Transcript BA230 week1-2 Concepts

BA 230 Marketing Communications
What is Marketing?
• Marketing the sum of all the activities
involved in the planning, pricing,
promoting, distributing and selling of
goods and services to satisfy consumer’s
needs and wants.
• Marketing is the process that connects
suppliers with end users
What is 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.
Our task is to focus
Direct
Marketing
Product
Advertising
Word of
Mouth
Place
Marketing Mix
Public
Relations
Social
Media
Price
Events
Promotion
Guerilla
Sales
Promotion
Personal
Selling
Mobile
Two Types of Marketing Efforts
B2B
B2C
Communication Process
How Brand Communication Works
Corporate Communications
Marketing Communications
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Focus on multiple stakeholders
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Focus on customers
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Multiple channels
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Defined set of channels
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Variety of communication
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Controlled communication types
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Positions an entire organization
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Positions a product or service
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Less room for creativity
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More room for creativity
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Needs to be consistent with
corporate identity and corporate
brand attributes
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Needs to be consistent with product
and brand attributes
What is Marketing Communications?
• Creating, delivering, managing, and valuating brand
messages which are the information and experiences
that impact how a brand is perceived.
• Marketing communications is any communication that
flow from an organisation to its customers, potential
customers and other groups who may influence its
success.
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Informs
Persuades
Differentiates
Reminds
What is Integrated Marketing
Communication?
IMC is designed to make all aspects of marketing
communication such as advertising, sales
promotion, public relations, and direct marketing
work together as a unified force, rather than
permitting each to work in isolation.
IMC, as a philosophical concept, dictates that all
parties involved in the firm’s communication
efforts co-ordinate to speak to target
audience(s) with
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one voice,
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a unified message and
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a consistent image
What is Integrated Marketing
Communication?
Early definitions of IMC:
• a concept of marketing communications planning
that recognizes the added value of a
comprehensive plan that evaluates the strategic
roles of a variety of communications disciplines
(for example, general advertising, direct response,
sales promotion, and public relations) and
• combines these disciplines to provide clarity,
consistency, and maximum communications
impact.
(Schultz, 1993, p. 10)
What is Integrated Marketing
Communication?
• IMC is the process of developing and implementing various
forms of persuasive communications programs with
customers and prospects over time.
• The goal of IMC is to influence or directly affect the behaviour
of the selected communications audience. IMC considers all
sources of brand or company contacts which a customer or
prospect has with the product or service as potential delivery
channels for future messages.
• In sum, the IMC process starts with the customer or prospect
and then works back to determine and define the forms and
methods through which persuasive communications programs
should be developed.
(Schultz, 1993a, p. 17)
What is Integrated Marketing
Communication?
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Tactical coordination of marcom elements
Redefining the scope of marcom
Application of information techolology
Financial and strategic integration
Stages in IMC Development (Source: Schultz and
Kitchen, 2000b)
What is IMC?
“A process that entails the planning,
creation, integration and implementation
of diverse forms of marketing promotion.”
All marketing communications should be:
(1) clearly positioned,
(2) directed to a particular target market,
(3) created to achieve a specific objective,
(4) undertaken to accomplish the objective
within budget constraint.
The Focus of IMC
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Traditional
Transactions
Consumers
One-to-many
Product driven
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Integrated
Relationships
Stakeholders
One-to-few
Customer driven
Important Names for IMC
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Don Schultz
George E.Belch, Michael A. Belch
Tom Duncan
Philip J. Kitchen
Changes in Marketing Communication Practices
Changes in the consumer market:
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Information overload,
advertising overload,
media fragmentation,
media choices,
smaller audiences,
increasing number of
“me-too” products,
• complexity and change in FMCG
markets,
• increasing media interest in social
behaviour of companies,
• increase reliance on highly targeted
communication methods.,
• increased efforts to assess
communications’ return on investment.
Changes in the supplier market:
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Multiple acquisitions and structural changes,
focus on short-term results,
interest in strategic importance of communication,
interest in internal communication,
heightened demands on suppliers
Why Is Integration So Important?
Integration
When brand
messages are
integrated…
=
…they reinforce
each other…
Synergy
… and create a
synergy effect
like:
2 + 2 = 5
“2 + 2 = 5” Statement
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Not True…Interaction
Results Depend on Interaction of
the two (or more) variables
Example:
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$10 Billboard = $20 Sales
$10 TV Ad = $30 Sales
But…
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$20 TV/Billboard = $60 Sales
IMC Mix
Advertising
Personal Selling
Sales Promotion/POP
Public Relations
Direct Marketing
Social Media
Word of Mouth
Mobile Media
Guerilla
Events
Benefits of IMC
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CLARITY - Avoid giving conflicting
messages
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CONSISTENCY - All messages
convey the core values/attributes of
corporate identity and brand
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SYNERGY - Messages reinforce
each other through repetition and
development
Contemporary IMC Approach
IMC is like an
orchestra
Musical score
guides all the
members of the
orchestra to play
together
IMC plan guides
all the members of
an organization to
work together
At the end of the course we can say
IMC is like
But not like this....
• Cadbury promised consumers free sporting goods if they will
save and submit special wrappers from Cadbury products.
• The campaign was supported with advertising, sponsorship,
sales promotion, package design, and marketing public
relations.
• However, there is a distinct unease in the minds of customers,
consumers, and industry experts on the links between chocolate
and obesity, and between chocolate and sporting prowess.
• Integration is both a way to develop campaigns that maximize
consistency among all the marcom tools and a philosophy that
monitors and manages all brand messages with all stakeholders
at all contact points.