Books Recommended
Integrated Marketing Communications
Advertising
Promotions
Session Coverage
Integrated Marketing Communications
Importance and Role of Marketing Communication
Developing Effectiv...
Marketing Communications

The means by which firms attempt to
inform, persuade, and remind
consumers, directly or indirect...
Corporate Image
 I don’t know who you are
 I don’t know your company
 I don’t know your company’s products
 I don’t kn...
Communication Objectives

Marketing Communication
Or Promotion

Seeks to

Modify behavior or reinforce
Existing behavior

...
Marketing Communications
Inform

Persuade

Remind

New Products, pack,
feature benefits etc.

To buy now

Maintain brand
a...
Communication Mix TYPES
Communication Mix

Personal

Non-Personal

Personal Selling
Advertising

Media

Direct Response

P...
Elements of I.M.C Mix
Tools that a company uses to pursue it’s
advertising & marketing objectives.
 Advertising
Any paid ...
Relevance of the IMC Elements
 Advertising
-

-

When product is widely distributed
Market is large & spread out
Demo is ...
Relevance of the IMC Elements (contd…)
 Sales promotion
-

When short-term gains are desired
New product requires to indu...
Communication Platforms
Advertising
• Print and broadcast ads
• Packaging inserts
• Motion pictures
• Brochures and bookle...
Communication Platforms
Personal Selling
• Sales presentations
• Sales meetings
• Samples
• Fairs and trade shows

Direct ...
Communication Platforms
Public Relations
• Press kits
• Speeches
• Seminars
• Annual reports
• Charitable donations
• Publ...
Elements in the Communications Process
Media, Local News
Salesperson,
Retail Store etc

Receiver
Interpretation of
message...
Response Hierarchy Models

Learn

Feel

Do
AIDA and the Promotional Mix
Awareness

Interest

Desire

Action

Advertising

Very
effective

Very
effective

Somewhat
ef...
Response Hierarchy Models
Learn
Feel
Do
High
Involvement

Learn
Do
Feel
High
Involvement

More
Differentiation

Little OR ...
Steps in Developing Effective
Communications
Identify target audience
Determine objectives
Design message/communications

...
Developing Effective Marketing
Communications
• Step 1: Identifying the target audience
– Includes assessing the audience’...
Developing Effective Marketing
Communications

• Step 4: Selecting Communication Channels
– Personal communication channel...
Developing Effective Marketing
Communications
• Step 5: Establishing the Marketing
Communications Budget
– Affordability m...
MONEY : Allocating Budgets

Establishing IMC Budget
•
•
1.
2.
3.

One of the most difficult decisions:
Methods:
Affordable...
•Advertising
-Development and
Management
-Decisions on Media and
Measurement
What is Advertising?
Advertising is Any Paid Form of Nonpersonal Presentation and Promotion of
Ideas, Goods, or Services b...
Major Media Types
•
•
•
•

Television
Newspapers
Radio
Magazines

•
•
•
•
•
•
•

Outdoor
Yellow Pages
Newsletters
Brochure...
Characteristics of Leading Media
Advertizing- (I)-Television
Advantages
• Ability to reach broad
segments of consumers
• L...
Characteristics of Leading Media
Advertizing- (II)-Newspapers
Advantages
Disadvantages
• Considered
• Life is Only ONE DAY...
Characteristics of Leading Media
Advertizing- (IV)-Magazines
• Very sharply defined audience to consumers
• Longest Life
•...
Print Ad Components

Picture

Headline
Copy
Signature
Characteristics of Leading Media
Advertizing- (III)-Radio
Advantages
Disadvantages
• Local Medium
• Sound Only and Ads
may...
Alternative Advertising Options
Place Advertisement or out of home
advertisement

•
•
•
•

Billboards
Public spaces
Produc...
Problems in Communicating to the Rural
Audience
• Large variations in language and culture
• Campaigns have to be tailor m...
Developing the Advertising Plan
• The 5 M’s of Advertising

Mission – setting advertising & sales growth
objectives
Money ...
The Five M’s of Advertising
MISSION : Defining the objectives
Possible objectives
• To inform
–
-

• To persuade

-

• To remind

-

informing the mar...
Factors to Consider in Setting an
Advertising Budget
Stage in the product life cycle
Market share and consumer base
Compet...
MONEY : Allocating Budgets
•
•

One of the most difficult decisions:
Methods:

– Affordability method
– Percentage-of-sale...
Message: Deciding Content
Advertising can take either an emotional route or a
rational route to convey the message.
Concep...
Message-Appeals
• Rational Appeals: Strong Claim supported
by numbers.
• Radio Mirchi “India’s 2nd largest channel is
not ...
Message-Appeals Cont…
•
•
•
•
•

Emotional Appeals:
“ A Gift for someone you love”
Kingfisher Airlines
Fly Kingfisher this...
Message-Appeals Cont…
• Humour Appeals: Important clutter breaker
• Newsweek (Times Magazine):
• “ If your Ad doesn’t work...
Informational Appeals
•
•
•
•

Elaborates of product/service benefits:
Saridon stops headache pain quickly
Product demonst...
Media: Selecting Appropriate Media
Media options are:
 Print Media  Audio visual  Outdoor
 Data bases  Direct mail -
...
Media Selection
•
•
•
•

Reach
Frequency
Impact
Exposure
Relationship among Trial, Awareness,
and the Exposure Function
Measures of Audience Size
TRP Ratings
•
•
•
•

Circulation
Audience
Effective audience
Effective ad-exposed
audience
Classification of Advertising
Timing Patterns
Product Launch Communications Mix
Kleenex allocated its
communications:
•75% Television
•23% Print
•2% Online
MEASUREMENT
Evaluating Advertising Effectiveness
•

Communication Effect Research
1.
–
–
–

Consumer feedback method:
Main...
Current Consumer States for
Two Brands
PROMOTION
Sales Promotion
Publicity
Public Relations
Sales Promotion

Collection of incentive tools, mostly
short term, designed to stimulate
quicker or greater purchase
of pa...
Sales Promotion-Examples
• Exchange your new car, get loyalty points
• Buy a Chocolate, win free trip to
Switzerland
• Buy...
Sales Promotion Tools
Consumer-directed
• Free Samples
• Coupons
• Cash refund offers
• Price offs
• Premiums
• Product Wa...
Sales Promotion Tools

• Consumer promotion tools
– Sampling – Free amount of Product
– Couponing – Entitles bearer to sta...
Sales Promotion Tools
•

•

•

Consumer promotion tools
– Sampling – to induce trial
– Couponing – to induce repeat buying...
Public Relations
•
•
•
•
•
•

Press relations
Product publicity
Corporate communications
Lobbying
Counseling
Lobbying: Dea...
Major Tools in Marketing PR
•
•
•
•
•
•

Publications
Events
Sponsorships
News
Speeches
Public Service
Activities
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Promotion decisions 29-10-13

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Promotion decisions 29-10-13

  1. 1. Books Recommended
  2. 2. Integrated Marketing Communications Advertising Promotions
  3. 3. Session Coverage Integrated Marketing Communications Importance and Role of Marketing Communication Developing Effective Communication Deciding upon Marketing Communication Mix  Advertising Developing and Managing advertising Decision on media and measurement  Promotion Sales Promotions Publicity Public Relations
  4. 4. Marketing Communications The means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell.
  5. 5. Corporate Image  I don’t know who you are  I don’t know your company  I don’t know your company’s products  I don’t know what your company stands for  I don’t know your company’s customers  I don’t know your company’s record  I don’t know your company’s reputation Now what was it you wanted to sell? Anonymous
  6. 6. Communication Objectives Marketing Communication Or Promotion Seeks to Modify behavior or reinforce Existing behavior Seeks to Inform, persuade or remind the Target markets about the firm’s offering
  7. 7. Marketing Communications Inform Persuade Remind New Products, pack, feature benefits etc. To buy now Maintain brand awareness & recall Difference with respect Switching from to competitors competitors by giving them clear reason Outlets where brands are available Persuade to stay loyal with the brand Product will be needed in near future Foreg: Seasonal products.. AC, Fans, Ice-cream, Cold drinks Pricing offered in market Occasion of Use How product works where to buy the product Correct a –ve perception
  8. 8. Communication Mix TYPES Communication Mix Personal Non-Personal Personal Selling Advertising Media Direct Response Promotions Consumer Trade
  9. 9. Elements of I.M.C Mix Tools that a company uses to pursue it’s advertising & marketing objectives.  Advertising Any paid form of non-personal promotion by an identified sponsor  Personal selling Face to face presentation & selling  Sales promotion Short term incentives to encourage trial or purchase  Public relations Relationship building plan with the outside world to build & protect co’s image  Direct marketing Use of non-personal form of communication to communicate with select customer groups
  10. 10. Relevance of the IMC Elements  Advertising - - When product is widely distributed Market is large & spread out Demo is not an important criteria Literacy levels exist  Personal selling - - Information needs are high Product is complex Customers are few & reachable Employing push strategy
  11. 11. Relevance of the IMC Elements (contd…)  Sales promotion - When short-term gains are desired New product requires to induce trial Brand switchers are to be targeted  Public relations - Long term relationships are targeted Building public opinion Pre-event hype is required  Direct marketing - Well defined target market Service & relationships are crucial
  12. 12. Communication Platforms Advertising • Print and broadcast ads • Packaging inserts • Motion pictures • Brochures and booklets • Posters • Billboards • POP displays • Logos • Videotapes Sales Promotion • Contests, games, sweepstakes • Premiums • Sampling • Trade shows, exhibitions • Coupons • Rebates
  13. 13. Communication Platforms Personal Selling • Sales presentations • Sales meetings • Samples • Fairs and trade shows Direct Marketing • Catalogs • Mailings • Telemarketing • Electronic shopping • TV shopping • Fax mail • E-mail • In formals
  14. 14. Communication Platforms Public Relations • Press kits • Speeches • Seminars • Annual reports • Charitable donations • Publications • Lobbying
  15. 15. Elements in the Communications Process Media, Local News Salesperson, Retail Store etc Receiver Interpretation of message M. Manager Ad, Sales presentation, Ad. Manager Store display Ad. Agency News Articles Market Research Other Advertisements Sales Results Other store displays Customers, listeners, viewers
  16. 16. Response Hierarchy Models Learn Feel Do
  17. 17. AIDA and the Promotional Mix Awareness Interest Desire Action Advertising Very effective Very effective Somewhat effective Not effective Public Relations Very effective Very effective Very effective Not effective Somewhat Somewhat effective effective Very effective Very effective Somewhat effective Very effective Somewhat effective Sales Promotion Personal Selling Very effective
  18. 18. Response Hierarchy Models Learn Feel Do High Involvement Learn Do Feel High Involvement More Differentiation Little OR No Little Differentiation Differentiation Airline ticket, Salt, Batteries Personal Comp. House, Automobiles Do Learn Feel Low Involvement By understanding and choosing right sequence, We can do a better job in M. Communications
  19. 19. Steps in Developing Effective Communications Identify target audience Determine objectives Design message/communications Select channels Establish budget Decide on media mix Manage IMC
  20. 20. Developing Effective Marketing Communications • Step 1: Identifying the target audience – Includes assessing the audience’s perceptions of the company, product, and competitors’ company/product image • Step 2: Cognitive, affective, and behavioral objectives may be set • Step 3: AIDA model guides message design
  21. 21. Developing Effective Marketing Communications • Step 4: Selecting Communication Channels – Personal communication channels • Effectiveness derives from personalization and feedback – Non-personal communication channels • Influence derives from two-step flow-ofcommunication process
  22. 22. Developing Effective Marketing Communications • Step 5: Establishing the Marketing Communications Budget – Affordability method – Percentage-of-sales method – Competitive-parity method – Objective-and-task method
  23. 23. MONEY : Allocating Budgets Establishing IMC Budget • • 1. 2. 3. One of the most difficult decisions: Methods: Affordable Method: Completely ignores impact on sales volume, Leads to uncertain annual budget, long term planning difficult. Percentage of sale method Competitive parity method: In line with competition • 4. Competitors expenses represent collective wisdom on industry Objective and task Method: Define specific objectives – Establish market share goals (50 Lakh potential users, we can attract 25%) – %age of aware prospects that should be persuaded to buy this year. Step 6: Deciding on the Marketing Communications Mix
  24. 24. •Advertising -Development and Management -Decisions on Media and Measurement
  25. 25. What is Advertising? Advertising is Any Paid Form of Nonpersonal Presentation and Promotion of Ideas, Goods, or Services by an Identified Sponsor.
  26. 26. Major Media Types • • • • Television Newspapers Radio Magazines • • • • • • • Outdoor Yellow Pages Newsletters Brochures Telephone Internet Direct mail
  27. 27. Characteristics of Leading Media Advertizing- (I)-Television Advantages • Ability to reach broad segments of consumers • Low cost per exposure • Ability to demonstrate product use • Ability to portray image and brand personality Disadvantages • Brief • High cost of production • High cost of placement • Lack of attention by viewers
  28. 28. Characteristics of Leading Media Advertizing- (II)-Newspapers Advantages Disadvantages • Considered • Life is Only ONE DAY Informational • Weak Reproduction • Most people look upon Quality as compared advertising +vely. to magazines • Broad coverage of local market • Flexible-Space need not be reserved in advance
  29. 29. Characteristics of Leading Media Advertizing- (IV)-Magazines • Very sharply defined audience to consumers • Longest Life • Strong Message to target customers.
  30. 30. Print Ad Components Picture Headline Copy Signature
  31. 31. Characteristics of Leading Media Advertizing- (III)-Radio Advantages Disadvantages • Local Medium • Sound Only and Ads may easily be turned • Large number of stations out and their distinct positions (Well • Clutter is an issue as Segmented) many ads compete for consumer attention • Low Cost if message frequency is well defined
  32. 32. Alternative Advertising Options Place Advertisement or out of home advertisement • • • • Billboards Public spaces Product placement Point-of-purchase Public Spaces: Movies, Airlines, Sports Arenas, Kiosks, public areas etc
  33. 33. Problems in Communicating to the Rural Audience • Large variations in language and culture • Campaigns have to be tailor made for product and region • Product demonstrations in haats, mandis, and melas (fairs) are useful • TV and print media do not reach all villages and all customers • Wall paintings and signboards very popular • Folk theatre, magic shows and puppet shows are also used as a media vehicle
  34. 34. Developing the Advertising Plan • The 5 M’s of Advertising Mission – setting advertising & sales growth objectives Money – budgeting the allocation of resources Message – deciding the content & form Media – media vehicles to be used, frequency & timing Measurement – evaluating the impact of communication & it’s effect on sales
  35. 35. The Five M’s of Advertising
  36. 36. MISSION : Defining the objectives Possible objectives • To inform – - • To persuade - • To remind - informing the market about a new product/service suggesting new uses building brand/company image building primary demand generate interest amongst trade/consumers build brand preference induce brand switching persuade to buy now maintain Top of the mind Recall keeping customers informed about availability & improvements
  37. 37. Factors to Consider in Setting an Advertising Budget Stage in the product life cycle Market share and consumer base Competition and clutter Advertising frequency
  38. 38. MONEY : Allocating Budgets • • One of the most difficult decisions: Methods: – Affordability method – Percentage-of-sales method – Competitive-parity method – Objective-and-task method
  39. 39. Message: Deciding Content Advertising can take either an emotional route or a rational route to convey the message. Concept of USP  Each advertisement must make a specific proposition to the consumer : Buy this product & you will get this benefit.  The proposition must be one that competition either cannot or does not offer: It must be unique.  The proposition must be so strong that it can: Pull new customers to your product.
  40. 40. Message-Appeals • Rational Appeals: Strong Claim supported by numbers. • Radio Mirchi “India’s 2nd largest channel is not seen, it is heard”. (TRP) • Zodiac “ Why Zodiac makes best shirts in India” Fabric, Stitching, buttons, Collars, Style and Comfort, Customer Satisfaction. • Complan “23 vital nutrients” • Maggi 2-Minute Noodles
  41. 41. Message-Appeals Cont… • • • • • Emotional Appeals: “ A Gift for someone you love” Kingfisher Airlines Fly Kingfisher this season for good times Because Queen of your heart deserves to fly like one • To make someone feel like she is on cloud nine
  42. 42. Message-Appeals Cont… • Humour Appeals: Important clutter breaker • Newsweek (Times Magazine): • “ If your Ad doesn’t work in TM, Change your Ad Agency” • “ If your Ad doesn’t work in TM,DON’T Change your Ad Agency” Place it in Newsweek. • Negative Appeals: Fear, Guilt, Shame • Fear Appeals: • “Today a picture of safety, tomorrow a picture of disaster”
  43. 43. Informational Appeals • • • • Elaborates of product/service benefits: Saridon stops headache pain quickly Product demonstration ads Transformational Appeals (Non product related benefits or image) • Kind of person or kind of experience results from using of brand • Liril (Freshness Soap), Mentos (electrify your mind, (Raymonds-A complete man)
  44. 44. Media: Selecting Appropriate Media Media options are:  Print Media  Audio visual  Outdoor  Data bases  Direct mail - Newspapers/magazines Radio/TV/internet Hoardings/bus panels/kiosks/banners Yellow pages/trade directories Brochures/leaflets/newsletter Selecting specific media:  Circulation/ readership/ viewer ship  Reach-penetration  Feasibility  Cost  Visibility vs. clutter
  45. 45. Media Selection • • • • Reach Frequency Impact Exposure
  46. 46. Relationship among Trial, Awareness, and the Exposure Function
  47. 47. Measures of Audience Size TRP Ratings • • • • Circulation Audience Effective audience Effective ad-exposed audience
  48. 48. Classification of Advertising Timing Patterns
  49. 49. Product Launch Communications Mix Kleenex allocated its communications: •75% Television •23% Print •2% Online
  50. 50. MEASUREMENT Evaluating Advertising Effectiveness • Communication Effect Research 1. – – – Consumer feedback method: Main Message you get from is Ad What works well and what works poorly? Which is the best place to reach you with this message? 2. Portfolio Tests: Asked to view and listen to many Ads (Asked to recall all Ads and its content. 3. Lab Tests: Physiological reactions (Heartbeat, BP Etc) Asked to turn a knob to indicate their liking or disliking moment by moment.
  51. 51. Current Consumer States for Two Brands
  52. 52. PROMOTION Sales Promotion Publicity Public Relations
  53. 53. Sales Promotion Collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.
  54. 54. Sales Promotion-Examples • Exchange your new car, get loyalty points • Buy a Chocolate, win free trip to Switzerland • Buy one, get TWO free • Reward of 5% for paying your bills with us • Clearance sales, rock bottom prices • Scratch and Win, get lucky with our sweepstakes.
  55. 55. Sales Promotion Tools Consumer-directed • Free Samples • Coupons • Cash refund offers • Price offs • Premiums • Product Warranties • Patronage Awards • Tie-in promotions Trade-directed • Temporary Price Cuts • Renting Shelf space • Cooperative advertising • Volume Discounts • Contests
  56. 56. Sales Promotion Tools • Consumer promotion tools – Sampling – Free amount of Product – Couponing – Entitles bearer to stated saving on specific product – Cash Refund Offer (Rebate) – Price reduction after purchase rather than at retail shop. – Premiums – Product offered at low cost or free as an incentive to purchase particular product. – Patronage awards – Value in cash or other form if you purchase things from certain vendor or group of vendors. – Product Warranties- Promises by sellers that product will perform as specified or they will replace/repair/refund it.
  57. 57. Sales Promotion Tools • • • Consumer promotion tools – Sampling – to induce trial – Couponing – to induce repeat buying – Price-offs – to induce brand switching – Premiums – to induce preponement of purchase – Patronage awards – to reward loyalty/ retain customers – Contests – to induce immediate purchase Trade promotion tools – Discounts on list prices – Free goods offers – Promotional allowances – Gifts Business promotion tools – Trade shows & Conventions – Sales contests for sales personnel
  58. 58. Public Relations • • • • • • Press relations Product publicity Corporate communications Lobbying Counseling Lobbying: Dealing with Lawmakers/Government Officials to defeat law. • Counseling: Ad Management about public issues, company position and image in good/bad times.
  59. 59. Major Tools in Marketing PR • • • • • • Publications Events Sponsorships News Speeches Public Service Activities
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