use it more frequently or in more situations.more frequently or in more situations.

Encouraging trial purchase. POP/ POD are Encouraging trial purchase. POP/ POD are relevant to CB and communications processrelevant to CB and communications process

DAGMAR approach to setting objectives DAGMAR approach to setting objectives ( defining advertising goals for measured ( defining advertising goals for measured advertising results) Colley argues that ASP advertising results) Colley argues that ASP objectives should be stated in terms of concrete objectives should be stated in terms of concrete and measurable communication tasks and time and measurable communication tasks and time lineslines

Determining ASP objectives Benchmarking degree of change sort in Benchmarking degree of change sort in

target market status in specified time period.target market status in specified time period. Limitations of DAGMAR and zero based Limitations of DAGMAR and zero based

communications planning which focuses on communications planning which focuses on what task needs to be done, which what task needs to be done, which marketing communication functions we use marketing communication functions we use and to what extend.and to what extend.

Promotional budget – top down approaches Promotional budget – top down approaches – arbitrary allocation – percentage of sales – – arbitrary allocation – percentage of sales – competitive parity – ROI – objective and competitive parity – ROI – objective and task method – payout planning for three task method – payout planning for three years – quantitative models – organizational years – quantitative models – organizational issues, market size, potential, agency, policyissues, market size, potential, agency, policy

Developing the IMC program Creativity is very important in advertising – the Creativity is very important in advertising – the

ability to generate fresh, unique and appropriate ability to generate fresh, unique and appropriate ideas that can be used as solutions to ideas that can be used as solutions to communication problems relevant to target communication problems relevant to target audience.audience.

Advertising standards from D’Arcy Masius Advertising standards from D’Arcy Masius Benton and Bowles – ASP must position the Benton and Bowles – ASP must position the product simply and with unmistakable clarity – product simply and with unmistakable clarity – built on the most compelling and persuasive built on the most compelling and persuasive consumer benefit – with a core creative idea – consumer benefit – with a core creative idea – designing brand personality – different from designing brand personality – different from competition – single focus – with emotional competition – single focus – with emotional stimulus – visually arresting – visuals, writing and stimulus – visually arresting – visuals, writing and music that are expertly crafted.music that are expertly crafted.

Developing the IMC program Creative challenge centers around the brand and Creative challenge centers around the brand and

key messages – Young’s model – immersion, key messages – Young’s model – immersion, digestion, incubation, illumination and verification.digestion, incubation, illumination and verification.

Background research important reference to Background research important reference to product/ service.product/ service.

Formulation of creative strategy – basic issue – Formulation of creative strategy – basic issue – ASP and communication objectives – target ASP and communication objectives – target audience – major selling idea (USP) – creative audience – major selling idea (USP) – creative strategy – supportive information – copy platform – strategy – supportive information – copy platform – creating a brand image – the story board, drama.creating a brand image – the story board, drama.

Using advertising to appeal to social consciousness Using advertising to appeal to social consciousness – feature appeal, competitive advantage appeal, – feature appeal, competitive advantage appeal, favorable price appeal, news appeal, emotional favorable price appeal, news appeal, emotional appeal.appeal.

Developing the IMC program Different types of advertising messagesDifferent types of advertising messages Creative tactics – for print – headline, body copy and Creative tactics – for print – headline, body copy and

visual/ illustration – layout.visual/ illustration – layout. For TV – video, audio – digital – pre production For TV – video, audio – digital – pre production

activity – production – post production – client activity – production – post production – client approval.approval.

Evaluating creative outputEvaluating creative output Media planning and strategyMedia planning and strategy – situation analysis to – situation analysis to

understand the marketing problem and marketing understand the marketing problem and marketing strategy – what to communicate through ASP – strategy – what to communicate through ASP – creative strategy plan.creative strategy plan.

Setting media objectives to translate MO and MS into Setting media objectives to translate MO and MS into goals that media can accomplish – determining media goals that media can accomplish – determining media strategy – selecting media vehicles based on audience strategy – selecting media vehicles based on audience size.size.

Developing the IMC program Target market and audience identification – influence Target market and audience identification – influence

of internal and external factor – place of promotionof internal and external factor – place of promotion Establishing media objectives including media mix, Establishing media objectives including media mix,

percentage coverage, frequency, reach, timing etc.percentage coverage, frequency, reach, timing etc. Determine target market coverage, geographic Determine target market coverage, geographic

coverage, scheduling (continuity, flighting, pulsing)coverage, scheduling (continuity, flighting, pulsing) Establishing reach and frequency objectives – use of Establishing reach and frequency objectives – use of

gross rating points (GRP= reach x frequency) TRP – gross rating points (GRP= reach x frequency) TRP – number of people in the primary target audience which number of people in the primary target audience which the media will reach and how many times - the media will reach and how many times - Effective Effective reach reach represents the percentage of a vehicle audience represents the percentage of a vehicle audience reached at each effective frequency increment.reached at each effective frequency increment.

Developing the IMC program Budget consideration and relative costs of Budget consideration and relative costs of

mediamedia Media characteristics for TV – radio – Media characteristics for TV – radio –

magazines – newspapers – outdoor – digital magazines – newspapers – outdoor – digital – direct mail ( read Denny’s restaurant – direct mail ( read Denny’s restaurant media plan)media plan)

IMC – Direct Marketing Direct marketing refers to a system of marketing Direct marketing refers to a system of marketing

by which organizations communicate directly with by which organizations communicate directly with target customers to generate a response.target customers to generate a response.

Objectives of the program, which markets to Objectives of the program, which markets to target, what direct marketing strategies to use and target, what direct marketing strategies to use and how to evaluate the effectiveness of the program.how to evaluate the effectiveness of the program.

Requirement of database for selection of market Requirement of database for selection of market segments and direct consumer contact.segments and direct consumer contact.

Direct mail, catalogs, credit cards.Direct mail, catalogs, credit cards. Infomercials on TV and teleshopping.Infomercials on TV and teleshopping. Telemarketing and DTH selling.Telemarketing and DTH selling. Selective reach, frequency levels, flexibility, Selective reach, frequency levels, flexibility,

timing, personalization and costs.timing, personalization and costs.

IMC - Sales Promotion A direct inducement that offers an extra value for A direct inducement that offers an extra value for

the product to the sales force, COD, and consumers.the product to the sales force, COD, and consumers. Trade oriented – trade allowances, POP displays, Trade oriented – trade allowances, POP displays,

contests and dealer incentives, training programs, contests and dealer incentives, training programs, trade shows and retailing.trade shows and retailing.

Consumer oriented – samples, coupons, premiums, Consumer oriented – samples, coupons, premiums, refunds, contests, free gifts, price offs, event refunds, contests, free gifts, price offs, event sponsorships.sponsorships.

Growing power of retailers.Growing power of retailers. Declining brand loyalty and increased promotional Declining brand loyalty and increased promotional

sensitivity.sensitivity. Brand proliferation, and fragmentation of the Brand proliferation, and fragmentation of the

consumer market.consumer market.

IMC – Sales Promotion Maintaining competitive advantageMaintaining competitive advantage Sales promotion objective for trade and consumers Sales promotion objective for trade and consumers

must be defined for new and established brands as must be defined for new and established brands as part of IMC processpart of IMC process

Objectives would include obtaining trial and Objectives would include obtaining trial and repurchase, increase in consumption of an repurchase, increase in consumption of an established brand, protecting current customers, established brand, protecting current customers, supporting advertising and marketing effortssupporting advertising and marketing efforts

Obtain distribution support for new products and Obtain distribution support for new products and maintain for established brands, increase display maintain for established brands, increase display and visibility, build retail inventories, trade and visibility, build retail inventories, trade discounts and allowances and sales training discounts and allowances and sales training programsprograms

Balancing SP with ASP campaign, budgeting, Balancing SP with ASP campaign, budgeting, frequency, territory, timing, costs, evaluation.frequency, territory, timing, costs, evaluation.

IMC – Public Relations Evaluation of public attitudes, execution of Evaluation of public attitudes, execution of

organizational policies and procedures of public organizational policies and procedures of public interests to earn public understanding and interests to earn public understanding and acceptanceacceptance

Integrating PR into promotional mixIntegrating PR into promotional mix Marketing public relations (MPR) includes as per Marketing public relations (MPR) includes as per

Thomas Harris, building market place excitement, Thomas Harris, building market place excitement, creating advertising news, product launch, creating advertising news, product launch, customer bonding, influencing opinion leaders, customer bonding, influencing opinion leaders, defending productsdefending products

Incorporate public attitudes into planning process, Incorporate public attitudes into planning process, serves as early warning system, makes serves as early warning system, makes communication process effectivecommunication process effective

Establishing and developing a PR programEstablishing and developing a PR program

IMC – Public Relations PR for internal and external audiences – PR for internal and external audiences –

employees, stock holders and investors, employees, stock holders and investors, community, suppliers and customers, community, suppliers and customers, media, educators and associations, media, educators and associations, governments, financial groupsgovernments, financial groups

Implementing PR – press release, Implementing PR – press release, conference, interviews, community conference, interviews, community involvementinvolvement

Building image, crisis managementBuilding image, crisis management

IMC - Publicity Powerful tool of communication – credible, Powerful tool of communication – credible,

objective, inspires confidence, has news value and objective, inspires confidence, has news value and encourages word of mouth information regarding encourages word of mouth information regarding the firm and its products and servicesthe firm and its products and services

Non traditional publicity in rural marketsNon traditional publicity in rural markets Use of non traditional media, direct involvement Use of non traditional media, direct involvement

of consumersof consumers Corporate image buildingCorporate image building On the spot deals, discounts, COD involvementOn the spot deals, discounts, COD involvement Publicity must be integrated with ASP campaigns Publicity must be integrated with ASP campaigns

and quick advantage must be taken of the events, and quick advantage must be taken of the events, road shows and field daysroad shows and field days

Measuring the effectiveness of IMC