Integrated Marketing Communication
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Transcript of Integrated Marketing Communication
Prof Ashok Kumar
Text books : Advertising and Promotion 7th Edn An Integrated Marketing Communication
perspective . By Blech .G and Blech M and Keyoor Purani
Strategic Communications, Planning for effective Public relation & Marketing .
5th Edn . By Dubuque, I.A Kendall / Hunt .
2.12.22.32.4
Factors contributing to importance of IMCParticipants in IMC management, IMC Planning ProcessStructure of Promotion Industry,
Unit 3 IMC – Marketing Environment & Understanding the Consumer Behavior
5
3.13.23.3
Understanding of Marketing EnvironmentSegmentation, Targeting and Positioning Understanding the consumer buying behavior
Unit 4 IMC- communication Process 4
4.14.24.3
Understanding IMC communication ProcessUnderstanding the Massage, Objective and budgeting for IMCResponse hierarchy models
Unit 5 IMC Strategies 4
5.15.2
Creative StrategyMedia Strategy
Unit 6 IMC Tool 9
6.16.26.36.46.56.66.7
Advertising Sales PromotionPublic Relations & Corporate AdvertisingInternet Advertising & E-commerceDirect Marketing Sponsorship & Point-of-purchase Personal Selling & Sales Management
Unit 7 IMC –International Perspective 2
Unit 8 Legal, Social & Ethical Aspects of IMC 2
Unit 9 Case Studies and Guest Session & Assignment
5
A management concept designed to make all aspects of marketing communications such as internal , external ( advertising, sales promotion, online media, social network , public relations, and direct marketing ) , horizontal and vertical work together as a unified force, rather than permitting each to work in isolation.
Basic premise : “The sum is always greater than their parts” – Provided they speak consistently with one voice all the time, every time .
Why integration? • Consistency, else confusion • Clarity, else confusion • Impact, since different Marcom tools have different strengths • The tools of IMC thus need to be integrated
IMC’s aim : PERSUADE WITH TARGETED AUDIENCES TO
INFLUENCE ATTITUDES AND BEHAVIOR
Remind
Persuade
Inform
Reinforce
MARKETING COMMUNICATIONS OBJECTIVES
• Increase Market Penetration• Develop Repeat Purchase Behavior• Establish Customer Relationships• Increase Rate of Consumption• Encourage Product Trial• Stimulate Impulse Buying• Stimulate Demand• Differentiate the Product• Establish a Product Image• Influence Sales Volume• Establish, Modify, or Reinforce Attitudes• Develop Sales Leads• Stimulate Interest• Establish Understanding• Build Support & Acceptance
The levels of integration such as Horizontal, Vertical, Internal, External and Data integration help to strengthen Integrated Communications.
Horizontal Integration occurs across the marketing mix and across business functions - for example, production, finance, distribution and communications should work together and be conscious that their decisions and actions send messages to customers. While different departments such as sales, direct mail and advertising can help each other through Data Integration. This requires a marketing information system which collects and shares relevant data across different departments
.
Vertical Integration means marketing and communications objectives must support the higher level corporate objectives and corporate missions.
Internal Integration requires internal marketing - keeping all staff informed and motivated about any new developments from new advertisements, to new corporate identities, new service standards, new strategic partners and so on.
External partners such as advertising and PR agencies, channel to work closely together to deliver a single seamless solution - a cohesive message - an integrated message.
Effective Marketing Communications
• Step 1: Identifying the target audience– Includes assessing the audience’s perceptions of
the company, product, and competitors’ company/product image
• Step 2: Cognitive, affective, and behavioral objectives may be set
• Step 3: AIDA model guides message design
According to Source Credibility Theory, acceptance of the message depends on: 'Expertness' and Trustworthiness' of the source.
Expertness is defined as the perceived ability of the source to make valid assertions.
Trustworthiness is defined as the perceived willingness of the source to make valid assertions.
Target Audience acceptance increases with the expertness of the source and the ability of the audience to evaluate the product.
Communication theory
Message Content
Expertness Trustworthiness
Expertness is defined as the perceived ability of the source to make valid assertions.
Trustworthiness is defined as the perceived willingness of the source to make valid assertions.
Acceptance by target audience
According to Source Attractiveness Theory, which is based on social psychological research, the acceptance of the message depends on :
1.Familiarity, Likeability & Similarity. Familiarity is the audience's knowledge of the source through exposure.
2.Likeability is the affection for the source's physical appearance and behavior .
3.Similarity is the resemblance between source and receiver.
This theory explains the message acceptance in two ways: Identification and Conditioning.
Identification is when the target audience begins to identify with the source's attractiveness, and hence tends to accept his opinions, beliefs, habits, attitudes etc.
Conditioning is when the attractiveness of the source is supposed to pass on to the brand after regular association of the source with the brand.
17
Brand communication strategy without
having Consumer insight is Like
winking at a pretty girl in dark.
“Ogilvy & Mather India” (O&M), India’s largest advertising agency
Value delivery
Consumer Decision
Persuasive communication models to shift the attitude
StagesAIDA
Model
Hierarchy-of-Effects Model
Cognitivestage
Affectivestage
Behaviorstage
Attention
Interest
Desire
Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
AIDA and Hierarchy of Effects to persuade the target audience
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
AIDA
Foote, Cone & Belding Grid for effective communication strategy
1Informative
Strategy
2AffectiveEmotional
appeal
3Habit
FormationConsumer
Conditioning
4Self- ego
Satisfaction
Thinking Feeling
Hig
hIn
volv
emen
tL
ow
Invo
lvem
ent
Best Print Ads January 2012
Media Agency’s organization structure
Agency Director
Key Account Management And services
Post production
Division
Finance and client billing
Media Planning & buying Division
Creative Planning division
Market survey and
Behavior research
KEY Account Management – Within an advertising agency the account manager or account executive is tasked with handling all major decisions related to a specific client. These responsibilities include locating and negotiating to acquire clients. Once the client has agreed to work with the agency, the account manager works closely with the client to develop an advertising strategy. For very large clients, such as large consumer products companies, an advertising agency may assign an account manager to work full-time with only one client and, possibly, with only one of the client’s product lines. For smaller accounts an account manager may simultaneously manage several different, though non-competing, accounts.
Creative Team –The principle role of account managers is to manage the overall advertising campaign for a client, which often includes delegating selective tasks to specialists. For large accounts one task account managers routinely delegate involves generating ideas, designing concepts and creating the final dvertisement, which generally becomes the responsibility of the agency’s creative team. An agency’s creative team consists of specialists in **GRAPHIC DESIGN SECTION**COPY WRITING SECTION**FILM PRODUCTION**AUDIO PRODUCTION**COMPUTER PROGRAMMING
Market Researchers – Advertising agencies employ market researchers who assess a client’s market situation, including understanding customers and competitors, and also are used to test creative ideas. For instance, in the early stages of an advertising campaign researchers may run focus group sessions with selected members of the client’s target market in order to get their reaction to several advertising concepts. Researchers are also used following the completion of an advertising campaign to measure whether the campaign reached its objectives. **CONSUMER RESEARCH**MARKET AUDIT**MARKET SURVEYS
Media Planners – Once an advertisement is created, it must be placed through an appropriate advertising media. Each advertising media, has its own unique methods for accepting advertisements, such as different advertising cost structures different requirements for accepting ad designs, different ways placements can be purchased (e.g., direct contact with media or through third-party seller), and different time schedules (i.e., when ad will be run). Understanding the nuances of different media is the role of a media planner, who looks for the best media match for a client and also negotiates the best deals.**MEDIA SURVEY*TARGET AUDIENCE STUDY**MEDIA PLANNING*MEDIA BUYING
IMC Plan
– An IMC plan outlines all the advertising or marketing communication activities.
– Usually done on an annual basis– Companies may develop a campaign plan,
which is more tightly focused on solving a particular marketing communication problem.
– A campaign plan typically includes a variety of messages carried in different media and sometimes targeted to different audiences.
Regulation of Promotion
Self-Regulation
• Association of Advertising council Central Regulation
• Ministry of IB
•Situation analysis •Marketing objectives •Marketing budget •Marketing strategies •Marketing tactics •Evaluation of performance
STEPS of IMC Plan
Message strategy
– Key Consumer Insight
– Big Idea
– Executions
Examples of Niche Agencies
• Media shops – Mindshare, Madison, Starcom
• Creative boutiques – Ray and Kesavan
• Event management agencies- Wizcraft
• Sales Promotion agencies• Direct marketing outfits – Lintas Direct
• PR houses – Genesis • Research suppliers – MARG, IMRB, Nielsen
Effects of communication
From Grunig & Hunt (1984)Message Knowledge AttitudeBehaviour
Domino Domino DominoDomino
Media evaluation system
• Influence or tone
• Message communicated
• Prominence
• Audience reached
• Consultant/spokesman quoted
• Type of article
Evaluation model
Source: Macnamara
OUTTAKE
OUTPUT
OUTCOMEChange
behaviour
Changeattitudes
Research methods
Quantitative surveys
Focus groups
Interviews
Response analysis
Media content analysis
Expert analysis
Feedback
Observations
Understand messages
Retain messages
Messages in the media
Message presentation
Message content
Media selection
Techniques for Setting Promotion Budgets
• All - You - Can - Afford
• Competitive Parity
• Percent of Sales
• Market Share
• Objective and Task
Elements of the Promotion Mix
Advertising
Ingredientsof the
PromotionMix
Ingredientsof the
PromotionMix
Public Relations
Personal Selling
Sales Promotion
Internet Promotion
When Elements of Promotion Are Most Useful
Advertising
Personalselling
Salespromotion
Publicrelations
Either not effective or inefficient
Very effective
Somewhat effective
Awareness Knowledge Liking Preference Conviction
Eff
ecti
ven
ess
Purchase
Factors that Affect the Promotion Mix
Push–and–Pull Strategies
Nature of the Product
Stage in the Product Life Cycle
Target Market Characteristics
Type of Buying Decision
Promotion budget
Creating a Promotion Plan
Choose Promotion Mix
Develop Promotion Budget
Set Promotion Objectives
Identify Target Market
Analyze the Marketplace
Criteria for Setting Promotion Objectives
Promotion objectives should:
be measurable, concrete
be based on sound research, with a well-defined target audience
be realistic
reinforce the overall marketing plan and relate to specific marketing objectives
Examples of Promotion Objectives
Objective: To RemindTo remind consumers that Peter Pan peanut butter is the creamiest peanut butter and is available at their nearest grocery and convenience stores
Objective: To Inform (Awareness)To increase the top-of-mind awareness level for Peter Pan peanut butter from 16 percent to 24 percent
Objective: To Persuade (Attitudinal)To increase the percentage of parents who feel that Peter Pan peanut butter is the best peanut butter for their children from22 percent to 35 percent
Effects of Advertising
Advertising Spending
Re
turn
on
Ad
ver
tis
ing
Ex
pe
nd
itu
res
Increasing efficiencyas ad budget becomessufficient
Diminishingreturnson additionalspending
Major Types of Advertising
Corporate Image
Advocacy Advertising
Typesof
Advertising
Typesof
AdvertisingPioneering
Competitive
Comparative
ProductAdvertising
InstitutionalAdvertising
Advertising Campaign Decision Process
Determine the campaign objectives.
Make creative decisions. Make media decisions.
Evaluate the campaign.
Common Advertising Appeals
ProfitProfit
HealthHealth
Love or RomanceLove or Romance
FearFear
AdmirationAdmiration
ConvenienceConvenience
Fun and PleasureFun and Pleasure
Vanity and EgotismVanity and Egotism
Save money, keep from losing moneySave money, keep from losing money
Body-conscious, healthyBody-conscious, healthy
Sell cosmetics and perfumesSell cosmetics and perfumes
Social embarrassment, growing old, losing health, power
Social embarrassment, growing old, losing health, power
Celebrity endorsement effectiveCelebrity endorsement effective
Fast-food and microwave productsFast-food and microwave products
Vacations, beer, amusement parksVacations, beer, amusement parks
Expensive, conspicuous itemsExpensive, conspicuous items
Executional Styles for Advertising
Mood or Image
Musical
Demon-stration
Scientific
Real/AnimatedProductSymbols
Fantasy
Lifestyle
Spokes-person/
Testimonial
Slice-of-Life
Humorous
CommonExecutional
Styles
CommonExecutional
Styles
Methods Used to Evaluate Advertising Campaigns
Pretests
Examples:
• Consumer jury tests
• Portfolio or unfinished rough tests
• Physiological tests
Post-testsExamples:
• Recognition tests
• Recall tests
• Attitude measures
• Audience size measurement
The Tools of Public Relations
MajorTools
Used ByPR
Agency
MajorTools
Used ByPR
Agency
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
Tools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Tools for Trade Sales Promotion
Trade Allowances
Push Money
Training
Free Merchandise
Store Demonstrations
Business Meetings, Conventions, Trade-Shows
SixCategories
ofTradeSales
Promotions
SixCategories
ofTradeSales
Promotions
Advantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
Advertising Versus Personal Selling
Personal Selling is more important if...
The product has a high value.It is a custom-made product.There are few customers.The product is technically complex.Customers are geographically concentrated.
Advertising/Sales Promotion is more important if...
The product has a low value.It is a standardized product.There are many customers.The product is simple to understand.Customers are geographically dispersed.
Differences Between Traditional & Relationship Selling
Traditional Personal Selling
Sell products (goods and services)
Focus on closing sales
Limited sales planning
Spend most contact time telling customers about product
Conduct “product-specific” needs assessment
“Lone-wolf” approach to the account
Proposals and presentations basedon pricing and product features
Sales follow-up focused on product delivery
Relationship Selling
Sell advice, assistance, and counsel
Focus on improving the customer’s bottom line
Considers sales planning as top priority
Spend most contact time attempting to build a problem-solving environment with the customer
Conduct discovery in the full scope of the customer’s operations
Team approach to the account
Proposals and presentations based on profit impact and strategic benefits to the customer
Sales follow-up is long term, focused on long-term relationship enhancement
Source: Robert M. Peterson, Patrick L. Shul, and George H. Lucas, Jr., “Consultative Selling: Walking the Walk in the New Selling Environment,” National Conference on Sales Management, Proceedings, March 1996.
Steps in the Selling Process
BasicSteps in
theSelling
Process
BasicSteps in
theSelling
Process
Generating Sales Leads
Qualifying Sales Leads
Making the Sales Approach
Making the Sales Presentation
Handling Objections
Closing the Sale
Following Up
Functions of Sales Management
Motivate Sales Force
Evaluate Sales Force
Manage Turnover
Train Sales Force
Develop Compen-
sation Plan
Structure Sales Force
Determine Sales Force
Size
Recruit Sales Force
Set Sales Objectives
Major Tasks of Sales
Management
Major Tasks of Sales
Management
Cost Determinants of Price
01 2 3 4 5 6 7 8 9 10
50
100
150
200
Do
llars
Quantity
MC
ATC
AVC
AFC
Break-Even Analysis
Quantity (units)
Pri
ce
($)
Fixed Costs
Total Revenue
Total Costs
Profits
Losses
Break Even
Steps in Setting the Right Price
$ $ $ $ $ $ $ $$ $ $ $ $ $ $ $
Fine-Tune Base Price
Choose Strategy
Estimate Demand, Costs, and Profits
Establish Pricing Goals
Right Price
Legal and Ethical Issues in Pricing
Unfair Trade Practices
Key Legaland Ethical
IssuesRelated to
Price
Key Legaland Ethical
IssuesRelated to
Price
Price Fixing
Price Discrimination
Predatory Pricing
CashDiscount
QuantityDiscount
FunctionalDiscount
Trade Loading
EDLP
SeasonalDiscounts
PromotionalAllowances
Rebates
Discounts, Allowances, and Rebates
PriceReductions
PriceReductions
Geographic Pricing
Basing-Point
Freight-Absorption
Zone Pricing
Uniform Delivered
FOB Origin
PricingTactics
Based onGeography
PricingTactics
Based onGeography
Special Pricing Tactics
Odd-EvenPricing
Two-PartPricing
BundlePricing
BaitPricing
PriceLining
FlexiblePricing
ProfessionalServices
LeaderPricing
SinglePrice
CommonSpecial Pricing
Tactics
CommonSpecial Pricing
Tactics