Integrated Marketing Communications MKT 846 Professor West What is IMC? According to Ogilvy & Mather… IMC is “orchestration” Orchestral Analogy An orchestra consists of many instruments, each of which produces a different sound… Whereas, marketing communication involves multiple media with differing characteristics. Orchestral Analogy If the sounds are not coordinated, the orchestra produces noise rather than music… Similarly, an ill-conceived communications plan can send inconsistent messages, detracting from the brand. Orchestral Analogy An orchestra performs according to a musical score and under the direction of a conductor… An IMC plan should detail which marketing communications functions and what media will be used a which times and to what extent. The plan must be clearly communicated internally and overseen to make sure that everyone understands their role What is the Purpose of IMC? According to Duncan… The primary responsibility of IMC is to help the organization to: Acquire, Retain, and Grow Customers! Focus on Brand Building Strong From brands add value the firm’s perspective… Brand equity can be leveraged through extensions, collaborations, licensing From the customer’s perspective… Brands provide assurance, simplify our lives, reflect our personality transform products – goods as well as services – into something larger than the product itself. Brands Transactions to Relationships The marketplace has changed: Increased Competition Distrustful Customers New technologies Recognition that it’s more profitable to retain than acquire customers Managing customer relationships drive brand value Communication is the foundation of all relationships, including brand relationships IMC Helps Build Profitable Customer Relationships Focuses on relationships instead of transactions Establishes more personal, two-way communication with customers Determines the best mix of marketing communication functions and media for a brand Helps ensure that a brand has one voice, one look Takes advantage of new media and new communication and information technologies Builds trust in a brand by creating an open, customer-focused culture Building Relationships With Boots The Chemists Case Study: Boots The Chemists Largest pharmacy chain in Britain J. Walter Thompson launched a strategic relationship building IMC campaign Elements Consumer perceptions – “man in the white coat” Trusted authority New positioning “look good and feel good” of the campaign Understanding, stimulating, personalized, fulfilling, enjoyable Campaign Objectives Increase profitability by increasing frequency of visits and amount spent per visit Enroll 8 million cardholders in 12 months Achieve an incremental sales increase of 3.2 percent Case Study: Boots The Chemists Elements Target Audience of the campaign (cont.) 83% of customers are women Focus on young women who could be motivated to “treat themselves” rather than “deal-seekers” Creative Strategy Boots Rescue Resolution Case Study: Boots The Chemists Elements Message Delivery of the campaign (cont.) In-store material & staff training followed by television Evaluation Launch produced a database of 8 million BTC customers More than 3 percent sales increase in year 1, 8 percent in year 2 Cardholders’ average purchase was 8 percent high than noncardholders Relationship Intensity Stages of Relationships Awareness: brand is included in customer’s evoked set Identity: customers display the brand, indicating an emotional attachment to it Connected: customers communicate with the company in-between purchases Community: customers communicate with each other Advocacy: customers communicate with prospects, make referrals Four Basic Components A sound IMC plan will be based on research and careful consideration of the situation and environment in which the effort will take place. The plan will include four basic components: Objectives – What you want accomplished Strategies – Ideas for accomplishing objectives Tactics – Actions for executing the strategy Evaluation – Measures for evaluating success Marketing Plan Compa y Situation Analysis Compet itors Collab orator s Cosum ers Strategy Development Marketing Mix Promotion to final buyer Target Market Product Ideti Decisios fy Marke Custom ts Marke Pricig er: t Decisios Cosum Segme er tatio Select Chael a Decisios Busie Promotion Target ss to trade Marke Promotioal Develo t Reseller Decisios p Positio Purchase ig Marketing Plan Compa y Situation Analysis Compet itors Collab orator s Cosum ers Strategy Development Marketing Mix Promotion to final buyer Target Market Product Ideti Decisios fy Marke •Advertising Custom ts Marke Pricig •Direct Marketing er: t Decisios •Interactive Cosum Segme Marketing er tatio Select Chael •Sales Promotion a Decisios Busie •Publicity and PR Promotion Target ss to trade •Personal Selling Marke Promotioal•Internal Develo t Reseller Decisios p Communication Positio Purchase ig Course Overview Syllabus highlights… Materials: Duncan, “IMC: Using Advertising & Promotions to Build Brands” Purvis, “Which Ad Pulled Best,” 9th edition Objectives: To experience IMC planning by working together to develop a communications plan To sharpen your skills at evaluating existing marketing communication material Course Overview Syllabus highlights… Requirements Your performance will be assessed through a combination measuring including: Daily participation – 10% Final (in-class) – 30% Four “Mini-Projects” – 20% Final Presentation & Paper – 40% Course Overview Webpage (http://fisher.osu.edu/~west_284/mkt846w04) Syllabus Schedule (daily slides) Project Information Resources Project Details Teams will develop a marketing communications plan for a product or service of their choosing Criteria for selecting a product/service: The brand could improve its market position by changing its communications strategy. The brand is suited to TV advertising Access to members of the target market for research purposes Use of mini-projects to foster a systematic approach and provide feedback Step 1: Situation Analysis Step 2: Target selection, positioning, communication objectives, creative development Project Details Use of mini-projects to foster a systematic approach and provide feedback Step 3: Sales & Trade Promotions Step 4: Direct Marketing Additional Elements Budget, Evaluating Success Various team members should adopt differing perspectives to be sure that all stakeholders are considered Team Selection Each class member selects one “teammate” However, you may not end up on the same team Write your name and your intended teammate’s name on the form provided You and your teammate should only submit one page Ten pairs of names will be drawn to form four person teams The remaining names … Will be separated and drawn one at a time If your name is picked you will have the opportunity to join any team with only four members Next Time… Catch up on reading Duncan Set Chapters 1 - 4 up “weekly meeting time” with your team and get cracking on picking your product or service