Integrated Marketing Communication

Prof .Shaphali Gupta

AdvertisingAdvertising

Personal SellingPersonal Selling

Any Paid Form of Non personal Presentation by an Identified Sponsor.

Any Paid Form of Non personal Presentation by an Identified Sponsor.

Sales Promotion Short-term Incentives to Encourage Trial or Purchase.

Public Relations/ Publicity

Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response.

Protect and/or Promote Company’s Image/products.

Personal Presentations.

The Marketing Communications Mix

Events& Experience Co. Sponsored Activities to encourage trial or purchase

Elements in the Communication Process

SENDERSENDEREncodingEncoding DecodingDecoding

RECEIVERRECEIVER

MediaMedia

Message

FeedbackFeedback ResponseResponse

NoiseNoise

Message Problems

Selective Attention

Selective Distortion

Selective Retention

Effective CommunicationsStep 1. Identifying the Target AudienceStep 1. Identifying the Target Audience

PurchasePurchase

Conviction

Preference

Liking

Knowledge

Awareness

Step 2. Determining the Communication ObjectivesBuyer Readiness Stages

Step 2. Determining the Communication ObjectivesBuyer Readiness Stages

Response Hierarchy Models

Communi-cationsModel d

AIDAModel a

Innovation-AdoptionModel c

Hierarchy-of-Effects Model b

Stages

Cognitivestage

Affectivestage

Behaviorstage

Awareness

Trial

Adoption

Interest

Evaluation

Purchase

Liking

Preference

Conviction

Awareness

Knowledge

Attention

Interest

Desire

Action Behavior

Attitude

Intention

Exposure

Reception

Cognitiveresponse

Message SourceExpertise,

Trustworthiness,Congruity

Step 3. Designing the MessageStep 3. Designing the Message

Message FormatLayout,

Words, & Sounds,Body Language

Message StructureDraw Conclusions

Argument TypeArgument Order

Message ContentRational Appeals

Emotional AppealsMoral Appeals

Step 4. Select Communications ChannelStep 4. Select Communications Channel

Nonpersonal CommunicationChannels

Personal CommunicationChannels

Step 5. Establish the BudgetStep 5. Establish the Budget

CompetitiveParity

Objective& Task

Affordable% OfSales

Step 6. Decide on Communications MixStep 6. Decide on Communications Mix

AdvertisingPublic, Pervasive, Expressive, Impersonal

AdvertisingPublic, Pervasive, Expressive, Impersonal

Sales PromotionCommunication, Incentive, Invitation

Sales PromotionCommunication, Incentive, Invitation

Public Relations & PublicityCredibility, Surprise, DramatizationPublic Relations & Publicity

Credibility, Surprise, Dramatization

Personal SellingPersonal Confrontation, Cultivation, Response

Personal SellingPersonal Confrontation, Cultivation, Response

Direct MarketingNonpublic, Customized, Up-to-Date, Interactive

Direct MarketingNonpublic, Customized, Up-to-Date, Interactive

Step 7. Measure ResultsStep 7. Measure Results

Step 8. Manage the IMC ProcessStep 8. Manage the IMC Process

Product Life-Cycle

Stage

Type of Product/ Market

Push vs. Pull

Strategy

Factors in Developing Promotion Mix Strategies

Factors in Developing Promotion Mix Strategies

Buyer/ Readiness

Stage

Push Versus Pull Strategy

Producer

Producer

Interme-diaries

Marketingactivities

End users

Marketingactivities

Demand Interme-diaries

Demand

Push Strategy

Pull Strategy

End users

Marketing activities

Demand

Managing Mass Communications

Advertising

Major Decisions in AdvertisingMajor Decisions in Advertising

Objectives SettingObjectives Setting

Budget DecisionsBudget Decisions

Message DecisionsMessage Decisions Media DecisionsMedia Decisions

Campaign EvaluationCampaign Evaluation

Informative AdvertisingBuild Primary Demand

Informative AdvertisingBuild Primary Demand

Persuasive AdvertisingBuild Selective Demand

Persuasive AdvertisingBuild Selective Demand

Comparison AdvertisingCompares One Brand to

Another

Comparison AdvertisingCompares One Brand to

Another

Reminder AdvertisingKeeps Consumers Thinking

About a Product.

Reminder AdvertisingKeeps Consumers Thinking

About a Product.

Advertising Objectives

• Specific Communication Task • Accomplished with a Specific Target Audience • During a Specific Period of Time

The Five Ms of Advertising

Mission

Salesgoals

Adver-tisingobjectives

Money

Factors toconsider:

Stage in PLC

Market shareand con-sumer base

Competitionand clutter

Advertisingfrequency

Productsubstituta-bility

Message

Message generation

Message evaluationand selection

Message execution

Social-responsibilityreview

MediaReach, frequency,impactMajor media typesSpecific mediavehicles

Media timingGeographicalmedia allocation

Measure-ment

Communi-cationimpact

Salesimpact

Advertising Budget Factors

Stage in the Product Life Cycle

Market Share &Consumer Base

Competition &Clutter

AdvertisingFrequency

ProductSubstitutability

Profiles of Major Media Types

NewspapersAdvantages: Flexibility, timeliness; good local market coverage;

broad acceptance, high believability

Limitations: Short life; poor reproduction quality; smallpass-along audience

TelevisionAdvantages: Combines sight, sound, motion; high attention; high reach; appealing to senses

Limitations: High absolute costs; high clutter; fleeting exposure;less audience selectivity

Direct MailAdvantages: Audience selectivity; flexibility, no ad compe-

tition within same medium; allows personalization

Limitations: Relative high cost; “junk mail” image

RadioAdvantages: Mass use; high geographic and demographic

selectivity; low cost

Limitations: Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences

MagazinesAdvantages: High geographic and demographic selectivity;

credibility and prestige; high-quality reproduction;long life; good pass-along readership

Limitations: Long ad purchase lead time; waste circulation; no guarantee of position

OutdoorAdvantages: Flexibility; high repeat exposure; low cost; low message competition

Limitations: Little audience selectivity; creative limitations

Profiles of Major Media Types

Classification ofAdvertising Timing Patterns

Month

Number ofmessagesper month

Concen-trated

(1) (2) (3)Level Rising Falling Alternating

(4)

Continuous

(8)(7)(6)(5)

(9)Inter-

mittent

(10) (11) (12)(9)

Simplified Rating Sheet for Ads

PoorPooradad

MediocreMediocreadad

AverageAverageadad

GoodGoodadad

GreatGreatadad

0 20 40 60 80 100 __Total__Total

(Attention) How well does the ad catch the reader’s attention? __20(Read-through) How well does the ad lead the reader to read further? __20(Cognitive) How clear is the central message or benefit? __20(Affective) How effective is the particular appeal? __20

(Behavior) How well does the ad suggest follow-through action? __20

Advertising StrategyMessage Execution

Advertising StrategyMessage Execution

TypicalMessage

ExecutionStyles

TypicalMessage

ExecutionStyles

TestimonialEvidence

TestimonialEvidence Slice of LifeSlice of Life

ScientificEvidence

ScientificEvidence

LifestyleLifestyle

TechnicalExpertise

TechnicalExpertise

FantasyFantasy

MusicalMusical

PersonalitySymbol

PersonalitySymbol

Mood orImage

Mood orImage

Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.

Advertising Program EvaluationAdvertising Program Evaluation

Communication Effects

Is the Ad Communicating Well?

Communication Effects

Is the Ad Communicating Well?

Advertising Evaluation

Sales Effects

Is the Ad Increasing Sales?

Sales Effects

Is the Ad Increasing Sales?

Sales Promotion

Sales Promotion

Collection of incentive tools, mostly

short term, designed to stimulate

quicker or greater purchase

of particular products or services

by consumers or the trade.

Why the increase in Sales Promotion?

• Growing retailer power• Declining brand loyalty• Increased promotional sensitivity• Brand proliferation• Fragmentation of consumer market• Short-term focus• Increased managerial accountability• Competition• Clutter

Long-Term Promotional Allocation

0

10

20

30

40

50

60

1986 88 90 92 94 1996

Year

%t

of

tota

l -

3 yr

.MA

Trade Promo

Media Adv

Cons. Promo

Cox Direct 19th Annual Survey of Promotional PracticesCox Direct 19th Annual Survey of Promotional Practices

Channels of Sales Promotions

MANUFACTURER

RETAILER

TradeTradePromotionsPromotions

CONSUMER

ConsumerConsumerPromotionsPromotions

Push

PushPullRetailRetail

PromotionsPromotions

Consumer PromotionConsumer Promotion

Consumer-Promotion Objectives

Consumer-Promotion Tools

Point-of-PurchaseDisplays

Point-of-PurchaseDisplays

PremiumsPremiums

Price PacksPrice Packs

Cash RefundsCash Refunds

CouponsCoupons

SamplesSamples

Patronage Rewards

Patronage Rewards

GamesGames

SweepstakesSweepstakes

ContestsContests

AdvertisingSpecialties

AdvertisingSpecialtiesPatronage Rewards

Entice Consumers to Try a New Product

Entice Consumers to Try a New Product

Lure Customers AwayFrom Competitors’ Products

Lure Customers AwayFrom Competitors’ Products

Get Consumers to “Load Up’on a Mature Product

Get Consumers to “Load Up’on a Mature Product

Hold & Reward Loyal Customers

Hold & Reward Loyal Customers

Consumer Relationship Building

Consumer Relationship Building

“Deal Proneness,”Liechtenstein, Burton, & Netemeyer, Journal of Retailing, Summer 1997

• Examination of “deal proneness” among consumers in a supermarket setting

• Surveys & Grocery Receipts used

• Eight types of deals:– Cent-off, One-free, Gift, Display, Rebate,

Contest, Sale, & Coupon

“Deal Proneness,”Liechtenstein, Burton, & Netemeyer

Cluster analysis yielded two interpretable results:

49% are “deal prone,” 51% not 24% High “Deal prone,” 50%

intermediate, 26% deal insensitive

• “Deal-proneness” a generalized construct - (crosses type of promotion)

• Younger & Less educated more likely to be deal prone

Trade-Promotion Objectives

Trade-Promotion Tools

Specialty Advertising

Items

Specialty Advertising

ItemsContestsContests

Free GoodsFree Goods

Buy-BackGuarantees

Buy-BackGuarantees

AllowancesAllowances

Price-OffsPrice-Offs

Patronage Rewards

Patronage Rewards

Push MoneyPush Money

DiscountsDiscounts

PremiumsPremiums

Displays

Persuade Retailers or Wholesalers to Carry a Brand

Persuade Retailers or Wholesalers to Carry a Brand

Give a Brand Shelf SpaceGive a Brand Shelf Space

Promote a Brand in Advertising

Promote a Brand in Advertising

Push a Brand to ConsumersPush a Brand to Consumers

Trade Promotions

Business-Promotion Objectives Business-Promotion

ToolsGenerate Business LeadsGenerate Business Leads

Stimulate PurchasesStimulate Purchases

Reward CustomersReward Customers

Motivate SalespeopleMotivate Salespeople

ConventionsConventions

Trade ShowsTrade Shows

Sales ContestsSales Contests

Business-to-Business Promotion

Public Relation

SpecialEvents

SpecialEvents

Written MaterialsWritten

Materials

Corporate Identity Materials

Corporate Identity Materials

SpeechesSpeeches

NewsNews

AudiovisualMaterials

AudiovisualMaterials

Major Public Relations ToolsMajor Public Relations Tools

Public Service

Activities

Public Service

Activities

Web SiteWeb Site

Marketing Public Relations Functions

• Assist in product launches• Assist in repositioning mature products• Build interest in a product category• Influence specific target groups• Defend products• Build corporate image

Steps in Marketing PR

Establish objectives

Choose messages

Choose vehicles

Implement and control

Measure effectiveness

Why Sponsor Events?

• To identify with a particular target market or life style

• To increase brand awareness• To create or reinforce consumer perceptions of

key brand image associations• To enhance corporate image• To create experiences and evoke feelings• To express commitment to community• To entertain key clients or reward employees• To permit merchandising or promotional

opportunities

Ideal Events

Audience closely matches target market

Event generates media attention

Event is unique with few sponsors

Event lends itself to ancillary activities

Event reflects or enhances brand image of sponsor

Managing Personal Communications

Direct Marketing

Use of consumer-direct channels to reachand deliver goods and services to

customers without using market middlemen.

Direct Marketing Channels

• Catalogs

• Direct mail

• Telemarketing

• Web sites

• Email marketing

• Mobile devices

• Interactive TV

Public Issues in Direct Marketing

• Irritation

• Unfairness

• Deception/fraud

• Invasion of privacy

RFM Formula for Selecting Prospects

• Recency

• Frequency

• Monetary value

Types of Telemarketing

• Telesales

• Telecoverage

• Teleprospecting

• Customer service and technical support

Other Media for Direct Response

Television

• Direct Response Advertising

• At home shopping channels

• Videotext

Kiosks

Designing an Attractive Web Site

• Context

• Content

• Community

• Customization

• Communication

• Connection

• Commerce

Ease of Use and Attractiveness

• Ease of Use– Downloads quickly– First page is easy to understand– Easy to navigate

• Attractiveness– Clean looking– Not overly crammed with content– Readable fonts– Good use of color and sound

Increasing Visits and Site Stickiness

• Deep information with links

• Changing news of interest

• Changing offers

• Contests and sweepstakes

• Humor and jokes

• Games

Online Ads

• Banner ads

• Sponsorships

• Interstitials

• Search-related ads

• Content-targeted advertising

• Alliances

• Affiliate programs

e-Marketing Guidelines

• Give the customer a reason to respond

• Personalize the content of your emails

• Offer something the customer could not get via direct mail

• Make it easy for customers to unsubscribe

Figure 19.1 Designing a Sales Force

Sales force objectives

Sales force strategy

Sales force structure

Sales force size

Compensation

Types of Sales Representatives

• Deliverer

• Order taker

• Missionary

• Technician

• Demand creator

• Solution vendor

Sales Tasks

• Prospecting

• Targeting

• Communicating

• Selling

• Servicing

• Information gathering

• Allocating

Figure 19.2 Managing the Sales Force

Recruiting, selecting

Training

Supervising

Motivating

Evaluating

Workload Approach to Determining Sales Force Size

• Customers are grouped into size classes

• Desirable call frequencies are established

• Number of accounts in each size class multiplied by call frequency

• Average number of calls possible per year established

• Number of reps equal to total annual calls required divided by number possible

Components of Sales Force Compensation

• Fixed amount

• Variable amount

• Expense allowances

• Benefits

What Motivates Sales Reps?

Most Rewarding• Pay• Promotion• Personal growth• Sense of

accomplishment

Least Rewarding• Liking• Respect• Security• Recognition

Figure 19.3 Steps in Effective Selling

Prospecting/ Qualifying

Preapproach

Approach

Presentation

Overcoming objections

Closing

Follow-up