PowerPoint to accompany

Fundamentals of IMC

Integrated Marketing Communication (IMC)

IMC is the concept of coordinating communication channels of delivering consistent and clear message towards its audience/customer.

Advertising. Sales promotion. Public relations. Direct and online marketing. Personal selling.

Challenges of IMC: The tools are developed in different departments that has its own objective Aeromatic Halal soap: Inconsistencies of their ad claim and distribution channel
Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Classifying IMC Media, Tools and Technologies

Mass Communication/media:

The use of mass media such as free to air television, radio, newspapers and magazines, as well as cinema and outdoor media. (Researches on Media) Most common communication elements are:

Advertising:

Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. (Benefit/limitations of ad) and research result of ads in different media Kotler says: It s distribution and promotion for BOP market
Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Table 12.1 A Classification of IMC Media

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

The Marketing Communication System

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Figure 12.2 Elements in the Communication Process

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Steps in Developing IMC

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Buyer-readiness States

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Determine Response Sought

Awareness: Through TVC/telco service provider

The communicator must be able to gauge the target audiences awareness of the product or organisation. Communicators need to learn the target audiences level of knowledge. How much does the target audience like the product? Does the target audience prefer the product to others? The communicator must build the targets conviction about buying the product. The communicator leads the target to purchase.

Knowledge: (Pepsodant tooth paste)

Liking: (Knowing through mr/meril shampoo)

Preference

Conviction: (through personal sales and demonstration)

Purchase

Pharmaceuticals promotion to hospital : No ads for medicine but no constraint for hospital
Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Selecting a Message

Ideally the message should:

Get Attention Hold Interest Arouse Desires Obtain Action (A framework known as the AIDA model)

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Major decisions in communications/AD: Figure 16.4

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Setting communication objectives:

A) Communication objectives (To inform/To persuade/To remind)

Informing and persuading heavily depend on ad

B) Sales Objectives (Sales objectives of RC and

PRAN

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Selecting a Message: Message Content Rational Appeals

Relate to the audiences self interest. They show how the product will produce the desires benefits (toothpaste). These stir up positive or negative emotions that can motivate purchase (Lottery). These are directed to the audiences sense of what is right and proper (Red cross or Ahsania mission)).

Emotional Appeals

Moral Appeals

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Selecting a Message

Message Structure-there are three messagestructure issues:

Whether to draw a conclusion or leave it to the audience? (Preferred for literate audience) Whether to present a one-sided or two-sided argument? (Preferred for rational buyers) Whether to present the strongest argument first or last? (Preferred for irrational buyers)/teenaged market) The communicator needs a strong format for the message. In print ads, the communicator decides on the headline, copy, illustration and colour. (Punch lines..) For radio, the communicator chooses words, sounds and voices (RJ for radio) For TV, all elements plus body language have to be planned.(TVC of Labaid hospital)
Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Message Format

Choosing Media

Personal Communication channels

Channels through which two or more people communicate directly with each other, including face-to-face, person-toaudience, over the telephone or through the mail (Critical

for service sector)/call centres as third party

agencies) (WOM/Buzz marketing)

Non-personal communication channels

personal contact or feedback, including media, atmosphere and events.(Channels that carry messages without personal contact) (Reach/frequency/impact)/ Promotional pollution for
audiences??!!!
Advantage and disadvantages are always there Selecting major media types: electronic, printed and alternative media
Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Selecting the Message Source

The messages impact on the audience is also affected by how the audience views the sender.

Messages delivered by highly credible sources are more persuasive e.g. professionals, actors and athletes (Ricky ponting/Tendulaker and AB)

Sources are made credible by expertise, trustworthiness, and likeableness. (Ambassador for UNICEF)

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Collecting Feedback

After sending the message, the communicator must gauge its effect on the target audience do they remember the message? What points are recalled? How they felt about the message and their past and present attitudes to the product and company.

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Setting the IMC Budget and Mix

Four common methods used to set the total budget for advertising:

1. affordable

method (SMEs) 2. percentage-of-sales method (oil

companies do % base promotion)

3. competitive-parity
Pepsi)/(Frooto and Frutika)

method (Coke VS

4. objective-and-task method(plc, market share,

nature of competition (Teletalk), advertisement frequency (Hamdard), Product differentiation

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Setting the IMC Mix

The marketing organisation must now divide the total marketing communication budget among the major marketing communication categories specific media, tools and technologies:

Media advertising Public relations Sales promotion Direct and digital marketing Personal selling
Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Considerations in Developing Integrated Marketing Communication

IMC program, including type of product and market, push versus pull strategy, buyer-readiness state and product life cycle stage. A push strategy involves pushing the product through marketing channels to final consumers. (TVC) A pull strategy directs marketing activities towards final consumers to induce them to buy the product. (WOM)/ NGO and social
marketing products
Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Advertising

Advertising can be traced back to the very beginnings of recorded history. Early Greeks, Romans and Phoenicians used advertising to inform and sell. Modern marketing is very different with $10 billion being spent each year on advertising in Australia alone.

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Possible Advertising Objectives

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Developing an Advertising Strategy

A large advertising budget does not guarantee a successful advertising campaign. Two advertisers can spend the same amount on advertising yet have very different results. The first step in creating effective advertising messages is to decide what general message will be communicated to consumers the message strategy.

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Message Execution: Class contribution..

Slice-of-life: this style shows one or more people using the product in a normal setting. Lifestyle: this style shows how a product fits in with a lifestyle. Fantasy: this style creates a fantasy around the product or its use. Mood or image: this style builds a mood or image around the product, such as beauty, love Musical: this style shows one or more people or cartoon characters singing a song about the product.

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Message Execution

Personality symbol: this style creates a character that represents the product. Technical expertise: this style shows the companys expertise in making the product. Scientific evidence: this style presents survey or scientific evidence that the brand is better or better liked than one or more other brands. Testimonial evidence: this style features a highly believable or likeable source endorsing the product.
Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Selecting Advertising Media

The advertiser next chooses advertising media to carry the message. The four major steps in media selection are:
1. 2. 3. 4.

Deciding on reach, frequency and impact. Selecting major media types. Deciding on media timing. Selecting specific media vehicles.

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Profiles of the Main Media Types

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Very difficult to measure??!!

Measuring the Sales Effect: Is this

For example: What sales are caused by an ad that increases brand awareness by 20% and brand preference by 10%? The sales effects of advertising are often harder to measure than the communication effect as sales are affected by many factors besides advertising. One way is to measure the sales effect of advertising is to compare past sales with past advertising expenditures, another is experimentation. Measuring the results of advertising expenditure remains inexact.

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

International Advertising Decisions: Understanding cross cultural differences

The major decision is the degree to which global advertising should be adapted to the unique characteristics of various country markets. Standardisation has benefits such as lower costs and greater coordination of global efforts but ignores cultural differences. Most companies think globally and act locally. Costs and legislative requirements in different countries need to be considered.

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Public Relations Decisions

Another major mass-communication tool is public relations it aims at building good relations with the companys various publics using different tools:

Press relations Product publicity Public affairs Lobbying Investor relations Development
Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Major Public Relations Tools

News Speeches Special events Written materials Audiovisual materials Corporate identity materials Community service activities

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Socially Responsible Marketing Communication

Advertising

Companies must avoid false or deceptive advertising. Advertisers must not create ads that have the capacity to deceive. Sellers must avoid bait-and-switch advertising that attracts buyers under false pretences.

Personal selling

Companies must ensure their salespeople follow the rule of fair competition when they sell the products directly.

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Socially Responsible Marketing Communication

Direct and Digital Marketing:

Direct and digital marketers and their customers usually enjoy mutually rewarding relationships. However, unfairness, deception and fraud are the dark side that may emerge. The direct marketing industry has also faced growing concerns about invasion of privacy issues (Insurance service provider).

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

PowerPoint to accompany

Chapter 13
IMC: Sales Promotion and Personal Selling

Chapter Objectives (1)

1.

2.

3.

Describe sales promotion tools and techniques which may be used to create immediacy and close sales, as well as reward loyal customers. Discuss the role of a company's salespeople in creating value for customers and building customer relationships. Identify the six major salesforce management steps.
Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Chapter Objectives (2)

4.

5.

6.

Explain how companies recruit, select and train salespeople. Describe how companies compensate and supervise salespeople, and how they evaluate salesforce effectiveness. Discuss the personal selling process, distinguishing between transactionoriented marketing and relationship marketing.

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Sales Promotion

Sales promotion is the act of influencing customer/consumer perception and behaviour to build market share and sales which reinforces brand image.
1.

Sales promotion is a term that is closely linked with direct and digital marketing, but has its origins in FMCG. Although the words may be used to mean different things in different organisations, nearly all marketing scientists and practitioners agree on what sales promotion tools do. They cover a range of incentives that are used with products promoted via either mass media advertising or by direct and digital methods.

2.

3.

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Purpose of Sales Promotion

Sellers use sales promotions to attract new triers, to reward brand-loyal customers and thereby retain them, to reduce the time between purchases, and even to turn light users into medium or heavy users. The aim might also be to regain past purchasers who have ceased buying. New triers of a product category fall into one of three groups:

non-users. loyal users of another brand. brand switchers.

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Setting Sales Promotion Objectives

Sales promotion objectives are as varied as the methods used. Sellers may use consumer promotions to increase short-term sales or to help build long-term market share. The objective may be one of the following: to entice consumers to try a new product or brand. to lure consumers away from competitors products or brands. to get consumers to load up on a mature product. to hold and reward loyal customers.
Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Sales Promotion

The main tools falling into this category include: 1. Samples 2. Redeemable coupons 3. Cash-back offers 4. Cents-off deals or price packs 5. Premium offers 6. Advertising specialties 7. Patronage rewards 8. Point-of-purchase (POP) promotions 9. Contests and games of chance and skill
Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Sales Promotion

Trade Promotion Tools

An incentive applied to the retail trade to stock more of a product or to provide increased merchandising space, usually during a consumer promotion.

Business-to-Business Promotion Tools

Industrial marketers adapt many promotion tools to suit their own situations in addition to conventions, trade shows and sales contests
Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Developing Sales Promotion Programs

A number of decisions must be made in order to define the full sales promotion program:

Size of the incentive. How to promote and distribute the program. The length of the promotion. Evaluation.

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Personal Selling

There are many types of personal selling jobs, and the role of personal selling can vary greatly from one industry to another and from one company to another. The people who do the selling go by many names:

Salespeople Sales representatives Account executives/representatives Sales consultants/engineers Agents District mangers Marketing representatives
Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

The Role of the Salesforce

Personal selling is the interpersonal arm of the promotion mix. Advertising consists of one-way, non-personal communication with target consumer groups. In contrast, personal selling involves two-way, personal communication between salespeople and individual customerswhether

face-to-face by telephone through video conferences or by other means This means that personal selling can be more effective than advertising in complex selling situations.
Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Managing the Salesforce

Salesforce Management

The analysis, planning, implementation and control of salesforce activities. It includes setting salesforce objectives, designing salesforce strategy, and recruiting, selecting, training, compensating, supervising and evaluating the firms salesforce.

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Recruiting and Selecting Sales People

At the head of a successful salesforce operation is the selection of good salespeople. Successful salespeople include a variety of people but the best share four key talents:

Intrinsic motivation Disciplined work style The ability to close a sale The ability to build relationships with customers

Top performers are empathetic, patient, caring, responsive, good listeners and honest.

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Nudie

Click on this link to view the Nudie video case study

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Recruiting and Selecting Sales People

Recruiting Procedures

The personnel department looks for applicants by getting names from current salespeople, using employment agencies, placing job ads and contacting university students. Selection procedures vary from a single informal interview to lengthy testing and interviewing. Tests typically measure sales aptitude, analytical and organisational skills, personality traits and other characteristics. Required information about applicants includes personal characteristics, references, past employment history and interviewer reactions.

Selecting Salespeople

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Nudie

Click on this link to view the Nudie video case study

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Training Salespeople

Today, the average training period for a salesperson is four months. Training programs have several goals:

Sales people need to know and identify with the company. They need to be familiar with the companys products. They need to know customers and competitors characteristics. Salespeople must know how to make effective presentations and be trained in the principles of selling. They need to understand field procedures and responsibilities.

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Compensating Salespeople

To attract need salespeople, a company must have an attractive compensation plan. The level of compensation must be close to the going rate for the type of job and skills required. Compensation is made up of several elements-a fixed amount, a variable amount, expenses and fringe benefits. Management must decide what mix of these compensation elements makes the most sense for each sales job.

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Supervising and Motivating Salespeople

New salespeople need supervision to help them work smart. Motivation helps them to work hard and energetically towards agreed salesforce goals. Salespeople need to use their time efficiently, tools include:

Annual call schedule Time and duty analysis Salesforce automation systems

Management can boost salesforce morale and performance through:

Sales quotas Positive incentives

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Figure 13.2 How Salespeople Spend Their Time

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Evaluating Salespeople and Performance

Sources of Information about salespeople are derived in several ways:

Sales reports Call reports Expense reports Personal observation Customers letter and complaints Customer surveys Other salespeople

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

The Personal Selling Process

Steps in the Selling Process:

Prospecting Pre-approach Approach Presentation and demonstration Handling objections Closing Follow-up

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Personal Selling and Relationship Marketing

Relationship marketing (RM) is the process of creating, maintaining and enhancing strong, value-laden relationships with customers and other stakeholders. RM emphasises building and maintaining profitable longterm relationships with customers by creating superior customer value and satisfaction. More companies are realising that winning and keeping accounts requires more than making good products and closing lots of sales. It requires a carefully coordinated, whole-company effort to create value-laden satisfying relationships with important customers.

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia