The document discusses integrated marketing communications (IMC), which aims to make different communication channels like advertising, PR, sales promotion etc. work together in a coordinated way.
It describes the key elements of an IMC mix, including horizontal and vertical integration across business functions and objectives. Benefits are creating competitive advantage through a consistent message. Challenges include organizational silos and different timelines across channels.
The document also provides overviews of different promotional tools - advertising, publicity, personal selling, sales promotion and direct marketing - comparing their effectiveness and advantages/disadvantages in building awareness, inducing purchase and maintaining relationships.
2. INTEGRATED MARKETING
COMMUNICATIONS MIX
A management concept that 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. It ensures that all forms of
communications and messages are carefully linked
together. It means integrating all the promotional tools, so
that they work together in harmony. Promotion is one of
the ``4Ps’’ in the marketing mix. Promotion has its own mix
of communications tools.
All of these communications tools work better if they work
together in harmony rather than in isolation. Their sum is
greater than their parts - providing they speak consistently
with one voice all the time, every time.
3. LEVELS OF INTEGRATION
Horizontal Integration
Occurs across the marketing mix and across business functions - for example,
production, finance, distribution and communications should work together
and be conscious that their decisions and actions send messages to
customers
Vertical Integration
Marketing and communications objectives must support the higher level
corporate objectives and corporate missions.
Internal Integration
Internal marketing requires us to be keeping all staff informed and motivated
about any new developments from new advertisements, to new corporate
identities, new service standards, new strategic partners and so on.
External Integration
It requires external partners such as advertising and PR agencies to work
closely together to deliver a single seamless solution, a cohesive message, an
integrated message.
4.
BENEFITS OF IMC
It creates competitive advantage, boost sales and profits, while saving money, time and stress.
IMC wraps communications around customers and helps them move through the various stages of the
buying process.
The organization simultaneously consolidates its image, develops a dialogue and nurtures its
relationship with customers.
This 'Relationship Marketing' cements a bond of loyalty with customers which can protect them from
the inevitable onslaught of competition.
The ability to keep a customer for life is a powerful competitive advantage.
IMC also increases profits through increased effectiveness. At its most basic level, a unified message has
more impact than a disjointed myriad of messages. In a busy world, a consistent, consolidated and
crystal clear message has a better chance of cutting through the 'noise' of over five hundred commercial
messages which bombard customers each and every day.
IMC can boost sales by stretching messages across several communications tools to create more
avenues for customers to become aware, aroused, and ultimately, to make a purchase
Carefully linked messages also help buyers by giving timely reminders, updated information and special
offers which, when presented in a planned sequence, help them move comfortably through the stages
of their buying process. and this reduces their 'misery of choice' in a complex and busy world.
IMC also makes messages more consistent and therefore more credible. This reduces risk in the mind of
the buyer which, in turn, shortens the search process and helps to dictate the outcome of brand
comparisons.
Integrated communications present a reassuring sense of order.
5. Challenges to IMC
Resistance to change and the special problems of communicating with a wide
variety of target audiences
Some organizational structures isolate communications, data, and even
managers from each other. For example the PR department often doesn't report
to marketing. The sales force rarely meet the advertising or sales promotion
An advertising agency may not be so enthusiastic about developing a creative
idea generated by, say, a PR or a direct marketing consultant.
IMC can restrict creativity. No more wild and wacky sales promotions unless they
fit into the overall marketing communications strategy. The joy of rampant
creativity may be stifled, but the creative challenge may be greater and
ultimately more satisfying when operating within a tighter, integrated, creative
brief.
Time Horizons provide one more barrier to IMC. For example, image advertising,
designed to nurture the brand over the longer term, may conflict with shorter
term advertising or sales promotions designed to boost quarterly sales. However
the two objectives can be accommodated within an overall IMC if carefully
planned
6. How to become integrated and
stay integrated
Focus on a clear marketing communications strategy. Have crystal clear
communications objectives; clear positioning statements. Link core values into
every communication. Ensure all communications add value to (instead of dilute)
the brand or organization. Exploit areas of sustainable competitive advantage.
Think Customers First. Wrap communications around the customer's buying
process. Identify the stages they go through before, during and after a purchase.
Select communication tools which are right for each stage. Develop a sequence
of communications activities which help the customer to move easily through
each stage.
Build Relationships and Brand Values. All communications should help to
develop stronger and stronger relationships with customers. Ask how each
communication tool helps to do this. Remember: customer retention is as
important as customer acquisition.
Develop a Good Marketing Information System which defines who needs what
information when. A customer database for example, can help the telesales,
direct marketing and sales force. IMC can help to define, collect and share vital
information.
7. PERSONAL SELLING PROCESS
7Ps of selling
Prospecting-looking for prospective customers
Preparation-customer research, objective setting
etc
Presentation-demonstration and discussions
Possible problems-foreseeing and handling
objections
Please give me the order-closing the sale and
getting the order
Pen to paper-recording details accurately
Post sales service-developing the relationship
9. Advantage
A two way communication hence instant
feedback
Less noise in the system than other tools
Participation in the decision process is
greater on the part of the seller
Messages can be tailored
Encourage placing of order and closing the
sale
10. DIRECT MARKETING
This is concerned with establishing an
individual relationship between the business
offering a product or service and the final
customer. Direct marketing defined by the
Institute of Direct Marketing as: The planned
recording, analysis and tracking of customer
behavior to develop a relational marketing
strategy.
11. Principles objectives of direct
marketing;
Customer acquisition
Customer retention
The subsidiary objectives associated with the
above are;
Lead qualification (adding to the information
known about the prospect/customer)
Customer relationship
management(maintaining contact)
12. Prospect hierarchy
Based on Tapp (1998)
1. Lapsed/former customers
2. Enquiries
3. Referrals
4. Profiled prospects
5. Hand raisers
6. Suspects
13. Direct marketing tools
• Direct-response adverts on television and radio
• Mail order catalogues
• E-commerce
• Magazine inserts
• Direct mail
• Telemarketing
14. Effectiveness of methods
Publicity - more effective at awareness stage
Advertising - becomes less effective over time
Personal selling - more effective when a more
personal relationship is needed
Sales promotion - gives added incentive for
buyer action
15.
ADVERTISING presentation and promotion of ideas, goods,
Any paid form of non personal
services, person, place by an identified people (sponsor). Advertising is
impersonal mass communication that the sponsor has paid for and in which
the sponsor is clearly identified. The most familiar forms of the ads are found
in the broadcast (TV and Radio) and print (newspapers & magazines) media.
However there are many other advertising alternatives, from direct mail to
bill boards and telephone directory yellow pages.
Effectiveness
Effective in the product awareness stage and less effective in inducing
purchasing
Advantage
Good for building awareness
Effective at reaching a wide audience
Repetition of main brand and product positioning helps build customer trust
Demerit
Impersonal - cannot answer all a customer's questions
Not good at getting customers to make a final purchasing decision
16. PUBLICITY
Non personal communications of information about a firm or person is
transmitted through a mass medium at no charge to the firm. Publicity is
special form of public relations. Public relation can be a powerful brand
building tool. Generally saying is PR is nail and AD is hammer. Therefore PR
has a more curability than others
Effectiveness
When undertaking post purchase it is the most effective method and least
effective in inducing purchasing
Merit
Often seen as more "credible" - since the message seems to be coming from
a third party
Cheap way of reaching many customers - if the publicity is achieved through
the right media
Demerit
Risk of losing control - cannot always control what other people write or say
about your product
17. PERSONAL SELLING
It is the direct presentation of the product or personnel presentation by the
firm’s sales force to a prospective customer for the purpose of making sales
and building customer relationships. Personal selling takes place face to face
or over the phone, and it may be directed to a middlemen or a final
consumer. It is the only way to adopt a presentation to individual customer
sales promotion.
Effectiveness
This is the most effective method for inducing purchase and relationship
Merit
Highly interactive - lots of communication between the buyer and seller
Excellent for communicating detailed product information and features
Relationships can be built up - important if closing the sale make take a long
time
Demerit
Costly - employing a sales force has many hidden costs in addition to wages
Not suitable if there are thousands of important buyers
Control
18. SALES PROMOTION
It is demand stimulating activity designed to supplement advertising
and facilitate the personal selling. The common goal of sales
promotion is to convincing people to try new product. This tool
includes a wide spectrum of activities such as samples, premiums,
coupons. Discount, Allowance, trade of are the best examples of sales
promotion.
Effectiveness
Effective in inducing purchase and least effective in post purchase
Merit
stimulate quick increases in sales by targeting promotional incentives
on particular products
Good short term tactical tool
Demerit
If used over the long-term, customers may get used to the effect
Too much promotion may damage the brand image
19. DIRECT MARKETING
Involves the delivery of personalized and often
interactive promotional materials to individual
consumers via channels such as mail, catalogs,
Internet, e-mail, telephone, and direct-response
advertising. By targeting consumers individually,
organizations hope to get consumers to take
action.
Effectiveness
Effective in inducing awareness, interest, desire
and purchase. It cuts across the entire sales
cycle.