Integrated Marketing Communication. What is Marketing.
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Transcript of Integrated Marketing Communication. What is Marketing.
Integrated Marketing CommunicationIntegrated Marketing Communication
What is Marketing
Marketing….. defined
• The Chartered Institute of Marketing define marketing as
'The management process responsible for identifying , anticipating and satisfying customer requirements profitably'
Marketing….. defined
• Philip Kotler defines marketing as
'satisfying needs and wants through an exchange process'
Marketing….. defined
• P.Tailor of suggests that
'Marketing is not only about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer
Marketing….. defined
• Several experts argue that
Marketing is the management process responsible for identifying, anticipating and satisfying customers’ requirements profitably
What is Marketing?• Marketing is all about –
- Identifying the need of the customer and developing product accordingly
- Spreading awareness /creation of need
- Building relationships with the customers
- Ensuring maximum customer satisfaction
Definition
• Marketing Communications Mix– The specific mix of advertising, personal
selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.
Indian Institute of Learning & Advanced DevelopmentNational Expressway– 8, 81-P Sector 34, Gurgaon – 122002, HR
Point ofPurchase
Publicity
PublicRelations
DirectMarketing
InteractiveMarketing
SpecialEvents
Packaging
SalesPromotion
DirectResponse
MediaAdver-tising
Traditional Approach to Marketing Comm.
MAJOR OBJECTIVES OF MARKETING COMMUNICATIONS
InformingInforming PersuadingPersuading
RemindingReminding
Defining Advertising• The non-personal communication of information usually
paid for & usually persuasive in nature, about products (goods & services) or ideas by identified sponsor through various media. -(Arenes 1996)
• Any paid form of non-personal communication about an organisation, product ,service, or idea from an identified sponsor.
- (Blech & Blech 1998)
Advantages• Reaches to a large number of audience at once
• It is repetitive in nature
• Creativity in ads can catch the eye of audiences
• Successful ads can help in building brands and increasing sales
Disadvantages• It is costly in nature
• It is one way communication
• If does not performs well then it can prove to be fatal
Types of Advertising
Print Advertising
• Advertising products via newspapers or magazines is a common practice.
• In addition to this, the print media also offers options like promotional brochures and fliers for advertising purposes.
• It is a paid form of advertising
Outdoor Advertising
• Outdoor advertising is also a very popular form of advertising, which makes use of several tools and techniques to attract the customers outdoors.
• The most common examples of outdoor advertising are billboards, kiosks, and also several events and tradeshows organized by the company.
Broadcast advertising
• Broadcast advertising is a very popular advertising medium that constitutes of several branches like television, radio or the Internet.
• This is a form of advertising that seeks to attract the masses at once
Covert Advertising
• Covert advertising is a unique kind of advertising in which a product or a particular brand is incorporated in some entertainment and media channels like movies, television shows or even sports.
• There is no commercial in the entertainment but the brand or the product is subtly( or sometimes evidently) showcased in the entertainment show.
Surrogate advertising
Public Service Advertising
• Public service advertising is a technique that makes use of advertising as an effective communication medium to convey socially relevant messaged about important matters and social welfare.
Celebrity Advertising
• Using celebrities for advertising involves signing up celebrities for advertising campaigns, which consist of all sorts of advertising including, television ads or even print advertisements.
Teaser Advertising
• Brief advertisement designed to tease the public by offering only bits of information without revealing either the sponsor of the ad or the product being advertised.
• Teaser ads are the frontrunners of an advertising campaign, and their purpose is to arouse curiosity and get attention for the campaign that follows.
Gimmick Advertising
• In this effects are not classified. Humour, exaggeration and other trick devices are employed to capture attention.
• It has been mostly found that the customers mostly relate to this form of advertising easily.
Shock advertisements
AIDA Model• Attention
• Interest
• Desire
• Action
Sales Promotion and Merchandising
Sales Promotion• Sales promotions are the short term initiatives from the
side of the companies to boost up their sales.
• Sales promotions can be directed at either the customer or distribution channel members (such as retailers).
• Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions.
Roles of Sales Promotion and Merchandising
1. Getting customers to try a new service or menu item.
2. Increasing off-peak sales.3. Increasing sales in periods that coincide
with major events, vacations, or special occasions.
4. Encouraging travel intermediaries to make an effort to sell services.
5. Helping sales representatives get business from prospects.
6. Facilitating intermediary sales.
What do we want the consumers and trade to do?
• Buy More • Buy Now
A sales promotion should be
• Temporary – if not the consumers would not believe it the next time
• Great Value Added – they should find reason to buy now and more
Types of Sales Promotions
• Coupon• Bonus Packs• Specialty container• Continuity program• Refund• Contest• Sampling• Price off
Trade oriented promotion
Direct Marketing• Direct marketing - Direct communications with
carefully targeted individual consumers to obtain a positive response and cultivate lasting or enduring customer relationships.
• Direct marketing usually is carried out through telephone (telemarketing and telesales), direct mail (brochures, catalogs, flyers), online computer shopping, and cable television infomercials and home shopping networks.
Advantages from customer’s perspective
• Customers enjoy the convenience of direct marketing as they do not have to battle traffic, find a parking space, or shop through stores.
• Its time saving for the customer as he gets all the necessary information available at his doorstep
• Direct marketing can also offer a wider selection of products while making comparison shopping easier with greater access to alternative or competing products.
Advantages from seller’s perspective
• It is a great tool in customer relationship building as it provides direct communication with customers.
• Direct marketing also can reduce costs while increasing the speed and efficiency of the operation.
Limitations• Has not proved to be efficient for numerous
organizations in the recent past
• Might dilute the brand image, if followed very aggressively
Direct Marketing through ‘Infomercials’
Personal Selling
• Personal selling is oral, face to face communication with potential buyers of a product with the intention of making a sale.
• The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale
Advantages• Personal selling is a face-to-face activity; customers therefore
obtain a relatively high degree of personal attention• The sales message can be customised to meet the needs of the
customer• The two-way nature of the sales process allows the sales team
to respond directly and promptly to customer questions and concerns
• Personal selling is a good way of getting across large amounts of technical or other complex product information
• The face-to-face sales meeting gives the sales force chance to demonstrate the product
• Frequent meetings between sales force and customer provide an opportunity to build good long-term relationships
Disadvantages• The main disadvantage of personal selling is
employing the correct sales force.
• Keeping a track on the activities of the sale officials is another problem for the organizations
What is public relations?
• Public relations is the management of communication between an organization and its publics
- Grunig & Hunt-Managing Public Relations
MarCom: MAIN OBJECTIVES
INFORMING•Product Launch phase•Explanations ofProduct’s features & benefits
REMAINDING•Product Sales Growth phase•Competitive positioning
PURSUADING•Convincing the customers•Applies to consumers’ memory(brand specific)
TARGETAUDIENCE
F I G U R E 4 . 1
The IMC Planning Process
CustomersCompetitors
Communication
BudgetTargetMarket
ProductPositioning
IMCComponents
Objectives
IMC Planning Process
Step 1: Current Context and Situation (Market Analysis)Customer Analysis
Current customersFormer customersPotential customersCompetitors’ customers
IMC Planning Process
Step 1: Current Context and Situation (Market Analysis)Competitor Analysis
Direct competitorsIndirect competitors Market leadersIdentify communication strategies and tactics of each
competitor through primary and secondary research. What do consumers and others say/think about the
competition?
IMC Planning Process
Step 1: Current Context and Situation (Market Analysis)Communication Analysis
Company Communication Current communications at all levels and in all channels
Industry Communication What types of strategies are used in the industry by
competing firms.
IMC Planning ProcessStep 2: Target Market and Positioning AnalysisSelection of target markets
Consumer marketsBusiness marketsDual markets
Product/service/brand PositioningCreated by factors such as product quality, prices,
distribution, image and market communicationPerception created by consumer regarding the company
and its products relative to the competition
4-52
• Product Attributes• Competitors • Use or application • Price/quality• Product user• Product class• Cultural symbol
F I G U R E 4 . 6
Product Positioning Strategies
IMC Planning Process
• Marketing Segmentation and Promotion– Segmentation helps to clarify marketing objectives
geared towards specific target markets – critical to address in the planning process.
– This allows for more precise communications budgeting.
– This also helps link the firm’s strategies and tactics to a specific target group.
Determining Viable Market Segments
• The segment is different from the population as a whole and distinct from other market segments.
• The segment is large enough to be financially viable to target with a separate marketing campaign. Examples?
• The individuals or businesses within the segment are homogeneous.
Segmentation Variables
• Demographics• Psychographics • Geographic• Benefits Sought• Usage• Geodemographic Segmentation
– Combines census demographic data with psychographic and geographic information
Marketing Communications Objectives
Communications Objectives
OrganizationContext
TargetMarkets
Positioning
Budget IMC Components
4-57
Develop brand awareness Increase category demand Change customer beliefs and attitudes Enhance purchase actions Encourage repeat purchases Build customer traffic Enhance firm image Increase market share Increase sales Reinforce purchase decisions
F I G U R E 4 . 7
Communication Objectives
IMC Planning Process
Step 4: Budget Planning and ConsiderationsBudgets based on
Communication objectives Overall marketing objectives
Budgets vary from consumer to B-to-B markets
Unrealistic assumption to assume direct relationship between advertising sales and market share
Creating a Communications Budget
Most common methods of creating a communications budget include:
• Percentage of sales• Competitive-Parity method• Objective and task method
IMC Planning Process
Step 5: IMC ComponentsTraditional advertisingTrade promotionsConsumer promotionsMedia spendingAlternative media spending
UNIT 2
What is Ad agency
Ad agencies are organizations which undertakes advertising assignments from business organizations which are not able to establish their separate Ad departments or can not devote time, money and effort on research activities
Ad agencies• Operation Research group• Market motivation studies• Marketing advertising Associates Pvt Ltd• Market analysis and product promoters• Advertising and marketing associates• Ulka advertising• Adroit advertising• Radius advertising• Thomas associates• Marketing and Industrial development association
Merits
• Expertise
• Conducts training
• Flexible
• Saves time and effort
Demerits
• High fees
• Chances of information leakage
• Might not do full justice with the projects in some cases
Advertising Copy
• Text of a print, radio, or television advertising message that aims at catching and holding the interest of the prospective buyer, and at persuading him or her to make a purchase all within a few short seconds.
• The headline of an advertising copy is said to be the most important part, and quite often a small change in its wording brings disproportionate results.
• Although a short advertising copy is more common in consumer-product advertising, according to the UK advertising guru David Ogilvy (1911-1999) people do read (and listen or attend to) lengthy advertisements if they are skillfully written.
• Most advertising copy is based on advertising/consumer research and is composed by professional copywriters hired by advertising agencies. Also called advertisement copy, ad copy, or just copy.
Marketing tactics in an AD copy• Credibility - Offering the visitor believability about the
product or brand.• Attention - Something that grabs the visitor’s attention
such as the keywords or keyword phrases.• Promise of Benefit - Whether it is offering information or
just a particular product, the ad copy generally has some promise of benefit for the visitor if he or she clicks on the link.
• Action - The goal of ad copy is almost always to get some kind of action or reaction out of the visitor. Whether it is to just visit a landing page, fill out a form, or actually purchase a product, the goal of most ad copy is the same, and involves some kind of action.
Writing an Ad copy• Start your copy with a striking opening statement
that will get the attention of your reader. This opening statement may be:
“Looking for bright and shinning corporate career of your child, **** offers attractive placements and overall development to your child" (from a Management school)
or“ Climb the ladders of the success in the Corporate world”
Writing an Ad copy
- Then, after your striking opening statement, you justa) Make a promiseb) Back it up with convincing proof andc) Ask for action
Writing an Ad copy
1. Make a promise
“ **** delivers the best knowledge and expertise to our students in several fields. We enable our students to be the best practitioners of their knowledge by giving them an international exposure and providing them with superior placements”
Writing an Ad copy
2. Back it up with convincing proof
For a B- School, a convincing proof is the placement records of its students, quality of faculties, their research works, infrastructure and other available features
Writing an Ad copy
3. Ask for action
“The last date of filling the registration forms is ****. Contact Person*****Number: ********* "
Advertising Research• Advertising research is a specialized form of
research that works to improve the effectiveness and efficiency of advertising.
• It can be studied from two perspectives
– Strategic research– Evaluative research
• Advertising research includes pre-testing (also known as copy testing) and post-testing of ads and/or campaigns—pre-testing is done before an ad airs to gauge how well it will perform and post-testing is done after an ad airs to determine the in-market impact of the ad or campaign on the consumer.
Pre testing or copy testing
• Pre-testing is also used to identify weak spots within an ad campaign, to more effectively edit 60-second ads to 30-second ads or 30’s to 15’s, to select images from the spot to use in an integrated campaign’s print ad, to pull out the key moments for use in ad tracking, and to identify branding moments.
Advertising Strategy Research
• Pre campaign tests1) Consumer Jury2) Rating points
3) Portfolio tests4) Physiological tests
Galvanic Skin responseEye movement testThe pupil reader (pupilometer)
Pre Testing
5) Concept and theme testingUtilitarian themeFocused themeInformative themeAchievement oriented themeNew product
Advertising Evaluation Research• Post campaign tests1)Inquiry Test2)Sales Test3)Recall test (aided and unaided)4)Recognition
Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion
Creates Needs andWants Among Consumers
Creates Needs andWants Among Consumers
Promotes Materialism,Insecurity and GreedPromotes Materialism,Insecurity and Greed
Is More PropagandaThan InformationIs More PropagandaThan Information
ProvidesInformationProvidesInformation
Creates Jobs and Helps New Firms Enter a Market
Creates Jobs and Helps New Firms Enter a Market
EncouragesA Higher StandardOf Living
EncouragesA Higher StandardOf Living
PromotesCompetition inThe Marketplace
PromotesCompetition inThe Marketplace
Is More PropagandaThan InformationIs More PropagandaThan Information
Creates Needs andWants unnecasarilyCreates Needs andWants unnecasarily
Creates Jobs and Helps New Firms Enter a Market
Creates Jobs and Helps New Firms Enter a Market
EncouragesA Higher StandardOf Living
EncouragesA Higher StandardOf Living
ProvidesInformationProvidesInformation
Advertising and Promotion: Two Viewpoints
Proponents Argue That Advertising and Promotion:Proponents Argue That Advertising and Promotion:
Critics Argue That Advertising and PromotionCritics Argue That Advertising and Promotion
PromotesCompetition inThe Marketplace
PromotesCompetition inThe Marketplace
Not All Issues Can Be RegulatedNot All Issues Can Be Regulated
A Marketing or Promotion Action May Be Legal but Not Considered Ethical
A Marketing or Promotion Action May Be Legal but Not Considered Ethical
Marketers Must Make Decisions Regarding the Appropriateness of Their Actions
Marketers Must Make Decisions Regarding the Appropriateness of Their Actions
A Marketing or Promotion Action May Be Legal but Not Considered Ethical
A Marketing or Promotion Action May Be Legal but Not Considered Ethical
Not All Issues Can Be RegulatedNot All Issues Can Be Regulated
Ethics in Advertising and Promotion
Ethics: Moral principles and values that govern the actions of and individual or group.Ethics: Moral principles and values that govern the actions of and individual or group.
General Mistrust of Advertising and Among Consumers. Many Do Not Perceive Ads As Honest or Believable
General Mistrust of Advertising and Among Consumers. Many Do Not Perceive Ads As Honest or Believable
General Mistrust of Advertising and Among Consumers. Many Do Not Perceive Ads As Honest or Believable
General Mistrust of Advertising and Among Consumers. Many Do Not Perceive Ads As Honest or Believable
Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium Offers
Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium Offers
Unethical And/or Deceptive Practices Involving Mail Order, Telemarketing and Other Forms of Direct Marketing
Unethical And/or Deceptive Practices Involving Mail Order, Telemarketing and Other Forms of Direct Marketing
Internet Scams and AbusesInternet Scams and Abuses
Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium Offers
Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium Offers
Unethical And/or Deceptive Practices Involving Mail Order, Telemarketing and Other Forms of Direct Marketing
Unethical And/or Deceptive Practices Involving Mail Order, Telemarketing and Other Forms of Direct Marketing
Advertising and Promotion as Untruthful or Deceptive
Objections to AdvertisingOf Certain Products
Objections to AdvertisingOf Certain Products
Objections to AdvertisingOf Certain Products
Objections to AdvertisingOf Certain Products
Use of SexualAppeals And/orNudity
Use of SexualAppeals And/orNudity
Use of Shock Ads
Use of Shock Ads
Advertising as Offensive or in Bad Taste
Many People Found Benetton’s “Death Row” Ad Campaign Offensive
Advertising and Children
Children's TV Watching BehaviorChildren's TV Watching Behavior
Children between ages 2-11 watch on average 21.5 hours of TV per week and may see 22,000 commercials per year
Children between ages 2-11 watch on average 21.5 hours of TV per week and may see 22,000 commercials per year
Television is an important source of information for children about products
Television is an important source of information for children about products
Does Advertising Make People Buy ThingsThey Don’t Need?
Does Advertising Make People Buy ThingsThey Don’t Need?
Does Advertising Encourage Materialism? Does Advertising Encourage Materialism?
Today, it has also become a medium to make the consumers aware about their rights
Today, it has also become a medium to make the consumers aware about their rights
Advertising helps in creating awareness amongst the masses
Advertising helps in creating awareness amongst the masses
Social and Cultural Consequences of Advertising
Advertising is justA Reflection of Society?Advertising is justA Reflection of Society?
Portrayal of Women to Reflect Their Changing Role in Society
Portrayal of Women to Reflect Their Changing Role in Society
Portrayal ofWomen AsSex Objects
Portrayal ofWomen AsSex Objects
Ethnic Stereotyping/Representation of Minorities
Ethnic Stereotyping/Representation of Minorities
Ethnic Stereotyping/Representation of Minorities
Ethnic Stereotyping/Representation of Minorities
Portrayal ofWomen AsSex Objects
Portrayal ofWomen AsSex Objects
Gender StereotypingGender StereotypingGender StereotypingGender Stereotyping
Portrayal of Women to Reflect Their Changing Role in Society
Portrayal of Women to Reflect Their Changing Role in Society
Advertising and Stereotyping
Portrayal ofThe ElderlyPortrayal ofThe Elderly
Criticisms of AdvertisingWith Regard to Stereotyping
Criticisms of AdvertisingWith Regard to Stereotyping
Advertising Budget
• This is the translation of advertising plan into money
• It includes a large body of information embracing product facts and competitive situation
Advertising budget process
• Collection of data and preparation of budget• Presentation and approval of budget• Budget execution• Control of budget
Methods
• Profit Maximization• Advertising as a percentage of sales• Return on investment method• Competitive parity method• Objective and task method