Marketing Communication Final

8/14/2019 Marketing Communication Final

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Integrated MarketingIntegrated MarketingCommunicationCommunication

Strategy Strategy



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Objectives• Know the tools of the marketingKnow the tools of the marketing

communications mix.communications mix.

•Understand the process andUnderstand the process andadvantages of integrated marketingadvantages of integrated marketing

communications.communications.

• Learn the steps in developing effectiveLearn the steps in developing effective

marketing communications.marketing communications.

• Understand methods for settingUnderstand methods for setting

promotional budgets and the factorspromotional budgets and the factors

that affect the design of the promotionthat affect the design of the promotionmix.mix.



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Definition• Marketing CommunicationsMarketing Communications

MixMix The specific mix of advertising, The specific mix of advertising,

personal selling, salespersonal selling, sales

promotion, and public relations apromotion, and public relations acompany uses to pursue itscompany uses to pursue its

advertising and marketingadvertising and marketing

objectives.objectives.



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The Marketing Communications

Mix

Advertising

Personal Selling

Any Paid Form of Non personal

Presentation by an IdentifiedSponsor.

Sales Promotion Short-term Incentives toEncourage Sales.

Public Relations

Building Good Relations with

Various Publics by ObtainingFavorable Unpaid Publicity.

Direct MarketingDirect CommunicationsWith Individuals to Obtainan Immediate Response.

Personal Presentations bya Firm’s Sales Force.



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• Integrated MarketingIntegrated MarketingCommunicationsCommunications The concept under which a company The concept under which a company

carefully integrates and coordinatescarefully integrates and coordinates

its many communications channelsits many communications channelsto deliver a clear, consistent, andto deliver a clear, consistent, andcompelling message about thecompelling message about theorganization and its products.organization and its products.

IMC implementation often requiresIMC implementation often requiresthe hiring of a MarCom manager.the hiring of a MarCom manager.

Integrated Marketing

Communications



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• The Need for Integrated The Need for Integrated

Marketing CommunicationsMarketing Communications Conflicting messages from differentConflicting messages from different

sources or promotional approachessources or promotional approaches

can confuse company or brandcan confuse company or brandimagesimages The problem is particularly prevalent The problem is particularly prevalent

whenwhen

functional specialists handle individualfunctional specialists handle individual

Integrated Marketing

Communications



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Integrated MarketingCommunicationsCompany Carefully Integrates and

Coordinates Its Many CommunicationChannels to Deliver a Clear, Consistent,

Compelling Message.

Advertising

Personal

Selling

Public

Relations

Sales

Promotion

Direct

Marketing

Packaging

Event

Marketing Message



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• Communications efforts should beCommunications efforts should be

viewed from the perspective of viewed from the perspective of managing customer relationshipsmanaging customer relationshipsover time.over time.

• The communication process The communication process

begins with an audit of allbegins with an audit of allpotential contacts.potential contacts.

• Effective communication requiresEffective communication requires

knowledge of how communicationknowledge of how communication

The Communication

Process



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Elements in theElements in the

Communication ProcessCommunication Process

The Communication

Process

• SenderSender

• MessageMessage• MediaMedia

• ReceiverReceiver

• EncodingEncoding

• DecodingDecoding• ResponseResponse

• FeedbackFeedback

• NoiseNoise





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• Step 1:Step 1: Identifying the Target AudienceIdentifying the Target Audience

Affects decisions related to what, how,Affects decisions related to what, how,when, and where message will be said,when, and where message will be said,as well as who will say itas well as who will say it

Assess needs, attitudes , preferences of Assess needs, attitudes , preferences of the target marketthe target market

Rasna , McDonalds , Maggi NoodlesRasna , McDonalds , Maggi Noodles• Step 2:Step 2: Determining CommunicationDetermining Communication

ObjectivesObjectives Six buyer readiness stagesSix buyer readiness stages

Developing Effective

Communication



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Steps in Developing Effective

Communication

Step 1. Identifying the Target Audience

Step 2. Determining the Communication Objectives

Buyer Readiness Stages

Purchase

Conviction

Preference

Liking

Knowledge

Awareness



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Step 3. Designing a Message

Steps in Developing Effective

Communication

Attention Interest Desire

Message ContentRational Appeals

Emotional AppealsLove, pride, joy, humor, fear, guilt, shameLove, pride, joy, humor, fear, guilt, shame

Moral Appeals

Message StructureDraw Conclusions

Argument Type

Argument Order Message Format

Headline, Copy, Color,

Words, & Sounds,Body Language

Action

Key decisions are required with respect to three message structureKey decisions are required with respect to three message structure

issues:issues: -Whether or not to draw a conclusion – Ford in Mustang -Whether or not to draw a conclusion – Ford in Mustang

-One-sided vs. two-sided argument – “Heinz Ketchup is-One-sided vs. two-sided argument – “Heinz Ketchup is

slow good” ,”Listerine tastes bad twice a day “ slow good” ,”Listerine tastes bad twice a day “

- Order of argument presentation -- Order of argument presentation -

Appeal ,

Theme ,Idea

or USP

ESP



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• Step 4:Step 4: Choosing MediaChoosing Media Personal communication channelsPersonal communication channels

Includes face-to-face, phone, mail, andIncludes face-to-face, phone, mail, andInternet chat communicationsInternet chat communications

Word-of-mouth influence is oftenWord-of-mouth influence is oftencriticalcritical

Buzz marketing cultivates opinionBuzz marketing cultivates opinionleadersleaders

Nonpersonal communicationNonpersonal communication

Developing Effective

Communication





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Percentage-of-Sales

Method

AffordableMethod

Competitive-Parity

Method

Objective-and-TaskMethod

Setting the Total Promotion Budget



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• Setting the Total PromotionalSetting the Total Promotional

BudgetBudget Affordability MethodAffordability Method

Budget is set at a level that a company Budget is set at a level that a company

can affordcan afford Percentage-of-Sales MethodPercentage-of-Sales Method

Past or forecasted sales may be usedPast or forecasted sales may be used

Competitive-Parity MethodCompetitive-Parity Method ’’

Setting the

Promotional Budgetand Mix



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• Setting the Total PromotionalSetting the Total Promotional

BudgetBudget Objective-and-Task MethodObjective-and-Task Method

Specific objectives are definedSpecific objectives are defined

Tasks required to achieve objectives areTasks required to achieve objectives are

determineddetermined

Costs of performing tasks are estimated,Costs of performing tasks are estimated,

thenthen

Setting the




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P&G sticking to this formula

• One should admire P&G for sticking toOne should admire P&G for sticking tothis formula, evident in their spendingthis formula, evident in their spending

of several crores of rupees in buildingof several crores of rupees in buildingAriel brand. Surprisingly enough, if Ariel brand. Surprisingly enough, if your objectives are reasonable andyour objectives are reasonable andattainable, the budget you arrive at byattainable, the budget you arrive at bythis method may more or lessthis method may more or lessapproximate the budget that otherapproximate the budget that othermethods might suggest.methods might suggest.



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•Setting the Overall PromotionSetting the Overall PromotionMixMix

Determined by theDetermined by the nature of nature of

each promotion tooleach promotion tool and theand theselectedselected

promotion mix strategy promotion mix strategy

Setting the


S i h P i



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Setting the PromotionMixNature of Each Promotion Tool

AdvertisingReaches Many Buyers, Expressive

ImpersonalPersonal Selling

Personal Interaction, Builds Relationships

CostlySales Promotion

Provides Strong Incentives to BuyShort-Lived

Public RelationsBelievable, Effective, EconomicalUnderused by Many Companies

Direct MarketingNonpublic, Immediate, Customized,

Interactive

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Setting thePromotional Budget

and Mix

• Advertising Advertising

• Personal SellingPersonal Selling

• Sales PromotionSales Promotion• Public RelationsPublic Relations

• Direct MarketingDirect Marketing

• Reaches large,Reaches large,geographically dispersedgeographically dispersed

audiences, often with highaudiences, often with highfrequencyfrequency

• Low cost per exposure,Low cost per exposure,though overall costs arethough overall costs arehighhigh

• Consumers perceiveConsumers perceiveadvertised goods as moreadvertised goods as morelegitimatelegitimate

• DramatizesDramatizescompany/brandcompany/brand

• Builds brand image; mayBuilds brand image; maystimulate short-term salesstimulate short-term sales

PromotionPromotion

ToolsTools





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and Mix



• Sales PromotionSales Promotion• Public RelationsPublic Relations


• Highly credibleHighly credible

• Many forms: news stories,Many forms: news stories,

news features, events andnews features, events andsponsorships, etc.sponsorships, etc.

• Reaches many prospectsReaches many prospects

missed via other forms of missed via other forms of

promotionpromotion

• Dramatizes company orDramatizes company or

benefitsbenefits

• Often the most underusedOften the most underused

element in theelement in the

promotional mixpromotional mix

PromotionPromotion

ToolsTools

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and Mix



• Sales PromotionSales Promotion

• Public RelationsPublic Relations


• Many forms:Many forms: Telephone marketing, Telephone marketing,

direct mail, onlinedirect mail, onlinemarketing, etc.marketing, etc.

• Four distinctiveFour distinctivecharacteristics:characteristics: NonpublicNonpublic

ImmediateImmediate CustomizedCustomized

InteractiveInteractive

• Well-suited to highlyWell-suited to highly

targeted marketingtargeted marketingeffortsefforts

PromotionPromotion

ToolsTools



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Perfecting your new ad

campaign• After running the "Clove-oil" advertisement of After running the "Clove-oil" advertisement of

Promise toothpaste successfully for more thanPromise toothpaste successfully for more thanfour years, Balsara Hygiene Products decidedfour years, Balsara Hygiene Products decided

to change the ad copy.to change the ad copy.• They came out with a new campaign stressing They came out with a new campaign stressingthe "extra freshness" angle of their dentalthe "extra freshness" angle of their dentalcream.cream.

• Unfortunately, it bombed, plunging the No.2Unfortunately, it bombed, plunging the No.2

toothpaste brand to No.3 position, aftertoothpaste brand to No.3 position, afterColgate and Close Up.Colgate and Close Up.

• The whole episode costed the company The whole episode costed the companymillions of rupees in lost revenues andmillions of rupees in lost revenues andad/promotion expenses.ad/promotion expenses.



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• Promotion Mix StrategiesPromotion Mix Strategies Push strategy:Push strategy: trade promotions andtrade promotions and

personal selling efforts push thepersonal selling efforts push the

product through the distributionproduct through the distribution

channels.channels. Pull strategy:Pull strategy: producers useproducers use

advertising and consumer salesadvertising and consumer sales

promotions to generate strongpromotions to generate strong

consumer demand for products.consumer demand for products.

Setting the




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• Advertising and Sales PromotionAdvertising and Sales Promotion Avoid false and deceptiveAvoid false and deceptive

advertisingadvertising Bait and switch advertisingBait and switch advertising

Trade promotions can not favor Trade promotions can not favorcertain customers over otherscertain customers over others

Use advertising to promoteUse advertising to promote

socially responsible programs andsocially responsible programs and

Socially Responsible

Communications



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Bait and switch

advertising• InIn retail salesretail sales, a, a bait and switchbait and switch

is a form of is a form of fraudfraud in which thein which the

party putting forth the fraud luresparty putting forth the fraud luresin customers byin customers by advertisingadvertising aa

product or service at anproduct or service at an

unprofitably low price, thenunprofitably low price, thenreveals to potential customersreveals to potential customers

that the advertised good is notthat the advertised good is not

available but that a substitute is.available but that a substitute is.

http://en.wikipedia.org/wiki/Retail_sales


http://en.wikipedia.org/wiki/Fraud


http://en.wikipedia.org/wiki/Advertising









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Surrogate AdsProxy War



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surrogate

advertisement • In India, the trend of surrogateIn India, the trend of surrogateadvertisement gatheredadvertisement gathered

momentum with the Cable TV momentum with the Cable TV Network Regulation Act, whichNetwork Regulation Act, which prohibits tobacco and liquor prohibits tobacco and liquor advertisements on TV channels.advertisements on TV channels.

• The liquor industry hasThe liquor industry hasintentionally blurred the lineintentionally blurred the linebetween products, advertisingbetween products, advertising`old wine' in a `new bottle,' only `old wine' in a `new bottle,' only

this time with a soft-drink label.this time with a soft-drink label.



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surrogate

advertisement • "surrogate advertising" is a"surrogate advertising" is a

phenomenon duplicating thephenomenon duplicating the

brand image of one productbrand image of one productextensively to promote anotherextensively to promote another

product of the same brandproduct of the same brand

• Bangalore Indian Premier LeagueBangalore Indian Premier League(IPL) cricket team, “Royal(IPL) cricket team, “Royal

Challengers”.Challengers”.

s rrogate



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surrogateadvertisement • Bagpiper soda and cassettes & CDs,Bagpiper soda and cassettes & CDs,

Haywards soda, Derby special soda, GilbeyHaywards soda, Derby special soda, Gilbeygreen aqua, Royal Challenge golf green aqua, Royal Challenge golf accessories and mineral water, Kingfisheraccessories and mineral water, Kingfishermineral water, White Mischief holidays,mineral water, White Mischief holidays,

Smirnoff cassettes & CDs, Imperial BlueSmirnoff cassettes & CDs, Imperial Bluecassettes & CDs, Teacher's achievementcassettes & CDs, Teacher's achievementawards etc.awards etc.

• It was little surprising to know that liquorIt was little surprising to know that liquorgiants like McDowell's and Seagram's havegiants like McDowell's and Seagram's haveentered into new segments like cassettesentered into new segments like cassettes& CDs, mineral water, sports accessories& CDs, mineral water, sports accessoriesetc.etc.

• The basic aim = to promote their liquor The basic aim = to promote their liquor

brands like beer, wine, vodka etc.brands like beer, wine, vodka etc.



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surrogate

advertisement • A similar trend is followed byA similar trend is followed by

companies making Cigarettes,companies making Cigarettes,

Paan MasalaPaan Masala andand GutkhaGutkha..• Few examples of surrogateFew examples of surrogate

advertisements in this categoryadvertisements in this category

are - Red & White bravery awards,are - Red & White bravery awards,Wills lifestyle, Four Square whiteWills lifestyle, Four Square whitewater rafting, Manikchand awardswater rafting, Manikchand awardsetcetc



surrogate

advertisement • The Health Ministry has implemented The Health Ministry has implemented

the tobacco control legislation whichthe tobacco control legislation whichwill imply a complete ban onwill imply a complete ban onadvertisements and all direct & indirectadvertisements and all direct & indirectpromotional campaigns for tobaccopromotional campaigns for tobaccoproducts.products.

• In 2001, Indian Tobacco Company (ITC)In 2001, Indian Tobacco Company (ITC)had voluntary withdrawn the Willshad voluntary withdrawn the WillsSports sponsorship of the Indian cricketSports sponsorship of the Indian cricketteam when the Government had firstteam when the Government had firstproposed a ban on advertising throughproposed a ban on advertising throughl i l til i l ti

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Marketing Communication Final