Factors Contributing to IMC
(i) Fragmentation of the mass market
This mass-marketing strategy focuses on what is general in the needs of consumers rather than on what is different. The organization offer single Marketing Mix consists of one type of product with small or no variation, one pricing strategy, one promotion program aimed at every person and one distribution system aimed at the entire market.
(ii) Media Fragmentation
Market fragmentation has resulted in media fragmentation because the of alternative media channels available to the consumer and all messages seen as one single message to consumer. Today’s consumers are being irritated with a bundle of of television channels, and a steady stream of new magazines that hit the newsstands every week. Coupled with rising level of ad dodging and the future for some mass media might seem austere. Therefore advertising has to spread further, covering massive amount of channels to gain the same exposure.
(iii) Explosion of New Technologies
The Technology is evolving today with much speed and has a very disruptive impact on our daily life. Something that has been considered as status symbol today is a myth of past now. Also this explosion allow customer to have greater control over the communication. Consumer can now select what to see, and what to hear more easily as in past.
(iv) Emergence of Global Markets
Due to advent of IT the whole world has collapse to a global village. The culture around the world is merging and a unified culture is emerging. Although this has created some opportunities for organization, but is also posing some potential threat as they need now to be very cautious while designing there promotional programs and unless the promotional program are well coordinated and integrated it will not have any impact on the target market. The global market has also led to increase in advertising mess due more channels and more group placing ad on mass media.
(v) Shifts of Power from Manufacturers to Retailer
The power that historically rests with manufacturer has been shifted to retailer. The retailers due to this power now demands huge promotion fees and can offer better retail information from due to the usage of checkout scanner technology.
(vi) Shifting of Promotion Cost from Advertising to other Forms of Promotion
Due to the increase usage of Internet, growth of customer databases, customer lack of time, companies are moving toward concentrated and niche segmentation, as consumer has the convenience to order what he needs and wants from direct marketers. This had led to change on the percentage of promotion spent on advertising. Traditionally this percentage used to be very high but now as the market conditions are changing it is eroding and taking the form of direct marketing, point of sales activities, online advertising etc.
(vii) Emergence of Lower Cost and More Target Communication Tools
As the traditionally used media tools is losing its impact, the exploration of lower-cost and more targeted communication tools continues. Marketer now have the option to use promotional tools like event marketing and direct mail etc that are more targeted and have less cost as compared to of mass media.
(viii) Development of Database and Relationship Marketing
One of the most important Direct Marketing is the Customer Databases. It is a controlled collection of absolute data about individual customers or prospects, together with geographic, demographic, psychographic, and behavioral data. These databases help companies in influencing and building customer relationships and the organization can also tailor its message or market offering according to the personal needs of the target market.
(ix) Increase Usage of Internet
The usage of Internet around the world is increasing with the passage of time, and this had led to change how a company does its business and how the organization communicate and interact with its target market. Companies around the world are using the Internet as a competitive tool to change how they transact the business. They can a company does business and how they communicate and interact with customers as they can reach prospects at just the right moment and can offers a low-cost, well-organized way to reach markets.
(x) Agency Accountability
The terms and conditions of the relation that the company and agency used to have are changing, due to changes in the competitive setup of the industry. The organization now demands for greater accountability from the advertising agencies and changes in return and incentives of the agency.
(xi) Marketing Strategy Results Measurement
Organization now calls that the activities that the marketing department carries out should be measurements appropriately and expectations from marketing strategy.
(xii) Change in Shopping Approach
The reason behind why the consumer goes for shopping has been change. Traditionally people used to went for shopping in order to get the desired products and/or services from the market. But now the shopping approach has been changed, it is now taking form of freedom and entertainment.
(xiii) Growth of Digital Media
Multi-track media society that is constantly developing and changing with the passage of time has led to advent of digital media. In digital media consumer have extraordinary control over the information and entertainment choice. With new digital media in place, people have thousands of viewing options they can select from.