Session 2

IMC- What it is and what it is not

OBJECTIVES
Theory
1. Differentiate the IMC Audience-Driven Approach vs. Traditional Approaches to Marketing Communications 2. To introduce the various elements of the promotional mix and consider their role in an IMC program 3. To introduce a model of the IMC planning process and examine the steps in developing a marketing communications program

Application a look at 7 successful IMC

Campaigns in the PH

Traditional Marketing Approach

Point of purchase Special events Interactive marketing
Media Advertising

Sales promotion

Packaging

Public relations Direct marketing Publicity Direct response

Contemporary IMC Approach

Packaging Sales promotion Direct response

Point of purchase Publicity

Media Advertising

Public relations

Interactive marketing

Direct marketing

Special events

IMC Audience-Driven Approach vs. Traditional Approaches to Marketing Communications

1. One to one marketing approaches Relational model of marketing 1. Mass marketing and mass communication Transactional model

2.

2.

3.

Consumer focused business and marketing strategies Marketing on the basis of behavioral differences of consumers Providing consumer solutions and consumer benefits Building relationships

3.

Product-focused business and marketing strategies Marketing to a broad, average consumer with similar traits

4.

4.

5.

5.

Marketing on the basis of product attributes Bombarding audiences with advertising messages

6.

6.

IMC Audience-Driven Approach vs. Traditional Approaches to Marketing Communications

7. Focus on outcomes 7. Focus on outputs of marketing communication activities 8. Emphasis on customer acquisition 9. Intuition, gut-feel based marketing 10. Advertising Monologue 11. Mass, generic, unknown audiences 12. Mass, shotgun messages 13. Traditional tri-media mindset

8. Emphasis on customer retention 9. Fact-based marketing 10. A consumer dialogue 11. Known prospects and consumers 12. Targeted communications 13. Multiple, relevant, interactive, digital contact points and media neutrality

Defining IMC

The goal of IMC is to generate short-term financial returns and build long-term brand value.

The Promotional Mix

Advertising

Direct Marketing Interactive/ Internet Marketing Sales Promotion Publicity/Public Relations

Advertising
Paid forms of non-personal communication
About an organization, product, service, or idea by an identified sponsor Important for products and services aimed at mass consumer markets Cost effective

Video

Advertising

Advertising
A press ad for Samsonite luggage "Heaven and Hell by JWT Shanghai Grand Prix Award, Cannes Festival China The top half of the ad depicts heaven, where passengers on an airplane relax in cool, white comfort. The bottom half is hell, or the baggage compartment, full of tormented souls and several sleek, sturdy Samsonite suitcases that can withstand even the inferno (endurance and quality) Why it won: "simple, concise, beautiful idea

Advertising

Direct Marketing
Direct Mail

Shopping Channels

Direct Marketing

Telemarketing

Catalogs

Interactive/Internet Marketing
Back-and-forth communication
Users participate in and modify the form and content of information Happens in real time

Interactive media
Internet Cell phones

Interactive/Internet Marketing

Interactive/Internet Marketing

Interactive/Internet Marketing
A media ad for Homeplus (local version of Tesco stores) by Cheil Worldwide Grand Prix Award for media category, Cannes Festival South Korea The "Homeplus Subway Virtual Store" was an idea conceived by Cheil to help the retailer get an edge over its larger rival, E-mart. Instead of trying to persuade consumers to visit the store, Cheil had the idea to bring the store to busy, hardworking people. It recreated lifelike images of store aisles in subway stations that were interactive and allowed people to shop from the store simply by taking pictures of the products with their mobile phones. Their orders were later delivered to their homes. Online sales for Homeplus jumped by 130% Why it won: The effort captured a trend that sees the convergence of innovative media and shopper-marketing ideas, and solved a real business problem for a client.

Sales Promotion
Coupons Samples Premiums Contest/Sweepstake Refunds/Rebates Bonus Packs Loyalty Programs Events Trade Allowances POP Displays Training Programs Trade Shows

Consumer-oriented
[For end-users]

Trade-oriented
[For resellers]
Video

SHOPPERS HAVE EVOLVED

GROCERY SUPERMARKET PUBLIC MARKET

PETROL

CASH & CARRY

A growing number of MALE shoppers across different channels

DRUGSTORE BAKERY
SARI SARI STORES

CONVENIENCE STORES

Sales Promotion

Most of the promotional budget now goes to sales promotion

y Declining brand loyalty y Increased consumer sensitivity to deals y Larger and more powerful retailers are demanding more trade promotion support

Advertising Versus Publicity

Control Credibility Reach Frequency Cost Flexibility Timing

Advertising Versus Publicity

Factor Control Credibility Reach Frequency Cost Flexibility Timing Advertising Great Lower Measurable Schedulable High/Specific High Specifiable Publicity Little Higher Undetermined Uncontrollable
Low/Unspecified

Low Tentative

Publicity Vehicles
Feature Articles

News Releases

Publicity Vehicles

Interviews

Press Conferences

Special Events

Public Relations

Systematically planning and distributing information in an attempt to control and manage image and the nature of the publicity received.

Public Relations Tools

Cause-related Marketing Publicity Vehicles Community Activities Public Affairs Activities Special Publications Corporate Advertising Special Event Sponsorship

Model of the IMC Planning Process

Review of marketing plan Analysis of Promotional program situation Analysis of communications process Budget determination Develop integrated marketing communications program Advertising Sales promotion PR/ publicity Direct marketing Internet/ interactive

Develop objectives and strategy for each Develop message, media strategy, and tactics Integrate and implement marketing communications strategies Monitor, evaluate and control IMC Program

The Role of IMC in Branding

Brand identity is a combination of
 Name  Logo  Symbols  Design  Packaging  Performance  Image or associations

IMC plays a major role in developing and sustaining brand identity and equity

The World s 10 Most Valuable Brands

Source:

est Global Brands 2010

The World s Most Valuable Brands

Source:

Best Global Brands 2010

The World s Most Valuable Brands

Source:

Best Global Brands 2010

The World s Most Valuable Brands

Source:

Best Global Brands 2010

The World s Most Valuable Brands

Source:

Best Global Brands 2010

The World s Most Valuable Brands

Source:

Best Global Brands 2010

Summary
Promotional Mix
1. 2. 3. 4. 5. Advertising Direct Marketing Interactive/Internet Marketing Sales Promotion Publicity / Public Relations

Companies that have implemented successful IMC campaigns in the Philippines followed strategic frameworks in coming up with their campaign strategies