Marketing Communications IMC

Marketing Communications IMC - Transcript

Promotion Marketing Communication An Introduction to IMC

What is promotion Marketing Communication Communication
Modern marketing calls for more than Modern just developing a good product pricing it attractively and making it available to target customers Companies also must communicate with their customers and communicate and what they communicate should not be left to chance For most companies the question is not whether to communicate but how much to spend and in what ways ways

What is promotion What
Promotion is the co ordination of seller s efforts to set up channels of information and persuasion to facilitate the sales of goods services or acceptance of an idea or

What is promotion What
To Inform
PROMOTION

To Persue To Remind

To Modify Behavior

What is promotion What
Promotion is an act of communication Promotion It includes all those activities which are It aimed at creating and stimulating demand aimed It performs many functions It It tells how and why a product is used By what kind of person Where and when to use Who makes the product What the company and brand stands for What reward or incentive for trial or usage

PROMOTIONAL TOOLS PROMOTIONAL THE PROMOTION MIX
Advertising Sales promotion Public relations and Publicity Direct Marketing Interactive marketing Personal selling Events and experiences Word of mouth marketing

ELEMENTS OF PROMOTION MIX ELEMENTS
1 Advertising Any paid form of non1 Advertising personal presentation and promotion of personal ideas goods or services by an identified sponsor 2 Publicity Non personal stimulation of 2 Publicity demand for a product or service or business unit by planting commercially significant news about it in a published medium or obtaining favorable presentation of it upon radio T V or stage that is not paid for by the sponsor sponsor

ELEMENTS OF PROMOTION MIX ELEMENTS
3 Personal Selling Oral presentation in a conversation with one or more prospective purchasers for the purpose of making sales 4 Sales Promotion All those marketing 4 Sales activities other than advertising publicity and personal selling that stimulate consumer purchasing and dealer effectiveness such as displays shows exhibition demonstrations and various non recurrent selling efforts These are usually short term activities usually

ELEMENTS OF PROMOTION MIX ELEMENTS
5 Direct Marketing Has several forms direct 5 Direct mail telemarketing electronic marketing and so on It has a few distinctive characteristics non public customized Up to Date Messages can be prepared very quickly for an individual be 6 Events and experiences Company sponsored 6 activities and programs designed to create daily or special brand related interactions special 7 Interactive marketing Online activities and 7 programmes designed to engage customers prospects and directly or indirectly raise awareness improve image or elicit sales awareness

Communication Platforms Communication
Advertising
Videotapes

Sales Promotion Print and broadcast ads Contests games Contests Packaging inserts sweepstakes sweepstakes Motion pictures Premiums Brochures and booklets Sampling Posters Trade shows exhibits Billboards Coupons POP displays Rebates Logos Entertainment Videotapes

Communication Platforms Communication
Events Experiences Sports Entertainment Festivals Causes Factory tours Company museums Street activities Public Relations Press kits Speeches Seminars Annual reports Charitable donations Publications Community relations

Communication Platforms Communication
Personal Selling Sales presentations Sales meetings Incentive programs Samples Fairs and trade Fairs shows shows Direct Marketing Catalogs Mailings Telemarketing Electronic shopping TV shopping Fax mail E mail Voice mail

PROMOTION IS AN ACT OF PROMOTION COMMUNICATION COMMUNICATION
The word communication is based on the The Latin word meaning COMMON Thus the term communication has come to mean sharing something of common use Since marketing communications aim at Since influencing the consumer behavior in favour of the firm s offerings these are persuasive in nature These persuasive communications are more commonly called PROMOTION and constitute one of the 4Ps of the marketing mix

PROMOTION IS AN ACT OF PROMOTION COMMUNICATION COMMUNICATION
Modern marketing calls for more than developing a Modern good product pricing it correctly and making it easily available to the customer The company that wants more than walk in sales must develop an effective program of communication promotion effective Persuasive communication is said to take place Persuasive when a communicator very consciously develops his messages to have a calculated impact on the attitude and or behavior of a target audience A study of Marketing communication is a study of study promotion function of marketing promotion

THE COMMUNICATION MODEL THE
WHO SAYS WHAT HOW TO WHOM In what In channel channel

Communicator

Message

Channels

Audience

With what effect

HOW COMMUNICATION WORKS THE PROCESS OF COMMUNICATION

Sender Source Encoding of message Message and Media Decoding Of Message

Noise

Receiver

Response

Feedback

ELEMENTS OF THE COMMUNICATION PROCESS
1 Source or sender or communicator 2 Encoding Putting the thought or idea in symbolic form symbolic 3 Message The set of symbols for transmission 4 Media The path through which the message moves from Sender to Receiver moves 5 Decoding Assigning meanings to the symbols transmitted by the sender 6 Receiver or audience or destination 7 Response The set of reactions that the receiver has after having been exposed to the message message 8 Feedback 8

COMMUNICATION PROCESS a view
In view of the new electronic technologies In companies must ask not only How can we reach our customers but also How can we find ways to let our customers reach us find For a message to be effective the sender s For encoding process must mesh with the receiver s decoding process Thus the best messages are essentially signs that are familiar to the receiver familiar

COMMUNICATION PROCESS a view
The sender s task is to get his or her message through to the receiver The target audience may not receive the intended message for any of three reasonsreasons Selective attention Selective distortion people may twist the Selective message to hear what they want to hear Receivers have set attitudes they will hear what fits into their belief system hear Selective recall

COMMUNICATION PROCESS a view
Fiske and Hartley have outlined some general factors that influence the effectiveness of a communication effectiveness 1 The greater the monopoly of the 1 communication source over the recipient the greater the recipient s change effect in favour of the source favour 2 Communication effects are greatest 2 where the message is in line with the receiver s existing opinions beliefs and disposition contd disposition

COMMUNICATION PROCESS a view
3 Communication can produce the most 3 effective shifts on unfamiliar lightly felt peripheral issues who do not lie at the center of the recipient s value system of 4 Communication is more likely to be effective 4 where the source is believed to have expertise high status objectivity or likability but particularly where the source has power and can be identified with can 5 The social context group or reference 5 group will mediate the communication and influence whether or not the communication is accepted accepted

OBJECTIVES OF PROMOTION OBJECTIVES
To Increase Sales To To Increase Market Share To To Build Brand Loyalty To To Build Product Differentiation in To Consumers mind Consumers

DETERMINING THE PROMOTION MIX
FACTORS IN SETTING THE PROMOTION MIX

I Type of Product


For consumer products Heavy Advertising For Industrial products More Personal Selling
Personal Selling Personal Selling Sales Promotion Sales Promotion PPublicity ublicity Advertising Advertising Consumer Products Industrial Products

DETERMINING THE PROMOTION MIX MIX
FACTORS IN SETTING THE PROMOTION MIX

II Nature of Market II Nature Locational Characteristics of Locational consumers consumers Demographics of the customers Demographics Intensity of the competition Intensity

DETERMINING THE PROMOTION MIX MIX
FACTORS IN SETTING THE PROMOTION MIX

III Buyer Readiness stage III Buyer
Un aware Informed Aware Interested Not interested Interested Having full knowledge Having Comprehension Comprehension Conviction Conviction ordering Reordering etc

DETERMINING THE PROMOTION MIX PROMOTION
FACTORS IN SETTING THE PROMOTION MIX

IV Product Life Cycle Stage IV Product

Sales
Intro Growth Maturity Decline

Time

DETERMINING THE PROMOTION MIX
FACTORS IN SETTING THE PROMOTION MIX

V Push v s Pull strategy
Marketing Activities Demand

Push

Mfr

Intermediarie s
Marketing Activities

End User

Demand

Pull

Mfr

Demand

Intermediarie s

Demand

End User

DETERMINING THE PROMOTION MIX MIX
FACTORS IN SETTING THE PROMOTION MIX

VI Co Market Rank Top ranking brands VI Co
derive more benefit from advertising than derive sales promotion sales

VII Available Budget Available VIII Company Policy and Objectives Company IX Competitive Promotional IX Competitive Strategy Competitors role and reaction X Market Trend and Consumer Attitude

Steps in Developing Effective Communications Communications
Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Manage IMC

Communications Objectives Communications
Category need Brand awareness Brand attitude Purchase intention

Designing the Communications Designing
Message strategy search for appeals themes Message or ideas that will tie into brand positioning and help to establish POD and POP help Creative strategy informational Creative transformational non product related negative or positive appeals or Message source Personal communication channels Non personal communication channels Integration

Message Source Message
Celebrity Characteristics
Expertise Trustworthiness Likeability

Personal Communications Channels Personal Advocate Channels Company s salesperson Advocate contacting the buyers in target market contacting Expert Channels independent experts Expert making statements to target market making Social Channels neighbours friends family Social members etc talking to target buyers members

Stimulating Personal Influence Channels Stimulating
Identify influential individuals and devote extra Identify attention to them attention Create opinion leaders Use community influentials in testimonial Use advertising advertising Develop advertising with high conversation Develop value value Develop WOM referral channels Establish an electronic forum Use viral marketing



Media Sales Promotion Events and Experiences Public Relations

Nonpersonal Communication Channels Channels

Establish the Budget Establish
Affordable Percentage of Sales Competitive Parity Objective and Task

Objective and Task Method Objective and Task
Establish the market share goal Determine the percentage that should be Determine reached reached Determine the percentage of aware prospects Determine that should be persuaded to try the brand that Determine the number of advertising impressions Determine per 1 trial rate per Determine the number of gross rating points that Determine would have to be purchased would Determine the necessary advertising budget on Determine the basis of the average cost of buying a GRP the

Definition of Integrated Definition Marketing Communications
A concept of marketing communications concept planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines and combines these disciplines to provide clarity consistency and maximum communications impact through the seamless integration of discrete messages seamless

IDEAS INVOLVED IN IMC APPROACH APPROACH
Despite the increasing use of the term IMC Despite approach by both practitioners and academics in recent years there is little agreement on what the term actually means According to one recent review at least two related ideas are involved review One voice Marketing Communications Integrated Communications The different elements of the communications The mix have to be used in a way that the strengths of one are used to offset the weakness of another one

Integrated Integrated Marketing Communications
One voice Marketing Communications One voice As consumers increasingly being to be addressed by the same marketer in a variety of different ways i e through tools of promotion there is a need to ensure a consistency of positioning message and tone across these different media These different communications must reach consumers with one voice must

Integrated Marketing Communications
II Integrated Communications
A marketer s consumer communications need to not only raise marketer s brand awareness or create or change brand preference and image or to get sales trial or repurchase but to do all of the above at the same time above Increasing image without getting a sales result is not good enough and getting short term sales e g via sales promotion at the expense of a brand s long term image is also courting disaster

Thus all marketing communications should attempt to Thus simultaneously achieve targeted communication goals e g raising attitudes or building image and lead to some behavioral action e g trial or repurchase

Reasons For Growing Importance of IMC IMC
Shift from media advertising to other forms of marketing Shift communication communication Movement away from advertising focused approaches that Movement emphasize mass media Shift in power from manufacturers to retailers Rapid growth of database marketing Demands for greater ad agency accountability Changes in agency compensation Rapid growth of the Internet Increasing importance of branding

IMC Communication Tools IMC
IMC Communication Tools

Advertising Sales Promotion

Direct Marketing Publicity Public Relations

Interactive Internet Marketing Personal Selling

Advertising
Any paid form of non personal communication about an Any paid form of non personal communication about an organization product service idea or cause by an identified organization product service idea or cause by an identified sponsor sponsor Advantages of advertising Disadvantages of Disadvantages Advertiser controls the Advertiser advertising advertising message message High High Cost effective way to costs of producing and Cost running ads running communicate with large audiences audiences Credibility problems and Credibility Effective way to create brand Effective consumer skepticism consumer images and symbolic Clutter appeals appeals Often can be effective way to Difficulty in determining Often Difficulty strike responsive chord with effectiveness effectiveness consumers consumers

Classifications of Advertising
Advertising to Consumer Markets Advertising to Consumer Markets National advertising National advertising Retail local advertising Retail local advertising Advertising to increase demand Advertising to increase demand
Primary demand for the product category Primary demand for the product category Selective demand for a specific brand Selective demand for a specific brand Business professional advertising Business professional advertising
Business to business advertising Business to business advertising Professional advertising Professional advertising Trade advertising Trade advertising

Direct Marketing
A system of marketing by which organizations communicate A system of marketing by which organizations communicate directly with target customers to generate a response and or a directly with target customers to generate a response and or a ttransaction ransaction

Advantages of direct marketing Changes in society have made Changes consumers more receptive to direct consumers marketing Allows marketers to be very selective Allows and target specific segments of customers customers Messages can be customized for Messages specific customers specific Effectiveness easier to measure

Disadvantages of direct marketing Lack of customer receptivity and very Lack low response rates low Clutter too many messages Image problems particularly with Image telemarketing telemarketing

Interactive Internet Marketing
A form of marketing communication through interactive media which A form of marketing communication through interactive media which allow for a two way flow of information whereby users can participate allow for a two way flow of information whereby users can participate in and modify the content of the information they receive in real time in and modify the content of the information they receive in real time

Advantages of interactive Advantages internet marketing internet


Disadvantages of interactive internet marketing internet Internet is not yet a mass medium Internet Can be used for a variety of IMC Can as many consumers lack access as functions Messages can be tailored to specific Attention to Internet ads is very low Messages Great deal of clutter on the Internet interests and needs of customers interests Interactive nature of the Internet leads Audience measurement is a Interactive Audience to higher level of involvement problem on the Internet to problem Can provide large amounts of Can information to customers information

Interactive Internet Marketing Interactive Internet
Use of the Internet as an IMC Tool
As an advertising medium to inform educate As and persuade customers and As a direct sales tool As To obtain customer database information To communicate and interact with buyers To provide customer service and support To build and maintain customer relationships As a tool for implementing sales promotion As As a tool for implementing publicity public As relations programs relations

Sales Promotion
Marketing activities that provide extra value or incentives to the Marketing activities that provide extra value or incentives to the sales force distributors or ultimate consumers and can sales force distributors or ultimate consumers and can stimulate immediate sales stimulate immediate sales Consumer oriented Targeted to the ultimate Targeted users of a product or service service
Coupons Sampling Premiums Rebates Contests Sweepstakes POP materials

Trade oriented
Targeted toward marketing Targeted intermediaries such as retailers wholesalers or distributors distributors
Promotion allowances Merchandise allowances Price deals Sales contests Trade shows

Sales Promotion Uses Sales
Introduce new products Get existing customers to buy more Attract new customers Combat competition Maintain sales in off season Increase retail inventories Tie in advertising personal selling Enhance personal selling efforts

Publicity Publicity
Nonpersonal communication regarding an organization Nonpersonal communication regarding an organization product service or idea not directly paid for or run product service or idea not directly paid for or run under identified sponsorship under identified sponsorship

Advantages of publicity
Credibility Low cost although not totally free Often results in word of mouth

Disadvantages of publicity
Not always under control of Not organization organization

Public Relations Public
The management function which evaluates public attitudes The management function which evaluates public attitudes identifies the policies and procedures of an individual or identifies the policies and procedures of an individual or organization with the public interest and executes a program organization with the public interest and executes a program o action to earn public understanding and acceptance offaction to earn public understanding and acceptance

Tools used by Public Relations
Publicity Special publications Community activity participation Fund raising Special event sponsorship Public affairs activities

Personal Selling
Direct person to person communication whereby a seller Direct person to person communication whereby a seller attempts to assist and or persuade perspective buyers to to attempts to assist and or persuade perspective buyers to to purchase a product or service purchase a product or service
Advantages of personal selling Disadvantages of personal Direct contact between buyer and Disadvantages Direct seller allows for more flexibility seller selling selling Can tailor sales message to Can High costs per contact specific needs of customers specific Allows for more direct and Allows Expensive way to reach large Expensive immediate feedback immediate audiences audiences Sales efforts can be targeted to Sales specific markets and customers Difficult to have consistent Difficult who are best prospects who

and uniform message delivered to all customers delivered

Models That Help to Conceptualize the Buying Process the
Two very specific models that aid in Two understanding the buying process as well as in framing communication are are 1 A I D A Model 1 2 Hierarchy of effects model 2

A I D A MODEL MODEL
Attention awareness Interest Interest Desire Desire Action According to AIDA model A marketer should begin by winning attention or gaining awareness creating interest inspiring desire and precipitating the action for purchase in the prospects in order to enable its product to be adopted by the target public product

Hierarchy of effects model Hierarchy of effects
Awareness Knowledge Liking Preference

Conviction Purchase

2 Hierarchy of effects 2 model model
The buyers purchase decision is preceded The by such as conviction about the product benefits preference for the brand liking for the brand knowledge relating to the benefits and features of the product after an awareness of the product has been gained gained