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INTEGRATED MARKETING
COMMUNICATIONS
UNIT - 4
By:
Dr. PANKAJAKSHI R
B.E (ISE), MBA, Ph.D.
Integrated Marketing Communications
UNIT - 4
Direct Marketing: Features, Functions, Growth,
Advantages/Disadvantages, And Direct Marketing
Strategies.
Promotion: Meaning, Importance, tools used,
Conventional/unconventional, drawbacks, push pull
strategies, Co-operative advertising, Integration with
advertising and publicity
Public Relation/ Publicity:- Meaning, Objectives,
tools of public relations, Public Relation strategies, Goals
of publicity, Corporate Advertising – Role, Types,
Limitations, PRVs Publicity.
Direct Marketing
 Direct Marketing is a marketing tool that allows businesses
to reach customers on a more personal basis can be used by
an individual or organization to increase generated sales of a
product or service or raise awareness on a campaign
 Peter Bennett defines direct marketing as: the total of
activities by which the seller, in effecting the exchange of
goods and services with the buyer, directs efforts to a target
audience using one or more media (direct selling, direct mail,
telemarketing, direct-action advertising, catalogue selling,
cable TV selling, etc.) for the purpose of soliciting a response
by phone, mail, or personal visit from a prospect or
customer.
 It is a selling method that establishes a one to one
relationship with the customers.
 It is also called as Dialogue, personal, Relationship & Data
base marketing.
 Direct marketing is a system of marketing by which
organizations communicate directly with target customers
to generate a response or transaction. This response may
take the form of an inquiry, a purchase, or even a vote.
Examples of Direct Marketing:
 Eureka Frobes
 Brooke Bond’s new Rich café Instant Coffee granules was
launched in a very competitive market.
 In order to increase the trial and simultaneously establish a
direct link with coffee drinkers, Brooke bond began an
interesting experiment to conduct product sampling by
mail.
 The mailers list was provided by advertising agency and
this list was bought by Brooke Bond. The list consisted of
only coffee drinkers in the city of Chennai.
 The target sample customers of 4000 were home
delivered small jar of coffee granules. The delivery was
done by courier and registered post.
Features of DM
 It goes directly to an identified person.
 It is different type of action.
 The results can be measured with precision.
 It is an interactive process.
 It makes use of customer data base.
Features - DM
 It goes directly to an identified person or a household. It
is not put in print or broadcast to general audience.
 The goal of direct marketing is different types of actions.
The action may take the form of return mail, sending a
coupon, requesting more information, telephoning for
further details and so on.
 The results can be measured with precision.
 Direct marketing is interactive. There happens a direct
exchange of information between the two parties.
 Makes use of customer data base. A record is kept of
each customer and his background, purchase patterns,
interests and so on. This provides an excellent source for
precisely targeting future marketing efforts in direct
marketing.
Functions of DM
 To get sales needs.
 To help build new customers.
 To retain or increase the business from
existing customers.
 To improve selection of market segment.
 To stimulate repeat purchase.
 To generate goodwill.
Functions of DM
 Improving the selection of market segments –
Marketer can target a greater potential
purchaser, users, voters and so on.
 Stimulate repeat purchases – Companies build
a base of customers and contact them when
they are due to repurchase.
 Cross-sell – Customers who demonstrate a
specific interest also constitute strong potential
for other products of the same nature.
For eg. A person who has purchased Aqua Guard
water purifier can also be interested in
purchasingVacuum Cleaner and Air Purifier etc.
Functions of DM
 Customer Relationship Management – The
aim of CRM is to establish a relationship
with one’s customers through affinities,
personalized communications and
product/service offerings.
 Build an image and generate goodwill by
personally meeting the potential customers.
 Maintain customer satisfaction by resolving
their problems personally.
 Inform/educate customers in an attempt to
lead to future actions.
The Growth of Direct Marketing
 The changes in the life style.
 Technological advancements.
 More women in the work force.
 Credit card explosion.
Growth of Direct Marketing
 Consumer credit cards – It makes it feasible for
consumers to purchase both low and high ticket items
through direct response channels and assures sellers
that they will be paid.
 Direct marketing syndicates – Companies
specializing in list development, statement inserts,
catalogs and sweepstakes have opened many new
opportunities to marketers.
 The changing structure of society and so on –
People are now money rich and time poor. The rapid
increase in dual income families has meant more
income.
At the same time, the increased popularity of
physical fitness, and home entertainment has reduced
the time available for shopping and has increased the
attractiveness of direct purchases.
 Technological Advances – The rapid technological
advancement of the electronic media and of
computers has made it easier for consumers to shop
and for marketers to be successful in reaching the
desired target markets.
 Miscellaneous factors – Changing values, more
sophisticated marketing techniques and the industry’s
improved image have also ensured the success of
direct marketing in future.
 Toll free Number – Makes it easier for customer to
respond to an offer by placement of the order and
calling free of charge.
Advantages of Direct Marketing
 Selective Reach – Lets the advertiser reach a large
number of people and reduces waste coverage. A
good list allows for minimal waste as only those
consumers with highest potential are targeted.
 Segmentation capabilities – Marketers can purchase
list of recent product purchasers, car buyers, bank
card holders and so on. These lists may allow
segmentation on the basis of geographic area,
occupation, demographics and job title.
 Frequency – As they are usually the most inexpensive
vehicle, so the customer can afford to purchase repeat
times.
 Flexibility – Can take on a variety of creative forms.
Test drive approaches, product information sent
through mail etc.
Advantages of Direct Marketing…….
 Timing – Can be much more timely. Direct
mail can be put together very quickly and
distributed to the target population.
 Personalization – No other advertising
medium can personalize the message as well
as direct media. Parents with children at
different age levels can be approached with
their child’s name included in the appeal.
 Costs – Its ability to specifically target the
audience and eliminate waste coverage
reduces the actual CPM.
 Measures of effectiveness – Feedback is
often immediate and always accurate.
Disadvantages of Direct Marketing
 Image Factors – Mail segment of this industry is
often referred to as junk mail. Direct response ads
on TV are often low budget ads for lower priced
products which contributed to the cheap image.
 Accuracy – People move, change occupations change
phone numbers. If the lists are not kept current,
selectivity will decrease.
 Content support – Ability of magazines to create
mood contributes to the overall effectiveness of the
ads they carry.
 Rising costs – Postal rates and print costs are rising
which drives up the costs of mailers, catalogs etc.
Direct Marketing Strategies
 One Step Approach – The medium is used
directly to obtain an order.
For eg. TV commercials for products like exercising
equipment in which the viewer is urged to phone a
toll-free number to place an order immediately.
 Two step approach – May involve the use of
more than one medium. The first effort is designed
to screen, or qualify potential buyers. The second
effort generates the response.
For eg. Insurance companies use telemarketing to
screen on the basis of and then personal selling to
close the sale.
1. Direct Mail Direct mail is often called “junk mail”—
the unsolicited mail you receive.
2. Catalogs Major participants in the direct-marketing
business include catalog companies.
3. Broadcast Media The success of direct marketing
in the broadcast industry has been truly remarkable
4. Infomercials The lower cost of commercials on
cable and satellite channels has led advertisers to a
new form of advertising. An infomercial is a long
commercial that ranges from 30 to 60 minutes.
5. TV Advertorials: TV programming by developing a
series of advertorials to show the public its entire
model range.
Types of medias & Strategies used in DM /
Major Channels of Direct Marketing
Types of medias & Strategies used in DM /
Major Channels of Direct Marketing
6. Teleshopping The development of toll-free telephone
numbers, combined with the widespread use of credit cards,
has led to a dramatic increase in the number of people who
shop via their TV sets.
7. Print Media Magazines and newspapers are difficult media to
use for direct marketing.
8. Telemarketing If you have a telephone, you probably do not
have to be told about the rapid increase in the use of
telemarketing, or sales by telephone.
9. Electronic Teleshopping: electronic teleshopping is an
online shopping and information retrieval service accessed
through personal computers.
Evaluating the Effectiveness of
Direct Marketing
 Using the cost per order (CPO), advertisers
can evaluate the relative effectiveness of an ad
in only a few minutes based on the number of
calls generated.
By running the same ad on different stations, a
direct marketer can determine the relative
effectiveness of the medium itself.
 For Direct-marketing programs that do not
have an objective of generating a behavioral
response, traditional measures of effectiveness
can be applied.
SALES PROMOTION
Sales promotion consists of a diverse collection
of incentive tools, mostly short term, that
offers an extra value or incentive for the
product to the sales force, distributors or the
ultimate consumer, designed to stimulate
quicker and/or greater purchase of particular
products/services by consumers or the trade.
Where advertising offers a reason to buy, sales
promotion offers an incentive to buy.
Role and objectives of Sales Promotion
 Help the launch of a new product by
introducing it to the trade and consumers.
 Obtain trial purchases from consumers.
 Stimulates sales force enthusiasm.
 Increase shelf space in the market.
 Hold current users by encouraging repeat
purchasing.
 Increase product usage rate.
The Scope and Role of Sales Promotion
 Sales promotion has been defined as “a direct inducement
that offers an extra value or incentive for the product to
the sales force, distributors, or the ultimate consumer
with the primary objective of creating an immediate sale.”
 sales promotion involves some type of inducement that
provides an extra incentive to buy.
 This incentive is usually the key element in a promotional
program; it may be a coupon or price reduction, the
opportunity to enter a contest or sweepstakes, a money-
back refund or rebate, or an extra amount of a product.
 Sales promotion can also provide an inducement to
marketing intermediaries such as wholesalers and
retailers.
 sales promotion is essentially an acceleration tool,
designed to speed up the selling process and maximize
sales volume.
Importance of SP
 For introducing of new products.
 To face unique competitive situation.
 To overcome seasonal slumps in sales.
 To retain the lost customers.
 To support & complement advertising & make
it more effective.
 To support & complement sales force
effectiveness.
 To motivate distribution channels.
 To unload accumulated inventory.
Importance
It is used as an effective tool to boost the sales and induce the
target group to take impulse decisions.
 For introducing new products and services Eg. Cell Phone,
Electric power driven car.
 To face unique competitive situation, it is used as an effective
weapon to topple the arch rival. Like Pepsi, Cola.
 To unload accumulated inventory. Eg. Sale Sale
 To overcome seasonal slump in sales. Eg. Discount on AC
during off-season.
 To retain the lost customer
 To support and complement advertising and make it more
effective.
 To support and complement sales force effectiveness.
 To motivate distribution channel to buy/stock. Eg. Dealers
contest by Maruti
Reasons for the Increase in Sales Promotion
 The Growing Power of Retailers
 Declining Brand Loyalty
 Increased Promotional Sensitivity
 Brand Proliferation
 Fragmentation of the Consumer Market
 Short-Term Focus
 Increased Accountability
 Competition
 Clutter
Tools & techniques of SP
 Tools & techniques Conventional
methods: Consumer & Trade SP.
 Tools & techniques Non Conventional SP:
Consumer-Oriented Sales Promotion
Consumer-Oriented Sales Promotion include sampling,
couponing, premiums, contests and sweepstakes, refunds and
rebates, bonus packs, price-offs, frequency programs, and event
marketing. These promotions are directed at consumers, the end
purchasers of goods and services, and are designed to induce them
to purchase the marketer’s brand.
 Objectives of CSP:
1. ObtainingTrial and Repurchase
2. Increasing Consumption of an Established Brand
3. Defending Current Customers
4. Targeting a Specific Market Segment
5. Enhancing Integrated Marketing Communications and Building
Brand Equity
Consumer-Oriented Sales PromotionTechniques
1. Sampling involves a variety of procedures whereby consumers are
given some quantity of a product for no charge to induce trial.
Methods:
 Event sampling has become one of the fastest-growing and most
popular ways of distributing samples.
 Sampling through the mail is common for small, lightweight,
nonperishable products.
 In-store sampling is increasingly popular, especially for food
products.
 On-package sampling, where a sample of a product is attached to
another item, is another common sampling method
 Door-to-door sampling, in which the product is delivered directly
to the prospect’s residence, is used when it is important to control
where the sample is delivered.
2.Coupons
 An in/on-pack coupon that is redeemable for the next
purchase of the same brand is known as a bounce-back
coupon. This type of coupon gives consumers an
inducement to repurchase the brand.
 Another type of in/on-pack coupon is the cross-ruff
coupon, which is redeemable on the purchase of a
different product, usually one made by the same
company but occasionally through a tie-in with another
manufacturer.
 instant coupon, which is attached to the outside of the
package so the consumer can rip it off and redeem it
immediately at the time of purchase.
 in-store couponing, which includes all co-op
couponing programs distributed in a retail store
environment.
3. A premium is an offer of an item of
merchandise or service either free or at a low
price that is an extra incentive for purchasers.
 The two basic types of offers are the free
premium and the self-liquidating premium.
1. Free premiums are usually small gifts or
merchandise included in the product package
or sent to consumers who mail in a request
along with a proof of purchase.
2. Self-liquidating premiums require the
consumer to pay some or all of the cost of the
premium plus handling and mailing costs.
4. Contests and Sweepstakes: A contest is a
promotion where consumers compete for prizes or
money on the basis of skills or ability. A sweepstakes is a
promotion where winners are determined purely by
chance; it cannot require a proof of purchase as a
condition for entry.
5. Refunds (also known as rebates) are offers by the
manufacturer to return a portion of the product
purchase price, usually after the consumer supplies
some proof of purchase.
6. Bonus Packs: Bonus packs offer the consumer an
extra amount of a product at the regular price by
providing larger containers or extra units.
7. Price-Off Deals: Another consumer-oriented promotion
technique is the direct price-off deal, which reduces the
price of the brand.
8. Frequency Programs: One of the fastest-growing areas
of sales promotion is the use of frequency programs (also
referred to as continuity or loyalty programs).
9. Event marketing is a type of promotion where a
company or brand is linked to an event or where a
themed activity is developed for the purpose of creating
experiences for consumers and promoting a product or
service.
event sponsorship is an integrated marketing
communications activity where a company develops actual
sponsorship relations with a particular event and provides
financial support in return for the right to display a brand
name, logo, or advertising message and be identified as a
supporter of the event.
Trade-Oriented Sales Promotion
Trade-oriented sales promotion includes dealer
contests and incentives, trade allowances, point-of-purchase
displays, sales training programs, trade shows, cooperative
advertising, and other programs designed to motivate
distributors and retailers to carry a product and make an
extra effort to push it to their customers.
Objectives:
1. Obtain Distribution for New Products
2. Maintain Trade Support for Established Brands
3. Encourage Retailers to Display Established Brands
4. Build Retail Inventories
Types ofTrade-Oriented Promotions
1. Contests and Incentives
2. Trade Allowances Probably the most common trade
promotion is some form of trade allowance, a discount or
deal offered to retailers or wholesalers to encourage them to
stock, promote, or display the manufacturer’s products.
Methods:
 A buying allowance is a deal or discount offered to resellers
in the form of a price reduction on merchandise ordered
during a fixed period.
 Promotional Allowances Manufacturers often give
retailers allowances or discounts for performing certain
promotional or merchandising activities in support of their
brands.
 Slotting allowances, also called stocking allowances, introductory
allowances, or street money, are fees retailers charge for
providing a slot or position to accommodate the new
product.
3. Displays and Point-of-Purchase Materials
4. SalesTraining Programs
5. Trade Shows Another important promotional activity targeted
to resellers is the trade show, a forum where manufacturers can
display their products to current as well as prospective buyers.
6. Cooperative Advertising: where the cost of advertising is
shared by more than one party.Types:
 Horizontal cooperative advertising is advertising sponsored in
common by a group of retailers or other organizations providing
products or services to the market.
 Ingredient-sponsored cooperative advertising is supported by
raw materials manufacturers; its objective is to help establish end
products that include the company’s materials and/or ingredients.
 vertical cooperative advertising, in which a manufacturer pays for
a portion of the advertising a retailer runs to promote the
manufacturer’s product and its availability in the retailer’s place
of business.
Non ConventionalTools &
Techniques
 Game show – Eg. Family Fortune,
Eg: Khul Jaa Sim Sim
 Quiz Program – Sponsored by companies
 Surprise visit by celebrities to consumer’s
house, Eg: Pepsi by Madhavan.
 Tour / DomesticTour
 ForeignTrips
 Surprise gifts to existing customers
Trade Promotion Tools
Manufacturers use a combination of push and pull strategies to
accomplish both retail and consumer purchasing. Trade
promotions are directed at wholesalers, retailers and other
intermediaries.
 Price-Off – A straight discount off the list price on each
case purchased during a stated time period. Eg. Off-season
sale.
 Allowance – An amount offered in return for the retailer’s
agreeing to feature the manufacturer’s products in some way.
Eg. An advertising allowance compensates retailers for
advertising the manufacturer’s product.
 Free goods – Offers of extra cases of merchandise to
intermediaries who buy a certain quantity or who feature a
certain flavor or size. Eg. Calendars, paper weight, pen
carrying company name.
Push and Pull Promotion Strategies
PUSH STRATEGY
PULL STRATEGY
Manufacturer
Retailers and
Wholesalers
Consumer
Manufacturer
Demand
Retailers and
Wholesalers
Demand
Consumers
Consumer advertising and sales
promotion
Channel’s
Personal Selling,
Advertising
and Sales
Promotion
AndTrade
Promotion
Manufacturer’s
Personal Selling
Push & Pull strategy
 Push strategy means promoting through
retailers.
 Push Money or Spiffs: Manufacturers often devise
incentives or contests for the sales personnel.
These programs may involve cash payments made
directly to the retailer’s or the wholesaler’s sales staff
to encourage them to promote and sell a
manufacturer’s product.
These payments are known as push money or spiffs. For
eg. An appliance manufacturer may pay a Rs 25 spiff
to retail sales personnel for selling a certain model or
size.
 Pulling directly to consumers without
cooperation of retailers.
Push Strategy
A push strategy (product push) involves pushing
the product through distribution channels
(Wholesalers and Retailers) to final consumers. The
manufacturer directs all marketing activities, especially
personal selling and trade promotion toward channel
members to induce them to carry the product in
large quantities and to promote it to the final
consumers.
Push strategy is appropriate where there is low brand
loyalty in a category, brand choice is made in the
store, the product is an impulse item and product
benefits are well understood.
Pull Strategy
Using a Pull Strategy (demand pull) the manufacturer directs
all marketing activities especially advertising and consumer
promotion toward the final consumers to induce them to
buy the product.
If the pull strategy is implemented properly, consumers will
demand the product from channel members, who will in
turn demand it from the manufacturers. Consumer’s
demand pulls the product through the channels.
It is appropriate when there is high brand loyalty and high
involvement in the category.
Examples – HUL ( Push Strategy)
P&G (Pull Strategy)
Coca Cola, Intel, Pepsi and Nike skillfully employ both push
and pull strategies.
Business and Sales Force promotion tools
These tools are used to gather business leads, impress and
reward customers and motivate the sales force to greater
effort.
 Trade shows and conventions (meeting) – Industry
associations organize annual trade shows and conventions.
Participating vendors expect several benefits, including
generating new sales leads, maintaining customer contacts,
introducing new products, meeting new customers and
selling more to present customers.
 Sales Contests – Induce the sales force or dealers to
increase their sales results over a stated period, with prizes
(money, trips, gifts or points)going to those who succeed.
 Specialty Advertising – Consists of useful, low cost items
like ballpoint pens, calendars, key chains etc. bearing the
company’s name and address that salespeople give to
prospects and customers.
Drawbacks - SP
 Lose perceived value.
 sales promotion trap ( competitors).
 Difficult to get distinct advantage.
 Overuse of sales promotion can be dangerous to the
brand. A brand that is constantly promoted may lose
perceived value. Consumers often purchase a brand,
because it is on sale, they get a premium, rather than
developing a favorable attitude towards the brand.
 Sales promotion Trap – This can result when several
competitors use promotion extensively.
 The competitors following sales promotion, not only it
lowers the profit margin for each firm, but also makes it
difficult for any firm to get any distinct advantage.
 Sales PromotionTrap
Other firms Our Firm
Cut back
Promotion
Maintain Promotion
Cut-back
Promotion
Higher profits for
all
Market share goes
to our firm
Maintain Promotion Market share goes
to other firms
Market share stays
constant. Profit
stays low
Co-Operative advertising
There are 3 types of Co-Operative advertising:
1. Horizontal Mode: this means group of
retailers will sponsored the advertisements.
2. Ingredient sponsored mode: this is done by
raw material manufacturer.
3. Vertical mode: this is shared by both
manufacturers & retailers.
Co-operative Advertising
Cost of advertising is shared by more than one
party.
 Horizontal cooperative advertising –
Advertising sponsored in common by a group of
retailers or other organizations providing
product or services to the market.
For eg. Automobile dealers who are located near
one another in an auto park or along the same
street often allocate some of their ad budgets to
cooperative advertising. All Big Bazaar retailers
coming together and share the ad expenses during
the time of special offers.
 Ingredient sponsored cooperative
advertising – supported by raw materials
manufacturers; its objective is to help
establish end products that include the
company’s materials or ingredients.
Eg. Intel inside program sponsored by Intel
Corporation in which computer
manufacturers get back 5% of what they pay
Intel for microprocessors in return for
showing the Intel inside logo in their
advertising as well as on their PCs.
 Vertical cooperative Advertising –
Manufacturer pays for a portion of the
advertising a retailer runs to promote
the manufacturer’s product and its
availability in the retailer’s place of
business. Manufacturers generally share
the cost of advertising run by the retailer.
Eg. Olay manufacturer pays for a portion of
advertising done by the retailers selling
Olay products.
Public Relations
 The management function which evaluates public
attitudes, identifies the policies and procedures of an
organization with the public interest, and executes a
program of action (and communication) to earn public
understanding and acceptance.
Public relations requires a series of stages, including:
1. The determination and evaluation of public
attitudes.
2. The identification of policies and procedures of an
organization with a public interest.
3. The development and execution of a
communications program designed to bring about
public understanding and acceptance.
Objectives – PR….
 Promoting Goodwill - Blood Donation Camp,
Adopting a village by company
 Promoting a product or service
 To give information to internal employees – Eg.
Reduce the impact of rumor for events like
pruning of employees.
 Helps to overcome negative publicity –
Eg. Bird flu and its impact on chicken
consumption NECC came up with an ad.
 Lobbying: deals with govt. officials.
 Give advice and council
Functions of Public Relations
 Press Relations – Presenting news and information about
the organisation in the most positive light.
 Product Publicity – Sponsoring efforts to publicize
specific products.
 Corporate Communications – Promoting understanding
of the organization through internal and external
communication.
 Lobbying – Dealing with legislator and government officials
to promote or defeat legislation and regulation.
 Counseling – Advising management about public issues and
company’s positions and image during good times and bad.
 Influencing employees to serve the customers better.
 Helping create a market
 Influencing non-consumer groups
 Influencing the dealers and sales people
 Influencing direct consumers through means other than
advertising
Benefits of Public Relations
 Blanketing local communities and reaching
specific groups.
 More cost effective than advertising. Doesn’t
pay for media space and time but only for
staff.
 More influential.
Demerits
 No mass coverage.
 More skills are required.
Tools of PR
 Press release.
 Exclusive stories.
 Companies newsletters.
 Interviews & press conference.
 Sponsored events.
Tools of Public Relations…..
 Press Release – Statement or fact which the
company would like to see published.
 Exclusive stories – about a particular
company or a product on media.
 Interviews – of the company’s higher official
 Press Conference – held by political figures
and organizations.
 Company Newsletter
 Sponsored Event – like DLF IPL (Vodafone,
DLF and Karbonn Mobile),World cup
cricket etc.
P R strategies
 It is part of IMC.
 It could be either reactive & proactive.
 Proactive P R strategy is decided by the objectives of
the company & what the company seeks to publicize.
 Proactive P R strategy is done to encash the
opportunities available in the market.
 Reactive P R strategy is to solve a problem or defend
some issue, it’s a mostly defensive strategy.
Public Relations Strategies….
 Proactive Public Relation Strategy –
Project the positive aspect of the company,
such as employees achievements, award
granted, contributions to community etc.
 Reactive Public Relations Strategy –
When some events which are beyond the
control of the firm takes place, the company
may resort to reactive public relations
strategy. Eg. Pepsi, Coca Cola facing a ban in
some parts of the country due to pesticides.
Advantages and Disadvantages of PR
Advantages:
 Lead generation
 Image building
 Ability to reach specific
groups
 Avoidance of clutter.
 Cost
 Credibility
Disadvantages:
 Not completing the
communications
process.
 lack of coordination
with the marketing
department.
Measuring the Effectiveness of PR
1. It tells management what has been achieved
through public relations activities.
2. It provides management with a way to
measure public relations achievements
quantitatively.
3. It gives management a way to judge the
quality of public relations achievements and
activities.
PUBLICITY: Publicity refers to the
generation of news about a person, product,
or service that appears in broadcast or print
media.
Goals of Publicity:
 Merchandising or sales orientation –
Increase the sales of the product.
 Entertainment orientation – Main aim is to
generate goodwill , image etc.
 Educational orientation – Holding a
programme, the proceeds of which is given
to a developmental activity such as a theatre
building etc.
PRVs Publicity
 Publicity is a short term strategy whereas
PR is a long term strategy.
 Publicity may be positive or negative
whereas PR is always positive.
 Publicity is always under the control of
the person about whom publicity is made,
whereas PR is under the control of the
firm or its agent.
PRVs Publicity…..
 To many marketers, publicity and public relations are
synonymous. In fact, publicity is really a subset of the
public relations effort.
 Differences B/W publicity is typically a short-term
strategy, while public relations is a concerted program
extending over a period of time.
 Second, public relations is designed to provide
positive information about the firm and is usually
controlled by the firm or its agent.
 Publicity, on the other hand, is not always positive and
is not always under the control of, or paid for by, the
organization. Both positive and negative publicity
often originates from sources other than the firm.
Corporate Advertising
Corporate advertising does not promote any one specific product
or service. Rather, it is designed to promote the firm overall, by
enhancing its image, assuming a position on a social issue or cause,
or seeking direct involvement in something.
Done not to product, but to promote favorable attitude
towards the company. Can change the attitude of its customer. Eg.
Amitabh Bachchan for ICICI Bank
Objectives of Corporate Advertising :
1. creating a positive image for the firm.
2. communicating the organization’s views on social, business, and
environmental issues.
 Boosting employee morale and smoothing labor relations.
 Helping newly deregulated industries ease consumer
uncertainty and answer investor questions.
 Helping diversified companies establish an identity for the
parent firm rather than relying solely on brand names.
Types of Corporate Advertising
 Image Advertising – Promote
organizational image.
 Advocacy (support) Advertising – Address
a social or environmental issue. SAY NO
TO DRUGS
 Cause Related Advertising – Done to
create favorable publicity with respect to
carrying out a charitable task. Eg. FIGHT
AGAINST CANCER
Types of corporate advertising
 Image advertising: Promote Organization Image
1. General image & positioning ad. 2. Sponsorship.
3. Recruitment 4. Generating financial support.
 Advocacy Advertising: it is concerning with
propagating ideas to the public while still portraying
an image for the company.
Advocacy (support) Advertising – Address a social or
environmental issue. SAY NO TO DRUGS
 Cause related advertising: this is done to create
favorable publicity with respect to carrying out a
charitable job. EG: PolioVaccination, etc……
 Cause Related Advertising – Done to create favorable
publicity with respect to carrying out a charitable
task. Eg. FIGHT AGAINST CANCER
Benefits and Limitations of
Corporate Advertising
Benefits
 ExcellentVehicle
 Takes Advantage
 Reaches a selected
Target Market
Limitations
-Questionable Effectiveness
-Constitutionality and/or
Ethics
-Consumers are not
interested in this Form of
Advertising
-It is a Costly Form of Self-
indulgence
-The Firm engages only
/must be inTrouble
-Waste of Money
Thank YOu

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INTEGRATED MARKETING COMMUNICATIONS

  • 1. INTEGRATED MARKETING COMMUNICATIONS UNIT - 4 By: Dr. PANKAJAKSHI R B.E (ISE), MBA, Ph.D.
  • 2. Integrated Marketing Communications UNIT - 4 Direct Marketing: Features, Functions, Growth, Advantages/Disadvantages, And Direct Marketing Strategies. Promotion: Meaning, Importance, tools used, Conventional/unconventional, drawbacks, push pull strategies, Co-operative advertising, Integration with advertising and publicity Public Relation/ Publicity:- Meaning, Objectives, tools of public relations, Public Relation strategies, Goals of publicity, Corporate Advertising – Role, Types, Limitations, PRVs Publicity.
  • 3. Direct Marketing  Direct Marketing is a marketing tool that allows businesses to reach customers on a more personal basis can be used by an individual or organization to increase generated sales of a product or service or raise awareness on a campaign  Peter Bennett defines direct marketing as: the total of activities by which the seller, in effecting the exchange of goods and services with the buyer, directs efforts to a target audience using one or more media (direct selling, direct mail, telemarketing, direct-action advertising, catalogue selling, cable TV selling, etc.) for the purpose of soliciting a response by phone, mail, or personal visit from a prospect or customer.  It is a selling method that establishes a one to one relationship with the customers.  It is also called as Dialogue, personal, Relationship & Data base marketing.
  • 4.  Direct marketing is a system of marketing by which organizations communicate directly with target customers to generate a response or transaction. This response may take the form of an inquiry, a purchase, or even a vote. Examples of Direct Marketing:  Eureka Frobes  Brooke Bond’s new Rich café Instant Coffee granules was launched in a very competitive market.  In order to increase the trial and simultaneously establish a direct link with coffee drinkers, Brooke bond began an interesting experiment to conduct product sampling by mail.  The mailers list was provided by advertising agency and this list was bought by Brooke Bond. The list consisted of only coffee drinkers in the city of Chennai.  The target sample customers of 4000 were home delivered small jar of coffee granules. The delivery was done by courier and registered post.
  • 5. Features of DM  It goes directly to an identified person.  It is different type of action.  The results can be measured with precision.  It is an interactive process.  It makes use of customer data base.
  • 6. Features - DM  It goes directly to an identified person or a household. It is not put in print or broadcast to general audience.  The goal of direct marketing is different types of actions. The action may take the form of return mail, sending a coupon, requesting more information, telephoning for further details and so on.  The results can be measured with precision.  Direct marketing is interactive. There happens a direct exchange of information between the two parties.  Makes use of customer data base. A record is kept of each customer and his background, purchase patterns, interests and so on. This provides an excellent source for precisely targeting future marketing efforts in direct marketing.
  • 7. Functions of DM  To get sales needs.  To help build new customers.  To retain or increase the business from existing customers.  To improve selection of market segment.  To stimulate repeat purchase.  To generate goodwill.
  • 8. Functions of DM  Improving the selection of market segments – Marketer can target a greater potential purchaser, users, voters and so on.  Stimulate repeat purchases – Companies build a base of customers and contact them when they are due to repurchase.  Cross-sell – Customers who demonstrate a specific interest also constitute strong potential for other products of the same nature. For eg. A person who has purchased Aqua Guard water purifier can also be interested in purchasingVacuum Cleaner and Air Purifier etc.
  • 9. Functions of DM  Customer Relationship Management – The aim of CRM is to establish a relationship with one’s customers through affinities, personalized communications and product/service offerings.  Build an image and generate goodwill by personally meeting the potential customers.  Maintain customer satisfaction by resolving their problems personally.  Inform/educate customers in an attempt to lead to future actions.
  • 10. The Growth of Direct Marketing  The changes in the life style.  Technological advancements.  More women in the work force.  Credit card explosion.
  • 11. Growth of Direct Marketing  Consumer credit cards – It makes it feasible for consumers to purchase both low and high ticket items through direct response channels and assures sellers that they will be paid.  Direct marketing syndicates – Companies specializing in list development, statement inserts, catalogs and sweepstakes have opened many new opportunities to marketers.  The changing structure of society and so on – People are now money rich and time poor. The rapid increase in dual income families has meant more income. At the same time, the increased popularity of physical fitness, and home entertainment has reduced the time available for shopping and has increased the attractiveness of direct purchases.
  • 12.  Technological Advances – The rapid technological advancement of the electronic media and of computers has made it easier for consumers to shop and for marketers to be successful in reaching the desired target markets.  Miscellaneous factors – Changing values, more sophisticated marketing techniques and the industry’s improved image have also ensured the success of direct marketing in future.  Toll free Number – Makes it easier for customer to respond to an offer by placement of the order and calling free of charge.
  • 13. Advantages of Direct Marketing  Selective Reach – Lets the advertiser reach a large number of people and reduces waste coverage. A good list allows for minimal waste as only those consumers with highest potential are targeted.  Segmentation capabilities – Marketers can purchase list of recent product purchasers, car buyers, bank card holders and so on. These lists may allow segmentation on the basis of geographic area, occupation, demographics and job title.  Frequency – As they are usually the most inexpensive vehicle, so the customer can afford to purchase repeat times.  Flexibility – Can take on a variety of creative forms. Test drive approaches, product information sent through mail etc.
  • 14. Advantages of Direct Marketing…….  Timing – Can be much more timely. Direct mail can be put together very quickly and distributed to the target population.  Personalization – No other advertising medium can personalize the message as well as direct media. Parents with children at different age levels can be approached with their child’s name included in the appeal.  Costs – Its ability to specifically target the audience and eliminate waste coverage reduces the actual CPM.  Measures of effectiveness – Feedback is often immediate and always accurate.
  • 15. Disadvantages of Direct Marketing  Image Factors – Mail segment of this industry is often referred to as junk mail. Direct response ads on TV are often low budget ads for lower priced products which contributed to the cheap image.  Accuracy – People move, change occupations change phone numbers. If the lists are not kept current, selectivity will decrease.  Content support – Ability of magazines to create mood contributes to the overall effectiveness of the ads they carry.  Rising costs – Postal rates and print costs are rising which drives up the costs of mailers, catalogs etc.
  • 16. Direct Marketing Strategies  One Step Approach – The medium is used directly to obtain an order. For eg. TV commercials for products like exercising equipment in which the viewer is urged to phone a toll-free number to place an order immediately.  Two step approach – May involve the use of more than one medium. The first effort is designed to screen, or qualify potential buyers. The second effort generates the response. For eg. Insurance companies use telemarketing to screen on the basis of and then personal selling to close the sale.
  • 17. 1. Direct Mail Direct mail is often called “junk mail”— the unsolicited mail you receive. 2. Catalogs Major participants in the direct-marketing business include catalog companies. 3. Broadcast Media The success of direct marketing in the broadcast industry has been truly remarkable 4. Infomercials The lower cost of commercials on cable and satellite channels has led advertisers to a new form of advertising. An infomercial is a long commercial that ranges from 30 to 60 minutes. 5. TV Advertorials: TV programming by developing a series of advertorials to show the public its entire model range. Types of medias & Strategies used in DM / Major Channels of Direct Marketing
  • 18. Types of medias & Strategies used in DM / Major Channels of Direct Marketing 6. Teleshopping The development of toll-free telephone numbers, combined with the widespread use of credit cards, has led to a dramatic increase in the number of people who shop via their TV sets. 7. Print Media Magazines and newspapers are difficult media to use for direct marketing. 8. Telemarketing If you have a telephone, you probably do not have to be told about the rapid increase in the use of telemarketing, or sales by telephone. 9. Electronic Teleshopping: electronic teleshopping is an online shopping and information retrieval service accessed through personal computers.
  • 19. Evaluating the Effectiveness of Direct Marketing  Using the cost per order (CPO), advertisers can evaluate the relative effectiveness of an ad in only a few minutes based on the number of calls generated. By running the same ad on different stations, a direct marketer can determine the relative effectiveness of the medium itself.  For Direct-marketing programs that do not have an objective of generating a behavioral response, traditional measures of effectiveness can be applied.
  • 20. SALES PROMOTION Sales promotion consists of a diverse collection of incentive tools, mostly short term, that offers an extra value or incentive for the product to the sales force, distributors or the ultimate consumer, designed to stimulate quicker and/or greater purchase of particular products/services by consumers or the trade. Where advertising offers a reason to buy, sales promotion offers an incentive to buy.
  • 21. Role and objectives of Sales Promotion  Help the launch of a new product by introducing it to the trade and consumers.  Obtain trial purchases from consumers.  Stimulates sales force enthusiasm.  Increase shelf space in the market.  Hold current users by encouraging repeat purchasing.  Increase product usage rate.
  • 22. The Scope and Role of Sales Promotion  Sales promotion has been defined as “a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.”  sales promotion involves some type of inducement that provides an extra incentive to buy.  This incentive is usually the key element in a promotional program; it may be a coupon or price reduction, the opportunity to enter a contest or sweepstakes, a money- back refund or rebate, or an extra amount of a product.  Sales promotion can also provide an inducement to marketing intermediaries such as wholesalers and retailers.  sales promotion is essentially an acceleration tool, designed to speed up the selling process and maximize sales volume.
  • 23. Importance of SP  For introducing of new products.  To face unique competitive situation.  To overcome seasonal slumps in sales.  To retain the lost customers.  To support & complement advertising & make it more effective.  To support & complement sales force effectiveness.  To motivate distribution channels.  To unload accumulated inventory.
  • 24. Importance It is used as an effective tool to boost the sales and induce the target group to take impulse decisions.  For introducing new products and services Eg. Cell Phone, Electric power driven car.  To face unique competitive situation, it is used as an effective weapon to topple the arch rival. Like Pepsi, Cola.  To unload accumulated inventory. Eg. Sale Sale  To overcome seasonal slump in sales. Eg. Discount on AC during off-season.  To retain the lost customer  To support and complement advertising and make it more effective.  To support and complement sales force effectiveness.  To motivate distribution channel to buy/stock. Eg. Dealers contest by Maruti
  • 25. Reasons for the Increase in Sales Promotion  The Growing Power of Retailers  Declining Brand Loyalty  Increased Promotional Sensitivity  Brand Proliferation  Fragmentation of the Consumer Market  Short-Term Focus  Increased Accountability  Competition  Clutter
  • 26. Tools & techniques of SP  Tools & techniques Conventional methods: Consumer & Trade SP.  Tools & techniques Non Conventional SP:
  • 27. Consumer-Oriented Sales Promotion Consumer-Oriented Sales Promotion include sampling, couponing, premiums, contests and sweepstakes, refunds and rebates, bonus packs, price-offs, frequency programs, and event marketing. These promotions are directed at consumers, the end purchasers of goods and services, and are designed to induce them to purchase the marketer’s brand.  Objectives of CSP: 1. ObtainingTrial and Repurchase 2. Increasing Consumption of an Established Brand 3. Defending Current Customers 4. Targeting a Specific Market Segment 5. Enhancing Integrated Marketing Communications and Building Brand Equity
  • 28. Consumer-Oriented Sales PromotionTechniques 1. Sampling involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial. Methods:  Event sampling has become one of the fastest-growing and most popular ways of distributing samples.  Sampling through the mail is common for small, lightweight, nonperishable products.  In-store sampling is increasingly popular, especially for food products.  On-package sampling, where a sample of a product is attached to another item, is another common sampling method  Door-to-door sampling, in which the product is delivered directly to the prospect’s residence, is used when it is important to control where the sample is delivered.
  • 29. 2.Coupons  An in/on-pack coupon that is redeemable for the next purchase of the same brand is known as a bounce-back coupon. This type of coupon gives consumers an inducement to repurchase the brand.  Another type of in/on-pack coupon is the cross-ruff coupon, which is redeemable on the purchase of a different product, usually one made by the same company but occasionally through a tie-in with another manufacturer.  instant coupon, which is attached to the outside of the package so the consumer can rip it off and redeem it immediately at the time of purchase.  in-store couponing, which includes all co-op couponing programs distributed in a retail store environment.
  • 30. 3. A premium is an offer of an item of merchandise or service either free or at a low price that is an extra incentive for purchasers.  The two basic types of offers are the free premium and the self-liquidating premium. 1. Free premiums are usually small gifts or merchandise included in the product package or sent to consumers who mail in a request along with a proof of purchase. 2. Self-liquidating premiums require the consumer to pay some or all of the cost of the premium plus handling and mailing costs.
  • 31. 4. Contests and Sweepstakes: A contest is a promotion where consumers compete for prizes or money on the basis of skills or ability. A sweepstakes is a promotion where winners are determined purely by chance; it cannot require a proof of purchase as a condition for entry. 5. Refunds (also known as rebates) are offers by the manufacturer to return a portion of the product purchase price, usually after the consumer supplies some proof of purchase. 6. Bonus Packs: Bonus packs offer the consumer an extra amount of a product at the regular price by providing larger containers or extra units.
  • 32. 7. Price-Off Deals: Another consumer-oriented promotion technique is the direct price-off deal, which reduces the price of the brand. 8. Frequency Programs: One of the fastest-growing areas of sales promotion is the use of frequency programs (also referred to as continuity or loyalty programs). 9. Event marketing is a type of promotion where a company or brand is linked to an event or where a themed activity is developed for the purpose of creating experiences for consumers and promoting a product or service. event sponsorship is an integrated marketing communications activity where a company develops actual sponsorship relations with a particular event and provides financial support in return for the right to display a brand name, logo, or advertising message and be identified as a supporter of the event.
  • 33. Trade-Oriented Sales Promotion Trade-oriented sales promotion includes dealer contests and incentives, trade allowances, point-of-purchase displays, sales training programs, trade shows, cooperative advertising, and other programs designed to motivate distributors and retailers to carry a product and make an extra effort to push it to their customers. Objectives: 1. Obtain Distribution for New Products 2. Maintain Trade Support for Established Brands 3. Encourage Retailers to Display Established Brands 4. Build Retail Inventories
  • 34. Types ofTrade-Oriented Promotions 1. Contests and Incentives 2. Trade Allowances Probably the most common trade promotion is some form of trade allowance, a discount or deal offered to retailers or wholesalers to encourage them to stock, promote, or display the manufacturer’s products. Methods:  A buying allowance is a deal or discount offered to resellers in the form of a price reduction on merchandise ordered during a fixed period.  Promotional Allowances Manufacturers often give retailers allowances or discounts for performing certain promotional or merchandising activities in support of their brands.  Slotting allowances, also called stocking allowances, introductory allowances, or street money, are fees retailers charge for providing a slot or position to accommodate the new product.
  • 35. 3. Displays and Point-of-Purchase Materials 4. SalesTraining Programs 5. Trade Shows Another important promotional activity targeted to resellers is the trade show, a forum where manufacturers can display their products to current as well as prospective buyers. 6. Cooperative Advertising: where the cost of advertising is shared by more than one party.Types:  Horizontal cooperative advertising is advertising sponsored in common by a group of retailers or other organizations providing products or services to the market.  Ingredient-sponsored cooperative advertising is supported by raw materials manufacturers; its objective is to help establish end products that include the company’s materials and/or ingredients.  vertical cooperative advertising, in which a manufacturer pays for a portion of the advertising a retailer runs to promote the manufacturer’s product and its availability in the retailer’s place of business.
  • 36. Non ConventionalTools & Techniques  Game show – Eg. Family Fortune, Eg: Khul Jaa Sim Sim  Quiz Program – Sponsored by companies  Surprise visit by celebrities to consumer’s house, Eg: Pepsi by Madhavan.  Tour / DomesticTour  ForeignTrips  Surprise gifts to existing customers
  • 37. Trade Promotion Tools Manufacturers use a combination of push and pull strategies to accomplish both retail and consumer purchasing. Trade promotions are directed at wholesalers, retailers and other intermediaries.  Price-Off – A straight discount off the list price on each case purchased during a stated time period. Eg. Off-season sale.  Allowance – An amount offered in return for the retailer’s agreeing to feature the manufacturer’s products in some way. Eg. An advertising allowance compensates retailers for advertising the manufacturer’s product.  Free goods – Offers of extra cases of merchandise to intermediaries who buy a certain quantity or who feature a certain flavor or size. Eg. Calendars, paper weight, pen carrying company name.
  • 38. Push and Pull Promotion Strategies PUSH STRATEGY PULL STRATEGY Manufacturer Retailers and Wholesalers Consumer Manufacturer Demand Retailers and Wholesalers Demand Consumers Consumer advertising and sales promotion Channel’s Personal Selling, Advertising and Sales Promotion AndTrade Promotion Manufacturer’s Personal Selling
  • 39. Push & Pull strategy  Push strategy means promoting through retailers.  Push Money or Spiffs: Manufacturers often devise incentives or contests for the sales personnel. These programs may involve cash payments made directly to the retailer’s or the wholesaler’s sales staff to encourage them to promote and sell a manufacturer’s product. These payments are known as push money or spiffs. For eg. An appliance manufacturer may pay a Rs 25 spiff to retail sales personnel for selling a certain model or size.  Pulling directly to consumers without cooperation of retailers.
  • 40. Push Strategy A push strategy (product push) involves pushing the product through distribution channels (Wholesalers and Retailers) to final consumers. The manufacturer directs all marketing activities, especially personal selling and trade promotion toward channel members to induce them to carry the product in large quantities and to promote it to the final consumers. Push strategy is appropriate where there is low brand loyalty in a category, brand choice is made in the store, the product is an impulse item and product benefits are well understood.
  • 41. Pull Strategy Using a Pull Strategy (demand pull) the manufacturer directs all marketing activities especially advertising and consumer promotion toward the final consumers to induce them to buy the product. If the pull strategy is implemented properly, consumers will demand the product from channel members, who will in turn demand it from the manufacturers. Consumer’s demand pulls the product through the channels. It is appropriate when there is high brand loyalty and high involvement in the category. Examples – HUL ( Push Strategy) P&G (Pull Strategy) Coca Cola, Intel, Pepsi and Nike skillfully employ both push and pull strategies.
  • 42. Business and Sales Force promotion tools These tools are used to gather business leads, impress and reward customers and motivate the sales force to greater effort.  Trade shows and conventions (meeting) – Industry associations organize annual trade shows and conventions. Participating vendors expect several benefits, including generating new sales leads, maintaining customer contacts, introducing new products, meeting new customers and selling more to present customers.  Sales Contests – Induce the sales force or dealers to increase their sales results over a stated period, with prizes (money, trips, gifts or points)going to those who succeed.  Specialty Advertising – Consists of useful, low cost items like ballpoint pens, calendars, key chains etc. bearing the company’s name and address that salespeople give to prospects and customers.
  • 43. Drawbacks - SP  Lose perceived value.  sales promotion trap ( competitors).  Difficult to get distinct advantage.  Overuse of sales promotion can be dangerous to the brand. A brand that is constantly promoted may lose perceived value. Consumers often purchase a brand, because it is on sale, they get a premium, rather than developing a favorable attitude towards the brand.  Sales promotion Trap – This can result when several competitors use promotion extensively.  The competitors following sales promotion, not only it lowers the profit margin for each firm, but also makes it difficult for any firm to get any distinct advantage.
  • 44.  Sales PromotionTrap Other firms Our Firm Cut back Promotion Maintain Promotion Cut-back Promotion Higher profits for all Market share goes to our firm Maintain Promotion Market share goes to other firms Market share stays constant. Profit stays low
  • 45. Co-Operative advertising There are 3 types of Co-Operative advertising: 1. Horizontal Mode: this means group of retailers will sponsored the advertisements. 2. Ingredient sponsored mode: this is done by raw material manufacturer. 3. Vertical mode: this is shared by both manufacturers & retailers.
  • 46. Co-operative Advertising Cost of advertising is shared by more than one party.  Horizontal cooperative advertising – Advertising sponsored in common by a group of retailers or other organizations providing product or services to the market. For eg. Automobile dealers who are located near one another in an auto park or along the same street often allocate some of their ad budgets to cooperative advertising. All Big Bazaar retailers coming together and share the ad expenses during the time of special offers.
  • 47.  Ingredient sponsored cooperative advertising – supported by raw materials manufacturers; its objective is to help establish end products that include the company’s materials or ingredients. Eg. Intel inside program sponsored by Intel Corporation in which computer manufacturers get back 5% of what they pay Intel for microprocessors in return for showing the Intel inside logo in their advertising as well as on their PCs.
  • 48.  Vertical cooperative Advertising – Manufacturer pays for a portion of the advertising a retailer runs to promote the manufacturer’s product and its availability in the retailer’s place of business. Manufacturers generally share the cost of advertising run by the retailer. Eg. Olay manufacturer pays for a portion of advertising done by the retailers selling Olay products.
  • 49. Public Relations  The management function which evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action (and communication) to earn public understanding and acceptance. Public relations requires a series of stages, including: 1. The determination and evaluation of public attitudes. 2. The identification of policies and procedures of an organization with a public interest. 3. The development and execution of a communications program designed to bring about public understanding and acceptance.
  • 50. Objectives – PR….  Promoting Goodwill - Blood Donation Camp, Adopting a village by company  Promoting a product or service  To give information to internal employees – Eg. Reduce the impact of rumor for events like pruning of employees.  Helps to overcome negative publicity – Eg. Bird flu and its impact on chicken consumption NECC came up with an ad.  Lobbying: deals with govt. officials.  Give advice and council
  • 51. Functions of Public Relations  Press Relations – Presenting news and information about the organisation in the most positive light.  Product Publicity – Sponsoring efforts to publicize specific products.  Corporate Communications – Promoting understanding of the organization through internal and external communication.  Lobbying – Dealing with legislator and government officials to promote or defeat legislation and regulation.  Counseling – Advising management about public issues and company’s positions and image during good times and bad.  Influencing employees to serve the customers better.  Helping create a market  Influencing non-consumer groups  Influencing the dealers and sales people  Influencing direct consumers through means other than advertising
  • 52. Benefits of Public Relations  Blanketing local communities and reaching specific groups.  More cost effective than advertising. Doesn’t pay for media space and time but only for staff.  More influential. Demerits  No mass coverage.  More skills are required.
  • 53. Tools of PR  Press release.  Exclusive stories.  Companies newsletters.  Interviews & press conference.  Sponsored events.
  • 54. Tools of Public Relations…..  Press Release – Statement or fact which the company would like to see published.  Exclusive stories – about a particular company or a product on media.  Interviews – of the company’s higher official  Press Conference – held by political figures and organizations.  Company Newsletter  Sponsored Event – like DLF IPL (Vodafone, DLF and Karbonn Mobile),World cup cricket etc.
  • 55. P R strategies  It is part of IMC.  It could be either reactive & proactive.  Proactive P R strategy is decided by the objectives of the company & what the company seeks to publicize.  Proactive P R strategy is done to encash the opportunities available in the market.  Reactive P R strategy is to solve a problem or defend some issue, it’s a mostly defensive strategy.
  • 56. Public Relations Strategies….  Proactive Public Relation Strategy – Project the positive aspect of the company, such as employees achievements, award granted, contributions to community etc.  Reactive Public Relations Strategy – When some events which are beyond the control of the firm takes place, the company may resort to reactive public relations strategy. Eg. Pepsi, Coca Cola facing a ban in some parts of the country due to pesticides.
  • 57. Advantages and Disadvantages of PR Advantages:  Lead generation  Image building  Ability to reach specific groups  Avoidance of clutter.  Cost  Credibility Disadvantages:  Not completing the communications process.  lack of coordination with the marketing department.
  • 58. Measuring the Effectiveness of PR 1. It tells management what has been achieved through public relations activities. 2. It provides management with a way to measure public relations achievements quantitatively. 3. It gives management a way to judge the quality of public relations achievements and activities.
  • 59. PUBLICITY: Publicity refers to the generation of news about a person, product, or service that appears in broadcast or print media. Goals of Publicity:  Merchandising or sales orientation – Increase the sales of the product.  Entertainment orientation – Main aim is to generate goodwill , image etc.  Educational orientation – Holding a programme, the proceeds of which is given to a developmental activity such as a theatre building etc.
  • 60. PRVs Publicity  Publicity is a short term strategy whereas PR is a long term strategy.  Publicity may be positive or negative whereas PR is always positive.  Publicity is always under the control of the person about whom publicity is made, whereas PR is under the control of the firm or its agent.
  • 61. PRVs Publicity…..  To many marketers, publicity and public relations are synonymous. In fact, publicity is really a subset of the public relations effort.  Differences B/W publicity is typically a short-term strategy, while public relations is a concerted program extending over a period of time.  Second, public relations is designed to provide positive information about the firm and is usually controlled by the firm or its agent.  Publicity, on the other hand, is not always positive and is not always under the control of, or paid for by, the organization. Both positive and negative publicity often originates from sources other than the firm.
  • 62. Corporate Advertising Corporate advertising does not promote any one specific product or service. Rather, it is designed to promote the firm overall, by enhancing its image, assuming a position on a social issue or cause, or seeking direct involvement in something. Done not to product, but to promote favorable attitude towards the company. Can change the attitude of its customer. Eg. Amitabh Bachchan for ICICI Bank Objectives of Corporate Advertising : 1. creating a positive image for the firm. 2. communicating the organization’s views on social, business, and environmental issues.  Boosting employee morale and smoothing labor relations.  Helping newly deregulated industries ease consumer uncertainty and answer investor questions.  Helping diversified companies establish an identity for the parent firm rather than relying solely on brand names.
  • 63. Types of Corporate Advertising  Image Advertising – Promote organizational image.  Advocacy (support) Advertising – Address a social or environmental issue. SAY NO TO DRUGS  Cause Related Advertising – Done to create favorable publicity with respect to carrying out a charitable task. Eg. FIGHT AGAINST CANCER
  • 64. Types of corporate advertising  Image advertising: Promote Organization Image 1. General image & positioning ad. 2. Sponsorship. 3. Recruitment 4. Generating financial support.  Advocacy Advertising: it is concerning with propagating ideas to the public while still portraying an image for the company. Advocacy (support) Advertising – Address a social or environmental issue. SAY NO TO DRUGS  Cause related advertising: this is done to create favorable publicity with respect to carrying out a charitable job. EG: PolioVaccination, etc……  Cause Related Advertising – Done to create favorable publicity with respect to carrying out a charitable task. Eg. FIGHT AGAINST CANCER
  • 65. Benefits and Limitations of Corporate Advertising Benefits  ExcellentVehicle  Takes Advantage  Reaches a selected Target Market Limitations -Questionable Effectiveness -Constitutionality and/or Ethics -Consumers are not interested in this Form of Advertising -It is a Costly Form of Self- indulgence -The Firm engages only /must be inTrouble -Waste of Money