Sem 3rd Intimc)

8/11/2019 Sem 3rd Intimc)

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IntegratedMarketing

Communications


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The shifting marketingcommunications model:

The new digital media have given

birth to a new marketingcommunications model.

New model will consist of shifting mix

of both traditional mass media and awide array of exciting, new, more-targeted, more-personalised media.


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IMC Builds Brands


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Steps in developing EffectiveMarketing Communication

1) Identifying the target audience.

2) Determining the communication objectives.

3) Designing a message.

Message content(what to say).Message structure and format (how to say it)

4) Choosing media.Two broad types of communications channels

are: personal and non-personal.

5) Selecting the message source.

6) Collecting feedback


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Informative Advertising

Build Primary Demand

Persuasive Advertising

Build Selective Demand

Reinforcement Advt.

To convince current

purchasers that they made the

right choice

Reminder Advertising

Keeps Consumers Thinking

About a Product.

Mission: Advt. goals/ objectives

Advertising goal Specific Communication Task

Accomplished with a Specific TargetAudience

During a Specific Period of Time


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Money :Advertising Budget

Factors

Stage in the

Product Life Cycle

Market Share &

Consumer Base

Competition &

Clutter

Advertising

FrequencyProduct

Substitutability


7/50TKV

Percentage-of-SalesMethod

Setting Promotion

Budget at a Certain %

of Current or

Forecasted Sales

AffordableMethod

Setting Promotion

Budget at the Level the

Company Thinks They

Can Afford.

Competitive-ParityMethod

Setting Promotion

Budget to MatchCompetitors Outlay

Objective-and-TaskMethod

Setting Promotion

Budget by DefiningObjectives, Tasks &

Costs.

Setting Advertising Budgets


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AffordableMethod


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percent-of-sales approach

In the percent-of-sales approach,marketers multiply a firmspast sales,plus a factor for planned sales growth

or decline, by a standard percentagebased on what the organizationtraditionally spends on advertising and

what the industry averages. This approach is based on the flawed

assumption that sales create

advertising when the reverse is true.


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percent-of-sales approach

titi t hi


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competition-matching

approach(Competitive-

Parity Method) In the competition-matching

approach(Competitive-Parity Method), marketers

try to match their major competitorsappropriations

in terms of absolute dollars or to allocate the same

percentage of sales for advertising the competitors

allocate.


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competition-matching

approach( Competitive-Parity

Method)


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objective-and-task approach,

In the objective-and-task approach,marketers determine the objectivesthat a campaign is to achieve and then

attempt to list the tasks required toaccomplish them.

Once the tasks have been

determined, their costs are added toascertain the appropriation needed toaccomplish the objectives.


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Message :Developing theCampaign Message generation & evaluation Creative development & execution

Legal & social issues


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Media

Media selection is finding the mostcost-effective media to deliver thedesired number and type of exposures

to the target audience.


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RadioAdvantages: Mass use; high geographic and demographicselectivity; low cost

Limitations: Audio only; fleeting exposure; lower attention;nonstandardized rates; fragmented audiences

MagazinesAdvantages: High geographic and demographic selectivity;

credibility and prestige; high-quality reproduction;long life; good pass-along readership

Limitations: Long ad purchase lead time; waste circulation;

no guarantee of position

OutdoorAdvantages: Flexibility; high repeat exposure; low cost;

low message competition

Limitations: Little audience selectivity; creative limitations

Profiles of Major Media Types


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Advertising strategy:

The strategy by which the companyaccomplishes its advertisingobjectives.

It consists of two major elements:Creating advertising messages andselecting advertising media.


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Major Types of Advt. appeals

Fear Humor

Sex

Music

Rationality

Emotions

scarcity


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Fear

It has been used to sell a number ofproducts including life insurance.

Shampoo and mouthwash ads invoke

fears of dandruff and bad breath. Fear increases both the viewers

interest in an advt. and the

persuasiveness of the advt. Many individuals remember ads with

fear appeal.


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Humor

Because of clutter, capturingviewersattention has become difficult.

Humor can be effective at both getting

attention and keeping it. Humor causes consumers to 1.)watch,

2.)Laugh and most importantly 3.)remember

Advertisers must be careful to avoidletting the humor overpower the advt.

Humor is often based in onesculture.


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Celebrity endorsement

Th d f l b iti d i b d


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The crescendo of celebrities endorsing brandshas been steadily increasing over the pastyears. Marketers overtly acknowledge the

power of celebrities in influencing consumer-purchasing decisions.

It is a ubiquitously accepted fact that celebrity

endorsement can bestow special attributesupon a product that it may have lackedotherwise.

But everything is not hunky-dory; celebrities areafter all mere mortals made of flesh and bloodlike us. If a celebrity can aggrandize the merits

of a brand, he or she can also exacerbate the

Th l b it l i th t li it d


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The celebritys role is the most explicit and

profound in incarnat ing userassociat ionsamong the above-mentioned

points. To comprehend this, let us analyze the

multiplier effect formula for a successful brand:

S=P* D*AV--the multiplier effectWhere S is a successful brand,P is an effective product.

D is Distinctive Identityand AV is Added values.

Th l f th l b it i t i fi d


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The realm of the celebritys impact is confined

to bestow a distinctive identity and provide AVto the brand; the celebrity does not have the

power to improve or debilitate the efficiencyand features of the core product. Thus, weare gradually approaching an evident

proposition claiming, The health of a brand can definitely be

improved up to some extent by celebrity

endorsement. But one has to remember thatendorsing a celebrity is a means to an end

and not an end in itself.

A i t l d l b it t


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An appropriately used celebrity can prove tobe a massively powerful tool that magnifiesthe effects of a campaign. But the aura of

cautiousness should always be there. The fact to be emphasised is that celebrities

alone do not guarantee success, as

consumers nowadays understand advertising.They know what advertising is and how itworks. People realize that celebrities are

being paid a lot of money for endorsementsand this knowledge makes them cynical aboutcelebrity endorsements.

I t ti h d th Sh h kh S t


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In recent times, we had the Shahrukh-Santrocampaign with the objective of mitigating theimpediment that an unknown Korean brand

faced in the Indian market. The objective was to garner faster brand

recognition, association and emotional unity

with the target group. Star power in India can be gauged by the

successful endorsement done by Shahrukh for

three honchos- Pepsi, Clinic All Clear andSantro.

In the Indian context we can state that celebrity


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In the Indian context, we can state that celebrityendorsements can aggrandize the overall brand.

A standard example here is Coke, which, till recently,

didn't use stars at all internationally. In fact, India wasa first for them. The result was a ubiquitouslyappealing Aamir cheekily stating Thanda matlabCoca Cola.

The recall value for Nakshatra advertising is only dueto the sensuous Aishwarya and later Katrina.

The Parker pen brand, which by itself

commands equity, used Amitabh Bachchan torevitalize the brand in India.

According to Pooja Jain, Director, Luxor Writing

Instruments Ltd (LWIL), post Bachchan, Parker'ssales have increased b about 30 er cent.

More specific applications


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More specific applicationsinclude:

Boosting employee moral andsmoothing labour relations.

Helping newly deregulated industries

ease consumer uncertainty andanswer investor questions.

Helping diversified companies

establish an identity for the parentfirm rather than relying solely on brandnames.


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Major types of CorporateAdvt. Image Advertising It is devoted to

promoting the organisations overallimage.

Advocacy Advertising It addressessocial, business, or environmentalissues.

Cause-related advertising Herecompanies link with charities or NGOsas contributing sponsors.


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Sales Promotion


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Sales promotion includes toolsfor Consumer promotion Trade promotion

Business & sales-force promotion


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Why the increase in SalesPromotion? Growing retailer power Declining brand loyalty Increased promotional sensitivity Brand proliferation Fragmentation of consumer market Short-term focus Competitors used it frequently

Has become more accepted by topmanagement as an effective sales tool.


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Advt Vs Sales promotion

Advt. is more effective in deepeningbrand loyalty

Small-share competitors use sales

promotion: Reasons:1.) they cantafford to match the big-players largeadvt. budgets.2.)nor can they obtainshelf-space without offering trade

allowances or stimulate consumer trialwithout offering incentives.

Sales promotion seems to be more

effective when combined with advt.


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Major Decisions in salespromotions1. Establishing objectives.2. Selecting tools.

3. Developing the program.

4. Pretesting, Implementing, controllingand evaluating the program.


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Example of developing theprogram Canon-Nengajo- The Japanese may

not send many Christmas or birthdaycards, but they do send a lot of special

postcards called nengajo that aredelivered on New Year's Day.


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With the popularity of e-mail and mobile mail, the Japanesepractice of sending Nengajo New Year cards had begun todecline, especially among younger consumers. To reverse thistrend, Canon launched the "Enjoy Photo" promotion, whichtargeted young women and focused on the joy and happiness of

printing and sending photos. Three sisters served as "navigators"to guide users through the process. At a product launch partythey showed their own digital camera photos, and ads and aCanon catalog portrayed them enjoying Nengajo printing in theirdaily lives. The ads contained a URL to encourage people tocheck out a Web site with more detail and featured mini dramamovies. Canon printers also appeared in Bals Tokyo, one of themost popular home interior shops among youth in Tokyo, andOdaiba, a popular destination in Tokyo. Canon also created tieswith partner hotels at major theme parks in Tokyo. Thesecombined efforts led to an explosion of buzz, press, and Web

traffic and a sharp increase in sales.


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PR


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PR

Building good relations with the companysvarious publics by obtaining favourablepublicity, building up a good corporateimage, and handling or heading offunfavourable rumors, stories and events.

Functions:

Press relations

Product publicity Lobbying

Investor relations

Development


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Egs.

I New York!

Got Milk?

NECC


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Personal Selling

everyone lives by selling somethingR. L . Stevenson

Personal selling Personal

presentation by the firms sales forcefor the purpose of making sales andbuilding customer relationships.


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Nature of Personal selling

One of the oldest professions of theworld.

One of the oldest examples of

personal selling is that of lifeinsurance.

Hypercompetitive markets.

Today sales is about buildingcustomer relationships through a focus on differentiation and linking

those differences to the customers


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Steps in the selling process

1. Prospecting & Qualifying2. Preapproach

3. Approach

4. Presentation and Demonstration

5. Handling objections

6. Closing

7. Follow-up


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When might you decide to usePersonal Selling?

Tight budget (straight commission)

Concentrated Market Few buyers High value product

Product must be customized.

Personal contact is important. Must demonstrate product.


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Direct Marketing


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Direct Marketing

Consists of connecting directly withcarefully targeted individualconsumers to obtain an immediate

response and cultivate lastingcustomer relationships.

Some companies use it as a

supplementary channel. Eg.Lexus


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Amazon.com

Annual sales- $15 mn (1996) to $15bn(2010).

More than 72 mn active users.

The co. is relentlessly customerdriven.

the thing that drives everything is

creating genuine value for customers-Jeff Bezos

In Japan,

It wants to deliver a special


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Website greets customer with theirvery own personalized home pagesand the sitess Recommmended for

youfeature First to use collaborativefiltering.

Visitors receive a unique blend of

benefits. Its discovery factor makes the

marketing experience really special.


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Advt.

By law, co.s must avoid false ordeceptive advt.

Advertisers must not make false

claims. Under Indian law, advt for alcohol is

not allowed.

In India, we have CPA of 1986. In India, we also have ASCI.

Sellers must avoid bait-and-switch

that attracts buyer under false


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Bait-and-switchis a form of fraud,most commonly used in retailsalesbut also applicable to other

contexts. First, customers are "baited

by advertisingfor a product or service

at a low price; second, the customers discover that

the advertised good is not availableand are "switched" to a costlier
http://en.wikipedia.org/wiki/Fraudhttp://en.wikipedia.org/wiki/Retail_saleshttp://en.wikipedia.org/wiki/Retail_saleshttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Retail_saleshttp://en.wikipedia.org/wiki/Retail_saleshttp://en.wikipedia.org/wiki/Fraud

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