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