Download Integrated Marketing Communication

Integrated Marketing
Communication
Prof .Shaphali Gupta
The Marketing Communications
Mix
Advertising
Sales Promotion
Events& Experience
Public Relations/
Publicity
Personal Selling
Direct Marketing
Any Paid Form of Non personal
Presentation by an Identified
Sponsor.
Short-term Incentives to
Encourage Trial or Purchase.
Co. Sponsored Activities to
encourage trial or purchase
Protect and/or Promote
Company’s Image/products.
Personal Presentations.
Direct Communications
With Individuals to Obtain
an Immediate Response.
Elements in the
Communication Process
SENDER
Message
Decoding
Encoding
Media
Noise
Feedback
Response
RECEIVER
Message Problems
Selective Attention
Selective Distortion
Selective Retention
Effective Communications
Step 1. Identifying the Target Audience
Step 2. Determining the Communication Objectives
Buyer Readiness Stages
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Response Hierarchy Models
Stages
AIDA
Model a
Hierarchy-ofEffects
Model b
InnovationAdoption
Model c
Exposure
Awareness
Cognitive
stage
Attention
Awareness
Affective
stage
Interest
Attitude
Evaluation
Intention
Preference
Desire
Behavior
stage
Liking
Reception
Cognitive
response
Knowledge
Interest
Communications
Model d
Conviction
Trial
Action
Purchase
Behavior
Adoption
Step 3. Designing the Message
Message Content
Rational Appeals
Emotional Appeals
Moral Appeals
Message Structure
Draw Conclusions
Argument Type
Argument Order
Message Format
Layout,
Words, & Sounds,
Body Language
Message Source
Expertise,
Trustworthiness,
Congruity
Step 4. Select Communications Channel
Personal Communication
Channels
Nonpersonal Communication
Channels
Step 5. Establish the Budget
Affordable
% Of
Sales
Competitive
Parity
Objective
& Task
Step 6. Decide on Communications Mix
Advertising
Public, Pervasive, Expressive, Impersonal
Sales Promotion
Communication, Incentive, Invitation
Public Relations & Publicity
Credibility, Surprise, Dramatization
Personal Selling
Personal Confrontation, Cultivation, Response
Direct Marketing
Nonpublic, Customized, Up-to-Date, Interactive
Step 7. Measure Results
Step 8. Manage the IMC Process
Factors in Developing
Promotion Mix Strategies
Type of
Product/
Market
Buyer/
Readiness
Stage
Push vs.
Pull
Strategy
Product
Life-Cycle
Stage
Push Versus Pull Strategy
Producer
Marketing
activities
Intermediaries
Demand
Marketing
activities
End users
Push Strategy
Marketing activities
Producer
Demand
Intermediaries
Demand
End users
Pull Strategy
Managing Mass
Communications
Advertising
Major Decisions in Advertising
Objectives Setting
Budget Decisions
Message Decisions
Media Decisions
Campaign Evaluation
Advertising Objectives
•
•
•
Specific Communication Task
Accomplished with a Specific Target Audience
During a Specific Period of Time
Informative Advertising
Persuasive Advertising
Build Primary Demand
Build Selective Demand
Comparison Advertising
Reminder Advertising
Compares One Brand to
Another
Keeps Consumers Thinking
About a Product.
The Five Ms of Advertising
Message
Mission
Sales
goals
Advertising
objectives
Money
Message generation
Factors to
consider:
Message evaluation
and selection
Stage in PLC
Message execution
Market share
and consumer base
Competition
and clutter
Advertising
frequency
Product
substitutability
Social-responsibility
review
Media
Reach, frequency,
impact
Major media types
Specific media
vehicles
Media timing
Geographical
media allocation
Measurement
Communication
impact
Sales
impact
Advertising Budget Factors
Market Share &
Consumer Base
Stage in the
Product Life Cycle
Product
Substitutability
Competition &
Clutter
Advertising
Frequency
Profiles of Major Media Types
Newspapers
Advantages: Flexibility, timeliness; good local market coverage;
broad acceptance, high believability
Limitations: Short life; poor reproduction quality; small
pass-along audience
Television
Advantages: Combines sight, sound, motion; high attention;
high reach; appealing to senses
Limitations: High absolute costs; high clutter; fleeting exposure;
less audience selectivity
Direct Mail
Advantages: Audience selectivity; flexibility, no ad competition within same medium; allows personalization
Limitations: Relative high cost; “junk mail” image
Profiles of Major Media Types
Radio
Advantages: Mass use; high geographic and demographic
selectivity; low cost
Limitations: Audio only; fleeting exposure; lower attention;
nonstandardized rates; fragmented audiences
Magazines
Advantages: High geographic and demographic selectivity;
credibility and prestige; high-quality reproduction;
long life; good pass-along readership
Limitations: Long ad purchase lead time; waste circulation;
no guarantee of position
Outdoor
Advantages: Flexibility; high repeat exposure; low cost;
low message competition
Limitations: Little audience selectivity; creative limitations
Classification of
Advertising Timing Patterns
Concentrated
Level
(1)
Rising
(2)
Falling Alternating
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(9)
(10)
(11)
(12)
Continuous
Intermittent
Month
Number of
messages
per month
Simplified Rating Sheet for Ads
(Attention) How well does the ad catch
the reader’s attention?
__20
(Read-through) How well does the
ad lead the reader to read further?
__20
(Cognitive) How clear is the
central message or benefit?
__20
(Affective) How effective is
the particular appeal?
__20
(Behavior) How well does the
ad suggest follow-through action?
__20
0
20
Poor
ad
40
60
Mediocre Average
ad
ad
80
Good
ad
100
Great
ad
__Total
Advertising Strategy
Message Execution
Turning the “Big Idea” Into an Actual Ad to Capture the
Target Market’s Attention and Interest.
Testimonial
Evidence
Scientific
Evidence
Technical
Expertise
Personality
Symbol
Slice of Life
Lifestyle
Typical
Message
Execution
Styles
Musical
Fantasy
Mood or
Image
Advertising Evaluation
Advertising Program Evaluation
Communication Effects
Sales Effects
Is the Ad Communicating Well?
Is the Ad Increasing Sales?
Sales Promotion
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.
Why the increase in Sales
Promotion?
•
•
•
•
•
•
•
•
•
Growing retailer power
Declining brand loyalty
Increased promotional sensitivity
Brand proliferation
Fragmentation of consumer market
Short-term focus
Increased managerial accountability
Competition
Clutter
%t of total - 3 yr.MA
Long-Term Promotional
Allocation
60
50
40
30
20
10
0
Trade Promo
Media Adv
Cons. Promo
1986
88
90
92
94
1996
Year
Cox Direct 19th Annual Survey of Promotional Practices
Channels of Sales Promotions
MANUFACTURER
Push
Trade
Promotions
RETAILER
Push
Retail
Promotions
CONSUMER
Consumer
Promotions
Pull
Consumer Promotion
Consumer-Promotion
Objectives
Entice Consumers to
Try a New Product
Lure Customers Away
From Competitors’ Products
Get Consumers to “Load Up’
on a Mature Product
Hold & Reward Loyal
Customers
Consumer Relationship
Building
Consumer-Promotion
Tools
Samples
Coupons
Cash Refunds
Advertising
Specialties
Patronage
Patronage
Rewards
Rewards
Contests
Price Packs
Premiums
Sweepstakes
Games
Point-of-Purchase
Displays
“Deal Proneness,”
Liechtenstein, Burton, & Netemeyer,
Journal of Retailing, Summer 1997
• Examination of “deal proneness” among
consumers in a supermarket setting
• Surveys & Grocery Receipts used
• Eight types of deals:
– Cent-off, One-free, Gift, Display, Rebate,
Contest, Sale, & Coupon
“Deal Proneness,”
Liechtenstein, Burton, & Netemeyer
Cluster analysis yielded two interpretable
results:
 49% are “deal prone,” 51% not
 24% High “Deal prone,” 50%
intermediate, 26% deal insensitive
• “Deal-proneness” a generalized
construct - (crosses type of promotion)
• Younger & Less educated more likely to
be deal prone
Trade Promotions
Trade-Promotion
Objectives
Trade-Promotion
Tools
Persuade Retailers or
Wholesalers to Carry a Brand
Price-Offs
Premiums
Give a Brand Shelf Space
Allowances
Patronage
Displays
Rewards
Promote a Brand in
Advertising
Buy-Back
Guarantees
Discounts
Push a Brand to Consumers
Free Goods
Contests
Push Money
Specialty
Advertising
Items
Business-to-Business
Promotion
Business-Promotion
Objectives
Generate Business Leads
Stimulate Purchases
Reward Customers
Motivate Salespeople
Business-Promotion
Tools
Conventions
Trade Shows
Sales Contests
Public Relation
Major Public Relations Tools
Web Site
Public
Service
Activities
News
Speeches
Corporate
Identity
Materials
Audiovisual
Materials
Written
Materials
Special
Events
Marketing Public Relations
Functions
•
•
•
•
•
•
Assist in product launches
Assist in repositioning mature products
Build interest in a product category
Influence specific target groups
Defend products
Build corporate image
Steps in Marketing PR
Establish objectives
Choose messages
Choose vehicles
Implement and control
Measure effectiveness
Why Sponsor Events?
• To identify with a particular target market or life
style
• To increase brand awareness
• To create or reinforce consumer perceptions of
key brand image associations
• To enhance corporate image
• To create experiences and evoke feelings
• To express commitment to community
• To entertain key clients or reward employees
• To permit merchandising or promotional
opportunities
Ideal Events
Audience closely matches target market
Event generates media attention
Event is unique with few sponsors
Event lends itself to ancillary activities
Event reflects or enhances brand image of sponsor
Managing Personal
Communications
Direct Marketing
Use of consumer-direct channels to reach
and deliver goods and services to
customers without using
market middlemen.
Direct Marketing Channels
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Catalogs
Direct mail
Telemarketing
Web sites
Email marketing
Mobile devices
Interactive TV
Public Issues in Direct
Marketing
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•
•
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Irritation
Unfairness
Deception/fraud
Invasion of privacy
RFM Formula for Selecting
Prospects
• Recency
• Frequency
• Monetary value
Types of Telemarketing
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•
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Telesales
Telecoverage
Teleprospecting
Customer service and technical support
Other Media for Direct
Response
Television
• Direct Response Advertising
• At home shopping channels
• Videotext
Kiosks
Designing an Attractive Web
Site
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•
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Context
Content
Community
Customization
Communication
Connection
Commerce
Ease of Use and Attractiveness
• Ease of Use
– Downloads quickly
– First page is easy to understand
– Easy to navigate
• Attractiveness
– Clean looking
– Not overly crammed with content
– Readable fonts
– Good use of color and sound
Increasing Visits and Site
Stickiness
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•
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Deep information with links
Changing news of interest
Changing offers
Contests and sweepstakes
Humor and jokes
Games
Online Ads
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Banner ads
Sponsorships
Interstitials
Search-related ads
Content-targeted advertising
Alliances
Affiliate programs
e-Marketing Guidelines
• Give the customer a reason to respond
• Personalize the content of your emails
• Offer something the customer could not
get via direct mail
• Make it easy for customers to unsubscribe
Figure 19.1 Designing a Sales
Force
Sales force objectives
Sales force strategy
Sales force structure
Sales force size
Compensation
Types of Sales Representatives
• Deliverer
• Order taker
• Missionary
• Technician
• Demand creator
• Solution vendor
Sales Tasks
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•
•
•
•
•
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Prospecting
Targeting
Communicating
Selling
Servicing
Information gathering
Allocating
Figure 19.2 Managing the Sales
Force
Recruiting, selecting
Training
Supervising
Motivating
Evaluating
Workload Approach to
Determining Sales Force Size
• Customers are grouped into size classes
• Desirable call frequencies are established
• Number of accounts in each size class
multiplied by call frequency
• Average number of calls possible per year
established
• Number of reps equal to total annual calls
required divided by number possible
Components of Sales Force
Compensation
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•
•
•
Fixed amount
Variable amount
Expense allowances
Benefits
What Motivates Sales Reps?
Most Rewarding
• Pay
• Promotion
• Personal growth
• Sense of
accomplishment
Least Rewarding
• Liking
• Respect
• Security
• Recognition
Figure 19.3 Steps in Effective
Selling
Prospecting/ Qualifying
Preapproach
Approach
Presentation
Overcoming objections
Closing
Follow-up