Professional Documents
Culture Documents
COMMUNICATION
• SYLLABUS :
• UNIT 1- INTRODUCTION
• UNIT 2-ADVERTISING AND SALES PROMOTION
• UNIT 3- PERSONAL SELLING,DIRECT MARKETING AND
INTERNET MARKETING
• UNIT 4- PUBLIC RELATION AND PUBLICITY
• UNIT 5- MONITORING,EVALUATION AND CONTROL
UNIT -1
INTRODUCTION:
• LEARNING OBJECTIVES
• Define the AIDA model and how the system is used to guide integrated
marketing communications
• Key Points
• American advertising and sales pioneer, Elias St. Elmo Lewis, is credited for
developing the AIDA model.
History Of the AIDA Model:
• American advertising and sales pioneer, Elias St. Elmo Lewis, is largely
credited for developing the AIDA model. In one of his publications on
advertising, Lewis identified at least three principles that should be present
in an advertisement:
• The advertisement must then interest him, so that he will continue to read
it.
• Finally, the advertisement must convince him, so that when reads it, he will
believe it.
• AIDA describes a common list of events that occur when a consumer views
an advertisement. Each letter in the acronym stands for the following:
• The “A” represents attention or awareness, and the ability to attract the
attention of the consumers.
• The “I” is interest and points to the ability to raise the interest of consumers
by focusing on and demonstrating advantages and benefits (instead of
focusing on features, as in traditional advertising).
CONTI..
• The “D” represents desire. The advertisement convinces consumers that
they want and desire the product or service because it will satisfy their
needs.
• The “A” is action, which leads consumers toward taking action by
purchasing the product or service.
• The system is used to guide marketers to target a market effectively.
Naturally, as organizations move through each step of the AIDA model, a
percentage of initial prospects are lost throughout the sales cycle.
Improvements to the AIDA Model:
• From mass media to more specialized (niche) media, which are centered around specific
target audiences.
• From limited Internet access to 24/7 Internet availability and access to goods and services.
IMC MIX
• IMC COMMUNICATION TOOLS
ADVANTAGES:
• Changes in society have made consumers more receptive to direct-
marketing.
• Allows marketers to be very selective and target specific segments of
customers
• Messages can be customized for specific customers.
• Effectiveness easier to measure
DISADVANTAGES:
• Lack of customer receptivity and very low response rates
• Clutter (too many messages)
• Image problems – particularly with telemarketing
3.INTERACTIVE/ INTERENT MARKETING
3.INTERACTIVE /INTERNET MARKETING
Form of marketing communication through interactive media which allow for
a two-way flow of information whereby users can participate in and modify
the content of the information they receive in real time.
Advantages :
• Can be used for a variety of IMC functions
• Messages can be tailored to specific interests and needs of customers
• Interactive nature of the Internet leads to higher level of involvement
• Can provide large amounts of information to customers.
Disadvantages :
• Internet is not yet a mass medium as many consumers lack access
• Attention to Internet ads is very low
• Great deal of clutter on the Internet
• Audience measurement is a problem on the Internet
Use of the Internet as an IMC Tool
• As an advertising medium to inform, educate and persuade customers
• As a direct sales tool
• To obtain customer database information
• To communicate and interact with buyers
• To provide customer service and support
• To build and maintain customer relationships
• As a tool for implementing sales promotion
• As a tool for implementing publicity/public relations programs
4.SALES PROMOTION
4.SALES PROMOTION
• Marketing activities that provide extra value or incentives to the sales force, distributors, or ultimate
consumers and can stimulate immediate sales.
Advantages of publicity –
• Credibility –
• Low cost (although not totally free)
• Often results in word-of-mouth
Disadvantages of publicity
• Not always under control of organization
• Can be negative.
Publicity Vehicles
• News Releases: –Single-page news stories sent to media who might
print or broadcast the content.
* Publicity
* Special publications
*Community activity participation
*Fund-raising
*Special event sponsorship
ROLE OF IMC IN THE MARKETING PROCESS
The advent of 21st century has marked a sharp change in almost all fields of
life, including business strategies.
The old strategies, beliefs and tactics of marketing and selling a product are
no longer valid in today’s world. New techniques and technologies have
emerged on the surface of the business arena and have become eminent for
effective marketing strategies.
1.Marketing Strategy and Analysis
• Any organization that wants to exchange its products or services in the
marketplace successfully should have a strategic marketing plan to guide
the allocation of its resources. A strategic marketing plan usually evolves
from an organization’s overall corporate strategy and serves as a guide for
specific marketing programs and policies.
i).Opportunity Analysis
• Market opportunities are areas where there are favorable demand trends,
where the company believes customer needs and opportunities are not
being satisfied, and where it can compete effectively.
• Athletic-shoe companies such as Nike, Reebok, and others see the shoe
market as an opportunity to broaden their customer base both
domestically and internationally.
ii)Competitive Analysis
• In developing the firm’s marketing strategies and plans for its products and
services, the manager must carefully analyze the competition to be faced in
the marketplace.
• For example, recently the U.S. market has seen significant growth in the
high-end luxury market, with more consumers spending more of their
money on luxury goods than ever before.
• High-end products from Coach, Tiffany’s, and Ralph Lauren are all
benefiting from this change in consumer spending habits. Interestingly, it is
not just the wealthy that are purchasing these very expensive products, but
the middle class is doing so as well. Leading marketers apply labels such as
the “massification of luxury,” “luxflation,” or the “new luxury” segments
iii).Target Market Selection
• After evaluating the opportunities presented by various market segments,
including a detailed competitive analysis, the company may select one, or
more, as a target market.
• This target market becomes the focus of the firm’s marketing effort, and
goals and objectives are set according to where the company wants to be
and what it hopes to accomplish in this market.
• Marketers rarely go after the entire market with one product, brand, or
service offering. Rather, they pursue a number of different strategies,
breaking the market into segments and targeting one or more of these
segments or marketing and promotional efforts.
• This means different objectives may be established, different budgets may
be used, and the promotional-mix strategies may vary, depending on the
market approach used.
2.The Target Marketing Process
• Because few, if any, products can satisfy the needs of all consumers,
companies often develop different marketing strategies to satisfy different
consumer needs.
• The process by which marketers do this is referred to as target marketing
and involves four basic steps: identifying markets with unfulfilled needs,
segmenting the market, targeting specific segments, and positioning one’s
product or service through marketing strategies.
i)Identifying Markets
• Target market identification isolates consumers with similar lifestyles,
needs, and the like, and increases our knowledge of their specific
requirements. The more marketers can establish this common ground with
consumers, the more effective they will be in addressing these
requirements in their communications programs and informing and/or
persuading potential consumers that the product or service offering will
meet their needs.
ii).Market Segmentation
• The segmentation process involves five distinct steps:
Geographic location
• Demographic attributes
• Psychographic attributes
• Behavioral attributes
iii)Selecting a target market
• The next objective is to select the segment of the consumers which you
want to target. Three market coverage alternatives are available.
Undifferentiated marketing involves ignoring segment differences and
offering just one product or service to the entire market. Differentiated
marketing involves marketing in a number of segments, developing separate
marketing strategies for each. Concentrated marketing is used when the
firm selects one segment and attempts to capture a large share of this
market.
iv)Market Positioning
• Positioning has been defined as “the art and science of fitting the product
or service to one or more segments of the broad market in such a way as to
set it meaningfully apart from competition.” Positioning strategies generally
focus on either the consumer or the competition.
• The product is anything that can be marketed and that, when used or
supported, gives satisfaction to the individual. The term product symbolism
refers to what a product or brand means to consumers and what they
experience in purchasing and using it.
ii)Price Decisions
• The price variable refers to what the consumer must give up to purchase a
product or service.
• While price is discussed in terms of the dollar amount exchanged for an
item, the cost of a product to the consumer includes time, mental activity,
and behavioral effort.
• From an IMC perspective, the price must be consistent with the
perceptions of the product, as well as the communications strategy. Higher
prices, of course, will communicate a higher product quality, while lower
prices reflect bargain or “value” perceptions.
iii)Distribution Channel Decisions
• One of a marketer’s most important marketing decisions involves the way it
makes its products and services available for purchase.
• A firm can have an excellent product at a great price, but it will be of little
value unless it is available where the customer wants it, when the customer
wants it, and with the proper support and service.
• Channel decisions involve selecting, managing, and motivating
intermediaries such as wholesalers, distributors, brokers, and retailers that
help a firm make a product or service available to customers.
• The distribution strategy should also take into consideration the
communication objectives and the impact that the channel strategy will
have on the IMC program.
Developing Promotional Strategies: Push
or Pull?
• Promotion to the trade includes all the elements of the promotional mix. Company sales
representatives call on resellers to explain the product, discuss the firm’s plans for building demand
among ultimate consumers, and describe special programs being offered to the trade, such as
introductory discounts, promotional allowances, and cooperative ad programs.
• The company may use trade advertising to interest wholesalers and retailers and motivate them to
purchase its products for resale to their customers. Trade advertising usually appears in publications
that serve the particular industry.
• A push strategy tries to convince resellers they can make a profit on a manufacturer’s product and
to encourage them to order the merchandise and push it through to their customers. Sometimes
manufacturers face resistance from channel members who do not want to take on an additional
product line or brand.
• In these cases, companies may turn to a promotional pull strategy, spending money on advertising
and sales promotion efforts directed toward the ultimate consumer. The goal of a pull strategy is to
create demand among consumers and encourage them to request the product from the retailer.
Seeing the consumer demand, retailers will order the product from wholesalers which in turn will
request it from the manufacturer. Thus, stimulating demand at the end-user level pulls the product
through the channels of distribution.
Role of Advertising and Promotion
• Marketers use the various promotional-mix elements—advertising, sales
promotion, direct marketing, publicity/public relations, and personal selling
—to inform consumers about their products, their prices, and places where
the products are available.