Introduction to the concept of IMC

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CHAPTER KEY POINTS

Questions Well Answer

What is marketing and what are its key concepts? What are the different types of markets, and how do they relate to the marketing process? Who are the key players in marketing? Communication Objectives Concept of IMC Process of IMC Development & Implementation
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WHAT IS MARKETING?

Defining Marketing
Traditionally, marketing is the way a product is designed, tested, produced, branded, packaged, priced, distributed, and promoted. An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.American Marketing Association
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WHAT IS MARKETING?

Key Concepts in Marketing

The Marketing Concept Exchange Differentiation & Competitive Advantage Added Value Branding
Marketing should focus first on identifying the needs and wants of the consumer, rather than building products the consumer may not want. Two steps of the marketing concept:
Determine customer needs and wants through research. Develop, manufacture, market, and service goods that fill those needs and wantssolve customers problems.
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WHAT IS MARKETING?

Key Concepts in Marketing

The Marketing Concept Exchange Differentiation & Competitive Advantage Added Value Branding
Exchange is the act of trading a product or service for something of value (money) Two types of exchange: economic and communication

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WHAT IS MARKETING?

Key Concepts in Marketing

The Marketing Concept Exchange Differentiation & Competitive Advantage Added Value Branding
A brands competitive advantage is where its different from its competitors and superior in some way. In marketing, this concept is called differentiation. Price Design Performance distribution Brand image Reliability
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WHAT IS MARKETING?

Key Concepts in Marketing

The Marketing Concept Exchange Differentiation & Competitive Advantage Added Value Branding
Added value is a marketing or advertising activity that makes the product more valuable, useful or appealing to consumers. Other ways to add value: More convenient to buy Lower price More useful features Higher quality Status symbol More knowledgeable employees
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WHAT IS MARKETING?

Key Concepts in Marketing

The Marketing Concept Exchange Differentiation & Competitive Advantage Added Value Branding
Branding is the way marketers create a special meaning for a product. Brand image is based on communication and on the consumers personal experiences with the product. Brand equity refers to the financial value based on the reputation and meaning the brand name has acquired over time.
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WHAT IS MARKETING?

Types of Markets
Consumer Markets
Those who buy products or services for personal use.

Business-to-Business Markets
Companies that buy products or services to use in their own business or to make products.

Institutional Markets
Nonprofits such as hospitals, governments, schools that provide goods and services for the benefit of society.

Channel Markets
Resellers and intermediaries who buy finished or semi-finished products and resell them for a profit.
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WHAT IS MARKETING?

The Marketing Plan

Steps in the Marketing Process 1. Research the consumer marketplace and competitive marketplace and develop a situation analysis or SWOT analysis. 2. Set objectives for the marketing effort. 3. Assess consumer needs and wants, segment the market into groups, target specific markets. 4. Differentiate and position the product relative to the competition. 5. Develop the marketing mix strategy. 6. Evaluate the effectiveness of the strategy.
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WHAT IS MARKETING?

Marketing Research
Marketing Research Research markets, product categories, consumers, and the competitive situation. Planners need to know as much as they can about the marketplace so they can make informed, insightful strategic decisions. SWOT (Strengths, Weaknesses, Opportunities, Threats) helps managers turn data into insights.
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WHAT IS MARKETING?

Marketing Research
Key Strategic Decisions Objectivesincrease sales, share of market, or broader distribution Segmenting and targeting
Target market Segmenting Target audience The point of differentiation positions the product within the competitive environment, relative to consumer needs. Positioning is how consumers view the brand relative to others in the category.
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Differentiating and positioning.

WHAT IS MARKETING?

The Marketing Mix

Product Distribution Pricing Marketing Communication
Includes product design and development, product operation and performance, branding, and physical packaging. Product design, performance, and quality are key to a products success.

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WHAT IS MARKETING?

The Marketing Mix

Product Distribution Pricing Marketing Communication
The channels used to move a product from manufacturer to buyer. Types of distribution:
Direct marketing to consumer Channel marketing through resellers and retailers

Strategic distribution decisions:

Market coverage strategy Push strategies Pull strategies
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WHAT IS MARKETING?

The Marketing Mix

Product Distribution Pricing Marketing Communication
Price is based on:
Cost of making and marketing the product and sellers expected profit level. Also, based on what the market will bear, competition, economic well-being of customer, value of product, and the consumers ability to gauge the value.

Pricing strategies:
Customary pricingmovies Psychological pricing for affluent customers
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WHAT IS MARKETING?

The Marketing Mix

Product Distribution Pricing Marketing Communication
Includes personal selling, advertising, public relations, sales promotion, direct marketing, events and sponsorships, point of sale, packaging. Personal sales uses face-to-face contact with customers to create immediate sales. Marketing communication is about Big Ideas.
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THE KEY PLAYERS

Marketer
The advertiser or client that is the company or organization who produces and sells the brand. The marketing function is usually handled by a marketing department headed by a VP or director of marketing. Some companies have a product or brand manager who handles marketing and makes all strategic decisions about design, manufacture, and the marketing mix.
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THE KEY PLAYERS

Suppliers and Vendors

They provide or produce the materials and ingredients that are sold to manufacturers to make products. In theory, every member of the supply chain adds value. In practice, every member of the supply chain is a partner in creating the product and marketing the brand.

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THE KEY PLAYERS

Distributors and Retailers

The distribution chain or channel of distribution refers to all the companies who help move a product from manufacturer to buyer. The trade refers to upstream players (suppliers and vendors in the supply chain) and downstream players (companies in distribution chain)

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THE KEY PLAYERS

Marketing Partners
Suppliers, distributors, and marketing communication agencies are partners in supporting the brand and maintaining good customer relationships. Affiliate marketing is a partnership in which one company drives customers to another company and may get a commission for doing so.

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HOW AGENCIES WORK WITH THEIR CLIENTS

The Agency-Client Relationship

Agencies and agency networks (holding companies) Companies have internal advertising departments who act as a liaison between the marketing department and advertising agency(ies). Advertisers may have one agency of record (AOR) or several agencies. Agencies offer clients:
Specialized services Objective advice Experienced staffing Management of all advertising activities and personnel
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HOW AGENCIES WORK WITH THEIR CLIENTS

Types of Agencies
Full-service Agencies Account management, creative services, media planning, account planning, accounting, traffic, production, and human resources Specialized by: Function (copy, art, media) Audience (minority, youth) Industry (healthcare, computers, agriculture) Market (minority groups) Creative Boutiques Small agencies focused on the creative product Media-buying Services Focused on purchasing media for clients
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HOW AGENCIES WORK WITH THEIR CLIENTS

How Agency Jobs Are Organized

Account Management
Serves as a liaison between the client and agency Three levels: management supervisor, account supervisor, account executive

Account Planning and Research

Acts as the voice of the consumer

Creative Development and Production

People who create and people who inspire Creative directors, copywriters, art directors, producers

Media Planning and Buying

Recommend most efficient means of delivering the message

Internal Agency Services

Traffic, print production, financial services, human resources
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COMMUNICATION OBJECTIVES
Often when we think of advertising, we just think of great ads that make us laugh or engage us in some manner. We tend to judge ads by these simple criteria. However, a far more powerful way to look at advertising is by understanding that advertising is a communication task, with specific communication objectives, and therefore we need to understand how communication works.
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Integrated Marketing Communications

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 - for example, general advertising, direct marketing, sales promotion, and public relations- and combines these disciplines to provide clarity, consistency, and maximum communications impact.
Slide 1-1

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 1998

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CURRENT DEVELOPMENTS IN MARKETING

Integrated (Holistic) Marketing

Focused on better coordinating all marketing efforts to maximize customer satisfaction. All areas of the marketing mix work together to present the brand in a coherent and consistent way. The goal is to manage all the messages delivered by all aspects of the marketing mix to present a consistent brand strategy.

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Reasons for the growing importance of IMC

Understanding the value of strategically integrating the various communications functions rather than having them autonomously. Adaptation by marketers to changing environment through coordinating their marketing communications efforts. New technologies and format create new ways of marketing communications. decline in audience size for traditional media. The major reason of growing the importance of IMC is that it plays a major role in the process of developing and sustaining brand identity and equity (Name ,logo , symbol .design ,packaging , & image.

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An Integrated Marketing Communications Process Model

Review of marketing plan Analysis of promotional program situation

Analysis of the communications process Budget determination Develop integrated marketing communications program
Slide 1-4 Figure 1-4

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 1998 Prentice Hall, 2009

An Integrated Marketing Communications Planning Model (cont.)

Develop integrated marketing communications program Advertising Advertising objectives Message strategy
Media strategy

Direct marketing Direct marketing objectives Direct marketing strategy

Sales promotion Sales promotion objectives Sales promotion strategy

Integrate and implement IMC strategy

PR/publicity PR/publicity objectives PR/publicity strategy

Personal Selling Personal selling objectives Personal selling strategy

Monitor, evaluate, and control IMC program

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 1998 Prentice Hall, 2009

Slide 1-5 Figure 1-4

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CURRENT DEVELOPMENTS IN MARKETING

Global Marketing
Most countries have local, regional, and international brands requiring international advertising to promote the same brand in several countries. Companies may have several international regional offices and/or a world corporate headquarters. Agencies must adapt with new tools including one language, one budget, and one strategic plan. The choice of an agency for international advertising depends on whether the brand message will be standardized or localized.
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