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Principles of Marketing

Chapter 14

Integrated Marketing
Communications

Redwan Salam
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Chapter Content
Marketing Communication
Integrated Marketing Communication
(IMC)
Information Requirement of Potential
Buyers
Nature of the Offering
Target Market Characteristics
Communications Process
Types of Communication Channel
Setting Total Promotion Budget and Mix
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The Marketing Communication


Marketing Communication is the
process by which information about an
organization
and
its
offerings
is
disseminated to selected markets.
It is also called Promotional Mix that
consists of the specific blend of
advertising, sales promotion, public
relations, personal selling, and directmarketing tools that the company uses
to communicate with their customers and
build customer relationships.
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The Marketing Communication


Marketing
Communication
is
necessary to inform buyers of the
following:
The availability of an offering both for
the new and existing products
The unique features, benefits and
brand information of the offering
The where and how of obtaining and
using the offering

Integrated Marketing
Communications (IMC)

Integrated Marketing Communication


(IMC) is the concept under which a
company carefully integrates and
coordinates its many communication
channels (more than one) to deliver a
clear, consistent, and convincing message
about the organization and its products.

Integrated
Communications (IMC)

Marketing

Advertisement is any paid form of nonpersonal communication about an organization,


goods, services or idea by an identified
sponsor.
Product Advertisement: Advertisement
that focus on selling a good or service. The
forms include Informational, Competitive and
Reminder advertisement.
Institutional
Advertisement:
Advertisement designed to build goodwill or
an image for an organization, rather than
promoting a specific good or service.
Major Advertisement sources:
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Print Media

Integrated
Communications (IMC)

Marketing

Sales promotion is short-term incentives to


encourage the purchase or sale of a
product/service for a certain time, place or
event depending on company objective.
Sales promotion is more influential tool
comparing to advertisement, and company
offers sales promotion to achieve a certain
sales goal.
Where Advertisement says buy our product,
Sales promotion says buy it now.
Consumer
promotion:
Free
sample/Coupons, Gift with purchase, POP
promotion (Point of Purchase), Contest &
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Games, Price premium, Fairs & Trade Shows

Integrated
Communications (IMC)

Marketing

Public Relations involves building good


relationships with the companys various publics
(stakeholders) by obtaining favorable publicity,
building up a good corporate image, and
handling or heading off unfavorable rumors,
stories & events.
Through public relations activities, company
tries to enhance the positive aspects and
minimize negative factors related to products
and organization.
Major Public Relation tools:
Press relations (Meet the press)
Publications and Company web pages
Internal or employee communication
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Integrated
Communications (IMC)

Marketing

Personal selling is the two-way flow of


communication between a buyer and a seller,
designed to influence a persons or group's
purchase decision.
Major personal selling tools are Door to door
visiting, Sales presentations, Participation in
exhibition and trade shows etc.
With personal selling, the buyer feels a
greater need to listen and respond even if it is
No, thank You.
Direct marketing involves making direct
connections with targeted consumers to
encourage them to place an order, request
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more information, or visit a store.

Integrated Marketing
Communications (IMC)
[Promotion Mix Strategies]

PUSH strategy

Producer

PULL strategy

Retailers and
Wholesalers

Retailers and
Wholesalers

Consumers

Consumers
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IMC Promotion Mix Strategies


Push strategy is directing the
promotional mix to channel members to
encourage them to order, stock and sale
more products.
Used for business to business (B2B)
Trade partners and channel members get
the benefits of this strategy
Pull strategy is directing the promotional
mix to the ultimate consumers to
encourage them to ask the retailer for the
products.
Used for business to consumer (B2C)
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Setting the IMC Mix


Advertising
Personal
Selling
Sales
Promotion
Public
Relations
Direct
Marketing

Reach Many Buyers, Repeat


Message Many Times,
Impersonal, Expensive
Personal Interaction,
Relationship Building, Most
Expensive Promo Tool
Wide Assortment of Tools,
Rewards Quick Response,
Efforts Short-Lived
Very Believable, Dramatize a
Company or Product,
Underutilized
Nonpublic, Immediate,
Customized, Interactive
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Setting the IMC Mix ATL, BTL,


TTL
Above The Line (ATL)
ATL communications use media that are
broadcast and published to mass
audiences.
ATL communications can be used to
either build brand awareness or drive
sales
through
specific
offers
(promotions).
Below
The Line (BTL)
ATL promotions
are also difficult to
BTL
communication
use media that are
measure
well.
more niche focused
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Setting the IMC Mix ATL, BTL,


TTL
Below The Line (BTL)
BTL communications can be used to either
build brand awareness or drive sales through
specific offers (promotions).
BTL interaction gives the marketer the ability
to tailor their messaging in a more personal
manner to the audience.
BTL promotions are highly measurable, giving
marketers valuable insights into their return
on investment. These insights can then be
used to inform the next BTL communication to
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the audience and tailor the messaging
based

Setting the IMC Mix ATL, BTL,


TTL
Through The Line (TTL)
"Through the line" refers to an
advertising strategy involving both above
and below the line communications.
This strategic approach allows brands to
engage with a customer at multiple
points (for example, the customer will
see the television commercial, hear the
radio advert and be handed a flyer on
the street corner).
This
enables
an
integrated
communications
approach
where
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Setting the IMC Mix ATL, BTL,


TTL

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Developing an IMC Mix


Information Requirement of Potential
Buyers
Analyze the relative value of the
communication tools used at various
stages in the purchase-decision process.
Advertising creates awareness for the
product.
Personal selling (Sales people) provide
in-depth information by answering
frequently asking questions of the
customers.
Sales promotion like brochures, and
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Developing an IMC Mix


Nature of the Offering
Advertising is useful when an offering is
not complex, is frequently purchased, is
relatively inexpensive, or has benefits
that differentiate it from competitors and
obviously to build brand image.
Personal Selling is required when a
product is relatively expensive or its
benefits are not readily apparent.
Sales Promotion lends itself to nearly
every offering type because of the wide
variety of forms it can assume.
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Developing an IMC Mix


Target Market Characteristics
Advertising
is
effective
for
communicating an offering to a mass
market that is geographically scattered.
Personal Selling is useful when a small
number of buyers live in close proximity
and purchase large quantities of product.
Direct
Marketing
(e.g.
Internet,
Telephone) can also be used to reach a
geographically dispersed target market.
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Communications Process

Elements of Communication Process

Sender

Encodi
ng

Message
Media

Decodi
ng

Noise
Feedba
ck
Senders
Field of

Respo
nse
Receivers
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Field

Receiv
er

Communications Process
Sender

is the party sending


message to another party.
Example:
Marketer/seller
Banglalink.

the
like

Encoding is the process of putting the


thoughts or information into a symbolic
form. Add agency assembles words and
illustrations into an advertisement that
will convey the intended message.
Example: Bitopi, Asiatic, are creating
commercials for their clients like, Robi
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Communications Process
Message is the set of language,
information or symbols the sender
transmits.
Example: Product or promotional
messages from Banglalink.
Media is the communications channels
through which the message moves from
sender to receiver.
Example: Television channel, Radio
station, Press, etc.
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Communications Process
Decoding is the process by which the
receiver assigns or converts a meaning to
the symbolized message sent by the
marketers. It depends on individual
customers
perceptions
and
understanding process.
Receiver is the party receiving the
messages sent by another party.
Example:
Individual/business
customers.
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Communications Process
Response is the reaction of the receiver
after being exposed to the message
(change of attitudes of the customers).
Feedback is part of the receivers
response communicated back to sender.
Noise is the unplanned barriers /
distortion during the communication
process, which results in the receivers
getting a different message than the one
the sender sent.
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Types of Communication Channel


Personal communication is the channel
through which two or more people
communicate directly with each other,
including face to face, over telephone or
through the mail etc.
Some personal communication channel
are controlled directly by the company
like sales personnel (Direct sales force).
There are some Personal communication
that are not directly controlled by the
company, Word-of-mouth influence.
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Types of Communication Channel


Non-personal communication channel
are the media that carry messages
without personal contact or feedback.
They include major media (Newspaper,
Television,
Radio,
Billboard),
atmospheres (Logistics or Physical
evidences), and events (Sponsorships,
public relations)that affect the buyers
directly.

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Setting
the
Total
Budget and Mix
How does a company
promotion budget?

Promotion
decide

Affordable budget method


Percentage-of-sales method
Competitive-parity method
Objective-and-task method

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on

its

Setting
the
Total
Budget and Mix

Promotion

Affordable Budget method refers to


setting the promotional budget at the level
management thinks the company can
afford.
Small business often use this method,
they start with total revenue, deduct
operating expense and capital outlays
and then devote some portion of
remaining funds to advertising and
promotion.
Company allocate a certain promotional
budget from their operating profit.
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Percentage-of-Sales method refers to


setting the promotional budget at a certain
percentage of previous year sales or
forecasted sales or as a percentage of the unit
sales price.
This approach is mostly used by durablegoods manufacturers (e.g. Home appliances
Competitive-Parity
method refers to setting
and
electronics marketers).
the
promotional
budget
based
on
competitors spending for communication.
They collect information about competitors
advertising or get industry estimate and set
their budget.
This approach is used by the companies
where there is strong competition like Fast
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Objective-and-Task method refers to


setting promotional budget by:
Determining the specific promotional
objectives.
Identifying the tasks that must be
performed to achieve these objectives
and
Estimating the cost of performing these
tasks.
Creating awareness, giving reminder or
increasing sales can be the possible
END
objectives for communication.
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CHAPTER 14
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