Books Recommended

Integrated Marketing Communications Ad ertising Advertising Promotions

Session Coverage
Integrated Marketing Communications
Importance I t and d Role R l of f Marketing M k ti Communication C i ti Developing Effective Communication Deciding upon Marketing Communication Mix

Advertising
Developing and Managing advertising Decision on media and measurement Promotion Sales Promotions Publicity Public Relations

Marketing Communications

The means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell.

Corporate Image
I dont know who you are I dont know your company I dont know your companys products I dont know what your company stands for I don dont t know your companys company s customers I dont know your companys record I dont know your companys reputation Now what was it you wanted to sell?
Anonymous

Communication Objectives

Marketing Communication Or Promotion

Seeks to

Seeks to

Modify behavior or reinforce g behavior Existing

Inform, persuade or remind the g markets about the firms offering g Target

Marketing Communications
Inform
New Products, pack, feature benefits etc.

Persuade
To buy now

Remind
Maintain brand awareness & recall Product will be needed in near future Foreg: Seasonal products.. AC, Fans, Ice-cream, Cold drinks Occasion of Use where to buy the product

Difference with respect Switching from to competitors competitors by giving them clear reason Outlets where brands are available Pricing offered in market How product works Correct a ve perception Persuade to stay loyal with the brand

Communication Mix TYPES

Communication Mix

Personal Personal Selling Advertising

Non Personal Non-Personal

Promotions

Media

Direct Response

Consumer

Trade

Elements of I.M.C Mix

Tools that a company uses to pursue its advertising & marketing objectives 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 cos image Direct marketing Use of non-personal form of communication to communicate with select customer groups

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 g Product is complex Customers are few & reachable Employing push strategy

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 S i & relationships Service l ti hi are crucial i l

Communication Platforms
Advertising Print and broadcast ads Packaging inserts Motion pictures Brochures and booklets Posters Billboards POP displays g Logos Videotapes Sales Promotion Contests, games, sweepstakes Premiums Sampling Trade shows, exhibitions Coupons Rebates

Communication Platforms
Personal Selling Sales presentations Sales meetings Samples Fairs and trade shows Direct Marketing Catalogs Mailings Telemarketing Electronic shopping TV shopping Fax mail E-mail In formals

Communication Platforms
Public Relations Press kits Speeches Seminars Annual reports Charitable donations Publications Lobbying

Elements in the Communications Process

Media, Local News Salesperson, Retail Store etc

M. Manager Ad, Sales presentation, p , Ad Manager Ad. Store display Ad. Agency

Receiver Interpretation of message

Customers, listeners, viewers

News Articles Market Research Sales Results Other Advertisements Other store displays

Consumer Goods Classification

1. Convenience goods Staples Impulse goods Emergency goods 2. Shopping goods 3. Specialty goods
Convenience Goods: Daily consumption, Least Effort, Purchased frequently, Unit Price Low, Not Much Planning. Eg. Soap, newspapers, cigarettes etc. Marketer: Know they have to make these products available within easy reach.

Convenience Goods
Consumer Staples: Regularly purchased by l largest t majority j it of f consumers. Eg-Food E F d Products, Detergents, Dishwashing, soaps, Cleaning and Freshening homes homes, toothpaste, hair oil, cooking oil etc. Impulse Goods: Chocolates, Chocolates Potato Chips Chips, Soft Drinks, Cookies etc. Emergency Goods: Umbrella, Umbrella raincoats raincoats, Shawls, Medicines etc.

2. Shopping Goods
Cloths, Shoes, Laptops, Electronic, Carmers
Less Frequently, Element of Planning Not very easily assessable buyer ready to make more than 1 shopping trip. Involves more expenditure Buyer like to compare price, quality, models in no of f stores, t so stores t are clustered l t d in i market k t centers. Marketers M k t normally ll di directly tl sell ll t to retailers t il without routing supplies through wholesalers.

3. Specialty Goods
High Price Goods (Cars, Luxury Watches, High Price Dresses, Dresses Ornaments etc) etc). Substantial Involvement, less frequently purchased. Not purchased on basis of instant decision p of p purchase: Utility, y, Prestiage, g , Various aspects alternatives, experience of others Normally entire family involved in DM No wide distribution network, Co. Outlets located in potential markets. Go for selective distribution.

Response Hierarchy Models

Learn

Feel

Do

Response Hierarchy Models

Learn Feel Do High Involvement More Differentiation House, Automobiles Learn Do Feel High Involvement Do Learn Feel Low Involvement

Little OR No Little Differentiation Differentiation Airline ticket, Salt, Batteries Personal Comp.

By understanding and choosing right sequence, We can do a better job in M. Communications

Steps in Developing Effective Communications

Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Manage IMC

Advertising -Development and Management -Decisions on Media and Measurement

What is Advertising?
Advertising is Any Paid Form of Nonpersonal l Presentation P t ti and d Promotion P ti of f Ideas, Goods, or Services by an Identified Sponsor. Sponsor

Major Media Types

Television Newspapers Radio Magazines Outdoor Y ll Yellow P Pages Newsletters Brochures Telephone Internet Direct mail

Characteristics of Leading Media Advertizing- (I) Advertizing (I)-Television Television

Advantages Ability Abilit t to reach hb broad d segments of consumers Low L cost t per exposure Ability to demonstrate product use Ability to portray image and brand personality Disadvantages Brief High cost of production High cost of placement l t Lack of attention by viewers i

Characteristics of Leading Media Advertizing- (II) Advertizing (II)-Newspapers Newspapers

Advantages Disadvantages Considered C id d Life is Only ONE DAY Informational Weak Reproduction Most M t people l look l k upon Quality as compared advertising +vely. to magazines Broad coverage of local market Flexible-Space Flexible Space need not be reserved in advance

Characteristics of Leading Media Advertizing- (IV) Advertizing (IV)-Magazines Magazines

Very sharply defined audience to consumers Longest L t Lif Life Strong Message to target customers.

Characteristics of Leading Media Advertizing- (III) Advertizing (III)-Radio Radio

Advantages Disadvantages Local L lM Medium di Sound Only and Ads may easily be turned Large number of stations out t and d th their i di distinct ti t positions (Well Clutter is an issue as Segmented) many ads compete for consumer attention Low Cost if message frequency is well defined

Alternative Advertising Options Place Advertisement or out of home advertisement d ti t

Billboards Public spaces Product placement Point-of-purchase

Public Spaces: Movies, Airlines, Sports Arenas, Kiosks, public areas etc

Problems in Communicating to the Rural Audience

Large variations in language and culture Campaigns C i h have t to b be t tailor il made d f for product d t and region Product P d td demonstrations t ti in i haats h t , mandis di , and melas (fairs) are useful TV and d print i t media di d do not t reach h all ll villages ill and all customers Wall W ll paintings i ti and d signboards i b d very popular l Folk theatre, magic shows and puppet shows are also l used d as a media di vehicle hi l

Developing the Advertising Plan

The 5 Ms 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 & its effect on sales

MISSION : Defining the objectives

Possible objectives To inform
informing the market about a new product/service d t/ i 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

To persuade

To remind

Factors to Consider in Setting an Advertising Budget

Stage in the product life cycle Market a e s share aea and d co consumer su e base Competition and clutter Advertising frequency

MONEY : Allocating Budgets

Establishing IMC Budget

1. 2. 2 3. 4. 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
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.

Message: Deciding Content

Advertising can take either an emotional route or a rational route to convey the message. Concept of USP E Each h advertisement d i must make k a specific ifi proposition ii 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.

Message-Appeals
Rational Appeals: Strong Claim supported by numbers. Radio Mirchi Indias 2nd largest g 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 M i 2-Minute 2 Mi t N Noodles dl

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

Message-Appeals Cont
Humour Appeals: Important clutter breaker Newsweek (Times Magazine): If your Ad doesnt work in TM, Change your Ad Agency If your Ad doesnt work in TM,DONT Change your Ad Agency A Place Pl it i in N Newsweek. k Negative Appeals: Fear, Guilt, Shame Fear Appeals: Today a picture of safety, tomorrow a picture of di disaster t

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)

Media: Selecting Appropriate Media

Media options are: Print Media Audio visual Outdoor Data bases Direct mail Newspapers/magazines p p g 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. vs clutter

Media Selection
Reach Frequency q y Impact Exposure

Relationship among Trial, Awareness, and the Exposure Function

Measures of Audience Size TRP Ratings

Circulation Audience Effective audience Effective ad-exposed audience

Classification of Advertising Timing Patterns

Product Launch Communications Mix

Kleenex allocated its communications: 75% 75% Television 23% Print 2% Online

MEASUREMENT Evaluating Advertising Effectiveness

Communication Effect Research 1. 2. Consumer feedback method: Main Message g y you g get from is Ad What works well and what works poorly? Which is the best place to reach you with this message? Portfolio Tests: Asked to view and listen to many Ads (Asked to recall all Ads and its content. Lab Tests: Physiological reactions (Heartbeat, BP Etc) Asked to turn a knob to indicate their liking or disliking moment by moment.

3.

Current Consumer States for Two Brands

Media Panels Electronic device automatically record viewing b h i behavior Most Famous: Nelson Television index Nelson People Meter: Placed on top of TV TV. Which program who is watching, how many are watching. g Local coverage through distributing diaries Also take information on Demographic, SE profiles like education education, income etc etc. VERY USEFUL FOR BIG COMPANIES LIKE HUL, ITC, KELLOGS ETC. FOR SELECTING SPECIFIC PROGRAMS ON WHICH TO AIR THEIR COMMERCIAL.

PROMOTION Sales Promotion Publicity y Public Relations

Sales Promotion

Collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services b consumers or th by the t trade. d

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.

Sales Promotion Tools

Consumer-directed Free Samples Coupons Cash refund offers Price offs Premiums Product Warranties Patronage Awards p Tie-in promotions Trade-directed Temporary Price Cuts Renting Shelf space Cooperative advertising Volume Discounts Contests

Sales Promotion Tools

Consumer promotion tools

Sampling Free amount of Product Couponing Entitles bearer to stated saving on specific product d t 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.

Sales Promotion Tools

Consumer promotion tools Sampling p g to induce trial Couponing to induce repeat buying Price-offs to induce brand switching Premiums to induce p preponement p of p 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

Public Relations
Press relations P d t publicity Product bli it Corporate communications Lobbying Counseling Lobbying: y g Dealing g with Lawmakers/Government Officials to defeat law. Counseling: Ad Management about public issues, company position iti and di image i in good/bad d/b d ti times.

Major Tools in Marketing PR

Publications Events Sponsorships News Speeches Public Service Activities