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INTEGRATED MARKETING COMMUNICATIONS. LECTURE 1: MARKETING COMMUNICATIONS IN CONTEXT. Objectives. At the end of this input the participant will be able to: have an understanding of the philosophy behind the module and the basic communications mix
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INTEGRATED MARKETING COMMUNICATIONS LECTURE 1: MARKETING COMMUNICATIONS IN CONTEXT
Objectives At the end of this input the participant will be able to: • have an understanding of the philosophy behind the module and the basic communications mix • have an understanding of the nature of I(M)C and the make-up of the communications mix in general in relation to various kinds of markets • appreciate the importance of integration in communications • appreciate the benefits of applying integration in comms to target markets
MANAGINGCHANGE: Focus shift HISTORICAL CURRENT 21ST CENTURY MARKETER MARKETER MARKETER CHANNEL CHANNEL CHANNEL MEDIA MEDIA MEDIA CONSUMER CONSUMER CONSUMER
CommunicationsMix Product, Price, Place, Promotion Advertising Sales promotion Public relations Personal selling Corporate PR Direct marketing And others
Marketing Planning, the Communications Mix and Integration Marketing Objectives and Strategy Marketing Plan The Marketing Communications Strategy
Managing the Communications Mix • Planning frameworks can assist planning, management and control • Many Marcomms planning models exist e.g. Copley APIC, Smith SOSTAC etc • All include similar stages of analysis, planning, implementation and evaluation
APIC MODEL • ANALYSIS: the present situation (organisation, product/service, competitors, customers, environment etc) • PLANNING: objectives, positioning, strategy and tactics • IMPLEMENTATION: costing, budgeting, production, scheduling etc • CONTROL: research, monitoring and evaluation Copley 2004
DECISION SEQUENCE MODEL Situation analysis objectives and positioning strategies budget implementation evaluation Rothschild 1987
Decision Sequence Model • Situation Analysis: • Where are we now? • Assessment of consumer • Assessment of product class • Assessment of the organisation • Assessment of the Environment
Decision Sequence Model • Objectives and Positioning: • Where do we want to go? • Time, task, target and amount of change • Strategies: • How do we get there? • Integrated Marcomms Mix • Budget: • How much can we/do we need to spend?
Decision Sequence Model • Implementation: • Test Marketing etc • Evaluation: • Were the objectives achieved? • Feedback to inform the next situation analysis
Fill’s Decision Sequence Model • Similar approach to Rothschild and APIC • Features a Key Factor or Content Analysis, instead of the Situation Analysis • Explicit recognition of the role of agencies • Explicit recognition of the part research plays in the whole process Fill 1995 and 2002
IntegratedCommunications: the philosophy “careful planning creates marketing communication synergy that reinforces a consistent message or image in a cost effective manner” Smith 1993
INTEGRATED (MARKETING) COMMUNICATIONS IMC DEFINED: “IMC is the process of developing and implementing various forms of persuasive communications programs with customers and prospects over time” (Shimp, 1997)
INTEGRATED (MARKETING) COMMUNICATIONS IMC CAN BE DESCRIBED AS: • Single voice, Gestalt, Synergy 1. Moving people to action 2. Use of all forms of contact 3. Start with the consumer 4. Achieve synergy 5. Build relationships (Shimp, 1997)
Implications of: GESTALT consistency in brand development synergy of effort closer client-agency relationship teamwork effective measurement i.e. The whole is greater than the sum of the parts
INTEGRATED (MARKETING) COMMUNICATIONS • Communications elements working together with a “unified message” • Below the line supports above activity and vice versa • A consumer-focussed approach
Eight possible themes to explore the question “what is IMC?”: • Attitude of mind. IMC is an attitude, not a science. 2. One spirit. The single theme to support the brand, the intellectual message. 3. One strategy. Of the marketing and then promo mix - a single communications strategy which embraces what it needs to achieve objectives. 4. Synergy. A unified message where each part reinforces the others, each drawing from each other.
Eight possible themes to explore the question “what is IMC?”: 5. Equal status. The ‘line’ has gone and the mix is dictated by the brief, not the agency. Advertising’s dominance is being challenged. 6. Merging disciplines or blurred edges, since a lot of advertising contains (say) PR or SPs 7. Stakeholder emphasis. But IMC is not a panacea 8. Marketing orientation. Understanding needs and how to satisfy them with the help of IMC
WHAT DRIVES IMC? 1. Financial factors. Schultz (1994) suggests: - recession - the trend toward pay by results/accountability - restructuring of how agencies are paid re billing/income/profit - pressure to reduce media billing - media fragmentation All have contributed toward consideration of IMC.
WHAT DRIVES IMC? 2.The sophisticated client. Most commentators would agree that clients are a lot more sophisticated and knowledgeable than in the past. The mystique of advertising is diminished and a power shift occurred. 3. Disillusionment with the brand, advertising and agencies. In a similar vein to the above, own labels are stronger and advertising less revered. Other elements of communications deemed important. Agencies have had to change, but should see this as a set of opportunities not threats.
WHAT DRIVES IMC? 4. Power shift to retailers generally and what they need/expect has meant more spend on below the line. 5. Environmental factors such as the new media, attitudes toward modernist marketing etc. have changed the way in which communication is viewed.
THE BENEFITS OF IMC Linton and Morley (1995) provide a clear list of benefits of IMC to organisations: 1. Creative integrity - theme and style consistent throughout, therefore impact not confusion. Can aid campaign build-up and provide materials for other uses.
THE BENEFITS OF IMC 2. Consistency of messages - following on from 1. above, straplines and other parts of the message can provide the basis for reinforcement, reminder leading to the development of the key message, visual standards, use of company colours consistently etc.
THE BENEFITS OF IMC 3. Unbiased recommendations - usually through one agency, “through the line” with no worries about earning commission from advertising billing only. Seek objectivity from start. 4. Better use of all media - allow each to work with each other to get the best out of all of it. 5. Greater marketing precision - via data bases and information processing generally. Allows the use of different elements to achieve different objectives. 6. Operational efficiency - Takes fewer people , can be a single interface and so less conflict. Simple compared to the potentially messy multi-agency situation.
THE BENEFITS OF IMC 7. Cost savings - re. admin., rationalisation of materials, artwork etc. 8. High calibre service - to all areas. IMC means professionalism for below-the-line as well as above. Overall service improved “through the line”. 9. Easier working relationships - One agency means no new learning curves because of knowledge of the client’s business, simplified admin., no re-learning but ongoing, consistent. 10. Agency accountability - This has to be true if only one agency is used. Value for money should result.
INTEGRATED (MARKETING) COMMUNICATIONS WHAT INHIBITS IMC • Practical difficulties, for example the complexity of different objectives being achieved by different strategy and tactics, don’t help. Implementation can be very difficult to achieve.
WHAT INHIBITS IMC • Cultural factors. The main factor is change, or resistance to it. The culture of the organisation for example may be hung up on flashy ads on TV. Or it may be that sales promotions have been the norm, linked to bonuses. Any change would be accompanied by conflict.
STAGES IN IMC 4TH STAGE: FINANCIAL AND STRATEGIC INTEGRATION - monitoring performance for ROI 3RD STAGE: APPLICATION OF IT - data sources and bases, planning and implementation, data to knowledge 2nd STAGE: REDEFINING THE SCOPE OF MARKETING COMMUNICATIONS - gather information and apply to communications 1st STAGE: TACTICAL COORDINATION OF MARKETING COMMUNICATIONS - interpersonal and cross-functional communications