Integrated Marketing

Communication-Role of
Marketing Communications
Marketing communication.
• Marketing communications are the means by which firms attempts to
differentiate, inform, persuade and remind (DRIP) consumers-directly
or indirectly about their products or brands they sell.
• Marketing communication represents the voice of the company.
Functions of marketing communication..
• How and why a product is used
• What kind of a person uses it
• Where and when the product is used
• Who makes the product
• What does the company and brand stand for
Communicating with Consumers:
The Communication Process
Noise from the environment

Sender Transmitter Communications Receiver

(Firm) encodes channel (Consumer)
message (Media) decodes message

Feedback
The AIDA Model

Awareness

Interest
Think
Desire

Action
Feel
Do
Awareness
• Senders first must gain the
attention
• A multichannel approach
increases the likelihood the
message will be received

Courtesy Peapod
Interest
• After awareness comes
persuasion
• The customer must want to
further investigate the
product/service
©2010 Dell Inc All Rights Reserved

©2010 Dell Inc All Rights Reserved

Desire

I like it I want it

blue jean images/Getty Images

Action

Purchase is just one type of

action… what other actions
can IMC ask consumers to
take?

©BananaStock/PunchStock
The Lagged Effect
• Advertising does not always have
an immediate impact
• Multiple exposures are often
necessary
• It is difficult to determine which
exposure led to purchase

©image100/PunchStock
The changing marketing communication
environment
Television- more than 200 channels in India
Radio- FM stations
Mobile phone
Internet
Social networking
Lifestyle/professional magazine
Steps in Developing Effective Communications
Identify target audience
Determine objectives
Design communications
Select channels
Establish budget
Decide on media mix
Manage IMC
Communications Objectives: D R I P

Category Need

Brand Awareness

Brand Attitude

Purchase Intention
Designing the Communications
• Message strategy
• Creative strategy
• Message source
• Personal communication channels
• Nonpersonal communication
channels
• Integration
Creative Strategy
• Informational and transformational appeals
• Positive and negative appeals
• Fear
• Guilt
• Shame
• Humor
• Love
• Pride
• Joy
Message Source

Celebrity Characteristics
• Expertise
• Trustworthiness
• Likeability
Personal Communications Channels

Advocate channels

Expert channels

Social channels
Nonpersonal Communication Channels

Media

Sales Promotion

Events and Experiences

Public Relations
Setting the Total Promotion Budget
One of the Hardest Marketing Decisions Facing a
Company is How Much to Spend on Promotion.

Affordable Percentage
Percentage of
of Sales
Sales
Based on What theBased
Basedon
onaaCertain
CertainPercentage
Percentage
Company Can Afford of
ofCurrent
Currentor
orForecasted
ForecastedSales
Sales

Objective-and-Task
Objective-and-Task Competitive-Parity
Competitive-Parity
Based
BasedononDetermining
Determining Based
Basedon
onthe
theCompetitor’s
Competitor’s
Objectives
Objectives&&Tasks,
Tasks,Then
Then Promotion
PromotionBudget
Budget
Estimating
EstimatingCosts
Costs
Setting the Promotion Mix
Reach
Reach Many
Many Buyers,
Buyers, Repeat
Repeat Message
Message
Advertising
Advertising Many
Many Times,
Times, Impersonal,
Impersonal, Expensive
Expensive

Personal
Personal Personal
Personal Interaction,
Interaction, Relationship
Relationship
Selling
Selling Building,
Building, Most
Most Expensive
Expensive Promo
Promo Tool
Tool

Sales
Sales Wide
Wide Assortment
Assortment of
of Tools,
Tools, Rewards
Rewards
Promotion
Promotion Quick
Quick Response,
Response, Efforts
Efforts Short-Lived
Short-Lived

Public
Public Very
Very Believable,
Believable, Dramatize
Dramatize aa Company
Company
Relations
Relations or
or Product,
Product, Underutilized
Underutilized

Direct
Direct Nonpublic,
Nonpublic, Immediate,
Immediate, Customized,
Customized,
Marketing
Marketing Interactive
Interactive
Advertising Sales Events & Public Direct & Word of Personal
Promotion Experience Relations & Interactive mouth Selling
Publicity marketing
Print and Contests, Sports Press kits Catalogs Person to Sales
broadcastin games, person presentatio
g ad lotteries ns
Packaging Sampling Entertainm Speeches Mailing Chat rooms Sales
outer ents meetings
Packaging Gifts Festivals Seminars Telemarketi Blogs Incentive
inserts ng programs
Brochures Fair and Arts Annual Electronic Samples
and trade reports Shopping
booklets shows
Posters and Coupons Causes Charitable TV Fairs and
leaflets donations shopping trade
shows
Billboards Low EMI Factory Publication Fax
financing tours s
Display Entertainm Company Lobbying E mail
signs ent museums
POP Street Company Blogs
displays activities magazine
The Need for Integrated Marketing
Communications
With Integrated Marketing Communications (IMC),
the Company Carefully Integrates and Coordinates
Its Many Communications Channels to Deliver a
Clear, Consistent, and Compelling Message About
the Organization and Its Product or Service.
IMC Builds Brands
Elements of an Integrated Marketing
Communication Strategy
Interactive

• Personal selling
• Direct marketing
• Sales promotions (e.g., mobile marketing)
(e.g., contests)
• Online marketing
• Direct marketing (e.g., blogs, social media
(e.g., telemarketing)
Offline

Online
• Advertising
• Sales promotions
(e.g., coupons) • Direct marketing
• Public relations (e.g., e-mail marketing)
• Direct marketing
(e.g., catalogs)

Passive
Measuring Success
Using Marketing Metrics
Frequency

Reach

Gross rating points

Web Tracking

Digital Vision/Getty Images

Search Engine Marketing
Clicks

Impressions

Click through rate

Return on investment (ROI)

Promotion Mix Strategies
Strategy
Selected
Strategy that Depends Strategy that
Calls for on: Calls for Using
Spending A Lot the Salesforce
Type of
on Advertising and Trade
Product-
and Consumer Promotion to
Market &
Promotion to Push the
Build Up (Pull) Product
Product Through
Consumer Life-Cycle
the Channels.
Demand. Stage
ADVERTISING, PUBLIC RELATIONS, AND SALES
PROMOTIONS
Fundamentals of An Advertising Campaign
• Advertising Strategy:- it outlines what the advertiser proposes to say
or do to solve the communication related problem.
• Big Idea:- is the idea that the advertisers select for communicating the
strategic message in creative way.
• Creative Execution:- deals with physical form of an advertisement-
story, script, words etc
• Tactics:-are short-term decisions about specific , tangibles tasks
related to advertising method, media etc.
Illustration
Brand Strategy Big Idea Execution Elements
Thums Up Wants to position To show brawny or Bungee Jumping to
itself as a strong- macho celebrities Sky Diving
tasting cola for performing Jet-skiing , mach0-
today’s youth males challenging or ish celebrities like
adventurous sports salman khan, suniel
shetty and akshay
Kumar

Mentos Communicate that Mentos gives ‘fresh Creative tagline,

Mentos refreshes ideas’ in our elements of
consumers otherwise mundane humour, sound
lives. effects, stories.
Brand Strategy Big idea Execution elements
Dhaara health Demonstrates that Kids are proud of Creative tagline,
sunflower oil dhaara keeps fathers who are elements of wit and
consumers heart healthy and humour, selection
and health strong strong(due to of right
dhaara) characterers,
gripping stories.
Axe deodrant Create sensual Talk of the Axe Creative
appeal effect, i.e how tagline(used by
women are men, enjoyed by
magnetically women), elements
attracted towards of wit and humour,
men using Axe apt sound effect.
Fevicol Reinforce Fevicol’s Show the bonding Creative tagline,
leadership position power of the brand elements of wit and
as the ultimate in an imaginative humor, selection of
adhesive way. right characters,
sound effect.
Steps in Planning and
Executing an Ad Campaign
Identify target audience

Set advertising objectives

Determine the advertising Budget

Convey the message

Evaluate and select media

Create advertisements

Assess impact
Identify Target Audience
Conduct research

Use the information to set

the tone

Getty Images/Comstock Images

Select the media

Advertising Objectives
Differenti
ate Inform

Persuade Remind
Focus of Advertisements
Institutional advertise Product-focused adve
ments rtisements

©2000 Image 100 Ltd

Social Marketing

Public Service Advertisi

ng (PSA)

Under Federal
Communication
Commission rules,
broadcasters must
devote a specific
amount of free airtime
to PSAs
Courtesy of the National Crime Prevention Council, ww.ncpc.org
Determining Advertising Budget
Considerations:

Role that advertising plays in their attempt to meet their

overall promotional objectives

Expenditures vary over the course of the Product Life Cycle

Nature of the market and the product influence the size of

the budget
Convey the Message
Unique selling proposition (USP)

Red Bull . . . Gives You Wings

United Negro College Fund . . . A mind is a terrible
thing to waste.

Nike . . . Just Do It.

State Farm Insurance . . . Like a good neighbor,
State Farm is there

TNT . . . We know drama

The Appeal
Informational appeal

©Procter & Gamble

©Procter & Gamble

Emotional appeal
Evaluate and Select Media
Media planning ©Photodisc/Getty Images The McGraw-Hill Companies,
Inc/John Flournoy,
photographer

Media mix
Ryan McVay/Getty Images Photodisc/Getty Images

Media buy
Choosing the Right Medium
Determine the Advertising Schedule
Flig
Con
Pul
tinu
sing
htin
gous

©Procter & Gamble

Create Advertisements
CreativityCreativity
plays a should
major
The type of rolenot
in overshadow
the The execution
execution stage
medium the message
style must match
determines the the medium and
execution style objectives

Ads
Assess Impact
Using Marketing Metrics
Pretesting

Tracking

Protesting
Regulatory and Ethical Issues
in Advertising
Public Relations

TOMS
Shoes
Sales Promotion
• Can be targeted at either the
end user consumers or channel
members
• Can be used in either push or
pull strategies

Courtesy Payless Shoe Source, Inc.

Types of Sales Promotion
Promotion Advantages Disadvantages

• Stimulates demand. • Has low redemption rates.

Coupons • Allows for direct tracing of sales. • Has high cost.

• Encourages trial.
Deals • Reduces consumer risk. • May reduce perception of value.

• Builds goodwill. • Consumers buy for premium, not product.

Premiums • Increases perception of value. • Has to be carefully managed.

• Increases consumer involvement. • Requires creativity.

Contests • Generates excitement. • Must be monitored.

Sweepstakes • Increases involvement with the product. • Sales often decline after the sweepstakes is over.

• Encourages trial.
Samples • Offers direct involvement. • Has high cost to the firm.

• Creates loyalty.
Loyalty Programs • Encourages repurchase. • Has high cost to the firm.

• Provides high visibility. • Is difficult to get a good location in the store.

POP Displays • Encourages brand trial. • Can be costly to the firm.

• Stimulates demand. • Is easily copied by competitors.

Rebates • Increases value perception. • May just advance future sales.

• Displays products nontraditionally. • Firm often has little control over display.
Product Placement • Demonstrates product uses. • Product can be overshadowed.