Transcript the imc foundation

Integrated Marketing Communications
Corporate Image and Brand Management
Buyer Behaviors
Promotions Opportunity Analysis
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Communication can be defined as transmitting,
receiving, and processing information.
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Senders. The person(s) attempting to deliver a
message or idea.
Encoding. The verbal (words, sounds) and nonverbal
(gestures, facial expressions, posture) cues that the
sender utilizes in dispatching a message.
Transmission Devices. All of the items that carry a
message from the sender to the receiver.
Decoding. When the receiver employs any of his or
her senses in an attempt to capture a message.
Receivers. The intended audience for a message.
Feedback. The information the sender obtains from
the receiver regarding the receiver’s perception or
interpretation of a message
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Noise. Anything that distorts or disrupts a
message.
Clutter. Exists when consumers are exposed to
hundreds of marketing messages per day, and
most are turned out.
Task: Identify a current marketing (media)
campaign and identify the different elements
involved in its communication execution. What
are possible noise or clutters of this campaign.
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The coordination and integration of all marketing
communication tools, avenues, and sources within
a company into a seamless program that
maximizes the impact on customers and other end
users at a minimal cost.
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This affects all of firm’s business-to-business,
marketing channel, customer-focused, and
internally oriented communications.
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The coordination and integration of all marketing
communication tools, avenues, and sources within
a company into a seamless program that
maximizes the impact on customers and other end
users at a minimal cost.
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Integrated Marketing Communications is a simple
concept. It ensures that all forms of
communications and messages are carefully
linked together.
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This affects all of firm’s business-to-business,
marketing channel, customer-focused, and
internally oriented communications.
How?
Product
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Price
Distribution
Which should be the precedent between the two
concept?
How do you relate IMC with Marketing Mix?
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Information Technology
Changes in Channel Power
Increase in Competition
Brand Parity
 It occurs when there is the perception that most products
and services are essentially the same.
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Integration of Information
 Contact points are the places where customers interact with
or acquire additional information about a firm.
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Decline in the Effectiveness of Television
Advertising
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The firm’s image is based on the feelings
consumers and businesses have about the overall
organization and its individual brands.
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A strong IMC foundation combines understanding
of the firm’s image and brands with assessments
of consumer and business buyer behaviors.
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Remember that what consumers believe about a
firm is far more important than how company
officials view the image.
Tangible Elements
Intangible Elements
Goods and services sold
Corporate, personnel, and
environmental policies
Retail outlets where the product is sold Ideals and beliefs of corporate
personnel
Factories where the product is
produced
Culture of country and location of
company
Advertising, promotions, and other
forms of communications
Media reports
Corporate name and logo
Packages and labels
Employees
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Providing assurance regarding purchase decisions
of familiar products in unfamiliar settings
Giving assurance about the purchase when the
buyer has little or no previous experience with the
good or service
Reducing search time in purchase decisions
Providing psychological reinforcement and social
acceptance of purchase
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Extension of positive consumer feelings to new
products
The ability to charge a higher price or fee
Consumer loyalty leading to more frequent
purchases
Positive word-of-mouth endorsements
Higher level of channel power
The ability to attract quality employees
More favorable ratings by financial observers and
analysts
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The image being projected accurately
portrays the firm and coincides with the
goods and services offered.
Reinforcing or rejuvenating a current
image that is consistent with the view of
consumers is easier to accomplish than
changing a well-established image.
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It is difficult to change the images people hold
about a given company. In some cases,
modifying the current image or trying to create
an entirely new image is not possible.
Any negative or bad press can quickly destroy
an image that took years to build.
Reestablishing or rebuilding the firm’s image
takes a great deal of time when the firm’s
reputation has been damaged.
Category
Definition
Example
Overt names
Reveal what the company does
PAL, National
Bookstore
Implied names Contain recognizable words or words
parts that convey what a company does
Metrobank, FedEx
Conceptual
names
Capture the essence of what a company
offers
Google,
Iconoclastic
names
Represent something unique, different,
and memorable
Yahoo!
Corporate logo is a symbol used to identify a
company and its brands, helping to convey the
overall corporate image.
Four Tests of Quality Logos and Corporate
Names
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Recognizable
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Familiar
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Elicits a consensual meaning among those in
the firm’s target market
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Evokes positive feelings
Brands are names assigned to an individual good
or service or to a group of complementary
products.
Developing Strong Brand Name
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What are the brand’s most compelling
benefits?
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What emotions are elicited by the brand either
during or after the purchase?
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What one word best describes the brand?
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What is important to consumers in the
purchase of the brand?
Two Important Processes in Establish a Strong
Brand Name
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Prominent promotions through powerful,
repetitious ads.
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Association with the product’s most prominent
characteristics.
Brand equity is a set of characteristics that are unique
to a brand. In essence, it is the perception that a good
or service with a given brand name is different and
better.
Benefits
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Allows manufacturers to charge more for products
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Creates higher gross margins
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Provides power with retailers and wholesalers
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Captures additional retail shelf space
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Serves as a weapon against consumers switching
due to sales promotions
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Prevents erosion of market share
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Family brands. A group of related products
sold under one name.
Brand extension. The use of an established
brand name on products or services not
related to the core brand.
Flanker brand. The development of a new
brand sold in the same category as another
product.
Co-branding. The offering of two or more
brands in a single marketing offer.
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Ingredient branding. The placement of one
brand within another brand.
Cooperative branding. The joint venture of
two or more brands into a new product or
service.
Complementary branding. The marketing of
two brands together for co-consumption.
Private brands. Proprietary brands marketed
by an organization and sold within the
organization’s outlets.
Primary Purpose
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Protect the product inside.
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Provide for ease of shipping, moving, and
handling
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Provide for easy placement on store shelves.
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Prevent or reduce the possibility of theft.
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Prevent tampering (drugs and foods).
New Trends in Packaging
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Meets consumer needs for speed, convenience,
and portability
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Must be contemporary and striking
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Must be designed for ease of use
It is the process of creating a perception in the consumer’s
mind regarding the nature of a company and its products
relative to competitors.
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The product’s standing relative to competition.
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How the product is perceived by consumers.
Product Positioning Strategies
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Attributes
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Competitors
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Use or application
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Product user
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Product class
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Cultural symbol
Developing effective methods to persuade people to
buy goods and services is a primary goal of an
integrated marketing communications program.
Two Types of Buying Behavior
 Consumer
 Business-to-business
**For purpose of facilitation and time management,
please refer to other subjects covering this topic.
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is the process marketers use to identify target audiences
for a company’s goods and services and the
communication strategies needed to reach these
audiences.
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successful IMC program identifies the places to make
contacts and presents customers with a well-defined
message spoken in a clear voice.
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purpose of part is to identify customers and
competitors in the marketplace and to discover new
promotional opportunities.
Steps
1. Conduct communication market analysis
2. Establish communication objectives
3. Create communications budget
4. Prepare promotional strategies
5. Match tactics with strategies
It is the process of discovering the organization’s strengths
and weaknesses in the area of marketing communication
and combining that information with an analysis of the
opportunities and threats present in the firm’s external
environment (TOWS).
Five Areas
Competitors
Opportunities
Target markets
Customers
Product positioning
Communication Objectives 8. Increase market share
1. Develop brand awareness 9. Increase sales
2. Increase category
10. Reinforce purchase
demand
decisions
3. Change customer beliefs
or attitudes
Marketing Objectives
4. Enhance purchase
1. Sales volume
actions
2. Market share
5. Encourage repeat
3. Profit
purchase
4. Return on investment
6. Build customer traffic
7. Enhance firm image
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Budgets are based on communication objectives
as well as marketing objectives
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It is not unlikely that there is a direct relationship
between expenditures on advertising
communications and subsequent sales
revenues.
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Communication goals differ depending on the
stage in the buying process that is being
addressed.
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Percentage of Sales Method
 This budget is derived from wither: (1) sales from the previous
year or (2) anticipated sales for the next year.
 Disadvantages: (1) it tends to change in the opposite direction
of what is typically needed. (2) it doesn’t allocate money for
special needs or to combat competitive pressures.
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Meet-the-Competition Method
 The primary goal of this method is to prevent the loss of market
share.
 Matching the competition’s spending doesn’t guarantee
success.
 IMPORTANT: It is not how much is spent, but rather how well
the money is allocated and how effectively the marketing
campaign works at retaining customers and market share.
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“What We Can Afford” Method
 This technique sets the marketing budget after all of the
company ‘s other budgets have been determined.
 VIEW: Marketing expenditures as non-revenuegenerating activities.
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Objective and Task Method
 Management lists all of the communication objectives to
pursue during the year and then calculates the cost of
accomplishing each objective.
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Payout Planning
 Establishes a ration of advertising to sales or market
share.
 This method normally allocates greater amounts in early
years to yield payout in later years.
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Quantitative Models
 Computer simulations can be developed to model the
relationship between advertising or promotional
expenditures with sales and profits.
Strategies are sweeping guidelines concerning
the essence of the company’s marketing efforts.
 Strategies provide the long-term direction for all
marketing activities.
 It is critical that a company’s communication
strategies mesh with its overall message and be
carefully linked to the opportunities identified by
a communication market analysis.
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Communication strategies should be directly
related to a firm’s marketing objectives.
 Strategies must be achievable using the
allocations available in the marketing and
communications budget.
 Once strategies have been implemented, they
are not changed unless major new events occur.
 Only changes in the marketplace, new
competitive forces, or new promotional
opportunities should cause companies to alter
strategies.
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Tactics are activities performed to support
strategies.
 Tactics include promotional campaigns
designed around themes based on
strategic objectives.
 Tactics do not replace strategies, nor
should they distract consumers from the
consistent message or theme the
company is trying to create.
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Methods
 Advertisements based on the major theme or a
subtheme
 Personal selling enticements (bonuses and
prizes for sales reps)
 Sales promotions (posters, point-of-purchase
displays, end-of-aisle displays, freestanding
displays)
 Special product packaging and labeling
 Price changes
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Other enticements
 Coupons
 Gift certificates
 Bonus packs (a second product attached to a
first)
 Special containers
 Contests and prizes
 Rebates
 Volume discounts
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To better enhance your promotional opportunities
analysis, it is better to revisit your MARKET
SEGMENTATION.
END