Transcript Lecture 1 - Marketing Communications in Context

INTEGRATED MARKETING
COMMUNICATIONS
LECTURE 1: MARKETING
COMMUNICATIONS IN CONTEXT
Objectives
At the end of this input the participant
will be able to:
• have an understanding of the philosophy
behind the module and the basic
communications mix
• have an understanding of the nature of I(M)C
and the make-up of the communications mix
in general in relation to various kinds of
markets
• appreciate the importance of integration in
communications
• appreciate the benefits of applying
integration in comms to target markets
MANAGING CHANGE: Focus shift
HISTORICAL
CURRENT
MARKETER
MARKETER
CHANNEL
CHANNEL
MEDIA
CONSUMER
21ST CENTURY
MARKETER
CHANNEL
MEDIA
MEDIA
CONSUMER
CONSUMER
Communications Mix
Product, Price, Place,
Promotion
Advertising
Sales promotion
Public relations
Personal selling
Corporate PR
Direct marketing
And others
Marketing Planning, the
Communications Mix and Integration
Marketing Objectives and Strategy
Marketing Plan
The Marketing Communications Strategy
Managing the Communications Mix
• Planning frameworks can assist planning,
management and control
• Many Marcomms planning models exist
e.g. Copley APIC, Smith SOSTAC etc
• All include similar stages of analysis,
planning, implementation and evaluation
APIC MODEL
• ANALYSIS: the present situation (organisation,
•
•
•
product/service, competitors, customers,
environment etc)
PLANNING: objectives, positioning, strategy and
tactics
IMPLEMENTATION: costing, budgeting,
production, scheduling etc
CONTROL: research, monitoring and evaluation
Copley 2004
DECISION SEQUENCE MODEL
Situation analysis
objectives and positioning
strategies
budget
implementation
Rothschild 1987
evaluation
Decision Sequence Model
• Situation Analysis:
• Where are we now?
– Assessment
– Assessment
– Assessment
– Assessment
of
of
of
of
consumer
product class
the organisation
the Environment
Decision Sequence Model
• Objectives and Positioning:
– Where do we want to go?
– Time, task, target and amount of change
• Strategies:
– How do we get there?
– Integrated Marcomms Mix
• Budget:
– How much can we/do we need to spend?
Decision Sequence Model
• Implementation:
– Test Marketing etc
• Evaluation:
– Were the objectives achieved?
– Feedback to inform the next situation analysis
Fill’s Decision Sequence Model
• Similar approach to Rothschild and APIC
• Features a Key Factor or Content Analysis,
instead of the Situation Analysis
• Explicit recognition of the role of agencies
• Explicit recognition of the part research
plays in the whole process
Fill 1995 and 2002
Integrated Communications:
the philosophy
“careful planning creates
marketing communication synergy
that reinforces a consistent
message or image in a cost
effective manner” Smith 1993
INTEGRATED (MARKETING)
COMMUNICATIONS
IMC DEFINED:
“IMC is the process of developing and
implementing various forms of persuasive
communications programs with customers and
prospects over time”
(Shimp, 1997)
INTEGRATED (MARKETING)
COMMUNICATIONS
IMC CAN BE DESCRIBED AS:
• Single voice, Gestalt, Synergy
1. Moving people to action
2. Use of all forms of contact
3. Start with the consumer
4. Achieve synergy
5. Build relationships
(Shimp, 1997)
Implications of: GESTALT
• consistency in brand development
• synergy of effort
• closer client-agency relationship
• teamwork
• effective measurement
i.e. The whole is greater than the sum of the
parts
INTEGRATED (MARKETING)
COMMUNICATIONS
• Communications elements working
together with a “unified message”
• Below the line supports above activity and
vice versa
• A consumer-focussed approach
Eight possible themes to explore
the question “what is IMC?”:
1. Attitude of mind. IMC is an attitude, not a
science.
2. One spirit. The single theme to support the
brand, the intellectual message.
3. One strategy. Of the marketing and then
promo mix - a single communications
strategy which embraces what it needs to
achieve objectives.
4. Synergy. A unified message where each part
reinforces the others, each drawing from
each other.
Eight possible themes to explore
the question “what is IMC?”:
5. Equal status. The ‘line’ has gone and the mix is
dictated by the brief, not the agency.
Advertising’s dominance is being challenged.
6. Merging disciplines or blurred edges, since a lot
of advertising contains (say) PR or SPs
7. Stakeholder emphasis. But IMC is not a panacea
8. Marketing orientation. Understanding needs and
how to satisfy them with the help of IMC
WHAT DRIVES IMC?
1. Financial factors. Schultz (1994) suggests:
- recession
- the trend toward pay by results/accountability
- restructuring of how agencies are paid re
billing/income/profit
- pressure to reduce media billing
- media fragmentation
All have contributed toward consideration of
IMC.
WHAT DRIVES IMC?
2. The sophisticated client. Most commentators
would agree that clients are a lot more
sophisticated and knowledgeable than in the
past. The mystique of advertising is diminished
and a power shift occurred.
3. Disillusionment with the brand, advertising and
agencies. In a similar vein to the above, own
labels are stronger and advertising less revered.
Other elements of communications deemed
important. Agencies have had to change, but
should see this as a set of opportunities not
threats.
WHAT DRIVES IMC?
4. Power shift to retailers generally and
what they need/expect has meant more
spend on below the line.
5. Environmental factors such as the new
media, attitudes toward modernist
marketing etc. have changed the way
in which communication is viewed.
THE BENEFITS OF IMC
Linton and Morley (1995) provide a
clear list of benefits of IMC to
organisations:
1. Creative integrity - theme and style
consistent throughout, therefore impact not
confusion. Can aid campaign build-up and
provide materials for other uses.
THE BENEFITS OF IMC
2. Consistency of messages - following on from
1. above, straplines and other parts of the
message can provide the basis for
reinforcement, reminder leading to the
development of the key message, visual
standards, use of company colours
consistently etc.
THE BENEFITS OF IMC
3. Unbiased recommendations - usually through one
agency, “through the line” with no worries about
earning commission from advertising billing only.
Seek objectivity from start.
4. Better use of all media - allow each to work with
each other to get the best out of all of it.
5. Greater marketing precision - via data bases and
information processing generally. Allows the use
of different elements to achieve different
objectives.
6. Operational efficiency - Takes fewer people , can
be a single interface and so less conflict. Simple
compared to the potentially messy multi-agency
situation.
THE BENEFITS OF IMC
7. Cost savings - re. admin., rationalisation of
materials, artwork etc.
8. High calibre service - to all areas. IMC means
professionalism for below-the-line as well as
above. Overall service improved “through the
line”.
9. Easier working relationships - One agency means
no new learning curves because of knowledge of
the client’s business, simplified admin., no relearning but ongoing, consistent.
10. Agency accountability - This has to be true if
only one agency is used. Value for money should
result.
INTEGRATED (MARKETING)
COMMUNICATIONS
WHAT INHIBITS IMC
• Practical difficulties, for example the
complexity of different objectives being
achieved by different strategy and
tactics, don’t help. Implementation can
be very difficult to achieve.
WHAT INHIBITS IMC
• Cultural factors. The main factor is
change, or resistance to it. The culture
of the organisation for example may be
hung up on flashy ads on TV. Or it may
be that sales promotions have been the
norm, linked to bonuses. Any change
would be accompanied by conflict.
STAGES IN IMC
4TH STAGE: FINANCIAL AND STRATEGIC
INTEGRATION - monitoring performance for
ROI
3RD STAGE: APPLICATION OF IT - data
sources and bases, planning and
implementation, data to knowledge
2nd STAGE: REDEFINING THE SCOPE OF
MARKETING COMMUNICATIONS - gather
information and apply to communications
1st STAGE: TACTICAL COORDINATION OF
MARKETING COMMUNICATIONS interpersonal and cross-functional
communications
Any Questions