Integrated Marketing Communication. What is Marketing

Integrated Marketing CommunicationIntegrated Marketing Communication

What is Marketing

Marketing….. defined

• The Chartered Institute of Marketing define marketing as

'The management process responsible for identifying , anticipating and satisfying customer requirements profitably'

• Philip Kotler defines marketing as

'satisfying needs and wants through an exchange process'

• P.Tailor of suggests that

'Marketing is not only about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer

• Several experts argue that

Marketing is the management process responsible for identifying, anticipating and satisfying customers’ requirements profitably

What is Marketing?• Marketing is all about –

- Identifying the need of the customer and developing product accordingly

- Spreading awareness /creation of need

- Building relationships with the customers

- Ensuring maximum customer satisfaction

Definition

• Marketing Communications Mix– The specific mix of advertising, personal

selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.

Indian Institute of Learning & Advanced DevelopmentNational Expressway– 8, 81-P Sector 34, Gurgaon – 122002, HR

Point ofPurchase

Publicity

PublicRelations

DirectMarketing

InteractiveMarketing

SpecialEvents

Packaging

SalesPromotion

DirectResponse

MediaAdver-tising

Traditional Approach to Marketing Comm.

MAJOR OBJECTIVES OF MARKETING COMMUNICATIONS

InformingInforming PersuadingPersuading

RemindingReminding

Defining Advertising• The non-personal communication of information usually

paid for & usually persuasive in nature, about products (goods & services) or ideas by identified sponsor through various media. -(Arenes 1996)

• Any paid form of non-personal communication about an organisation, product ,service, or idea from an identified sponsor.

- (Blech & Blech 1998)

Advantages• Reaches to a large number of audience at once

• It is repetitive in nature

• Creativity in ads can catch the eye of audiences

• Successful ads can help in building brands and increasing sales

Disadvantages• It is costly in nature

• It is one way communication

• If does not performs well then it can prove to be fatal

Types of Advertising

Print Advertising

• Advertising products via newspapers or magazines is a common practice.

• In addition to this, the print media also offers options like promotional brochures and fliers for advertising purposes.

• It is a paid form of advertising

Outdoor Advertising

• Outdoor advertising is also a very popular form of advertising, which makes use of several tools and techniques to attract the customers outdoors.

• The most common examples of outdoor advertising are billboards, kiosks, and also several events and tradeshows organized by the company.

Broadcast advertising

• Broadcast advertising is a very popular advertising medium that constitutes of several branches like television, radio or the Internet.

• This is a form of advertising that seeks to attract the masses at once

Covert Advertising

• Covert advertising is a unique kind of advertising in which a product or a particular brand is incorporated in some entertainment and media channels like movies, television shows or even sports.

• There is no commercial in the entertainment but the brand or the product is subtly( or sometimes evidently) showcased in the entertainment show.

Surrogate advertising

Public Service Advertising

• Public service advertising is a technique that makes use of advertising as an effective communication medium to convey socially relevant messaged about important matters and social welfare.

Celebrity Advertising

• Using celebrities for advertising involves signing up celebrities for advertising campaigns, which consist of all sorts of advertising including, television ads or even print advertisements.

Teaser Advertising

• Brief advertisement designed to tease the public by offering only bits of information without revealing either the sponsor of the ad or the product being advertised.

• Teaser ads are the frontrunners of an advertising campaign, and their purpose is to arouse curiosity and get attention for the campaign that follows.

Gimmick Advertising

• In this effects are not classified. Humour, exaggeration and other trick devices are employed to capture attention.

• It has been mostly found that the customers mostly relate to this form of advertising easily.

Shock advertisements

AIDA Model• Attention

• Interest

• Desire

• Action

Sales Promotion and Merchandising

Sales Promotion• Sales promotions are the short term initiatives from the

side of the companies to boost up their sales.

• Sales promotions can be directed at either the customer or distribution channel members (such as retailers).

• Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions.

Roles of Sales Promotion and Merchandising

1. Getting customers to try a new service or menu item.

2. Increasing off-peak sales.3. Increasing sales in periods that coincide

with major events, vacations, or special occasions.

4. Encouraging travel intermediaries to make an effort to sell services.

5. Helping sales representatives get business from prospects.

6. Facilitating intermediary sales.

What do we want the consumers and trade to do?

• Buy More • Buy Now

A sales promotion should be

• Temporary – if not the consumers would not believe it the next time

• Great Value Added – they should find reason to buy now and more

Types of Sales Promotions

• Coupon• Bonus Packs• Specialty container• Continuity program• Refund• Contest• Sampling• Price off

Trade oriented promotion

Direct Marketing• Direct marketing - Direct communications with

carefully targeted individual consumers to obtain a positive response and cultivate lasting or enduring customer relationships.

• Direct marketing usually is carried out through telephone (telemarketing and telesales), direct mail (brochures, catalogs, flyers), online computer shopping, and cable television infomercials and home shopping networks.

Advantages from customer’s perspective

• Customers enjoy the convenience of direct marketing as they do not have to battle traffic, find a parking space, or shop through stores.

• Its time saving for the customer as he gets all the necessary information available at his doorstep

• Direct marketing can also offer a wider selection of products while making comparison shopping easier with greater access to alternative or competing products.

Advantages from seller’s perspective

• It is a great tool in customer relationship building as it provides direct communication with customers.

• Direct marketing also can reduce costs while increasing the speed and efficiency of the operation.

Limitations• Has not proved to be efficient for numerous

organizations in the recent past

• Might dilute the brand image, if followed very aggressively

Direct Marketing through ‘Infomercials’

Personal Selling

• Personal selling is oral, face to face communication with potential buyers of a product with the intention of making a sale.

• The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale

Advantages• Personal selling is a face-to-face activity; customers therefore

obtain a relatively high degree of personal attention• The sales message can be customised to meet the needs of the

customer• The two-way nature of the sales process allows the sales team

to respond directly and promptly to customer questions and concerns

• Personal selling is a good way of getting across large amounts of technical or other complex product information

• The face-to-face sales meeting gives the sales force chance to demonstrate the product

• Frequent meetings between sales force and customer provide an opportunity to build good long-term relationships

Disadvantages• The main disadvantage of personal selling is

employing the correct sales force.

• Keeping a track on the activities of the sale officials is another problem for the organizations

What is public relations?

• Public relations is the management of communication between an organization and its publics

- Grunig & Hunt-Managing Public Relations

MarCom: MAIN OBJECTIVES

INFORMING•Product Launch phase•Explanations ofProduct’s features & benefits

REMAINDING•Product Sales Growth phase•Competitive positioning

PURSUADING•Convincing the customers•Applies to consumers’ memory(brand specific)

TARGETAUDIENCE

F I G U R E 4 . 1

The IMC Planning Process

CustomersCompetitors

Communication

BudgetTargetMarket

ProductPositioning

IMCComponents

Objectives

IMC Planning Process

Step 1: Current Context and Situation (Market Analysis)Customer Analysis

Current customersFormer customersPotential customersCompetitors’ customers

Step 1: Current Context and Situation (Market Analysis)Competitor Analysis

Direct competitorsIndirect competitors Market leadersIdentify communication strategies and tactics of each

competitor through primary and secondary research. What do consumers and others say/think about the

competition?

Step 1: Current Context and Situation (Market Analysis)Communication Analysis

Company Communication Current communications at all levels and in all channels

Industry Communication What types of strategies are used in the industry by

competing firms.

IMC Planning ProcessStep 2: Target Market and Positioning AnalysisSelection of target markets

Consumer marketsBusiness marketsDual markets

Product/service/brand PositioningCreated by factors such as product quality, prices,

distribution, image and market communicationPerception created by consumer regarding the company

and its products relative to the competition

• Product Attributes• Competitors • Use or application • Price/quality• Product user• Product class• Cultural symbol

F I G U R E 4 . 6

Product Positioning Strategies

• Marketing Segmentation and Promotion– Segmentation helps to clarify marketing objectives

geared towards specific target markets – critical to address in the planning process.

– This allows for more precise communications budgeting.

– This also helps link the firm’s strategies and tactics to a specific target group.

Determining Viable Market Segments

• The segment is different from the population as a whole and distinct from other market segments.

• The segment is large enough to be financially viable to target with a separate marketing campaign. Examples?

• The individuals or businesses within the segment are homogeneous.

Segmentation Variables

• Demographics• Psychographics • Geographic• Benefits Sought• Usage• Geodemographic Segmentation

– Combines census demographic data with psychographic and geographic information

Marketing Communications Objectives

Communications Objectives

OrganizationContext

TargetMarkets

Positioning

Budget IMC Components

Develop brand awareness Increase category demand Change customer beliefs and attitudes Enhance purchase actions Encourage repeat purchases Build customer traffic Enhance firm image Increase market share Increase sales Reinforce purchase decisions

F I G U R E 4 . 7

Communication Objectives

Step 4: Budget Planning and ConsiderationsBudgets based on

Communication objectives Overall marketing objectives

Budgets vary from consumer to B-to-B markets

Unrealistic assumption to assume direct relationship between advertising sales and market share

Creating a Communications Budget

Most common methods of creating a communications budget include:

• Percentage of sales• Competitive-Parity method• Objective and task method

Step 5: IMC ComponentsTraditional advertisingTrade promotionsConsumer promotionsMedia spendingAlternative media spending

UNIT 2

What is Ad agency

Ad agencies are organizations which undertakes advertising assignments from business organizations which are not able to establish their separate Ad departments or can not devote time, money and effort on research activities

Ad agencies• Operation Research group• Market motivation studies• Marketing advertising Associates Pvt Ltd• Market analysis and product promoters• Advertising and marketing associates• Ulka advertising• Adroit advertising• Radius advertising• Thomas associates• Marketing and Industrial development association

Merits

• Expertise

• Conducts training

• Flexible

• Saves time and effort

Demerits

• High fees

• Chances of information leakage

• Might not do full justice with the projects in some cases

Advertising Copy

• Text of a print, radio, or television advertising message that aims at catching and holding the interest of the prospective buyer, and at persuading him or her to make a purchase all within a few short seconds.

• The headline of an advertising copy is said to be the most important part, and quite often a small change in its wording brings disproportionate results.

• Although a short advertising copy is more common in consumer-product advertising, according to the UK advertising guru David Ogilvy (1911-1999) people do read (and listen or attend to) lengthy advertisements if they are skillfully written.

• Most advertising copy is based on advertising/consumer research and is composed by professional copywriters hired by advertising agencies. Also called advertisement copy, ad copy, or just copy.

Marketing tactics in an AD copy• Credibility - Offering the visitor believability about the

product or brand.• Attention - Something that grabs the visitor’s attention

such as the keywords or keyword phrases.• Promise of Benefit - Whether it is offering information or

just a particular product, the ad copy generally has some promise of benefit for the visitor if he or she clicks on the link.

• Action - The goal of ad copy is almost always to get some kind of action or reaction out of the visitor. Whether it is to just visit a landing page, fill out a form, or actually purchase a product, the goal of most ad copy is the same, and involves some kind of action.

Writing an Ad copy• Start your copy with a striking opening statement

that will get the attention of your reader. This opening statement may be:

“Looking for bright and shinning corporate career of your child, **** offers attractive placements and overall development to your child" (from a Management school)

or“ Climb the ladders of the success in the Corporate world”

Writing an Ad copy

- Then, after your striking opening statement, you justa) Make a promiseb) Back it up with convincing proof andc) Ask for action

Writing an Ad copy

1. Make a promise

“ **** delivers the best knowledge and expertise to our students in several fields. We enable our students to be the best practitioners of their knowledge by giving them an international exposure and providing them with superior placements”

Writing an Ad copy

2. Back it up with convincing proof

For a B- School, a convincing proof is the placement records of its students, quality of faculties, their research works, infrastructure and other available features

Writing an Ad copy

3. Ask for action

“The last date of filling the registration forms is ****. Contact Person*****Number: ********* "

Advertising Research• Advertising research is a specialized form of

research that works to improve the effectiveness and efficiency of advertising.

• It can be studied from two perspectives

– Strategic research– Evaluative research

• Advertising research includes pre-testing (also known as copy testing) and post-testing of ads and/or campaigns—pre-testing is done before an ad airs to gauge how well it will perform and post-testing is done after an ad airs to determine the in-market impact of the ad or campaign on the consumer.

Pre testing or copy testing

• Pre-testing is also used to identify weak spots within an ad campaign, to more effectively edit 60-second ads to 30-second ads or 30’s to 15’s, to select images from the spot to use in an integrated campaign’s print ad, to pull out the key moments for use in ad tracking, and to identify branding moments.

Advertising Strategy Research

• Pre campaign tests1) Consumer Jury2) Rating points

3) Portfolio tests4) Physiological tests

Galvanic Skin responseEye movement testThe pupil reader (pupilometer)

Pre Testing

5) Concept and theme testingUtilitarian themeFocused themeInformative themeAchievement oriented themeNew product

Advertising Evaluation Research• Post campaign tests1)Inquiry Test2)Sales Test3)Recall test (aided and unaided)4)Recognition

Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion

Creates Needs andWants Among Consumers

Promotes Materialism,Insecurity and GreedPromotes Materialism,Insecurity and Greed

Is More PropagandaThan InformationIs More PropagandaThan Information

ProvidesInformationProvidesInformation

Creates Jobs and Helps New Firms Enter a Market

EncouragesA Higher StandardOf Living

PromotesCompetition inThe Marketplace

Is More PropagandaThan InformationIs More PropagandaThan Information

Creates Needs andWants unnecasarilyCreates Needs andWants unnecasarily

Creates Jobs and Helps New Firms Enter a Market

EncouragesA Higher StandardOf Living

ProvidesInformationProvidesInformation

Advertising and Promotion: Two Viewpoints

Proponents Argue That Advertising and Promotion:Proponents Argue That Advertising and Promotion:

Critics Argue That Advertising and PromotionCritics Argue That Advertising and Promotion

PromotesCompetition inThe Marketplace

Not All Issues Can Be RegulatedNot All Issues Can Be Regulated

A Marketing or Promotion Action May Be Legal but Not Considered Ethical

Marketers Must Make Decisions Regarding the Appropriateness of Their Actions

A Marketing or Promotion Action May Be Legal but Not Considered Ethical

Not All Issues Can Be RegulatedNot All Issues Can Be Regulated

Ethics in Advertising and Promotion

Ethics: Moral principles and values that govern the actions of and individual or group.Ethics: Moral principles and values that govern the actions of and individual or group.

General Mistrust of Advertising and Among Consumers. Many Do Not Perceive Ads As Honest or Believable

Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium Offers

Unethical And/or Deceptive Practices Involving Mail Order, Telemarketing and Other Forms of Direct Marketing

Internet Scams and AbusesInternet Scams and Abuses

Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium Offers

Unethical And/or Deceptive Practices Involving Mail Order, Telemarketing and Other Forms of Direct Marketing

Advertising and Promotion as Untruthful or Deceptive

Objections to AdvertisingOf Certain Products

Use of SexualAppeals And/orNudity

Use of Shock Ads

Advertising as Offensive or in Bad Taste

Many People Found Benetton’s “Death Row” Ad Campaign Offensive

Advertising and Children

Children's TV Watching BehaviorChildren's TV Watching Behavior

Children between ages 2-11 watch on average 21.5 hours of TV per week and may see 22,000 commercials per year

Television is an important source of information for children about products

Does Advertising Make People Buy ThingsThey Don’t Need?

Does Advertising Encourage Materialism? Does Advertising Encourage Materialism?

Today, it has also become a medium to make the consumers aware about their rights

Advertising helps in creating awareness amongst the masses

Social and Cultural Consequences of Advertising

Advertising is justA Reflection of Society?Advertising is justA Reflection of Society?

Portrayal of Women to Reflect Their Changing Role in Society

Portrayal ofWomen AsSex Objects

Ethnic Stereotyping/Representation of Minorities

Portrayal ofWomen AsSex Objects

Gender StereotypingGender StereotypingGender StereotypingGender Stereotyping

Portrayal of Women to Reflect Their Changing Role in Society

Advertising and Stereotyping

Portrayal ofThe ElderlyPortrayal ofThe Elderly

Criticisms of AdvertisingWith Regard to Stereotyping

Advertising Budget

• This is the translation of advertising plan into money

• It includes a large body of information embracing product facts and competitive situation

Advertising budget process

• Collection of data and preparation of budget• Presentation and approval of budget• Budget execution• Control of budget

Methods

• Profit Maximization• Advertising as a percentage of sales• Return on investment method• Competitive parity method• Objective and task method

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