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Communication Strategy and IMC

Communication Strategy and IMC. MKT 460 (Strategic Marketing) Taufique Hossain. The marketing communications mix. The internet and digital technologies have enabled new interactive forms of communication, where the receiver has greater responsibility for their part in the communication process.

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Communication Strategy and IMC

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  1. Communication Strategy and IMC MKT 460 (Strategic Marketing) TaufiqueHossain

  2. The marketing communications mix The internet and digital technologies have enabled new interactive forms of communication, where the receiver has greater responsibility for their part in the communication process A traditional model of the marketing communication mix

  3. Figure 1.1 The tools and position of the marketing communications mix Fill 2009

  4. Figure 1.2 Above-and below-the-line communications Fill 2009

  5. Selection Criteria • Degree of control required over delivery • Financial resources available (cost) • Level of credibility • Ability to deliver message (communications) • Size and geographic dispersion of target audiences

  6. Key Characteristics of Tools ADVERTISING • Non-personal mass communication • High reach • Impact • High cost • Low credibility? • Difficult to measure

  7. Key Characteristics of Tools SALES PROMOTION • Used tactically in short term • Aim is often to increase sales • High control and measurement • Moderate cost • Can be used throughout distribution channel • Credibility may be questioned

  8. Key Characteristics of Tools PERSONAL SELLING • Interpersonal communications tool (two way) • Instantaneous feedback possible • Message can be tailored • High cost • More suitable where message is complex

  9. Key Characteristics of Tools DIRECT MARKETING • Any form of direct response communications • Targets individual customers (database) • Can deliver personalised message • Builds relationships • Facilitated by technological developments • Moderate absolute cost but cost per contact high

  10. Key Characteristics of Tools PUBLIC RELATIONS • Non-personal • Wide range of tools available • High credibility • Low cost

  11. Figure 1.3 The relative effectiveness of the tools of the marketing communications mix Fill page 25

  12. Table 1.4 The 4Cs Framework – a summary of the key characteristics of the tools of marketing communications Fill

  13. Major communication tools

  14. New Tools, New Media Broadcast advertising (TV/radio) Print advertising (newspaper/magazine) Interactive/internet marketing Website/on-line advertising Outdoor/billboards Mobile/Wap Personal selling Telemarketing Packaging Direct marketing Publicity/PR Point of purchase Product placement Sales promotion Word of mouth Events & sponsorship

  15. Product Placement

  16. The Marketing Communications Planning Process • Context analysis • Communication objectives • Marketing communications strategy • Communications mix [tools and media] • Scheduling and Implementation • Resources • Evaluation and control • Feedback

  17. Context Analysis • Can relate to environmental analysis undertaken by marketing> SWOT PEST • Should adopt a communications focus: Customer -Segmentation Business – Corporate and marketing strategy, Competitor analysis Internal – Financial, Culture, Value, Marketing expertise External – Stakeholders, PEST

  18. Lucozade Sport: Award Winning Campaign

  19. Lucozade Sport: Understanding the market context Non-alcoholic Alcoholic Water Juice Milk Tea Coffee Lucozade Other Power ade Carbonated soft drink Energy Non-energy

  20. Lucozade Sport: Business Context • Launched in 1990, by 2004 had grown to £50m brand • Strong year on year growth • In 2004 sales and usage fell sharply • Pepsi’s Gatorade and Coca Cola’s Powerade are main competitors • 2005 Powerade redesigns packaging and attracts market aggressively • Only 18% of sports participants drinking Lucozade Sport by 2004

  21. Determination of Objectives • Value of objectives: • Focus and coordination • They help to orient everyone involved toward a common goal • Guide for strategy formulation • They serve as criteria for developing strategy and making decisions • Measurement & control • They provide the standards and benchmarks for evaluating results

  22. Objectives Objectives should consist of three main element: Corporate objectives – business or marketing plan, mission Marketing Objectives – sales objectives, market share, ROI Marketing communication objectives – Current context, Current Brand identity, Future context

  23. Lucozade Sport: Campaign Objectives • Getting associated with sport preparation so that the brand would be consumed before sport [Before] • Giving the product functionality and scientific credentials to raise credibility [Fuel] • Reduce the claim and align the brand to small but meaningful sport events [Edge]

  24. Strategy • Guides the direction, approach and implementation of an organisation’s desired marketing communications >Push >Pull >Profile • Planning is about the formalisation of the strategy and ideas into a manageable sequence of activities that can be resourced and implemented.

  25. Figure 12.5 Marketing communication strategic eclipse

  26. Figure 12.2 The direction of communication in a pull strategy

  27. Pull Strategy • This will “pull” products through the distribution channels • Promote to consumers and users in order to “create” demand • Emphasis on mass media advertising

  28. Figure 12.3 The direction of communication in a push strategy

  29. Push Strategy • Products “pushed” through the distribution channel • Promoting heavily to members of the distribution channel eg retailers, wholesalers, agents • It is assumed that they will in turn promote heavily to the end consumer • Emphasis on personal selling and sales promotion

  30. Figure 12.4 The direction of communication in a profile strategy

  31. Profile Strategy • Communications to ‘stakeholder’ groups • Focuses on development of corporate image and reputation • Awareness, perception and attitudes held by stakeholders towards an organisation need to be understood and acted upon • Dialogue required which will normally lead to development of trust and commitment

  32. Product life cycle stage and communication • Introduction • High initial expenditure • Advertising to create awareness • Sales promotion to create trial, retailer acceptance • Growth • Less intense communication activity • Shifts away from awareness to brand equity building • Advertising as a prime means of image creation

  33. Product life cycle stage and communication • Maturity • Reminding and reassuring • Decline • Low levels of advertising and sales promotion

  34. Coordinated communication mix Figure 1.1 The tools and position of the marketing communications mix Fill 2009

  35. Lucozade Sport: Communications Mix

  36. Resources: Budget Planning • Four commonly used approaches to setting the budget: • All you can afford • Percentage of sales • Competitive expenditure • Objective & task

  37. Scheduling/Implementation • Agency v In-house Creative Copy Production Printing Media planning and booking Distribution • Timescale? • Competitors? • Environment

  38. Monitoring & Evaluation of performance Contingency planning Feedback

  39. Evaluation Techniques • Complex especially in the case of integrated campaigns. Each element of the mix may be measured in a different way to capture individual contribution. • Examples of some measurement techniques: > Recall and recognition tests (TV advertising) > Tracking studies (advertising) > Column inches (PR) > Coupon redemption (sales promotion) > “hits” (online) > Sales??????????

  40. Lucozade Sport: Campaign Evaluation • Year on year sales • Penetration level among sports participants • Credibility of essential role in sports preparation

  41. Integrated Marketing Communications (IMC) The triangulated use of combinations of media emanating from the belief that image advertising, sales promotion, direct response advertising and marketing public relations are not mutually exclusive disciplines and that incorporating elements of each into communication materials may lead to a triangulation in effects Nowak and Phelps, 1994 Integrated marketing communications is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communications programmes over time Schultz, 2004

  42. Figure 11.1 Elements for integration

  43. The Case for IMC • Reduce costs • Streamlines company/agency relationships • Achieve synergy across mix • Supports brand and brand positioning in crowded market place • Fosters customer focused • Requires cultural shift and employee participation

  44. The Case against IMC • Encourages rigidity and inflexibility? • Decision making becomes more centralised • Loss of creativity • Increased time and bureaucracy • Internal resistance • Need for global brands to be adapted? • Could damage brand if one/some elements do not fit effectively

  45. Management Fashion? “ IMC is a management fashion, apparent in its lack of definition and transient influence and its influence upon practice should be conceived accordingly” “ Despite its pervasive penetration in the marketing and communication management world, little has been said, however, about IMC’s theoretical robustness as well as its actual significance for marketing and advertising thought and practice” Cornelissen & Lock 2000

  46. The marketing communications mix An Integrated Marketing Communication Mix A contemporary model of the marketing communication mix

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