Chapter 1 Integrated Marketing Communication

1. Chapter 1Integrated Marketing Communication Khondaker Sazzadul Karim Associate Professor, Marketing Faculty of Business, NUB.

2. Communication and IMC Programs • Communication: Communication is defined as transmitting, receiving and processing information. A model of communication is shown in figure 1.1 Assume someone plan to buy a new pair of athletic shoes and manufacturer are communicating with the prospective buyers. 1st Typical Senders: Manufacturer that sell the shoes 2nd Encoding: Attention getting marketing ideas.

3. Elements in the Communication Process

4. Personal Selling Word of Mouth Print Media Broadcast Media Communications Channels Personal Channels Personal Channels Nonpersonal Channels

5. Communication and IMC Programs • 3rd Transmission device: Channel and Medium; Television Ad, Billboard, Friday newspaper, Direct mail • 4th Decoding: Message touches the receiver senses, Hear and see the ad, Handle and read the coupon, Smell the perfume sample • 5th Receiver: Effective receivers responding in shopping, and telling their friends about the shoes Noise: Anything distort or disrupt the message. Noise are shown in figure 1.2.

6. Communication and IMC Programs Feedback: Forms of purchase, inquiries, complaints, questions, visits to the stores, hits to the websites Clutter: Most common form of noise in marketing communication process is called “Clutter”. Clutter include: • Jammed Newspaper • Barrage of Billboards • Bus and Taxi Car transit ad • Web site and server loaded with ad

7. Integrated Marketing Communication (IMC) Definition: IMC is the coordination and integration of all marketing communication tools, avenues and sources within a company into a seamless program that maximize the impact on consumers and other end users at a minimum cost. IMC plan begins with development and coordination of Marketing Mix, elements of prices, products, and distribution methods.

8. An Integrated Marketing Communication Plan 1st Step: Situation Analysis: External and Internal Analysis. 2nd Marketing Objectives: Sales, Market share, Desired customer action. 3rd Marketing Budget 4th Marketing Strategies: Positioning, differentiation and Branding strategies. 5th Marketing Tactics: Day to day necessary steps to support Marketing Strategies. 6th Evaluation of Performance

9. IMC Components Figure 1.5 An IMC Plan 1st level: The Foundation: Chapter 2,3,4,5. 2nd level: Advertising Tools: 6,7,8,9. 3rd level: Promotional Tools: 10,11,12,13. 4th level: Integration Tools: 14, 15, 16.

10. Refining the IMC Program • 1st Stage: Identify communicate and manage all forms of external communication. • IMC Umbrella. • Coordinate all advertising and public relation activities. 2nd Stage: The firms goal must be to extend the scope of communication to include everyone touched by the organization. e.g. Employee, distributors, retailers, dealers, product package designers, and so forth.

11. Refining the IMC Program • 3rd Stage: Apply information technology in IMC program; Database, Ecommerce. • Last Stage: Treat IMC as an investment. Calculate and establish Customer Value and Understand each Customer worth.

12. Growth of Information Technology • Computer Tech: Huge data of Customer can gather quickly • Advanced Statistical Software • Connection between financial (Credit cards, Banking) and Business. • Purchasing the data from Research Firms • Universal Product Code ( UPC): Helps to control and evaluate inventory requirements through computer scanning by the retailers.

13. Brand Parity • When consumer believe that many brands offer the same attributes, the result is called brand parity. Minor quality difference between the brands. So, purchase based on price, availability or specific promotional deals but NOT Quality. IMC: Marketers must generate messages in a voice that expresses a clear differences and build a perceived brand superiority.

14. Globally Integrated Marketing Communications (GIMC) GIMC is the final extension to an IMC plan, which occur in the international arena. GIMC Goal: Coordinate all marketing efforts. GIMC Challenge: Larger national and cultural differences. GIMC Two Strategies: 1st Approach: Standardized the product and message across the countries Goal: • Generating Economies of Scale in production. • Using the same promotional theme.

15. Globally Integrated Marketing Communications (GIMC) 2nd Approach: Adaptation: Product and Marketing messages were designed and adapted to individual countries. • Synergy can occur between countries. • Telecommunication and satellite technology continuously expands and contact between the peoples of different countries.

16. Globally Integrated Marketing Communications (GIMC) So in terms of Marketing, perhaps the best philosophy to follow is “Think Globally but Act Locally” Strategy: Message should be designed with a global theme in mind, so the same general message is heard throughout the world. At the same time, When marketers design and encode message for the local market, they need to have the freedom to tailor or alter the message so that it fit the local culture and the target market.

17. Review Questions (Page 21) 1,2,3,4,5,6,7,8,11,12,15,16,17.