Communicating Value:

Integrated Marketing Communication

Amit Agnihotri Co-founder exchange4media Group
IIM A 20th Feb 07

Marketing Communication: Challenges

What to say How to say Where to say

Marketing Communication: Responses to Challenges

What to say Message Strategy How to say Message Tactic Where to say Channel Strategy

Old Vs New:
The evolving Marketing Communication paradigm
One-way Two-way Communication Communication Consumers are Passive Consumers are Active/ recipients engaged participants TV, Press & other Consumers & Brands mass-media dependent are interacting all the timeand each contact is an opportunity

Brand Contacts
Hundreds of ways in which a consumer interacts with brands
Media Product Design & Packaging Retail Users

In every Contact, the Brand is communicating something. What the brand is, how it is used, who uses it, what does it symbolize Each Brand-Contact deserves attention

Marketing Communication Continuum

Product Design

Distribution

Traditional IMC Tools 100s of other Touch points

Customer Purchase experience Service experience

Packaging

Every point of Contact is a Communication Point

IMC Defined
IMC is a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication discipline for example, general advertising, direct response, sales promotion, and public relations and combine these disciplines to provide clarity, consistency, and maximum communication impact.
American Association of Advertising Agencies

IMC Challenge No 1
What to say & How The Message Strategy & Tactic

The Message Challenge

Millions of products:
Everyday household product like detergents & soaps Small little pleasures like a candy, cigarette or a cola Insurance & financial products like IPO or Banking A Car or a two-wheeler
A basic people-mover vs a luxury car A efficient transport vs a sleek designer statement

Several motivations for purchases Several types of customers Hence, a need for a message-strategy framework to guide this creative process

The Rossiter & Percy framework

What should a brand say (and how) to ensure that TG develops a positive brand-attitude

Brand Attitude
Is dependent on two factors Consumer Motivation & Type of Decision based on Product Involvement

Motivation classification
Negative Motivation Vs Positive Motivation

Negative origin
1 Problem removal

Drive reduction
Buyer experiences current problem: seeks a product that will solve the problem Buyer is not satisfied with current product: searches for a better product Buyer anticipates a future problem: seeks a product that will prevent the problem from occurring

3 Incomplete satisfaction

2 Problem avoidance

4 Mixed approach-avoidance

Buyer likes some things about product but dislikes others: tries to find product that will resolve the conflict Drive maintenance

Mildly negative origin

5 Normal depletion

Buyer is simply out of stock or running low: seeks to maintain regular supply of product

Positive origin

Drive increase

6 Sensory gratification

Buyer seeks extra (physiological) stimulation: to enjoy product

7 Intellectual stimulation

Buyer seeks extra (psychological) stimulation: to explore or master new product

8 Social approval

Buyer sees opportunity for social rewards: personal recognition through use of product

Brand Attitude & Product involvement

Hi Involvement or Low Involvement? Involvement is determined by
Economic Risk Psycho-social Risk

Low Involvement when BOTH risks are low, as perceived by majority of TG Else Hi Involvement

So, FOUR Brand-Attitude strategies emerge

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Four Quadrants of message strategy

Q1
Low Involvement Informational Products
Here, correct emotional portrayal is not quite as important as benefit-claim support

Lets see some detergents, Healthsoaps ads

Q2
Low involvement, Transformational product
Here, correct emotional portrayal takes precedence over benefit-claim supports

Lets see some Cola ads!

Q3
Hi Involvement Informational Products
Here, strategy is heavily loaded towards the benefit claims supports

Lets see some Laptop, Software, Cargo Vehicle ads

Q4
HI Involvement Transformational products
Here, Emotional authenticity is paramount and should be tailored to lifestyle groups within the TG

Lets see some Holidaydestinations, Luxury Brands ads

IMC Challenge No 2
WHERE to Say The Brand-contact/ Channel strategy

Changing Mediascape
100% 80% 60% 40% 20% 0%
18 00 19 20 19 50 19 70 19 90 20 02 20 06 20 10
Analog TV
Mobile Phones &
time spent texting PDAs Gaming Broadband PVRs etc. Video on demand

Source: Coca Cola

Print - 5000BC Cinema 1870's Analog TV 1930's

Outdoor - 1200's Radio - 1920's Internet 1980's

Mass Media: Size & Share

Source: Pitch-Madison Media Advertising Outlook 2007

Television Viewership Share

Source: Pitch-Madison Media Advertising Outlook 2007

IMC Channel Relevance Index (IMC CRI)

The IMC CRI

Start by developing an inventory of all possible brand contacts. Conduct consumer research Analyze & score the relevance of brand contacts by evaluating:
Credibility Capability Coverage Costs

IMC CRI Analysis for 8 channels

TV Ads Newspaper Ads Magazine Ads Direct Marketing Sales Promotions PR Events WOM

Q 1: TV, Sales Promotion are key

5 4.5 4 3.5 TV Ads Newspaper Ads Magazine Ads Direct Marketing Sales Promotion PR Events WOM

RATINGS

3 2.5 2 1.5 1 0.5 0 Q1 (Problem-Solution) TOOLS

Q 2: TV, Promotion, Mags, important

IMC TOOLS RELEVANCE INDEX
5 4.5 4 3.5 TV Ads Newspaper Ads Magazine Ads Direct Marketing Sales Promotion PR Events WOM

RATINGS

3 2.5 2 1.5 1 0.5 0 Q2 (Emotional Potrayal of "Little Pleasures of Life") TOOLS

Q 3: DM, B2B Events, PR, WOM Key. TV not important

IMC TOOLS RELEVANCE INDEX
5 4.5 4 3.5 TV Ads Newspaper Ads Magazine Ads Direct Marketing Sales Promotion PR Events WOM

RATINGS

3 2.5 2 1.5 1 0.5 0 Q3 (Selling Solution for a Key need) TOOLS

Q 4: WOM, Events, PR, Mags imp. Sales Promo not relevant

IMC TOOLS RELEVANCE INDEX
5 4.5 4 3.5
RATINGS

TV Ads Newspaper Ads Magazine Ads Direct Marketing Sales Promotion PR Events WOM Q4 (Lifestyle depiction) TOOLS

3 2.5 2 1.5 1 0.5 0

Brand Contacts
NOKIA knows the game

Other communication channels

Best practices

Design as communication
Good design communicates about product Quality Creates Buzz Important attribute for conspicuousconsumption products Product is the medium

Auto Design has come a long way From Rajdoot to Blaze, Pulsar, Gladiator

Samsung believes Design is key to market success Design greatly influenced success of MotoRAZR. Now, Pebble! Story of iPod & Mac is well known

Maruti sold 61,200 Swifts in first year of launch. Swift is the first vehicle under the Maruti marquee to be marketed on design & style

Consumption Experience

Oxford Book Store, Delhi

Sports Marketing
Size estimated to be Rs 800 crores in 2005 Over a dozen specialist sports marketing companies in fray Cricket, Soccer, Golf, Tennis, Marathon, Motor Sports are Top 5 Sports StanCharts usage of Mumbai Marathon was a landmark

Celebrity Endorsements
A View

The vast sea of sameness!

Amitabh Bachchan endorses 38 brands, Shah Rukh Khan 33 brands, M S Dhoni 23 brands.

Music, Nokia and Rehman: A melody

GlamGirl & high spirits: A perfect fit