1. ENTREPRENEURSHIP DEVELOPMENT
Integrated Marketing Communications and Pricing Strategies
Chapter # 8

2. Integrated Marketing Communications and Pricing Strategies
It Pays to Advertise!
Integrated Marketing Communications and Pricing Strategies

3. Every business needs to construct, maintain and continually evolve an integrated marketing communications system. Such a system is comprised of advertising, publicity or public relations and personal selling with all parts focusing on the firm’s targeted customers and delivering a consistent and reinforcing message that extols the benefits of the firm’s products or services.
Entrepreneurs who fail to communicate with their customers run a serious risk of declining sales.

4. Entrepreneurs Entrepreneur need to communicate with customers.
They need to plan to assure that money spent on marketing is not wasted. A well developed plan does not guarantee success, but it does increase the likelihood of achieving positive results.

5. Entrepreneurs
Some think they can not afford advertising cost and they spend money on if anything remains after paying other bills – they treat it as leftover expense
But advertisement is not an expense, it is an INVESTMENT.
A mega budget is not a prerequisite for a great campaign, creativity is also needed.
Chapter example:
Writing on magazine
Radio Ads
Attending in seminars and fairs

6. Developing a Marketing Communications Plan
Step 1: Create specific, measurable objectives.
Step 2: Identify and analyze the target audience.
Step 3: Design an advertising message and choose the media for transmitting it.

7. A View of the Communication Process
Message
Media
Sender
Encoding
Decoding
Receiver
Noise
Response
Feedback
Sender’s Field
of Experience
Receiver’s Field

8. Communication Process
Sender is the party sending the message to another party.
E.g. Grameenphone.
Encoding is the process of putting thought into symbolic form. Add agency assembles words and illustrations into an advertisement that will convey the intended message. E.g. Bitopi and Grey Advertising Ltd., creating commercials for their clients.
Message is the set of language or symbols the sender transmits. E.g. Stay Close by GP.
Media is the communications channels through which the message moves from sender to receiver E.g. Television, Radio or Press.

9. Communication Process
Decoding is the process by which the receiver assigns meaning to the symbols. E.g. Individual customer’s perceptions and understanding.
Receiver is the party receiving the message sent by another party. E.g. Individual or business customers.
Response is the reaction of the receiver after being exposed to the message.
Feedback is the part of the receiver’s response communicated back to the sender.
Noise is the unplanned static or distortion during the communication process, which results in the receiver’s getting a different message than the one the sender sent.

10. USP You have to define your USP in your ads
Many companies does not define USP and tell customers to buy their product without offering any compelling reasons or USP.
You need a list of USP for IMC
What is USP?

11. Build Advertisements around a Unique Selling Proposition (USP)
USP - A key customer benefit of a product or service that answers the critical question that every customer asks: “What's in it for me?”
Primary benefits
Identify your product or service's USP by describing the primary benefit it offers customers and then list other secondary benefits it provides.
Build ads around USP

12. Build Advertisements around a Unique Selling Proposition (USP)
Most powerful USP are intangible or psychological benefits like safety, security, status.
Don’t overlook the intangible or psychological benefits your product or service offers.
Briefly list a few facts that support this USP.
Then, focus your ads to stress these top benefits and the facts supporting them!

13. The Operational Elements of a Marketing Communication Plan
Advertising is any sales presentation that is non-personal in nature and is paid for by an identified sponsor.
Major Advertisement tools:
Print Media
Broadcast media
Outdoor Media
Internet & Websites

14. Five Fundamentals of a Successful Advertisement.
It should attract attention.
It should emphasize a key
benefit of the product or
service to the customer.
It should communicate
the company’s Unique
Selling Proposition (USP).
It should prove the USP
and benefits to the customer
with facts, statistics, or
testimonials.
It should motivate customers
to take action immediately.

15. Advertising
Does your advertising deliver the message you want to the audience your are targeting? If not, try stating your strategy in six sentence.
Primary Purpose: What is the purpose of this ad?
Primary Benefit: What USP can you offer customers?
Secondary Benefits: What other key benefits support your USP?
Target Audience: At whom are you aiming the ad?
Audience Reaction: What response do you want from your target audience?
Company Personality: What image do you want to convey in your ads?

16. Advertising

17. Advertising

18. Publicity
Publicity or Public Reaction is an intentional process of gaining positive recognition about a business or its products or services by writing interesting and newsworthy articles about what the business is doing or plans to do.
Publicity is any commercial news covered by the media that is positive in nature, with the distinct possibility that it will increase recognition of the firm or its products. Publicity has great power to influence an interested reader because it is viewed as more objective than advertising.

19. Publicity

20. Tips for Stimulating Publicity
Write an article of interest to customers.
Sponsor an off-beat event.
Involve celebrities “on the cheap.”
Offer to be interviewed on TV and radio stations.
Publish a newsletter.
Speak to local organizations.
Sponsor a seminar.
Write news releases and fax or them to the media.
Serve on community and industry boards and committees.
Sponsor a community project or support a nonprofit organization.
Promote a cause.

21. Sponsorship and Special Events
Sponsoring special events generates publicity, attracts interest, and provides a lasting impression of a company in customers’ minds.
Small companies can create their own special events.

22. Tips for Sponsoring an Event
Don’t count on sponsorships for your entire advertising campaign.
Look for or create an event that is appropriate for your business.
Research the event and the organization hosting it before agreeing to become a sponsor.
Try to become the dominant (or ideally, the only) sponsor of the event.
Clarify the costs and the level of participation required for sponsorship up front.
Get involved; take an active role in the event.

23. Personal Selling
Personal Selling is the personal contact between salespeople and potential customers resulting from the sales efforts. Effective personal selling can give the small company a definite advantage over its larger competitors by creating a feeling of personal attention. Personal selling deals with the salesperson’s ability to match customer needs to the firm’s goods and services.

24. Personal Selling Top Salespeople…
Are enthusiastic and alert to new opportunities.
Are experts in the products and services they sell.
Concentrate on select accounts.
Plan thoroughly.
Use a direct approach.

25. Personal Selling Top Salespeople…
Work from the customer’s perspective.
Use past success stories.
Leave sales material with clients.
See themselves as problem solvers, not just vendors.
Measure their success not just by sales volume but by customer satisfaction.

26. Personal Selling Successful Personal Selling Requires a Selling System
Create a feeling of mutual trust and respect - Establish rapport (relationship) with prospect.
Interview the prospect - Let the prospect talk to determine the key criteria that influence the buying decision.
Demonstrate, explain, and show – Make clear the benefits of your product or service.

27. Personal Selling Successful Personal Selling Requires a Selling System
Validate - Prove the claims about your product or service.
Overcome objections- Listen for objections and try to overcome them.
Close - Stop talking and ask for the order.

28. Selecting Advertising Media: Key Questions
How large is my firm's trading area?
Who are my customers and what are their characteristics?
Which media are my target customers most likely to watch, listen to, or read?
What budget limitations do I face?

29. Selecting Advertising Media: Key Questions
Which media do my competitors use?
How important are repetition and continuity of my advertising message?
How does each medium compare with others in its audience, its reach, and its frequency?
What does the advertising medium cost?

30. Traditional Media Options
Word-of-Mouth
Newspapers
Radio
Television Ads
Magazines
Direct mail
World Wide Web
Outdoor ads
Transit advertising
Directories
Trade Shows
Specialty Advertising
Point-of-purchase ads

31. Newspapers Advantages Disadvantages Selected geographic coverage
Flexibility
Timeliness
Communication potential
Low cost
Prompt responses
Disadvantages
Wasted readership
Reproduction limitations
Lack of prominence
Declining readership
Short ad life

32. Radio Advantages Universal infiltration Market segmentation
Flexibility and timeliness
Friendliness
Disadvantages
Poor listening
Need for repetition
Limited message

33. Television Advantages Disadvantages Broad coverage Visual advantage
Flexibility
Design and production assistance
Disadvantages
Brief exposure
Clutter – Many ads can create confusion
Zapping – Customers switch channels
Fragmented audience
Costs

34. Creative Television Ads
Use emotion.
Consider production values.
Prove your product’s or service’s benefit.
Identify your company well and often.
Keep it simple.
Have one basic idea.
Make your point clear.
Make it unique.
Get viewers’ attention.
Involve the viewer.

35. Magazines Advantages Long life spans Multiple readership
Target marketing
Ad quality
Disadvantages
Cost
Long closing times
Lack of prominence (importance)

36. Direct Mail Advantages Selectivity Flexibility Disadvantages
Reader attention
Rapid feedback
Measurable results and testable strategies
Effectiveness
Disadvantages
Inaccurate mailing lists
Clutter
High relative costs
High throwaway rate

37. Creating Direct Mail Ads That Really Work
Promise benefits in the headline.
Use short “action” words.
Use lots of white space.
Use eye-catching words.
Forget grammatical rules.
Repeat the offer at least three times.
Offer proof of claims and endorsements.
Ask for the order.

38. Creating Direct Mail Ads That Really Work
Ask the reader questions in the copy.
Use high-quality paper and envelopes.
People usually open envelopes that resemble bills.
Address envelopes to a particular person.
Use stamps if possible.
Use a “P.S.” because recipients almost always read them.
Make the order form easy to fill out.

39. Advertising on the Web Banner ads Pop-up ads Cookies Full-page ads
Push technology ads
ads
Permission
Spam

40. Outdoor Advertising Advantages Disadvantages High exposure Broad reach
Flexibility
Cost efficiency
Disadvantages
Brief exposure
Limited ad recall
Legal restrictions
Lack of prominence

41. Transit Advertising Advantages Disadvantages Wide coverage
Repeat exposure
Low cost
Flexibility
Disadvantages
Generality
Limited appeal
Brief message

42. Directories Advantages Disadvantages Prime prospects Long life
Lack of flexibility
Ad clutter
Obsolescence

43. Preparing An Advertising Budget
Affordable Budget Method
Percentage-of-Sales Method
Competitive-Parity Method
Objective-and-Task Method

44. Final Price (What is the company's desired "image?")
What determines Price?
Price Ceiling ("What will the market bear?") ? ? ?
Final Price (What is the
company's desired "image?") ?
Acceptable
Price
Range ? ? ? ? ? ? ? ?
Price Floor ("What are the company's costs?")

45. Introducing A New Product
3 Goals:
Getting the product accepted
Maintaining market share as competition grows
Earning a profit
3 Basic Strategies:
Penetration
Skimming
Sliding-down-the-demand-curve

46. Pricing Techniques Odd Pricing Price Lining Leader Pricing
Geographical Pricing
Opportunistic Pricing
Discounts
Multiple Unit Pricing
Suggested Retail Prices

47. END OF CHAPTER # 8