MODULE 1

Role of I MC in marketing process, I MC planning model, Marketing and promotion process

model. Communication process, steps involved in developing I MC programme,
Effectiveness of marketing communications
Advertising: Purpose, Role, Functions, Types, Advertising Vs Marketing mix, Advertising
appeal in various stages of PLC

ROLE OF IMC I N MARKETI NG PROCESS:

The move toward integrated marketing communications is one of the most significant
marketing developments that occurred during the 1990s, and the shift toward this approach is
continuing as we begin the new century. The IMC approach to marketing
communications planning and strategy is being adopted by both large and small companies
and has become popular among firms marketing consumer products and services as well as
business-to-business marketers. There are a number of reasons why marketers are adopting
the IMC approach. A fundamental reason is that they understand the value of strategically
integrating the various communications functions rather than having them operates
autonomously. By coordinating their marketing communications efforts, companies can
avoid duplication, take advantage of synergy among promotional tools, and develop more
efficient and effective marketing communications programs. Advocates of IMC argue that it
is one of the easiest ways for a company to maximize the return on its investment in
marketing and promotions.

MARKETI NG PLANNING PROCESS:



From the diagram, the main components of a marketing plan can be summarised as:
Component of the plan Description
Mission statement A meaningful statement of the purpose and direction of the business
Corporate objectives The overall business objectives that shape the marketing plan
Marketing audit The way the information for marketing planning is organised. Assesses the
situation of marketing in the business the products, resources, distribution
methods, market shares, competitors etc
Market analysis The markets the business is in (and targeting) size , structure, growth etc
SWOT analysis An assessment of the firms current position, showing the strengths &
weaknesses (internal factors) and opportunities and threats (external factors)
Marketing objectives and
strategies
What the marketing function wants to achieve (consistent with corporate
objectives) and how it intends to do it (e.g. Ansoff, Porter)
Marketing budget Usually a detailed budget for the next year and an outline budget for the next
2-3 years
Action plan The detailed implementation plan


I MC PLANNI NG PROCESS:



Review of Marketing Plan:
Examine overall marketing plan and objectives
Role of advertising and promotion
Competitive analysis
Assess environmental influences
Analysis of Promotional Program Situation:
Internal Analysis:
Promotional department organization
Firms ability to implement promotional program
Agency evaluation and selection
Review of previous program results
External Analysis:
Consumer behaviour analysis
Market segmentation and target marketing
Market positioning
Analysis of Communication Process:
Analyze receivers response processes
Analyze source, message, channel factors
Establish communications goals and objectives
Budget Determination:
Set tentative marketing communications budget
Allocate tentative budget
Integrate and Implement Marketing Communications Strategies:
Integrate promotional-mix strategies
Create and produce ads
Purchase media time, space etc
Design and implement direct-marketing programs
Design and distribute sales promotion materials
Design and implement public relations/publicity programs
Design and implement interactive/internet marketing programs
Monitor, Evaluate and Control Integrated Marketing Communications Program:
Evaluate promotional program results/effectiveness
Take measures to control and adjust promotional strategies


MARKETI NG & PROMOTI ON PROCESS MODEL:


Marketing Communications: In integrated marketing communications, the company will
carefully coordinate the promotion elements to deliver a clear, consistent, and compelling
message about the organization and its products.

A companys total marketing communications mix- also called its Promotion mix. It
consists of the specific blend of advertising, sales promotion, public relations, personal
selling and direct marketing tools that the company uses to pursue its advertising and
marketing objectives.

Communication Objectives: Once the target audience has been defined the marketing
communicator must decide what response is sought. In many cases the final response is
purchase. But purchase is the result of a long process of consumer decision making.

The marketing communicator needs to know where the target audience now stands and to
what stage it needs to be moved. The target audience may be in any of six buyer-readiness
stages, the stages consumers normally pass through on their way to making a purchase.
These stages include awareness, knowledge, liking, preference, conviction, and purchase.
Awareness: - It is to create a familiarity about the product. To initially know what the
product is, how it looks without much information about it.
Knowledge: - By providing the detailed information about the product, the features, the
price, and other required information which would help the consumer in purchasing the
product.
Liking: - This is where they create favorable feeling about the product. To feel good about
the product.
Preference: - In this the particular product is compared with other brands and it is rated by
the preference in order to choose.
Conviction: - Convincing the customer that the product is best than any other of that kind in
the market.
Purchase: - After convincing the customer, the communicator persuades to purchase the
product with the details like price, quality, availability, and other.


MARKETI NG COMMUNI CATI ON PROCESS:





Source: In either personal or non personal communication, the messages impact on the
target audience is also affected by how the audience views the communicator. Messages
delivered by highly credible sources are more persuasive. Thus, many food companies
promote to doctors, dentists, and the other health care providers to motivate these
professionals to recommend their products to patients and marketers hire celebrity
endorsers- well-known athletes, actors, and even cartoon character- to deliver their
message.


Message:
A. Message content: The communicator has to figure out an appeal or theme that will
produce the desired response.
B. Appeals: There are 3 types of appeals:
i. Rational appeals- relate to audiences self-interest. They show that the product
will produce the desired benefits. Eg: Messages showing the products quality,
economy, value, or performance. Thus, in its ads, Mercedes offers automobiles
that are engineered like no other car in the world, stressing engineering design,
performance, and safety.
ii. Emotional appeals- attempt to stir up either negative or positive emotions
that can motivate purchase. Communicator may use positive emotional appeals
such as love, pride, joy.
iii. Humor appeals- can capture attention, make people feel good, and give a
brand personality.
C. Message Structure: The communicator must also decide how to handle three message
structure issues.
The first issue is whether to draw a conclusion or leave it to audience. Recent
research suggests that in many cases, rather than drawing a conclusion, the ads are
better off asking questions and letting buyers come to their own conclusions.
The second issue is whether to present the strongest arguments first or last.
Presenting them first gets strong attention but may lead to an anticlimactic ending.
The third issue is whether to present a one-sided argument (mentioning only
products strengths) or a two sided argument (both products strengths and its
shortcomings).
D. Message Format: The marketing communicator also needs a strong format for the
message. In a print ad, the communicator has to decide on the headline, copy,
illustration, and color. To attract attention, advertisers can use novelty and
contrast; eye-catching pictures and headlines; distinctive formats; message size and
position; and color, shape, and movement. If the message is to be carried over a
radio, the communicator has to choose words, sounds, and voices.
E. Channel: The communicator now must select channels of communication. There are
two broad types of communication channels Personal and Non personal.
(i) Personal Communication Channels: Channels through which two or more
people communicate directly with each other, including face to face, person to
audience, over the telephone, or through the mail.
Word-of-mouth influence: Personal communication about a product between
target buyers and neighbors, friends, family members, and associates.
Buzz Marketing: Cultivating opinion leaders and getting them to spread information
about a product or service to others in their communities.
(ii) Non Personal Communication Channels: Media that carry messages without
personal contact or feedback, including major media, TV, Internet, events etc,
F. Receiver: The receiver in an advertising communication system is also called the
target audience. Thus, the receiver can be described in terms of audience segmentation
variables, lifestyle, benefits sought, and demographics and so on. Of particular interest
might be the receivers involvement in the product and the extent to which he or she is
willing to search for and/or process information. It is the characteristics of the
receiver- the demographic, psychological and social characteristics that provide
the basis for understanding communications, persuasion, and market processes.
G. Destination: The communication model does not stop at the receiver but allows for
the possibility that the initial receiver might engage in word-of-mouth communication
to the ultimate destination of the message. The receiver then becomes an interim
source and the destination becomes another receiver.

STEPS I NVOLVED I N DEVELOPI NG I MC PROGRAMME:


Identify target audience
Determine objectives of communication
Design the message
Select communication channels
Establish the budget
Select the marketing communications mix
Measure results
Manage the IMC process

EFFECTIVENESS OF MARKETING COMMUNICATIONS:

There are the five components of an effective sales and marketing communication strategy:
1. Tailor communications for each industry and position. The CEO has different pain points
from a CFO or other executives. The same goes for different industries. It is important to
make each audience understand that you know understand their unique challenges and can
address their specific problems.
2. Get personal early. Many business to business sales teams are consultative in nature and
relationship-oriented. Businesses should introduce sales representatives in the first
communication with a name, some biographical information, and a picture. That will help
establish a personal relationship between the rep and the prospect as early as possible in the
sales process.
3. Implement a multi-step and multi-media program. The era of single-shot marketing is
over. Response rates are much higher, up to three times higher, when marketers employ
multiple messages over multiple touch points. For example, to attract leads to a webinar, start
with emails, then immediately voicemail, and then follow up with a personal communication
from a sales rep. Using all communications channels will increase your chances of success.
4. Use speed and best practices to distinguish your pitch from the competition. People have
short memories. To ensure that your prospects don't forget about you, use timely
communication. For example, before going to a tradeshow, set up a rapid-response email
distribution program. That way you can collect a prospect's business card at a tradeshow and
have an email waiting for him when he plugs in his laptop back at his roomnot a week later
when he's already talking with your competitors.
5. Impress contacts by showing them that you know what they know. If you send an auto
response to prospects who download information from your Web site, maximize the
effectiveness of that auto response. Do not just thank the person. Instead, send a personalized
email from a sales rep, saying that he will be contacted within 24-48 hours. Also, show your
knowledge of his interests. If the prospect has clicked on any product tabs, the email should
have attachments related to these products.










ADVERTISING:


Advertising is any paid form of nonpersonal presentation and promotion of a product by an
identified sponsor using the mass media that is intended to inform or persuade members of a
particular audience. For many, advertising is the most familiar and visible element of the
promotion mix. Because it can convey rich and dynamic images, advertising can establish and
reinforce a distinctive brand identity. This helps marketers bond with customers and boost
sales. Advertising is useful in communicating factual information about the product or
reminding consumers to buy their favorite brand. Advertising sometimes suffers from a
credibility problem because cynical consumers tune out messages they think are biased or are
intended to sell them something they dont need. Advertising can be expensive; therefore,
firms need to take great care to ensure their messages are effective. Mass consumption and
geographically dispersed markets make advertising particularly appropriate for marketing
products using the same promotional messages to large audiences.

ADVERTISING PURPOSES/ OBJECTIVES:
Advertising usually has one of three purposes. If a product is in the introductory stage of the
product life cycle, advertising will educate people about the new product. Other product
advertising emphasizes a brands features and tries to convince the target market to choose it
over competing brands. Last, many ads are designed to ensure that people dont forget about a
product that is already well established. In summary, marketers use advertising messages to
accomplish three primary objectives: to inform, to persuade, and to remind.
Informative Advertising: Informative advertising seeks to develop initial demand for a
product. The promotion of any new market entry tends to pursue this objective because
marketing success at this stage often depends simply on announcing product availability.
Thus, informative advertising is common in the introductory stage of the product life cycle.
Persuasive Advertising: Persuasive advertising attempts to increase demand for an existing
product. Persuasive advertising is a competitive type of promotion suited to the growth stage
and the early part of the maturity stage of the product life cycle.
Reminder Advertising: Reminder advertising strives to reinforce previous promotional
activity by keeping the name of a product before the public. It is common in the latter part of
the maturity stage and throughout the decline stage of the product life cycle.

Traditionally, marketers stated their advertising objectives as sales goals. A more current
standard views advertising as a way to achieve communications objectives, including
informing, persuading, and reminding potential customers of the product. Advertising
attempts to condition consumers to adopt favorable viewpoints toward a promotional
message. The goal of an ad is to improve the likelihood that a customer will buy a particular
product. Advertising illustrates the close relationship between marketing communications and
promotional strategy.

FUNCTIONS OF ADVERTISING:
1. To differentiate the product from their competitors
2. To communicate product information
3. To urge product used
4. To expand the product distribution
5. Too increase brand preference and loyalty
6. To reduce overall sales cost
7. Creates new demands

ROLE OF ADVERTISING:

Advertising consists of four different roles:
1. The marketing role
2. The communication role
3. The economic role
4. The societal role

A marketing role within advertising will focus on satisfying general consumers and seeing to
their requirements through services and goods. It will not be directed at all the public but only
at certain customers that are termed a target market.

A communication role in advertising will refer to a mass communication intention
thatadvertising will be capable of fulfilling. This is an impressive way in which to inform
customers and let them know about the services and goods they wish to buy.

With regards to an economical role in advertising, this will directly deal with the objectives of
the advertiser. Normally, the objectives of an advertiser are to be able to generate sales from
an advertisement. It will also help a consumer to appraise both the value as well as the
benefits of any of the products which are advertised against their prices that the products are
being offered at so as to make the most economic and efficient choice.

Finally, a societal role within advertising is quite a fascinating role. On the one hand, an
advertisement will help to generate the trends within a certain society. In contrast, it is the
cause of breaking a norm that has been a part of society for a while so as to generate a truly
unique impact. It tends to have a somewhat tentative nature, which some people will like
while some will resent it.

TYPES OF ADVERTISING:
The advertising objectives largely determine which of two basic types of advertising to use;
product or institutional.

Institutional advertising tries to develop goodwill for a company rather than to sell a specific
product. Its objective is to improve the advertiser's image, reputation, and relations with the
various groups the company deals with. This includes not only end-users and distributors, but
also suppliers, shareholders, employees, and the general public. Institutional advertising
focuses on the name and prestige of a company. Institutional advertising is sometimes used by
large companies with several divisions to link the divisions in customers' minds. It is also used
to link a companys other products to the reputation of a market-leading product.

Product advertising tries to sell a product. It may be aimed at the end user or at potential
representatives and distributors. Product advertising may be further classified as pioneering,
competitive, and reminder advertising

Pioneering advertising tries to develop primary demand, that is demand for a product
category rather than a specific brand. It's needed in the early stages of the adoption process to
inform potential customers about a new product. The first company to introduce a new
technology to its industry doesn't have to worry about a competitive product since they alone
have the technology. They have to sell the industry on the advantages of the new technology
itself. Pioneering advertising is usually done in the early stage of the product life cycle by the
company which introduces an innovation.

Competitive advertising tries to develop selective demand; demand for a specific
manufacturers product rather than a product category. An innovating company is usually
forced into competitive advertising as the product life cycle moves along. After pioneering
technology is accepted and most manufacturers are supplying competing products, the
innovator is forced to sell the advantages of his specific design over that of the competition.
This is usually the situation in a mature market

Reminder advertising tries to keep the product's name before the public. It is useful when the
product has achieved market domination. Here, the advertiser may use "soft-sell" ads that just
mention or show the name as a reminder. Reminder advertising may be thought of as
maintenance for a product with the leadership position in the market.

BASED ON MEDIA- TYPES OF ADVERTISING:
1. Print Advertising - The print media has been used for advertising since long. The newspapers
and magazines are quite popular modes of advertising for different companies all over the world.
Using the print media, the companies can also promote their products through brochures and fliers.
The newspaper and magazines sell the advertising space and the cost depends on several factors. The
quantity of space, the page of the publication, and the type of paper decide the cost of the
advertisement. So an ad on the front page would be costlier than on inside pages. Similarly an ad in the
glossy supplement of the paper would be more expensive than in a mediocre quality paper.
2. Broadcast Advertising - This type of advertising is very popular all around the world. It
consists of television, radio, or Internet advertising. The ads on the television have a large audience
and are very popular. The cost of the advertisement depends on the length of the ad and the time at
which the ad would be appearing. For example, the prime time ads would be more costly than the
regular ones. Radio advertising is not what it used to be after the advent of television and Internet, but
still there is specific audience for the radio ads too. The radio jingles are quite popular in sections of
society and help to sell the products.
3. Outdoor Advertising - Outdoor advertising makes use of different tools to gain customers
attention. The billboards, kiosks, and events and tradeshows are an effective way to convey the
message of the company. The billboards are present all around the city but the content should be such
that it attracts the attention of the customer. The kiosks are an easy outlet of the products and serve as
information outlets for the people too. Organizing events such as trade fairs and exhibitions for
promotion of the product or service also in a way advertises the product. Therefore, outdoor
advertising is an effective advertising tool.
4. Covert Advertising - This is a unique way of advertising in which the product or the message
is subtly included in a movie or TV serial. There is no actual ad, just the mention of the product in the
movie. For example, Tom Cruise used the Nokia phone in the movie Minority Report.
5. Public Service Advertising - As evident from the title itself, such advertising is for the public
causes. There are a host of important matters such as AIDS, political integrity, energy conservation,
illiteracy, poverty and so on all of which need more awareness as far as general public is concerned.
This type of advertising has gained much importance in recent times and is an effective tool to convey
the message.

ADVERTISING APPEAL IN VARIOUS STAGES OF PLC:


Introduction stage of PLC
The need for immediate profit is not a pressure. The product is promoted to
create awareness. If the product has no or few competitors, a skimming price strategy is
employed. Limited numbers of product are available in few channels of
distribution. Advertising differentiates the product.
Growth stage of PLC
Competitors are attracted into the market with very similar offerings. Products become more
profitable and companies form alliances, joint ventures and take each other over. Advertising
spend is high and focuses upon building brand. Market share tends to stabilise.
Advertising establishes participation with the marketplace.
Maturity stage of PLC
Those products that survive the earlier stages tend to spend longest in this phase. Sales grow
at a decreasing rate and then stabilise. Producers attempt to differentiate products and brands
are key to this. Price wars and intense competition occur. At this point the market reaches
saturation. Producers begin to leave the market due to poor margins. Promotion becomes
more widespread and use a greater variety of media. Advertising puts price ahead of the
competition.
Decline stage of PLC
At this point there is a downturn in the market. For example more innovative products are
introduced or consumer tastes have changed. There is intense price-cutting and many more
products are withdrawn from the market. Profits can be improved by reducing marketing
spend and cost cutting. Defensive advertising or for revitalization.