Lect21!22!31st Mar - Integrated Marketing Communication

8/2/2019 Lect21!22!31st Mar - Integrated Marketing Communication

1/19

Recap of the last Class:

Channel flows & Channel levels

Utilities desired by the customers

Types of distribution

Vertical vs. Horizontal marketingsystems

Marketing Logistics

Types of warehouses

Diff b/n retailers & wholesalers


2/19

Surprise Quiz 2

Explain concept of brand ladder (2 mks) With example explain the difference

between brand & line extension (2 mks)

With examples explain difference b/n thetwo types of order processing methods? (2mks)

Explain with e.g. the concept of target

costing (2mks) Explain with e.g. the difference between

perceived value pricing & value pricing (2mks)

2


3/19

Marketing Communications &Promotion Decisions:

Marketing Communication Mix consistsof various modes of communication: Advertising: Paid form of non-personal

presentation

Sales promotion: Short term incentives toencourage trial & purchase

Company Sponsored Events

PR & Publicity: Companys image

promotion Personal Selling: Face to face interaction

Direct Marketing: Use of mail, e-mail,telephone etc

Interactive marketing & W-o-m marketing 3


4/19

Sender Encoding Decoding Receiver

ResponseFeedback

Media/Message

Noise

Macro Model of theCommunications Process:


5/19

Eight Steps of DevelopingEffective Communication:

Step 1: Identify Target Audience Determine target audiences perception

about the company and its products

Step 2: Determine CommunicationObjective

Make consumers identify a latent need

Make consumers aware of a given brand

Develop a favorable brand attitude

Enforce brand purchase intention

5


6/19

Eight Steps of DevelopingEffective Communication (Cont.):

Step 3: Design the Communications Message & Creative Strategy: What to say

& how to say it?

Rational/Informational Emotional/Transformational

Message Source: Who should say themessage?

Based on expertise, trustworthiness & likeability

Principle of Congruity

Global Adaptations

6


7/19


Step 4: Selecting CommunicationChannels:

Choice between personal vs. non-personal

communication channels Step 5: Establishing Total Marketing

Communication Budget:

Affordable Method Percentage-of-Sales Method

Competitive-Parity Method

Objective and Task Method 7


8/19


Step 6: Decide on MarketingCommunication Mix:

Which of the major modes of comm. to

use? Various factors also decide this

Step 7: Measure Communication

Results Step 8: Managing and Coordinating

Integrated Marketing Communications

Synergistic use of various modes ofmarketing communications 8


9/199

5 Major Decisions in DevelopingAdvertising Program:

Mission: Advertising Objectives

Money: Advertising Budget

Message

Media

Measurement


10/1910

Mission: Adverting Objectives

Informative

Advertising

PersuasiveAdvertising

ReminderAdvertising


11/1911

Money: Determining Ad.Budget

Factors considered while setting Ad.Budget are:

Stage in PLC

Market Share To gain more market share,more ads. Are required

Competition and Clutter

Advertising Frequency Product Substitutability


12/1912

Deciding on the Message

Message Generation

Message Evaluation & Selection

Message Execution

Social Responsibility Review


13/1913

Deciding on the Media

Step 1: Decide on reach, frequency &Impact

Reach (R): No. of persons exposed to a

particular media schedule during aspecified time period

Frequency (F): No. of times that people areexposed to a message in a specific period

Impact (I): Qualitative value of exposure

Total No. of Exposure (E): R*F

Weighted No. of Exposure (WE): R*F*I


14/19

14

Step 2: Choosing among major media: Target audiences media habits

Type of product

Type of message Cost

Step 3: Selecting specific vehicles:

Specific media vehicle comes within achosen media type

Deciding on the Media(Cont)


15/19

15

Step 4: Deciding on Media Timing:

When to start the ad. campaign?

Step 5: Deciding on GeographicalAllocation: National vs. Regional

Deciding on the Media(Cont)


16/19

Measurement: Evaluating theadvertising effectiveness

Communication-Effect Research: Determines if the ad. is communicating

effectively. Also called COPY TESTING

Three methods of doing copy testing are: Direct Rating Method: To rate the ads on various

parameters

Portfolio Test: Show a customer portfolio of ads

and then ask them to recall an ad. Laboratory Test: Measure physiological

reactions e.g. heartbeat, BP etc. These tests measure attention getting power but reveal

nothing about impact of ad on beliefs, attitudes or intentions


17/19

Sales Promotion:

Short term incentives to encouragetrial & purchase

Major Decisions taken in Sales

promotion are: Establish objectives: e.g. induce trial,

encourage switching

Select Tools

Develop programs Pretest Program

Implement and Control it

Evaluate its results


18/19

Public Relations:

It involves programs aimed atpromoting and protecting companys

image and that of its individual

products Major Decisions taken are:

Establish Objectives

Choose Messages and Vehicles Implement the plan

Evaluate the results


19/19

Personal Selling Process

1. Prospecting and Evaluation

2. Pre Approach

3. Approach

4. Presentation

5. Handling Objectives

6. Closing

7. Follow-up

Documents

Lect21!22!31st Mar - Integrated Marketing Communication