INTEGRATED MARKETING COMMUNICATION

The Marketing Mix

People

Process

Physical Evidence

IMC is the development of an Integrated Comprehensive Marketing Communication (Promotion) Plan that links the marketing function with the communication function to deliver Effective Marketing Messages capable of (1) informing, (2) convincing and (3) persuading people to buy.

Selling Advertising Sales Promotion Direct Marketing Publicity Sponsorship Exhibitions Packaging POS/Merchandising Word of mouth E-marketing Corporate Identity

Product Price Place Promotion People Physical Evidence Process

IMC makes use of such Promotion Elements as (1) Advertising, (2) Sales Promotion, (3) Public Relations, (4) Publicity, (5) Direct Marketing, (6) Networking, (7) Personal Selling, and other non-conventional elements like (8) On-line communications to develop and deliver clear, consistent, and impact-full communications capable of informing, convincing, and persuading customers to buy.

Mixing the communication Mix

Unaware- Awarenes Acceptan Preferenc InsistencReassuran ness s ce e e ce Television Radio Posters National Press Business press PR Editorials Company Magazines Attention Interest Desire Convictio Action n Repeat Purchase

Mixing the communication Mix

Unaware- Awarenes Acceptan Preferenc InsistencReassuran ness s ce e e ce Direct Mail Database Marketing Literature New Media (internet) Exhibitions & Seminars Sales Promotions others Attention Interest Desire Convictio Action n Repeat Purchase

Benefits of IMC

Increase Market Penetration Develop Repeat Purchase Behavior Establish Customer Relationships Increase Rate of Consumption Encourage Product Trial Stimulate Impulse Buying Stimulate Demand Differentiate the Product Establish a Product Image Influence Sales Volume Establish, Modify, or Reinforce Attitudes Develop Sales Leads Stimulate Interest Establish Understanding Build Support & Acceptance

Barriers of IMC
Lack Of: Top Management Support- Without top management support, its hard for any plan or project to be successful. Some of the managers still think that the marketing budget gets diluted and effectiveness suffers if multiple tools are employed or even fail to see that they can reach the target audience via multiple media channels (not just the traditional ones). Accurate Metrics - As long as there will not be accurate metrics to measure marketing productivity, marketing expenditures in general will be seen by some CEOs as an expense that can be easily cut. Its even harder to measure the actual impact of a specific channel as part of the overall impact. Manpower- Small businesses do not usually have the manpower with cross-disciplinary skills to integrate their marketing communications. The implementation requires proper planning, redefining the scope of marketing communication, application of information technology and financial and strategic integration.

Lack Of:

Barriers of Organization - To implement the IMC Changes needed in the IMC process effectively, a company needs to follow certain guidelines. It should adopt a flexible organizational structure and change the mindset of the employees. It should adopt a customer centric strategy to design communication campaigns from the consumer perspective. A collaborative strategy is needed, that enables coordination and cooperation between various departments in the organization. This is sometimes easier said then done as rigid organizational structures (silos) are often infested with managers who protect both their budgets and their power base.
Theoretical and practical foundation- Although there is a lot of information about IMC in general and IMC tools in particular, there is still not a standard procedure that can be followed. What should a truly integrated marketing department look like? Should the PR department report to Marketing? Also, no more wild and wacky sales promotions unless they fit into the overall marketing communications strategy and so on. The practical aspects are still to be defined. Most of the barriers that relate to HR and organizational changes can be overcome by training the staff. There is an innate resistance to change in people but with proper change management, the anxiety and fear of change can be put aside. The lack of accurate metrics however, can not be easily

Marketing Communication Tools

Selling and Sales Management

Size and importance of the sales force Sales is conspicuous by its absence on business cards, New Business development, Account Manager, or Key Account Manager, even Relationship manager, or marketing Executive are often Preferred. Industrial Markets Industrial Markets prefer Personal Selling more than others , Consumer goods, on the other hand rarely use personal selling to the end user or consumer because of high cost per visit. Integrating with the communication mix An organizations own sales force or a distributors or agents sales force, all have to be kept abreast of any new advertising or sales promotion campaigns , product knowledge

Sales Force Types of Sales People Orders getter, excellent at winning new sales, Order takers, excellent at maintaining the existing customers. Types of Sales force - Field sales force will be supported by an in-house telesales team who do the prospecting and appointment setting, helping sales people to do what they are best at. Functions of selling Sell, only 10% of the salesman actual time is spent selling. Prospecting, Appointment setting, letter writing, travelling, training, post sales service, customer care, entertaining, intelligence gathering, forecasting, understanding customers developing customized solution team selling etc.

Sales Force
Collecting Feedback - Best sales people are expert listeners. They ask
intelligent questions and listen carefully. Competitor activity, customer needs and new opportunities and threats should be picked up by the sales force and fed back to the Sales Manager.

Consultative selling Selling to them to working with them A paradigm shift has happened to maintain a long term relation with the customers.

Sales Force
Field Marketing - Reduced cost, flexibility and direct measurability make a contract sales force or field marketing team attractive compared to, full time, in house field sales team Field Marketing Selling to independent retails outlets Merchandising and Displays Sampling/ Promotions Market Research into Shelf facings, stocking levels and positions in stores. Monitoring customer care / service.

Sales Force
Multi Level Marketing System of selling goods directly to the customers through a network of self employed salespeople. The manufacturer recruits distributors who in turn recruit(or sponsor) more distributors who in turn recruit more distributors and so on.

Managing the Sales force

Recruiting- Determining the right size and structure of the sales force is vital. Sales force attrition is a fact of life. Some salespeople move to new companies, some are promoted, others retire, or are fired. Recruitment is a continuous process. Training Training is an ongoing process, not an one-off activity. It is again a continuous process like recruitment. The sales force has to acquire and maintain three pieces of knowledge and one set of skills Selling skills. 1)Product (4Ps, Features/benefits and USPs) 2)Market(Customers and Competitors) 3)Company( History, Structure Etc)

The 7P approach to selling skills

1) Prospecting (looking for potential customer) 2) Preparation (Objective setting, Continual customer research etc) 3) Presentation (Demonstration, Discussion) 4) Possible Problems (Handling objections) 5) Please give me the order (closing the sale) 6) Pen to Paper ( recording accurately all the details) 7) Post Sales Service ( Developing the relationship)

Managing the Sales force

Motivating- Maintaining the sales forces motivation is a vital part of the sales Management. It is the sales Managers job to build a team feeling and get every one to work together sharing ideas rather than hiding them from each other. ------- Psychic income Controlling Controlling the sales force involves analyzing sales. by product By market/region By sales person

Creative selling Always room for creativity, new form of presentation, a new way of prospecting, or a new way of showing determination to win the business, etc.

Advertising

Advertising Managing Campaign

Advertising campaign is planned and managed by SOSTAC + 3Ms What is SOSTAC? S Situation Analysis( Where are we?) O Objectives (where do we want?) S strategy (How do we get there?) T Tactics (the details of strategy) A Action (Implementation putting plans to work) C Control (Measurement, Monitoring, Reviewing and Modifying)

What is 3M? M Men/Women ( the human resource) M Money (Budget) M Minutes (time)

Advertising Managing Campaign

Advertising campaign is planning process incorporates an analysis of the current situation( research) and a clear definition of the overall communication s objectives as well as specific objectives. The strategy summarizes: What to say (message) How to say it (execution tone or creative strategy) Who to say it to (target audience) Where to say it (media choice or media strategy) When to say it (timing) How much will it cost (budget)

Advertising The Situation

What are the current sales trend, market share trend and overall market trend? Regions or segment that buy more than others How big are the competitions sales (Per region/per distribution channel) Profile of the customer and non customer who might be converted Who is the target market now and in future? Who are the Heavy users? When do they buy? Where do they buy? How is the brand positioned in the minds of the target markets? Why do people use/not use a brand? Features and benefits of the product

Advertising The Situation Product Interrogation can sometimes

reveal hidden benefits which advertising can subsequently highlight USP Product or Service interrogation explores and examines every angle, including product characteristics, user characteristics, ways of using, benefits of using, disadvantage of nonusage, competitors comparisons, product heritage, customer cases, newsworthiness and more.

Trend Identification
New values, trends, attitudes or lifestyles/business styles that may affect the organizations product or service

Review Of Past Advertisement

Analysis of competitors advertising campaigns triggers ideas and provides insight into Competitors strategies

Advertising Objectives Objectives should be SMART S Specific M Measurable A Actionable R Realistic T Time specific Communication Objectives how to
affect the target audience, generate awareness, attitudes, interest or trial.

Marketing Objectives refers to

sales, market share, distribution, penetration, launching new products and so on

Advertising Objectives What is DAGMAR? Defining Advertising goals for measuring Advertising results

What is AIDA? Awareness Interest Desire Action

Advertising Strategy

Includes positioning, objectives, target audience, key benefits, secondary benefits and media to be used. Should offer strategic direction to client and agency team.

Advertising Concept Client Approval

Agencies support their concepts with a message rationale which basically explains why the concept is brilliant and guaranteed to achieve outstanding results!

Production requires time

and careful attention to detail. Involves overseas locations, casting, contract, rehearsals, special effects, weeks or months of sophisticated computer graphics, studio shoots, editing and more.

Clearance The finished advertisements should be checked

before publication or broadcasting by the relevant regulatory authority.

Testing Test is conduct with the finished advertisement in a

region on with the organization before it is rolled out nationally or internationally. Then the actual Roll Out happens.

Tracking The advertisement campaign can and should be

monitored or tracked to see how it is working.

Sales Promotion

Sales Promotion Introduction

What is Sales Promotion?

Sales Promotion - Introduction

Sales Promotion Is bigger than advertising. The reason

for growth of Sales Promotion are: a)The movement towards relationship marketing(rewarding loyal customers, e.g.. Club membership) b)Growth of direct mail marketing(and incentives) c)The emergence of promotion literate customers who expect promotions with certain types of products. d)During recessions price conscious customers search for value-for-money promotions e)Powerful retailers favor suppliers whose products sell quickly( because of heavy advertisement or exciting promotions or both) f)High television advertising costs force marketing managers to look for more cost effective methods of promotions Sales

Promotion
Sales Promotions could have negative or positive impact

Sales Promotion - Introduction Three main categories under which a sales promotion is done. 1)Customer Promotions Premiums, gifts, prizes and competitions. 2)Trade Promotions Special terms, point-of-sale materials, free pens, diaries, competitions and prizes. 3)Sales force Promotions Incentives, motivation schemes Sales Promotion that go wrong happens for two reasons: a) they are a function of a bad brand strategy with no link to the brand value and long term branding. b) They have had not attention paid to the detail, so problems emerge such as fulfillment.

Sales Promotion - Objectives

Objectives
1)Increase sales 2)Develop new sales lead 3)Satisfy retailers with complete package 4)Move excess stocks 5)Block a competitor 6)Match a competitor 7)Build a database 8)Generate Publicity

Sales Promotion Strategy or Tactics Sales Promotion that go wrong happens for two reasons: a) they are a function of a bad brand strategy with no link to the brand value and long term branding. b) They have had not attention paid to the detail, so problems emerge such as fulfillment.

Sales Promotion Strategy or Tactics

The Short Term Tactical Approach Immediate

action, Contrasts with the long term image and brand building capability of advertising. Reason for Short term Tactical approach Management pressure to boost sales. Shortening of product life cycle. Increased Competition and Increased new product introduction. Business Problems solved by sales promotion. Additional Service sales pressures Ad-hoc add on

Sales Promotion Strategy or Tactics

The Strategic Approach All promotions should be

part of a bigger and long-term strategy, building and reinforcing brand image, strengthening user loyalty and inviting new users to join the club. Reason for Strategic approach Enables one offer to build on the previous one continuity of communication. Communicates image and functional values, so promotions work harder. Produce considerable savings in TIME and MONEY. Enables offers to be linked with advertising and PR Facilitates better approach to Joint promotions

Sales Promotion Strategy or Tactics

Developing Strategic Approach

1)Indentify Customers need 2)Identify long term strategic marketing and communication objectives 3)Create guidelines for products and services showing the style of sales promotion appropriate to brands long term health. 4)Determining the total marketing communication budget available for sales promotion. 5)Support and commitment of senior management for sufficient management expertise and funds. 6)Evaluation of long term performance against long term objectives. 7)Develop a promotions file compiling ideas and costs through out the year. 8)Plan and forecast for sales promotions results.

Sales Promotion Promotion wars Competitors compete with each other using different elements of the marketing mix, marketing communication mix, sales promotion mix.

Sales Promotion Creative Promotions There is always a room for creative innovation. The only limitation to potential sales promotion creations is ones imagination. If it is stunningly successful, it is likely that the completion will follow unless the innovative promotion relates uniquely to the brand in a creative way.

Sales Promotion Joint Promotions

What is Joint Promotion?

Managing Sales Promotion Choosing and Agency Internal or External Ad agency

Develop a pool, list possible agencies, invite them to present credentials, check references, shortlist, brief them, pitch, evaluation , selection, written contract.

Planning the campaign SOSTAC and 3M method can be used Research Research of previous promotions(including
competitors) followed by target market.

Attention to details The choice of promotional tool can be

directly affected by the availability of resources(3M).

Control and Measurement Control, Measurement and

monitoring form the loop in the management system. How can the success or otherwise of the promotion be measured?

Direct Marketing

Direct Marketing

What is direct Marketing?

Directing Marketing brings the market directly into the home or office of an individual buyer instead of the buyer having to go to the market. Armchair Shopping
Direct Marketing in UK defines Direct Marketing as: The distribution of information, products or services through any advertising medium that invites the individual to respond directly to the advertiser.

Direct Marketing
Direct Marketing should not be used solely as a tactic more Strategic basis by integrating it with other marketing communication tools.

Direct Marketing includes

1)Direct Mail 2)Telemarketing 3)Door-to-door selling 4)Direct response advertising Phone now/fill in the coupon 5)Computerized home shopping 6)Home shopping networks 7)Inserts, Leaflet drops, house-to-house distribution

Database Marketing

What is Database Marketing?

Database Marketing is more than just names of customers, it includes two types of data- Historical data(transactional data or back data) includes names
address recency and frequency of purchases, responses to offers and value of purchases. Predictive data identifies which

groups or subgroups are more likely to respond to a specific offer(Customer attributes lifestyle, house type, past behavior) Database Marketing also includes Database building, database warehousing, data-mining, data-manipulation, data maintenance
-

Direct Marketing - Advantages

Direct Marketing Advantages

1)Targeting 2)Cost effective 3)Control and accountability 4)Immediate and Flexible 5)Opportunity to test 6)International 7)Opportunity to build database 8)Tailored Messages 9)Long term customers 10)Multifunctional

Direct Marketing - Disadvantages

Direct Marketing Disadvantages

1)Upsetting Middlemen 2)Intrusion or invasion of Privacy 3)Abusive messages from customers 4)Initial cost is high 5)High investment on database building 6)Damage companys corporate image

Direct Marketing - Growth

Direct Marketing growth

1)Market Fragmentation 2)Tailor made technology 3)The list explosion0 4)Sophisticated software 5)Hybrid Marketing systems 6)Constant search for cost effectiveness

Direct Mail Campaign - Planning Direct Mail Campaigns

1)Timing 2)List selection 3)Creative Mailings 4)Budgeting 5)Operational Implications 6)Testing Who are you trying to influence? What are you selling? Why should your prospects buy? Where will you find your prospect/ When should you speak to them?

Telemarketing

What is Telemarketing?
Two way communication. Can collect and give information and get fast feedback.

Telemarketing - Growth Telemarketing - Growth

1)Managements constant search for cost-effective methods 2)New ways of competing 3)Market fragmentation 4)The emergence of niches 5)Falling costs 6)The increased capacity of computer technology

Telemarketing Campaign
Launch the campaign for telemarketing

Public Relations

Public Relations

What is Public Relations?

Public Relations: The development of and maintenance of good relationships with different publics Public Relations: practice is the art and science of analyzing trends, predicting their consequences, counseling organization leaders, and implementing planned programmes of action that will serve both the organizations and the public interest. Public Relations: Includes employees, investors, suppliers, customers, distributors, legislators/regulators/governments, pressure groups, the community, the media, and even competition.

Public Relations

Product PR(product/brand publicity) Corporate PR(Corporate image enhancement)

Public Relations - MIX

Public Relation Mix: shows how the visibility or publicity-generating activities such as news releases, news conferences, publicity stunts, conferences, events, exhibitions, sponsorship, and sales promotion can all integrate

Media relation and publicity Media Relation and publicity: Commercials, news items or features that appear in a local or national newspapers, trade journals, radio programmes, and televisions. Although they
appear to be written by an editor or journalist, many of the news items and features are written by skilled PR professionals. Like Advertising , editorial publicity can achieve many communication goals such as increasing awareness or repositioning.

The important features that differentiate editorial coverage to that of advertising;

1)No Media cost. 2)Message has higher credibility. 3)No control over the message. 4)Reducing the lack of control.

Media relation and publicity

Media Relation and publicity: Controlled integration of publicity. Measuring Media relations.

Sponsorship What should be sponsored? How does one choose what to sponsor and what to reject? How much should be spent? When does it become less value for money? How is it measured? What exactly does sponsorship mean?

Sponsorship

What is Sponsorship?
Sponsorship is more than patronage, altruism or benefaction. It can indeed help others while simultaneously achieving specifically defined communication objectives. It is also seen as worthy activity supported with cash or consideration in return for satisfying specific marketing and corporate objectives

Sponsorship

Range and type of sponsorship

The range of sponsorship opportunities is limited only by ones imagination. Sports,

arts, education, community and broadcast. Expedition, voyage into space and so on

Sponsorship Advantages Cost effective(advertising) in terms of reaching a particular audience. Engagement of audience in a relaxed atmosphere. Sponsorship reaches those places where conventional advertising cannot reach. Effects of sponsorship are measurable.

Sponsorship Disadvantages Sponsorship undermines artistic integrity. In case of health and education issues involved are too important to be left to the whim of a Corporation. Considered as excessive indulgence by employees specially if there are redundancies occurring at the same time.

Running a Sponsorship Programme

Analyzing and summarizing. Defining sponsorship objectives. Clarifying strategy. Developing the tactical details. Defining target audiences. Considering the 3Ms. Monitor and Measure.

Sponsorship - Objectives 1) Increased Awareness 2) Build an Image 3) Improve or maintain relations 4) Increase sales and open closed markets 5) Attract distributors/agents 6) Create promotional materials 7) Circumventing advertising bans 8) Ideas.

Exhibitions

Exhibitions

What is Exhibitions?

Imagine bringing a whole market together under one roof, for a few days. An exciting idea. An explosive concept. Buyers, sellers, competitors all under one roof.

Exhibitions

1) Prioritize Exhibition objectives 2) Develop an Exhibition Strategy 3) Select the right shows 4) Agree a design strategy 5) Determine pre-show promotional tactics 6) Train Exhibition staff 7) Finalize daily action(operational) plan 8) Ensure follow up 9) Evaluate post show

Exhibitions Selection of shows

Selection Criteria 1) Type of Exhibition 2) Target audience 3) Timings 4) Facilities 5) Costs 6) Previous Success 7) Endorsements

Exhibitions- Value Analysis

1) Costs 2) Cost Per Enquiry 3) Cost per order 4) Percentage of sales 5) ROI 6) Press Coverage 7) Experimental non attendance

Exhibitions Poor Performance

Twelve reasons for poor performance

7) Ignoring competition-steal your prospective visitors 8) Poor recognition of company by buyers 9) Poor Corporate identity 10) Inadequate arrangements made for the staff working at the stand 11) Breakdown in Organization and control 12) Inadequate control of costs and budgets.

1) Inadequate statements of purpose and objective 2) Poor quality visitor 3) Bad location of stand 4) Ineffective quality and design of stand 5) Bad Management of stand by the personnel 6) Lack of follow up of leads and enquiries

Packaging

Packaging
Importance of Packaging
Acts a silent sales person. Highlighting USPS of a product. Information on usage of a product. Break through on misery of choice on similar competitive products. Competitive advantage. Developing stronger shelf presence. Positioning and creating or strengthening a brand image in the minds of the customer. Extraordinarily effective advertising medium. Free medium and good packaging design saves manufacturing cost.

Packaging
Basic functions of Packaging

Three basic functions of packaging are:

Protect (and Contain) Offer convenience communicate

Packaging
Communication functions of Packaging
Grab the attention of passive shoppers Persuade and convince the viewers. Build brand personality and image Build loyalty with a pack that; a)Looks nice on table b)Is easy to find anywhere c)Distinctive and recognizable d)Easier to use than competitive products Usage information. Information on mandatory requirements.

Packaging
The Designers tools

Six tools a designer can use; 1)Shape 2)Size 3)Color 4)Graphics 5)Materials 6)Smell

Packaging Design Process

Briefing Research Concept development Graphics Research Concept Selection Shapes Research Concept Selection

Graphic and Shape design Agrees optimum Design

Packaging Design Process

Graphic and Shape design Agrees optimum Design Mock up Model Model drawings Detailed component drawings Toolmakers Drawings Bottles

Layout

Finished artwork Typesetters brief Labels

Pack with Labels

Merchandising

Merchandising - Tools
1) Leaflets and dispensers 2) Stickers 3) Posters 4) Show cards and cardboard cut outs 5) Branded racks or display units 6) Dump bins 7) Three dimensional h) Injection moulded characters i) Holograms j) Free standing floor display

8) Electronic gadgets a) Spotlighting system b) Video walls c) Plasma screen d) Illuminated display system e) Interactive POS system 9) Shelf space 10) Shelf positioning 11) In store sampling 12) Window displays 13) Digital imaging and web based merchandising analysis tools

Merchandising

Distributors empathy and Retail strategies

Distributors empathy helps a supplier to make his product or services fit in with the retailers plan. ----------------------------------------Every retailer has its own marketing mix- This fits in with the retailing strategy to exploit it source competitive advantage.

Merchandising - Tools

The more common low tech merchandising tools are: 1) Store image (external and internal) 2) Store layout 3) Merchandise range 4) Color blocking 5) Point-of-sales display/retail sales promotions 6) Miscellaneous

Word of Mouth

Word of Mouth

People talk about Companies and Organizations, their products, their services, their staff and their experience as customers. WOM is by far the most potent in both Industrial and Consumer markets

Word of Mouth

Why do people bother to talk about products and services in the first place? Do some people talk more than others? Are some people listened to more than others? Who are the opinion leaders and opinion formers?

Corporate Identity

Corporate Identity

What is Corporate Identity?

Corporate Identity is how a corporation, company or organization expresses itself visually. It is the prime interface between an organization and its key audiences. The first contact people have with an organization will bring them in contact with its Corporate Identity.

Corporate Identity

More than a Logo

Although when many people use the term Corporate Identity, they are referring to a logo, in reality corporate identity is much more broader. Logo is a tip of Iceberg

Corporate Identity

Managing Corporate Identity

There are number of stages in management of corporate identity 1) Gain Board-level support 2) Assess current situation and determine ideal image. 3) Brief and select designer 4) Develop Design concepts 5) Select, research and test concepts. 6) Explain internally. 7) Implement launch and maintain. 8) Review and update.

Corporate Identity

What is Corporate Image?

Corporate image is the corporate brand. Every company has an image or brand.
Corporate image is perception. Corporate identity is the reality of the tangible points of public contact. Corporate Identity Buildings, Vehicles, Uniforms so on Corporate Image Sum of Peoples perceptions of an organization, Images sight, sound, smell touch, taste, experience through

product usage, customer service, corporate communications..