OCTOBER 2016 SEMESTER

School of Business & Accountancy

Marketing Communication

Lecture Notes

Lecture 1: Overview of Integrated Marketing Communication (IMC)

Marcom Decision-Making Process

Learning Objectives

Get to know the different elements of the promotional mix

Learn what Integrated Marketing Communication (IMC) is all about

Understand the key features of an IMC Campaign

Know the steps to go through in making marketing communication

decisions

What is Marketing Communication?

Collection of all elements in a brands marketing mix that facilitate

exchanges by establishing shared meaning with the brands customers
or clients

What is Integrated Marketing Communication?

Integrated Marketing Communication is defined as the co-ordination

and integration of all marketing communication tools in a company into
a seamless program designed to maximize the impact on customers
and other end users
Elements of Promotional Mix

Advertising -- any paid form of non-personal communication of ideas,

goods, or services by an identified sponsor. This includes traditional
mass media outlets such as television, magazines, newspapers, and
out-of-home.

Public relations -- an organizational activity involved with fostering

goodwill between a company and its various publics.

Sales promotion -- all promotional activities that attempt to stimulate

short-term buyer behaviour. It may be directed toward the trade or
toward the end consumer.

Personal selling -- paid, person-to-person communication in which a

seller determines needs and wants of prospective buyers and attempts
to persuade these buyers to purchase the companys products or
services.

Direct marketing -- an interactive system of marketing which uses one

or more advertising media to effect a measureable response. Direct-
response advertising involves the use of any of several media to
transmit messages that encourage buyers to purchase directly from
the advertiser.

Online marketing/social media -- Online marketing is the promotion of

product and services over the Internet. Social media marketing
represents marketing activities conducted using online social
communities, channels and services as the venue.

Key Features of IMC Campaign

Key Feature #1: IMC Should Begin with the Customer or
Prospect
The marcom process should start with the customer or prospect and
then work back (outside-in approach) to determine those
communication methods that will best serve the customers
information needs and motivate them to purchase the brand.
1. Consumers in Control
Consumers are increasingly active participants in the marcom
messages to which they pay attention by choosing when, how, and
where they view these messages.
2. Reduced Dependence on the Mass Media
 Marcom should use the channels which reach people where, when,
and how they wish.
Summarise: Identify their needs and come out with solutions for
them

Key Feature #2: Use Any Form of Relevant Contact

Select those tools that are most appropriate for the communication
objective at hand.
1. Touch Points and 360-Degree Branding
The IMC objective is to reach the target audience efficiently and
effectively using appropriate touch points.
Audience and identify relevant touch points
Young people social media, email
Older people different, maybe like traditional
360 edegree surround urself with the brand

Key Feature #3: Speak with a Single Voice

The brands assorted communication elements must all strive to
present the same message and convey that message consistently
across diverse message channels, or points of contact. The single-
voice principle involves selecting a specific positioning statement
for a brand. A positioning statement is the key idea that
encapsulates what a brand is intended to stand for in its target
markets mind and then consistently delivers the same idea across
all media channels.

Key Feature #4: Build Relationships Rather Than Engage in

Flings
A relationship is an enduring link between a brand and its
customers.
1. Loyalty Programs
Can be used to build brand/customer relationships with
frequency, and loyalty.
2. Experiential Marketing Programs
Involve creating brand sponsored special events and unique
venues that are relevant to consumers life and lifestyle.

Key Element #5: Dont Lose Focus of the Ultimate Objective:

Affect Behavior
A final IMC feature is the goal of affecting the behavior of the target
audience.
The Marketing Communication Decision-Making Process

Source: Recommended Textbook, Chapter 1, Figure 1.3, Pg 19

Figure 1.3 is a framework conceptualizing the various types of practical

brand-level marcom decisions and the outcomes desired from those
decisions. The model consists of a set of fundamental decisions, a set
of implementation decisions, and program evaluation. Fundamental
decisions include targeting, positioning, setting objectives, and
budgeting and these influence the implementation decisions regarding
the mixture of communication elements and the determination of
messages, media, and momentum. The expected outcomes from these
decisions are enhancing brand equity and affecting behaviour. The
objective is to enhance brand equity, the goodwill that an established
brand has built up over its existence.

All marketing communication should be (1) directed to a particular

target market, (2) clearly positioned, (3) created to achieve a specific
objective, and (4) undertaken to accomplish the objective within
budget constraint.
 1st step: Set Fundamental Marcom Decisions
1. Targeting
Allows marketing communicators to deliver messages more
precisely and to prevent wasted coverage to people falling
outside the intended audience.

Target segments can be selected based on demographics,

lifestyles, product usage, and geographic considerations.

2. Positioning
Represents the key feature, benefit, or image that it stands for in
the target audiences collective mind.

Brand Positioning Statement is the central idea that encapsulates

a brands meaning and distinctiveness vis--vis competitive
brands.

3. Setting Objectives
Ensures that decisions are grounded in the underlying goals, or
objectives, to be accomplished for a brand.

Marketing objectives tend to be general because they are for an

entire company. Some examples of marketing objectives include:
Sales volume what to do to ensure that sales volume
will increase?
Market share
Profits
Return on investment

In contrast, a communication plan may emphasize a specific

communication objective:
Develop brand awareness
Increase product/service category demand
Change customer beliefs or attitudes
Enhance purchase actions
Encourage repeat purchases
Build customer traffic
Enhance firm image
Increase market share
Increase sales
Reinforce purchase decisions
 4. Budgeting
Involves allocating financial resources to specific marcom
elements to accomplish desired objectives. Different methods
include:

Percentage of Sales Method

Budgets can be based on sales from the previous year or
anticipated sales for the next year.

Meet-the-Competition Method
Meet the competition seeks to prevent loss of market share by
raising or lowering expenditures to match the competition (not
used if you are the leader)

What We Can Afford Method

This method sets the marketing budget after all of the
companys other budgets have been determined. Money is
allocated based on what company leaders feel they can spend.
(for eg: small companies, not advisable to use this)

Objective and Task Method

This method begins with a list of all communication objectives to
pursue during the year and then calculates the cost of
accomplishing each objective.

Payout Planning
Payout planning occurs when management establishes the
portion of advertising to sales or market share. This method
normally allocates greater amounts in early years to yield
payouts in later years.

Quantitative Models
Quantitative models are simulations of relationships between
advertising and sales or profits. They may be difficult to create
accurately.

Marcom Implementation Decisions

The fundamental decisions described are conceptual and strategic.
The implementation decisions are practical and tactical.

1. Mixing Elements
Refers to the choice of exactly how to allocate resources among
the various marketing communication tools. Marketing
communication-mix decisions constitute an ill-structured problem
 because there is no way to determine the mathematical optimum
allocation between advertising and promotion that will maximize
revenue or profit.

2. Creating Messages
Refers to the creation of messages in the form of
advertisements, publicity releases, promotions, package designs,
social media, and any other form of marcom message.

3. Selecting Media
Involves choosing from all the different message transmission
alternatives (e.g., selling, TV, etc.).

Advertising
Print or broadcast.
Print newspaper/magazines
Broadcast tv or radio (traditional), online broadcast

Outdoor-out of home

Media vehicle for eg newspaper, then what type?

4. Establishing Momentum
Refers to selecting the speed of movement with which the
messages are deployed. The effectiveness of each message form
requires both a sufficient amount of effort and continuity of that
effort.

How many campaign, how many people you want to reach

Marcom Outcomes
Outcomes are twofold: enhancing brand equity and affecting
behavior (each influences the other).

Program Evaluation
This final step in the process is accomplished by measuring the
results of marcom efforts against the objectives that were
established at the outset. There is an increasing demand for
accountability. Measures of communication outcomes include brand
awareness, message comprehension, attitude toward the brand,
and purchase intentions.