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Managing integrated marketing communication

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Managing integrated marketing communication

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Managing integrated marketing communication
BY

M. A. Jalil Khan
B.A. ( Honors) M.A. (First Class)
University of Dhaka
MBA (Marketing & Int`l Business)
. Manager, Marketing & Business Development SQUARE Hospitals Ltd. Dhaka

Managing integrated marketing communication
BY

M. A. Jalil Khan
B.A. ( Honors) M.A. (First Class)
University of Dhaka
MBA (Marketing & Int`l Business)
. Manager, Marketing & Business Development SQUARE Hospitals Ltd. Dhaka

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Managing integrated marketing communication

  1. 1. BY M. A. Jalil Khan B.A. ( Honors) M.A. (First Class) University of Dhaka MBA (Marketing & Int`l Business) . Manager, Marketing & Business Development SQUARE Hospitals Ltd. Dhaka
  2. 2.  Definition of Marketing  Definition of Marketing Communication mix  Defining Integrated Marketing Communication  Basic Elements of Promotional Mix  Developing & Managing the Advertising campaign  Classification of Advertising  Using the internet as an IMC tool  Sales promotion Versus Publicity  Publicity vehicles, Public Relation Tools  IMC Planning model  The marketing plan & Push Pull strategy
  3. 3.  Learn the major steps in developing an effective and integrated communication program  Understanding the steps involved in developing an advertising program  Learn how companies can exploit the marketing mix and Marketing communication mix potential of sales
  4. 4.  IMC is a strategic business process used to plan, develop, execute & evaluatecoordinated,measurable, persuasive brand communication é consumers, customers, prospects employees and other relevant external & internal audiences.  IMC is the specific mix of advertising, personal selling, sales promotion, and public relations that a company uses to pursue its advertising and marketing objectives.  The goal of IMC is to generate short-term financial return & build long-term brand value.
  5. 5.  IMC / Promotional mix is nothing but the use of several different communication types to support marketing goals including advertising, publicity & Sales promotions  IMC mix is inclusive of both direct & indirect methods to brings the brand communication forwards to the target market & shape the positioning of the brand & the company  IMC plays a major role in the process of developing & sustaining brand identity & equity  So, the marketing Communications mix consists of five major modes of Communication: Advertising, Sales Promotion, Public relation, Direct mail & Personal Selling
  6. 6. Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations Personal Selling Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  7. 7. Marketing Communications Audience Point of Purchase Publicity Public Relations Packaging Direct Response Sales Promotion Events Outdoor Broadcast Media Print Media Direct Mail Internet/ Interactive Media © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  8. 8. Traditional Compensation Performance Based Compensation Traditional Compensation Performance Based Compensation Media Advertising Multiple Forms of Communication Mass Media Specialized Media Manufacturer Dominance Retailer Dominance General Focus Data Based Marketing Low Agency Accountability Greater Agency Accountability Limited Internet Availability Widespread Internet Availability Media Advertising Multiple Forms of Communication Mass Media Specialized Media Manufacturer Dominance Retailer Dominance General Focus Data Based Marketing Low Agency Accountability Greater Agency Accountability From Toward
  9. 9.  Advertising - Presentation and promotion of ideas, goods, or services by an identified sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails. (Always in Paid Form non personal)  Sales promotion - Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.
  10. 10.  Public relations - Paid intimate stimulation of supply for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media. Examples: Newspaper and magazine articles/reports, TV-Radio presentations, charitable contributions, speeches, issue advertising & seminars  Personal selling - A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face or via telephone
  11. 11.  Direct Marketing is often listed as a the fifth part of the marketing mix.  Corporate image - The Image of an organization is a crucial point in marketing. If the reputation of a company is bad, consumers are less willing to buy a product from this company as they would have been, if the company had a good image.  Exhibitions - are try-outs. You make your product, and let potential buyers try the product, this way, you know directly what people see in your product. The downside, your competitor can see exactly what you are doing.  Sponsorship is sometimes added as an 8th aspect.
  12. 12.  To reach large number of target audience in a cost effective manner  To provide clients with creative ideas that will enhance their overall marketing objectives while offering exceptional services at reasonable prices.  Promotion has a key role in determining profitability and market success and is one of the key.  Promotion is an important marketing force that provides extra incentive for consumer the trade the sales & other individual group.  Usually promotion covers a wide range of area.  Promotion is used to communicate with the customers  Define promotion and fit in marketing
  13. 13. 1. Build awareness 2. Create interest provide information 3. Stimulate demand 4. Reinforce the brand 5. Differentiate the product 6. To accelerate the value of the product 7. To stabilizes the sales
  14. 14. The seller’s 4 Ps. The buyer’s 4 Cs  Product Customers benefit  Price Customer Cost  Place Convenience  Promotion Communication
  15. 15.  Clearly define and understand your target audience  Get in the customer state of mind  Know how does this audience make purchasing decision  What methods would be most effective in reaching this target audience Consider this group when developing promotions 1. Influencer- A person whose view or advice influences the buying decisions 2. Buyer-A person who makes the purchase transaction 3. User- A person who uses the product/ service
  16. 16. Create promotion strategies (and associated budget based on…)  Your goal and objective  Costs of marketing activities  Promotional strategy Options: Word of mouth Publicity Sampling Discounting Advertising
  17. 17.  Identify target audience  Determine objectives of communication  Design the message  Select communication channels  Establish the budget  Select the marketing communications mix  Measure results  Manage the IMC process Stages/Steps in Marketing Communications Program Development
  18. 18.  Step 1: Identifying the target audience  Includes assessing the audience’s perceptions of the company, product, and competitors’ company/product image  Step 2: Cognitive, affective, and behavioral objectives may be set  Step 3: AIDA model guides message design
  19. 19.  AIDA ( Awareness, Interest, Action, Desire)  Push Pull Strategy Major Media Types  Newspapers  Magazines  Direct mail  Television  Radio  Internet  Outdoor Billboard  Yellow pages  Newsletters  Brochures  Telephone  Point of Purchase
  20. 20.  Deciding on Media Categories  Target audience’s media habits, nature of the product and message, cost, Span, Clutter( Mass, Confuse), Audience  Media Timing Decisions  Macro scheduling vs. micro scheduling  Continuity, concentration, flighting, and pulsing scheduling options  Deciding on Geographical Allocation
  21. 21. Message Design  Content  Structure  Format  Source  Message content decisions involve the selection of appeal, theme, idea, or USP  Types of appeals  Rational appeals  Emotional appeals  Moral appeals
  22. 22. Message Design  Content  Structure  Format  Source  One-sided vs. two- sided messages  Order of argument presentation
  23. 23. Message Design  Content  Structure  Format  Source  Message format decisions vary with the type of media, but may include:  Graphics, visuals  Headline, copy or script  Sound effects, voice qualities  Shape, scent, texture of package
  24. 24. Message Design  Content  Structure  Format  Source  Message source characteristics can influence attention and recall  Factors underlying perceptions of source credibility:  Expertise  Trustworthiness  Likability
  25. 25. Primary vs. Selective Demand Advertising Primary vs. Selective Demand Advertising Business-to-Business Advertising Organizations National Advertising Retail/Local Advertising Professional Advertising Trade Advertising National Advertising Retail/Local Advertising Business-to-Business Advertising Professional Advertising Consumers © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  26. 26.  Sales promotions are short-term incentives designed to stimulate purchase among consumers or trade  Purpose of sales promotion  Attract new tiers or brand switchers  Reward loyal customers  Increase repurchase rates
  27. 27.  Establish objectives  Select consumer- promotion tools  Select trade- promotion tools  Select business- and sales force promotion tools  Develop the program  Pretest the program Stages/Steps in Sales Promotion Program Development  Implement and evaluate the program
  28. 28. • Consumer-oriented • [For end-users] • Trade-oriented • [For resellers] Events Events Loyalty Programs Loyalty Programs Bonus Packs Bonus Packs Refunds/Rebates Refunds/Rebates Contests/Sweepstakes Contests/Sweepstakes Premiums Premiums/ product quality increase Samples Samples Coupons Coupons Coop Advertising Coop Advertising Trade Shows Trade Shows Training Programs Training Programs/ Demo POP Displays POP Displays Trade Allowances © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  29. 29. Introduce New Products Get Existing Customers to Buy More Attract New Customers Maintain Sales In Off Season Increase Retail Inventories Tie In Advertising & Personal Selling Enhance Personal Selling Combat Competition Introduce New Products Get Existing Customers to Buy More Attract New Customers Maintain Sales In Off Season Increase Retail Inventories Tie In Advertising & Personal Selling Enhance Personal Selling Sales Promotion © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  30. 30.  Marketing Public Relations (MPR)  Plays an important role in New product launches Repositioning of mature brand Building interest in product category Influencing specific target groups Defending products with public problems Building the corporate image  Three Major MPR Decisions
  31. 31.  Public relations activities promote or protect the image of a firm or product  Public relations functions:  Press relations  Product publicity  Corporate communications  Special Events (Tree Plantation)  Community Activities  lobbying  Counseling
  32. 32.  Publications  Events  Sponsorships  News  Speeches  Public-service activities  Press release Major Public Relations Tools
  33. 33. Corporate Advertising Corporate Advertising Cause-related Marketing Cause-related Marketing Publicity Vehicles Community Activities Public Affairs Activities Special Publications Special Event Sponsorship Publicity Vehicles Community Activities Public Affairs Activities Special Publications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  34. 34.  Direct marketing uses consumer-direct channels to reach and deliver offerings to consumers without intermediaries.  Direct marketing is growing and offers consumers key benefits.  Firms are recognizing the importance of integrated direct marketing efforts.
  35. 35.  Steps in Developing a Direct-Mail Campaign:  Step 1: Set objectives  Step 2: Identify target markets  Step 3: Define the offer  Step 4: Test the elements  Step 5: Measure results
  36. 36.  Face-to-face selling  Door –to-Door  Direct mail  Catalog marketing  Telemarketing  Fax  Direct-response TV marketing  Kiosk marketing  E-marketing/online  Internet Major Direct Marketing Tools
  37. 37. Direct Response Advertising Direct Response Advertising Direct Mail Cataloging Telemarketing Internet Sales Shopping Channels Direct Mail Telemarketing Catalogs Shopping Channels Direct Marketing © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  38. 38.  MAN Prospecting/Research Pre Approach Approach Presentation Handling Objection Closing Follow Up  IMFACE ( Introduction, Mutual Attraction, Friendship, Courtship, Engagement) 7 R Research Recruitment Retention Retention Reward Recognition Repetition
  39. 39. Non –paid for communication of information about company or products /Received as /credible/Relatively inexpensive  Way to gain Publicity  Write an articles-writing articles on topics related to your business expertise is an excellent business Promotion technique  Contact local/ TV Radio stations and offer to be interviewed.  Publish a newsletter/Speak at the local functions/ talk show  Offer or Sponsor a seminar Write news /press release :  Prepare good press release about new service, expansion, sponsoring, award, events or containing information on that engaging enough people interest and send them to the media Volunteer Sponsor a community project or support a nonprofit org. or charity  Promote a cause Posting message in forms bulletin is a great way to male your business know to people.  Use shared advertise that allow each business to use promotion techniques that would be too expensive to implement alone .  Give out freebies as business promotion first 50 customer will get a red rose or discount price/Use vehicle to promote your business your name phone
  40. 40.  Passing of information by verbal means especially recommendation in an informal, person to person manner rather than by media/advertising  Some statistics  A satisfied customer will tell 4 to 5 others about a pleasant brand  experience  An unsatisfied customer will tell 7 to 13 others  It costs 3 to 5 times more replace than to keep a customer  Earn it  Provide good experience  Service oriented  Be creative  Ask for referrals  implement an incentive programs for referrals  Provide business cards/ brochure
  41. 41. Interviews Interviews Feature Articles Special Events Press Conferences News Releases Feature Articles Special Events News Releases Publicity Vehicles © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  42. 42.  Step 4: Selecting Communication Channels  Personal communication channels Effectiveness derives from personalization and feedback Several methods of stimulating personal communication channels exist  Non personal communication channels Influence derives from two-step flow-of- communication process
  43. 43.  Devoting extra effort to influential individuals or companies  Creating opinion leaders  Working through influential community members  Using influential people in testimonial advertising  Developing advertising with high “conversation value”  Use viral marketing  Developing word-of- mouth referral channels  Establishing an electronic forum Methods of Stimulating Personal Communication
  44. 44.  Step 5: Establishing the Marketing Communications Budget  Affordability method  Percentage-of-sales method  Competitive-parity method  Objective-and-task method  Step 6: Deciding on the Marketing Communications Mix
  45. 45. Communications Mix Selection Types of promotional tools  Selection factors  Advertising  Sales promotion  Public relations and publicity  Direct marketing  Personal selling
  46. 46. Communications Mix Selection  Types of promotional tools  Selection factors  Consumer vs. business market  Stage of buyer readiness  Stage of product life cycle  Market rank
  47. 47.  Step 7: Measure Results  Recognition, recall, attitudes, behavioral responses  Step 8: Manage the Integrated Marketing Communications Process  Provides stronger message consistency and greater sales impact  Improves firms’ ability to reach right customers at right time with right message
  48. 48. The Five Ms of Advertising  Mission  Money  Message  Media  Measurement  Objectives can be classified by aim:  Inform  Persuade  Remind  Reinforce
  49. 49.  Factors considered when budget-setting:  Stage of product life cycle  Market share and consumer base  Competition and clutter  Advertising frequency  Product substitutability The Five Ms of Advertising  Mission  Money  Message  Media  Measurement
  50. 50.  Factors considered when choosing the advertising message:  Message generation  Message evaluation and selection  Message execution  Social responsibility review The Five Ms of Advertising  Mission  Money  Message  Media  Measurement
  51. 51.  Developing media strategy involves:  Deciding on reach, frequency & impact  Selecting media and vehicles  Determining media timing  Deciding on geographical media allocation The Five Ms of Advertising  Mission  Money  Message  Media  Measurement
  52. 52.  Evaluating advertising effectiveness  Communication- effect research  Sales-effect research The Five Ms of Advertising  Mission  Money  Message  Media  Measurement
  53. 53. Builds and Maintains Customer Relationships Obtains Customer Database Information Communicates and Interacts With Buyers Provides Customer Service and Support Educates or Informs Customers A Persuasive Advertising Medium A Sales Tool or an Actual Sales Vehicle Obtains Customer Database Information Communicates and Interacts With Buyers Provides Customer Service and Support Educates or Informs Customers A Persuasive Advertising Medium A Sales Tool or an Actual Sales Vehicle The Internet © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  54. 54.  Branding is the foundation of marketing and is inseparable from business strategy.  It is therefore more than putting a label on a fancy product. Nowadays, a corporation, law firm, country, university, museum, hospital, celebrity, and even you in your career can be considered as a brand.
  55. 55.  "A product is something that is made in a factory; a brand is something that is bought by a customer. A product can be copied by a competitor; a brand is unique. A product can be quickly outdated; a successful brand is timeless." S. King, WPP Group, London
  56. 56. 90% under the sea, which is planning face 10% you can see, Only tip of the ice Communication work is like an ice Berge
  57. 57. Advertising Publicity Tentative Low Low/Unspecified Uncontrollable Great Lower Measurable Schedulable High/Specific High Specifiable Undetermined Higher Little Factor Control Credibility Reach Frequency Cost Flexibility Timing © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  58. 58. Promotional Program Situation Analysis Analysis of the Communications Process Budget Determination Develop Integrated Marketing Communications Programs Review of Marketing Plan Advertising Sales Promotion PR/ Publicity Personal Selling Direct Marketing Advertising Objectives Sales Promotion Objectives PR/ Publicity Objectives Personal Selling Objectives Direct Marketing Objectives Message Strategy Sales Promotion Strategy PR/ Publicity Strategy Personal Selling Strategy Direct Marketing Strategy Integration & Implementation of Marketing Communications Strategies Monitor, Evaluate & Control Promotional Program Internet/ Interactive Internet/ Interactive Objectives Internet/ Interactive Strategy
  59. 59. 1. A detailed situation analysis 2. Specific marketing objectives 3. A marketing strategy and program 4. A program for implementing the strategy 5. A process for monitoring and evaluating performance 1. A detailed situation analysis 3. A marketing strategy and program 4. A program for implementing the strategy 2. Specific marketing objectives © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  60. 60.  "Push or Pull"?  Marketing theory distinguishes between two main kinds of promotional strategy - "push" and "pull".  Push: A “push” promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product.  The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers.  A good example of "push" selling is mobile phones, where the major handset manufacturers such as Nokia promote their products via retailers such as Car phone Warehouse. Personal selling and trade promotions are often the most effective promotional tools for companies such as Nokia - for example offering subsidies on the handsets to encourage retailers to sell higher volumes.  A "push" strategy tries to sell directly to the consumer, bypassing other distribution channels (e.g. selling insurance or holidays directly). With this type of strategy, consumer promotions and advertising are the most likely promotional tools.
  61. 61.  Pull  A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product.  If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.  A good example of a pull is the heavy advertising and promotion of children's’ toys – mainly on television. Consider the recent BBC promotional campaign for its new pre-school program – the Fimbles. Aimed at 2 to 4-year-olds, 130 episodes of Fimbles have been made and are featured everyday on digital children's channel CBeebies and BBC.  As part of the promotional campaign, the BBC has agreed a deal with toy maker Fisher-Price to market products based on the show, which it hopes will emulate the popularity of the Tweenies. Under the terms of the deal, Fisher-Price will develop, manufacture and distribute a range of Fimbles products including soft, plastic and electronic learning toys.  In 2001, BBC Worldwide (the commercial division of the BBC) achieved sales of £90m from its children's brands and properties last year. The demand created from broadcasting of the Fimbles & a major advertising campaign is likely to “pull” demand from children and encourage retailers to stock Fimbles toys in the stores for Christmas 2002.
  62. 62.  Marketing theory distinguishes between two main kinds of promotional strategy Push and Pull

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