7db3a integrated communications


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7db3a integrated communications

  1. 1. Managing the Integrated CommunicationWhat is communication? Setting of communicationobjectives, identifying target audience, modes ofcommunication, designing message, choosing tool forcommunication, Media decisions, evaluating variousmedia,Advertising management, Advertisement management,Managing sales promotions, evaluating results, integratingthe entire communication, role of public relations andpublicity, significance and managing communicationthrough direct marketing and personnel selling, role ofinternet marketing, emerging communication trends. 1
  2. 2. “Science of tough cleaning”means that its concept isbased on the oxidization thatoxidizes the stains 2
  3. 3. PromotionsMahinder singh Dhoni (45%) 24 Brands Shahrukh khan 16 Brands Sachin Tendulkar 15 Brands - Adex Survey of TAM ResearchKareena kapoor, Sonam kapoor, Kajol, Aishwarya Rai were the most popular faces.Bollywood Actors (42%) & Sports personality (10%)are associated for the celebrity endorsements on TV.Top 5 categories endorsed by celebrities are:Aerated soft drinks, Cellular phone services, Toilet Soaps,Shampoos & Tele Vision.Brands endorsed by celebrities are:Lux, Pepsi, Airtel, Panasonic, Coca- cola. 3
  4. 4. • Emami is making Bipasha Basu as their brand ambassader.• Boroplus Amitabh Bachan• Navratan Oil SRK• Zandu Balm Mallaika Arora khan (45- 50%) 4
  5. 5. Dabur India has ropedin Ravi Kishan to endorseChawanprash brandsfor localized promotions.(UP & Bihar)Mr.Amitabh Bachchan &Mr. Dhoni for nationalCampaigns.Airtel, Parle Monaco,Marico Thanda Telhad also signed himFor promotions. 5
  6. 6. • E-coupon 20-25 Crore market in total $1 bn advertising market.• Sms, Emails, Snap deal.com,Open 2save.com, Dealpals, Coupon seva.• Kellogg’s chocos Rs 10 range (K-pak) is a low fat product with the goodness of wheat, vitamins and minerals. Roped Karishma kapoor for endorsement.• They also tied up with Mobile 2 win for mobile gaming. Choco race for Kellogg’s chocos. It is instant hit for target group (6-14 yrs of kids). 6
  7. 7. Mr Anupam Dutta MD ofKellogg’s is hopeful ofincreasing their market sharein breakfast cereals in India. 7
  8. 8. • Promotion: function of informing, persuading, and influencing the consumer’s purchase decision• Marketing Communications: transmission from a sender to a receiver of a message dealing with the buyer-seller relationship 8
  9. 9. Marketing Communications The means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell. 9
  10. 10. Elements in the Communications Process• Sender• Message• Receiver• Response• Feedback• Noise 10
  11. 11. The Communications Process• An effective promotional message accomplishes three tasks: – It gains the receiver’s attention – It achieves understanding by both receiver and sender – It stimulates the receiver’s needs and suggests an appropriate method of satisfying them 11
  12. 12. • AIDA concept (Attention-Interest- Desire-Action) – an explanation of the steps through which an individual reaches a purchase decision – Sender – Encoding – Channel – Decoding – Response – Feedback – Noise 12
  13. 13. 13
  14. 14. The Communications Process• Selective attention• Selective distortion• Selective retention 14
  15. 15. Objectives of Promotion• Provide Information – Inform the market about the availability of a particular good or service• Increase Demand – Some promotions are aimed at increasing primary demand, the desire for a general product category – More promotions are aimed at increasing selective demand, the desire for a specific brand 15
  16. 16. • Differentiate the Product – Homogenous demand for many products results when consumers regard the firm’s output as virtually identical to its competitors’– then, the firm has virtually no control over marketing variables• Accentuate the Product’s Value – Promotion can explain the greater ownership utility of a product to buyers, thereby accentuating its value and justifying a higher price 16
  17. 17. • Stabilize Sales – For the typical firm, sales fluctuations may result from cyclical, seasonal, or irregular demand – Stabilizing these variations is often an objective of promotional strategy 17
  18. 18. Elements of the Promotional Mix• Promotional mix: blend of personal selling and non personal selling designed to achieve promotional objectives – Personal selling: interpersonal promotional process involving a seller’s person-to-person presentation to a prospective buyer – Nonpersonal selling includes: Advertising, Product placement, Sales promotion, Direct marketing, Public relations 18
  19. 19. • Advertising – Paid, nonpersonal communication through various media by a business firm, not-for-profit organization, or individual identified in the message with the hope of informing or persuading members of a particular audience• Product Placement – Marketer pays a motion picture or television program owner a fee to display his or her product prominently in the film or show 19
  20. 20. • Sales Promotion – Marketing activities that stimulates consumer purchasing (includes: displays, trade shows, coupons, premiums, contests, product demonstrations, and various non recurrent selling efforts) – Trade promotion 20
  21. 21. • Direct Marketing – Direct communications other than personal sales contact between buyer and seller, designed to generate sales, information requests, or store visits 21
  22. 22. • Public relations: firm’s communications and relationships with its various publics• Publicity: stimulation of demand for good, service, place, idea, person, or organization by unpaid placement of commercially significant news or favorable media presentations 22
  23. 23. Sponsorships• Provision of funds for a sporting or cultural event in exchange for a direct association with the events or activity 23
  24. 24. A significant number of premium car buyerstoday use online channels to become familiar with the features of a car even before they step into the showrooms .2-3% of sales from digital marketing in 2005. 18-20% of sales from digital marketing in 2010. 24
  25. 25. • Tata Motors will launch premium car “ARIA”. Priced at rs 12-13 lakh.• Competitors Xylo, Innova.• Company will invest Rs.1.5 cr in online campaign (Online game at buildadreamcar.com) in five stages. 25
  26. 26. • Stallio 110 cc bikes priced at Rs.44,699.• Mozo 390 cc bikes priced at Rs.1.79 lakh.• Competitors are Hero Honda, Bajaj Auto.• In 2008, M & M acquired Kinetic motors and launched Rhodeo scooters.Two wheelers sales during april-august 2010 jumped 27%at 46.21 lakh units & Bikes grew at 35.35 lakh units (24% jump)• Aamir Khan as brand ambassador. 26
  27. 27. Characteristics of Marketing Communications MixAdvertising Sales Promotion• Pervasiveness • Communication• Amplified • Incentive expressiveness • Invitation• Impersonality 27
  28. 28. Characteristics of Marketing Communications MixPublic Relations and Events and Publicity Experiences• High credibility • Relevant• Ability to catch buyers • Involving off guard • Implicit• Dramatization 28
  29. 29. Characteristics of Marketing Communications MixDirect Marketing Personal Selling• Customized • Personal interaction• Up-to-date • Cultivation• Interactive • Response 29
  30. 30. The Battle• Future group operates over 120 Big Bazaar stores, 170 Food Bazaar stores.• Future group’s ecommerce venture future bazaar.com has revamped its online business portfolio (Started 4 years ago) and expects an around Rs 1,000 crore revenue over the next 18-24 months.• Attractive deals are available on TVs, phones, laptops, apparels, home, kitch en appliances and home furnishings. 30
  31. 31. Integrated Marketing Communications• Coordination of all promotional activities – media advertising, direct mail, personal selling, sales promotion, and public relations – to produce a unified customer-focused promotional message – Success of any IMC program depends critically on identifying the members of an audience and understanding what they want 31
  32. 32. Developing an Optimal Promotional Mix• Factors that influence the effectiveness of a promotional to mix: – Nature of the market – Nature of the product – Stage in the product life-cycle – Price – Funds available for promotion 32
  33. 33. 33
  34. 34. • Nikon corporation will spend Rs.62 crore on brand promotion in 2010-11.• Nikon India will launch its new television commercial this week & is targeting 1800 retail outlets for in-store branding.• Company has converted 70-80% of grey marketer into authorized Nikon camera dealers. 34
  35. 35. Influencing Factors Personal Selling AdvertisingNature of the market Limited number Large number Number of buyers Concentrated Dispersed Geographic Business purchaser Ultimate consumer concentration Type of customerNature of the product Custom-made, complex Standardized Complexity Considerable Minimal Service Business Consumer requirements Type of good or Trade-ins common Trade-ins uncommon service Use of trade-insStage in the product life Often emphasized at every stage; Often emphasized at everycycle heavy emphasis in the introductory stage; heavy emphasis in the and early growth stages in latter part of the growth stage, acquainting marketing as well as the maturity and intermediaries and potential early decline stages, to consumers with the new good or persuade consumers to select service specific brandsPrice High unit value Low unit value 35
  36. 36. Pulling and Pushing Promotional Strategies• Pulling strategy: promotional effort by a seller to stimulate demand among final users, who will then exert pressure on the distribution channel to carry the good or service, pulling it though the marketing channel• Pushing strategy: promotional effort by a seller to members of the marketing channel intended to stimulate personal selling of the good or service, thereby pushing it through the marketing channel 36
  37. 37. Communication PlatformsAdvertising Sales Promotion• Print and broadcast ads • Contests, games• Packaging inserts • Premiums• Motion pictures • Sampling• Brochures and booklets • Trade shows, exhibits• Posters • Coupons• Billboards • Rebates• POP displays • Entertainment• Logos • Continuity programs• Videotapes • Tie-ins 37
  38. 38. Communication PlatformsEvents/ Experiences Public Relations• Sports • Press kits• Entertainment • Speeches• Festivals • Seminars• Arts • Annual reports• Causes • Charitable donations• Factory tours • Publications• Company museums • Community relations• Street activities • Lobbying • Identity media • Company magazine 38
  39. 39. One in five US Kids aged six to 19 are obese, where BMI is greater than 30.• The Walt Disney company had started “the Magic of healthy living” campaign.• It will feature public service announcements by Michelle Obama, teen idols Nick Jonas, TV Star Brenda Song and other celebrities, all seeking “to inspire kids” to lead healthy lives and their parents to instill good habits in them.• Disney will grant one million dollar to build play spaces and gardens in 10 undeserved communities nationwide. 39
  40. 40. Communication PlatformsPersonal Selling Direct Marketing• Sales presentations • Catalogs• Sales meetings • Mailings• Incentive programs • Telemarketing• Samples • Electronic shopping• Fairs and trade shows • TV shopping • Fax mail • E-mail • Voice mail 40
  41. 41. Figure 17.4 Steps in Developing Effective CommunicationsIdentify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Measure results Manage IMC 41
  42. 42. ImageThe set of beliefs, ideas, and impressions a person holds regarding an object. 42
  43. 43. Communications Objectives• Category need• Brand awareness• Brand attitude• Purchase intention 43
  44. 44. Designing the Communications• Message strategy• Creative strategy• Message source 44
  45. 45. Selecting the Communications Channels• Personal communication channels• Non personal communication channels• Integration 45
  46. 46. Creative Strategy• Informational and transformational appeals• Positive and negative appeals – Fear – Guilt – Shame – Humor – Love – Pride – Joy 46
  47. 47. The Importance of TaglinesBrand Theme Ad Tagline• Our car is more “More Car per Car” (Tata spacious Indica)• It is prestigious to own “Neighbor’s Envy; Owner’s our brand of TV Pride” (Onida TV)• Our butter is tasty and “Utterly Butterly Delicious” fun to eat (Amul Butter)• Our motorbike is fuel “Fill it, shut it, Forget it” efficient (Hero Honda motorcycle) 47
  48. 48. Message SourceCelebrity Characteristics – Expertise – Trustworthiness – Likeability 48
  49. 49. Personal Communications Channels• Advocate Channels• Expert Channels• Social Channels 49
  50. 50. Stimulating Personal Influence Channels• Identify influential individuals and devote extra attention to them• Create opinion leaders• Use community influentials in testimonial advertising• Develop advertising with high “conversation value”• Develop WOM referral channels• Establish an electronic forum• Use viral marketing 50
  51. 51. Non personal Communication Channels• Media• Sales Promotion• Events and Experiences• Public Relations 51
  52. 52. Budgeting for Promotional Strategy • Percentage-of-sales method • Fixed-sum-per-unit method • Meeting competition method • Task-objective method 52
  53. 53. Method Description ExamplePercentage-of- Promotional budget is set as a “Last year we spent $10,500 onsales method specified percentage of either promotion and had sales of $420,000. past or forecasted sales. Next year we expect sales to grow to $480,000, and we are allocating $12,000 for promotion.”Fixed-sum-per-unit Promotional budget is set as a “Our forecast calls for sales of 14,000method predetermined dollar amount for units, and we allocate promotion at the each unit sold or produced. rate of $65 per unit.”Meeting Promotional budget is set to “Promotional outlays average 4competition match competitor’s promotional percent of sales in our industry.”method outlays on either an absolute or relative basis.Task-objective Once marketers determine their “By the end of next year, we want 75method specific, promotional objectives, percent of the area high-school the amount (and type) of students to be aware of our new, highly promotional spending needed to automated fast-food prototype outlet. achieve them is determined. How many promotional dollars will it take, and how should they be spent?” 53
  54. 54. Measuring the Effectiveness of Promotion• Two basic measurement tools: – Direct sales results measures the effectiveness of promotion by revealing the specific impact on sales revenues for each dollar of promotional spending – Indirect evaluation concentrates on quantifiable indicators of effectiveness like: • Recall - how much members of the target market remember about specific products or advertisements • Readership – size and composition of a message’s audience 54
  55. 55. • Measuring Online Promotions – Early attempts at measuring online promotional efforts involved counting hits and visits – Incorporating direct response and comparing different promotions for effectiveness – Two major techniques for setting online advertising rates: • Cost per impression (CPM), technique that related the cost of an ad to every thousand people who read it • Cost per response (click-throughs), which assumes that those who actually click on an ad want more information 55
  56. 56. Factors in Setting Marketing Communications Mix• Type of Product Market• Buyer Readiness to Make a Purchase• Stage in the Product Life Cycle 56