Chapter One
Transcript of Chapter One
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Chapter OneDevelopment of Integrated
Marcom
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IntroductionMarketing Communication is…..
‘ are messages and related media used to communicate with a market. Activities involved include advertising, branding, direct marketing, graphic designing, marketing, packaging, promotion, publicity, public relations, sales, sales promotion and online marketing.’
Answer.com, 2007
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Integrated Marketing Communication (IMC)….
‘presents aspiration for companies to develop and optimal combination of communication elements in order to maximize effects and minimize losses (defined as investment which did not result in goal achievement).’
Answer.com, 2007
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Evolution of Marketing Communications
Communication starts with..
‘Tukang Canang’
Printed media
Radio
TV
Internet
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Reasons to Communicate.. To Inform
Marketers communicate to inform about a new product in the market or new improvements made to the present product, change of location / address, new ventures and etc.
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To Persuade
Marketer wants the customer to think that their brand is the best or give the customer reasons why they should consider their specific brand instead of competitors.
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To induce action
Marketer wants the customer to get into action such as trying the products that is being promoted
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Factors that brought about to the growth of marketing communications
1. The impact of globalization
2. Change in consumer’s consumption pattern.
3. Increased number in working women
4. Decrease in government intervention
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Marketing and Marketing Communication
Product
Price
Promotion
Place
NamePackagingIngredients
RetailerAgents
Direct Marketing
AdvertisingSales PromotionPersonal Selling
PriceTerms of Trade
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The Marketing Communication Tools
• Advertising Any paid from of non-personal communication
used by an identified sponsor. Advertising can either be mass communication; using TV, newspaper, radio, direct communication
• Personal SellingThis is a face to face communications where the seller attempts to persuade the customer and the prospects for the purpose of making sales.
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• Sales PromotionAll marketing activities that attempt to stimulate quick buyer actions. It is mostly short term incentives offered to target market to encourage responses.
• Public relations The component in marketing communication that
fosters goodwill between the marketer and the public.
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• Point-of-purchaseConsists of all communications efforts carried out at the place where the buyer comes into contact with the product or actually buy the product. E.g. in-store product display, window displays and exhibitions.
• Sponsorship marketing Supporting of happenings or events with the
hope of getting good rapport for the marketer.
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Marketing Communications at the Brand Level
This is the key means for
differentiating one company’s offering
from another’s
A well-known and respected brand is an invaluable asset
Brand
A successful brand can create barriers to entry for
competitors
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Integrated Marketing Communications (IMC)
The philosophy and practice of carefully coordinating a brand’s sundry marketing communication elements.
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The Meaning of Synergy
• The payoff from IMC is that brand managers achieve
– The integration of multiple communication tools and media yield more positive communication results than the tools used individually
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Five Key Features of IMC
1. Start with the customer or prospect.
2. Use any form of relevant contact.
3. Achieve synergy (speak with a single voice).
4. Build relationships.
5. Affect behavior.
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Changes in Marketing Communication Practices
• Reduced dependence on mass media
advertising.
• Increased reliance on highly targeted
communication methods.
• Heightened demands on suppliers.
• Increased efforts to assess communications’
return on investment.
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Obstacles to Implementing IMC
• Few providers have the skills required
to execute.
• Mass media campaigns easier than
Direct-to-Customer.
• The real challenge is to make sure
that tools are consistently executed.
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Definition of Brand Equity
Brand equity can be considered either from the perspective of the organization that owns it or from the vantage point of the customer.
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As Brand Equity Increases…
1. A higher market share is achieved
2. Brand loyalty increases
3. Premium prices can be charged
4. The brand earns a revenue premium
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Two forms of Brand Knowledge
Brand Awareness
An issue of whether a brand name comes tomind when consumers think about a particular product category and the easewith which the name is evoked.
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Two Forms of Brand Knowledge
Brand Image
The types of associations that come tothe consumer’s mind when
contemplating a particular brand.
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Dimensions of Brand Personalities
• Sincerity - brand is seen as down to earth, wholesome and cheerful
• Excitement - brand is seen as daring, spirited, imaginative, and up-to-date
• Competence - brand is seen as reliable, intelligent, and successful
• Sophistication - brand is seen as upper class and charming
• Ruggedness - brand is seen as tough and outdoorsy
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3 Ways Brand Equity Is Enhanced
1. Speak-for-itself
2. Message-driven
3. Leveraging
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Co-branding and Ingredient Branding
• Co-branding
A partnership between two brands
• Ingredient branding
Inclusion of one brand within the other
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Characteristics of World Class Brands
• Delivers benefits consumers want
• Stays relevant
• Price equals value
• Good positioning
• Consistency
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Characteristics of World Class Brands
• Fits into brand portfolio
• Brand helps build brand equity
• Brand’s managers understand what the brand means to consumers
• Support over long run
• Monitoring of the sources of brand equity