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As the term suggests, marketing communication functions within a
marketing framework. Traditionally known as the promotional element of
the four Ps of marketing (product, place, price, and promotion), the primary
goal of marketing communication is to reach a defined audience to affect its
behavior by informing, persuading, and reminding. Marketing
communication acquires new customers for brands by building awareness
and encouraging trial. Marketing communication also maintains a brand's
current customer base by reinforcing their purchase behavior by providing
additional information about the brand's benefits. A secondary goal of
marketing communication is building and reinforcing relationships with
customers, prospects, retailers, and other important stakeholders.
Successful marketing communication relies on a combination of options
called the promotional mix. These options include advertising, sales
promotion, public relations, direct marketing, and personal selling. The
Internet has also become a powerful tool for reaching certain important
audiences. The role each element takes in a marketing communication
program relies in part on whether a company employs a push strategy or a
pull strategy. A pull strategy relies more on consumer demand than
personal selling for the product to travel from the manufacturer to the end
user. The demand generated by advertising, public relations, and sales
promotion "pulls" the good or service through the channels of distribution.
A push strategy, on the other hand, emphasizes personal selling to push the
product through these channels.
Figure 1
Elements of Marketing Communication
For marketing communication to be successful, however, sound
management decisions must be made in the other three areas of the
marketing mix: the product, service or idea itself; the price at which the
brand will be offered; and the places at or through which customers may
purchase the brand. The best promotion cannot overcome poor product
quality, inordinately high prices, or insufficient retail distribution.
Likewise, successful marketing communication relies on sound management
decisions regarding the coordination of the various elements of the
promotional mix. To this end, a new way of viewing marketing
communication emerged in the 1990s. Called integrated marketing
communication, this perspective seeks to orchestrate the use of all forms of
the promotional mix to reach customers at different levels in new and better
ways.
INTEGRATED MARKETINGCOMMUNICATION
The evolution of this new perspective has two origins. Marketers began to
realize that advertising, public relations, and sales were often at odds
regarding responsibilities, budgets, management input and myriad other
decisions affecting the successful marketing of a brand. Executives in each
area competed with the others for resources and a voice in decision making.
The outcome was inconsistent promotional efforts, wasted money,
counterproductive management decisions, and, perhaps worst of all,
confusion among consumers.
Secondly, the marketing perspective itself began to shift from being market
oriented to market driven. Marketing communication was traditionally
viewed as an inside-out way of presenting the company's messages.
Advertising was the dominant element in the promotional mix because the
mass media could effectively deliver a sales message to a mass audience.
But then the mass market began to fragment. Consumers became better
educated and more skeptical about advertising. A variety of sources, both
controlled by the marketer and uncontrolled, became important to
consumers. News reports, word-of-mouth, experts' opinions, and financial
reports were just some of the "brand contacts" consumers began to use to
learn about and form attitudes and opinions about a brand or company, or
make purchase decisions. Advertising began to lose some of its luster in
terms of its ability to deliver huge homogeneous audiences. Companies
began to seek new ways to coordinate the multiplicity of product and
company messages being issued and used by consumers and others.
Thus, two ideas permeate integrated marketing communication:
relationship building and synergy. Rather than the traditional inside-out
view, IMC is seen as an outside-in perspective. Customers are viewed not as
targets but as partners in an ongoing relationship. Customers, prospects,
and others encounter the brand and company through a host of sources and
create from these various contacts ideas about the brand and company. By
knowing the media habits and lifestyles of important consumer segments,
marketers can tailor messages through media that are most likely to reach
these segments at times when these segments are most likely to be
receptive to these messages, thus optimizing the marketing communication
effort.
Ideally, IMC is implemented by developing comprehensive databases on
customers and prospects, segmenting these current and potential
customers into groups with certain common awareness levels,
predispositions, and behaviors, and developing messages and media
strategies that guide the communication tactics to meet marketing
objectives. In doing this, IMC builds and reinforces mutually profitable
relationships with customers and other important stakeholders and
generates synergy by coordinating all elements in the promotional mix into
a program that possesses clarity, consistency, and maximum impact.
Practitioners and academics alike, however, have noted the difficulty of
effectively implementing IMC. Defining exactly what IMC is has been
difficult. For example, merely coordinating messages so that speaking "with
one clear voice" in all promotional efforts does not fully capture the
meaning of IMC. Also, changing the organization to accommodate the
integrated approach has challenged the command and control structure of
many organizations. However, studies suggest that IMC is viewed by a vast
majority of marketing executives as having the greatest potential impact on
their company's marketing strategies, more so than the economy, pricing,
and globalization.
ADVERTISING
Advertising has four characteristics: it is persuasive in nature; it is non-
personal; it is paid for by an identified sponsor; and it is disseminated
through mass channels of communication. Advertising messages may
promote the adoption of goods, services, persons, or ideas. Because the
sales message is disseminated through the mass media—as opposed to
personal selling—it is viewed as a much cheaper way of reaching
consumers. However, its non-personal nature means it lacks the ability to
tailor the sales message to the message recipient and, more importantly,
actually get the sale. Therefore, advertising effects are best measured in
terms of increasing awareness and changing attitudes and opinions, not
creating sales. Advertising's contribution to sales is difficult to isolate
because many factors influence sales. The contribution advertising makes to
sales are best viewed over the long run. The exception to this thinking is
within the internet arena. While banner ads, pop-ups and interstitials should
still be viewed as brand promoting and not necessarily sales drivers,
technology provides the ability to track how many of a website's visitors
click the banner, investigate a product, request more information, and
ultimately make a purchase.
Through the use of symbols and images advertising can help differentiate
products and services that are otherwise similar. Advertising also helps
create and maintain brand equity. Brand equity is an intangible asset that
results from a favorable image, impressions of differentiation, or consumer
attachment to the company, brand, or trademark. This equity translates into
greater sales volume, and/or higher margins, thus greater competitive
advantage. Brand equity is established and maintained through advertising
that focuses on image, product attributes, service, or other features of the
company and its products or services.
Cost is the greatest disadvantage of advertising. The average cost for a 30-
second spot on network television increased fivefold between 1980 and
2005. Plus, the average cost of producing a 30-second ad for network
television is quite expensive. It is not uncommon for a national advertiser to
spend in the millions of dollars for one 30-second commercial to be
produced. Add more millions on top of that if celebrity talent is utilized.
Credibility and clutter are other disadvantages. Consumers have become
increasingly skeptical about advertising messages and tend to resent
advertisers' attempt to persuade. Advertising is everywhere, from network
television, to daily newspapers, to roadside billboards, to golf course signs,
to stickers on fruit in grocery stores. Clutter encourages consumers to
ignore many advertising messages. New media are emerging, such as DVRs
(digital video recorders) which allow consumers to record programs and
then skip commercials, and satellite radio which provides a majority of its
channels advertising free.
PUBLIC RELATIONS
Public relations is defined as a management function which identifies,
establishes, and maintains mutually beneficial relationships between an
organization and the publics upon which its success or failure depends.
Whereas advertising is a one-way communication from sender (the
marketer) to the receiver (the consumer or the retail trade), public relations
considers multiple audiences (consumers, employees, suppliers, vendors,
etc.) and uses two-way communication to monitor feedback and adjust both
its message and the organization's actions for maximum benefit. A primary
tool used by public relations practitioners is publicity. Publicity capitalizes
on the news value of a product, service, idea, person or event so that the
information can be disseminated through the news media. This third party
"endorsement" by the news media provides a vital boost to the marketing
communication message: credibility. Articles in the media are perceived as
being more objective than advertisements, and their messages are more
likely to be absorbed and believed. For example, after the CBS
newsmagazine60 Minutesreported in the early 1990s that drinking
moderate amounts of red wine could prevent heart attacks by lowering
cholesterol, red wine sales in the United States increased 50 percent.
Another benefit publicity offers is that it is free, not considering the great
amount of effort it can require to get out-bound publicity noticed and picked
up by media sources.
Public relations' role in the promotional mix is becoming more important
because of what Philip Kotler describes as an "over communicated society."
Consumers develop "communication-avoidance routines" where they are
likely to tune out commercial messages. As advertising loses some of its
cost-effectiveness, marketers are turning to news coverage, events, and
community programs to help disseminate their product and company
messages. Some consumers may also base their purchase decisions on the
image of the company, for example, how environmentally responsible the
company is. In this regard, public relations plays an important role in
presenting, through news reports, sponsorships, "advertorials" (a form of
advertising that instead of selling a product or service promotes the
company's views regarding current issues), and other forms of
communication, what the company stands for.
DIRECT MARKETING ANDDATABASE MARKETING
DIRECT MARKETING.
Direct marketing, the oldest form of marketing, is the process of
communicating directly with target customers to encourage response by
telephone, mail, electronic means, or personal visit. Users of direct
marketing include retailers, wholesalers, manufacturers, and service
providers, and they use a variety of methods including direct mail,
telemarketing, direct-response advertising, online computer shopping
services, cable shopping networks, and infomercials. Traditionally not
viewed as an element in the promotional mix, direct marketing represents
one of the most profound changes in marketing and promotion in the last 25
years. Aspects of direct marketing, which includes direct response
advertising and direct mail advertising as well as the various research and
support activities necessary for their implementation, have been adopted by
virtually all companies engaged in marketing products, services, ideas, or
persons.
Direct marketing has become an important part of many marketing
communication programs for three reasons. First, the number of two-
income households has increased dramatically. About six in every ten
women in the United States work outside the home. This has reduced the
amount of time families have for shopping trips. Secondly, more shoppers
than ever before rely on credit cards for payment of goods and services.
These cashless transactions make products easier and faster to purchase.
Finally, technological advances in telecommunications and computers allow
consumers to make purchases from their homes via telephone, television, or
computer with ease and safety. These three factors have dramatically
altered the purchasing habits of American consumers and made direct
marketing a growing field worldwide.
Direct marketing allows a company to target more precisely a segment of
customers and prospects with a sales message tailored to their specific
needs and characteristics. Unlike advertising and public relations, whose
connections to actual sales are tenuous or nebulous at best, direct
marketing offers accountability by providing tangible results. The
economics of direct marketing have also improved over the years as more
information is gathered about customers and prospects. By identifying those
consumers they can serve more effectively and profitably, companies may
be more efficient in their marketing efforts. Whereas network television in
the past offered opportunities to reach huge groups of consumers at a low
cost per thousand, direct marketing can reach individual consumers and
develop a relationship with each of them.
Research indicates that brands with strong brand equity are more
successful in direct marketing efforts than little-known brands. Direct
marketing, then, works best when other marketing communication such as
traditional media advertising supports the direct marketing effort.
Direct marketing has its drawbacks also. Just as consumers built resistance
to the persuasive nature of advertising, so have they with direct marketing
efforts. Direct marketers have responded by being less sales oriented and
more relationship oriented. Also, just as consumers grew weary of
advertising clutter, so have they with the direct marketing efforts.
Consumers are bombarded with mail, infomercials, and telemarketing
pitches daily. Some direct marketers have responded by regarding privacy
as a customer service benefit. Direct marketers must also overcome
consumer mistrust of direct marketing efforts due to incidents of illegal
behavior by companies and individuals using direct marketing. The U.S.
Postal Service, the Federal Trade Commission, and other federal and state
agencies may prosecute criminal acts. The industry then risks legislation
regulating the behavior of direct marketers if it is not successful in self-
regulation. The Direct Marketing Association, the leading trade
organization for direct marketing, works with companies and government
agencies to initiate self-regulation. In March of 2003 the National Do Not
Call Registry went into affect whereby consumers added their names to a
list that telemarketers had to eliminate from their out-bound call database.
DATABASE MARKETING.
Database marketing is a form of direct marketing that attempts to gain and
reinforce sales transactions while at the same time being customer driven.
Successful database marketing continually updates lists of prospects and
customers by identifying who they are, what they are like, and what they
are purchasing now or may be purchasing in the future. By using database
marketing, marketers can develop products and/or product packages to
meet their customers' needs or develop creative and media strategies that
match their tastes, values, and lifestyles. Like IMC, database marketing is
viewed by many marketers as supplanting traditional marketing strategies
and is a major component of most IMC programs.
At the core of database marketing is the idea that market segments are
constantly shifting and changing. People who may be considered current
customers, potential customers, and former customers and people who are
likely never to be customers are constantly changing. By identifying these
various segments and developing a working knowledge of their wants,
needs, and characteristics, marketers can reduce the cost of reaching non-
prospects and build customer loyalty. Perhaps the most important role of
database marketing is its ability to retain customers. The cumulative profit
for a five-year loyal customer is between seven and eight times the first-year
profit.
Since database marketing is expensive to develop and complex to
implement effectively, companies considering database marketing should
consider three important questions. First, do relatively frequent purchasers
or high dollar volume purchasers for the brand exist? Secondly, is the
market diverse enough so that segmenting into subgroups would be
beneficial? Finally, are there customers that represent opportunities for
higher volume purchases?
SALES PROMOTION/SPONSORSHIPS/EXHIBITIONS
SALES PROMOTION.
Sales promotions are direct inducements that offer extra incentives to
enhance or accelerate the product's movement from producer to consumer.
Sales promotions may be directed at the consumer or the trade. Consumer
promotions such as coupons, sampling, premiums, sweepstakes, price packs
(packs that offer greater quantity or lower cost than normal), low-cost
financing deals, and rebates are purchase incentives in that they induce
product trial and encourage repurchase. Consumer promotions may also
include incentives to visit a retail establishment or request additional
information. Trade promotions include slotting allowances ("buying" shelf
space in retail stores), allowances for featuring the brand in retail
advertising, display and merchandising allowances, buying allowances
(volume discounts and other volume-oriented incentives), bill back
allowances (pay-for-performance incentives), incentives to salespeople, and
other tactics to encourage retailers to carry the item and to push the brand.
Two perspectives may be found among marketers regarding sales
promotion. First, sales promotion is supplemental to advertising in that it
binds the role of advertising with personal selling. This view regards sales
promotion as a minor player in the marketing communication program. A
second view regards sales promotion and advertising as distinct functions
with objectives and strategies very different from each other. Sales
promotion in this sense is equal to or even more important than advertising.
Some companies allocate as much as 75 percent of their
advertising/promotion dollars to sales promotion and just 25 percent to
advertising. Finding the right balance is often a difficult task. The main
purpose of sales promotion is to spur action. Advertising sets up the deal by
developing a brand reputation and building market value. Sales promotion
helps close the deal by providing incentives that build market volume.
Sales promotions can motivate customers to select a particular brand,
especially when brands appear to be equal, and they can produce more
immediate and measurable results than advertising. However, too heavy a
reliance on sales promotions results in "deal-prone" consumers with little
brand loyalty and too much price sensitivity. Sales promotions can also
force competitors to offer similar inducements, with sales and profits
suffering for everyone.
SPONSORSHIPS.
Sponsorships, or event marketing, combine advertising and sales
promotions with public relations. Sponsorships increase awareness of a
company or product, build loyalty with a specific target audience, help
differentiate a product from its competitors, provide merchandising
opportunities, demonstrate commitment to a community or ethnic group, or
impact the bottom line. Like advertising, sponsorships are initiated to build
long-term associations. Organizations sometimes compare sponsorships
with advertising by using gross impressions or cost-per-thousand
measurements. However, the value of sponsorships can be very difficult to
measure. Companies considering sponsorships should consider the short-
term public relations value of sponsorships and the long-term goals of the
organization. Sports sponsorships make up about two-thirds of all
sponsorships.
EXHIBITS.
Exhibits, or trade shows, are hybrid forms of promotion between business-
to-business advertising and personal selling. Trade shows provide
opportunities for face-to-face contact with prospects, enable new companies
to create a viable customer base in a short period of time, and allow small
and midsize companies that may not be visited on a regular basis by
salespeople to become familiar with suppliers and vendors. Because many
trade shows generate media attention, they have also become popular
venues for introducing new products and providing a stage for executives to
gain visibility.
PERSONAL SELLING
Personal selling includes all person-to-person contact with customers with
the purpose of introducing the product to the customer, convincing him or
her of the product's value, and closing the sale. The role of personal selling
varies from organization to organization, depending on the nature and size
of the company, the industry, and the products or services it is marketing.
Many marketing executives realize that both sales and non-sales employees
act as salespeople for their organization in one way or another. One study
that perhaps supports this contention found that marketing executives
predicted greater emphasis being placed on sales management and
personal selling in their organization than on any other promotional mix
element. These organizations have launched training sessions that show
employees how they act as salespeople for the organization and how they
can improve their interpersonal skills with clients, customers, and
prospects. Employee reward programs now reward employees for their
efforts in this regard.
Personal selling is the most effective way to make a sale because of the
interpersonal communication between the salesperson and the prospect.
Messages can be tailored to particular situations, immediate feedback can
be processed, and message strategies can be changed to accommodate the
feedback. However, personal selling is the most expensive way to make a
sale, with the average cost per sales call ranging from $235 to $332 and the
average number of sales calls needed to close a deal being between three
and six personal calls.
Sales and marketing management classifies salespersons into one of three
groups: creative selling, order taking, and missionary sales reps. Creative
selling jobs require the most skills and preparation. They are the "point
person" for the sales function. They prospect for customers, analyze
situations, determine how their company can satisfy wants and needs of
prospects, and, most importantly, get an order. Order takers take over after
the initial order is received. They handle repeat purchases (straight rebuys)
and modified rebuys. Missionary sales reps service accounts by introducing
new products, promotions, and other programs. Orders are taken by order
takers or by distributors.
INTERNET MARKETING
Just as direct marketing has become a prominent player in the promotional
mix, so too has the Internet. Virtually unheard of in the 1980s, the 1990s
saw this new medium explode onto the scene, being adopted by families,
businesses and other organizations more quickly than any other medium in
history. Web sites provide a new way of transmitting information,
entertainment, and advertising, and have generated a new dimension in
marketing: electronic commerce. E-commerce is the term used to describe
the act of selling goods and services over the Internet. In other words, the
Internet has become more that a communication channel; it is a marketing
channel itself with companies such as Amazon.com, CDNow, eBay, and
others selling goods via the Internet to individuals around the globe. In less
than 10 years advertising expenditures on the Internet will rival those for
radio and outdoor. Public relations practitioners realize the value that web
sites offer in establishing and maintaining relationships with important
publics. For example, company and product information can be posted on
the company's site for news reporters researching stories and for current
and potential customers seeking information. Political candidates have web
sites that provide information about their background and their political
experience.
The interactivity of the Internet is perhaps its greatest asset. By
communicating with customers, prospects, and others one-on-one, firms can
build databases that help them meet specific needs of individuals, thus
building a loyal customer base. Because the cost of entry is negligible, the
Internet is cluttered with web sites. However, this clutter does not present
the same kind of problem that advertising clutter does. Advertising and
most other forms of promotion assume a passive audience that will be
exposed to marketing communication messages via the mass media or mail
regardless of their receptivity. Web sites require audiences who are active
in the information-seeking process to purposely visit the site. Therefore, the
quality and freshness of content is vital for the success of the web site.
THE FUTURE OF MARKETINGCOMMUNICATION
Marketing communication has become an integral part of the social and
economic system in the United States. Consumers rely on the information
from marketing communication to make wise purchase decisions.
Businesses, ranging from multinational corporations to small retailers,
depend on marketing communication to sell their goods and services.
Marketing communication has also become an important player in the life of
a business. Marketing communication helps move products, services, and
ideas from manufacturers to end users and builds and maintains
relationships with customers, prospects, and other important stakeholders
in the company. Advertising and sales promotion will continue to play
important roles in marketing communication mix. However, marketing
strategies that stress relationship building in addition to producing sales
will force marketers to consider all the elements in the marketing
communication mix. In the future new information gathering techniques will
help marketers target more precisely customers and prospects using direct
marketing strategies. New media technologies will provide businesses and
consumers new ways to establish and reinforce relationships that are
important for the success of the firm and important for consumers as they
make purchase decisions. The Internet will become a major force in how
organizations communicate with a variety of constituents, customers,
clients, and other interested parties
Integrated Marketing Communications (IMC) is the coordination and integration of
all marketing communication tools, avenues, functions and sources within a
company into a seamless program that maximizes the impact on consumers and
other end users at a minimal cost.[1]
Contents
[hide]
1 What is IMC?
2 IMC Components
3 Marketing mix component
4 Importance of IMC
5 4 P's vs. 4 C's
6 Effective communications elements
7 Promotions Opportunity Anaylsis
8 See also
9 References
What is IMC?
Process for managing customer relationships that drive brand value.
Its foundation is communication
Cross-functional process for creating and nourishing profitable relationships with
customers and other stakeholders by strategically controlling or influencing all
messages sent to these groups and encouraging data-driven, purposeful dialog
with them.
Integrated marketing communications (IMC) is the coordination and integration of
all marketing communication tools, avenues, and sources within a company into
a seamless program that maximizes the impact on consumers and other end
users at a minimal cost. This integration affects all firm's business-to-business,
marketing channel, customer-focused, and interally directed communications.[2]
[edit]IMC Components
The Foundation - corporate image and brand management; buyer behavior;
promotions opportunity analysis.
Advertising Tools - advertising management, advertising design: theoretical
frameworks and types of appeals; advertising design: message strategies and
executional frameworks; advertising media selection. Advertising also reinforces
brand and firm image. [3]
Promotional Tools - trade promotions; consumer promotions; personal selling,
database marketing, and customer relations management; public relations and
sponsorship programs.
Integration Tools - Internet Marketing; IMC for small business and
entrepreneurial ventures; evaluating and integrated marketing program. [4]
[edit]Marketing mix component
The internet has changed the way business is done in the current world. The
variables of segmentation, targeting and positioning are addressed differently. The
way new products and services are marketed have changed even though the aim of
business in bringing economic and social values remain unchanged. Indeed, the
bottom line of increasing revenue and profit are still the same. Marketing has
evolved to more of connectedness, due to the new characteristics brought in by the
internet. Marketing was once seen as a one way, with firms broadcasting their
offerings and value proposition. Now it is seen more and more as a conversation
between marketers and customers. <Rob Strokes and the minds of Quirk(2009.The
Essential Guide to Online Marketing.(2nd edition):Quirk eMarketing(Pty)Ltd.>
Marketing efforts incorporate the "marketing mix". Promotion is one element of
marketing mix. Promotional activities include advertising (by using different media),
sales promotion (sales and trades promotion), and personal selling activities. It also
includes internet marketing, sponsorship marketing, direct marketing, database
marketing and public relations. Integration of all these promotional tools, along with
other components of marketing mix, is a way to gain an edge over a competitor.
The starting point of the IMC process is the marketing mix that includes different
types of marketing, advertising, and sales efforts. Without a complete IMC plan there
is no integration or harmony among client and customers. The goal of an
organization is to create and maintain communication throughout its own employees
and throughout its customers.
Integrated marketing is based on a master marketing plan. This plan should
coordinate efforts in all components of the marketing mix. A marketing plan consists
on the following steps:[5]
1. Situation analysis
2. Marketing objectives
3. Marketing budget
Integrated marketing communications aims to ensure consistency of message and
the complementary use of media. The concept includes online and offline marketing
channels. Online marketing channels include any e-marketing campaigns or
programs, from search engine optimization (SEO), pay-per-click, affiliate, email,
banner to latest web related channels for webinar, blog, micro-blogging, RSS,
podcast, Internet Radio and Internet TV. Offline marketing channels are traditional
print (newspaper, magazine), mail order, public relations, industry relations,
billboard, traditional radio, and television. A company develops its integrated
marketing communication programmer using all the elements of the marketing mix
(product, price, place, and promotion).Integrated marketing communications plans
are vital to achieving success. The reasons for their importance begin with the
explosion of information technologies. Channel power has shifted from
manufacturers to retailers to consumers.
Using outside-in thinking, Integrated Marketing Communications is a data-driven
approach that focuses on identifying consumer insights and developing a strategy
with the right (online and offline combination) channels to forge a stronger brand-
consumer relationship. This involves knowing the right touch points to use to reach
consumers and understanding how and where they consume different types of
media. Regression analysis and customer lifetime value are key data elements in
this approach.
[edit]Importance of IMC
Several shifts in the advertising and media industry have caused IMC to develop into
a primary strategy for marketers:
1. From media advertising to multiple forms of communication.
2. From mass media to more specialized (niche) media, which are centered
around specific target audiences.
3. From a manufacturer-dominated market to a retailer-dominated, consumer-
controlled market.
4. From general-focus advertising and marketing to data-based marketing.
5. From low agency accountability to greater agency accountability, particularly
in advertising.
6. From traditional compensation to performance-based compensation
(increased sales or benefits to the company).
7. From limited Internet access to 24/7 Internet availability and access to goods
and services.
[edit]4 P's vs. 4 C's
Not PRODUCT, but CONSUMER
You have to understand what the consumer's wants and needs are. Times have
changed and you can no longer sell whatever you can make. The product
characteristics has to match the specifics of what someone wants to buy. And part of
what the consumer is buying is the personal "buying experience."
Not PRICE, but COST
Understand the consumer's cost to satisfy the want or need. The product price may
be only one part of the consumer's cost structure. Often it's the cost of time to drive
somewhere, the cost of conscience of what you eat, and the cost of guilt for not
treating the kids.
Not PLACE, but CONVENIENCE
As above, turn the standard logic around. Think convenience of the buying
experience and then relate that to a delivery mechanism. Consider all possible
definitions of "convenience" as it relates to satisfying the consumer's wants and
needs. Convenience may include aspects of the physical or virtual location, access
ease, transaction service time and hours of availability.
Not PROMOTION, but COMMUNICATION
Communicate, communicate, communicate. Many mediums working together to
present a unified message with a feedback mechanism to make the communication
two-way. And be sure to include an understanding of non-traditional mediums, such
as word of mouth and how it can influence your position in the consumer's mind.
How many ways can a customer hear (or see) the same message through the
course of the day, each message reinforcing the earlier images? [6]
[edit]Effective communications elements
The goal of selecting the elements of proposed integrated marketing
communications is to create a campaign that is effective and consistent across
media platforms. Some marketers may want only ads with greatest breadth of
appeal: the executions that, when combined, provide the greatest number of
attention-getting, branded, and motivational moments. Others may only want ads
with the greatest depth of appeal: the ads with the greatest number of attention-
getting, branded, and motivational points within each.
Although integrated marketing communications is more than just an advertising
campaign, the bulk of marketing dollars is spent on the creation and distribution of
advertisements. Hence, the bulk of the research budget is also spent on these
elements of the campaign. Once the key marketing pieces have been tested, the
researched elements can then be applied to other contact points: letterhead,
packaging, logistics, customer service training, and more, to complete the IMC
cycle.
One common type of integrated marketing communication is personal selling.
Personal selling can be defined as "face to face selling in which a seller attempts to
persuade a buyer to make a purchase."
[edit]Promotions Opportunity Anaylsis
A major task that guides the way in creating an effective Integrated Marketing
Communications plan is the promotions opportunity analysis. “A promotions
opportunity analysis is the process marketers use to identify target audiences for a
company’s goods and services and the communication strategies needed to reach
these audiences.” [7] A message sent by a marketer has a greater likelihood of
achieving the intended results if the marketer has performed a good analysis and
possesses accurate information pertaining to the target audience. There are five
steps in developing a promotions opportunity analysis
Modern marketing ca l ls for more than developing a good product, pricing it attractively and making it accessible to target customers. Companies must also communicate with their present and potential customers. Every company is inevitably cast into the role of communicator and promoter.
What is communicated, however, should not be left to change. To communicate effectively, companies hire advertising agencies to develop effective ads; sales promotion specialists to design sales incentive programs and public relations firms to develop the corporate image. They train their sales people to be friendly and knowledgeable. For most companies, the questions are not whether to communicate but rather what to say, to whom, and how often.
A modern company manages a complex marketing communications system. The company communicates with its middlemen, consumers and various publics. Its middlemen communicate with their consumers and various publics.
Consumers engage in word-of-mouth communication with other consumers and publics. Meanwhile each group provides communication feedback to every other group.
The marketing communication mix (also called the promotion mix) consists of four major tools:
√ Advertising. Any paid form of nonpersonal presentation and promotion of ideals, goods or services by an identified sponsor.
√ Sales Promotion. Short-term incentives to encourage purchase or sale of a product or service.√ Publicity. Nonpersonal stimulation of demand for a product, service or business unit by planting
commercially significant news about it in a published medium or obtaining favorable presentation of it upon radio, television or stage that is not paid for by the sponsor.
√ Personal Selling. Oral presentation in a conversation with one or more prospective purchasers or the purpose of making sales.
Marketers need to understand how communication works.
Some years ago a communication model will answer:
■ Who,
■ Says what,
■ In what channel,
■ To whom,
■ With what effect.
Over the years, a communication model with nine elements has evolved, that shown in figure 8. Two elements represent the major parties in a communication sender and receiver. Another two represent the major communication tools message and media. Four represent major communication functions encoding, decoding, response and feedback .The last element represents noise in the system.
Figure 8 Elements in the
Communication ProcessThese elements are defined as follows:
√ Sender. The party sending the message to another party (also called the source of communicator).
√ Encoding. The process of putting thought into symbolic form.
√ Message. The set of symbols that the sender transmits.
√ Media. The communication channels thought which the Message moves from sender to receiver.
√ Receiver. The party receiving the message sent by another party (also called the audience or destination).
√ Response. The set of reactions that the receiver has after being exposed to the message.
√ Feedback. The part of the receiver's response that the receiver communicates back to the sender.
√ Noise. Unplanned static or distortion during the communication process, resulting in the receiver's receiving a different message than the sender sent.
The model underscores the key factors in effective communication. Senders must know what audiences they want to reach and what responses they want. They must be skillful in encoding messages that take into account how the target audience usually decodes messages. The source must transmit the message thought efficient media that reach the target audience. Senders must develop feedback channels so that they can know the receiver's response to the message.
Figure 9
Elements Affecting Shared Meaning
For a message to be effective, the sender's encoding process must mesh with the receiver's decoding process. Schramm sees messages as e s se n t i a l l y signs that must be familiar to the receiver. The more the sender's field of experience overlaps with that of the receiver, the more effective the message is likely to be. (See Figure 9).
"The source can encode and the destination can decode, only in terms of the experience each has had".This puts a burden a communicators from one social stratum (such as advertising people) who want to communicate effectively with another stratum (such as factory workers).
The sender's task is to get h is or her message thought to the receiver. There is considerable noise in the environment people are exposed to several hundred commercial messages a day, aside from the other messages they attend to in their environment. Members of the audience may not receive the intended message for any of three reasons. The first is selective attention in that they will not notice a l l the stimuli. The second is selective distribution in that they w i l l twist the message to hear what they want to hear. The third is selective recall in that they will retain in permanent memory only a small fraction of the messages that reach them.
The challenge to the communicator is to design a message that wins attention in sprite of the surrounding distractions. Schramm suggested that the likelihood that a potential receiver will attend to a message is given by.
Perceived reward strength - Perceived punishment strength
I livelihood of attention =-----------------------------------------------------
Perceived expenditure of effort
Selective attention explains why ads with bold headlines promising something, such as "How to Make a M i l l i on ; ' along with an arresting illustration and l i t t le copy, have a high likelihood of grabbing attention. For very little effort, the receiver has an opportunity to gain a great reward. As for selective distortion, receivers have set attitudes, which lead to expectations about what they will hear or see. They will hear what fits into their belief system. As a result, receivers often add things to the message that are not there (amplification) and do not notice other things that are there (leveling). The communicator's
task is to strive for message simplicity, clarity, interest and repetition, to get the main points across to the audience.
As for selective recall, the communicator aims to get the message into the receiver's long-term memory. Long-term memory is the repository for all the information one has ever proceed. In entering the receiver's long-term memory, the message has a change of modifying the receiver's beliefs and attitudes. Bui first the message has to enter the receiver's short-term memory, which is a limited-capacity store that processes incoming information. Whether the message passes from the receiver's short-term memory to his or her long-term memory depends on the amount and type of message rehearsal by the receiver. Rehearsal does not mean simple message repetition but rather the receiver's elaborating on the meaning of the information in a way that brings into short-term memory related thoughts previously stored in the receiver's long-term memory. If the receiver's initial attitude toward the object is positive and he or she rehearses support arguments, the message is likely to be accepted and have high recall. If the receiver's i n i t i a l attitude is negative and the person rehearses counterarguments. The message is l i ke ly to be rejected but to stay in long-term memory. Counterarguing inhibits persuasion by making an opposing message available. Much of persuasion requires the receiver's rehearsal of his or her own thoughts. Much of what is called persuasion is self-persuasion. M if there is no rehearsal of arguments but simply discounting of the message, "I don't believe it," the receiver is still more susceptible to subsequent influence than the receiver who counterargues.
Communicators have been looking for audience traits that correlate whit their degree of persuasibility. People of high education and/or intelligence are thought to be less persuasible but the evidence is inconclusive. Women have been found to be more persuasible than men, although this is mediated by a women's acceptance of the prescribed female role. Women who value traditional sex roles are influenceable than women who are less accepting of the traditional roles. Persons who accept external standards to guide their behavior and who have a weak self-concept appear to be more persuasible. Persons who are low in self-confidence are also thought to be more persuasible. However, research by Cox and Bauer showed a curvilinear relation between self-confidence and persuasibility, with those moderate in self-confidence being the most persuasible. ' The communicator should look for audience traits that correlate with persuasibility and use them to guide message and media development.
Cartwright has outlined what must happen for a message to influence the behavior of mother person:
♦ The "message" (that is, information, facts and so on) must reach the sense organs of the persons who are to be influenced.
♦ Having reached the sense organs, the "'message" must be Accepted as a part of the person's cognitive structure.
♦ To include a given action by mass persuasion, this action must be seen by the person as a path to some goal that he has.
♦ To i n c l u d e a given action, an appropriate cognitive and mot i v a t i o n system must gain control of the person's behavior at a particular point in time.
Fiske and Hartley have outlined some factors that moderate the effect of a communication:
■ The greater the monopoly of the communication source over the recipient, the greater the change or effect in favor of the source over the recipient.
■ Communication effects are greatest where the message is in line with the existing opinions, beliefs and dispositions of the receiver.
■ Communication can produce the most effective shifts on unfamiliar, lightly felt, peripheral issues, which do not lie at the center of the recipient's value system.
■ Communication is more l i ke ly to be effective where thesource is believed to have expertise, high s ta tus , objectivityor l i kab i l i t y , but particularly where the source has powerand can be identified with.
■ The social context, group or reference group will mediateThe communication and influence whether or not it is accepted.
13.1. The Promotion Mix
Companies are always searching for ways to gain efficiency by substituting one promotional tool for another as its economics become more favorable. Many companies have replaced some field sales activity with ads, direct mail and telemarketing. Other companies have increased their sales promotion expen-ditures in relation to advertising, to gain quicker sales. The relative substitutability among promotional tools explains why marketing functions need to be coordinated in a single marketing departments.
Many factors influence the marketer's choice of promotional tools. We will examine these factors in the following paragraphs.
13.2. Nature of Each Promotional Tools
Bach promotional tool:
• Advertising,
• Personal Selling,
• Sales Promotion,
• Publicity.
Has its own unique characteristics and costs. Marketers have to understand these characteristics in selecting them.
13.2.1. Advertising
Because of the many forms and uses of advertising, it is difficult to make all-embracing generalizations about its distinctive qualities as a component of the promotional mix.
Yet the following qualities can be noted.
13.2.1.1. Public Presentation
A d v e r t i s i n g is a highly public mode of communication. Its p u b l i c nature confers a kind of legitimacy on the product and also suggests a standardized offering. Because many persons receive the same message, buyers know that their motives for purchasing the product w i l l be publicly understood.
13.2.1.2. Pervasiveness
Advertising is a pervasive medium that permits the seller to repeat a message many times. It also allows the
buyer to rece ive and compare the messages of various competitors. Large-scale advertising by a seller says something positive about the seller's size, popularity and success.
13.2.1.3. Amplified Expressiveness
Advertising provides opportunities for dramatizing the company and its products through the artful use of print, sound and color. Sometimes, however, the tool's very success at expressiveness may d i l u t e or distract from the message.
13.2.1.4. Impersonality
Advertising cannot be as compelling as a company sales representative. The audience does not feel obligated to pay attention or respond. Advertising is able to carry on only a monologue, not a dialogue, with the audience.
Advertising is an efficient way to reach numerous geographically dispersed buyers at a low cost Per exposure. Certain forms of advertising, such as TV advertising, can be done on a small budget, while other forms, such as newspaper advertising, can be done on a small budget. Advertising may have an effect on sales simply through its presence. Consumers may believe a heavily advertised brand is one that offers "good value", "otherwise, why would advertisers spend so much money backing a poor product?
13.2.2. Personal Selling
Personal selling is the most effective tool at certain stages of the buying process, particularly in building up buyers' preference, conviction and action. The reason is that personal selling, when compared with advertising, has three distinctive qualities:
13.2.2.1. Personal Confrontation
Personal se l l ing involves an alive, immediate and interactive relationship between two or more persons. Each party is able to observe each other's needs and characteristics at close hand and make immediate adjustments.
13.2.2.2. Cultivation
Personal selling permits all kinds of relationship to spring up, ranging from a matter-of-fact selling relationship to a deep personal friendship. Effective sales representatives will normally keep their customers' interests at heart if they want long-run relationship.
13.2.2.3. Response
Personal selling makes the buyer feel under some obligation for having listened to the sales talk. The buyer has a greater need to attend and respond, even if the response is a polite "thank you".
These distinctive qualities come at a cost. A sales force represents a greater long term commitment than advertising. Advertising can be turned on and off, but the size of a sales force is more difficult to alter.
13.2.3. Sales Promotion
Although sales promotion tools (coupons, contests, premiums and the like) are highly diverse, they have three distinctive characteristics:
13.2.3.1. Communication
They gain attention and usually provide information that may lead the consumer to the product.
13.2.3.2. Incentive
They incorporate some concession, inducement or contribution that gives value to the consumer.
13.2.3.3. Invitat ion
They include a d i s t i n c t invitation to engage in the transaction now.
Companies use sales promotion tools to create a stronger and quicker response. Sales promotion can be used to dramatize product offers and to boost sagging sales. Sales promotion effects are usually short run, however and are not effective in building long-run brand preference.
13.2.4. Publicity
The appeal of publicity is based on its three distinctive qual i t ies :
13.2.4.1. High Credibility
News stories and features seem more authentic and credible to readers than ads do.
13.2.4.2. Off Guard
Publicity can reach many prospects who might avoid sales people and advertisements. The message gets to the buyers as news rather than as a sales-directed communication.
13.2.4.3. Dramatization
Publicity has, like advertising, a potential for dramatizing a company or product.
Marketers tend to underused product publicity or use it as an afterthought. Yet a well-thought-out publicity campaign coordinated with the order promotion-mix elements can be extremely effective.
13.3. Setting the Advertising Objectives
The first step in developing an advertising program is to set the advertising objectives. These objectives must flow from prior decisions on the target market, market positioning and marketing mix. The market-positioning and marketing-mix strategies define the job that advertising must do in the total marketing program.
Advertising objectives can be classified as to whether t h e i r aim is to inform, persuade or remind.
13.3.1. Informative Advertising
Informative advertising figures heavily in the pioneering stage of a product category, where the objective is to build primary demand. Thud the yogurt industry initially had to inform consumers to yogurt's nutritional benefits and many uses.
13.3.2. Persuasive Advertising
Persuasive advertising becomes important in the competitive stage, where a company's objective is to buildselective demand for a particular brand. Most of the advertising we view falls into this category. For example, Chivas Regal attempts to persuade consumers that is delivers status like no other brand of scotch. Some persuasive advertising has moved into the category of comparison advertising, which seeks toes tab l i sh the superiority of one brand through specific comparison with one or more other brands in the product class. ' Comparison advertising had been used in such product categories as deodorants, fast-food hamburgers, toothpaste, tires and automobiles. The burger King Corporation successfully developed comparison advertising for its franchise when it battled McDonald's in a burger war over flame broiling versus frying hamburgers. Describes some guidelines for creating successful comparison advertising.
13.3.3. Reminder Advertising
Reminder advertising is highly important in the mature stage of the product to keep the consumer thinking about the product. Expensive four-color Coca-Cola ads in magazines have the purpose not of informing or persuading but of reminding people to purchase Coca-Cola. A related form of advert i s i n g is reinforcement advertising , which seeks to assure current purchasers that they have made in right choice. Aurotobile ads will often depict satisfied customers enjoying some special feature of their new car.
Possible Advertising Objectives
To inform:
Telling the market about a new product Describing available services
Suggesting new uses for a product Correcting false impressions
Informing the market of a price change Reducing consumers' fears
explaining how the product works Bu i ld ing a company image
To persuade:
Building brand preference Persuading customer to purc-
hase now
Encouraging switching to your brand Persuading customer to rece-
ive a sales call
Changing customer's perception of
product attributes
To remind:
Reminding consumers that the product Keeping it in their minds du-
may be needed in the near future ring of seasons
reminding them where to buy it Maintaining its top-of mind
awareness
The choice of the advertising objective should not be arbitrary but should be based on a thorough analyses of the current marketing situation. For example, if the product class is mature and the company is the market leader and if brand usage, if the product class is new and the company is not the market leader,bul its brand is superior to the leader, then the proper objective is to advertise the brand's superiority over the market leader.
13.4. Public Relations
Public Relations (PR) is another important marketing tool. Until recently, however, it has been treated as a marketing stepchild. The P u b l i c Relations department is typically located at corporate headquarters; and
its staff is so busy dealing with various p u b l i c s (stockholders, employees, legislators, community leaders) that PR departments perform the following five act iv i t ies , most of which do not feed into direct product support.
♦ Press Relations. The aim o l ' press relations is to place
newsworthy information into the news media to attract
attention to a person, product or service.♦ Product Publicity. Product publicity involves various
efforts to publicize specific products.
♦ Lobbying. Lobbying involves dealing with legislators and
government officials to promote or defeat leg i s la t ion and
regulation.
♦ Corporate Communications. This activity covers internal
and external communications and promotes understanding
of the organization.
♦ Counseling. Counseling involves advising management
about public issues and company positions and image.
In addition, marketing managers and PR practitioners do not always talk the same language. One major difference is that marketing managers are much more bottom-line oriented, whereas PR practitioners, see their job as disseminating communications. But this is changing in two ways:
First, companies are calling for much more market-oriented PR. They want their PR department to manage all of their PR activities with a view to how these activities will contribute toward marketing the company and improving the bottom line.
Second, companies arc requiring their PR departments to set up a special section ca l l ed marketing PR, likefinancial PR and community PR, would stand as a separate service to a corporate constituency, namely, the marketing department.
On the other hand the t h i r d element in the promotion mix that relies on mass communication is PR. Dunn defines this activity as a promotional function that "uses two way communications to mesh the needs and interests of an institution or person with the needs and interests of the various pub l i c s with which that institution or person must communicate.
Some key definitions in public relations are listed in Table 3. Firms undertake public relations for a product; for a product class, for a company as a whole; and for an industry.
Public RelationsTwo-way communication to mesh the needs and interests of an institution or person with those of publics.
PublicsAny target audience tied together or distinguished by some Interest or concern.
Public AffairsPlanned effort to gain favorable reactions and influence and outside an organization through actions and effective two-way communication; often emphasizes media and government publics.
PublicityPlanned program to obtain favorable media coverage of topics important to an organization.
Press AgentryGenerating publicity through attention-getting devices (usually blatant) or publicity gimmickry.
PromotionMarketing function used to build the image of a product or services through advertising. PR. sales promotion or personal selling.
PropagandaAttempt at persuasion of target audiences at all costs, using Unethical as well as ethical forms of communication.
AdvertisingNonpersonal. persuasive, paid communication through the Media with sponsors or brands identified in the message.
Key Definitions in PublicRelations
The old name for marketing PR was publicity. But marketing PR goes beyond simple publicity. Marketing PR. Can contribute to the following tasks:♦ Assist in the launch of new products. The amazing commercial success of Cabbage Patch Kids was due
not so much to the paltry advertising budget of $ 500.000 but to clever publicity, including donating the dolls to children in hospitals, sponsoring Cabbage Patch Kids adoption parties for schoolchildren and so on.
♦ Assist in Repositioning a Mature Product. New York City had an extremely bad press in the seventies until the "1 love
New York " campaign started to take root, bringing millions of additional tourists to the city.
♦ Build up Interest in a Product Category. Companies and trade associations have used PR to rebuild interest in declining communities such as eggs, milk and potatoes and to expand consumption of such products as tea and orange juice.
♦ Influence Specific Target Groups. McDonald's sponsors special neighborhood events in Hispanic and black communities for good causes and in turn build up a good company image.
♦ Defend Products That Have Encountered Public Problems Johnson & Johnson's masterly use of PR was a major factor in saving Tylenol from extinction.
♦ Build the Corporate linage in a Way That Projects Favor ably on its Products. Iaccoca's speeches and his autobiography helped project a whole new wining image for the Chrysler Company.
Publicity has several unique advantages, it is credible: most people feel the mass media would have no reason to carry favorable information about a product unless it were true. Thus, PR reinforces the firm's advertising campaign by increasing awareness and the believability of product claims. Publicity also makes it easier for the salesforce to present a case for the product. And it is low cost, in that there are few media
costs. The major disadvantage is that publicity is beyond the company's control, not only as to whether the release will be run, but also what is said about the product.
Through PR, firms communicate with a variety of publics. They include:
♦ The ultimate consumer information about new products and new uses for old products.
♦ The financial community and stockholders signaling the maintenance of or improvement in the company's profitability.
♦ The community with "good citizen" information.
♦ Prospective employees why the firm is a good place to work.
♦ Present employees to develop pride in the company.
♦ Supplies good company with which to build an enduring relationship.
This listing of audience suggests that publicity might be aimed at accomplishing different objectives among different groups. Such objectives range from simple increasing awareness of a company or its products to stimulating an actual response, such as sending for a free bulletin.
Firms also use public relations to cope with an unexpected shock. This was the case with the PR campaign Johnson & Johnson mounted when seven people died from poisoned Tylenol capsules. J&J was able to restore confidence in the company and its Tylenol brand due in part to its responsible and will-orchestrated public relations program.
13.4.1. Major Tools in Public Relations
Public relations professionals have at least eight PR tools at
their disposal, namely;
-News,
-Speeches,
-Events,
-Public Service Activities,
-Written Material,
-Audio-visual Material,
-Corporate Identity Media,
-Telephone Information Services.
They are described below.
13.4.1.1. News
One of the major tasks of PR professionals is to find or create favorable news about the company and/or its products or people. Sometimes news stories are inherent in the situation and sometimes the PR person can suggest events or activities that would create news. News generation requires skill in developing a story concept and researching it extensively, much as a reporter does. But the PR person's skill must go beyond preparing news. Getting the media to accept press releases and attend press conference calls for marketing and interpersonal skills. A good PR media director understands the press's needs for stories that are interesting and timely and for press releases that are well written and attention getting. The media director needs to cultivate as many news editors and reporters as possible. The more the press is cultivated, the more likely it is to give more and better coverage to the company.
13.4.1.2. Speeches
Speeches are another tool for creating product and company publicity. Some companies arc carefully choosing their spokespersons and also using speech writers and coaches to help improve their delivery.
13.4.1.3. Events
Companies can draw attention to new products or other company activities by arranging special events. These include news conferences, seminars, outings, exhibits, competitions, anniversaries and so on, that will reach the target publics.
13.4.1.4. Public Service Activities
Companies can improve public goodwill by contributing money and time to good causes. The company also encouraged its employees to participate in local programs as both tutors and board members.
13.4.1.5. Written Material
Companies rely extensively on written materials to reach and influence their target markets. These include annual reports, brochures, articles and company newsletters and magazines. Brochures can play an important role in informing target customers about what a product is, how it works and how it is to be assembled. Thoughtful articles written by company executives can draw attention to the company and its products. Company newsletters and magazines can help build up the company's image and convey important news to target markets. They should have an appearance and content that is consistent and supportive of the company's image.
13.4.1.6. Audio-Visual Material
Audio-Visual Material, such as films, slides-and-sound and video and audio cassettes are coming into increasing use as communication tools. The cost of audio-visual materials is usually greater than the cost of printed material, but so is the impact. They can provide high-impact product demonstrations and are likely to receive strong attention. In all cases, they should be put together with care; if they are done badly, they can impress the audience negatively rather than positively.
13.4.1.7. Corporate Identity Media
Normally a company's materials acquire separate looks, which causes confusion and misses an opportunity to create and reinforce a corporate identity. In an over communicated society, companies have to compete for attention. They should at least try to create a visual identity that the public immediately recognized. The visual identity is carried by the company's permanent media logos, stationery, brochures, signs, business forms, business cards, buildings, uniforms and rolling stock. The corporate identity media become a marketing tool when they are attractive, distinctive and memorable. The company shoul select a good
graphic design consultant who will gel management to identify the essence of the company and they turn it into a concept backed by strong visual symbols.
13.4.1. Major Tools in Public Relations
Public relations professionals have at least eight PR tools at
their disposal, namely;
-News,
-Speeches,
-Events,
-Public Service Activities,
-Written Material,
-Audio-visual Material,
-Corporate Identity Media,
-Telephone Information Services.
They are described below.
13.4.1.1. News
One of the major tasks of PR professionals is to find or create favorable news about the company and/or its products or people. Sometimes news stories are inherent in the situation and sometimes the PR person can suggest events or activities that would create news. News generation requires skill in developing a story concept and researching it extensively, much as a reporter does. But the PR person's skill must go beyond preparing news. Getting the media to accept press releases and attend press conference calls for marketing and interpersonal skills. A good PR media director understands the press's needs for stories that are interesting and timely and for press releases that are well written and attention getting. The media director needs to cultivate as many news editors and reporters as possible. The more the press is cultivated, the more likely it is to give more and better coverage to the company.
13.4.1.2. Speeches
Speeches are another tool for creating product and company publicity. Some companies arc carefully choosing their spokespersons and also using speech writers and coaches to help improve their delivery.
13.4.1.3. Events
Companies can draw attention to new products or other company activities by arranging special events. These include news conferences, seminars, outings, exhibits, competitions, anniversaries and so on, that will reach the target publics.
13.4.1.4. Public Service Activities
Companies can improve public goodwill by contributing money and time to good causes. The company also encouraged its employees to participate in local programs as both tutors and board members.
13.4.1.5. Written Material
Companies rely extensively on written materials to reach and influence their target markets. These include annual reports, brochures, articles and company newsletters and magazines. Brochures can play an important role in informing target customers about what a product is, how it works and how it is to be assembled. Thoughtful articles written by company executives can draw attention to the company and its products. Company newsletters and magazines can help build up the company's image and convey important news to target markets. They should have an appearance and content that is consistent and supportive of the company's image.
13.4.1.6. Audio-Visual Material
Audio-Visual Material, such as films, slides-and-sound and video and audio cassettes are coming into increasing use as communication tools. The cost of audio-visual materials is usually greater than the cost of printed material, but so is the impact. They can provide high-impact product demonstrations and are likely to receive strong attention. In all cases, they should be put together with care; if they are done badly, they can impress the audience negatively rather than positively.
13.4.1.7. Corporate Identity Media
Normally a company's materials acquire separate looks, which causes confusion and misses an opportunity to create and reinforce a corporate identity. In an over communicated society, companies have to compete for attention. They should at least try to create a visual identity that the public immediately recognized. The visual identity is carried by the company's permanent media logos, stationery, brochures, signs, business forms, business cards, buildings, uniforms and rolling stock. The corporate identity media become a marketing tool when they are attractive, distinctive and memorable. The company shoul select a good graphic design consultant who will gel management to identify the essence of the company and they turn it into a concept backed by strong visual symbols.
13.4.1.8. Telephone Information Services
A newer PR tool is a telephone number through which prospects and customers can get information and better service from a company, many hospitals, for example, use the telephone to provide health messages, offer on-the-spot counseling and recommend physicians to people seeking one.
13.5. The Sales Force
I don’t know who you are,
I don’t know your company,
I don’t know your company 's product,
I don’t know what your company stands for,
I don’t know your company's customers,
I don’t know your company's record,
I don’t know your company's reputation,
Now, what was it you wanted to sell me?
Sales personnel serve as the company's personal link to the customers. The sales representative is the company to many of its customers and in turn brings back to the company much needed intelligence about the customer. Therefore the company needs to give its deepest though to issues in sales-force design, namely, developing sales-force objectives, strategy, structure, size and compensation.
Figure 10
Steps in Designing and Managing in the Sales Force
13.5.1. Sales-Force Objectives
√ Prospecting. Sales representatives find and cultivate new customers.
√ Communicating. Sales representatives skillfully communicate information about the company's products and service
√ Selling. Sales representatives know the art of "salesmanship" approaching, presenting, answering objections and closing sales.
√ Servicing. Sales representatives provide various services to the customers consulting their problems, rendering technical assistance, arranging financing and expediting delivery.
√ Information Gathering. Sales representatives conduct market research and intelligence work and fill in call reports.
√ Allocating. Sales representatives are able to evaluate customer quality and allocate scarce products during product shortages.
13.5.2. Sales-Force Strategy
Companies compete with each other to get orders from customers. They must deploy their sales-ibices strategically so that they are calling on the right customers at the right time and in the right way. Sales representatives can approach customers in several ways:
- Sales representative to buyer. A sales representative talks
to a prospect or customer in person or over the phone.
- Sales Representative to Buyer Group. A sales representative makes a sales presentation to a buying group.
- Sales ream to Buyer Group. A sales team (such as a company officer, a sales representative and a sales engineer) makes a sales presentation to a buying group.
- Conference Selling. The sales representative brings resource people from the company to meet with one or more buyers to discuss problems and mutual opportunities.
Thus the sales representative often acts as the "account manager11 who arranges contacts between various people in the buying and sel l ing organizations. Selling increasingly calls for teamwork, requiring the support of other personnel, such as top management major sales are at stake; technical people, who supply technical information to the customer before, during or after the purchase of the product; customer-service representatives, who provide installation, maintenance and other services to the customer; and an office staff, consisting of sales analysts, other expediters and secretaries.
Once the company decides on a desirable selling approach, it can use either a direct or a contractual sales force. A direct (or company) sales force consists of full or part-time paid employees who work exclusively for the company, this sales force includes inside sales personnel, who conduct business from their office using the telephone and receiving visits from prospective buyers and field sales personnel, who travel and visit customers. A contractual sales force consists of manufac-turers' reps, sales agents or brokers, who are paid a commission based on their sales.
13.5.3. Sales-Force Size
Once the company clarifies its sales-force strategy and structure, it is ready to consider sales-force size. Sales representatives are one of the company's must productive and expensive assets. Increasing their number will increase both sales and costs.
Most companies use the workload approach to establish sales-force size. This method consists of the following steps:
■ Customers are grouped into size classes according to their annual sales volume.
■ The desirable call frequencies (number of sales calls on anaccount per year) are established for each class. They reflect how much call intensity the company seek in relation to competitors.
■ The number of accounts in each size class is multiplied by the corresponding call frequency to arrive at the total workload for the country, in sales calls per year.
■ The average number of calls a sales representative can make per year is determined.
■ The number of sales representative needed is determined by dividing the total annual calls required by the average annual calls made by a sales representative.