2. KEY FEATURE OF IMC Pertemuan 7 & 8 Mata kuliah: 00274 - Integrated Marketing Communication (IMC) Tahun: 2009/2010

3. Bina Nusantara University 3 KEY FEATURE OF IMC (Terence A Shimp,2000: 18-22) 1. Affect Behavior  The goal of IMC is to affect the behavior of the communications audience. This means that marketing communications must do more than just influence brand awareness or enhance consumer attitudes toward the brand.  The objective, in other words, is to move people to action.  Communication efforts directed at accomplishing these intermediate, or pre-behavioral, goals are fully justified.

4. Bina Nusantara University 4 Key Feature of IMC 2. Start with the customer or prospect-(1) A second key feature of IMC is that the process starts with the customer or prospect and then works back to the brand communicator in determining the most appropriate and effective methods through which persuasive communications programs should be developed.

5. Bina Nusantara University 5 Key Feature of IMC 2. Start with the customer or prospect-(2) The IMC approach avoids an “inside-out” (from company to customer) approach in identifying contact methods and communication vehicles and instead stars with the customer (“outside-in”) to determine those communication methods that will best serve the customers’ information needs and motivate them to purchase the brand.

6. Bina Nusantara University 6 Key Feature of IMC 3. Use Any and All Forms of Contacts. uses all forms of communication and all sources of brand or company contacts as potential message delivery channels. The term contact is used here to mean any message medium that is capable of reaching targets customers and presenting the communicator’s brand in a favorable light. The key feature of this third element of IMC is that it reflects a willingness to use whatever communications outlets (contacts) are best for reaching the target audience rather than pre- committing to any single medium or subset of media. The value of this particular IMC feature, i.e., using whatever form of contact that is most appropriate.

7. Bina Nusantara University 7 Key Feature of IMC 4. Achieve Synergy Inherent in the definition of IMC is the need for synergy. All of the communication elements (advertising, point-of-purchase, sales promotions, events, and so on) must speak with a single voice; coordination is absolutely critical to achieving a strong and unified brand image and moving consumers to action. The failure to closely coordinate all communication elements can result in duplicated efforts or—worse yet—contradictory messages about a brand being conveyed to consumers. In general, the single-voice, or synergy principle, on which IMC rests involves selecting for a brand a specific positioning statement.

8. Bina Nusantara University 8 Key Feature of IMC) 5. Build Relationships A fifth characteristic of IMC is the belief that successful marketing communications requires building a relationship between the brand and the customer. It can be argued, in fact, the relationship building is the key to modern marketing and that IMC is the key to relationship building. It entails repeat purchases and perhaps even loyalty.

9. Bina Nusantara University 9 Reasons for the Growing Importance of IMC Several shifts in the advertising and media industry have caused IMC to develop into a primary strategy for marketers: 1. From media advertising to multiple forms of communication 2. From mass media to more specialized (niche) media, which are centered around specific target audiences. 3. From a manufacturer-dominated market to a retailer- dominated, consumer-controlled market. 4. From general-focus advertising and marketing to data- based marketing. 5. From low agency accountability to greater agency accountability, particularly in advertising. 6. From traditional compensation to performance-based compensation (increased sales or benefits to the company). 7. From limited Internet access to 24/7 Internet availability and access to goods and services.

10. Bina Nusantara University 10 The Role of IMC in Branding (1) Major role in the process of developing and sustaining brand identity and equity. 1. It encompasses the entire spectrum of consumer’s awareness, knowledge, and image of the brand as well as the company behind it. 2. It is the sum of all points of encounter or contact that consumers have with the brand, and it extends beyond the experience or outcome of using it.

11. Bina Nusantara University 11 The Role of IMC in Branding (2)  These contacts can also result from various forms of integrated marketing communications activities.  The challenge is to understand how to use the various IMC tools  A successful IMC program requires the right combination of communication tools and techniques, their role and the extent to which they can or should be used, and coordinate their use.

12. Bina Nusantara University 12 The world’s 10 most valuable brands, 2002 RankBrand2002 Brand Value (Billions) 1.Coca-cola$69.6 2.Microsoft 64.1 3.IBM 51.2 4.GE 41.3 5.Intel 30.9 6.Nokia 30.0 7.Disney 29.3 8.McDonald’s 26.4 9.Marlboro 24.2 10.Mercedes 21.0 Source: Advertising and Promotion (Belch & Belch), sixth edition Advertising investments undeniably help build a brand.

13. Bina Nusantara University 13 The Promotional Mix: The Tools for IMC The basic tools often referred to as the promotional mix Advertising Direct Marketing Direct Marketing Interactive/ Internet marketing Interactive/ Internet marketing The Promotional Mix Sales Promotion Sales Promotion Publicity / Public relations Publicity / Public relations Personal selling Personal selling

14. Bina Nusantara University 14 1. Advertising (1)  Advertising is defined as any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor Reasons why advertising is such an important part : Cost-effective method for communicating with large audiences used to create brand images and symbolic appeals

15. Bina Nusantara University 15 2. Advertising (2)  Popular advertising campaigns attract consumers’ attention and can help generate sales  Can also sometimes be leveraged into successful integrated marketing communications programs  For example, Eveready Energizer Bunny

16. Bina Nusantara University 16 Classifications of advertising Advertising to Consumer Markets National advertising Retail/Local advertising Primary-versus Selective-Demand advertising Primary-Demand advertising is designed to stimulate demand for the general product class or entire industry. A specific company’s brands Stimulating selective demand Emphasizes reasons for purchasing a particular brand

17. Bina Nusantara University 17 Advertising to Business And Professional Markets Business-to-Business Advertising Targeted at individuals who buy or influence the purchase of industrial goods or services for their companies Business-to-Business Advertising Targeted at individuals who buy or influence the purchase of industrial goods or services for their companies Professional Advertising Targeted to professionals such as doctors, lawyers, dentists, engineers, or professors to encourage them to use a company’s product in their business operations. Professional Advertising Targeted to professionals such as doctors, lawyers, dentists, engineers, or professors to encourage them to use a company’s product in their business operations. Trade advertising Targeted to marketing channel members (wholesalers, distributors, and retailers). To encourage channel members to stock, promote, and resell. Trade advertising Targeted to marketing channel members (wholesalers, distributors, and retailers). To encourage channel members to stock, promote, and resell.

18. Bina Nusantara University 18 2. Direct Marketing (1) Organizations communicate directly with target customers to generate a response and/or a transaction Much more than direct mail and mail-order catalogs. Its involves a variety of activities, including database management, direct selling, telemarketing, and direct response ads through direct mail, the Internet, and various broadcast and print media  Tupperware, Discovery Toys, and AmWay, relying on  independent contractors to sell their products directly to consumers  L.L.Bean, Lands ’End, and J.Crew successful  Dell computer and Gateway

19. Bina Nusantara University 19 Direct Marketing (2)  Direct Response advertising, product is promoted through the manufacturer  income but less  The rapid growth of the Internet,credit cards and toll-free phone numbers is fueling the growth of direct marketing.  Direct-marketing techniques are also used to distribute product samples

20. Bina Nusantara University 20 THANK YOU! THE WINNER WILL NOT QUIT … BUT, THE QUITER WILL NOT WIN …… !