Marketing Communication and Product Placement

- Salman

What is Marketing
Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization.

Marketing Communication
Integrated Marketing Communication is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences.

IMC
Recognized as a business process

IMC

Importance of relevant audience Demand for accountability and Demand for accountability Measurement of Outcomes

Reason for Growing Impact of IMC

From
Media advertising Mass media

Toward
Multiple forms of communication Specialized media

Manufacturer dominance
General focus

Retailer dominance
Data-based marketing

Low agency accountability

Traditional compensation Limited Internet availability

Greater agency accountability

Performance-based compensation

Widespread Internet availability

IMC and Branding

Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumers mind. IMC plays a major role in the process of developing and sustaining brand identity and equity.

IMC Tools
Broadcast media (TV/radio)
Print media (newspapers,

magazines)

Public Relations/ publicity

Internet/ interactive

Out-of-home media

Target Audience
Personal selling

Direct marketing

Sales Promotion

Point-of-purchase (displays, packaging)

Word-of-mouth

Events and sponsorship

Product placements (TV and movies)

Why is Product Placement Important ?

There is a definite science to placing products , and the better a business is at doing it, the more sales and more profit they will make. It all starts with how the general consumer thinks and acts when he or she enters a store.

Consumer Behaviour
Where certain types of items are placed within the store falls right into how the common consumer thinks and acts. Everyday items, also know as destination items are often placed toward the interior or back part of a store. This way, you and I must pass right by strategically placed impulse items in order to get to them. This means:
You must pass by scores of other products, increasing the likelihood of buying one or more of them. You will remain the store longer, meaning youll be exposed to in-store marketing longer. The store controls what you see and how you see it. These factors mean that products, signs, offers and promotions can be placed at eye level on the journey back to get those items you went for in the first place. It enables the merchandisers and marketers to grab attention and pull the consumer in, because they know the window is not very big.

Precisely where and how a product is positioned on store shelves can either send sales through the roof or make them never really reach their full potential. Both temporary and permanent displays are often used to divert a consumers attention from his or her original goal. Some of the visual product placement techniques retailers use to capitalize on consumer behaviour includes: Block Placement this is when items that are related to one another are placed together. Vertical Placement this refers to merchandise being displayed on more than one shelf level. Commercial Placement items with a higher perceived value are given more desirable shelf position, while items that dont add much to the bottom line are given less desirable space. Margin Product Placement the more profit an individual item gives the retailer, the better position it will receive. Market Share Placement the highest revenue generators are placed in spots that customers can easily find them.

Some studies suggest that consumers scan shelves from left to right, starting at eye-level first and then working down. Many savvy merchandisers and retailers will take this into consideration when laying out the product placement for a store.

Thank You