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Relationship  Marketing  ppt 31
Relationship Marketing ppt 31
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  1. 1. Promotion Application through IMC
  2. 2. Purpose of Communication  Develop brand awareness  Increase category demand  Change customer belief or attitude  Enhance purchase actions  Encourage repeat purchases  Build customer traffic  Enhance firm image  Increase market share  Increase sales  Reinforce purchase decisions  Show Mac Vs PC
  3. 3. Marketing and IMC Marketing, as we all know is creating and retaining consumers/customers. But marketing actions must take into consideration not only customers and potential customers but also other stakeholders (Stakeholders are individuals or groups who can affect or be affected by, an organization) : employees, customers, investors, suppliers, distribution channel members, the community, the media, special interest and activist groups and government regulatory agencies. In other words, a stake holder is anyone who has a stake in the success or failure of an organization.
  4. 4. WHAT IMC MEANS We all know that equity of a brand or a company is the relationship between the customer and the brand or organization. IMC is an process for managing the customer relationship that drive brand value. More specifically, it is a cross-functional process for creating and nourish­ing profitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging data-driven, purposeful dialogue with them. To make sure the definition is clear, let's look at of its major elements:
  5. 5. 1. Cross functional process means that all of the company's major departments (and outside communication agencies) that touch the customer must way of working together in the planning and monitoring of brand relationships. 2. Creating and nourishing stakeholder relationships means attracting new and then interacting with them to find ways the company can further satisfy their wants and needs. The more satisfied customers or other stakeholders are, the more business or support they will generally give to a company. Nourishing means not only retaining customers and stakeholders but also increasing the company's percentage of their category purchases and support.
  6. 6. 3. Profitable customer relationships are specified because not all relationships are of equal value to a company. Some customers are more profitable to a company than others because of the quantity they buy, the types of products they buy, or the amount of servicing they require. 4. Strategically controlling or influencing all messages means recognizing that everything a company does sends a message ­how it makes its products, how products perform, how it sets prices, through what kinds of stores it provides its services or sells its products, and how its employees act. In other words, all aspects of the marketing mix deliver messages and all of these messages need to be either strategically controlled or influenced. To strategically control or influence brand messages means to plan and monitor them to ensure they have consistent meaning.
  7. 7. 5. Encouraging purposeful dialogue recognizes that customers are tired of intrusive telemarketing calls, junk mail, interruptive commercials, and overcommercialization of events. Customers want the ability to interact with companies and initiate a discussion when they have a need to do so, and to have this dialogue in a way and at a time convenient to them. The interactivity discussion explains how companies can make it easier for their customers and prospects to make purchases, ask questions, complain when something goes wrong, or give compliments when they are especially pleased. Communication, in other words, is at the heart of every relationship.
  8. 8. IMC objectives  To support sales increases  To encourage trial  To create awareness  To inform about a feature or benefit  To remind  To reassure  To create an image  To modify attitudes
  9. 9. An Interactive Marketing Communication Model (1 of 3) Source Company/brand, agency Message Brand messages (planned unplanned, product, service) Channel Newspaper, mail, magazine, e-mail, TV, radio, package, salesperson, customer service, Internet Receiver Target audience Response & Feedback Buy/not buy, request information, visit store, sample product, repeat Noise Clutter, message conflict and inconsistency
  10. 10. IMC Model (2 of 3)  Sender - party sending the message  Encoding - message in symbolic form  Message - word, pictures and symbols that the sender transmits  Media - the communication channel e.g radio  Decoding - receiver assigns meaning to symbols encoded by the sender
  11. 11. IMC Model (3 of 3)  Response - reaction of the receiver after being exposed to the to the message  Feedback - the part of the receiver’s response after being communicated to the sender  Noise - unplanned static or distortion during the communication process e.g. competitor action (Creature Comforts?)
  12. 12. Databases and information technology SWOT analysis, zero-based planning (MC functions) Cross-functional organization (Monitoring and evaluating brand relationship Brand messages (strategic consistency of brand positioning big creative idea) Media-mass, niche, and interactive (Intrinsic and created brand contacts) Advertising, Customer service,Direct response E-commerce events, Packaging, Personal selling, Public relation, Sales promotions, Sponsorships, Trade shows Brand relationship (Customer acquisition retention, growth) Sales, profits, and brand equity. IMC Process Model
  13. 13. Importance of IMC  From media advertising to multiple forms of communication.  From mass media to more specialized (niche) media, which are cantered on specific target audiences.  From a manufacturer-dominated market to a retailer-dominated, consumer-controlled market.  From general-focus advertising and marketing to data-based marketing.  From low agency accountability to greater agency accountability, particularly in advertising.  From traditional compensation to performance-based compensation (increased sales or benefits to the company).  From limited Internet access to 24/7 Internet availability and access to goods and services.
  14. 14. The IMC Message Typology Product Planned Service Unplanned Brand
  15. 15. • The Four Sources of Brand Messages Planned Messages Planned messages are the marketing communication messages delivered by advertising, sales promotion, personal sales, merchandising materials, press releases, events, sponsorships, packaging, and annual reports, to name a few. Show winner IMC
  16. 16. Product Messages The second type of message is the product message; these include all messages sent by a product’s design, performance, pricing, and distribution. Product Design The design of a product can send powerful messages. Operating on the principle that if it looks good, it must be good, companies in the auto industry have always maintained a staff of industrial designers to style cars. Show Honda
  17. 17. Product Performance Although product design is important, product performance is even more important when it comes to sending brand messages. As most marketers know, how well a product performs or how well a service is delivered, relative to expectations, is a major determinant of whether or not customers become repeat buyers. Show Madonna
  18. 18. Pricing and Distribution The brand messages sent by price and distribution are often not recognized for their importance in a brand’s overall communication. There’s a big perceived difference, for example, between cosmetics sold at New Market and those sold at One Stop Mall.
  19. 19. Service Messages Service messages come from contact with service representatives, receptionists, secretaries, delivery people, and all other representatives of a company. Service messages are usually personal, real-time interfaces between a company and a customer- and this is what makes them especially strong.
  20. 20. Unplanned Messages Unplanned messages include brand- or company- related news stories, gossip, rumors, actions of special interest groups, comments by the trade and by competitors, findings by government agencies or research institutions, and word of mouth. Employee Messages Employees are an important communication source, and their views are highly credible to people they know, as well as to reporters who interview them, particularly in a crisis situation.
  21. 21. News Media For most companies, the most critical unplanned messages come from the news media. Such messages often reach a relatively large audience and are seen as having especially high credibility. Disasters and Crises Another type of unplanned message handled by public relations is generated by company-related disasters. The crisis, disaster, or emergency is the most unwanted of unplanned messages, but crises are also a fact of life.
  23. 23. Mass media advertising Specialty advertising Sales promotion Marketing public relations Personal sales Events and sponsorships Customer service Trade shows Licensing Direct response Merchandising and point-of-purchase material. Packaging Traditional Marketing Communication Function
  24. 24. The Promotion Mix  Personal selling  Telemarketing  Direct mail  Trade fairs and exhibitions  Commercial television  Newspapers and magazines  Radio  Cinema  Point of sale displays  Packaging  New Screen  Social Networking
  26. 26. Employees Customers Corporate mission Business partners DatabasesCorporate culture Corporate learning
  28. 28. 1. Brand and product proliferation 2. Product commoditization 3. Decreasing brand toyalty 4. Price sensitive 5. More demand less trust. 6. Message clutter 7. Service economic 8. Rising costs and accountability Internal 1. Departmentalization 2. Expertise. 3. Hollow corporate missions 4. Misuse of new Communication technologies Trends Driving Integration External
  29. 29. Direct respon se Marketing services Event sponsorsh ip Marketing 1970s 1960s 1950s Up to 1940s Advertisin g Sales Sales promotio n Product/brand management Sales Marketin g public relations The Disintegration & Integration of Marketing (dates are approximations) 2000s Integration Focus on Brand Positioning
  30. 30. A Communication-Based Marketing Model for Managing Relationships
  31. 31. Corporate-level message sources Administration Manufacturin g/Operations Marketing Finance Human Resources Legal Marketing-level message sources Product Mix Price Mix Marketing Communication Mix Distribution Mix Marketing-level message sources Personal Sales Adver- tising Sales Promotion Public Relations Direct Marketing Pack- aging Events Stakeholders Employees Investors Financial community Government Regulators Consumers Local community Media Interest groups Customer s Distributors Suppliers competition Brand relationships Brand value Interactivity Recourse Recognition Responsiveness Respect Reinforcement Cross-Functional Brand Equity (IM) Team Cross-Functional (IM) Team
  32. 32. The Promotion Elements
  33. 33. The Promotional Message Grab ATTENTION Excite INTEREST Create DESIRE Prompt ACTION AIDA Differentiation Show Crazy Ones
  34. 34. Execution styles  Slice of life  Lifestyle  Fantasy  Mood or image  Musical  Personality symbol  Technical Expertise  Scientific Evidence  Testimonial Evidence
  35. 35. Media choice?  Marketing objectives  Definition of problem e.g falling awareness  Evaluation of different tools  choice of optimum mix of promotional methods  Integration into overall marketing communication programme
  36. 36. Questions