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Integrated Marketing Communication What is Marketing Marketing….. defined • The Chartered Institute of Marketing define marketing as 'The management process responsible for identifying , anticipating and satisfying customer requirements profitably' Marketing….. defined • Philip Kotler defines marketing as 'satisfying needs and wants through an exchange process' Marketing….. defined • P.Tailor of suggests that 'Marketing is not only about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer Marketing….. defined • Several experts argue that Marketing is the management process responsible for identifying, anticipating and satisfying customers’ requirements profitably What is Marketing? • Marketing is all about – - Identifying the need of the customer and developing product accordingly - Spreading awareness /creation of need - Building relationships with the customers - Ensuring maximum customer satisfaction Definition • Marketing Communications Mix – The specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives. Traditional Approach to Marketing Comm. Point of Purchase Special Events Publicity Media Advertising Public Relations Direct Marketing Indian Institute of Learning & Advanced Development National Expressway– 8, 81-P Sector 34, Gurgaon – 122002, HR Sales Promotion Packaging Direct Response Interactive Marketing MAJOR OBJECTIVES OF MARKETING COMMUNICATIONS Informing Persuading Reminding Defining Advertising • The non-personal communication of information usually paid for & usually persuasive in nature, about products (goods & services) or ideas by identified sponsor through various media. (Arenes 1996) • Any paid form of non-personal communication about an organisation, product ,service, or idea Advantages • Reaches to a large number of audience at once • It is repetitive in nature • Creativity in ads can catch the eye of audiences • Successful ads can help in building brands and increasing sales Disadvantages • It is costly in nature • It is one way communication • If does not performs well then it can prove to be fatal Types of Advertising Print Advertising • Advertising products via newspapers or magazines is a common practice. • In addition to this, the print media also offers options like promotional brochures and fliers for advertising purposes. • It is a paid form of advertising Outdoor Advertising • Outdoor advertising is also a very popular form of advertising, which makes use of several tools and techniques to attract the customers outdoors. • The most common examples of outdoor advertising are billboards, kiosks, and also several events and tradeshows organized by the company. Broadcast advertising • Broadcast advertising is a very popular advertising medium that constitutes of several branches like television, radio or the Internet. • This is a form of advertising that seeks to attract the masses at once Covert Advertising • Covert advertising is a unique kind of advertising in which a product or a particular brand is incorporated in some entertainment and media channels like movies, television shows or even sports. • There is no commercial in the entertainment but the brand or the product is subtly( or sometimes evidently) showcased in the entertainment show. Surrogate advertising Public Service Advertising • Public service advertising is a technique that makes use of advertising as an effective communication medium to convey socially relevant messaged about important matters and social welfare. Celebrity Advertising • Using celebrities for advertising involves signing up celebrities for advertising campaigns, which consist of all sorts of advertising including, television ads or even print advertisements. Teaser Advertising • Brief advertisement designed to tease the public by offering only bits of information without revealing either the sponsor of the ad or the product being advertised. • Teaser ads are the frontrunners of an advertising campaign, and their purpose is to arouse curiosity and get attention for the campaign that follows. Gimmick Advertising • In this effects are not classified. Humour, exaggeration and other trick devices are employed to capture attention. • It has been mostly found that the customers mostly relate to this form of advertising easily. Shock advertisements AIDA Model • Attention • Interest • Desire • Action Sales Promotion and Merchandising Sales Promotion • Sales promotions are the short term initiatives from the side of the companies to boost up their sales. • Sales promotions can be directed at either the customer or distribution channel members (such as retailers). • Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Roles of Sales Promotion and Merchandising 1. 2. 3. 4. 5. 6. Getting customers to try a new service or menu item. Increasing off-peak sales. Increasing sales in periods that coincide with major events, vacations, or special occasions. Encouraging travel intermediaries to make an effort to sell services. Helping sales representatives get business from prospects. Facilitating intermediary sales. What do we want the consumers and trade to do? • Buy More • Buy Now A sales promotion should be • Temporary – if not the consumers would not believe it the next time • Great Value Added – they should find reason to buy now and more Types of Sales Promotions • • • • • • • • Coupon Bonus Packs Specialty container Continuity program Refund Contest Sampling Price off Trade oriented promotion 1.Point-of-Purchase Displays 2.Short Term Allowances (Trade Allowances) 3.Sales Incentives or Push Money 4.Trade Shows 5.Training Programmes Direct Marketing • Direct marketing - Direct communications with carefully targeted individual consumers to obtain a positive response and cultivate lasting or enduring customer relationships. • Direct marketing usually is carried out through telephone (telemarketing and telesales), direct mail (brochures, catalogs, flyers), online computer shopping, and cable television infomercials and home shopping networks. Advantages from customer’s perspective • Customers enjoy the convenience of direct marketing as they do not have to battle traffic, find a parking space, or shop through stores. • Its time saving for the customer as he gets all the necessary information available at his doorstep • Direct marketing can also offer a wider selection of products while making comparison shopping easier with greater access to alternative or competing products. Advantages from seller’s perspective • It is a great tool in customer relationship building as it provides direct communication with customers. • Direct marketing also can reduce costs while increasing the speed and efficiency of the operation. Limitations • Has not proved to be efficient for numerous organizations in the recent past • Might dilute the brand image, if followed very aggressively Direct Marketing through ‘Infomercials’ Personal Selling • Personal selling is oral, face to face communication with potential buyers of a product with the intention of making a sale. • The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale Advantages • Personal selling is a face-to-face activity; customers therefore obtain a relatively high degree of personal attention • The sales message can be customised to meet the needs of the customer • The two-way nature of the sales process allows the sales team to respond directly and promptly to customer questions and concerns • Personal selling is a good way of getting across large amounts of technical or other complex product information • The face-to-face sales meeting gives the sales force chance to demonstrate the product • Frequent meetings between sales force and customer provide an opportunity to build good long-term relationships Disadvantages • The main disadvantage of personal selling is employing the correct sales force. • Keeping a track on the activities of the sale officials is another problem for the organizations What is public relations? • Public relations is the management of communication between an organization and its publics - Grunig & Hunt-Managing Public Relations MarCom: MAIN OBJECTIVES INFORMING •Product Launch phase •Explanations of Product’s features & benefits TARGET AUDIENCE REMAINDING •Product Sales Growth phase •Competitive positioning PURSUADING •Convincing the customers •Applies to consumers’ memory (brand specific) FIGURE 4.1 The IMC Planning Process Target Market Customers Competitors Communication Budget Objectives Product Positioning IMC Components IMC Planning Process Step 1: Current Context and Situation (Market Analysis) Customer Analysis Current customers Former customers Potential customers Competitors’ customers IMC Planning Process Step 1: Current Context and Situation (Market Analysis) Competitor Analysis Direct competitors Indirect competitors Market leaders Identify communication strategies and tactics of each competitor through primary and secondary research. What do consumers and others say/think about the competition? IMC Planning Process Step 1: Current Context and Situation (Market Analysis) Communication Analysis Company Communication Current communications at all levels and in all channels Industry Communication What types of strategies are used in the industry by competing firms. IMC Planning Process Step 2: Target Market and Positioning Analysis Selection of target markets Consumer markets Business markets Dual markets Product/service/brand Positioning Created by factors such as product quality, prices, distribution, image and market communication Perception created by consumer regarding the company and its products relative to the competition FIGURE 4.6 Product Positioning Strategies • Product Attributes • Competitors • Use or application • Price/quality • Product user • Product class • Cultural symbol 4-52 IMC Planning Process • Marketing Segmentation and Promotion – Segmentation helps to clarify marketing objectives geared towards specific target markets – critical to address in the planning process. – This allows for more precise communications budgeting. – This also helps link the firm’s strategies and tactics to a specific target group. Determining Viable Market Segments • The segment is different from the population as a whole and distinct from other market segments. • The segment is large enough to be financially viable to target with a separate marketing campaign. Examples? • The individuals or businesses within the segment are homogeneous. Segmentation Variables • • • • • • Demographics Psychographics Geographic Benefits Sought Usage Geodemographic Segmentation – Combines census demographic data with psychographic and geographic information Marketing Communications Objectives Organization Context Target Markets Positioning Communications Objectives Budget IMC Components FIGURE 4.7 Communication Objectives Develop brand awareness Increase category demand Change customer beliefs and attitudes Enhance purchase actions Encourage repeat purchases Build customer traffic Enhance firm image Increase market share Increase sales Reinforce purchase decisions 4-57 IMC Planning Process Step 4: Budget Planning and Considerations Budgets based on Communication objectives Overall marketing objectives Budgets vary from consumer to B-to-B markets Unrealistic assumption to assume direct relationship between advertising sales and market share Creating a Communications Budget Most common methods of creating a communications budget include: • Percentage of sales • Competitive-Parity method • Objective and task method IMC Planning Process Step 5: IMC Components Traditional advertising Trade promotions Consumer promotions Media spending Alternative media spending UNIT 2 What is Ad agency Ad agencies are organizations which undertakes advertising assignments from business organizations which are not able to establish their separate Ad departments or can not devote time, money and effort on research activities Ad agencies • • • • • • • • • • Operation Research group Market motivation studies Marketing advertising Associates Pvt Ltd Market analysis and product promoters Advertising and marketing associates Ulka advertising Adroit advertising Radius advertising Thomas associates Marketing and Industrial development association Merits • Expertise • Conducts training • Flexible • Saves time and effort Demerits • High fees • Chances of information leakage • Might not do full justice with the projects in some cases Advertising Copy • Text of a print, radio, or television advertising message that aims at catching and holding the interest of the prospective buyer, and at persuading him or her to make a purchase all within a few short seconds. • The headline of an advertising copy is said to be the most important part, and quite often a small change in its wording brings disproportionate results. • Although a short advertising copy is more common in consumer-product advertising, according to the UK advertising guru David Ogilvy (1911-1999) people do read (and listen or attend to) lengthy advertisements if they are skillfully written. • Most advertising copy is based on advertising/consumer research and is composed by professional copywriters hired by advertising agencies. Also called advertisement copy, ad copy, or just copy. Marketing tactics in an AD copy • Credibility - Offering the visitor believability about the product or brand. • Attention - Something that grabs the visitor’s attention such as the keywords or keyword phrases. • Promise of Benefit - Whether it is offering information or just a particular product, the ad copy generally has some promise of benefit for the visitor if he or she clicks on the link. • Action - The goal of ad copy is almost always to get some kind of action or reaction out of the visitor. Whether it is to just visit a landing page, fill out a form, or actually purchase a product, the goal of most ad copy is the same, and involves some kind of action. Writing an Ad copy • Start your copy with a striking opening statement that will get the attention of your reader. This opening statement may be: “Looking for bright and shinning corporate career of your child, **** offers attractive placements and overall development to your child" (from a Management school) or “ Climb the ladders of the success in the Corporate world” Writing an Ad copy - Then, after your striking opening statement, you just a) Make a promise b) Back it up with convincing proof and c) Ask for action Writing an Ad copy 1. Make a promise “ **** delivers the best knowledge and expertise to our students in several fields. We enable our students to be the best practitioners of their knowledge by giving them an international exposure and providing them with superior placements” Writing an Ad copy 2. Back it up with convincing proof For a B- School, a convincing proof is the placement records of its students, quality of faculties, their research works, infrastructure and other available features Writing an Ad copy 3. Ask for action “The last date of filling the registration forms is ****. Contact Person ***** Number: ********* " Advertising Research • Advertising research is a specialized form of research that works to improve the effectiveness and efficiency of advertising. • It can be studied from two perspectives – Strategic research – Evaluative research • Advertising research includes pre-testing (also known as copy testing) and post-testing of ads and/or campaigns—pre-testing is done before an ad airs to gauge how well it will perform and post-testing is done after an ad airs to determine the in-market impact of the ad or campaign on the consumer. Pre testing or copy testing • Pre-testing is also used to identify weak spots within an ad campaign, to more effectively edit 60-second ads to 30-second ads or 30’s to 15’s, to select images from the spot to use in an integrated campaign’s print ad, to pull out the key moments for use in ad tracking, and to identify branding moments. Advertising Strategy Research • Pre campaign tests 1) Consumer Jury 2) Rating points 3) Portfolio tests 4) Physiological tests Galvanic Skin response Eye movement test The pupil reader (pupilometer) Pre Testing 5) Concept and theme testing Utilitarian theme Focused theme Informative theme Achievement oriented theme New product Advertising Evaluation Research • Post campaign tests 1) Inquiry Test 2) Sales Test 3) Recall test (aided and unaided) 4) Recognition Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion Advertising and Promotion: Two Viewpoints Proponents Argue That Advertising and Promotion: Encourages A Higher Standard Of Living Provides Information Creates Jobs and Helps New Firms Enter a Market Promotes Competition in The Marketplace Critics Argue That Advertising and Promotion Creates Needs and Creates Needs and Wants Among Wants unnecasarily Consumers Is More Propaganda Than Information Promotes Materialism, Insecurity and Greed Ethics in Advertising and Promotion Ethics: Moral principles and values that govern the actions of and individual or group. Not All Issues Can Be Regulated A Marketing or Promotion Action May Be Legal but Not Considered Ethical Marketers Must Make Decisions Regarding the Appropriateness of Their Actions Advertising and Promotion as Untruthful or Deceptive General Mistrust of Advertising and Among Consumers. Many Do Not Perceive Ads As Honest or Believable Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium Offers Unethical And/or Deceptive Practices Involving Mail Order, Telemarketing and Other Forms of Direct Marketing Internet Scams and Abuses Advertising as Offensive or in Bad Taste Objections to Advertising Of Certain Products Use of Sexual Appeals And/or Nudity Use of Shock Ads Many People Found Benetton’s “Death Row” Ad Campaign Offensive Advertising and Children Children's TV Watching Behavior Children between ages 2-11 watch on average 21.5 hours of TV per week and may see 22,000 commercials per year Television is an important source of information for children about products Social and Cultural Consequences of Advertising Advertising Does Advertising helps in Make creating People Buyamongst awareness Things the They Don’t Need? masses Today, it has also become a Does Advertising medium to make the Encourage Materialism? consumers aware about their rights Advertising is just A Reflection of Society? Advertising and Stereotyping Portrayal of Women to Reflect Their Changing Role in Society Gender Stereotyping Portrayal of The Elderly Criticisms of Advertising With Regard to Stereotyping Portrayal of Women As Sex Objects Ethnic Stereotyping/ Representation of Minorities Advertising Budget • This is the translation of advertising plan into money • It includes a large body of information embracing product facts and competitive situation Advertising budget process • • • • Collection of data and preparation of budget Presentation and approval of budget Budget execution Control of budget Methods • • • • • Profit Maximization Advertising as a percentage of sales Return on investment method Competitive parity method Objective and task method