Imc module-1 (3rd sem)

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Transcript of Imc module-1 (3rd sem)

R.H.Patel Institute of Management-Sub: - Integrated Marketing Communication (Module-1to4)

Prepared by: Deep Shah (Asst. Prof)

SUBJECT: INTEGRATED MARKETING COMMUNICATIONSEM: 3MARKETING SPECIALIZATIONPREPARED BY: DEEP SHAH

MODULE-1Introduction to IMC and its role in Marketing ProcessOne Voice Communication v/s IMCIntroduction to IMC toolsAdvertisingSales PromotionPublicityPublic RelationEvent sponsorshipThe role of advertising agencies and other marketing organization providing marketing services and perspectives on consumer behavior

Introduction to IMC and its role in marketing process.If we recall the definition of marketing, what we learn in our previous semester, we found that one popular conception of marketing is that it primarily involves sales. Other perspective view marketing as consisting of advertising or retailing activities. American Marketing Association (AMA) defines marketing as planning and executing the conception of ideas, goods, and services to create exchange, that satisfy individual and organizational objective and without reaching to the customers these objectives will not satisfy. This definition of marketing is focused on exchange as a central concept in marketing activities to create and sustain relationships with customers.Marketing focuses on Relationship and ValueThe focus of market-driven companies is on developing and sustaining relationship with their customers. Successful companies recognize that creating, communicating, and delivering value to their customers is extremely important. The focus on customer relationship and value has led many companies to emphasize relationship marketing, which involves creating, maintaining, and enhancing long-term relationships with individual customers as well as other stake-holders for mutual benefits. The movement toward relationship marketing is due to several factors. First, companies recognize that customers have become much more demanding. Consumer desire superior customer value, which includes quality products and services that are competitively priced, convenient to purchase, derived on time, and supported by excellent customer service.They also want personalized products and services that are tailored to their specific needs and wants.Advances in information and technology, along with flexible manufacturing systems, and new marketing processes, have led to Mass customization, whereby a company can make a product or deliver a service in response to a particular customers needs in a cost-effective way.Integrated Marketing CommunicationFor many years, the promotional function in most companies was dominated by mass-media advertising. Companies relied primarily on their advertising agencies for guidance in nearly all areas of marketing communication. Most marketers did use additional promotional and marketing communication tools, but sales promotion and direct-marketing agencies as well as package design firms were generally viewed as auxiliary services and often used on a per-project basis. Public relations agencies were used to manage the organizational publicity, image, and affairs with relevant publics on an ongoing basis but were not viewed as integral participants in the marketing communication process. Many marketers built strong barriers around the various marketing and promotional functions and planned and managed them as separate practices, with different budgets, different views of the market, and different goals and objectives. These companies failed to recognize that the wide range of marketing and promotional tools must be coordinated to communicate effectively and present a consistent image to target markets. THE EVOLUTION OF IMCDuring the year 1980s, many companies began taking a broader prospective of marketing communication and seeing the need for a more strategic integration of their promotional tools. The decade was characterized by the rapid development of areas such as,sales promotiondirect marketingPublic relations, Which began challenging advertisings role as the dominant form of marketing communication? These firms began toward the process of integrated marketing communication (IMC), which involves coordinating the various promotional elements and other marketing activities that communicate with a firms customers.DEFINITION OF IMCA task force from the American Association of Advertising Agencies (the 4As) developed one of the first definitions of integrated marketing communications,a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic role of a variety of communication disciplines- for example, general advertising, direct response, sales promotion and public relations- and combines these disciplines to provide clarity, consistency, and maximum communication impact.

The 4As definition focuses on the process of using all forms of promotion to achieve maximum communication impact. The process of IMC calls for a big-picture approach to planning marketing and promotion programs and coordinating various marketing functions. It requires that firms develop a total marketing communications strategy that recognizes how all of a firms marketing activities, not just promotion, communicate with its customers. Here, we can also include Integration as Synergy.ROLE OF IMC IN MARKETING PROCESSIMC plays a role in allB2B InteractionsMarketing Channel CommunicationCustomer-focused CommunicationInternally directed CommunicationBut we can say that that following are the proper one as a role of Integrated Marketing Communication in MarketingTo understand the marketing process and the role of advertising and promotion in an organization's integrated marketing program. To know the various decision areas under each element of the marketing mix and how they influence and interact with advertising and promotional strategy. To understand the concept of target marketing in an integrated marketing communications program. To recognize the role of market segmentation and its use in an integrated marketing communications program. To understand the use of positioning and repositioning strategies.

As with all marketing activities, the goal of IMC is to build brands. Brands that are well known and liked are more likely to be purchased increase profit margins. One of the major reasons for the growing importance of integrated marketing communication over the past decade is that it plays a major role in the process of developing and sustaining band identity and equity. As branding expert Kevin Keller notes Building and properly managing brand equity has more and more products and services competing for consideration by customers who have less and less time to make choices. Well-known brands have major competitive advantage in todays market place. Building and maintaining brand identity and equity require the creation of well-known brands that have favorable, strong, and unique associations in the mind of the consumers.

ONE VOICE COMMUNICATION

Ideas Involved In IMC ApproachDespite the increasing use of the term IMC approach by both practitioners and academics in recent years, there is little agreement on what the term actually means. According to one recent review, at least two related ideas are involved:The different elements of the communications mix have to be used in a way that the strengths of one are used to offset the weakness of another.One-voice Marketing Communications: As consumers increasingly being to be addressed by the same marketer in a variety of different ways (i.e. through 5 tools of promotion) - there is a need to ensure a consistency of positioning, message, and tone across these different media. These different communications must reach consumers with one voice.Integrated Communications: A marketer's consumer communications need to not only raise brand awareness, or create or change brand preference and image, or to get sales trial or repurchase, but to do all of the above at the same time. Increasing image without getting a sales result is not good enough and getting short-term sales (e.g. via sales promotion) at the expense of a brand's long-term image is also courting disaster. Thus, all marketing communications should attempt to simultaneously achieve targeted communication goals (e.g. raising attitudes or building image) and lead to some behavioral action (e.g. trial or repurchase).Instead of isolating these different tools of marketing communication and making individual strategies for each of them, IMC involves communicating a single message to target customers by looking at these marketing communication tools as inter-related parts of an integrated plan. A single strategy is designed for all tools of marketing communication as it is believed to create greater impact on target audience and generate synergy. IMC is an ongoing process intended to build long-lasting relationships with customers. It is a cost-effective means of communication because it avoids any duplication and hence an increasing number of companies are adopting it. As consumers increasingly being to be addressed by the same marketer in a variety of different ways, (i.e. through 5 tools of promotion) - there is a need to ensure a consistency of positioning, message, and tone across these different media. These different communications must reach consumers with one voice. Furthermore till the time in marketing we learn the concept of marketing mix- calls 4ps of marketing, now in communication we have to gone through the concept of 4Cs

4P's vs. 4C'sNotPRODUCT, butCONSUMER: Understand what the consumer wants and needs. Times have changed and you can no longer sell whatever you can make. The product characteristics must now match what someone specifically wants to buy. And part of what the consumer is buying is the personal "buying experience."NotPRICE, butCOST: Understand the consumer's cost to satisfy the w