Marketing Communication and IMC


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Marketing Communication and IMC

  2. 2.  A company’s total promotion mix—also called itsmarketing communications mix—consists of thespecific blend of advertising sales promotion public relations personal selling and direct-marketing tools that the company uses topursue its advertising and marketing objectives.
  3. 3.  Advertising: Any paid form of non-personal presentation andpromotion of ideas, goods, or services by an identifiedsponsor Sales promotion: Short-term incentives to encourage thepurchase or sale of a product or service Public relations: Building good relations with the company’svarious publics by obtaining favorable publicity, building upa good corporate image, and handling or heading offunfavorable rumors, stories, and events Personal selling: Personal presentation by the firm’s salesforce for the purpose of making sales and building customerrelationships Direct marketing: Direct connections with carefully targetedindividual consumers to both obtain an immediate responseand cultivate lasting customer relationships—usingtelephone, mail, fax, e-mail, the Internet, and other tools tocommunicate directly with specific customers.
  4. 4. Copyright © 2009 DorlingKindersley (India) Pvt. Ltd.17-4
  5. 5. Advertising Print and broadcast ads Packaging inserts Motion pictures Brochures and booklets Posters Billboards POP displays Logos VideotapesSales Promotion Contests, games, sweepstakes Premiums Sampling Trade shows, exhibits Coupons Rebates Entertainment Continuity programs
  6. 6. Events/ Experiences Sports Entertainment Festivals Arts Causes Factory tours Company museums Street activitiesPublic Relations Press kits Speeches Seminars Annual reports Charitable donations Publications Community relations Lobbying Identity media Company magazine
  7. 7. Personal Selling Sales presentations Sales meetings Incentive programs Samples Fairs and trade showsDirect Marketing Catalogs Mailings Telemarketing Electronic shopping TV shopping Fax mail E-mail Voice mail Blogs Websites
  8. 8.  Sender: The party sending the message to another party Encoding: The process of putting thought into symbolic form Message: The set of symbols that the sender transmits Media: The communication channels through which themessage moves from sender to receiver Decoding: The process by which the receiver assigns meaningto the symbols encoded by the sender Receiver: The party receiving the message sent by anotherparty Response: The reactions of the receiver after being exposed tothe message Feedback: The part of the receiver’s response communicatedback to the sender Noise: The unplanned static or distortion during thecommuni­cation process that results in the receiver’s getting adifferent message than the one the sender sent.
  9. 9. Identify target audienceDetermine objectivesDesign communications/message<refer next slide>Select channelsEstablish budgetDecide on media mixMeasure results/ manage IMC
  10. 10.  Rational appeals relate to the audience’s self-interest.They show that the product will produce the desiredbenefits. Emotional appeals attempt to stir up either negative orpositive emotions that can motivate purchase.Communicators may use positive emotional appeals such aslove, pride, joy, and humor. Communicators can also usenegative emotional appeals, such as fear, guilt, and shamethat get people to do things they should or to stop doingthings they shouldn’t. Moral appeals are directed to the audience’s sense ofwhat is “right” and “proper.” They are often used to urgepeople to support social causes such as a cleanerenvironment, better race relations, equal rights forwomen, and aid to the disadvantaged.
  11. 11. Affordable: this method of setting budgets completely ignores the effectsof promotion on sales. It tends to place advertising last among spending prioritiesPercentage-of-Sales: It is simple to use, It helps management think aboutthe relationship between promotion spending, selling price, and profit per unitCompetitive Parity: They monitor competitors’ advertising orget industry promotion spending estimates from publications or trade associations,and then set their budgets based on the industry averageObjective-and-Task: the company sets its promotionbudget based on what it wants to accomplish with promotion.
  12. 12.  PUSH STRATEGY: through distribution channels tofinal consumers PULL STRATEGY: the producer directs itsmarketing activities toward final consumers toinduce them to buy the product. factors- type of product/market and the product life-cycle stage
  13. 13.  Introduction stage:Advertising and public relations are good for producing high awareness, andsales promotion is useful in promoting early trial. Personal selling must beused to get the trade to carry the product. In the growth stage:Advertising and public relations continue to be powerful influences, whereassales promotion can be reduced because fewer incentives are needed. In the mature stage:Sales promotion again becomes important relative to advertising. Buyersknow the brands, and advertising is needed only to remind them of theproduct. In the decline stage:Advertising is kept at a reminder level, public relations is dropped, andsalespeople give the product only a little attention. Salespromotion, however, might continue strong.
  14. 14.  Advertising council of India, established in 1985 ASCI code applies to advertisements read, heardor viewed even if they originate in abroad LAWS GOVERNING MEDIA: The Press Council Act 1978 Cable Television Network Rules, 1994 Code for Commercial Advertising on Doordarshan andAll India Radio Electronic Media Monitoring Centre (EMMC) Norms for Journalist Conduct issued by the Press Councilof India Code of Conduct of the News Broadcasters Association
  15. 15.  Laws Protecting Society and the Consumer Emblems and Names (Prevention of Improper Use)Act, 1950 Young Persons (Harmful Publications) Act, 1956 Companies Act, 1956 Standards of Weight & Measures Act, 1976 Indecent Representation of Women (Prohibition)Act, 1986 Consumer Protection Act, 1986 Laws related to intellectual property rights
  16. 16.  Industry-Specific Laws The Drugs and Cosmetic Act, 1940 The Transplantation of Human Organs Act, 1994 The Drugs and Magical Remedies (Objectionable Advertisements)Act, 1954 The Prenatal Diagnostic Techniques (Regulation and Prevention ofMisuse) Act, 1994 Advocates Act, 1961 Infant Milk Substitutes, Feeding Bottles and Infant Foods(Regulation of Production, Supply and Distribution) Act, 1992 Securities and Exchange Board of India Act, 1992 The Prize Chits and Money Circulation Schemes (Banning) Act,1978 Cigarettes and other Tobacco Products (Prohibition ofAdvertisement and Regulation of Trade and Commerce,Production, Supply and Distribution) Act, 2003 Public Gambling Act, 1867, the Lotteries (Regulation) Act, 1998 andthe Prize Competitions Act, 1955 Indian Medical Council (Professional Conduct, Etiquette andEthics) Regulations, 2002 The Food Safety & Standards Act, 2006
  17. 17. Products and Services Banned From Advertising Tobacco The Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation ofTrade and Commerce, Production, Supply and Distribution) Act, 2003 ("Tobacco ProhibitionAct") prohibits all direct and indirect advertising of tobacco products in all media. Human Organs The Transplantation of Human Organs Act, 1994: This law provides for theregulation of removal, storage and transplantation of human organs fortherapeutic purposes and for the prevention of commercial dealings in humanorgans. This law prohibits any advertising inviting persons to supply, offering tosupply, any human organ for payment. Magical Remedies The Drugs and Magical Remedies (Objectionable Advertisements)Act, 1954 prohibits advertisement of magical remedies of diseases and disorders. Services for Pre-Natal Determination of Sex The Prenatal Diagnostic Techniques (Regulation and Prevention of Misuse)Act, 1994 prohibits advertisements relating to pre-natal determination of sex. Infant formula Advertising forbidden in order to encourage natural feeding of infants. Prize Chits and Money Circulation Schemes The Prize Chits and Money Circulation Schemes (Banning) Act, 1978 prohibitsadvertisements relating to prize chit2 and money circulation schemes.
  18. 18.  Professionals such as Chartered Accountants, CompanySecretaries & Cost Accountants: details of names of partners,address and website, telephone, mobile, e-mail, fax number ofthe member, year of establishment, additional recognizedqualifications, languages spoken by the partner(s), honours orawards in the field of teaching, research, authorship etc. Firearms, Weapons, and Ammunition: Arms Act, 1959. Regulations Related to Product and Service Advertising Alcohol (Beer, Wine, and Spirits) The Cable Television Network Rules, 1994, the Advertising Codes ofDoordarshan, and the All India Radio and Norms for JournalistConduct issued by the Press Council of India prohibit anyadvertisement directly or indirectly promoting the production, sale, orconsumption of cigarettes, tobacco products, wine, liquor, or otherintoxicants. Legal Services The Bar Council of India Rules formulated under the Advocates Act1961 strictly enforce the advertisement ban and publicity rulesgoverning law firms websites.
  20. 20. InformativeadvertisingReminderadvertisingReinforcementadvertisingPersuasiveadvertising
  21. 21.  MARKET SHARE PLC DEVELOPINGADVERTISINGSTRATEGY Creating advertisingmessages: clutters,message appeal type, Selecting advertisingmedia MESSAGE EXECUTION CONSUMERGENERATEDMESSAGES Selecting advertising media Deciding onReach, Frequency, andImpact. Choosing Among MajorMedia Types Deciding on MediaTiming Media effectivenessfactors. Audience quality. Audience engagement. Editorial quality.
  22. 22.  Measuring the communication effects of an ad or adcampaign Sales and profits effects of advertising are often harderto measure. small organizations: their own sales department large organizations: advertisement agency Standardization produces many benefits—loweradvertising costs, greater global advertisingcoordination, and a more consistent worldwide image. Global advertisers face several special problems. Advertising media costs and availability differ vastly fromcountry to country. Countries also differ in the extent to which they regulateadvertising practices
  23. 23. Public relations is building good relations with thecompany’s various publics by obtaining favorablepublicity, building up a good corporate image, andhandling or heading off unfavorable rumors, stories,and events.
  24. 24.  Press relations or press agency: Creating and placingnewsworthy information in the news media to attractattention to a person, product, or service. Product publicity: Publicizing specific products. Public affairs: Building and maintaining national or localcommunity relations. Lobbying: Building and maintaining relations withlegislators and government officials to influencelegislation and regulation. Investor relations: Maintaining relationships withshareholders and others in the financial community. Development: Public relations with donors or members ofnonprofit organizations to gain financial or volunteersupport.
  25. 25.  PR professionals find or create favorable news about the companyand its products or people. Speeches can also create product and company publicity. Another common PR tool is special events, ranging from newsconferences, press tours, grand openings, and fireworks displays tolaser shows, hot air balloon releases, multimediapresentations, start-studded spectaculars, or educational programsdesigned to reach and interest target publics. Public relations people also prepare written materials to reach andinfluence their target markets. These materials include annualreports, brochures, articles, and company newsletters andmagazines. Audiovisual materials, such as films, slide-and-soundprograms, and video and audio CDs, are being used increasingly ascommunication tools. Corporate identity materials can also help create a corporateidentity that the public immediately recognizes. Companies can improve public goodwill by contributing moneyand time to public service activities.
  26. 26. Establish objectivesChoose messagesChoose vehiclesImplementEvaluate results
  27. 27. Definition of Philip Kotler: “Personal sellinginvolves oral presentation in a conversationwith one or more prospective purchases forthe purpose of making sales”.
  28. 28.  Personal selling is one of the oldestprofessions in the world. salesperson covers a wide range of positions. a salesperson might be an order taker, such asthe department store salesperson standingbehind the counter can vary from company to company incase ofonline selling there is no need of salesperson
  29. 29.  Linking the Company with Its Customers They represent customers to the company. They represent the company to customers. Coordinating Marketing and Sales
  30. 30.  Sales force management is defined as theanalysis, planning, implementation, and control ofsales force activities Designing Sales Force Strategy and Structure Territorial Sales Force Structure: Each salesperson is assignedto an exclusive geographic area and sells the company’s fullline of products or services to all customers in that territory. Product Sales Force Structure: The sales force sells alongproduct lines. Customer Sales Force Structure: The sales force is organizedalong customer or industry lines. Complex Sales Force Structures: often combines several typesof sales force structures when it sells a wide variety of productsto many types of customers over a broad geographic area.
  31. 31.  Recruiting and Selecting Salespeople The best salespeople possess four key talents: Intrinsic motivation. Disciplined work style. The ability to close a sale. The ability to build relationships with customers. Training Salespeople different types of customers and their needs, buying motives, and buyinghabits. must teach them how to sell effectively and train them in the basics of theselling process. training program teaches them about the company’s objectives,organization, and chief products and markets, and about the strategies ofmajor competitors. Compensating Salespeople Straight salary, Straight commission, Salary plus bonus, Salary plus commission.
  32. 32.  Supervising and Motivating Salespeople The goal of supervision is to help salespeople “work smart”by doing the right things in the right ways. The goal of motivation is to encourage salespeople to“work hard” and energetically toward sales force goals Evaluating Salespeople and Sales-ForcePerformance Sales reports, Call reports, Expense reports.
  33. 33.  Prospecting and qualifying Current customers. Suppliers, dealers, noncompeting sales-people, and bankers. Directories or on the Web. Dropping in unannounced on various offices (a practice known as “cold calling”) Their financial ability. Volume of business. Special needs. Location. Possibilities for growth. Pre-approach: The pre-approach is the stage in which the salespersonlearns as much as possible about the organization (what it needs, who isinvolved in the buying) and its buyers (their characteristics and buyingstyles) Approach: During the approach step, the salesperson should know howto meet and greet the buyer and get the relationship off to a good start. Presentation and demonstration Handling objections Closing, Follow-up