IMC

Tools and Techniques

IMC plan
Marketing Objectives Analysis of promotional program situation Analysis of communications process Budget determination Develop Integrated marketing communications program
Advertising Sales Promotion Personal selling
PR DM

Integration and implementation of communication strategies Monitoring, evaluating and controlling IMC program

Advertising vs Sales Promotion

Advertising uses a variety of appeals to offer a reason why for purchase Primary appeal is emotional, sales promotions are rationalan immediate incentive to purchase Advertising objectives are generally long term and include brand building Sales Promotions objective is to get a sale quickly or induce trial

Sales Promotions
Price Deals-product available at less than normal price, during deal period. Objective: New product trial Immediate sales build up Inventory at trade level Inventory clearance at trade To counter competitive moves Quantity Deals- more quantity of same product available at no extra cost or just nominal increase Objective: Prolonged consumption trade up consumers to larger packs move large quantiy from factory

Discounts- Other than normal cash discounts Objective: Push more stock to trade for immediate or early cash Coupons- A certificate that entitle the customer to some savings or claim free/discounted gift Objective: Encourage product trial Reward customer loyalty Encourage continued usage Introduce new product Solicit enquiries Refund or rebate- Money back offered on proof of purchase Objective: Encourage primary users to try the product Encourage brand switching Loading stock to dealers Obtain retail display

Trading Stamps- Stamps attached to quantity of purchase, redeemable for various products or services Objective: Build customer loyalty Ensure repeat purchase Premiums- A reward given to customer . Premiums and products may or may not be interrelated Objective: Reward customer loyalty Encourage continued usage Encourage new product trial Promote off-season purchase of product Different types of premium Packaged premium (encourage new product trial) Banded premium Container premium (long term reminder) Over-the-counter premium (inventory clearance) Free-in-mail premium (encourage brand loyalty) Self-liquidating premium

Sampling Objective: Induce initial product trial Encourage experiencing product first hand Consumer Contests, Sweepstakes: Consumers invited to participate based on GK, skills or creativity, chance or luck Objective: Create excitement around brand Create brand awareness, increase attention and attract new customers Increase footfall to retail counters Encourage purchase Pre-empt competitor moves Induce trial Dealer Sales Contest Objective: Increase sales Motivate dealer salesmen

Dealer Gifts Objective: Build relationship Gain dealer co-operation Push money; Money offered to trade for pushing specific brands or products Objective: To motivate dealer to sell the specific line Merchandise deals- Additional quantity of same or some other product on purchase of specific quantity of some product Objective: Shift inventory Expose other products

Demonstration Objective: Convince customers Motivate dealers Reinforce advertising Increase involvement of dealers, sales force, and customers Trade allowances- Temporary price reduction or reimbursement of expenses (use of push strategy) Trade or buying allowance Buy-back allowance Count and recount Display allowance Co-operative advertising Trade fairs and exhibitions

Factors influencing Sales Promotion Growth

Increasing Competition Customers becoming more price sensitive Immediate positive impact on sales Increase in parity products Consumer acceptance of sales promotions Expectations of price decrease Advertising ineffectiveness Increase in trade power Emphasis on sales volume Maximising profits Introducing an element of interest (ex: Scratch card at petrol bunks) Encouraging impulse buying

Advantages/Disadvantages
Advantages: Price discrimination Effect on consumer behaviour Effect on trade behaviour Drawbacks: Decrease in brand loyalty Increased price sensitivity Quality may be tarnished Dealers may forward buy and divert stock Short term orientation