IMC 2

Creating strategy

The Message Problem

Functions: Encoding – putting thoughts into symbolic forms Decoding –assign meaning to symbols encoded by the

sender Response – reactions of receiver Feedback – part of receiver’s response communicated

back to sender Noise – unplanned distortion during process,

message received differs from message sent

• Companies integrate their advertising efforts with a variety of other communication tools such as websites, direct marketing, sales promotion, publicity, and public relations, entertainment marketing, and sponsorship of events.

What is Marketing

• Marketing – an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

• Exchange – trade of something (money) of value between 2 parties

• Marketing Focuses on Relationships and Value

• IMC is about Promotion – which focuses on relationship and creation of value for the Consumer

The Market

Affects decisions related to what, how, when, and where message will be said.

Market – target audience

Target customer Primary Secondary

Non-customer targets: Potential investors Channel members Staff Financial analysts

Consumer

Understand what the consumer wants and needs.

The product characteristics must now match what someone specifically wants to buy.

Consumer is buying is the personal "buying experience."

The Brand Contacts

1. Unaware of Product

Cognitive Stage

↓

2. Awareness

↓

3. Knowledge

↓

4. Liking Affective Stage

↓

5. Preference

↓

6. Conviction -Purchase Intent

↓

7. Purchase Behavioral Stage

Four major contact points:1 Planned

Deliberate communication activities as advertising, public relations, sales promotion, direct response, packaging, signage, stationery, etc.

Most of an organization's communication programs are directed at this type of message.

Four major contact points: 2Inferred

Inferred messages are the ones sent through the impressions the company or brand makes on people, e.g. the shareholder's experience with management, the employees' perceptions of the benefit program, or the impact that the price or place of distribution (type of store) has on the customer's perception of the brand or company

Four major contact points: 3Maintenance

These messages are communicated primarily through service--how a company and its employees initiate and respond to customer contact--and that includes such things as the attitude of receptionists and secretaries, as well as user reaction to a product instruction book, or the ease of getting service.

Customer service, as well as employee relations programs, deal with some of these messages although seldom in a coherent or coordinated

way.

Four major contact points: 4Unplanned

Factors like investigations by reporters, announcements by consumer advocate groups, product recalls, employee gossip, and disasters. Public relations has acknowledged the importance of some aspects of this type of message in its approach to issues management, crisis planning, and employee relations. These efforts are often ad hoc, however, and may or may not be coordinated with any overriding corporate communication plan.

Communication Goals over the Product Life Cycle

Focus on Brand Superiority and Consumer Preferences

Focus on Brand Image and Consumer Loyalty

Time

Focus on Education about Product Class Features/Benefits and Consumer Awareness

Integrated Marketing Communications

• IMC – involves coordinating the various promotional elements and other marketing activities that communicate with a firms customers.

• IMC approach calls for a centralized messaging function so that everything a company says and does communicates a common theme and positioning.

Definition • American Association of

Advertising (the 4A’s) developed one of the first definitions of IMC: “concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines.

A contemporary View

• Don Schultz of Northwestern University developed a more appropriate definition of IMC: “IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communications programs over time with consumers, customers, prospects, etc. The goal is to generate both short term financial returns and build long term brand and shareholder value.”

Reasons for the Growing Importance of IMC

• Strategically integrated communications functions better than individual focus.

• The growth of buzz marketing whereby brand come-ons become part of popular culture, and consumers themselves are lured into spreading the message.

Reasons for the Growing Importance of IMC

It becomes important to increase brand contacts

A fundamental understanding that there is a need for greater contact points There is already a marketing mix that ensures more ready made opportunities for contact points Essentially there are four major contact points: Planned, inferred, maintenance and unplanned

The IMC “Marketing Revolution”

• Shifting of marketing dollars from media advertising to other forms of promotion, particularly consumer- and trade oriented sales promotion.

• Movement away from relying on advertising- focused approaches, which emphasize mass media such as network TV and national magazines, to solve communication problems.

• A shift in marketplace power from manufacturers to retailers. • The rapid growth and development of database marketing. • Demands for greater accountability from advertising agencies and changes

in the way agencies are compensated• The rapid growth of the internet, which is changing the very nature of how

companies do business and the ways they communicate and interact with consumers.

The Role of IMC in Branding

• Brand identity is a combination of many factors, including the name, logo, symbols, design, packaging, and performance of their product or service as well as image or type of associations that come to mind when consumers think about a brand.

• Marketers realize that there are many ways to contact current and prospective customers; the key is to find a way that delivers the message effectively and efficiently.

Communication Plan – Six M’s

Market – target audienceMission - goalsMoney - budgetMessage strategyMedia planMeasurement

CommunicationA unified message with a feedback mechanism

to make the communication two-way.Using understanding of non-traditional

mediums, such as word of mouth to influence your position in the consumer's mind.

Usage of the many ways that a potential user hears (or see) the same message through the course of the day, each message reinforcing the earlier images

• Marketing communication messages that are not recognizable, are not related to each other, conflict with what has already been stored, or are simply unrelated or unimportant to the person will simply not be processed, but ignored.

Communication only occurs when the consumer accepts, transforms, and categorizes the message. The storage and retrieval system works on the basis of matching incoming information with what has already been stored in memory.

Marketing Message and Processing

Consist of sensory and life experiences that can easily be identified and transformed into a unified concept,

Have mental relationships to other categorized ideas

Fit into the categories and mental linkages that people have already created for themselves.

The Message Judgement System

Consumers match or test new information against what they already have and then make a judgment to add to, adapt, or reject the new material. When consumers reject the information or do not add or attach it to what they already have, there is a failure to communicate.

• In many cases, the failure to communicate is the result of the marketer being unable to match his or her messages or fields of experience with those of the prospect or customer.

• The Promotional Mix: The Tools for IMC

• Promotion – coordination of all seller initiated efforts to set up channels of information and persuasions in order to sell goods and services or promote an idea.

• Promotional Mix – tools used to accomplish an organizations communication objective. Includes advertising, direct marketing, sales promotion, publicity/public relations, and personal selling.

The Brand Contacts Advertising Public Relations Personal Selling Direct Marketing

Sponsership Digital

Solutions/Interactive solutions

Sales Promotions

Advertising • Any paid form of nonpersonal

communication about an organization, product, service, or idea by an identified sponsor.

• The nonpersonal aspect means that advertising involves mass media (TV, Radio, etc.) and can transmit a message to a large group of people at once. Also, means there is no immediate feedback by recipient.

• Still the most cost effective way to reach large audiences at once. Also, is valuable tool for building company or brand equity as it is a powerful way to provide information as well as influence their perceptions.

Publicity/ Public Relations

• Publicity – nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under indentified sponsorship.

• Usually comes in the form of a news story, editorial, or announcement about an organization and or its products/services.

• Public relations – is defined as the management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance.

Direct Marketing

• Direct marketing – a system of marketing by which an organization communicates directly with customers to generate a response and or transaction.

• Fastest growing sector of the US economy

• Direct response advertising – major tool of direct marketing whereby a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer.

• Credit cards, toll free phone numbers, and the internet are fueling the growth of direct marketing.

Digital Media

• Interactive media – allow for a back-and-forth flow of information whereby users can participate in and modify the form and content of the information they receive in real time.

• - Internet is having the greatest impact on marketing

Sales Promotion Marketing activities that provide extra value

or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate sales.

Usually broken into two categories: 1) consumer-oriented sales promotion (targets

the ultimate consumer of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various point of purchase materials).

2) Trade- oriented sales promotion (targets marketing intermediaries such as wholesalers, retailers, and distributors and entails price deals, sales contest, merchandise allowances to encourage and promote a company’s product.

IMC Involves AudienceContact

Audience contactperspective whereby theyconsider all of thepotential way of reachingtheir target audience andpresenting the companyor brand in a favorablemanner.

• The IMC Planning Process

• Integrated marketing communications management – process of planning, executing, evaluating, and controlling the use of the various promotional mix elements to effectively communicate with their target audience

• Integrated marketing communications plan – provides the framework for developing, implementing, and controlling the organizations IMC program.

The IMC Process

Review of the

Marketing Plan

Promotional Program Situation Analysis

Analysis of the

Communication Process

Budget determinati

on

Developing the

Integrated Marketing

Communications Program

Monitoring, Evaluation, and Control

Message Strategies

Affective Strategies Resonance (Builds in

user experience & Consumer)

Emotional

Brand Strategies Brand User Strategies Brand Image Strategy Brand Usage message Corporate ads

Brand Strategies

Brand User Strategies The focus is on the user

such as celebrity use – Nike, watches, brand ambasadors

Educational users - Apple

Brand Image Strategy The development of a

personality

Brand Strategies

Brand User Strategies The focus is on the user

such as celebrity use – Nike, watches, brand ambasadors

Educational users - Apple

Brand Image Strategy The development of a

personality

Brand Strategies

Brand Usage Message Stresses on the

different uses for the brand

Corporate Image Strategy

Building the corporate as a brand.

Trust becomes a key issue

Awareness

Knowledge

Liking

Preferance

Conviction

Actual Purchase

Cognative

Affective

Conative

Brand Strategies

MessageStrategies

Hierachy of Effects ModelHierachy of effectsModel and

MessageStrategies

Mini Case study 1: Jassi Jaissa koi nahi

Adopted from 'Ugly Betty In 2003, to a middle class audience hooked on

to Saas bhi khabhi.... Pegged as intelligent viewing by its producers –

Sony Entertainment – this was based on the outcome of research

Already tried out by a serial called 'Khwaish' which had failed

•

Marketing Challenge

Promoting a less than good looking person-especially in the era of glamour

The target – the new women

Educated, modern – with a global outlook because of telivision

Traditional yet glamourous Most Indian women understand the

transformation to glamour Increasing tribe of multitasking women –

who also empathise with working women Can understand women who can be brides

without fulfilling conventions

Sunil Lulla, Executive VP, Sony Entertainment Television, is the channel's "pincer attack into the hearts of middle class India". "While challenging the established definition of beauty being purely external, it reflects the hopes, aspirations and values of the average Indian girl who like Jassi set out to make a mark for

themselves in contemporary, emerging India."

Marketing Objectives To drive sampling for the time slot and build

reach at the shortest possible time To increase channel share with TVRs as well

as audience preference index To make Jassi – the top rated show To create a hype about the serial To break the cieling of positioning in terms of

the serial and the channel

Some of the IMC media used

Radio, outdoor, print, flash mobs, and PR for promoting the show.

1st phase

Euro RSG was hired The initial campaign was of blurbs – basically

like a chat in teaser TV ads and hoardings The message was who is Jassi Mix included trains, airports, malls, Sms,

WOM

2nd and 3rd Phase The look and feel of the charecter

was introduced The message of realistic simplicity

was across all platforms – especially visually

Events like flash mobs, named 'Apna Bazaar' made raised the strength of the message

Launched the 'shaher shaher mein charcha' Vox populi

Came up with Jassi pal club The internet clubs and chats on orkut

were created

http://www.bhatter.com/jassi/

Results

The first phase resulted in a net hit of 2 lahks TRP 5.2 within 4 episodes – a decent figure Greater opportunity as a platform as a IMC

tool SET share in the prime time rose from 8.2%

to 32% Conversion of clubs was about 8.5%

Message Success & Failure

Continious message girl next door was a success

When the branded makeover started the TRP fell

The most enduring image is of the girl with braces and glasses

Viagra Mini Case Study

Message Strategy

Our job is to communicate to men so they don't feel so embarrassed," says Janice Lipsky, U.S. team leader, Viagra. "Viagra advertising is very targeted to men's habits."

es

Some IMC strategies

Bob Dole – US Senator and President Nominee makes a PSA about erectile dysfunctio

On line purchase Print, On line and TV ads Strong age friendly website Tagline: Love Life Again

THE SITE

The site targeted the general public and (2) VIAGRA patients.

Erectile dysfunction is still a taboo subject for many people. To put the visitor at ease, the VIAGRA.ca experience occurs in a relaxed club house and golf course setting -- an environment both comfortable and familiar to our target segment of men between the ages of 40 and 70.

THE SITE

Throughout the site, visitors are accompanied by an every day guy. He speaks to visitors and guides them through the site, answering their questions surrounding erectile dysfunction, the available treatment options, and VIAGRA itself.

The Site

The site was developed in Flash, and structured so that the video characters and content can function together or separately. Users can go through the whole site and just listen to the characters briefly sum up the content, or they can read the full site content without the characters. Even though VIAGRA.ca is created in Flash, the entire site is printable -- an essential feature for older users who often rely on printed text to retain information.

The Site

For the general public:Visitors who do not enter a DIN get access to

the club house, a comfy space where they can browse nostalgic magazines, watch the latest VIAGRA TV commercials or print the "Talk to your Doctor Icebreaker".

The Site

For patients (protected by a DIN): Visitors who log in to the private site are

greeted by two characters -- the every day guy and the

Some creatives: The doctor -- who invite visitors to join them on a round of golf. While out on the course, the doctor casually answers common questions about VIAGRA.

The site engages users and promotes interaction between physicians and patients through innovative features such as an

interactive self-screening questionnaire that delivers online results, which the consumer can print out and share with their

physician. The site also offers an independent content area designed for healthcare professionals.

Co Branding

With Playboy Alcohol advertising and a range of products Today Viagra is a generic term