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