Integrated Marketing Communication

Integrated 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.

Traditional Approach to Marketing Comm.
Publicity Point of Purchase Sales Promotion Media Adver- tising Packaging Special Events Public Relations Direct Response Interactive Marketing Direct Marketing

MAJOR OBJECTIVES OF MARKETING COMMUNICATIONS
Informing Persuading Reminding

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
Getting customers to try a new service or menu item. Increasing off-peak sales. Increasing sales in periods that coincide with major events, vacations, or special occasions. Encouraging travel intermediaries to make an effort to sell services. Helping sales representatives get business from prospects. 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
1.Point-of-Purchase Displays 2.Short Term Allowances (Trade Allowances) 3.Sales Incentives or Push Money 4.Trade Shows 5.Training Programmes

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 of Product’s features & benefits REMAINDING Product Sales Growth phase Competitive positioning TARGET AUDIENCE PURSUADING Convincing the customers Applies to consumers’ memory (brand specific)

The IMC Planning Process
F I G U R E The IMC Planning Process Target Market Budget Customers Competitors Communication Objectives The IMC planning process begins with an analysis of the context, which involves the 3 C’s – customers, competitors, and communication. From the analysis of the 3 C’s, decisions about the target market and product positioning can be made. It is a joint decision because one affects the other. Next communication objectives are formulated. From the objectives come the budget and a selection of the appropriate IMC components. Again, it is a mutual decision because the budge impacts which IMC components can be used and the selection of the IMC components affects the budget. IMC Components Product Positioning

IMC Planning Process Step 1: Current Context and Situation (Market Analysis) Customer Analysis Current customers Former customers Potential customers Competitors’ customers

IMC Planning Process Step 1: Current Context and Situation (Market Analysis) Competitor Analysis Direct competitors Indirect competitors Market leaders Identify 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 Process Step 2: Target Market and Positioning Analysis
Selection of target markets Consumer markets Business markets Dual markets Product/service/brand Positioning Created by factors such as product quality, prices, distribution, image and market communication Perception created by consumer regarding the company and its products relative to the competition

Product Positioning Strategies
F I G U R E Product Positioning Strategies Product Attributes Competitors Use or application Price/quality Product user Product class Cultural symbol Effective positioning can be accomplished in seven different ways. Positioning by product attributes involves promoting a unique attribute that is superior or different from the competition. Using competitors to establish a position can be accomplished by contrasting the company’s brand against competing brands. Use or application involves creating a memorable set of uses for a product, or applications that allow it to stand out. Price/quality positioning can occur in two ways – by emphasizing value (low price) or by emphasizing high quality, with little mention of the higher price. The product user approach emphasizes who uses the product, such as educators for Apple computers. Positioning can be based on the product class, such as beverages, breakfast foods, or sports cars. The last approach is cultural symbol, which strives to connect the brand to some cultural symbol that is recognized and known by consumers.

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
Target Markets Organization Context Positioning Communications Objectives An effective IMC planning process requires quality communications objectives. These objectives tie the organization’s context, target markets, and positioning approaches to the selection of budget figures and IMC components. Communication objectives also guide account executives and advertising creatives in designing the actual advertising campaign. Budget IMC Components

Communication Objectives
F I G U R E Communication Objectives 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 This is a list of common communication objectives. Most IMC campaigns will emphasize one communication objective, but may accomplish other objectives in the process. There are some logical combinations, such as developing brand awareness and building customer traffic. Increase market share would fit with increase sales and encourage repeat purchase actions. The key is to match the objective to the medium and the message.

IMC Planning Process Step 4: Budget Planning and Considerations
Budgets 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 Traditional advertising Trade promotions
Step 5: IMC Components Traditional advertising Trade promotions Consumer promotions Media spending Alternative media spending The last decision (in conjunction with the budget) is the selection of IMC components. Traditional advertising cannot be ignored in favor of newer, nontraditional methods. Companies have to think about how much is needed for trade promotions and consumer promotions. Then there is the actual spending on media. Some companies will also have to consider business-to-business spending. It is not an easy task to decide on which components will be the most effective. Not only is the budget a factor, but also the objectives.

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 ( ) 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 just a) Make a promise b) Back it up with convincing proof and c) 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 tests 1) Consumer Jury 2) Rating points 3) Portfolio tests 4) Physiological tests Galvanic Skin response Eye movement test The pupil reader (pupilometer)

Pre Testing 5) Concept and theme testing Utilitarian theme Focused theme Informative theme Achievement oriented theme New product

Advertising Evaluation Research
Post campaign tests Inquiry Test Sales Test Recall test (aided and unaided) Recognition

Chapter Twenty Two Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion Evaluating the Social, Ethical, and Economic Aspects of Advertising and Promotion © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advertising and Promotion: Two Viewpoints
Proponents Argue That Advertising and Promotion: Provides Information Provides Information Encourages A Higher Standard Of Living Encourages A Higher Standard Of Living Creates Jobs and Helps New Firms Enter a Market Creates Jobs and Helps New Firms Enter a Market Promotes Competition in The Marketplace Promotes Competition in The Marketplace Relation to text This slide relates to material on pp of the text. Summary Overview This slide shows the two different views concerning the appropriateness and value of advertising. These two viewpoints and arguments for each are: Proponents argue that advertising and promotion: Provide information Encourages a higher standard of living Creates jobs and helps new firms enter a market Promotes competition in the marketplace Critics argue that advertising and promotion: Creates needs and wants among consumers Is more propaganda than information Promotes materialism, insecurity, and greed Use of this slide This slide can be used to introduce the two different viewpoints regarding the value of advertising and promotion and the arguments for each. Throughout the text, advertising and promotion has been discussed in the context of the business and marketing environment and from a perspective that assumes these activities are appropriate. Critics argue that there are negative social and economic effects of advertising and promotion. Critics Argue That Advertising and Promotion Creates Needs and Wants Among Consumers Creates Needs and Wants unnecasarily Is More Propaganda Than Information Is More Propaganda Than Information Promotes Materialism, Insecurity and Greed

Ethics in Advertising and Promotion
Ethics: Moral principles and values that govern the actions of and individual or group. Not All Issues Can Be Regulated A Marketing or Promotion Action May Be Legal but Not Considered Ethical Marketers Must Make Decisions Regarding the Appropriateness of Their Actions Not All Issues Can Be Regulated A Marketing or Promotion Action May Be Legal but Not Considered Ethical Relation to text This slide relates to material on pp of the text. Summary Overview This slide defines and summarizes ethical considerations in advertising and promotion. Ethics is defined as moral principles and values that govern the actions of an individual or group. Some ethical considerations in advertising and promotion are: Not all issues can be regulated A marketing or promotion action may be legal but not considered ethical Marketers must make decisions regarding the appropriateness of their actions Companies are scrutinized for their ethics Use of this slide This slide can be used to discuss the ethical considerations of advertising and promotion. While many laws and regulation determine what advertisers can and cannot do, not every issue is covered by a rule or law. Marketers must make decisions regarding appropriate and responsible actions on the basis of ethical considerations.

Advertising and Promotion as Untruthful or Deceptive
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 Internet Scams and Abuses 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 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 Relation to text This slide relates to material on pp of the text. Summary Overview One of the major complaints against advertising is that many ads are untruthful and deceptive. This slide summarizes some of the reasons for this viewpoint which include: General mistrust of advertising among consumers as many do not perceive ads as honest or believable Abuses involving sales promotion such as contests, sweepstakes, and premium offers Unethical and/or deceptive practices involving mail order, telemarketing, and other forms of direct marketing Internet scams and abuses Use of this slide This slide can be used to discuss some of the reasons why advertising and promotion are often criticized as being untruthful and deceptive. While most critics would probably agree that most marketers are not out to deceive consumers deliberately, they are still concerned that many of their advertising and promotion practices are not in the best interest of consumers.

Advertising as Offensive or in Bad Taste
Objections to Advertising Of Certain Products Objections to Advertising Of Certain Products Use of Sexual Appeals And/or Nudity Relation to text This slide relates to material on pp of the text. Summary Overview Another common complaint of advertising, particularly by consumers, is that ads are offensive and in bad taste. This slide shows some of the reasons why advertising is viewed this way. Objections to advertising of certain products – contraceptives, personal hygiene Use of sexual appeals and/or nudity – can be demeaning and offensive Use of shock ads – marketers use nudity, sexual suggestiveness, or other startling images to get consumers’ attention Use of this slide This slide can be used to discuss advertising as offensive or in bad taste. Many advertising experts agree that what underlies the increase in offensive or tasteless ads is the pressure on marketers and ad agencies to do whatever it takes to get an ad noticed. How far advertisers will go may depend on the public’s reaction. When consumers think the ads have gone too far, they are likely to pressure the advertisers to change their ads and the media to stop accepting them. Use of Shock Ads

Many People Found Benetton’s “Death Row” Ad Campaign Offensive
Relation to text This slide relates to the material on pp of the text. Summary Overview This slide shows one of the ads from the controversial “Death Row” campaign that was run by Benetton in Benetton has always been known for its controversial advertising and some magazines have refused to accept its ads. The company has defended its ads by arguing that it is trying to raise people’s awareness and consciousness regarding various social issues. However, the “Death Row” campaign was probably the most controversial of all the shock advertising used by company. Benetton argued that it was running the global campaign solely to spark debate on capital punishment. However, the ads outraged many people including victims’ advocates who accused Benetton of glamorizing murders while ignoring their crimes Use of this slide This slide can be used to show an example of advertising that has been very controversial and received a great deal of criticism. Benetton pushed the envelope too far with its “Death Row” campaign as the company received a tremendous amount of negative publicity for running the ads. Various victims’ right groups organized boycotts of the company’s stores. Sears canceled an exclusive contract to sell a line of Benetton clothes, calling the death row images “terribly insensitive.” In May 2000 Olivero Toscani, who had been overseen Benetton’s advertising since 1982, left the company as a result of the controversy created by the “Death Row” campaign.

Advertising and Children
Children'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 Television is an important source of information for children about products Relation to text This slide relates to material on pp of the text. Summary Overview One of the most controversial topics advertisers must deal with is the issue of advertising to children. This slide provides some statistics regarding children’s TV watching behavior. Children between the ages of 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 Use of this slide This slide can be used to introduce the issue of advertising to children. The extensive amount of time children spend watching TV makes it very likely that they will be exposed to a great deal of advertising. The next slide will discuss two perspectives on advertising to children.

Social and Cultural Consequences of Advertising
Does Advertising Make People Buy Things They Don’t Need? Advertising helps in creating awareness amongst the masses Does Advertising Encourage Materialism? Today, it has also become a medium to make the consumers aware about their rights Advertising is just A Reflection of Society? Relation to text This slide relates to material on pp of the text. Summary Overview This slide shows some of the social and cultural consequences of advertising. Some of the key questions regarding advertising from a social perspective are: Does advertising make people buy things they don’t need? Pro advertising Advertising provides essential information It is difficult to separate the desirable informational advertising from the undesirable Consumers are free to choose Critics of advertising Information advertising is acceptable, but persuasive advertising is unacceptable Persuasive advertising fosters discontent among consumers Does advertising encourage materialism? Materialism is an acceptable part of the Protestant ethic, which stresses hard work and individual effort Acquisition of material possessions has positive economic impact Advertisers seeks to create needs Surrounds consumers with images of the good life and suggest material possessions will lead to happiness Material possessions will lead to greater social acceptance Is advertising just a reflection of society? Advertising as a reflection of society vs. advertising shaping society Use of this slide This slide can be used to discuss the social and cultural consequences of advertising and arguments both for and against advertising.

Advertising and Stereotyping
Portrayal of Women to Reflect Their Changing Role in Society Portrayal of Women to Reflect Their Changing Role in Society Gender Stereotyping Gender Stereotyping Portrayal of Women As Sex Objects Portrayal of Women As Sex Objects Criticisms of Advertising With Regard to Stereotyping Relation to text This slide relates to material on pp of the text. Summary Overview This slide shows the various forms of stereotyping that advertising is often accused of creating and perpetuating. These include: Gender stereotyping Portrayal of women to reflect their changing role in society Portrayal of women as sex objects Ethnic stereotyping/representation of minorities Portrayal of the elderly Use of this slide This slide can be used to discuss stereotyping in advertising. Advertising is criticized for portraying various gender and ethnic groups in ways that are unflattering. Critics also argue advertising does not stay contemporary and reflect the changing roles of women. Despite the recognition that advertisers must be sensitive to the portrayal of specific types of people, ad agencies are finding it increasingly difficult not to offend some segment of the public. Portrayal of The Elderly Ethnic Stereotyping/ Representation of Minorities Ethnic Stereotyping/ Representation of Minorities

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

Integrated Marketing Communication

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