Integrated Marketing Communication

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Integrated Marketing Communication

Today reaching out to consumers through different possible ways in the most cost-effective manner is not only exciting and but challenging

The competition in todays marketplace is not for the customers money. The real competition is for their emotions.
Touch the hearts of the people you serve and they will be back for more.

Engage their emotion and they will become raving fans of your brand. Miss this insight and you might loose your business.

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Integrated Marketing Communication

Consumers are difficult to catch, advertising messages will have to find them wherever they can be found. In earlier days, things used to be very simple; create a product, generate a catchy name, create a nice jingle and air the commercial repeatedly on Doordarshans Chitrahaar and Mahabharat. There are quite a few brands who owe their super brand status to this formula of brand building.

But such days of one-plan-fits-all are over. Advertising is changing rapidly and there are many new challenges. Many new and wonderful ways lie ahead.
This is a very exciting time for anybody in and related to advertising.

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Integrated Marketing Communication

In market based economies, consumers rely on advertising and other forms of promotion to make their purchase decisions

The ability of advertising and other promotional methods to deliver the message to the target audience has given them a major role in the marketing programs of most organizations Many companies have started to recognize the need to integrate their various marketing communication efforts such as the Mass media advertising, Public Relations, Sales Promotion and Direct Marketing to achieve more effective marketing communication

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Traditional Approach to Marketing Communications

Point of Purchase

Publicity

Sales Promotion

Special Events Public Relations

Media Advertising

Packaging

Direct Response

Direct Marketing

Interactive Marketing

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Contemporary IMC Approach

Packaging Sales Promotion

Direct Response

Point of Purchase
Publicity

Media Advertising

Public Relations

Interactive Marketing

Direct Marketing

Special Events
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Integrated Marketing Communication

What does this mean?? IMC is a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines like Advertising, DM, PR, SP, etc. and combines these disciplines to provide clarity, consistency, and maximum communication impact (through the seamless integration of discrete messages)

Simply put it is
A planning process designed to ensure that all brand contacts received by a customer or prospects for a product, service, or organization are relevant to that person and consistent over time.
American Association of Advertising Agencies

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Integrated Marketing Communication

Other definitions
Twenty-first century marketing will mean bringing a brand to life using all possible contact points and not simply relying on old formulas. 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. In practice, the goal of IMC is to create and sustain a single look or message in all elements of a marketing campaign. IMC can be defined as a holistic approach to promote buying and selling in the new economy.

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Integrated Marketing Communication

Other definitions
Integrated Marketing Communications (IMC) is the practice of unifying all marketing communication tools, as well as all corporate and brand messages to communicate in a consistent way with stakeholder audiences. This is, by far, the best definition.
IMC, thus, goes beyond a single ad;
goes beyond a campaign; goes beyond advertising; goes beyond even coordination with other marketing tools like PR, DM etc.

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The Market Place

Complex Dynamic Monopoly virtually non-existent The Consumer - the most pampered and soughtafter thing
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Integrated Marketing Communications

Everything the consumer sees or experiences that has the brand name on it, communicates Communication goes beyond specific communication tools. The products styling, its packaging, price, the sales persons manner and dress- all communicate something to the customers. The whole marketing mix, not just promotional mix, must be orchestrated for maximum communication impact

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Types of Stakeholder Audiences

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Types of Message Sources

Planned (controlled) sources
Unplanned sources

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Planned (Controlled) Message Sources

Advertising

Public Relations
Sales Promotion Direct Marketing

Point-of-Purchase material Sponsorships Licensing

Events
Personal Selling Packaging

Website
Microsites Blogs

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Planned (Controlled) Message Sources

Message Sources often unconsidered
Price
Product Performance Customer Service

Distribution
Facilities But remember that everything that has a contact point with a company or products of the company with the products audience, is a message source.
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Planned (Controlled) Message Sources

Message Sources often unconsidered
For example here are message sources never considered: A Coca Cola truck passing by. Is it clean, well-painted? Does it make a favorable impression? Similarly, an Everest Masala truck? It might be thought to be as an expense to keep it well-painted, but if it isnt done, it communicates a negative message. The truck should be thought of as yet another opportunity to communicate with audience. A medium where there is nothing to pay for.

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Planned (Controlled) Message Sources

Message Sources often unconsidered
So, messages delivered by the aspects of the marketing mix (price, product design, distribution etc) and other contact points (the stores parking lot) may communicate important information to stakeholders that may work for or against the advertising message.

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Planned (Controlled) Message Sources

IMC includes traditional marketing communication tools such as advertising but recognizes that other areas of the marketing mix also communicate.
Price sends out a signal.
So does a products reliability. Cleanliness of the store. The truck driving past. The truck drivers uniform is also a message.

IMC planners should consider all message sources and should plan and manage these elements to convey a consistent brand or company image.

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Unplanned (uncontrolled) Message Sources

Now, lets try to name some unconventional message sources. So far, we have dealt with communication that can be classified as planned or controlled. But there is also communication about the company or product that is unplanned and which is uncontrolled.
Employee gossip & behavior Media investigations Government investigations Consumer Group investigations

Chat groups

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Developing Integrated Marketing Communication

There is a working methodology for developing

Integrated Marketing Communication

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Developing Integrated Marketing Communication

The three-step process:
Identify the core idea for the message Explode this out into various relevant communication elements

Tie it all together with appropriate media

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Developing Integrated Marketing Communication

CORE IDEA

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Developing Integrated Marketing Communication

Co-op advertising
Channel promos

PR & Events

Promotions/ Sampling

CORE IDEA

Point of Sale

Sales literature

Direct Marketing Glow Signs/ Signage

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Developing Integrated Marketing Communication

Mass Media
Co-op advertising Channel promos

PR & Events

Promotions/ Sampling

CORE IDEA

Point of Sale

Sales literature

Glow Signs/ Signage

Direct Marketing

Mass Media
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Recent example Reliance Power IPO

The kind of hype that was created for the Reliance Power IPO was something that has not been seen in recent times and helped in a big way towards the oversubscription of the public issue. The challenge was to market the IPO like a consumer product and penetrate into the mind of each potential investor. And to achieve this Reliance ADAG utilized all its possible media products and tools to advertise extensively for the Reliance Power IPO.

Leveraging various products of the group was a very conscious decision.

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Recent example Reliance Power IPO

Reliance ADAG media activation plan included TVCs shown in 62 Adlabs theatres across the country, ads on ADAG radio channel, BIG FM, across 39 cities, leaflets alongwith bills at Reliance Energy Customer Care Centres, and leveraging through 250 Reliance World, 1300 Reliance Express and 2000 Reliance money outlets. Also the caller back ring tone (CRBT) activated across 35-40 million subscribers of Reliance Mobile World, by default. No matter which mobile operators services one used, the moment a Reliance subscriber was called, the jingle Power On. India On was heard. Keeping the big picture of Power On. India On in the mind, the campaign went the beyond the 30-sec TV spot
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Reasons for the growing importance of IMC

Due to the shift from mass media advertising to other forms of promotion, particularly consumer and trade oriented sales promotions Because of the shift in the market place power from the manufacturers to the retailers.

Due to the movement away from relying only on advertising focused approach with emphasis on mass media
Due to the major role it plays in the process of developing and sustaining brand identity and brand equity.

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Reasons for the growing importance of IMC

There have been shifts in the advertising and media industry that have caused IMC to develop into a primary strategy for most advertisers From media advertising to multiple forms of communication (including promotions, product placements, mailers...)

From mass media to more specialized media, which are centered around specific target audiences
From a manufacturer-dominated market to a market where control has transferred into consumer's hands

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Reasons for the growing importance of IMC

From general-focus advertising and marketing to data-based marketing. From traditional compensation to performance -based compensation. This encourages people to do better because they are rewarded for the increase in sales or benefits they cause to the company From limited Internet access to widespread Internet availability. This means that people can not only have access to what they want 24/7 but that advertisers can also target different people 24 hours a day.

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Reasons for the growing importance of IMC

From low agency accountability to greater agency accountability, IMC makes for synergy the whole is greater than the sum of the parts. IMC works for both large & small cos. Small business can start an Integrated Marketing Communication plan on a small budget using a website and email. Large corporation can start an Integrated Marketing Communication plan on a large budget using print, mail order, radio, TV plus many other online ad campaigns.

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Reasons for the growing importance of IMC

Brand identity is combination of logo, symbol, design packaging and performance of product that comes into the mind when consumers think brand Consumers have contact with or receive information about brand in stores through POS materials. Marketers recognize in the modern world of marketing there are many different opportunities and methods of contacting current and prospective customers to provide information about the company and brands as well as build brand image. The challenge is to understand how to use various IMC tools to make such contacts and deliver the branding message efficiently and effectively
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Integrated Marketing Communications (contd.)

The Components or Tools
Advertising Direct Marketing Interactive/Internet Sales Promotion Public Relations Personal Selling
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Advertising
There are several reasons why advertising is an important part of the marketers promotional mixes. Firstly, it is very cost effective method to communicate to a large audience.

Secondly, it helps create brand image and symbolic appeal for the brand which is a very important for companies selling product and/or services that are difficult to differentiate on functional attributes.

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Classification of Advertising
Advertising in the consumer market
National Advertising Retail/Local Advertising Brand Advertising Primary/Secondary demand advertising Political Advertising Directory Advertising Direct-Response Advertising Public Service Advertising Interactive Advertising

Advertising to Business & Professional markets

- Business to Business Advertising - Professional Advertising - Trade Advertising
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Various media

Their Armour and its chinks.

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Television

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Television
Advantages
Mass Coverage High reach (All India & Regional)

Disadvantages
Fragmentation - To many channels City/geographical High Costs Clutter Fleeting Exposure/Short message life High Production costs Still TV penetration an issue

Audio Visual ( Image and effective

communication)

High Impact Medium Imagery Development of niche channels (suited to

sharp focusing)

Goes beyond the literate Good lead medium

FMCGs - Soft Drinks, Soaps, Foods, Durables,

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Press

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Advantages
Fragmented/Flexible
Demographic Psychographic Geographical

Newspapers
Disadvantages
Not National High Costs on a national platform

Static medium Less effective message delivery

Clutter on a page Poor reproduction quality

High coverage Credibility Higher involvement More Details possible

Product info Dealers

Can be used for coupons Short lead time for placing ads

Ads can be placed in interest sections

Timely (current ads) Buy NOW!! Durables, Regional players, Contests, Promotions, Longer Shelf lifephase, Local Advertisers (Ent.& Retail) Launch Visual medium
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Magazines

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Magazines
Advantages
Segmentation Potential Quality Reproduction High Information Content Longevity in terms of shelf life Multiple reader Innovation possible

Disadvantages
Long lead time for ad placements Visual only Lack of Flexibility

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Radio

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Radio
Advantages
Regional/local flavor Local Coverage Low reach

Disadvantages

Cost effective
High frequency Flexible Low production cost Enters your mind space Captive (for what its worth)

Only Audio
Lower attention than television Non standardized rate card

Evaluation ?
Fleeting exposure

Retail, Entertainment, Contest, Promotions, Reminder

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Outdoor

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Outdoor
Advantages
Flexibility High repeat exposure

Disadvantages
Short term exposure

Static
Creative limitations Local restrictions

Relatively less cluttered

Good reminder medium Regional focus Location/Area specific Easily noticed Sharp focus

Evaluation?

All categories- Serves as a reminder. Foods, Durables, etc.

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Direct Marketing
Direct Marketing is much more than direct mail and mail order catalog. It includes database management, CRM, Direct selling, telemarketing, direct response ads through direct marketing, internet and broadcast and print media The major tool in direct marketing is direct response advertising where the product is prompted through advertisement that encourages the consumer to purchase directly from the manufacturers Direct marketing plays an important role in IMC program of consumer product companies and business to business marketers
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Direct Marketing
Direct Marketing involves telemarketing to call consumers directly and attempts to sell to them the product directly

Direct marketing also uses CRM to mine the existing customers

Direct marketing techniques are also used to distribute product samples or target users of a competing brand Direct mailers are also sent across to consumers to informs consumers about new product launches or product improvements
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Direct Mail
Advantages
Sharp focused lowest wastage Involving Reader controls exposure Measurement Sharper message development High information content Lower Cost (on a limited scale) Repeat exposure opportunities

Disadvantages
Low response Consumer knows a direct mail and thus might ignore Does not carry image halo of mass media High cost per contact Clutter

Innovation possible (Audio visual etc)

Data Base Controlled Identified target group.Banks, CCs, Financial Products, Retail ..The list widens everyday!
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Direct Contact
Advantages
Involving Dynamic Touch and feel opportunity Experience the brand Sharp focused Creates WOM Brings the consumer closer to the brand Innovative Memorability

Disadvantages
Costs

Reach
Time

Services, Eureka Forbes, Financial Services

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Events
Advantages
Involving Dynamic Touch and feel opportunity Experience the brand Sharp focused

Disadvantages
Costs Reach

Creates WOM Publicity

Brings the consumer closer to the brand Innovative Memorability

Reach in conjunction with PR / advertising

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Interactive/Internet Marketing
We are experiencing the most dynamic and revolutionary changes of any era in the history of marketing, advertising and promotion These changes are being driven by advances in technology and developments that have led to dramatic growth of communication through interactive media particularly Internet. Interactive media allows back and forth flow of information Interactive medium that is having the greatest impact is the Internet especially through world wide web

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Interactive/Internet Marketing
Internet is changing the ways companies design and implements their entire business and marketing strategies and is also affecting their market communication program. Many or most of the companies have developed websites and use it to promote their products and services by providing information to consumers as well as interact with them Internet is a medium that can be used to execute all the elements of promotional mix

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Interactive/Internet Marketing
In addition to advertising on the web, marketers use it for sales promotion incentives like coupons, contests, etc. and also use it to conduct direct marketing, personal selling, PR activities more effectively and efficiently Companies that are using internet effectively are integrating their web strategies with other aspects of the IMC program.

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Interactive/Internet Marketing
An example of this is Nike who used Internet effectively to introduce Air Cross Trainer II shoes. The TVC showed Marion Jones in dramatic situations and ended with words Continue at whatever.nike.com. When viewers visited the site they could select from 6 or 7 different endings to the TVC, get information on sports and purchase the shoes

The Internet communication was very effective in driving traffic to both Nikes main website and whatever.nike.com created specifically for the ad. Needless to say it was very effective and helped make AC Trainer II shoes best selling shoes for that season.

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Internet
Advantages
Interactivity Costs CRM tool Ability to establish a relationship Involvement/ Info. Dissemination Works well in conjunction with other mediums Sharp focused targeting based on interests. Demos and psychos User attention and involvement Flexible message platform

Disadvantages
No Standardized Rates Not yet mass reach Few valid measurement techniques Evaluation credibility in doubt Limited reach Websnarl (crowded acess)

The youth, and young office goers! Contests, Promotions across categories.
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Sales Promotion
Sales Promotion is defined as those market activities that provide extra value or incentives to sales force, distributors or to the ultimate consumers and can stimulate immediate sales Consumer oriented sales promotion targeted to ultimate users of product or service and includes coupons, premium rebates, contest, etc. Trade oriented sales promotion is targeted towards marketing intermediaries such as wholesalers, distributors and retailers
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Sales Promotion
Promotional and merchandising allowances, price deals, sales contest & trade shows, dealer conferences are used to encourage trade to stock and promote products Promotion and Sales Promotion are two terms and are different. Promotion is an element of marketing by which firms communicate with their customers, it includes all the promotional mix elements.

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Publicity
Publicity refers to non-personal communication regarding organizations, products or services that are not directly paid for or run under identified sponsorship It usually comes in the form of news story, editorial or announcement about organization and/or its products and services. Like advertising, publicity involves non-personal communication to a mass audience but unlike advertising, publicity is not directly paid for by the company.

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Publicity
An advantage of Publicity over the other forms of promotions is its credibility. Consumers generally tend to perceive Publicity as unbiased. Publicity is not always under the control of an organization and is sometimes unfavorable. Negative stories about the company and/or its products can be very damaging. Recent examples being that of Coke. Pepsi, Cadburys etc. The Hindi film industry uses it very effectively

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Public Relations
There is a distinction between Publicity and Public Relations. When an organization systematically plans and distributes information in an attempt to control and mange its image and the nature of the Publicity it receives, then it is engaging in a function known as Public Relations.

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Public Relations
Public Relations is defined as the management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest and executes a program of action to earn public understanding and acceptance

Public Relations generally have a broader objective than Publicity as its purpose is to maintain a positive image of the company among its various publics.

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Public Relations
Advantages
Credible 3rd party Off guard more effective than sales communication Dramatization possibility Free

Disadvantages
Message control Not timely No guarantees of publishing

High Involvement and lots of

information possible Reader picks to read about you

Charities, Clubs, Corporates

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Personal Selling
Personal Selling is a form of person to person communication in which a seller attempts to assist and /or persuade prospective buyers to purchase the companys product or service or to act on an idea. Unlike Advertising, Personal Selling involves direct contact between buyers and seller either face to face or through some form of telecommunication.

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Other, New, Innovative and Emerging Media/ disciplines

Point of Sale In film/serial product placements

Flyers
Stickers W-O-M

Tie ups with movies

Multiplexes Carrybags/Hangtags

Balloons
Bulk SMS MMS Rural Melas/festivals

Celebrity endorsement
Trains and Buses Lifts

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Intersecting your consumer

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Intersecting the consumer

The average consumer always being on the move, a similar logic applies to every brand chasing him, vying for his attention and cornering his sustained loyalty. So does the brand follow the consumer everywhere? If it does, it costs a lot of money. From the consumers point of view, a brand following him everywhere is a;most akin to stalking. In these recession times and with fragmentation of media a reality, every advertiser wants to rationalise to every rupee spent

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Intersecting the consumer

Is there anything that helps the advertiser to know which is the best touchpoint to bet their monies on. Contact Point Management. A study conducted in over 8 countries with 80,000 respondents across 12 product categories revealed that there are 36 valuable contact points that could be used for a host of product categories.

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Intersecting your customer

Consumer pathways
Wake up Gym Drive to work Breakfast Switch on PC Check email Tea Break Client lunch Agency meeting Drive home

Drive to meeting

Chat with son Watch TV And so to bed

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Go shopping

For a bank
TV news
ATM

Screen saver

Cheque credit via SMS

Debit/credit card

Direct mailer

Wake up Gym Drive to work

Breakfast

Drive to meeting

Client lunch Agency meeting Drive home

Switch on PC
Check email Tea Break

Chat with son

Watch TV
And so to bed

Go shopping FM, Signage eNewsletter FM, Signage

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TV news

For a soft drink

TV ad
Dispenser

Bottle on table

FM, Signage

POS on table

Direct mailer re event

Wake up Gym Drive to work

Breakfast

Drive to meeting

Client lunch Agency meeting Drive home

Switch on PC
Check email Tea Break

Chat with son

Watch TV
And so to bed

Dispenser FM, Signage eNewsletter FM, Signage

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Go shopping TV ad

The Brand Experience Wheel

Product& presentations Visual merchandising Product performance Contests & promos Help desks

Signage

The Brand

Member services Loyalty Program Events & contacts

Retail points

Sponsorships

Partnerships

Advertising

After marketing

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The output
A multi-point, 3600 campaign which can deliver the desired communication and provide a strong, consistent brand experience

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Rajesh Nambiar +919833416604

namrajesh@gmail.com
facebook.com/nambiarrajesh @2rajeshnambiar

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