Integrated Marketing Communications

Session Coverage
– Communications Mix
– Communication Process
– Selecting Communication Channels
– Developing Effective Integrated Marketing
Communications
– Managing Ad Programs
– Sales Promotions
– Measuring Campaign Results
Marketing Communications

The means by which firms attempt to

inform, persuade, and remind
consumers, directly or indirectly, about
the products and brands they sell.
Marketing Communications
Inform Persuade Remind
New Products, pack, To buy now Maintain brand
feature benefits etc. awareness & recall
Difference with respect Switching from Product will be needed
to competitors competitors by giving in near future Foreg:
them clear reason Seasonal products..
Outlets where brands Persuade to stay loyal AC, Fans, Ice-cream,
are available with the brand Cold drinks
Pricing offered in Occasion of Use
market
How product works where to buy the
product
Correct a –ve
perception
Marketing Communications Mix.
•  It consists of a blend of:
• 1. Advertising
• 2. Personal Selling
• 3. Sales promotion
• 4. Direct Marketing/Digital Marketing
• 5.Public Relations
 Elements of Promotion Mix
Tools that a company uses to pursue it’s
advertising & marketing objectives.
 Advertising
Any paid form of non-personal promotion by an identified
sponsor
 Personal selling
Face to face presentation & selling
 Sales promotion (Consumer and Trade)
Short term incentives to encourage trial or purchase
 Public relations
Relationship building plan with the outside world to build &
protect co’s image.
 Direct marketing
Use of non-personal form of communication to
communicate with select customer groups
 Relevance of the IMC Elements

 Advertising
- When product is widely distributed
- Market is large & spread out
- Demo is not an important criteria
- Literacy levels exist

 Personal selling
- Information needs are high
- Product is complex
- Customers are few & reachable
- Employing push strategy
Relevance of the IMC Elements (contd…)

 Sales promotion
- When short-term gains are desired
- New product requires to induce trial
- Brand switchers are to be targeted

 Public relations
- Long term relationships are targeted
- Building public opinion
- Pre-event hype is required

 Direct marketing
- Well defined target market
- Service & relationships are crucial
Communication Platforms
Advertising Sales Promotion
• Print and broadcast ads • Contests, games,
• Packaging inserts sweepstakes
• Motion pictures • Premiums
• Brochures and booklets • Sampling
• Posters • Trade shows, exhibitions
• Billboards • Coupons
• POP displays • Rebates
• Logos
• Videotapes
Sales Promotion Tools

• Consumer promotion tools

– Sampling – Free amount of Product
– Couponing – Entitles bearer to stated saving on specific
product
– Cash Refund Offer (Rebate) – Price reduction after
purchase.
– Premiums – Product offered at low cost or free as an
incentive to purchase particular product.
– Patronage awards – Value in cash or other form if you
purchase things from certain vendor or group of vendors.
– Product Warranties- Promises by sellers that product will
perform as specified or they will replace/repair/refund it.
– Contests – to induce immediate purchase
Sales Promotion Tools

• Trade promotion tools

– Discounts on list prices
– Free goods offers
– Promotional allowances
– Gifts
• Business promotion tools
– Trade shows & Conventions
– Sales contests for sales personnel
Communication Platforms
Personal Selling Direct Marketing
• Sales presentations • Catalogs
• Sales meetings • Mailings
• Samples • Telemarketing
• Fairs and trade shows • Electronic shopping
• TV shopping
• Fax mail
• E-mail
• In formals
Communication Platforms
Public Relations
• Press kits
• Speeches
• Seminars
• Annual reports
• Charitable donations
• Publications
• Lobbying
The Need for Integrated
Marketing Communication
Elements in the Communications Process
Media, Local News
Salesperson,
Retail Store etc

M. Manager Ad, Sales Receiver Customers,

presentation, Interpretation of listeners,
Ad. Manager message viewers
Store display
Ad. Agency

News Articles
Market Research Other Advertisements
Sales Results Other store displays
 Response Hierarchy Models

Learn

Feel

Do
Steps in Developing Effective
Communications
Identify target audience
Determine objectives
Design message/communications

Select channels
Establish budget
Decide on media mix
Manage IMC
Developing 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
Developing Effective Marketing
Communications
• Step 4: Selecting Communication Channels
– Personal communication channels
• Effectiveness derives from personalization and
feedback

– Non-personal communication channels

• Influence derives from two-step flow-of-
communication process
Developing Effective Marketing
Communications
• Step 5: Establishing the Marketing
Communications Budget
– Affordability method
– Percentage-of-sales method
– Competitive-parity method
– Objective-and-task method
MONEY : Setting up of total Promotion
Budget
• One of the most difficult decisions:
• Methods:
1. Affordable Method: Completely ignores impact on sales volume,
Leads to uncertain annual budget, long term planning difficult.
2. Percentage of sale method
3. Competitive parity method: In line with competition
• Competitors expenses represent collective wisdom on industry
4. Objective and task Method: Define specific objectives
– Establish market share goals (50 Lakh potential users, we can
attract 25%)
– %age of aware prospects that should be persuaded to buy this
year.
Step 6: Deciding on the Marketing Communications Mix
•Advertising
-Development and
Management
-Decisions on Media and
Measurement
 Above the line (ATL and Below the line (BTL)
Advertising

• ATL: Advertising where mass media is used to

promote brands and reach out to the target
consumers. Examples: TV and radio advertising,
print as well as internet.
• BTL: It is more one to one and involves the
distribution of pamphlets, stickers, promotions,
brochures placed at point of sale, on the roads
through banners and placards. It could also
involve product demos and samplings at busy
places like malls and market places or residential
complexes
Major Media Types
• Television • Outdoor
• Newspapers • Yellow Pages
• Radio • Newsletters
• Magazines • Brochures
• Telephone
• Internet
• Direct mail
 Alternative Advertising Options
Place Advertisement or out of home
advertisement

• Billboards
• Public spaces
• Product placement
• Point-of-purchase

Public Spaces: Movies, Airlines, Sports Arenas, Kiosks, public areas etc
 Developing the Advertising Plan
• The 6 M’s of Advertising
• Strategy:
1. Market- to whom is the communication addressed
2. Mission – setting advertising & sales growth
objectives
3. Message – deciding the content & form
4. Media – media vehicles to be used, frequency &
timing
• Implementation:
1. Money – budgeting the allocation of resources
2. Measurement – evaluating the impact of
communication & it’s effect on sales
 MISSION : Defining the objectives

Possible objectives
• To inform – informing the market about a new
product/service
- suggesting new uses
- building brand/company image
- building primary demand
- generate interest amongst
trade/consumers
• To persuade - build brand preference
- induce brand switching
- persuade to buy now

• To remind - maintain Top of the mind Recall

- keeping customers informed about
availability & improvements
Factors to Consider in Setting an
Advertising Budget
Stage in the product life cycle

Market share and consumer base

Competition and clutter

Advertising frequency
 Message: Deciding Content
Advertising can take either an emotional route or a
rational route to convey the message.

Concept of USP

 Each advertisement must make a specific proposition

to the consumer : Buy this product & you will get this
benefit.

 The proposition must be one that competition either

cannot or does not offer: It must be unique.

 The proposition must be so strong that it can: Pull

new customers to your product.
 Message-Appeals
• Rational Appeals:
• Strong Claim supported by numbers.
• Radio Mirchi “India’s 2nd largest channel is
not seen, it is heard”. (TRP)
• Zodiac “ Why Zodiac makes best shirts in
India” Fabric, Stitching, buttons, Collars,
Style and Comfort, Customer Satisfaction.
• Complan “23 vital nutrients”
• Maggi 2-Minute Noodles
 Message-Appeals Cont…
• Emotional Appeals:
• “ A Gift for someone you love”
• INFORMATIONAL APPEALS:
• Elaborates of product/service benefits:
• Saridon stops headache pain quickly
• Product demonstration ads
• Transformational Appeals (Non product related
benefits or image)
• Kind of person or kind of experience results from
using of brand
• Liril (Freshness Soap), Mentos (electrify your
mind, (Raymonds-A complete man)
 Message-Appeals Cont…
• Humour Appeals: Important clutter breaker
• Newsweek (Times Magazine):
• “ If your Ad doesn’t work in TM, Change your Ad
Agency”
• “ If your Ad doesn’t work in TM,DON’T Change
your Ad Agency” Place it in Newsweek.
• Negative Appeals: Fear, Guilt, Shame
• Fear Appeals:
• “Today a picture of safety, tomorrow a picture of
disaster”
Media: Selecting Appropriate Media

Media options are:

 Print Media - Newspapers/magazines
 Audio visual - Radio/TV/internet
 Outdoor - Hoardings/bus panels/kiosks/banners
 Data bases - Yellow pages/trade directories
 Direct mail - Brochures/leaflets/newsletter

Selecting specific media:

 Circulation/ readership/ viewer ship
 Reach-penetration
 Feasibility
 Cost
 Visibility vs. clutter
Media Selection

• Reach
• Frequency
• Impact
• Exposure
Product Launch Communications Mix

Kleenex allocated its

communications:
•75% Television
•23% Print
•2% Online
 MEASUREMENT
Evaluating Advertising Effectiveness
• Communication Effect Research

1. Consumer feedback method:

– Main Message you get from is Ad
– What works well and what works poorly?
– Which is the best place to reach you with this message?

2. Portfolio Tests: Asked to view and listen to many Ads (Asked to

recall all Ads and its content.

3. Lab Tests: Physiological reactions (Heartbeat, BP Etc) Asked to

turn a knob to indicate their liking or disliking moment by moment.
 PROMOTION
Sales Promotion
&
Public Relations
 Sales Promotion

Collection of incentive tools, mostly

short term, designed to stimulate
quicker or greater purchase
of particular products or services
by consumers or the trade.
 Sales Promotion-Examples
• Exchange your new car, get loyalty points
• Buy a Chocolate, win free trip to Switzerland
• Buy one, get TWO free
• Reward of 5% for paying your bills with us
• Clearance sales, rock bottom prices
• Scratch and Win, get lucky with our sweepstakes.
Sales Promotion Tools
Consumer-directed Trade-directed
• Free Samples • Temporary Price Cuts
• Coupons • Renting Shelf space
• Cash refund offers • Cooperative
• Price offs advertising
• Premiums • Volume Discounts
• Product Warranties • Contests
• Patronage Awards
• Tie-in promotions
PUBLIC RELATIONS
PUBLIC RELATIONS-ADVANTAGES
PR-ACTIVITIES & EFFECTIVENESS

EFFECTIVENESS