The document discusses integrated marketing communication (IMC), which is defined as a strategic process that plans, develops, implements and evaluates coordinated and measurable brand communication programs across various audiences using various channels. The goal of IMC is to generate both short-term financial returns and long-term brand value. IMC has grown in importance due to changes in consumer behavior, technology and media landscapes, as well as shifts in marketing practices toward more targeted and data-driven approaches.
This document provides an overview of the H&M brand including its history, brand portfolio, brand elements, and strategic recommendations for positioning the brand in the Vietnam market. It discusses H&M's origins in Sweden in 1947 and its expansion globally. Key aspects of the brand such as pricing, product lines, and distribution channels are summarized. A GE McKinsey matrix analysis evaluates opportunities for investing in Vietnam based on market attractiveness and H&M's competitive advantages. Competitive brands like Zara and Mango are also briefly described. The document concludes with tactical recommendations focused on product, pricing, promotion, and channels.
This document provides a literature review on factors that influence customer preference when purchasing shampoo. It discusses that customers consider brand name, quality, price, discounts, offers, packaging, and advertisements. Brand name builds reputation and trust over time. Quality and meeting customer needs and expectations is also important. Price is evaluated against competitors. Discounts and offers provide additional value and influence customers. Packaging provides convenience and promotional value. Advertisements communicate product attributes and differentiation. The literature shows that customers make choices based on these intrinsic and extrinsic product cues.
The document is an acknowledgement by Ashish Tiwari thanking various individuals and organizations who helped with the completion of his MBA project. It thanks Mr. Vivek Chaturvedi for sparing his time to guide the project. It also thanks the faculty of G.L.B.I.T.M and the staff of Big Bazaar for their assistance during the project work. Ashish completed a 1.5 month study of customer satisfaction at Big Bazaar as part of his MBA course requirements.
Blue Ocean Strategy, How to Create Blue Ocean, Four Factors of Blue Ocean Strategy, Value Innovation, Cirque Du Soleil, Ford Model T, Structuralist view, Re-constructionist view, Blue Ocean Vs Red Ocean,
Mother Earth is a social brand that offers handcrafted Indian products while providing livelihoods to rural artisans. It has a vision of connecting rural skills to urban markets equitably. Currently, it has 7 stores and sells various handicrafts, clothing, food, and home products made by artisans. Mother Earth plans to expand through a franchise model. It analyzes customer preference and perceptions to improve. It also develops strategies to upgrade crafts, expand organic foods and furniture, and explore new ventures like organic beauty products.
“Impact of packaging on consumer buying behavior"Bhavik Parmar
This document provides a summary of the history and development of packaging. It discusses ancient packaging methods using natural materials and traces the evolution of packaging through modern developments like tinning, canning, and the use of materials like glass, metal, paper, and plastics. Key developments discussed include the first use of paper for packaging in 1035, tinning and canning processes in the 18th-19th centuries, the invention of corrugated cardboard in 1856, and the rise of plastic packaging following World War 2. The document also provides brief overviews of the history of glass and plastic packaging.
Unilever aimed to streamline its brand portfolio by reducing 1600 brands down to 400 "master brands". As part of this strategy, Dove evolved from focusing on cleansing in the 1950s to championing a more inclusive definition of beauty. In 2007, Dove launched its "Campaign for Real Beauty" to celebrate women of all shapes and sizes and make more women feel beautiful, helping to differentiate Dove in the skin care market. However, Dove also faces risks associated with potential conflicts between its image and parent company Unilever's other brands.
The document discusses four main process strategies - process focus, repetitive focus, product focus, and mass customization. It provides definitions and examples of each strategy. The process focus strategy involves organizing facilities around specific processes to enable low-volume, high-variety production. The repetitive focus strategy organizes facilities as assembly lines using pre-made modules. The product focus strategy organizes facilities by product for high-volume, low-variety output. Mass customization combines the flexibility of process focus with the efficiency of product focus to enable rapid, low-cost production of customized goods and services.
This document provides an overview of the H&M brand including its history, brand portfolio, brand elements, and strategic recommendations for positioning the brand in the Vietnam market. It discusses H&M's origins in Sweden in 1947 and its expansion globally. Key aspects of the brand such as pricing, product lines, and distribution channels are summarized. A GE McKinsey matrix analysis evaluates opportunities for investing in Vietnam based on market attractiveness and H&M's competitive advantages. Competitive brands like Zara and Mango are also briefly described. The document concludes with tactical recommendations focused on product, pricing, promotion, and channels.
This document provides a literature review on factors that influence customer preference when purchasing shampoo. It discusses that customers consider brand name, quality, price, discounts, offers, packaging, and advertisements. Brand name builds reputation and trust over time. Quality and meeting customer needs and expectations is also important. Price is evaluated against competitors. Discounts and offers provide additional value and influence customers. Packaging provides convenience and promotional value. Advertisements communicate product attributes and differentiation. The literature shows that customers make choices based on these intrinsic and extrinsic product cues.
The document is an acknowledgement by Ashish Tiwari thanking various individuals and organizations who helped with the completion of his MBA project. It thanks Mr. Vivek Chaturvedi for sparing his time to guide the project. It also thanks the faculty of G.L.B.I.T.M and the staff of Big Bazaar for their assistance during the project work. Ashish completed a 1.5 month study of customer satisfaction at Big Bazaar as part of his MBA course requirements.
Blue Ocean Strategy, How to Create Blue Ocean, Four Factors of Blue Ocean Strategy, Value Innovation, Cirque Du Soleil, Ford Model T, Structuralist view, Re-constructionist view, Blue Ocean Vs Red Ocean,
Mother Earth is a social brand that offers handcrafted Indian products while providing livelihoods to rural artisans. It has a vision of connecting rural skills to urban markets equitably. Currently, it has 7 stores and sells various handicrafts, clothing, food, and home products made by artisans. Mother Earth plans to expand through a franchise model. It analyzes customer preference and perceptions to improve. It also develops strategies to upgrade crafts, expand organic foods and furniture, and explore new ventures like organic beauty products.
“Impact of packaging on consumer buying behavior"Bhavik Parmar
This document provides a summary of the history and development of packaging. It discusses ancient packaging methods using natural materials and traces the evolution of packaging through modern developments like tinning, canning, and the use of materials like glass, metal, paper, and plastics. Key developments discussed include the first use of paper for packaging in 1035, tinning and canning processes in the 18th-19th centuries, the invention of corrugated cardboard in 1856, and the rise of plastic packaging following World War 2. The document also provides brief overviews of the history of glass and plastic packaging.
Unilever aimed to streamline its brand portfolio by reducing 1600 brands down to 400 "master brands". As part of this strategy, Dove evolved from focusing on cleansing in the 1950s to championing a more inclusive definition of beauty. In 2007, Dove launched its "Campaign for Real Beauty" to celebrate women of all shapes and sizes and make more women feel beautiful, helping to differentiate Dove in the skin care market. However, Dove also faces risks associated with potential conflicts between its image and parent company Unilever's other brands.
The document discusses four main process strategies - process focus, repetitive focus, product focus, and mass customization. It provides definitions and examples of each strategy. The process focus strategy involves organizing facilities around specific processes to enable low-volume, high-variety production. The repetitive focus strategy organizes facilities as assembly lines using pre-made modules. The product focus strategy organizes facilities by product for high-volume, low-variety output. Mass customization combines the flexibility of process focus with the efficiency of product focus to enable rapid, low-cost production of customized goods and services.
The document discusses integrated marketing communications (IMC), which aims to make different communication channels like advertising, PR, sales promotion etc. work together in a coordinated way.
It describes the key elements of an IMC mix, including horizontal and vertical integration across business functions and objectives. Benefits are creating competitive advantage through a consistent message. Challenges include organizational silos and different timelines across channels.
The document also provides overviews of different promotional tools - advertising, publicity, personal selling, sales promotion and direct marketing - comparing their effectiveness and advantages/disadvantages in building awareness, inducing purchase and maintaining relationships.
This document discusses various types of liability insurance coverage needed for films and TV productions. It outlines product liability, commercial general liability, property damage liability, errors and omissions, directors and officers liability, and employer's liability insurance. Examples are provided of claims related to wedding videos, documentaries, and film productions to illustrate how liability insurance can help cover legal costs and payouts if a party is found legally liable. The document also provides details on coverage and exclusions for each type of liability insurance.
This presentation discusses integrated marketing communication and advertising. It defines integrated marketing communication as coordinating marketing efforts across multiple channels. The presentation outlines challenges in integrated marketing like lead generation, content marketing, and social media. It then discusses the advertising management option in marketing and defines advertising as paid announcements to attract public attention. The presentation classifies advertising based on function, region, target market, desired responses, and media used. It also covers advertising appropriation, which is the portion of the marketing budget allocated to advertising.
Derivatives are financial instruments that derive their value from an underlying asset such as currencies, commodities, stocks or bonds. Common types of derivatives include forwards, futures, options, and swaps. Forwards and futures are agreements to buy or sell an asset at a future date for a predetermined price, while options provide the right but not obligation to buy or sell an asset. Swaps involve exchanging cash flows of financial instruments. Derivatives allow investors to hedge risk or speculate on changes in prices. They are traded on exchanges or over-the-counter.
This document discusses consumer and business decision making. It covers the consumer decision making process, which involves need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. It also discusses types of consumer buying decisions and factors that influence consumer buying decisions, such as cultural, social, personal, and psychological characteristics. The key models presented are the consumer behavior model and the consumer decision making process model.
The document discusses the insurance sector in India. It covers the introduction and history of insurance in India, the privatization of insurance in the 1990s, and the major effects of privatization. Some key points include:
- Insurance provides protection against risks by distributing losses across many individuals.
- The Indian government nationalized private insurance companies in 1956.
- The government began privatizing insurance in the 1990s, opening it up to private players.
- Since privatization, the insurance sector has grown significantly, with the number of policies and premium income rising sharply. Top private players have also experienced strong growth.
- Privatization has led to increased competition, new products, better technology and customer service. It has
The document discusses the marketing environment and how it affects marketing management's ability to build customer relationships. It defines the marketing environment as consisting of a microenvironment and macroenvironment. The microenvironment includes the company, suppliers, intermediaries, customers, competitors, and publics. The macroenvironment comprises demographic, economic, natural, technological, political, and cultural forces. Companies can take either a proactive or reactive approach to the changing marketing environment.
Property & Liability insurance involves the equitable transfer of risk, where many policyholders share the financial losses of a few through premium contributions. P&L insurance company investments total around $789 billion, with most assets invested in securities to pay claims if needed. Net premiums written for all lines were around $300 billion. P&L policies are short-term, and claims payments can vary greatly depending on catastrophes. Various rating systems like schedule, experience and retrospective ratings adjust premiums based on risk factors of individual policies.
This document analyzes AirBnB and its superior performance. It summarizes AirBnB's marketing environment and strategies. Regarding the environment: political/legal issues posed challenges but regulations are changing; the economic crisis increased demand for cheaper accommodations. Regarding strategies: AirBnB's offers authentic local living at lower prices than hotels; extensive digital promotion expanded globally; future success requires expanding customer segments and improving security standards while promoting the brand.
The marketing plan aims to expand Airbnb's website and mobile applications to offer more travel features to meet the needs of its global clientele. It proposes an advertising budget of $405,730 and additional investments totaling $2,350,000. A six-month marketing campaign from January to June 2014 will use banner ads, direct mail, airport banners, and increased social media presence on platforms like Facebook and blogs. The goals are to increase brand awareness, recruit more hosts, and boost online bookings. Metrics like consumer feedback and employee satisfaction will be used to evaluate the campaign's effectiveness.
The business model canvas of Airbnb a San Francisco Startups that helps people rent places.
You can see more details in my blog: http://startupbizmodel.com
(in portugueses)
The travel revolution - How Airbnb become a billion dollar company.
You can follow me if you want to grab other great resources, articles : http://twitter.com/gtabidze
Caso práctico realizado dentro del módulo de La Realidad Digital perteneciente al Máster de Comunicación y Publicidad Digital de IAB (2015-2016) consistente en la realización del Plan de Marketing Digital de la web de economía colaborativa especializada en alojamientos Airbnb
The document discusses various pricing strategies used by companies. It describes strategies for pricing new products, such as market skimming pricing and market penetration pricing. It also discusses strategies for pricing multiple products, adjusting prices based on customers or locations, using promotions, and setting international prices. The goal is to maximize profits by understanding how to effectively set and adjust prices.
Cost-based pricing methods include mark-up pricing, absorption cost pricing, target rate of return pricing, and marginal cost pricing. Demand-based pricing methods are determined by what the traffic can bear, skimming pricing, and penetration pricing. Other pricing methods include competition-oriented pricing, product line pricing, tender pricing, affordability-based pricing, and differentiated pricing. Pricing strategies must be appropriate for achieving the desired objectives of the firm.
Risk management is the process of identifying and mitigating risks that may have a positive or negative impact on a project. It includes risk management planning, identification, analysis, response planning, and monitoring and control. Analyzing risks qualitatively and quantitatively helps prioritize them so appropriate responses can be developed, such as avoiding, transferring, mitigating, or accepting risks. Monitoring risks ensures new risks are identified and risk responses remain effective over the project lifecycle. The benefits of effective risk management include more efficient resource use, continuous improvement, fewer failures, and enhanced communication and accountability.
This module discusses risk management and insurance. It covers topics such as risks and risk management, different types of risks, methods of handling risks including avoiding, controlling, accepting and transferring risks. It also discusses the basic concepts of insurance including risk pooling, law of large numbers, requirements of insurable risks, advantages and disadvantages of insurance. Additionally, it covers personal risk management process, objectives of risk management pre-loss and post-loss, insurance market dynamics and underwriting cycle. Finally, it discusses some key legal principles of insurance contracts such as offer and acceptance, consideration, insurable interest, subrogation and utmost good faith.
This document outlines a presentation on risk management fundamentals given by the Federal Aviation Administration. It introduces the topic of risk management and defines key terms like hazard, risk, risk assessment, and risk control. It explains the importance of identifying hazards and assessing risk using a risk matrix to determine risk levels. Finally, it details the five steps of the risk management process: identify hazards, assess risk, make risk decisions, implement controls, and monitor the effectiveness of controls. The overall goal is to provide a framework for integrating risk management into an organization to make safer decisions.
The document provides an overview of various life insurance products and concepts in India. It discusses key terms like insurance, life insurance, types of life insurance policies including whole life, term, and endowment plans. It also covers principles of insurance like insurable interest, utmost good faith, and indemnity. Finally, it summarizes popular individual and group insurance products offered by major Indian and global life insurance companies.
The document discusses risk management frameworks and processes. It provides:
1) An overview of risk management, including highlighting risks at the project, program, and portfolio levels.
2) A risk management framework involving establishing context, risk identification, analysis, evaluation, and treatment.
3) Details of risk governance, including risk management plans, risk registers, governance documents, and ongoing and discrete risk activities.
Advertising And Marketing CommunicationJeff Nelson
This document discusses integrated marketing communication (IMC). IMC is an approach where all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together as a unified strategy rather than in isolation. The document provides definitions of IMC, discusses the role of IMC in the marketing process, and lists reasons for the growing importance of IMC such as allowing companies to avoid duplication and take advantage of synergies across promotional tools. It also describes major characteristics of IMC including a shifting of marketing dollars from traditional media advertising to other forms of promotion like sales promotions.
The document discusses various aspects of corporate communications and marketing, including marketing communication, integrated marketing communications, and different communication tools. It explains that marketing communication aims to disseminate information about an organization to selected markets in order to induce initial purchases and achieve post-purchase satisfaction. Integrated marketing communications involves blending different communication elements, such as advertising, personal selling, and sales promotion, to communicate consistently with the market. Direct marketing and exhibitions are also discussed as important communication tools.
The document discusses integrated marketing communications (IMC), which aims to make different communication channels like advertising, PR, sales promotion etc. work together in a coordinated way.
It describes the key elements of an IMC mix, including horizontal and vertical integration across business functions and objectives. Benefits are creating competitive advantage through a consistent message. Challenges include organizational silos and different timelines across channels.
The document also provides overviews of different promotional tools - advertising, publicity, personal selling, sales promotion and direct marketing - comparing their effectiveness and advantages/disadvantages in building awareness, inducing purchase and maintaining relationships.
This document discusses various types of liability insurance coverage needed for films and TV productions. It outlines product liability, commercial general liability, property damage liability, errors and omissions, directors and officers liability, and employer's liability insurance. Examples are provided of claims related to wedding videos, documentaries, and film productions to illustrate how liability insurance can help cover legal costs and payouts if a party is found legally liable. The document also provides details on coverage and exclusions for each type of liability insurance.
This presentation discusses integrated marketing communication and advertising. It defines integrated marketing communication as coordinating marketing efforts across multiple channels. The presentation outlines challenges in integrated marketing like lead generation, content marketing, and social media. It then discusses the advertising management option in marketing and defines advertising as paid announcements to attract public attention. The presentation classifies advertising based on function, region, target market, desired responses, and media used. It also covers advertising appropriation, which is the portion of the marketing budget allocated to advertising.
Derivatives are financial instruments that derive their value from an underlying asset such as currencies, commodities, stocks or bonds. Common types of derivatives include forwards, futures, options, and swaps. Forwards and futures are agreements to buy or sell an asset at a future date for a predetermined price, while options provide the right but not obligation to buy or sell an asset. Swaps involve exchanging cash flows of financial instruments. Derivatives allow investors to hedge risk or speculate on changes in prices. They are traded on exchanges or over-the-counter.
This document discusses consumer and business decision making. It covers the consumer decision making process, which involves need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. It also discusses types of consumer buying decisions and factors that influence consumer buying decisions, such as cultural, social, personal, and psychological characteristics. The key models presented are the consumer behavior model and the consumer decision making process model.
The document discusses the insurance sector in India. It covers the introduction and history of insurance in India, the privatization of insurance in the 1990s, and the major effects of privatization. Some key points include:
- Insurance provides protection against risks by distributing losses across many individuals.
- The Indian government nationalized private insurance companies in 1956.
- The government began privatizing insurance in the 1990s, opening it up to private players.
- Since privatization, the insurance sector has grown significantly, with the number of policies and premium income rising sharply. Top private players have also experienced strong growth.
- Privatization has led to increased competition, new products, better technology and customer service. It has
The document discusses the marketing environment and how it affects marketing management's ability to build customer relationships. It defines the marketing environment as consisting of a microenvironment and macroenvironment. The microenvironment includes the company, suppliers, intermediaries, customers, competitors, and publics. The macroenvironment comprises demographic, economic, natural, technological, political, and cultural forces. Companies can take either a proactive or reactive approach to the changing marketing environment.
Property & Liability insurance involves the equitable transfer of risk, where many policyholders share the financial losses of a few through premium contributions. P&L insurance company investments total around $789 billion, with most assets invested in securities to pay claims if needed. Net premiums written for all lines were around $300 billion. P&L policies are short-term, and claims payments can vary greatly depending on catastrophes. Various rating systems like schedule, experience and retrospective ratings adjust premiums based on risk factors of individual policies.
This document analyzes AirBnB and its superior performance. It summarizes AirBnB's marketing environment and strategies. Regarding the environment: political/legal issues posed challenges but regulations are changing; the economic crisis increased demand for cheaper accommodations. Regarding strategies: AirBnB's offers authentic local living at lower prices than hotels; extensive digital promotion expanded globally; future success requires expanding customer segments and improving security standards while promoting the brand.
The marketing plan aims to expand Airbnb's website and mobile applications to offer more travel features to meet the needs of its global clientele. It proposes an advertising budget of $405,730 and additional investments totaling $2,350,000. A six-month marketing campaign from January to June 2014 will use banner ads, direct mail, airport banners, and increased social media presence on platforms like Facebook and blogs. The goals are to increase brand awareness, recruit more hosts, and boost online bookings. Metrics like consumer feedback and employee satisfaction will be used to evaluate the campaign's effectiveness.
The business model canvas of Airbnb a San Francisco Startups that helps people rent places.
You can see more details in my blog: http://startupbizmodel.com
(in portugueses)
The travel revolution - How Airbnb become a billion dollar company.
You can follow me if you want to grab other great resources, articles : http://twitter.com/gtabidze
Caso práctico realizado dentro del módulo de La Realidad Digital perteneciente al Máster de Comunicación y Publicidad Digital de IAB (2015-2016) consistente en la realización del Plan de Marketing Digital de la web de economía colaborativa especializada en alojamientos Airbnb
The document discusses various pricing strategies used by companies. It describes strategies for pricing new products, such as market skimming pricing and market penetration pricing. It also discusses strategies for pricing multiple products, adjusting prices based on customers or locations, using promotions, and setting international prices. The goal is to maximize profits by understanding how to effectively set and adjust prices.
Cost-based pricing methods include mark-up pricing, absorption cost pricing, target rate of return pricing, and marginal cost pricing. Demand-based pricing methods are determined by what the traffic can bear, skimming pricing, and penetration pricing. Other pricing methods include competition-oriented pricing, product line pricing, tender pricing, affordability-based pricing, and differentiated pricing. Pricing strategies must be appropriate for achieving the desired objectives of the firm.
Risk management is the process of identifying and mitigating risks that may have a positive or negative impact on a project. It includes risk management planning, identification, analysis, response planning, and monitoring and control. Analyzing risks qualitatively and quantitatively helps prioritize them so appropriate responses can be developed, such as avoiding, transferring, mitigating, or accepting risks. Monitoring risks ensures new risks are identified and risk responses remain effective over the project lifecycle. The benefits of effective risk management include more efficient resource use, continuous improvement, fewer failures, and enhanced communication and accountability.
This module discusses risk management and insurance. It covers topics such as risks and risk management, different types of risks, methods of handling risks including avoiding, controlling, accepting and transferring risks. It also discusses the basic concepts of insurance including risk pooling, law of large numbers, requirements of insurable risks, advantages and disadvantages of insurance. Additionally, it covers personal risk management process, objectives of risk management pre-loss and post-loss, insurance market dynamics and underwriting cycle. Finally, it discusses some key legal principles of insurance contracts such as offer and acceptance, consideration, insurable interest, subrogation and utmost good faith.
This document outlines a presentation on risk management fundamentals given by the Federal Aviation Administration. It introduces the topic of risk management and defines key terms like hazard, risk, risk assessment, and risk control. It explains the importance of identifying hazards and assessing risk using a risk matrix to determine risk levels. Finally, it details the five steps of the risk management process: identify hazards, assess risk, make risk decisions, implement controls, and monitor the effectiveness of controls. The overall goal is to provide a framework for integrating risk management into an organization to make safer decisions.
The document provides an overview of various life insurance products and concepts in India. It discusses key terms like insurance, life insurance, types of life insurance policies including whole life, term, and endowment plans. It also covers principles of insurance like insurable interest, utmost good faith, and indemnity. Finally, it summarizes popular individual and group insurance products offered by major Indian and global life insurance companies.
The document discusses risk management frameworks and processes. It provides:
1) An overview of risk management, including highlighting risks at the project, program, and portfolio levels.
2) A risk management framework involving establishing context, risk identification, analysis, evaluation, and treatment.
3) Details of risk governance, including risk management plans, risk registers, governance documents, and ongoing and discrete risk activities.
Advertising And Marketing CommunicationJeff Nelson
This document discusses integrated marketing communication (IMC). IMC is an approach where all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together as a unified strategy rather than in isolation. The document provides definitions of IMC, discusses the role of IMC in the marketing process, and lists reasons for the growing importance of IMC such as allowing companies to avoid duplication and take advantage of synergies across promotional tools. It also describes major characteristics of IMC including a shifting of marketing dollars from traditional media advertising to other forms of promotion like sales promotions.
The document discusses various aspects of corporate communications and marketing, including marketing communication, integrated marketing communications, and different communication tools. It explains that marketing communication aims to disseminate information about an organization to selected markets in order to induce initial purchases and achieve post-purchase satisfaction. Integrated marketing communications involves blending different communication elements, such as advertising, personal selling, and sales promotion, to communicate consistently with the market. Direct marketing and exhibitions are also discussed as important communication tools.
The document discusses integrated marketing communications (IMC). IMC is defined as carefully integrating and coordinating a company's various communication channels to deliver a clear, consistent message about the organization and its products. This ensures all communication and messages are carefully linked together. IMC includes coordinating various promotional tools, including advertising, sales promotions, public relations, personal selling, and direct marketing to effectively communicate customer value. The promotion mix must also be aligned with other elements of the marketing mix, including product, price, and place. Recent technological advances have led to a new IMC model where companies engage in more targeted, personalized communication through specialized media channels rather than mass broadcasting.
1) The document discusses integrated marketing communication (IMC) strategies used by Bajaj for its Pulsar motorcycle brand. IMC involves coordinating different promotional elements like advertising, public relations, sales promotions etc. to deliver consistent branding.
2) Bajaj has used IMC successfully for Pulsar through ads, press releases, dealer promotions and R&D innovations that have kept the 10-year-old brand competitive. Pulsar is a market leader in India with various engine options.
3) Key aspects of Bajaj's IMC for Pulsar discussed are its manufacturing units, focus on R&D, global expansion plans through partnerships, and view of Pulsar
Integrated marketing communications (IMC) is an approach where all aspects of marketing work together as a unified force, including advertising, sales promotion, public relations, direct marketing, online communications, and social media. The goal of IMC is to create a seamless customer experience and reinforce a brand's core message. IMC considers factors like a brand's marketing mix, promotional strategies, communications objectives, target audiences, and tactics to ensure consistency across channels. Barriers to effective IMC include functional silos between departments, restricted creativity, and a lack of management expertise in the IMC approach.
Sales promotion is a tool used in integrated marketing communications to boost sales and attract new customers. It allows companies to temporarily lower prices to gain customers without incurring losses. Sales promotions influence trade and consumer behavior by increasing customer numbers, sales, attracting new customers, and rewarding loyal ones.
An early definition of integrated marketing communications (IMC), A more current definition of integrated marketing communications (IMC), What importance of IMC is growing, The four stages model of integrated marketing communications (IMC)
1. The document discusses marketing communication and advertising. It defines marketing communication as messages used to communicate with the market, including advertising, direct marketing, branding, packaging, online presence, and more.
2. Advertising is defined as a non-personal form of mass communication used to promote a business's products or services. Key features of advertising discussed include it being a means of communication, providing information, persuading audiences, and identifying the sponsor.
3. Objectives of advertising include introducing new products, supporting personal selling, reaching new audiences, entering new markets, increasing sales, and enhancing goodwill. The importance of advertising is also highlighted, such as in promoting sales, introducing new products, creating a good public
A brief introductiontion ingrated marketing communication 12816463776467-php...Chandran T
The document provides an overview of integrated marketing communication (IMC). It defines key marketing and IMC concepts, including the marketing mix, branding, and the various tools used in IMC like advertising, direct marketing, interactive marketing, sales promotion, publicity, and personal selling. It also outlines the IMC planning process, from reviewing the marketing plan and conducting a situational analysis to developing the IMC program, implementing it, and monitoring/evaluating results. The goal of IMC is to ensure consistency of messaging across different communication channels to achieve effective marketing communications.
RTMNU 4th sem MBA
Subject - Retail Sales Management & Services Marketing [ Marketing ]
Module 5
INTEGRATED SERVICES MARKETING
BY Jayanti R Pande
MBA free notes pdf download
JRP MBA notes
Free RTMNU Marketing notes by Jayanti Pande
Marketing Communications refers to the various strategies, tactics, and channels that organizations use to convey their messages and promote their products or services to their target audience.
Integrated marketing communications (IMC) aims to deliver consistent messages across channels to build brand equity. IMC coordinates all communication tools, like advertising, sales promotions, public relations, direct marketing, social media, and mobile marketing. The goals are to create the right perceptions in customers' minds and build a strong brand image, as customers don't know the service experience before purchase. Factors like the market type and product lifecycle influence the optimal IMC mix. Word-of-mouth from employees, experts, and other customers is also a powerful communication channel for services.
Integrated marketing communications is an approach where different communication modes work together to create a seamless experience for customers. The goal is to make advertising, sales promotion, public relations, direct marketing, online communications, and social media reinforce a unified brand message rather than work in isolation. Components include corporate image, branding, media selection, promotional tools, customer relationship management, and consistent messaging across all channels. Tools that are part of an IMC plan include advertising, sales promotion, direct marketing, personal selling, and public relations activities. The unified approach is important as it allows a brand to communicate effectively to a large audience at a minimal cost while also maintaining long-term customer relationships.
This document introduces integrated marketing communications (IMC) and the promotional mix. It defines IMC as a strategic business process used to plan, develop, execute and evaluate coordinated communications programs over time with targeted audiences to generate short-term returns and build long-term brand value. The promotional mix elements discussed are advertising, direct marketing, interactive/internet marketing, publicity/public relations, and personal selling. The document also outlines the IMC planning process which involves planning, executing, evaluating and controlling the various promotional mix elements to effectively communicate with audiences and achieve marketing and communication objectives.
The document defines integrated marketing communications (IMC) as a strategic planning process that coordinates various communication options to effectively reach target audiences. IMC aims to generate both short-term financial returns and long-term brand value. Key criteria for IMC include evaluating how well each communication option covers the audience, contributes to desired responses, reinforces common messages, complements other options, can be adapted for different groups, and weighs the costs of each option. The goal is an integrated communications program that is both effective and efficient.
Integrated marketing communications project by Aftab syedAftab Syed
This document is a student project report on integrated marketing communications (IMC) with a special reference to marketing. It includes an introduction, table of contents, and acknowledgements section. The student, Mohammed Atique Idrisi, completed the project for his bachelor's degree program under the guidance of his project coordinator, Prof. Mazhar Thakur at Akbar Peerbhoy College of Commerce and Economics in Mumbai, India.
This document summarizes the key findings of Alterian's 2009 annual survey of over 1,000 marketers, agencies, and systems integrators. The survey found that marketers are shifting marketing budgets from traditional direct marketing to digital and social channels, with 40% anticipating over a 20% shift. However, many marketers are not prepared to leverage new techniques, with 42% not integrating web analytics into customer databases and 40% of marketing staff lacking necessary skills. A growing need for customer engagement is driving demand for new service providers to help marketers better coordinate resources and channels. While interest in social media is high, with 66% planning investments, many may not see full benefits without also investing in social media monitoring tools.
Here are 3 potential responses to the questions:
1. Marketing communication involves the exchange of information between individuals through various symbols and behaviors. Some examples of this include non-verbal cues like eye contact, body language, facial expressions, and gestures.
2. An important part of integrated marketing communication is having a single, coordinated message and image presented across different platforms. This could be achieved through targeted weekly ads from supermarkets or online banner ads tailored to individuals based on their online activity.
3. Integrated marketing communication provides synergies where different communication tools, like advertising, public relations, direct marketing and sales promotion, work together to have a greater impact than when used separately. It also allows for better use of funds and a balanced
Similar to Intergrated marketing communication (20)
1. INTERGRATED MARKETING COMMUNICATION
Marketing is an organizational function and a set of processes for creating communicating
and delivering value to customers and for managing customers relationships in ways that
benefit the organization.
The American Marketing Association (AMA), which represents marketing professionals in
the United States and Canada, defines marketing as the process of planning and executing
the conception, pricing, promotion, and distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational objectives.
Effective marketing requires that managers recognize the interdependence of such activities
as sales and promotion and how they can be combined to develop a marketing program.
Integrative Marketing Communication (IMC) is a strategic process used to plan, develop,
exercise and evaluate co-ordinated, measurable, persuasive brand communication and n
programs with customers, prospects, employees and other external audiences. The goal of
IMC is to generate short term financial returns of and build long term value. I
IMC is a concept marketing communication that recognizes the added value of a
comprehensive plan that evaluates the strategic roles of a variety of communication
disciplines (e.g general advertising, direct responses, sales promotion and public relations)
and combines these disciplines to provide clarity, consistency and maximum communication
impact.
Duncum (2002) defines IMC as a process for managing customer relationships that drive
brand value. More specifically, it is a cross functional process for creating and nourishing
profitable relationships with customers and other stakeholders by strategically controlling or
influencing all messages sent to these groups and encouraging data-driven, purposeful
dialogue with them.
Shimp (2000) asserts that the primary goal of IMC is to affect behavior through directed
communication. The process should start with the customer or prospect and then work
backward to the brand communication. IMC should use all forms of communication and all
sources of brand or company contacts of prospective message delivery channels. The need
for synergy is paramount with coordination helping to achieve a strong brand image. IMC
plays a major role in the process of developing brand identity.
The Evolution of IMC
During the 1980s, many companies came to see the need for more of a strategic integration
of their promotional tools. These firms began moving toward the process of integrated marketing
communications (IMC), which involves coordinating the various promotional elements and other
2. marketing activities that communicate with a firm’s customers.9 As marketers embraced the concept of
integrated marketing communications,they began asking their ad agencies to coordinate the use of a
variety of promotional tools rather than relying primarily on media advertising. A number of
companies also began to look beyond traditional advertising agencies and use othertypes of
promotional specialists to develop and implement various components of their promotional
plans. Many agencies responded to the call for synergy among the promotional tools by
acquiring PR, sales promotion, and direct-marketing companies and touting themselves as
IMC agencies that offer one-stop shopping for all their clients’ promotional needs Some
agencies became involved in these non-advertising areas to gain control over their clients’
promotional programs and budgets and struggled to offer any real value beyond creating
advertising. However, the advertising industry soon recognized that IMC was more than just
a fad. Terms such as new advertising, orchestration, and seamless communication were
used to describe the concept of integration.A taskforce from the American Association of
Advertising Agencies (the “4As”) developedone of the first definitions of integrated marketing
communications:a concept of marketing communications planning that recognizes the added
value of a comprehensiveplan that evaluates the strategic roles of a variety of
communication disciplines—for example, general advertising, direct response, sales
promotion, and public relations—andcombines these disciplines to provide clarity,
consistency, and maximum communications impact.
The 4As’ definition focuses on the process of using all forms of promotion toachieve
maximum communication impact. However, advocates of the IMC concept,such as Don
Schultz of Northwestern University, argue for an even broader perspectivethat considers all
sources of brand or company contact that a customer orprospect has with a product or
service.13 Schultz and others note that the process ofintegrated marketing communications
calls for a “big-picture” approach to planningmarketing and promotion programs and
coordinating the various communicationfunctions. It requires that firms develop a total
marketing communications strategythat recognizes how all of a firm’s marketing activities,
not just promotion, communicate
with its customers.Consumers’ perceptions of a company and/or its various brands are a
synthesis ofthe bundle of messages they receive or contacts they have, such as media
advertisements,price, package design, direct-marketing efforts, publicity, sales promotions,
websites, point-of-purchase displays, and even the type of store where a product orservice is
sold.
Reasons for the Growing Importance of IMC
The move toward integrated marketing communications is one of the most
significantmarketing developments that occurred during the 1990s, and the shift toward
thisapproach is continuing as we begin the new century. The IMC approach to
3. marketingcommunications planning and strategy is being adopted by both large and small
companiesand has become popular among firms marketing consumer products and
servicesas well as business-to-business marketers. There are a number of reasons
whymarketers are adopting the IMC approach. A fundamental reason is that they
understandthe value of strategically integrating the various communications functionsrather
than having them operate autonomously. By coordinating their marketing
communicationsefforts, companies can avoid duplication, take advantage of synergyamong
promotional tools, and develop more efficient and effective marketing
communicationsprograms. Advocates of IMC argue that it is one of the easiest ways for
acompany to maximize the return on its investment in marketing and promotion.
The move to integrated marketing communications also reflects an adaptation bymarketers
to a changing environment, particularly with respect to consumers, technology,and media.
Major changes have occurred among consumers with respect todemographics, lifestyles,
media use, and buying and shopping patterns. For example,cable TV and more recently
digital satellite systems have vastly expanded the numberof channels available to
households. Some of these channels offer 24-hour shoppingnetworks; others contain 30- or
60-minute direct-response appeals known as infomercials,which look more like TV shows
than ads. Every day more consumers are surfingthe Internet’s World Wide Web.
Even as new technologies and formats create new ways for marketers to reach
consumers,they are affecting the more traditional media-television, magazines and radio. In
addition to facingthe decline in audience size formany media; marketers are facing the
problem of consumers’being less responsive to traditional advertising. They recognize that
many consumers are turned off byadvertising and tired of being bombarded with sales
messages.
These factors are prompting many marketers tolook for alternative ways to communicate
with their targetaudiences, such as making their selling messages part ofpopular culture. For
example, marketers often hire productplacement firms to get their brands into TV shows
andmovies.
.
The integrated marketing communications movement is also being driven bychanges in the
ways companies market their products and services. Amajor reason for the growing
importance of the IMC approach is the ongoing revolution that is changingthe rules of
marketing and the role of the traditional advertising agency. Majorcharacteristics of this
marketing revolution include:
4. a). A shifting of marketing from media advertising to other forms of promotion,particularly
consumer- and trade-oriented sales promotions. Many marketers feelthat traditional media
advertising has become too expensive and is not cost-effective.
Also, escalating price competition in many markets has resulted in marketers’ pouringmore
of their promotional budgets into price promotions rather than mediaadvertising.
b). A movement away from relying on advertising-focused approacheswhichemphasize
mass media such as network television and national magazines, to solvecommunication
problems. Many companies are turning to lower-cost, more targetedtools such as event
marketing and sponsorships, direct mail, salespromotion, and the Internet as they develop
their marketing communicationsstrategies.
c). A shift in marketplace power from manufacturers to retailers. Due to consolidationin the
retail industry, small local retailers are being replaced by regional, national,and international
chains. These large retailers are using their clout to demand largerpromotional fees and
allowances from manufacturers, a practice that often siphonsmoney away from advertising.
Moreover, new technologies such as checkoutscanners give retailers information on the
effectiveness of manufacturers’ promotionalfees and allowances from manufacturers, a
practice that often siphonsmoney away from advertising. Moreover, new technologies such
as checkoutscanners give retailers information on the effectiveness of manufacturers’
promotionalprograms. This is leading many marketers to shift their focus to promotional tools
thatcan produce short-term results, such as sale promotion.
d). The rapid growth and development of database marketing. Many companies are
building databases containing customer names; geographic, demographic, and
psychographicprofiles; purchase patterns; media preferences; credit ratings; and other
characteristics.Marketers are using this information to target consumers through a variety of
direct-marketing methods such as telemarketing, direct mail, and direct-responseadvertising,
rather than relying on mass media. Advocates of the approach argue that
database marketing is critical to the development and practice of effective IMC.
e).Demands for greater accountability from advertising agencies and changes in theway
agencies are compensated. Many companies are moving toward incentive-basedsystems
whereby compensation of their ad agencies is based, at least in part, onobjective measures
such as sales, market share, and profitability. Demands foraccountability are motivating
many agencies to consider a variety of communicationtools and less expensive alternatives
to mass-media advertising.
5. f)The rapid growth of the Internet, which is changing the very nature of how companiesdo
business and the ways they communicate and interact with consumers. TheInternet
revolution is well under way, and the Internet audience is growing rapidly.The Internet is an
interactive medium that is becoming an integral part of communicationstrategy, and even
business strategy, for many companies.
This marketing revolution is affecting everyone involved in the marketing and promotional
process. Companies are recognizing that they must change the ways they market and
promote their products and services. They can no longer be tied to a specific communication
tool (such as media advertising); rather, they should use whatever contact methods offer the
best way of delivering the message to their target audiences.
Ad agencies continue to reposition themselves as offering more than just advertising
expertise; they strive to convince their clients that they can manage all or any part of clients’
integrated communications needs. Most agencies recognize that their future success
depends on their ability to understand all areas of promotion and help their clients develop
and implement integrated communications programmes.
The Role of IMC in Branding
One of the major reasons for the growing importance of integrated marketing
communications over the past decade is that it plays a major role in the process of
developing and sustaining brand identity and equity. As branding expert Kevin Keller notes,
“Building and properly managing brand equity has become a priority for companies of all
sizes, in all types of industries, in all types of markets.” With more and more products and
services competing for consideration by customers who have less and less time to make
choices, well-known brands have a major competitive advantage in today’s marketplace.
Building and maintaining brand identity and equity require the creation of well-known brands
that have favorable, strong, and unique associations in the mind of the consumer.
Brand identity is a combination of many factors, including the name, logo, symbols, design,
packaging, and performance of a product or service as well as the image or type of
associations that comes to mind when consumers think about a brand. It encompasses the
entire spectrum of consumers’ awareness, knowledge, and image of the brand as well as the
company behind it. It is the sum of all points of encounter or contact that consumers have
with the brand and it extends beyond the experience or outcome of using it. These contacts
can also result from various forms of integrated marketing communications activities used by
6. a company, including mass-media advertising, sales promotion offers, sponsorship activities
at sporting or entertainment events, websites on them. Internet and direct-mail pieces such
as letters, brochures, catalogs, or videos. Consumers can also have contact with or receive
information about a brand in stores at the point of sale; through articles or stories they see,
hear, or read in the media; or through interactions with a company representative, such as a
sales person.
Marketers recognize that in the modern world of marketing there are many different
opportunities and methods for contacting current and prospective customers to provide them
with information about a company and/or brands. The challenge is to understand how to use
the various IMC tools to make such contacts and deliver the branding message effectively
and efficiently. A successful IMC program requires that marketers find the right combination
of communication tools and techniques, define their role and the extent to which they can or
should be used, and coordinate their use. To accomplish this, the persons responsible for
the company’s communication efforts must have an understanding of the IMC tools that are
available and the ways they can be used.
The Tools for Integrated Marketing Communication
Promotion has been defined asthe coordination of all seller initiated efforts to set up
channels of information and persuasion in order to sell goods and services or promote an
idea. While implicit communication occurs through the various elements of the marketing
mix, most of an organization’s communications with the marketplace take place as part of a
carefully planned and controlled promotional program. The basic tools used to accomplish
an organization’s communication objectives are often referred to as the promotional mix.
Traditionally the promotional mix has included four elements: advertising, salespromotion,
publicity/public relations, and personal selling. However, in this text we view direct marketing
as well as interactive media as major promotional-mix elements that modern-day marketers
use to communicate with their target markets. Each element of the promotional mix is
viewed as an integrated marketing communications tool that plays a distinctive role in an
IMC program. Each may take on a variety of forms. And each has certain advantages.
ADVERTISING
Advertising is defined as any paid form of non-personal communication about an
organization, product, service, or idea by an identified sponsor. The paidaspect of this
definition reflects the fact that the space or time for an advertising message generally must
be bought. An occasional exception to this is the public service announcement (PSA), whose
advertising space or time is donated by the media.
7. The non-personal component means that advertising involves mass media (e.g., TV, radio,
magazines, newspapers) that can transmit a message to large groups of individuals,often at
the same time. The non-personal nature of advertising means that there is generally no
opportunity for immediate feedback from the message recipient (except in direct-response
advertising). Therefore, before the message is sent, the advertisermust consider how the
audience will interpret and respond to it.
Advertising is the best-known and most widely discussed form of promotion, probably
because of its pervasiveness. It is also a very important promotional tool, particularly for
companies whose products and services are targeted at mass consumer markets.
There are several reasons why advertising is such an important part of many marketers’
promotional mixes. First, it can be a very cost-effective method for communicating with large
audiences.
Advertising can be used to create brand images and symbolic appeals for a company or
brand, a very important capability for companies selling products and services that are
difficult to differentiate on functional attributes.
Another advantage of advertising is its ability to strike a responsive chord with consumers
when differentiation across other elements of the marketing mix is difficult to achieve.
Popular advertising campaigns attract consumers’ attention and can help generate sales.
These popular campaigns can also sometimes be leveraged into successful integrated
marketing communications programs.
CLASSIFICATION OF ADVERTISING
National Advertising
This is advertising done by large companies on a nationwide basis or in most regions of the
country. Most of the ads for well-known companies and brands that are seen on prime-time
TV or in other major national or regional media are examples of national advertising. The
goals of national advertisers are to inform or remind consumers of the company or brand
and its features, benefits, advantages, or uses and to create or reinforce its image so that
consumers will be predisposed to purchase it.
Retail/Local Advertising
Advertising done by retailers or local merchants to encourage consumers to shop at a
specific store, use a local service, or patronize a particular establishment. Retail or local
advertising tends to emphasize specific patronage motives such as price, hours of operation,
service, atmosphere, image, or merchandise assortment. Retailers are concerned with
8. building store traffic, so their promotions often take the form of direct-action advertising
designed to produce immediate store traffic and sales.
Primary- versus Selective-Demand Advertising
Primary-demand advertising is designed to stimulate demand for the general product class
or entire industry. Selective-demand advertising focuses on creating demand for a specific
company’s brands. Most advertising for products and services is concerned with stimulating
selective demand and emphasizes reasons for purchasing a particular brand.
An advertiser might concentrate on stimulating primary demand when, for example, its brand
dominates a market and will benefit the most from overall market growth. Primary-demand
advertising is often used as part of a promotional strategy to help a new product gain market
acceptance, since the challenge is to sell customers on the product concept as much as to
sell a particular brand. Industry trade associations also try to stimulate primary demand for
their members’ products, among them cotton, milk, orange juice, pork, and beef.
Advertising to business and professional market
Business-to-Business Advertising
Advertising targeted at individuals who buy or influence the purchase of industrial goods or
services for their companies. Industrial goods are products that either become a physical
part of another product (raw material or component parts), are used in manufacturing other
goods (machinery), or are used to help a company conduct its business (e.g., office
supplies, computers). Business services such as insurance, travel services, and health care
are also included in this category.
Professional Advertising
Advertising targeted to professionals such as doctors, lawyers, dentists, engineers, or
professors to encourage them to use a company’s product in their business operations. It
might also be used to encourage professionals to recommend or specify the use of a
company’s product by end-users.
Trade Advertising
Advertising targeted to marketing channel members such as wholesalers, distributors, and
retailers. The goal is to encourage channel members to stock, promote, and resell the
Direct Marketing
It is a system of marketing by which organizations communicate directly with target
customers to generate a response or a transaction. It involves a variety of activities,
includingdatabase management, direct mail ,direct selling, telemarketing, and direct
response ads through direct mail, the Internet, and various broadcast and print media. One
of the major tools of direct marketing is directresponseadvertising, whereby a product is
9. promoted throughan ad that encourages the consumer to purchase directly fromthe
manufacturer.
Direct-marketing tools and techniques are also being used by companies that distributetheir
products through traditional distribution channels or have their own sales force. Direct
marketing plays a big role in the integrated marketing communications programs of
consumer-product companies and business-to-business marketers. These companies spend
large amounts of money each year developing and maintaining databases containing the
addresses and/or phone numbers of present and prospective customers. They use
telemarketing to call customers directly and attempt to sell themproducts and services or
qualify them as sales leads. Marketers also send out directmailpieces ranging from simple
letters and flyers to detailed brochures, catalogs, and videotapes to give potential customers
information about their products or services. Direct-marketing techniques are also used to
distribute product samples or target users of a competing brand.
Interactive/Internet Marketing
As the new millennium begins, we are experiencing perhaps the most dynamic and
revolutionary changes of any era in the history of marketing, as well as advertising and
promotion. These changes are being driven by advances in technology and developments
that have led to dramatic growth of communication through interactive media, particularly the
Internet. Interactive media allow for a back-and-forth flow of information whereby users can
participate in and modify the form and content of the information they receive in real time.
Unlike traditional forms of marketing communications such as advertising, which are one-
way in nature, the new media allow users to perform a variety of functions such as receive
and alter information and images, make inquiries, respond to questions, and, of course,
make purchases. In addition to the Internet, other forms of interactive media include CD-
ROMs, kiosks, and interactive television. However, the interactivemedium that is having the
greatest impact on marketing is the Internet, especially through the component known as the
World Wide Web.
While the Internet is changing the wayscompanies design and implement their
entirebusiness and marketing strategies, it is alsoaffecting their marketing communications
programs.Thousands of companies, ranging fromlarge multinational corporations to small
localfirms, have developed websites to promotetheir products and services, by providing
currentand potential customers with information,as well as to entertain and interact with
consumers.Perhaps the most prevalent perspectiveon the Internet is that it is an advertising
medium, as many marketers advertise theirproducts and services on the websites of
othercompanies and/or organizations. Actually, the Internet is a medium that can be used to
10. execute all the elements of the promotional mix. In addition to advertising on the Web
marketers offer sales promotion incentives such as coupons, contests, and sweepstakes
online, and they use the Internet to conduct direct marketing, personal selling, and
publicrelations activities more effectively and efficiently. While the Internet is a promotional
medium, it can also be viewed as a marketingcommunications tool in its own right. Because
of its interactive nature, it is a veryeffective way of communicating with customers. Many
companies recognize theadvantages of communicating via the Internet and are developing
Web strategies andhiring interactive agencies specifically to develop their websites and
make them partof their integrated marketing communications program. However, companies
that areusing the Internet effectively are integrating their Web strategies with other aspects
oftheir IMC programs.
Sales Promotion
The next variable in the promotional mix is sales promotion,which is generally defined as
those marketing activities thatprovide extra value or incentives to the sales force, the
distributors,or the ultimate consumer and can stimulate immediatesales. Sales promotion is
generally broken into two major categories:consumer-oriented and trade-oriented activities.
Consumer-oriented sales promotion is targeted to theultimate user of a product or service
and includes couponing,sampling, premiums, rebates, contests, sweepstakes,and various
point-of-purchase materials (Exhibit 1-13). These promotional toolsencourage consumers to
make an immediate purchase and thus can stimulate short-termsales. Trade-oriented sales
promotion is targeted toward marketing intermediariessuch as wholesalers, distributors, and
retailers. Promotional and merchandisingallowances, price deals, sales contests, and trade
shows are some of the promotionaltools used to encourage the trade to stock and promote a
company’s products.Among many consumer packaged-goods companies, sales promotion
is often 60 to70 percent of the promotional budget.30 In recent years many companies have
shiftedthe emphasis of their promotional strategy from advertising to sales promotion.
Reasonsfor the increased emphasis on sales promotion include declining brand loyaltyand
increased consumer sensitivity to promotional deals. Another major reason is thatretailers
have become larger and more powerful and are demanding more trade promotionsupport
from companies.
Promotion and sales promotion are two terms that often create confusion in theadvertising
and marketing fields. As noted, promotion is an element of marketing bywhich firms
communicate with their customers; However, many marketing and advertising
practitionersuse the term more narrowly to refer to sales promotion activities to either
consumers orthe trade (retailers, wholesalers). In this book, promotion is used in the broader
sense torefer to the various marketing communications activities of an organization.
Publicity/Public Relations
11. Another important component of an organization’s promotional mix is publicity/
public relations.
Publicity refers to nonpersonal communications regarding an organization,product, service,
or idea not directly paid for or run under identified sponsorship. Itusually comes in the form of
a news story, editorial, or announcement about an organizationand/or its products and
services. Like advertising, publicity involves nonpersonalcommunication to a mass audience,
but unlike advertising, publicity is not directly paid for by the company. The company or
organization attempts to get the media to cover orrun a favorable story on a product, service,
cause, or event to affect awareness, knowledge,opinions, and/or behavior. Techniques used
to gain publicity include newsreleases, press conferences, feature articles, photographs,
films, and videotapes.
An advantage of publicity over other forms of promotion is its credibility. Consumersgenerally
tend to be less skeptical toward favorable information about a product or service when it
comes from a source they perceive as unbiased. For example,the success (or failure) of a
new movie is often determined by the reviews it receivesfrom film critics, who are viewed by
many moviegoers as objective evaluators.Another advantage of publicity is its low cost,
since the company is not paying fortime or space in a mass medium such as TV, radio, or
newspapers. While an organizationmay incur some costs in developing publicity items or
maintaining a staff to doso, these expenses will be far less than those for the other
promotional programs.Publicity is not always under the control of an organization and is
sometimes unfavorable.Negative stories about a company and/or its products can be very
damaging. For example, in the Thursday Standard, a magazine called Home and Away
carries publicity stories about real estate ventures.
Public Relations
It is important to recognize the distinction between publicityand public relations. When an
organization systematically plans and distributes informationin an attempt to control and
manage its image and the nature of the publicity itreceives, it is really engaging in a function
known as public relations.
Public relationsis defined as “the management function which evaluates public attitudes,
identifies thepolicies and procedures of an individual or organization with the public interest,
andexecutes a program of action to earn public understanding and acceptance.”
Publicrelations generally has a broader objective than publicity, as its purpose is to
establishand maintain a positive image of the company among its various publics. Public
relations uses publicity and a variety of other tools—including special
publications,participation in community activities, fund-raising, sponsorship of specialevents,
12. and various public affairs activities—to enhance an organization’s image. Organizationsalso
use advertising as a public relations tool.
Traditionally, publicity and public relations have been considered more supportivethan
primary to the marketing and promotional process. However, many firms havebegun making
PR an integral part integral part of their predetermined marketing and promotionalstrategies.
PR firms are increasingly touting public relations as a communications toolthat can take over
many of the functions of conventional advertising and marketing.
Personal Selling
The final element of an organization’s promotional mix is personal selling, a form ofperson-
to-person communication in which a seller attempts to assist and/or persuade prospective
buyers to purchase the company’s product or service or to act on an idea. Unlike advertising,
personal selling involves direct contact between buyer and seller,either face-to-face or
through some form of telecommunications such as telephone sales. This interaction gives
the marketer communication flexibility; the seller can see or hear the potential buyer’s
reactions and modify the message accordingly. The personal, individualized communication
in personal selling allows the seller to tailor the message to the customer’s specific needs or
situation.
Personal selling also involves more immediate and precise feedback because the impact of
the sales presentation can generally be assessed from the customer’s reactions. If the
feedback is unfavorable, the salesperson can modify the message. Personal selling efforts
can also be targeted to specific markets and customer types that are the best prospects for
the company’s product or service.