Books Recommended

Integrated Marketing Communications Ad ertising Advertising Promotions

Session Coverage ‰Integrated Marketing Communications ‰Importance ‰I t and d Role R l off 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 ¾ I don’t know who you are ¾ I don’t know your company ¾ I don’t know your company’s products ¾ I don’t know what your company stands for ¾ I don don’tt know your company’s company s customers ¾ I don’t know your company’s record ¾ I don’t know your company’s reputation Now what was it you wanted to sell? Anonymous

Communication Objectives

Marketing Communication Or Promotion

Seeks to

Modify behavior or reinforce g behavior Existing

Seeks to

Inform, persuade or remind the g markets about the firm’s offering g Target

Marketing Communications Inform

Persuade

Remind

New Products, pack, feature benefits etc.

To buy now

Maintain brand awareness & recall

Difference with respect Switching from to competitors competitors by giving them clear reason Outlets where brands are available

Persuade to stay loyal with the brand

Product will be needed in near future Foreg: Seasonal products.. AC, Fans, Ice-cream, Cold drinks

Pricing offered in market

Occasion of Use

How product works

where to buy the product

Correct a –ve perception

Communication Mix TYPES Communication Mix

Personal

Non Personal Non-Personal

Personal Selling Advertising

Media

Direct Response

Promotions

Consumer

Trade

Elements of I.M.C Mix Tools that a company uses to pursue it’s advertising & marketing objectives objectives. ¾ Advertising Any paid form of non-personal promotion by an identified sponsor ¾ Personal selling Face to face presentation & selling ¾ Sales promotion Short term incentives to encourage trial or purchase ¾ Public relations Relationship building plan with the outside world to build & protect co’s image ¾ Direct marketing Use of non-personal form of communication to communicate with select customer groups

Relevance of the IMC Elements ¾ Advertising -

-

When product is widely distributed Market is large & spread out Demo is not an important criteria Literacy levels exist

¾ Personal selling -

-

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

Relevance of the IMC Elements (contd…) ¾ Sales promotion -

When short-term gains are desired New product requires to induce trial Brand switchers are to be targeted

¾ Public relations -

Long term relationships are targeted Building public opinion Pre-event hype is required

¾ 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

Receiver Interpretation of message

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

News Articles Market Research

Other Advertisements

Sales Results

Other store displays

Customers, listeners, viewers

Response Hierarchy Models

Learn

Feel

Do

Response Hierarchy Models Learn Feel Do High Involvement

Learn Do Feel High Involvement

More Differentiation

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

House, Automobiles

Do Learn Feel Low Involvement

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

AIDA - different tools for different jobs •

Attention

– What will you do to capture the attention of your target market? (Advertising, PR) •

Interest

– How will you hold their interest to facilitate message processing? (Ads, PR, personal sales, contests, etc.) •

Desire

– How will you connect the problem someone has to the product/service offered so the target market desires the product to meet the need? (Advertising (Advertising, personal sales) •

Action

–H How will ill you gett th the consumer tto ttake k action ti within ithi a specified time frame? (Personal sales, sales promotion)

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 Nonpersonall Presentation P t ti and d Promotion P ti off 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 tto reach hb broad d segments of consumers • Low L costt 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.

Print Ad Components

Picture

Headline Copy Signature

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 outt 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 tto b be ttailor il made d ffor 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 nott reach h allll 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 M’s 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 & it’s effect on sales

The Five M’s of Advertising

MISSION : Defining the objectives Possible objectives • To inform – -

• To persuade

-

• To remind

-

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

Factors to Consider in Setting an Advertising Budget Stage in the product life cycle Market a e sshare aea and d co consumer su e base Competition and clutter Advertising frequency

MONEY : Allocating Budgets

Establishing IMC Budget • • 1. 2. 2 3.

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 •

4.

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 ¾E Each h advertisement d i must make k a specific ifi proposition ii to the consumer : Buy this product & you will get this benefit. ¾ The proposition must be one that competition either cannot or does not offer: It must be unique. ¾ 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 “India’s 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 doesn’t work in TM, Change your Ad Agency” • “ If your Ad doesn’t work in TM,DON’T Change your Ad Agency” A ” Place Pl it iin 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: ¾ Print Media ¾ Audio visual ¾ Outdoor ¾ Data bases ¾ 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: ¾ Circulation/ readership/ viewer ship ¾ Reach-penetration ¾ Feasibility ¾ Cost ¾ 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. – – –

Consumer feedback method: Main Message g yyou g get from is Ad What works well and what works poorly? Which is the best place to reach you with this message?

2.

Portfolio Tests: Asked to view and listen to many Ads (Asked to recall all Ads and its content.

3.

Lab Tests: Physiological reactions (Heartbeat, BP Etc) Asked to turn a knob to indicate their liking or disliking moment by moment.

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 ttrade. 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 d iimage iin good/bad d/b d titimes.

Major Tools in Marketing PR • • • • • •

Publications Events Sponsorships News Speeches Public Service Activities