Integrated Marketing Communication

Session 2
Siddiq Musaliar

Touch Points: Control vs. Impact

IMC Planning Model

Review of marketing plan
Promotional program situation analysis
Analysis of the communications process

Budget determination
Develop integrated marketing communications programs
Advertising

Sales
promotion

PR/
publicity

Personal
selling

Direct
marketing

Internet/
interactive

Advertising
objectives

Sales
promotion
objectives

PR/
publicity
objectives

Personal
selling
objectives

Direct
marketing
objectives

Internet/
interactive
objectives

Message
strategy

Sales
promotion
strategy

PR/
publicity
strategy

Personal
selling
strategy

Direct
marketing
strategy

Internet/
interactive
strategy

Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program

Analysis of Communications Process

Communication decisions
Source and message
Communication channels
Media mix
Costs
Marketing goals
Communication objectives

Budget Determination

What will the promotional program cost?

How will the money be allocated?

Developing the IMC Program

IMC Strategies

Creative

Media

Marketing & Promotions Process Model

Marketing Strategy and Analysis

Strategic Marketing Plan

Opportunity
Analysis

Competitive
Analysis

Target
Market
Selection

The Target Marketing Process

Identify markets with unfulfilled needs

Determine market segmentation

Select a market to target

Position through marketing strategies

Target Market Identification

Isolate Consumers With Similar

Social class

Lifestyles
Economic status

Age

Geographic
location

Marital status

Needs

Market Segmentation

Dividing a market into distinct groups

With common needs
Who respond similarly to a marketing
situation

Bases for Market Segmentation

Demographic

Geographic

Socioeconomic

Gender

Region

Income

Age

City size

Education

Race

Metropolitan area

Occupation

Life stage

Density

Birth era
Household size

Psychographic

Residence tenure

Personality

Marital status

Values/Lifestyle

Demographic Segmentation Ad

Benefit Segmentation Ad

PRIZM Social Groups

HIGH

LOW

SEC segmentation

Selecting a Target Market

Determine how many

segments to enter

Determine which segments

have the greatest potential

Segments

Undifferentiated

Concentrated

Differentiated

Market Positioning

Fitting the product or service to one or more

segments of the broad market in such a
way as to set it apart from competition

Positioning Strategies
Attributes and Benefits
Price/Quality
Use/Application
Product Class
Product Users
Competitors
Cultural Symbols

Product use

Product class

Positioning by Cultural Symbol

The Marketing Planning Program

Product
Decisions

Promotional
Strategy

Distribution
Channels

Price
Decisions

Branding Goals

Build &
maintain
brand
awareness
and interest

Develop &
enhance
attitudes
toward the
company,
product, or
service

Build &
foster
relationships
between the
consumer
and the
brand

Branding
Brand Identity
vs.
Brand Equity

Branding and Packaging Decisions

BRANDING

Brand
name
communicates
attributes
and
meaning

Advertising
creates
and
maintains
brand
equity

PACKAGING

Has become
increasingly
important

Often the
customers
first
exposure
to product

Packaging Creates Image

Pricing Decisions

Factors the firm

must consider

What consumers
give up to buy a
product or service

Costs

Time

Demand
Competition
Perceived value

Mental activity
Behavioral effort

Relating Price to Ads and Promotions

Price must be consistent with
perceptions of the product

Higher prices communicate

higher product quality
Lower prices reflect bargain
or
valueperceptions
Price, advertising, and distribution must
be unified in identifying product position

Market Channels

Sets of interdependent
organizations involved in the
process of making a product
or service available for use

Channels and Image

Channels can impact communication
objectives
Image
Store displays
Point-of-purchase merchandising
Shelf footage

Types of Channels
Direct
Driven by direct-response ads,
telemarketing, the Internet
Often used when selling expensive and
complex products

Indirect
Network of wholesalers and/or retailers

Push vs. Pull Strategies

Participants in the IMC Process

Organizing for Advertising & Promotions

The way a company (the client)
organizes depends on
Its size
The number of products it markets
The role of advertising and promotion in
the marketing mix
The budget
Its marketing organization structure

Advertising Dept. Under a Centralized System

President

Production

Finance

Marketing
research

Marketing

Advertising

Research
and
development

Sales

Human
resources

Product
planning

Pros & Cons of a Centralized System

Pros
Better
communications
Fewer
personnel

Cons

Hard to understand
the overall
marketing strategy
Longer
response time

Staff continuity

More top management

involvement

Impractical for
multiple brands,
products, divisions

Decentralized Advertising System

Corporate
Finance

Production

Sales

Marketing

Product
Management

Brand
Manager

R&D

Human
Resources

Marketing
services

Advertising
Dept

Marketing
Research

Ad agency
Brand
Manager

Sales promotion

Ad agency

Merchandising

Package design

Pros & Cons of Decentralization

Pros

Cons

Concentrated
managerial attention

Ineffective decision
making

Rapid problem and

opportunity response

Internal conflicts

Increased flexibility

Misallocation of funds
Lack of authority

Pros & Cons of In-house Agencies

Pros

Cons

Cost savings

Less experience

More control

Less objectivity

Increased coordination

Less flexibility

Stability

Less access to top

creative talent

Access to top
management

The Ad Agencys Role

Reasons for using an ad agency
Highly skilled specialists
Specialization in a particular industry
Objective viewpoint of the market
Broad range of experience

Thank You