MARKETING MANAGEMENT

DESIGNING AND MANAGING INTEGRATED MARKETING

COMMUNICATIONS

PRESENTED BY: KUMUD GOEL- 28

MBA-II (B)2015-2017

BIBLIOGRAPHY• http://imc.wvu.edu/about/what_is_imc• http://www.tandfonline.com/doi/abs/10.1080/13527260902

757530• https://www.linkedin.com/pulse/case-study-coca-cola-integra

ted-marketing-gregory-stringer• http://www.davedolak.com/promix.htm• http://www.citeman.com/3093-factors-in-setting-the-marketi

ng- communications-mix.html• http://www.pearsonhighered.com/kotler/• http://www.ehow.com/how_8457194_developing-effective-

marketing-communication-mix.html• http://www.icmrindia.org/courseware/Marketing%20Manage

ment/Communication-Marketing.htm• Book- Marketing Management by Philip Kotler, Kevin Lane

Keller, Abraham Koshy & Mithileshwar Jha, PEARSON (14th Edition) (Page. 427- 445)

CONTENTS• The role of marketing communications• Developing effective communications• Deciding on the marketing communications mix• Managing the integrated marketing

communication’s process

THE ROLE OF MARKETING

COMMUNICATIONS

Marketing CommunicationsThese are the means by which firms

attempt to inform, persuade, and remind consumers- directly or indirectly- about the products and brands they sell.

They represent the voice of the company and its brands. They are a means by which the firm can establish a dialogue and build relationships with consumers.

Marketing communications allow companies to link their brands to other people, places, events, brands, experiences, feelings and things.

The goal is to stimulate a dialogue that will lead to a succession of purchases.

Every brand contact delivers an impression that can strengthen or weaken a customer’s view of a company.

They contribute to brand equity by creating brand awareness and brand image in consumer’s memories.

They boost sales, strengthen brand loyalty, and can act as a catalyst for business growth.

The Changing Marketing Communications Environment

Earlier, companies had limited options to communicate with the target audiences.

The reach of the print media was confined due to low literacy levels. They used wall paintings, leaflets, and local promotional activities.

However, the explosive growth of mass media has emerged as the most preferred mass entertainment media.

Rising levels of literacy, and consequently magazine and newspaper readership and increasing influence of social media have transformed media scenario.

From the companies perspective, media planning and budgeting and the measurement of communication impact have become complex.

From the consumer’s perspective, the increased number of options means that they can choose the medium through which they want to receive communications.

Marketing communications in almost every medium and form have been on the rise, and some consumers feel they are increasingly invasive.

MARKETING MIX COMMUNICATION

The Marketing Communications Mix is the specific mix of advertising, personal selling, sales promotion, public relations, and direct marketing a company uses to pursue its advertising and marketing objectives.

The marketing communication mix is the heart of your marketing strategy around which everything else in sales and marketing is predicated.

If business consists of creating value and creating customers, Marketing Communication (MARCOM) covers exactly how you are going to create customer by taking your value message to the market.

Advertising • Any paid form of non-

personal presentation and promotion of ideas, goods, or services by an identified sponsor.

• Eg: print and broadcast ads, posters, billboards, leaflets etc.

Sales promotion• Short-term incentives to

encourage the purchase or sale of a product or service.

• Eg: sampling, coupons, exhibits, demonstrations, fair and trade shows etc.

Events and experiences• Company- sponsored

activities and programs designed to create daily or special brand- related interactions with consumers.

• Eg: arts, causes, sports, etc.Public relations and

publicity• Building good

relationships with the company’s various publics by obtaining favorable publicity, building up a good "corporate image“.

• Eg: seminars, speeches, etc.

Direct marketing• Direct communications

with carefully targeted individual consumers to obtain an immediate response.

• Eg: catalogs, mailings, blogs, etc.

Interactive marketing• Online activities and

programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image etc.

• Eg: fax, e-mail, web sites, etc.

Word of mouth marketing• People- to- people oral,

written, or electronic communications that relate to the merits or experiences of purchasing or during products or services.

• Eg:chatrooms,person-to-person

Personal selling• Personal presentation by

the firm’s sales force for the purpose of making sales and building customer relationships.

• Eg: samples, sales meetings, presentations, fairs and trades

Components of Communication

THE COMMUNICATION PROCESS MODELS

Marketers should understand the fundamental elements of effective communications. Two models are useful, these are:

A macro model of the

communication process

A micro model of the

communication process

Macromodel of the communications process

Micromodel of consumer responses

DEVELOPING EFFECTIVE COMMUNICATIONS

Identify target

audienceDetermine objectives

Design communica

tionsSelect

channels

Establish budgets

Decide on media mix

Measure results

Manage integrated marketing

communications

Steps in developing effective communications

IDENTIFY TARGET AUDIENCE

DETERMINE OBJECTIVESCategory Needs• Establishing a product or service category as necessary to

remove or satisfy a perceived discrepancy between current and desired motivational state.

Brand Awareness• Fostering the consumer’s ability to recognize and recall the

brand between the category, in sufficient detail to make a purchase.

Brand Attitude• Helping consumers evaluate the brand’s perceived ability to

meet a currently relevant need.

Brand Purchase Intention• Moving consumers to decide to purchase the brand or take

purchase related actions.

DESIGN COMMUNICATIONS

Message Strategy In determining message strategy, management searches for appeals, themes or ideas that will tie in to the brand positioning.

Creative StrategyThese are the ways marketers translate their message into communication.-Informational appeal elaborates on product attributes and product benefits.-Transformational appeal elaborates on a product related benefit.

Message SourceMessage delivered by attractive or popular sources can achieve higher attention and recall.

SELECT THE COMMUNICATION CHANNEL

PERSONAL COMMUNICATION

• Personal communication channels let two or more persons communicate face to face, or person to audience through a phone, surface mail, or email. They may be advocate, expert or social channels

NON PERSONAL/ MASS COMMUNICATION

• Mass communication are directed to more than one person and include advertising sale promotion, events and experiences and public relations.

ESTABLISH THE TOTAL MARKETING COMMUNICATIONS BUDGET

Affordable Method• Set budget at what companies

think they can afford.

Percentage of Sales Method

• Set budget at a specified percentage of current or anticipated sales or of the sales price.

• More result oriented, variable cost

• No logical basis for choosing the percentage.

Competitive Parity Method

• Set the budget to achieve ‘share-of-voice’ parity with competitors.

• Competitive wisdom& preventing promotion wars.

Objective and Task Method

• Develop budgets by defining specific objectives and estimating the costs of performing them. Establish market share goal.

• Determine %age of market that should be reached by advertising and aware prospects that should be persuaded.

DECIDING ON THE MARKETING

COMMUNICATIONS MIX

Characteristics of the marketing communications mix

Advertising

• Long-term| trigger sales| reach geographically dispersed customers. -pervasiveness (several repetitions)-Amplified expressiveness-Control

Sales Promotion

• stronger & quick buyer response| short- run effects-Ability to be attention getting-Incentive-Invitation

Public Relation & Publicity

• Coordinated with other elements of mix-high credibility-Ability to reach hard-to-find buyers-Dramatization

Contd..

Events and Experiences• Costly yet having many advantages

-Relevant-Involving-Implicit

Direct and Interactive Marketing• Forms: Direct mail, telemarketing, internet marketing

- Customized-Up-to-date-Interactive

Word-of-Mouth Marketing• Forms both online and offline

-Influential-Personal-Timely

Personal Selling• Most effective in later stages, good for building preferences

-Personal interactions-Cultivation-Response

Factors in setting the Marketing Communications Mix

Type of product market

• Consumer markets spend more on sales promotion and advertising.

• Business markets spend more on personal selling.

• In general, personal selling is used more with complex, expensive, and risky goods and in markets with fewer and larger sellers (hence, business markets).

Business Markets Consumer Markets

Buyer- Readiness

Stage

• Cost- effectiveness of communication tools vary at different stages of buyer readiness.• Advertising and publicity play the most important role in the awareness-building stage.• Customer comprehension is primarily affected by advertising and personal selling.• Closing and reordering is affected by personal selling and sales promotion.• There are 5 stages i) awareness ii) comprehension iii) conviction iv) order v) reorder

Source: Fig.16.4, pg.443, marketing management, Philip Kotler (Edition 14), PEARSON

Product Life Cycle

• Cost effectiveness of communication tools vary as with PLC stages.• Introduction- advertising, events and experiences, and publicity• Growth- word of mouth and interactive marketing• Maturity- advertising, events and experiences, and personal selling• Decline- sales promotion

Measuring Communication ResultsFeedback measurement• After implementing the plan• Impact on target audience is to be measured• Surveyed to ask

Whether they have recalled? How many times they saw it? What points do they recall?

MANAGING THE INTEGRATED MARKETING

COMMUNICATIONS PROCESS

Integrated Marketing Communications (IMC)

IMC is the application of consistent brand messaging across both traditional and non-traditional marketing channels and using different promotional methods to reinforce each other.

The American Marketing Association defines Integrated Marketing Communications (IMC) as “a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.”

The IMC planning process has been compared to composing a musical score. In a piece of music, while every instrument has a specific task, the goal is to have them come together in a way that produces beautiful music. It’s the same in IMC, where advertising might be your violin, social media your piano, public relations your trumpet and so on.

Why Integrated Marketing Communications?Five major shifts in the worlds of advertising, marketing and media have caused an increased interest in (and need for) IMC. These include:

These shifts are forcing organizations to look at the whole marketing picture, re-aligning their communications and seeing things the way the consumer sees them – as a constant flow of information from indistinguishable sources. Those who practice IMC are avoiding duplicate messages, capitalizing on the synergy among promotional tools, creating more effective marketing programs and maximizing ROI.

A Shift From…• Traditional Advertising• Mass Media• Low Agency Accountability• Traditional Compensation • Limited Internet Access

To…• Digital/Interactive Media• Specialized Media• High Agency Accountability• Performance-Based Compensation• Widespread Internet Availability

Coordinating Media Personal and Non-personal channels to be coordinated through

multiple-vehicle, multiple-stage campaigns to achieve maximum impact and increase message reach and impact.

Implementing IMC IMC concept has been relatively slow to take hold

Large companies have several specialist organizations They don’t know much about other channels/tools Global companies use different agencies in different

countries Still a few agencies have improved by integrating with different

specialist companies – by acquiring them Offering one-window solutions

-a case study of IMC

The integrated components used by Coca Cola employed a mass media methodology which included television advertising, print media and banner ads.

The approach utilized a marketing mix of advertising, direct marketing, as well as Web based interactive and social media marketing and sales promotion.

Coca Cola advertising has historically been among the most prolific in marketing history.

The logo and bottle designs are immediately recognizable throughout the world, and are integral to the brand’s image and recognition in the marketplace (Wikipedia, 2015).

Coca Cola has repeatedly been ranked as the number one soft drink in the world as a direct result of their aggressive advertising campaigns.

Direct marketing efforts are initiated for exclusivity i.e., restaurants and movie theatres only offering Coke products, eliminating any direct competition.

They sponsor sporting events via use of the company, e.g. baseball fields.

Mobile marketing endeavors send out text messages in an attempt to personalize promotions.

Viral marketing exertions rely heavily on word-of-mouth communication from brand loyalists.

Web based interactive marketing is focused on design and functionality, relying on banners, video and public relations.

Sales promotion for Coca Cola is aimed at two strategies, retail and food service.

Retail efforts are directed toward company partnerships, direct store delivery and point-of-sale (POS) techniques.Direct store delivery is a crucial link in the value

chain, and offers mobile advertising with bright red delivery trucks emblazoned with the brand logo.

POS displays include brand specific coolers for in-store sales along with vending machines which carry Coke products.

Food service activities emphasize Coke products in food pairings, menu optimization, and specialty beverages.

Comparative Importance of the ComponentsCoca Cola’s IMC components reveals a marketing

communications mix which is iconic. The brand image is immediately recognizable, right down to the bright red and white lettering of the names Coke and Coca Cola.

Multi-lingual use in advertisements.The resultant international presence of Coca Cola

is a direct outgrowth of the marriage of the advertising, direct marketing, as well as Web based interactive and social media marketing and sales promotion efforts that have been included over the years in their IMC endeavors.

Overall Success of the IMC ApproachIn terms of successful outcome, Coca Cola’s IMC

approach has set a standard that offers a point of reference of desired triumph that is enviable across the industrial landscape

Record-setting sales and revenues, brand visibility and recognition and positioning on the global market are indicative of the accomplishment achieved by the company.

Coca Cola products are consumed world-wide as a direct result of retail and in-store marketing efforts which are meticulously detailed

The elements which are expended in regards to the integrated approach, the comparative importance of the components, component efficiency, and the overall success of the IMC approach have combined to create a sensation that customers have warmly embraced.

BIBLIOGRAPHY• http://imc.wvu.edu/about/what_is_imc• http://www.tandfonline.com/doi/abs/10.1080/13527260902

757530• https://www.linkedin.com/pulse/case-study-coca-cola-integra

ted-marketing-gregory-stringer• http://www.davedolak.com/promix.htm• http://www.citeman.com/3093-factors-in-setting-the-marketi

ng- communications-mix.html• http://www.pearsonhighered.com/kotler/• http://www.ehow.com/how_8457194_developing-effective-

marketing-communication-mix.html• http://www.icmrindia.org/courseware/Marketing%20Manage

ment/Communication-Marketing.htm• Book- Marketing Management by Philip Kotler, Kevin Lane

Keller, Abraham Koshy & Mithileshwar Jha, PEARSON (14th Edition) (Page. 427- 445)