Download Integrated Marketing Communication

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