Professional Documents
Culture Documents
An In-Depth Study
PROJECT BY:
Sagar Gala
TYBMS (SEM V), 2008-2009
Project Co-ordinator
A ROADMAP TO THE REPORT
PART I
Introduction……………………………………………………………………
What Is Integrated Marketing Communication ……………………….
Components of IMC……………………….…………………………………
Factors contributing to IMC's rising prominence …………………….
Heart Of IMC – 5 Power Concepts ……………………….……………….
Levels of Integration …………………….…………………….…………….
Consumer Psyche and Information Processing ……………………….
CASE I
How the Entertainment Industry Capitalizes on IMC (IPL) ………
BIBLIOGRAPHY
PART I
I M C
AN INTRODUCTION
Introduction
In the marketplace of the 21st century ... the driving force is not a
company with products to sell but customers controlling what, where,
and how they want to buy. Thanks to the Internet, 24-hour toll-free
phone numbers, credit cards, and express delivery services,
consumers are accessing information on demand and seeking out the
products and services that interest them.
Gone are the days when a company determined where, when, and how
it sells its product. This new approach not only changes the way we
make our purchasing decisions, it also revolutionizes how companies
market to their customers. For most companies to win, they must
replace outdated mass-marketing tactics with a targeted, customer-
focused approach.
Definition of IMC:
As per American Association of Advertising Agencies
'The concept of marketing communications planning that recognizes
the added value of a comprehensive plan that evaluates the strategic
role of a variety of communication disciplines - for example, general
advertising, direct response, sales promotion, and public relations -
and combines these disciplines to provide clarity, consistency and
maximum communications impact'.
Thus the first aspect creates awareness and the second aspect creates
and maintains loyalty.
“Integrated marketing unifies the core purpose, key goals and
strategies and company-wide processes to create congruent messages
and sufficient dialog with all stakeholder groups.”
While definitions differ, the practice of IMC involves the same success
factors and helps organizations build and deepen relationships with
their many stakeholders. The following conditions should be
considered "necessary," but not sufficient conditions of IMC practice:
• Special events
There are TWO CRITICAL FACTORS that have the most influence on the
effectiveness of an Integrated Marketing campaign.
Not PRICE, but COST: Understand the consumer's cost to satisfy the
want or need. The product price may be only one part of the
consumer's cost structure. Often it's the cost of time to drive
somewhere, the cost of conscience of what you eat, and the cost of
guilt for not treating the kids.
Not PLACE, but CONVENIENCE: As above, turn the standard logic
around. Think convenience of the buying experience and then
relate that to a delivery mechanism. Consider all possible
definitions of "convenience" as it relates to satisfying the
consumer's wants and needs. Convenience may include aspects
of the physical or virtual location, access ease, transaction
service time and hours of availability.
In keeping with the above trends, there are Five power concepts
that go in IMC and make the communications efficient and effective.
There exist various levels at which such integration can take place. The
following table details each of such stages.
LEVEL I
Tactical Co-ordination
To create ‘one sight, one
sound’ by consolidating
communications planning.
Often leads to attempts at
cross-functionality, where
teams of specialists from
different areas of expertise
are formed to increase
synergy.
LEVEL II
Redefining the Scope of Marketing Rather than considering
Communications
Communications as an
outbound activity, the firm
looks at all points at which
the consumer and the brand
are in contact. Most
important result of this level
of integration is inclusion of
employees as both target for
and proliferates of marketing
communications.
LEVEL III
Application of IT
The key ingredient here is
the use of databases to
capture individual
transactions. This enables
the firm to market to groups
of individuals rather than the
average customer at the
middle of the segment.
LEVEL IV
CASE STUDY
Indian Premier League
Add some glamour in the form of Cinema. It has been the opium of the
Indian masses. The arrival of television has not diminished its power.
For movie, entertainment or news channels, cinema is the biggest
source of TRPs. Whether it is by doing world premieres of the latest
'flop busters or 'block busters, hosting award shows or just covering
the latest gossip about the stars and their lives, cinema feeds into
home entertainment just like cricket.
Shake it with some Celebration. Indians need an excuse to celebrate,
to enjoy. Our respect for all faiths gives the average Indian a festival to
celebrate almost everyday. Each has its own rituals of the community
coming together to dance, sing and create general cacophony,
unmindful of environment pollution and civic sense.
Cricket has been a team game - built on players knowing each other
and playing alongside each other at the nets, at domestic level and
national level. The IPL changes this and brings the corporate style of
teamwork into play. It expects professionals to come together for a
specific project. It hinges on individual prowess adding up to a winning
formula. With much cricket being played anyway, foreign players are
no longer aliens to any team. Simultaneously, the mixed-cultures team
could unconsciously foster greater harmony among different nations.
Will this spell the end of other forms of cricket: five-day cricket or one-
day internationals? While it may seem so, the truth is every product
has its place in this world if properly nurtured. Fast-food restaurants
and take-away joints didn't kill sit-down restaurants. There are
moments for quick eats and other occasions when food is ceremonial
and a celebration. If one-day internationals took cricket to larger
masses through television, the IPL could make cricket truly global. City
pride is universal. So, no longer do cities in non-cricketing countries
need to have local talent to field a team. It's just a case of buying the
best talent!
The 80s and 90s were eras when cricketers became bigger than the
game. While star power could be the initial draw, the attempt of
marketing efforts is to draw loyalty from stars to teams. Hopefully, in
the future stars would want to play for a team rather than the other
way round. Thus, the IPL could bring focus back to the game!
Finally, on a jingoistic note, it could be an Indian "brand" export to the
world. Without doubt, Lalit Modi's experiment and the business houses
support it has received needs to be lauded.
Success Factors
PROCESS OF IMC
Characteristics of an IMC approach
The agency on the other hand will help research the market, suggest
creative strategies, and produce IMC materials. Quite a few times the
agency does not have all the internal expertise necessary to develop
and manage every marketing tool. Often the agency is an expert with
the development & Placement of mass media advertising, and hence is
often criticized for their tendency to push mass media as the best form
of communication. When the marketers want other communication
options, they often hence turn to External facilitators to get the
expertise they are looking for. The hierarchy in this case is as shown
on the next page.
Once the specialist agencies come into the picture, co-ordination and
integration of a marketing communications program becomes much
more complex. These various agencies view each other as competitors
for the client’s dollars and will most likely champion their particular
specialty. Thus instead of ending up in coordination and integration, it
created a situation characterized by conflict and disintegration.
Marketing Organization
Marketing plan
Goals and objectives
Customer/ prospect databases
Advertising Agency
Research
Creative strategies
Production
Message placement
Specialized marketing
communications
organizations
Media organizations
Event management firms
Web site designers
Sales promotion agencies
Direct marketing agencies
Public relations firms
Sales Direct
Mass- media Event Internet
promotion marketing Publicity
Advertising participation advertising
Customer
Model for Planning IMC
There are many different models that guide the process of planning an
IMC campaign. One such model being discussed is the ‘Strategic
Planning Triangle’ –
Prospect Definition
proposed by advertising
researchers Esther Thorson
and Jeri Moore in their book
‘Integrated Communication:
Synergy of Persuasive
Voices’. Persuasion
Brand’s Value
Tools
Proposition
evaluation
As shown alongside, the
apexes of the planning Strategic Planning Triangle
Collaboration between the agency and the client is the key to ensure
that the approval process proceeds in a timely fashion.
Innovation has been the key to the growth of the Godrej group. It is
this spirit that has built Godrej and carried it for over a hundred years.
Existing in diverse industries ranging from cupboards to soaps, hair
dyes to edible oils, and packaged foods to refrigerators, the group in
recent years has forged several partnerships with international giants
like General Electric, Pillsbury, Fiskars and Sara Lee, bringing Godrej
membership in the Global village that will carry it forward into the 21st
century.
Godrej has always been a crusader for a better world with programs
that benefit endangered forests, wild life and mangroves. Every year
the Pirojsha Godrej Foundation dedicates funds towards promoting
education, housing, social upliftment, conservation, population
management and relief of natural calamities.
GCPL – An Overview
With a turnover of Rs. 500 crore, the company employs 950 persons
and has two modern manufacturing facilities at Malanpur (M.P.), and
Silvassa (U.T.). GCPL is India's largest marketer of Hair Colorants and
Liquid Detergents and the third largest marketer of toilet soaps.
GCPL is expected to have ROCE and RONW ratios comparable with the
best FMCG companies in India. It is a professionally managed company
under the leadership of Mr. Adi B. Godrej, as the Chairman and
Managing Director.
Godrej Consumer products for all its brands are implementing the
integrated marketing process across product categories. This is
because with a slate of launches and relaunches, it is very essential for
the brands to not lose focus. Besides concentration of communication
on a central theme, with ‘one look, one voice’ enhances the recall and
Impact of communication on the consumers. Godrej also believes that
use of Integrated Marketing Communication helps the brands to get a
noticeable ‘Share of Voice’ and ‘Share of Mind’.
Mission - ‘To work towards ensuring that the brand maintains it’s
market creator and leader status’
Product - FAIRGLOW is a high quality toilet soap with 76% TFM (total
fatty matter) and an excellent floral perfume. It is packaged in a
polyester wrapper with attractive graphics. FAIRGLOW is available all
across India and has an introductory price offer of Rs. 10.00 for a 75
gm pack.
Formula - FAIRGLOW has a unique Bio-extract ‘Natural Oxy-G’ that is of
vegetable origin and absolutely safe. Its natural action involves
reduction of the black melanin in the skin without changing the skin’s
natural balance. The Natural Oxy-G also helps remove blemishes to
give the user a smooth and glowing complexion. FAIRGLOW therefore,
provides fairness for the face and the whole body without any extra
effort. In sum, it gives the twin advantages of a clean and fresh bath
while also providing the fairness benefit.
The stage of the Product Life Cycle in which the brand operates
will also be a factor in the formation of the communication mix.
And of course the Skill and the Experience of the Brand manager
also is important in the process of strategizing the
communications mix as that often happens to be a source of
innovations and experimentation.
Communication
(Creatives)
Execution
Strategy
Agency of Record -
Madison Specialists – Events etc.
Event
Creatives
Two-way synergistic
relationship
The Individual brands
Godrej Brand (FairGlow, Cinthol etc.)
On the other hand, with newer brands emerging from Godrej, the
Godrej brand too earns a younger, vibrant and versatile image.
Each brand manager ensures that his brand philosophy lies well within
or is related to the overall Godrej philosophy of commitment to Quality
and well-being of the consumer. The senior management (Board of
directors et al) ensure that the vision of the company translates into
brands that are diverse and yet converge synergistically under the
Godrej Brand.
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PART III
The benefits of auditing the organization, and the processes that are
responsible for acquiring, retaining, and growing customer
relationships, can uncover major inefficiencies and integration gaps.
These may include:
BARRIERS TO IMPLEMENTATION
IMC is indeed enjoying a growth in awareness, particularly among
larger companies. Nearly three fourths of the companies surveyed
report using a database to better target their customers- an essential
part of implementing IMC; but only 30 percent say they are doing
extensive profiling and segmenting of customer buying habits using a
database. This suggests that many companies have not yet reached a
full implementation of IMC.
Ten years ago, the business world was not quite ready to embrace the
principles of IMC. But as the environment developed over the past
decade, IMC grew in stature because it makes good business sense,
especially in today's fast-moving economy
In a business environment where all four mega trends effect the way
we go to market, following the IMC principles of knowing your
customers, building your brand and measuring effectiveness will put
companies one step ahead of the competition.
For companies that currently embrace IMC, the new economy mega
trends translate into opportunities. Placing the customer and other key
stakeholders at the center of your business strategy has never been
more important. The highly competitive marketplace has made
relationship building paramount in the quest for success. For
companies who do not see IMC as vital, it is time to reconsider.