Chapter 1Chapter 1Integrated Marketing CommunicationIntegrated Marketing Communication

Khondaker Sazzadul KarimKhondaker Sazzadul KarimAssociate Professor, MarketingAssociate Professor, Marketing

Faculty of Business, NUB.Faculty of Business, NUB.

Communication and IMC ProgramsCommunication and IMC Programs

Communication: Communication is defined as Communication: Communication is defined as transmitting, receiving and processing transmitting, receiving and processing information.information.

A model of communication is shown in figure 1.1A model of communication is shown in figure 1.1Assume someone plan to buy a new pair of Assume someone plan to buy a new pair of

athletic shoes and manufacturer are athletic shoes and manufacturer are communicating with the prospective buyers.communicating with the prospective buyers.

11stst Typical Senders: Manufacturer that sell the Typical Senders: Manufacturer that sell the shoesshoes

22ndnd Encoding: Attention getting marketing ideas. Encoding: Attention getting marketing ideas.

Elements in the Communication Elements in the Communication ProcessProcess

Personal ChannelsPersonal ChannelsPersonal ChannelsPersonal Channels

Communications ChannelsCommunications Channels

Nonpersonal Channels

Nonpersonal Channels

Personal Selling

Word of Mouth

Print Media

Broadcast Media

Communication and IMC ProgramsCommunication and IMC Programs33rdrd Transmission device: Channel and Medium; Transmission device: Channel and Medium; Television Ad, Billboard, Friday newspaper, Television Ad, Billboard, Friday newspaper, Direct mailDirect mail

44thth Decoding: Message touches the receiver Decoding: Message touches the receiver senses, Hear and see the ad, Handle and read senses, Hear and see the ad, Handle and read the coupon, Smell the perfume samplethe coupon, Smell the perfume sample

55thth Receiver: Effective receivers responding in Receiver: Effective receivers responding in shopping, and telling their friends about the shopping, and telling their friends about the shoesshoes

Noise: Anything distort or disrupt the message. Noise: Anything distort or disrupt the message.

Noise are shown in figure 1.2.Noise are shown in figure 1.2.

Communication and IMC ProgramsCommunication and IMC ProgramsFeedback:Feedback: Forms of purchase, inquiries, Forms of purchase, inquiries,

complaints, questions, visits to the stores, hits to complaints, questions, visits to the stores, hits to the websitesthe websites

Clutter: Most common form of noise in marketing Clutter: Most common form of noise in marketing communication process is called “Clutter”.communication process is called “Clutter”.

Clutter include:Clutter include:Jammed NewspaperJammed NewspaperBarrage of BillboardsBarrage of BillboardsBus and Taxi Car transit adBus and Taxi Car transit adWeb site and server loaded with adWeb site and server loaded with ad

Integrated Marketing Integrated Marketing Communication (IMC)Communication (IMC)

Definition: IMC is the coordination and integration Definition: IMC is the coordination and integration of all marketing communication tools, avenues of all marketing communication tools, avenues and sources within a company into a seamless and sources within a company into a seamless program that maximize the impact on consumers program that maximize the impact on consumers and other end users at a minimum cost.and other end users at a minimum cost.

IMC plan begins with development and IMC plan begins with development and coordination of Marketing Mix, elements of coordination of Marketing Mix, elements of prices, products, and distribution methods.prices, products, and distribution methods.

An Integrated Marketing An Integrated Marketing Communication PlanCommunication Plan

11stst Step: Situation Analysis: External and Internal Analysis. Step: Situation Analysis: External and Internal Analysis.

22ndnd Marketing Objectives: Sales, Market share, Desired Marketing Objectives: Sales, Market share, Desired

customer action.customer action.

33rdrd Marketing Budget Marketing Budget

44thth Marketing Strategies: Positioning, differentiation and Marketing Strategies: Positioning, differentiation and

Branding strategies.Branding strategies.

55thth Marketing Tactics: Day to day necessary steps to Marketing Tactics: Day to day necessary steps to

support Marketing Strategies.support Marketing Strategies.

66thth Evaluation of Performance Evaluation of Performance

IMC ComponentsIMC Components

Figure 1.5 An IMC PlanFigure 1.5 An IMC Plan

11stst level: The Foundation: Chapter 2,3,4,5. level: The Foundation: Chapter 2,3,4,5.

22ndnd level: Advertising Tools: 6,7,8,9. level: Advertising Tools: 6,7,8,9.

33rdrd level: Promotional Tools: 10,11,12,13. level: Promotional Tools: 10,11,12,13.

44thth level: Integration Tools: 14, 15, 16. level: Integration Tools: 14, 15, 16.

Refining the IMC ProgramRefining the IMC Program

11st st Stage: Identify communicate and manage all Stage: Identify communicate and manage all forms of external communication.forms of external communication.IMC Umbrella. IMC Umbrella. Coordinate all advertising and public relation Coordinate all advertising and public relation activities.activities.

22ndnd Stage: The firms goal must be to extend the Stage: The firms goal must be to extend the scope of communication to include everyone scope of communication to include everyone touched by the organization.touched by the organization.

e.g. Employee, distributors, retailers, dealers, e.g. Employee, distributors, retailers, dealers, product package designers, and so forth.product package designers, and so forth.

Refining the IMC ProgramRefining the IMC Program

33rdrd Stage: Apply information technology in Stage: Apply information technology in IMC program; Database, Ecommerce.IMC program; Database, Ecommerce.

Last Stage: Treat IMC as an investment.Last Stage: Treat IMC as an investment.

Calculate and establish Customer Value and Calculate and establish Customer Value and Understand each Customer worth.Understand each Customer worth.

Growth of Information TechnologyGrowth of Information Technology

Computer Tech: Huge data of Customer can Computer Tech: Huge data of Customer can gather quicklygather quickly

Advanced Statistical SoftwareAdvanced Statistical Software

Connection between financial (Credit cards, Connection between financial (Credit cards, Banking) and Business.Banking) and Business.

Purchasing the data from Research Firms Purchasing the data from Research Firms

Universal Product Code ( UPC): Helps to control Universal Product Code ( UPC): Helps to control and evaluate inventory requirements through and evaluate inventory requirements through computer scanning by the retailers.computer scanning by the retailers.

Brand ParityBrand Parity

When consumer believe that many brands offer When consumer believe that many brands offer the same attributes, the result is called brand the same attributes, the result is called brand parity. parity.

Minor quality difference between the brands.Minor quality difference between the brands.

So, purchase based on price, availability or specific So, purchase based on price, availability or specific promotional deals but NOT Quality.promotional deals but NOT Quality.

IMC: Marketers must generate messages in a voice IMC: Marketers must generate messages in a voice that expresses a clear differences and build a that expresses a clear differences and build a perceived brand superiority.perceived brand superiority.

Globally Integrated Marketing Globally Integrated Marketing Communications (GIMC)Communications (GIMC)

GIMC is the final extension to an IMC plan, which GIMC is the final extension to an IMC plan, which occur in the international arena.occur in the international arena.

GIMC Goal: Coordinate all marketing efforts.GIMC Goal: Coordinate all marketing efforts.GIMC Challenge: Larger national and cultural GIMC Challenge: Larger national and cultural

differences.differences.GIMC Two Strategies:GIMC Two Strategies:11stst Approach: Standardized the product and message Approach: Standardized the product and message

across the countriesacross the countriesGoal: Goal:

Generating Economies of Scale in production.Generating Economies of Scale in production.Using the same promotional theme.Using the same promotional theme.

Globally Integrated Marketing Globally Integrated Marketing Communications (GIMC)Communications (GIMC)

22ndnd Approach: Adaptation: Approach: Adaptation:

Product and Marketing messages were designed Product and Marketing messages were designed and adapted to individual countries. and adapted to individual countries.

Synergy can occur between countries.Synergy can occur between countries.

Telecommunication and satellite technology Telecommunication and satellite technology continuously expands and contact between the continuously expands and contact between the peoples of different countries.peoples of different countries.

Globally Integrated Marketing Globally Integrated Marketing Communications (GIMC)Communications (GIMC)

So in terms of Marketing, perhaps the best So in terms of Marketing, perhaps the best philosophy to follow is “philosophy to follow is “Think Globally but Act Think Globally but Act Locally”Locally”

Strategy: Message should be designed with a Strategy: Message should be designed with a global theme in mind, so the same general global theme in mind, so the same general message is heard throughout the world. message is heard throughout the world.

At the same time, When marketers design and At the same time, When marketers design and encode message for the local market, they need encode message for the local market, they need to have the freedom to tailor or alter the to have the freedom to tailor or alter the message so that it fit the local culture and the message so that it fit the local culture and the target market.target market.

Review Questions (Page 21)Review Questions (Page 21)

1,2,3,4,5,6,7,8,11,12,15,16,17.1,2,3,4,5,6,7,8,11,12,15,16,17.