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Marketing Communication

Ravi Shanker
Marketing: A set of activities whereby an
organization creates the transfer of Value
(exchange) between themselves & their
customers

Communication: A process whereby


commonness of thought is established &
meaning is shared between two parties

Marketing communication: A collection of all


elements in an organization's Marketing Mix
that facilitates exchanges by establishing
shared meaning with the organization's
customers
Role of Marketing Communication

◆ Inform
◆ Educate
◆ Persuade
◆ Remind and motivate
action
◆ Maintain relationships
PRODUCT
CHOICES PHY. &
NEED TO MAINTAIN EMOTIONAL
MARKET SHARE DISTANCE

TO REMAIN
COMPETITIVE
WHY?
DURING PERIODS PROMOTE INTENSE COP.
OF LOW
DEMAND

BASIC PHYSIOLOGICAL
HIGH COST OF
NEED SATISFACTION TO
PROMOTION
DESIRES
SIX “M”s OF MARKETING

Merchandise: what are the important benefits of


the products/services to be sold.
Markets: who are the people to be reached.
Motives: why would these people buy or fail to buy.
Message: what are the key ideas, information and
attitudes. To be conveyed, to move the prospect
closer to the ultimate aim of a sale.
Media: how can prospects be reached.
Measurement: what method is proposed to measure
accomplishment in getting the intended message
across to the intended audience.
THREE MODES OF MARKETING

There are three ways in which


Marketers seek to manage the
demand of their offers…
PE
It is

RS
The means used
intended

UA
to trigger
to

S
consumer

IV
stimulate
action by offering

EC
EN L
Consumer

TS
extra substantive

OM
wants.
UC ION
benefits beyond

MU
the basic offer. EM
IND OT

NI
OM

CA
PR

TIO
BASIC OFFER

N
A company’s product or service that is
designed to meet the needs of the target
BASIC OFFER

•PRODUCT ITSELF TERMS OF SALE


•PRICE
•DISCOUNT
•CREDIT
•WARRANTIES
PERSUASIVE COMMUNICATION

- IMPERSONAL VERBAL MESSAGES


(ADVERTISING PUBLICITY)
- PERSONAL VERBAL MESSAGES
(PERSONAL SELLING,
WORD-OF-MOUTH)
- NON VERBAL MESSAGES
(PACKAGING, BRAND NAME)
- DIRECT MAIL
PROMOTIONAL INDUCEMENTS

EXTRA SUBSTANTIVE BENEFITS-


BEYOND THE BENEFITS OF BASIC OFFE
- CHARACTER OF THE BASIC OFFER
(e.g. Free Sample, Trial Use)
-PRICE RELATED INDUCEMENTS
(Discount, Money-off-Coupons)
- INDUCEMENTS THAT ARE
EXTRA TO THE BASIC OFFER
(Premiums, Contests)
CONFERENCES

SPONSORSHIPS PERSONAL SELLING

LITERATURE
DM INTEGRATED
COMMUNICATION
PACKAGE MPR
PACKAGING
CONTESTS

SPs
ADVERTISING
DIFFERENCES IN ADVERTISING & PERSONAL
SELLING
PERSONAL ADVERTISING
SELLING

DIRECTED AT INDIVIDUALS MASS AUDI.

CONTENT DIRECT/ INDIRECT/


PERSONALISED IM PERSONAL

WORKING INDEPTH BREADTH

TRAFFIC OF TWO WAY ONE WAY


INFO.
FEEDBACK DIRECT STRUCTURED BOT
DELAYED.
ADAPTABILITY HIGH LOW
STEPS OF THE
CAMPAIGN PLANNING
PROCESS
I. WHOM ARE WE TALKING TO?
THE TARGET AUDIENCE

POTENTIAL BUYER, CURRENT USER


INFLUENCER, DECIDER

INDIVIDUALS, GROUPS, SPECIFIC PUBLICS OR…

THEIR PERCEPTIONS ABOUT: CO, PRODUCT,


BRAND PREFERENCES, MEDIA HABITS

WHERE ARE WE?

WHY WE ARE THERE?


II WHAT IS THE DESIRED RESPONSE?

ULTIMATE (OF COURSE) PURCHASE

IDENTIFY BUYER-READINESS
STAGE & WHERE THE TA IS
AT A PARTICULAR TIME

COGNITIVE KNOW

AFFECTIVE FEEL

BEHAVIOURAL ACT
RESPONSE HIERARCHY
ACTION

CONVICTION

PREFERENCE

LIKING

KNOWLEDGE

AWARE

UNAWARE
III. WHAT TO SAY?

…TO PRODUCE THE DESIRED


RESPONSE FROM T.A.

OBJECTIVES OF THE CAMPAIGN


V/S MESSAGECONTENTS
IV. HOW TO SAY. IT LOGICALLY?

STRUCTURING MESSAGE BY
FORMULATING BENEFITS,
MOTIVATORS, REASONS

IS IT THE BIG IDEA

DOES IT GIVE THE RIGHT STROKES


…..THE RIGHT APPEAL
APPEALS: THE 4 TYPES

Rational Emotional Sensory Moral


Quality Positive Taste (Social
Economy Love, Touch Causes)
Value Humor Cleanliness
Features Pride, Women
Joy Equality
Negative
Envy, Fear
Gilt, Shame
. HOW TO SAY SYMBOLICALLY?

N-NOTICED-UN-SOLD

OOD MESSAGE STRATEGY


/S POOR FORMAT
DOESN’T STAND OUT OF THE CLUTTER,
DOESN’T ATTRACT ATTENTION-LEAST
MPACTFUL)

RINT: HEADLINE, COPY, ILLUSTRATION, COLOU

ADIO: WORDS, MUSIC, VOCAL QUALITY,


VOCALIZATION
V : ALL
WHAT MEDIA SHOULD BE USED?
MEDIA TYPES

PERSONAL NON-PERSONAL
INFLUENCE CHANNEL INFLUENCE CHANNEL
WOM, P.I. CHANNEL * MASS MEDIA
SOCIAL CHANNEL * PR-able EVENTS
EXPERT CHANNEL
ADVOCATE CHANNEL
VI. WHAT MEDIA SHOULD BE USED?
SALES PROMOTIONS
Sp comprises a range of tactical
marketing techniques designed
within a strategic marketing
framework to add value to a
product or service in order to
achieve specific sales & marketing
objectives.
1) TACTICAL/ TEMPORARY
2) ADDITIONAL
3) SPECIFIC MARKETING OBJECTIVES
Sales Promotion is the act of
influencing perception & behavior
to build market share and sales
while reinforcing brand image.

Council Of Sales Promotion


Agencies (CSPA), Chicago,
1992.
COMPANY

SALES

COMPETITION CONSUMER
SP : WHAT IT CAN
It can stimulate sales force enthusiasm for a
new, improved or mature product.
It can create trade awareness of new products.
It can help to gain distribution and build
inventories.
It can create more shelf space.
It can reinforce advertising and elicit trial
purchase.
It can hold current users by encouraging
purchase habit building.
It can preempt competition by loading
consumers.
SP : WHAT IT CAN’T
SP incentives cannot by themselves give the
consumer any compelling long-term reason
to continue purchasing a ‘promoted’ brand.
Sp cannot permanently stop an established
product's declining sales trend.
Sp cannot change the basic non-acceptance of
a product which has been proved undesired
earlier.
Sp cannot create an image for a brand.
REASONS FOR GROWTH
◆ ACCOUNTABLE
◆ HELPS IN PRODUCT INTRODUCTION
◆ ORG. STR - INTRODUCTION OF BRAND
MANAGEMENT FUNCTION
◆ COMPETITIVE CLUTTER
◆ MEDIA COST
◆ RECESSION & INFLATION
◆ RETAIL POWER & PRESSURES
◆ CONSUMER RESPONSE
OBJECTIVES OF SP
A. CONSUMER ORIENTED
◆ OBTAIN TRAIL & REPURCHASE
◆ INCREASING CONSUMPTIONS
OF AN ESTABLISHED BRAND
◆ DEFENDING CURRENT
CUSTOMERS
◆ ENHANCING ADVG & MKTG.
EFFORT
SALES
CONSUMER
PROMOTION
Reduced Price Pack
On Pack Premium
Near Pack Premium
Re-use Pack
Bonus Pack
Home Sample
Cross Sample
Home Coupons
Mag/Press Coupons
Free Premium
Refund Offer
Skill Comp…….
B. TRADE ORIENTED
◆ Obtain distribution & support for
new products
◆ Maintain trade support for
established brands
◆ Encourage retailers to display &
promote established brands
◆ Build retail inventories
DEALER/ TRADE

Sales Contests
Stock Display Contests
Discounts
Allowances
Gifts
Conferences
C. SALES FORCE ORIENTED

◆ Motivate Sales Force


◆ Assist Sales Force
SALES FORCE
Samples & Gifts
Sales Incentives
Bonus
Tel. / Ent All.
Memberships
Contests
Awards
Conferences
D. MISC

◆ To counter competition
◆ Build in store traffic
SALES PROMOTION: KEY SUCCESS
FACTORS

OBJECTIVES Consumer Pro. Trade


Pro.
1. Short term - Dual Pro. To -Trade
volume obj. trade & Coms. support
- Sales Force /trade -offer high
support level of
incentives
-short Pro.
period
SALES PROMOTION KEY SUCCESS
FACTORS

Objectives Consumer Pro.


Trade Pro.
2. Long term -Sales Force -Dual Pro.
Mkt. Share Support
-Trade
obj.
support
SALES PROMOTION KEY SUCCESS
FACTORS
Objectives Consumer Pro.
Trade Pro.

3.Building -Avoid Comp. -Absence of


Trade Comp. Pro.
-Sales Force
Inventory
Support -Trade
obj.
support
-High level of
Incentives -Shorter
pro. Period.
SALES PROMOTION KEY SUCCESS
FACTORS
Objectives Consumer Pro.
Trade Pro.

4.Increase -Sales Force Dual Pro.


consumer Support for
trial obj.
-Long period
-High level
Incentives
SALES PROMOTION KEY SUCCESS
FACTORS
Objectives Consumer Pro.
Trade Pro.

5. Load the -S.F. & Trade


consumer support
obj.
-High
Promotion
cost
-Special Advg.
SP PLANNING PROCESS:
1. ENVIRONMENTAL 2. INTERNAL
ANALYSIS ANALYSIS

SITUATION ESTABLISH ROLE OF SP


ANALYSIS IN MARKETING MIX

DETERMINE DETERMINE PROMOTION


PROBLEMS PHILOSOPHY OF BRAND
& OPPORTUNITIES
3. ESTABLISH OBJECTIVES

4. SET BUDGETS

5. DEVELOP STRATEGY

6. DEVISE SCHEDULE

7.IMPLEMENT

8.FOLLOW-UP & EVALUATE RESULTS


SP Design
The following must be addressed in
sequence in the design of any promotion.

TYPE: What Type Of Promotion Should Be


Used To Address The Objective?

SCOPE: To which pack size or models the


promotion apply (product scope) and in which
geographical markets should the promotion be
offered (market scope)
SP Design (Contd.)
TACTICS: When should the promotion be
offered, when should it be announced, and
how long should it last (timing)?
What explicit or implicit discount should the
promotion include. Straight price cut v/s
added value
TACTICS: What terms of sale should be
attached to the promotion. (applicable on
trade allowances) can be extended to
consumer promotions: e.g.:
- Coupon expiration dates
SP Design (Contd.)

TIMING It relates to four issues:


When to promote
How far in advance to announce
How long to promote
How often to promote
DIRECT
MARKETING
MARKETIN
G

INDIRECT DIRECT MARKETING


MARKETING

DIRECT DIRECT RESPONSE


SELLING ADVERTISING

DIRECT MAIL OTHER MEDIA


PRESS,T.V. ETC
THE “DIRECT” CONCEPTS IN
MARKETING
Direct Response Advertising:
It involves the use of any of several
media to transmit messages that
encourage buyers to purchase directly
from the advertiser
Direct mail:
It is the most important direct
advertising medium.
The other medium for direct response
advertising are tv, magazine etc.
Direct Marketing: Def. & Scope
The total of activities by which products
or services are offered to market
segments, by way of one or more media,
to solicit a direct response from a present
or prospective customer
DM is not specifically used to build
an image, atmosphere or position for
a product, instead it uses image,
atmosphere or position as tools for
generating a response.
DM is an interactive system of marketing
which uses one or more advertising media to
effect a measurable response, and/or
transaction at any location.

Dm involves interactive marketing

Dm is not restricted to a single medium and


profitability of any programme is maximized
when each medium is effectively used to the
fullest extent

Dm allows greater measurability of response

Dm takes place at a variety of locations


1. Efficiency: Ability to determine results
2. Targeting: Highly selective effort and
minimum waste on unlikely prospects
3. Personalized: As against impersonal
message
4. Impactful: By maintaining individual records
to develop personalized and customized
5.Com.
Expand the market: by overcoming
physical limitations which retail & face-to-
face sales personnel face
6. Immediate action : (reminders
supplement the results) Experience :
companies were able to build regional to
national markets, from a local base.
OPERATIONALISING DM

Step-i: Product Strategy


•Is There A Market For Our Type Of
Product
•How To Position It
•What Benefit It Offers
•How To Motivate
Step-ii: Offer Strategy
•One Step
•Or Two Steps -Lead Generation
-Conversion
Step-iii: Creative Strategy
•The Art & Science Of Developing The
Message
•Innovations

•Step-iv: Media Strategy


•The Most Suitable
Media Mix: mailer
Mag. /Press Ads
Tel. /TV / Radio, Outdoor
Personal Selling
Selling Intangibles
Services

Technical
Consultant

Missionary
CREATIVITY Salesman
IN SELLING Travelling Salesman

Van Salesman

Grocery Salesman

Milk Booth Salesman


FOLLOWING UP

CLOSING THE SALE

HANDLING OBJECTIONS

MAKING THE SALES PRESENTATION

APPROACHING THE PROSPECT

IDENTIFYING & QUALIFYING PROSPECTS

The Creative Selling Process


Sales
Sales Management
Management

Setting Organizing
objectives Planning Organizing activities

Recruit,
Motivat select,
e, train,
evaluate develop,
Controlling Directing
, manage,
& &
PUBLIC RELATIONS
The old name for marketing PR was
publicity, which was seen as the task of
securing free editorial space (As against
paid space i.e., Advg.) in print or broadcast
media to promote product, place, person
MPR goes beyond publicity
Public relations is defined as the management
function which evaluates public attitudes,
identify the policies and procedures and
execute a programme of action to earn public
understanding and acceptance
STRATEGIC
PLANNING OPERATIONS

PUBLIC
RELATIONS
MARKETING
HRD
STEPCHILD

MEGAMARKETING

PR LOBBING/POWER
FINANCE
STATUS: TODAY
PR is another management tool.
PR dept. Is typically located at corporate
hq.
It deals with a number of publics which
are important to an organization.
Like: stockholders, employees,
legislators, regulatory agencies, opinion
leaders, community at large,
customers…………
PR ACTIVITIES INCLUDES:
PRESS RELATIONS : PRESS PEOPLE/MEDIA
•PRODUCT PUBLICITY : PROSPECTS,
CONSUMERS
•CORPORATE EXT. – SHARE HOLDERS

COMMUNICATION COMMUNITY

INT. EMPLOYEES

•LOBBYING : GOVT/STATUARY

REGULATORY BODIES
•COUNSELING : MANAGMENT
MOST OF THESE DONOT FEED INTO DIRECT
PRODUCT SUPPORT
MRP-POSSIBLE OBJECTIVES

−BUILD AWARENESS
−CREDIBILITY
−STIMULATE S.F. & DEALERS
−HOLD DOWN PROMOTION COSTS
TOOLS
•PUBLICATIONS
•EVENTS
•NEWS
LIKE: VISUAL IDENTITY
•SPEECHES
LOGO
•PUBLIC SR. ACTIVITY
UNIFORM
•IDENTITY MEDIA
DRESS CODE
STATIONARY/CARDS
BROCHURES
BUILDINGS
THEY CAN BE EFFECTIVELY USED IF
THEY ARE
•ATTRACTIVE
•DISTINCTIVE
• MEMORABLE
PROACTIVE MARKETING PR
DISTATED BY CO’s MARKETING OBJS.
AIMS AT - ADDITIONAL EXPOSURE
- NEWS WORTHINESS
- CREDIBILITY

REACTIVE MARKETIN PR
DISTATED BY OUTSIDE INFLUENCES
AIMS AT – HANDLING VULNERABLE
POSITION/SITUATION IN THE MARKET PLACE.
EX: PROACTIVE

•ASSIST IN THE LAUNCH OF NEW


PRODUCTS
•INFLUENCE SPECIFIC TARGET GROUPS
•BUILD UP INTEREST IN A PRODUCT
CATEGORY

EX: REACTIVE
-ASSIST IN THE REPOSITIONING OF A
MATURE PRODUCT
DEFEND PRODUCTS THAT HAVE
ENCOUNTERED PUBLIC PROBLEMS
BUILD AWARNESS
BUILD CREDIBILITY
STIMULATE THE SALES
FORCE/DEALERS
HOLD DOWN, PROMOTON
COST
TASKS
•BUILD CORPORATE IMAGE
•INFLUENCE SPECIFIC GROUPS
•BUILD INTERESET IN SPECIFIC
PRODUCTS
•ASSIST IN THEIR LAUNCH
•ASSIST IN REPOSITIONING
•DEFEND AGAINST…….
AUDIENCE FOR CORPORATE COM.
•INTERNAL
•LOCAL/COMMUNITY
•INFLUENTIAL GROUPS
•THE ‘TRADE’
•GOVT.
•MEDIA
•FINANCIAL INST.
•CUSTOMERS
•THE GENERAL PUBLIC
SOURCE: MEDIA FOR PR & CORPORATE
IMAGE
(DAVID BERNSTEIN, (1989) CORPORATE
IMAGE & REALITY)
•PRODUCTS CO. PRODUCES
•ITS CORRESPONDENCE
•PERSONAL PRESENTATION
•IMPERSONAL PRESENTATION
•LITERATURE
•P.O.S. MATERIAL
•PERMANENT MEDIA
•ADVG.

NEWS IS OFTEN DEFINED BY
ITS QUALITIES:

TIMELINESS
PROXIMITY
PROMINENCE
CONSEQUENCE
RARITY
HUMAN INTEREST
SOME TIPS FOR HANDLING MEDIA PEOPLE

1. BE COOPERATIVE WITH REPORTERS,


GIVE FAVOURABLE ATTENTION SHOW
CONSIDERATION.
2. BE FRANK. DIRECT, SINCERE & DON’T
MISLEAD
3. KEEP COOL. IF NOT IN A POSITON TO
TALK (DUE TO LACK OF INFORMATION
AS INDISPOSITION) SAY SO. & OFFER
TO TALK LATER & FOLLOW THROUGH.
4. APPRECIATE THEIR DEADINES.
5. BE CLEAR THAT CAN YOU REALLY
HIDE FACTS? WORK ACCORDINGLY.
Crisis Management
Emergency information dissemination
◆ Rumor center
◆ Fact-based
◆ Press conferences
◆ Outside experts
◆ Localize
Evaluating & Monitoring
Public Relations
◆ Systematic
◆ Compare with
competitors
◆ Monitor media &
“chatrooms”
Review
What is MC and its
components:
•Advertising
•Sales Promotions
•Direct marketing
•Personal selling
•PR
How to plan each of these
programmes

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