MARKETING COMMUNICATIONS PROJEC

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Chapter Four

The IMC Planning

Process

Planning must occur before developing advertising and other marketing messages. This chapter presents the IMC planning process.

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F I G U R E 4 . 1

The IMC Planning Process

Context

Customers

Competitors

Communication

Budget

Target

Market

Product

Positioning

IMC

Component

Objectives

The IMC planning process begins with an analysis of the context, which involves the 3 C’s – customers, competitors, and communication. From the analysis of the 3 C’s, decisions about the target market and product positioning can be made. It is a joint decision because one affects the other. Next communication objectives are formulated. From the objectives come the budget and a selection of the appropriate IMC components. Again, it is a mutual decision because the budge impacts which IMC components can be used and the selection of the IMC components affects the budget.

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F I G U R E 4 . 2

Methods of Segmenting Consumer Markets

Consumer markets can be segmented, or divided, along a number of dimensions. The most common is demographics because it is the easiest. Other methods used include psychographics, generations, geographic, geodemographics, benefits, and usage.

Geographic

Countries

Population Density

Demographic

Gender

Age

Psychographic

Lifestyle

Hobbies

Regions

Climates

Income

Behavioral

Benefits Sought

Usage rate

Loyalty

Occasion

Who are Your Competitors?

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	Your Company	Competitor #1	Competitor #2	Competitor #3
Points
Of
differentiation
15
in
total

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Product Positioning

Positioning is created by factors such as product quality, prices, distribution, image, and marketing communications.

Product positioning is the perception in consumers’ minds of the nature of a company and its products relative to competitors. It is important to recognize the two major points – in consumers’ minds and relative to the competition. Positioning is created by factors such as product quality, prices, distribution, image, and marketing communications. Companies need to carefully consider where they are positioned in the market place then develop ads to reinforce that image or to move consumers to the image that is desired.

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Product Attributes

Competitors

Use or application

Price/quality

Product user

Product class

Cultural symbol

F I G U R E 4 . 3

Product Positioning Strategies

Effective positioning can be accomplished in seven different ways. Positioning by product attributes involves promoting a unique attribute that is superior or different from the competition. Using competitors to establish a position can be accomplished by contrasting the company’s brand against competing brands. Use or application involves creating a memorable set of uses for a product, or applications that allow it to stand out. Price/quality positioning can occur in two ways – by emphasizing value (low price) or by emphasizing high quality, with little mention of the higher price. The product user approach emphasizes who uses the product, such as educators for Apple computers. Positioning can be based on the product class, such as beverages, breakfast foods, or sports cars. The last approach is cultural symbol, which strives to connect the brand to some cultural symbol that is recognized and known by consumers.

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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

This is a list of common communication objectives. Most IMC campaigns will emphasize one communication objective, but may accomplish other objectives in the process. There are some logical combinations, such as developing brand awareness and building customer traffic. Increase market share would fit with increase sales and encourage repeat purchase actions. The key is to match the objective to the medium and the message.

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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

Companies have a number of ways of determining a communications budget. Setting budgets for large companies with multiple brands and products is often more challenging than with a small company that may sell only one brand of a few products.

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F I G U R E 4 . 11

Breakdown of Marketing Expenditures

In terms of total marketing expenditures, approximately 41.1% is spent on some form of advertising. Consumer promotions account for 27.9% and trade promotions for 27.5%. These percentages will vary from industry to industry. It will also be different for products and services, and for consumer companies and B-to-B firms.

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F I G U R E 4 . 12

U.S. Ad Spending by Media

Source: Adapted from “U.S. Ad Expenditures,” 2008 Marketing Fact Book, Marketing News, July 15, 2008, p. 22.

In the United States, most ad dollars are spent on television advertising, 43.6%. Magazines are second with 20% and newspapers are third with 17.7%. The Internet accounts for only 7.6%, but is the fastest growing media.

Television, 43.6%

Internet Magazines Newspapers Outdoor Radio Televison Other 0.0756753050870696 0.199520087755382 0.177101330042507 0.0260935143288084 0.0723981900452495 0.436404771698893 0.0128068010420953

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F I G U R E 4 . 13

U.S. Alternative Media Spending

Source: Adapted from “U.S. Alternative Media Spending,” 2008 Marketing Fact Book, Marketing News, July 15, 2008, p. 18, 22.

When looking at alternative media spending, the largest category is for online and mobile, 40%. The second largest expenditure is for branded entertainment, 30%.

Online/Mobile Entertainment/Digital out-of-home Brand Entertainment Social Media Interactive Marketing 29.93999999999999 9.280000000000001 22.3 1.43 11.91

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Understand the international market

Thinking globally but acting locally

Local partnerships

F I G U R E 4 . 1 5

Successful Globally Integrated Marketing Communications Tactics

Successful global integrated marketing communications require paying attention to a number of factors. The company must understand the international market and cultures where it will be selling products. A borderless marketing plan works best, but in developing this type of plan, firms must allow individual countries to modify the marketing plan. The idea is to think globally, but act locally. Seeking local partnerships can be very advantageous, especially in developing communication segmentation strategies and conducting a market communication analysis. With this information, solid communication objectives can be established.

Consumer

promotions,

27.9%

Advertising,

41.1%

Trade

promotions,

27.5%

Other, 3.3%

Chart2

Consumer promotions

Advertising

Trade promotions

Other

0.279

0.411

0.275

0.033

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Chapter 4 - IMC
Figure 4.9
Consumer promotions	27.9%
Advertising	41.1%
Trade promotions	27.5%
Other	3.3%
Canada	$6.4
China	$9.0
France	$11.1
Germany	$18.3
Italy	$9.5
Japan	$38.0
South Korea	$6.4
Spain	$6.7
United Kingdom	$18.4
United States	$263.7
Outdoor	2.6%
Radio	7.4%
Cable TV	11.2%
Syndicated TV	2.8%
Spot TV	11.5%
Network TV	18.1%
Newspaper	19.9%
Magazine	19.9%
Internet	6.5%
Movies & videos	$5.3
Airlines, hotels, car rentals	$5.4
Personal care	$5.7
Food, beverages, candy	$7.2
Financial services	$8.7
General services	$8.7
Medicine	$9.1
Telecom	$10.9
Retail	$19.1
Automotive	$19.8

MARKETING COMMUNICATIONS PROJEC

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