Integrated marketing communication & Pricing Strategies
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Transcript of Integrated marketing communication & Pricing Strategies
Assignment
Mr. Zillur Rahman
Assistant Professor
Department of Business Administration
Shahjalal University of Science & Technology
Reg no: Name
2009731033 Md. Noman Mahmud
2009731038 Nowrose Noor Sakib
2009731050 Mir Masudul Hasan
2009731053 Md. Itkan Uddin
Course Title: Entrepreneurship DevelopmentCourse Code: BAN 434
Submitted To:
Submitted By:
Integrated Marketing Communications (IMC)
A comprehensive marketing communications plan that takes into consideration all the communication disciplines being used and combines them to provide clarity, consistency, and maximum communications impact.
Five Key Features of IMC Start with the customer or prospect. Use any form of relevant contact or touch point. Go through cooperative actions. Build relationships. Affect behavior.
• Increase Market Penetration• Develop Repeat Purchase Behavior• Establish Customer Relationships• Increase Rate of Consumption• Stimulate Demand & Interest• Establish a Product Image• Influence Sales Volume• Develop Sales Leads• Establish Understanding• Build Support & Acceptance
Marketing Communications Objectives
The Basics of a Marketing Communication Plan
MarCom Plan
Define the purpose of the MarCom program
- Accomplish determinations- Stimulate responses - Trigger purchase decision- Build remarkable image - Positive promotion
Step 1
Developing a communication plan
- Analyze firm & target audience- Know the target market- Reach the people likely to buy
Step 2
The Operational Elements of a Marketing Communication Plan
Advertising1
Publicity2
Sponsorship & Special Events3
Personal Selling5
4 Promotion
Any sales presentation that is no-personal in nature and is paid for by an indentified sponsor.
Advertising Objectives Informative Advertising
• To communicate customer value and is used heavily when introducing a new product
Persuasive Advertising• To build brand value and sometimes compare with
competing brands Reminder Advertising
• Maintain customer relationships and keep customers thinking about the product
Advertising
Publicity- any commercial news covered by the media that boosts sales but for which a small company does not pay.
Helpful tactics to stimulate publicity of any business
Writing of article that will interest customers or potential customers
Sponsor an innovative event designed to attract attention
Involve celebrities as spokesperson to promote the products
Contact local TV and radio stations and offer to be interviewed
Publish a newsletter
Publicity
Sponsorship and Special Events
Tips which ensure the most promotional impact from its sponsorship:Look for an event that is appropriate for the businessResearch the event and hosting organization before agreementTry to become a dominant sponsor of the eventClarify the cost and the level of participationGet involved rather than totally rely on the hostsDo not count on sponsorship for entire advertising campaign
Attract a great deal of interest and provide a lasting impression in customer minds.An excellent way to reach the attention of target customers.
• Entrepreneurs have begun to explore new methods of placing their products or services before the targeted market in a subtle fashion which are mostly the combination of several communication forms.
• Communicating information between seller and potential buyer or others in the channel - to influence attitudes and behavior.
• Three major categories:– Personal Selling– Mass Selling (Advertising and Publicity)– Sales Promotion
Promotion
The personal contact between salesperson and potential customers resulting from sales effort.
Oral presentation in a conversation with one or more prospective purchasers for the purpose of making a sale
Represents the most popular promotional effort in terms of financial expenditures and number of people employed
Personal selling
Key Features of Personal Selling:
(1) Dyadic
(2) Flexible
(3) Focused (personalized)
(4) Often results directly in a sale
Benefits of Salesperson’s with Personal Selling
They are enthusiastic & alert to opportunities
Expertise in the products & services
Work from customer’s perspective
Use past success stories
Emphasize on customer satisfaction rather than sales volume
Consider themselves as problem solver
Selecting Advertising Media
Traditional Advertising Media
New Advertising
Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Banner ads Viral marketing E- mail Interactive video
Approaches to Determining the Promotional Budget
Percentage of sales A fixed amount of money per past or projected sales Probably the most widely used as it is simple
All available funds/All you can afford Budget what is left over for promotional expenditures New companies often put all available funds into
promotion to penetrate the market
Approaches to Determining the Promotional Budget (cont.)
Competitive parity/Follow the competition Adopt the average ratio for promotional expenses
to sales for the industry or main competitor; or the same absolute amount as a competitor
Objective and task Determine objectives Determine relationship between expenditures and
ability to achieve objective Set a budget that allows the achievement of these
goals
Methods of stretching a Small Advertising Budget
Cooperative Advertising- an arrangement in which a
manufacturing company shares the cost of advertising with a small retailer.
Shared Advertising-an arrangement in which a group of
similar business forms a syndicate to produce generic ads that allow the individual businesses to dub in local information.
PricingA method adopted by a firm to set its selling price.
It usually depends on the firm's average costs, and on the customer's perceived value of the product.
Survival Maximum current profit Maximum market share Maximum market skimming Product-quality leadership
Pricing objectives
Pricing Strategies & Methods for Retailers
Markup
-the difference between the cost of a product or service and its selling price. Markup can be expressed as a percentage of either cost or selling price.
Dollar markup = Retail price – Cost of merchandise
Dollar markup Retail price
Percentage of retail price markup =
Dollar markup Cost of unit
Percentage of cost markup =
Follow-the-Leader Pricing• Established prices followed by some retailers• This pricing policy is not healthy for business• This policy eradicates opportunities to build a
special price image• Make an indistinctive image in customers mind
Below Market Pricing• Create a discount image in the market• Firms hope to attract a sufficient level of
volume to offset the lower profit margin• Most of the time risky for small companies• Needs to eliminate most of the extra services for
price reduction
Pricing Concepts for Manufacturers
Direct Costing & Price Formulation
Absorption Costing – the traditional method of product costing in which all manufacturing and overhead costs are absorbed into the product's total cost.
Variable (direct) Costing – a method of product costing that includes in the product’s cost only those costs that vary directly with the quantity produced.