CHAPTER 04 The IMC Planning Process.pptx

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1. 1 Chapter Four The IMC Planning Process Dr Khondaker Sazzadul Karim Associate Professor, Marketing Faculty of Business Administration, AIUB.

2. Chapter Objectives What makes marketing research critical to the IMC planning process? How do the various approaches to positioning influence the selection of target markets? How do marketing communication objectives interact with the other elements of the IMC planning process? How are communications budgets established? What elements are considered in developing an IMC program? The IMC Planning Process 4

3. F I G U R E 4 . 1 The IMC Planning Process Communications Research Target Market Product Positioning Objectives Budget IMC Components

4. Promotion Opportunity Analysis A promotion opportunity is the process by marketers identify the target audience of the goods and services produced by the company. A promotion opportunity analysis must accomplish two objectives: Determine which promotion opportunities exists for the company Identify the characteristics of each target audience so a coherent advertising and marketing communication message can reach it . ( The target audience may consist of individuals, groups, niche markets, market segments, or a general public or mass audience. Marketers approach each of these audiences differently.)

5. 1 st Step Communication Market Analysis A communication market analysis is the process of discovering organization’s strengths and weaknesses in the area of marketing communication and combining that information with an analysis of opportunities and threats present in the firm’s external environment. A communication market analysis typically has five components: Competitive analysis Opportunity analysis Target market analysis Customer analysis Positioning analysis

6. Step One: Conduct a Communications Market Analysis Competitive Analysis Opportunity Analysis Customer Analysis Positioning Analysis Target Market Analysis

7. Competitive analysis A competitive analysis identifies major competitors. Objective: What competitors are doing in the area of advertising and communication? 1 st : Identify competitors marketing tactics and how they are attacking the marketplace 2 nd : What potential customers see, hear, and read about the competition.

8. Competitive analysis Competitive analysis through collecting secondary data about the competitors: Advertisement Promotional materials Annual repots A prospectus for a publicly held corporation Websites

9. Opportunity analysis This means watching carefully a new marketing opportunities by examining all the available data and information about the market. Market opportunities are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively. For example, the number of people who exercise has increased tremendously in recent years, and the market for athletic footwear has reached over $13.5 billion. Some helpful questions in conducting an opportunity analysis are as follow: Are there customers that the competition is ignoring or not serving?

10. Opportunity analysis Which markets are heavily saturated and have intense competition? Are the benefits of our goods and services being clearly articulated to our customers ? 4. Are there opportunities to build relationships with the customers using slightly different marketing approach? 5. Are there opportunities that are not being pursued, or is our brand positioned with a cluster of companies in such a manner that it cannot stand out?

11. Target Market Analysis This stage require the marketing department to recognize the need of various consumers and business groups. The segmentation process involves five distinct steps: 1. Finding ways to group consumers according to their needs. 2. Finding ways to group the marketing actions—usually the products offered— available to the organization. 3. Developing a market-product grid to relate the market segments to the firm’s products or actions. 4. Selecting the target segments toward which the firm directs its marketing actions. 5. Taking marketing actions to reach target segments. Determine the benefit of the customers and determine the way in which they can be reached.

12. Customer Analysis Study the three types of Customer group: A current company customers A competitor’s customers Potential customers who may become interested in purchasing from a particular company. Reveal the interpretation of the organization’s advertisements and its other marketing communications and help to identify all of a firm’s future communication avenues.

13. Positioning Approaches Attributes Competitors Use or application Price/quality Product user Product class Cultural symbol Consumer markets B-to-B markets International markets Is relative to competition. Exists in the mind of the consumer.

14. Product Positioning Is the perception created in the consumer’s mind regarding the nature of the company and its products relative to the competition? Positioning is created by factors such as product quality, price, distribution, image, and marketing communications.

15. Communication Research Understand customers purchase benefits Product-specific research Key selling points Desirable features Consumer-oriented research Context of product use Anthropological approach Sociological analysis Psychological motives Target-market research Identifies feasible market segments

16. Communication Research

17. Communication Research

18. Communication Research

19. The methods employed by Anthropology often involve direct observation . This helps the marketing team discover not only who is using a product, but also how it is being used. When Whirlpool employed anthropologists to study washing machines Communication Research

20. Communication Research

21. Psychology concentrates on motivation, cognition, and learning. When these come together, values emerge. The values and life-style model (VALS) is designed to predict consumer behavior by -understanding self-orientation and resources . Knowing the purchasing motives of a target market can greatly enhance the effectiveness of an advertising program. Carefully collected knowledge about the product or service and the audience for ads and advertising campaigns is crucial to-success Communication Research

22. Product Attributes Competitors Use or application Price/quality Product user Product class Cultural symbol F I G U R E 4 . 6 Product Positioning Approaches

23. Elements of Positioning Never completely fixed Applies to business-to-business also International positioning important Critical component of image and brand management

24. Marketing Communications Objectives Communications Objectives Organization Context Target Markets Positioning Budget IMC Components

25. Develop brand awareness Increase category demand Change customer beliefs and attitudes Enhance purchase actions Encourage repeat purchases Build customer traffic Enhance firm image Increase market share Increase sales Reinforce purchase decisions F I G U R E 4 . 7 Communication Objectives

26. Percentage of sales Meet-the-competition “What we can afford” Objective and task Payout planning Quantitative models F I G U R E 4 . 10 Methods of Determining Marketing Communication Budgets

27. Types of Budgets The percentage of Sales Method:

28. The Meet the Competition Method

29. Arbitrary Allocation and “What we can afford” Method

30. The objective and Task Method

31. Objective and Task Method Establish Objectives (create awareness of new product among 20 percent of target market) Determine Specific Tasks (advertise on market area television and radio and local newspapers) Estimate Costs Associated with Tasks (create awareness of new product among 20 percent of target market)

32. Payout Planning and Quantitative Models

33. F I G U R E 4 . 9 Ad Spending, Brand Recognition, and Market Share Auto Insurer Ad Spending (millions) Brand Recognition Market Share Geico $600 98% 8.2% Progressive $506 92% 7.5% State Farm $455 76% 18.6% Allstate $369 63% 10.5% Farmers $203 59% 6.4% Source: Adapted from Gregory Bresiger, “It’s Ad Infinitum,” New York Post , May 1, 2011, www.nypost.com/f/print/news/business/it_ad_infinitum_3ThF9rxodhlKnSkcIjdTPK .

34. IMC Components Traditional advertising Trade promotions Consumer promotions Media spending Alternative media spending Business-to-business media spending

35. F I G U R E 4 . 10 Breakdown of Marketing Expenditures

36. F I G U R E 4 . 11 Global Ad Spending by Media Source: Based on Ingrid Lunden, “Nielsen: Old School TV Reigns Supreme at 58% of Ad Spend, Internet Display up 27% in Q2,” http://techcrunch.com/2013/10/22/nielsen-internet-display-ad-spend-up-27-in-q2-but-old-school-tv-reigns-supreme-at-58-of-all-spend , October 22, 2013

37. Understand the international market A borderless marketing plan Thinking globally but acting locally Local partnerships Communication segmentation strategies Market communication analysis Solid communication objectives F I G U R E 4 . 1 2 Successful Globally Integrated Marketing Communications Tactics