Role of IMC in Marketing Process

INTEGRATED MARKETING COMMUNICATION

CHAPTER 2

Before we start with what integrated marketing communication is, let's understand how formulation and implementation of marketing strategy works. The flowchart below summarizes the whole process of making a marketing strategy plan.

Marketing and Promotions Process Model

The first step involves opportunity and competitor analysis. Opportunity analysis deals with studying the following:

1. Market growth
2. Market size
3. Dynamics of market

Whereas competitor analysis involves studying competitors in the market a firm is in. Competition can be either direct or indirect. Direct  competition is from other firms involving same product as ourselves whereas indirect competition is the competition from substitute products.

Example of direct competition will be Pepsi and Coke whose rivalry  has led to many strategic promotions and campaigns. Indirect competition is from substitute products for example Canon might feel threatened if customers start purchasing camera phones to click pictures instead of digital cameras and so might take Nokia and Samsung also as its competitors.

Then we come to the activity of 'Target Market'. It refers to the process a company goes through to decide which it decides which product to produce and what services to provide. Also, which industry they are entering with their product and service.

Then we come to the stage of target marketing process. It involves the following stages:
1. Segmenting
2. Targeting
3. Positioning

Story of Nike

It started with a handshake between two visionary Oregonians - Bowerman and his University of Oregon runner Phil Knight. They and the people they hired evolved and grew the company that became Nike from a U.S.-based footwear distributor to a global marketer of athletic footwear, apparel and equipment that is un-rivaled in the world.

Nike's products focus on providing high quality running shoes designed especially for athletes by athletes. So for marketing, they relied on "pyramid of influence" where product and brand choices were were influenced by the preference and behaviour of a small percentage of top athletes like Michael Jordan.

Ad campaigns use the tagline of "Just do it". The campaigns are featured using the following channels:

1. Advertising - TV ads
2. Advertising - Billboards and hoardings
3. Sponsorship of events like Olympics
4. Product placement by providing free merchandise for the movie crew
5. Word of mouth

Also, it used ambush marketing in Olympics which was a good hit and drove great number of trials and awareness points among the audience. They even  sponsored an event at the centre of stage in Olympics which drew great crowd and was also given high coverage in the broadcasting of the sports.

Lately, due to increasing social and environment awareness among customers, many companies are moving towards green marketing which means they try showcase their products as environmentally and socially sustainable and non detrimental.

Nike's in its ad campaigns focus on its point of differences. Point of difference are attributes or benefits consumers strongly associate with a brand, positively evaluate and believe they could not find to the same extent with a competitive brand. In case of Nike, point of difference is performance. Hence, its advertisements showcase high performing athletes and sports persons to endorse their products.

As for push and pull strategy, it employs both push and pull strategies. Since, marketing activities directed towards the channel as part of a push strategy are more effective when accompanies by a well-designed and well-executed pull strategy that activates consumer demand. Without at least some consumer interest, it can be very difficult to gather much channel acceptance and support.