You are on page 1of 306

Introduction and Role of IMC in Marketing

Dr. Varsha Jain

The Growth of Advertising and Promotion

IMC-Audience Contact Points


Point of Purchase Internet/ Interactive Media Direct Mail Publicity Public Relations Packaging

Marketing Communications Audience

Direct Response Sales Promotion

Print Media

Broadcast Media

Outdoor

Events

Traditional Approach to Marketing Communications


Sales Promotion

Point of Purchase

Publicity

Special Events

Media Advertising

Packaging

Direct Response

Public Relations Direct Marketing

Interactive Marketing

Contemporary IMC Approach


Sales Promotion Direct Response

Packaging

Point of Purchase

Publicity

Media Advertising

Public Relations

Interactive Marketing

Direct Marketing

Special Events

Marketing Revolution and Shifting Tides


From
Media Advertising Mass Media Manufacturer Dominance General Focus Low Agency Accountability Traditional Compensation Limited Internet Availability

Toward
Multiple Forms of Communication Specialized Media Retailer Dominance Data Based Marketing Greater Agency Accountability
Performance Based Compensation

Widespread Internet Availability

1. Consumers are less responsive to traditional media. 2. Rapid use of internet and social media

3. Shift from manufacturers power to consumers.


4. Growth of database marketing. 5. Greater amount of agency accountability for organizations.

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. 2010 Brand Value
(Billions of Dollars)

1. Coca-Cola 2. IBM 3. Microsoft 4. Google 5. GE 6. McDonalds 7. Intel 8. Nokia 9. Disney 10. HP

$70.5 $64.7 $60.9 $43.6 $42.8 $33.6 $32.0 $29.5 $28.7 $26.9

Coordinated Marketing Mix Elements Build Image

Basic Elements of the Promotional Mix


Advertising Direct Marketing Interactive/ Internet Marketing Sales Promotion

Publicity/Public Relations
Personal Selling

Classifications of Advertising
National Advertising

Retail/Local Advertising Primary vs. Selective Demand Advertising

Consumers

Business-to-Business Advertising Professional Advertising

Trade Advertising

Organizations

An Example of B-to-B Advertising

Direct Marketing is Part of IMC


Direct Mail Internet Sales

Direct Response Advertising

Direct Marketing
Shopping Channels Catalogs

Telemarketing

Direct Marketing in India

Using the Internet as an IMC Tool

The Internet

Educates or Informs Customers

A Persuasive Advertising Medium

A Sales Tool or an Actual Sales Vehicle

Obtains Customer Database Information

Communicates and Interacts With Buyers

Provides Customer Service and Support

Builds and Maintains Customer Relationships

Yatra and Internet

Sales Promotion Tools


Coupons

Samples Premiums
Contests/Sweepstakes

Trade Allowances POP Displays Training Programs Trade Shows Coop Advertising

Refunds/Rebates Bonus Packs


Loyalty Programs

Events

Consumeroriented
[For end-users]

Tradeoriented
[For resellers]

Various Uses of Sales Promotion


Introduce New Products
Get Existing Customers to Buy More

Combat Competition

Enhance Personal Selling

Sales Promotion

Attract New Customers

Maintain Sales In Off Season

Tie In Advertising & Personal Selling


Dr. Varsha Jain

Increase Retail Inventories

Publicity Vehicles
Feature Articles

News Releases

Publicity Vehicles

Interviews

Press Conferences
Dr. Varsha Jain

Special Events

Public Relations Tools


Publicity Vehicles Special Publications

Community Activities

Corporate Advertising

Cause-related Marketing

Public Affairs Activities


Dr. Varsha Jain

Special Event Sponsorship

Consumer touch point 1. 2. 3. 4. 5. Website Press release Packaging Brochures In store promotions

Intrinsic Touch points, direct control of marketers such as packaging.


Unexpected Touch points, beyond the control of organization such as, word of mouth, personal communication with friends, family etc. Customer initiated touch points, interactions between the consumer and the company such as feedback, complaints, toll free numbers etc.

Integrated Marketing Communications Planning Model


Review of Marketing Plan
Promotional Program Situation Analysis Analysis of the Communications Process Budget Determination Develop Integrated Marketing Communications Programs Advertising Advertising Objectives Sales Promotion Sales Promotion Objectives PR/ Publicity PR/ Publicity Objectives Personal Selling Personal Selling Objectives Direct Marketing Direct Marketing Objectives Internet/ Interactive Internet/ Interactive Objectives

Message Strategy

Sales Promotion Strategy

PR/ Publicity Strategy

Personal Selling Strategy

Direct Marketing Strategy

Internet/ Interactive Strategy

Integration & Implementation of Marketing Communications Strategies


Monitor, Evaluate & Control Promotional Program

Process of IMC

1. Review of marketing plan, over all plan, competition and environment


2. Analysis of IMC programme, internal (company) and external (consumer and market) analysis 3. Analysis of communication process, receivers response source, message, channels and objective. 4. Budget, Tentative budget. 5. Over all IMC programme, advertising, direct marketing, internet marketing, sales promotion, public relations and personal selling. 6. Integration and implementation of marketing strategies, developing ads, media, timing etc. 7. Monitoring, evaluating and controlling.

Understanding the fundamentals of IMC

Dr. Varsha Jain

Marketing and Promotions Process Model


Opportunity Analysis

Identifying Markets

Product Decisions Promotional Decisions Advertising Direct Marketing Interactive Marketing Sales Promotion Publicity and Public Relations Personal Selling

Promotion to Final Buyer

Competitive Analysis

Market Segmentation

Pricing Decisions

Promotion To Trade

Ultimate Consumer Consumers Businesses

Target Marketing Selecting a Target Market

Distribution Decisions

Positioning Through Marketing Strategies

Resellers

The Target Marketing Process

Identify Markets With Unfulfilled Needs Determining Market Segmentation

Selecting Market To Target

Positioning Through Marketing Strategies

The Marketing Segmentation Process


Find Ways To Group Consumers According To Their Needs. Find Ways To Group Marketing Actions - Usually the Products Offered - Available To the Organization.

Develop a Market/Product Grid To Relate the Market Segments To the Firms Products and Actions.
Select the Product Segments Toward Which the Firm Directs Its Marketing Actions.

Take Marketing Actions To Reach Target Segments.

Bases for Segmentation


Psychographic Demographic

Customer Characteristics Socioeconomic Geographic

Behavior
Buying Situation Usage

Outlets

Benefits

Positioning Strategies
How should we position?
By Attributes and Benefits? By Price or Quality? By Use or Application? By Product Class? By Product User? By

Competitor?
By Cultural Symbols?

Cultural Symbols Can Differentiate Brands

Developing a Positioning Platform


1. Identify the Competitors

2.
3. 4.

Assess Perceptions of Competitiors


Determine Competitors Positions Analyze Consumer Preferences

5.
6.

Make the Positioning Decision


Monitor the Position

Positioning Decisions
Is the Current Position Strategy Working? Is the Segmentation Strategy Appropriate?

The Checklist

How Strong Is the Competition?

Are There Sufficient Resources To Communicate the Position?

Branding and Packaging Work Closely Together

Product Decisions
BRANDING PACKAGING

Brand name communicates attributes and meaning

Advertising creates and maintains brand equity

Packaging has become increasingly important

Its often customers first exposure to product

A Package Is More than a Container

Pricing Must Be Coordinated with Other Factors


Pricing Considerations
Price Must Be Consistent With Perceptions of the Product Higher Prices Communicate Higher Product Quality

Lower Prices Reflect Bargain or Value Perceptions


Price, Advertising and Distribution must be Unified In Identifying the Product Position A Product Positioned as High Quality While Carrying a Lower Price than Competitors Will Confuse Customers

Some Products Compete on Price Others Compete on Quality

Distribution is a Vital Link in the Chain

Selecting

Distribution Channel Decisions

Managing

Motivating

The Middleman Can Play a Key Role


Brokers

Independent Channel Intermediaries

Distributors

Wholesalers

Retailers

Push Versus Pull


Push Policy
Producer Wholesaler Retailer Consumer Information Flow

Pull Policy
Producer Wholesaler Retailer Consumer

Consumer and IMC

Dr. Varsha Jain

Consumer Behavior

How they Develop?

Why they Develop?

Consumer needs

What they are?

Who ends up?

Consumer Behavior: The process and activities people engage in when searching for, selecting, purchasing, evaluating and disposing of products and services so as to satisfy their needs and desires

Consumer Decision Making


Decision Stage
Problem Recognition Information Search Alternative Evaluation Purchase Decision Postpurchase Evaluation

Psychological Process
Motivation Perception Attitude Formation Integration Learning

Sources of Problem Recognition

Out of Stock

Dissatisfaction

New Needs or Wants

Related Product Purchase

Marketer Induced

New Products

Maslows Hierarchy of Needs


Self-actualization needs (selfdevelopment, realization) Esteem needs (self-esteem, recognition, status)

Social needs (sense of belonging, love) Safety needs (security, protection) Physiological needs (hunger, thirst)

Freudian Psychoanalytic Approach


Strong Inhibitions Symbolic Meanings

Subconscious Mind

Complex and Unclear Motives

Surrogate Behaviors

Probing the Minds of Consumers

Depth Interviews

Association Tests

Projective Methods

Focus Groups

MR Not All Positive or All Negative


Pros
Reveals Hidden Feelings, Drives and Fears Highlights Importance of Symbolic Factors Shifts Attention from What to How and Why

Cons
Qualitative Results from Very Small Samples

Motivation Research

Varying, Subjective Interpretations Difficult or Impossible to


Verify or Validate

Sexy Ads Get Noticed

Information Search

Personal Sources

The Selective Perception Process


Selective Exposure

Selective Attention

Selective Comprehension

Selective Retention

Combining Color With Black-and-White Is Intended to Gain Attention

Two Forms of Evaluative Criteria

Evaluative Criteria Objective Price Warranty Service Subjective Style Appearance

Image

Consumer Attitudes Focus on Objects


Individuals Products

Ads

Brands

Attitudes Toward:
Media Companies

Retailers

Organizations

Ways to Change Attitudes


Change Beliefs About An Important Attribute

Change Perceptions of the Value of An Attribute Add a New Attribute To the Attitude Formation Mix Change Perceptions or Beliefs About a Competing Brand

Purchase Intention
Integration Process and Decision Rules Purchase Decision Post-purchase Evaluation

How Consumers Learn

Thinking

Conditioning

Modeling

Intellectual evaluation comparing attributes with values

Based on conditioning through association or reinforcement

Based on emulation (copying) of respected examples

Classical Conditioning Process

Unconditioned stimulus
(waterfall)

(freshness, purity)

Unconditioned response

Association develops through contiguity and repetition Conditioned stimulus Conditioned response

(Brita water filtration pitcher)

(freshness, purity)

Classical Conditioning for Cosmetics

Instrumental Conditioning Process

Behavior (consumer uses product or service)

Positive or negative consequences occur (reward or punishment)

Increase or decrease in probability of repeat behavior (purchase)

Cognitive Learning Process


Goal

Purposive Behavior Insight

Goal Achievement

External Influences on Consumers


Culture

Subculture Social class Reference groups Situations

Subcultural Ads Appeal to Shared Beliefs, Values and Norms

Agency and IMC Understanding Various Functions of agency with respect to IMC

Dr. Varsha Jain

Participants in the IMC Process

Advertiser (Client) Advertising Agency Media Organizations Marketing Communications Specialist Organization Collateral Services Direct Response Agencies Sales Promotion Agencies

Public Relations Firms

Interactive Agencies

Advertising Department Under Centralized System


President

Production

Finance

Marketing

Research and Development

Human Resources

Advertising

Marketing Research

Sales

Product Planning

Pros & Cons of Centralization


+ Positive
Better Communications

- Negative
Less Goal Involvement

Fewer Personnel

The Centralized System

Longer Response Time

Continuity Of Staff

Cant Do Multiple Product Lines

Decentralized Brand Management System


Corporate Production Finance Marketing Research and Development Human Resources

Sales

Product Management Brand Manager Brand Manager Ad agency Sales Promotion Merchandising

Marketing Services Advertising Department Marketing Research

Ad agency

Package Design

Pros & Cons of Decentralization


+ Positive
Concentrated Attention

- Negative
Lack of Experience in IMC The Decentralized System Competition for Resources

Rapid Problem Response

Increased Flexibility

Lack of Authority

Ad Agencies Have Skilled Specialists

Artists

Writers

Researchers

Photographers

Media Analysts

Other Skills

Full-Services Agencies
Planning advertising Creating advertising Producing advertising Strategic market planning Sales promotion and training Trade show materials
Dr. Varsha Jain

Full Range of Marketing Communication and Promotion Services

Performing research Selecting media

Package design

Non-Advertising Services

Public relations and publicity

Typical Full-Service Agency Organization

Board of Directors President VP Creative Services Writers


Art Directors

VP Account Services Account Supervision Account Executive Media

VP Marketing Services Research Sales Promotion Personnel

VP Management and Finance Office Management Accounting Finance

TV Produciton

Print Production

------

---------

Services Provided by Agencies


Agency Services
Account Service
The link between agency and client Managed by the Account Executive

Marketing Services
Research department may design and execute research programs Media department may analyze, select and contract media resources

Creative Services
Creation and execution of ads Copywriters, artists, other specialists

Others: Creative Boutiques

Creative Boutiques

Provide Only Creative Services

Full-Service Agencies May Subcontract With Creative Boutiques Other Functions Provided by the Internal Client Departments

Coca Colas in-house boutique created this popular spot

Others: Media Specialist

Media Buying Services

Specialize in Buying Media, Especially Broadcast Time

Agencies and Clients Develop Media Strategy

Media Buying Organizations Implement the Strategy and Buy Time and Space

Methods of Agency Compensation


Commissions Method

Cost-Plus Agreements

Compensation Methods

Percentage Charges Fee Arrangements Incentive-Based Payment

Evaluating Agencies 1. Type of assessments: financial, audit and qualitative audit Financial Audit: Cost and expenses, number of employees and payment, payment to media, payment to outside suppliers. Qualitative Audit: Planning, fresh ideas, timing Developing, implementation

Why Agencies Lose Clients

Poor performance Unrealistic demands

Personnel changes

Changes in strategy Declining sales

Poor communications

Changes in size

Payment conflicts
Policy changes

Personality conflicts

Conflict of interests

How Agencies Gain Clients

Referrals

Presentations

Solicitations

Public Relations

Image, Reputation

Direct Response Agency Activities

Data Base Management Direct Mail

Media Services

Direct Response Agencies

Creative

Research

Production

Activities performed by Sales Promotion Agencies


Promotion Planning Creative Work Research Coordination With Advertising Premium Design Contest/Sweepstake s Development Data Base Marketing

Functions performed by Public Relations Firms

Strategy Development

Damage Control

Generating Publicity

Program Planning Lobbying Public Affairs Image Portrayal

Dr. Varsha Jain

Functions performed by Interactive Agencies


Web Banner Ads Web Sites

Interactive Media Creation CD-ROMs Kiosks

Audio

Video

Digital Content
Animation
Dr. Varsha Jain

Special Effects

Marketing Research Companies


Planning and Implementing Research

Information Application
Analysis and Interpretation

Qualitative & Quantitative

Primary Data Collection

Secondary Data Collection


Dr. Varsha Jain

Communication Models in IMC

Dr. Varsha Jain

The Communication Process

Dr. Varsha Jain

There are many forms of encoding


Encoding

Verbal
Spoken Word Written Word

Graphic
Pictures

Musical
Arrangement Instrumentation

Animation
Action/ Motion Pace/ Speed

Drawings
Charts

Song Lyrics
Dr. Varsha Jain

Voices

Shape/ Form

The Semiotic Perspective


Three Components to every marketing message
Object Brand such as Marlboro

Interpretant/ intended meaning (masculine,rugged individualistic)

Sign or symbol representing intended meaning (Cowboy)

Dr. Varsha Jain

What is the symbolic meaning of the Air India Maharaja?

Dr. Varsha Jain

Images Encoded in Pictures Convey Emotions Very Powerfully

+
Dr. Varsha Jain

Message: Personal Communication


Vocabulary

Verbal

Grammar Inflection

Gesture

Nonverbal

Facial Expression
Body Language

Dr. Varsha Jain

Communications Channels
Personal Selling

Personal Channels
Word of Mouth Print Media

Nonpersonal Channels
Broadcast Media
Dr. Varsha Jain

Receiver
Different Worlds
Sender Experience Receiver Experience

Moderate Commonality
Sender Experience Receiver Experience

High Commonality
Sender Experience
Dr. Varsha Jain

Receiver Experience

Levels of Audience Aggregation


MMarkets ass

Market Segments Niche Markets Small Groups Individuals

Dr. Varsha Jain

Models of the Response Process

Dr. Varsha Jain

Models of Obtaining Feedback


Effectiveness Test
Circulation Reach Listener, Reader, Viewer Recognition Recall, Checklists Brand Attitudes, Purchase Intent Recall Over Time Inventory, POP Consumer Panel
Dr. Varsha Jain

Persuasion Process
Exposure, Presentation Attention

Comprehension
Message Acceptance/ Yielding Retention Purchase Behavior

Foote, Cone & Belding Grid


Thinking Feeling

1
Informative, learn, feel, do (economic)

2
Affective(feel, learn, do,

The Thinker
Car, House (usually long ad copy format)

The Feeler
Jewelry, Fashion (emotions and images)

psychological)

4
SelfSatisfaction, do feel, learn,social

Habit Formation FMCG


Reminder small ads of 10 seconds

The Do, learn ,feel, responsive

The Reactor Cigarette


Attention via Surrogate Advertising

Cognitive Response

A method for examining consumers cognitive processing of advertising messages by looking at their cognitive responses to hearing, viewing, or reading communications. Examines types of thoughts that are evoked by an advertising message. Consumers write down or verbally report their reactions to a message.
Dr. Varsha Jain

A Model of Cognitive Response

Dr. Varsha Jain

Cognitive Response Categories


Product/Message Thoughts Counter Arguments Support Arguments

Source - Oriented Thoughts Source Derogation Source Bolstering

Ad - Execution Thoughts Thoughts About the Ad Itself


Dr. Varsha Jain

Affect Attitude Toward the Ad

Elaboration Likelihood Model


Focuses on the way consumers respond to persuasive messages based on the amount and nature of elaboration or processing of information
Routes to attitude change

Central route to persuasion - ability and motivation to process a message is high and close attention is paid to message content

Peripheral route to persuasion - ability and motivation to process a message is low and receiver focuses more on peripheral cues rather than message content

Dr. Varsha Jain

Celebrity Endorsers Can Be Peripheral Cues

Dr. Varsha Jain

How Advertising Works


Advertising Input Message content, media scheduling, repetition Filters Motivation, ability, (involvement) Consumer Cognition, Affect, Experience Consumer Behavior Choice, consumption, loyalty, habit, etc.
Dr. Varsha Jain

Communication, strategy and process in IMC

Dr. Varsha Jain

Promotional Planning Elements


Promotional Planning 1
Receiver/ Comprehension

2
Channel/ presentation

3
Message/ yielding

4
Source/ attention

Can the receiver comprehend the ad?

Which media will increase presentation?

What type of message will create favorable attitudes?

Who will be effective in getting consumers attention?

Dr. Varsha Jain

Source Attributes and Receiver Processing Modes

Source Attribute Power

Process Compliance

Attractiveness

Identification

Credibility

Internalization

Dr. Varsha Jain

Source Credibility
Knowledge

Source

Skill Expertise Trustworthy

Information

Unbiased
Objective

Dr. Varsha Jain

Endorsement by Both a Celebrity and an Expert

Dr. Varsha Jain

Source Attractiveness

Similarity

Familiarity

Likeability

Resemblance between the source and recipient of the message

Knowledge of the source through repeated or prolonged exposure

Affection for the source resulting from physical appearance, behavior, or other personal traits

Dr. Varsha Jain

Attractive Celebrities Are Often Used in Cosmetic Ads

Risks of Using Celebrities


The celebrity may overshadow the product being endorsed

The celebrity may be overexposed, reducing his or her credibility

The target audience may not be receptive to celebrity endorsers

The celebritys behavior may pose a risk to the company

Dr. Varsha Jain

Modes of Celebrity Presentation

Endorsements

Identification

Testimonials

Celebrity
Representatives Placements

Dramatizations

Dr. Varsha Jain

Recall and Presentation Order

Beginning

Middle

End

Dr. Varsha Jain

Message Appeal Choices

Appeal mostly to the logical, rational minds of consumers

Appeal mostly to the feelings and emotions of consumers

Appeal to both the logical, rational minds of consumers and to their feelings and emotions

Dr. Varsha Jain

Message Appeal Options


Comparative Ads Fear Appeals Humor Appeals

May be especially
useful for new brands

May stress
physical danger or threats to health

They can attract


and hold attention

Often used for


brands with small market share

May identify
social threats: disapproval or rejection

They are often the


best remembered

They put the


consumer in a positive mood

Frequently use in
political advertising

May backfire if the


level of threat is too high

Dr. Varsha Jain

An Indirect Comparative Ad

Fear Appeals and Message Acceptance

Dr. Varsha Jain

Threat Plus Solution Gently Persuades

+
Dr. Varsha Jain

Pros and Cons of Using Humor


Pros
Aids Attention and Awareness May Aid Retention of the Message

Cons
Does Not Aid Persuasion in General May Harm Recall and Comprehension

Creates a Positive Mood and Enhances Persuasion


May Aid Name and Simple Copy Registration May Serve As a Distracter, Reducing Counterarguing

May Harm Complex Copy Registration


Does Not Aid Source Credibility Is Not Effective in Bringing About Sales May Wear Out Faster Than Non-humorous Ads

Dr. Varsha Jain

Clever Execution of Humor

Dr. Varsha Jain

Self versus External Paced Media

Self-Paced Media Newspapers Magazines Direct Mail Internet Vs.

Externally Paced Media

Radio
Television

Dr. Varsha Jain

Creative Strategies in IMC

Advertising Creativity

Creative Strategy

Determining what the advertising message will say or communicate

Creative Tactics

Determining how the message strategy will be executed

The Ideal Power Idea Should . . .

Be Describable in a Simple Word or Phrase

Be Likely to Attract the Prospects Attention


Revolve Around the Clinching Benefit Allow You to Brand the Advertising Let Prospects

Vividly Experience the Goods

Two Perspectives on Advertising Creativity


The ability to generate fresh, unique and appropriate ideas that can be used as solutions to communication problems.
Its not creative unless it sells Only artistic value and originality count

Suits

Artists

Young's Creative Process


Immersion
Getting Raw Material, Data, Immersing One's Self in the Problem to Get the Background. Ruminating on the Data Acquired, Turning It This Way and That in the Mind.

Digestion
Incubation Illumination Verification

Ceasing Analysis and Putting the Problem Out of Conscious Mind for a Time.
A Sudden Inspiration or Intuitive Revelation About a Potential Solution. Studying the Idea, Evaluating It, and Developing It for Practical Usefulness.

Wallas View of the Creative Process

Illumination Seeing the Solution

Preparation Gathering Information

The Creative Process


Verification Refining the Idea Incubation Setting Problem Aside

Getting Creative Input


Use the product to become familiar with it!

Read anything related to the product or market!

Listen to what people are talking about!

Work in and learn about the clients business!

Ask everyone involved for information!

Verification and Revision of Ideas


Evaluate Ideas Generated Reject Inappropriate Ideas Objective Refine Remaining Ideas Give Them Final Expression

Directed Focus Groups


Message Communication Studies

Portfolio Tests
Viewer Reaction Profiles

Techniques

The 10 greatest ad slogans of all time


Company or Brand
1. De Beers 2. Nike 3. Coca Cola 4. Miller Lite 5. Avis 6. Maxwell House

Campaign Theme
Diamonds are forever Just do it! The pause that refreshes Tastes great, less filling We try harder Good to the last drop

7. Wheaties
8. Clairol 9. Morton Salt 10. Wendys

Breakfast of champions
Does she . . . or doesnt she? When it rains it pours Wheres the beef?

An Advertising Campaign
Integrated Interrelated Marketing Communication Activities Coordinated

Centered on a Theme or Idea In Different Media Over a Time Period

Advertising Campaign Themes

The central message that will be communicated in all of the various IMC activities

Pepsi

BMW

Kingfisher

Young Generation

The Ultimate Driving Machine

Good times

Successful Long-Running Campaigns


Company or Brand
Nike Allstate Insurance Hallmark cards Budweiser Intel State Farm Insurance Chevy Trucks Dial soap

Campaign Theme
Just do it Youre in good hands with Allstate When you care enough to send the very best

This Buds for you


Intel inside Like a good neighbor, State Farm is there Like a rock Arent you glad you use Dial?

Building a Copy Platform Outline

6.

Supporting 5.

Information Creative

and Strategy

Requirements Statement

4. Selling Idea or Key Benefits to Communicate

3. Specify Target Audience

2. Advertising and Communications Objectives 1. Basic Problem Advertising Must Address

Major Selling Ideas


Use a Unique Selling Position Create a Brand Image

Seeking the Major Idea

Positioning

Find the Inherent Drama

Approaches to the Major Selling Idea: USP


Unique Selling Proposition Benefit Unique Potent

Buy this produce and you'll benefit this way or enjoy this reward

Must be unique to this brand or claim; something rivals can't or don't offer

The promise must be strong enough or attractive enough to move people

Perspectives of Great Ad Men on the Major Selling Idea


David Ogilvy
Brand image or personality is particularly important when brands are similar

Leo Burnett
Find the inherent drama or characteristic of the product that makes consumers buy it

Every ad must contribute to the complex symbol that is the brand image.

(Inherent drama) is often hard to find but it is always there, and once found it is the most interesting and believable of all advertising appeals.

Creating a Brand Image

Used when competing brands are so similar it is difficult to find or create a unique attribute

The creativity sales strategy is based on a strong, memorable brand identity through image advertising

Often used for products such as soft drinks, perfume, liquor, clothing, airlines

Approaches to the Major Selling Idea: Inherent Drama

Inherent Drama

Messages generally presented in a warm, emotional way Hallmark, Maytag, Kellogg

Focus on consumer benefits with an emphasis on the dramatic element in expressing them

Approaches to the Major Selling Idea: Positioning

Positioning

Establish a particular place in the customers mind for the product or service

Based on product attributes/ benefits, price/quality, use or application, type of user, problem solved

Creative Strategy: Implementation and Evaluation

Dr. Varsha Jain

Appeals and Execution Style


The approach used to attract the attention of consumers To influence consumer feelings toward a product, service or cause

Advertising Appeals

Execution Style

The way an appeal is turned into an advertising message

The way the message is presented to the consumer

Dr. Varsha Jain

Types of Rational Appeals

Feature: Focus on dominant traits of the product Competitive: Makes comparisons to other brands

Price: Makes price offer the dominant point


News: News announcement about the product

Popularity: Stresses the brands popularity


Dr. Varsha Jain

A Rational Appeal

Dr. Varsha Jain

Emotional Appeals: Personal States or Feelings


Achievement Actualization Ambition Stimulation Excitement Grief Joy Nostalgia Pride Security Sentiment
Dr. Varsha Jain

Accomplishment Affection Arousal Comfort Fear Happiness Love Pleasure Safety Self-esteem Sorrow

Emotional Appeals: Social-Based Feelings

Approval Acceptance

Affiliation Embarrassment

Status

Social-Based Feelings

Belonging

Respect Rejection Recognition

Involvement

Dr. Varsha Jain

Emotional Appeal

Dr. Varsha Jain

Transformational Ads

Feelings

Images

Meanings

The ads create . . .

Beliefs

Richer More Exciting

It must make the product use experience . . .

Warmer More Enjoyable

Dr. Varsha Jain

Levels of Relationship with Brands (Ray)

Emotions

Personality
Product Benefits

Dr. Varsha Jain

Ad Execution Techniques
Straight-sell Scientific Demonstration Comparison Dramatization Humor
Dr. Varsha Jain

Slice of life Testimonial Animation Personality Symbol Fantasy

Testimonial

Demonstration

Dr. Varsha Jain

Creative Tactics: Print Ad Components


Headline: Words in the Leading Position of the Ad Subheads: Smaller Than the Headline, Larger Than the Copy Body Copy: The Main Text Portion of a Print Ad Visual Elements: Illustrations Such As Drawings or Photos Layout: How Elements Are Blended Into a Finished Ad
Dr. Varsha Jain

Effective Headline

Print Ad Layout

Format

Arrangement of the Elements on the Printed Page Expressed in Columns, Column Inches or Portions of a Page

Size

Color

Black & White or Two-, Three-, or Fourcolor Printing


Marginal and Intermediate Space That Remains Unprinted

White Space

Dr. Varsha Jain

Creative Tactics: Television

Video

What is seen.

Audio

What is heard. Maybe Voice, Sound, or Music

Jingles

The Musical Part

Imagery

The way the visuals are presented

Dr. Varsha Jain

Production Stages for TV Commercials

Preproduction Production

All work before actual shooting, recording

Period of filming, taping, or recording


Work after spot is filmed or recorded

Postproduction

Dr. Varsha Jain

Preproduction Tasks

Select a Director

Preproduction Meeting

Choose Production Company

Preproduction
Production Timetable Cost Estimation and Timing
Dr. Varsha Jain

Bidding

Production Tasks

Production

Location Versus Set Shoots

Night/weekend Shoots

Talent Arrangements

Dr. Varsha Jain

Postproduction Tasks
Editing Processing

Release/ Shipping Postproduction Duplicating

Sound Effects

Audio/Video Mixing

Client/agency Approval
Dr. Varsha Jain

Opticals

Evaluation Guidelines for Creative Output


Consistent With Brands Marketing Objectives?

Consistent With Brands Advertising Objectives?


Consistent With Creative Strategy, Objectives? Does It Communicate What Its Suppose to? Approach Appropriate to Target Audience? Communicate Clear, Convincing Message? Does Execution Overwhelm the

Message? Appropriate to the Media Environment? Is the


Advertisement Truthful and Tasteful?

Dr. Varsha Jain

Media Planning and Strategy

Dr. Varsha Jain

Media Terminology
Media Planning Media Objectives Media Strategy Media Broadcast Media A series of decisions involving the delivery of messages to audiences Goals to be attained by the media strategy and program Decisions on how the media objectives can be attained The various categories of delivery systems, including broadcast and print media Either radio or television network or local station broadcasts
Dr. Varsha Jain

Media Terminology
Print Media Media Vehicle Publications such as newspapers, magazines, direct mail, outdoor, etc. The specific carrier within a medium category Number of different audience members exposed at least once in a given time period Coverage The potential audience that might receive the message through the vehicle The number of times the receiver is exposed to the media vehicle in a specific time period
Dr. Varsha Jain

Reach

Frequency

Developing the Media Plan


Situation Analysis Marketing Strategy Plan Creative Strategy Plan

Setting Media Objectives Determining Media Strategy Selecting Broad Media Classes Selecting Media Within Class

Media Use Decision Broadcast

Media Use Decision Print


Dr. Varsha Jain

Media Use Decision Other Media

Media Planning Difficulties


Measurement Problems Lack of Information

Problems in Media Planning

Time Pressure
Dr. Varsha Jain

Inconsistent Terms

Developing the Media Plan


Analyze the Market

Establish Media Objectives Develop Media Strategy Implement Media Strategy

Evaluate Performance
Dr. Varsha Jain

Brand and Category Analysis

Brand Development Index


Percentage of brand to total sales in market
BDI = Percentage of total population in market X 100

Dr. Varsha Jain

Brand and Category Analysis

Category Development Index


Percentage of total product category sales in market
CDI = Percentage of total population in market X 100

Dr. Varsha Jain

Brand and Category Analysis

High BDI

Low BDI

High market share Good market potential


High market share Monitor for sales decline

Low market share Good market potential

Low market share Poor market potential

Dr. Varsha Jain

Brand and Category Analysis


High BDI Low BDI

The market usually represents good sales potential for both the product and the brand.

The product category shows high potential but the brand isnt doing well; the reason should be determined.

The category isnt selling Both the product category well but the brand is; and the brand are doing may be a good market in poorly; not likely to be a which to advertise but good place to advertise. should be monitored for sales decline.

Dr. Varsha Jain

Developing Media Plan: Media Mix

Target Audience Coverage


Population excluding target market Target market Media coverage Media overexposure Target Market Proportion Full Market Coverage Partial Market Coverage Coverage Exceeding Market

Three Scheduling Methods

Continuity

Flighting

Pulsing

Jan

Feb Mar Apr May Jun Jul

Aug Sep Oct Nov Dec

Reach and Frequency


A. Reach of One Program B. Reach of Two Programs

Total market audience reached C. Duplicated Reach of Both

Total market audience reached D. Unduplicated Reach of Both

Total reached with both shows

Total reach less duplicate

GRP = Reach X Frequency

Graph of Effective Reach

Dr. Varsha Jain

Marketing Factors Determining Frequency

Marketing Factors

Brand Loyalty

Brand Share

Usage Cycle

Brand History

Share of Voice
Dr. Varsha Jain

Purchase Cycles

Target Group

Message Factors Determining Frequency


Message or Creative Factors

Message Complexity Message Uniqueness New Vs. Continuing Campaigns

Image Versus Product Sell


Message Variation Wearout Advertising Units
Dr. Varsha Jain

Media Factors Determining Frequency


Clutter Scheduling Repeat Exposures

Media Factors
Attentiveness

Editorial Environment Number of Media Used


Dr. Varsha Jain

Determining Relative Cost of Media-Print

Cost per thousand (CPM)

CPM =

Cost of ad space (absolute cost)

X 1,000

Circulation

Dr. Varsha Jain

Determining Relative Cost of Media-Broadcast

Cost per rating point (CPRP) CPRP =


Cost of commercial time Program rating

Dr. Varsha Jain

Television Pros and Cons


Advantages
Mass Coverage High Reach Impact of Sight, Sound and Motion High Prestige Low Cost Per Exposure Attention Getting Favorable Image
Dr. Varsha Jain

Disadvantages
Low Selectivity Short Message Life High Absolute Cost High Production Cost Clutter

Radio Pros and Cons


Advantages
Local Coverage Low Cost

Disadvantages
Audio Only Clutter Low Attention Getting Fleeting Message Cost

High Frequency
Flexible Low Production

Well-segmented Audience

Dr. Varsha Jain

Magazine Pros and Cons


Advantages
Segmentation Potential Quality Reproduction High Information Content Longevity Multiple Readers

Disadvantages
Long Lead Time for Ad Placement Visual Only Lack of Flexibility

Dr. Varsha Jain

Newspaper Pros and Cons


Advantages
High Coverage Low Cost Short Lead Time for Placing Ads Ads Can Be Placed in Interest Sections Timely (Current Ads) Reader Controls Exposure Can Be Used for Coupons
Dr. Varsha Jain

Disadvantages
Short Life Clutter Low Attention Getting Poor Reproduction Quality Selective Reader Exposure

Outdoor Pros and Cons


Advantages
Location Specific High Repetition

Disadvantages
Sort Exposure Time Short Ads Poor Image Local Restrictions

Easily Noticed

Dr. Varsha Jain

Direct Mail Pros and Cons


Advantages
High Selectivity Reader Controls Exposure High Information Content Repeat Exposure Opportunities

Disadvantages
High Cost Per Contact Poor Image (Junk Mail) Clutter

Dr. Varsha Jain

Internet Pros and Cons


Advantages
User Selects Product Information

Disadvantages
Limited Creative Capabilities Websnarl (Crowded Access) Technology Limitations Few Valid Measurement Techniques Limited Reach

User Attention and Involvement


Interactive Relationship Direct Selling Potential Flexible Message Platform

Dr. Varsha Jain

Evaluation of Broadcast & Print Media In IMC


Dr. Varsha Jain

Television Advantages
Creativity and Impact

Coverage and Cost Effectiveness Captivity and Attention

Selectivity and Flexibility


Dr. Varsha Jain

Television Disadvantages
Fleeting Message Limited Attention Zipping Zapping Negative Evaluation
Dr. Varsha Jain

Cost

Negative Factors

Low Selectivity

Clutter

Distrust

TV Advertising Works Best When


The budget is large enough to produce high quality commercials.

The media budget is sufficient to generate and sustain the number of exposures needed.

The market is large enough and easily reachable through a specific network, station, or program.

There is a genuine need for a medium with high creative potential to exert a strong impact.
Dr. Varsha Jain

Network Versus Spot


Affiliated stations are linked

Network
Purchase transactions are simplified

Spot & Local

Commercials shown on local stations May be local or national spot commercials


Dr. Varsha Jain

Common Television Dayparts


11 10 9 8 12 1 2 10 9 8 11 12 1 2

AM
7 5

3 4

PM
7 5

3 4

Morning

Prime Time Late News Late Fringe Late Night

Daytime Early Fringe


Prime-Time Access
Dr. Varsha Jain

Cable Television (CATV)

Characteristics

Advantages

Limitations

1. National, regional, and local available. 2. Targets specific geographic areas.

1. Highly selective narrowcasting. 2. Reaches specialized markets. 3. Low cost and flexibility.

1. Overshadowed by major networks. 2. Audience is fragmented. 3. Lacks penetration in major markets.

Dr. Varsha Jain

Measuring TV Audiences
Television Households

Audience Measures

Program Rating

Share of Audience
Dr. Varsha Jain

Households Using TV

TV Audience Measures
Program Rating

Rating =

House Holds tuned to show Total National House Holds

Share of Audience

Share =

House Holds tuned to show Natl. House Holds using TV

Dr. Varsha Jain

Radio Differs from TV


Is more limited communication

Offers only an audio message

Costs much less to produce

Has less status and prestige


Dr. Varsha Jain

Costs much less to purchase

Buying Radio Time


National networks

Network Radio

Regional/area networks

A multitude of syndicated programs About 20% of all spots Allows great flexibility, targeting Purchase transaction can be difficult Nearly 80% of advertisers are local Local CATV is becoming competitive
Dr. Varsha Jain

National Spot

Local Radio

Dayparts for Radio


11 10 9 8 12 1 2 10 9 8 11 12 1 2

AM
7 5

3 4

PM
7 5

3 4

Morning Drive Time Daytime

Nighttime All Night

Afternoon/Evening Drive Time


Dr. Varsha Jain

Classifications of Magazines

By Audience

By Geography

By Size

Consumer Magazines Special Magazines

Local Regional National

Large Flat Standard Small or Pocket

Business Magazines

Dr. Varsha Jain

Consumers

Dr. Varsha Jain

Magazines Targets Professions or Industries

Dr. Varsha Jain

Consumer Magazines Target Specific Interests

Dr. Varsha Jain

Top-Selling Magazines: 2006

Media Kits Provide Information on Readers

Dr. Varsha Jain

City Magazines Provide Geographic Targeting

Dr. Varsha Jain

Special Magazine Features


Bleed Pages (i.e. Without margin till End of the page ) Creative Space (left out space in the magazine, used by the ads) Inserts (Separate ads)

Gatefolds (extra large ads folded within the magazine)

Cover Positions (ads on cover page)

Dr. Varsha Jain

Magazine Circulation Concepts


Primary Circulation

(average number of copies


distributed) Total Audience (Entire target segment) Guaranteed Circulations (minimum circulation the Publications guarantee to advertisers)

Controlled Circulation, only

Verified Circulation,

for industry experts and


qualified readers. Pass-Along Readership, not actual buyer but reads from others.

Confirmed by the auditors on


free and paid publications

Dr. Varsha Jain

The Future of Magazines


Declining Ad Revenues

Stronger Editorial Platforms Circulation Management Cross-Mag. & Media Deals

Trends, Trends, Trends

Database Marketing Advances in Technology Online Delivery Methods


Dr. Varsha Jain

Newspaper Classifications
Publication Frequency

Daily
Weekly National

Type

Special-audience (for particular group)

Supplements
Standard (15 wide and 22.75 long

Size
Tabloid (Compact size of newspaper)

Ethnic, religious, etc.


Audience Type
Dr. Varsha Jain

Business, financial, etc.

Characteristics of Newspapers

The dominant advertising vehicle Account for good amount of ad expenses Huge number of daily papers in print

Dailys read by about 54% of adults Main


community medium

Local ads provide most of revenue


Dr. Varsha Jain

Unique Newspaper Features


Mass audience

Cross-section of population
Local geographic coverage Wide range of content, subjects Selective readership by area Timely coverage, daily issues

Readership concentrated in time


Permanent, durable record
Dr. Varsha Jain

Newspaper Characteristics
Read by almost all consumers

Wide Audience

Read daily in an ordered way Readers look at over 3/4 of all pages

Few limitations on ad size

Spot and full color available


Many shapes, sizes, paper, & printing
Dr. Varsha Jain

Offer Flexibility

Rate Terminology

Split Runs (two or more versions of ads printed in alternative copy of magazine.)

Split Run Rates


Differential Rates (deviates from standard rate And applied in special situations.) Insertion Rates (type and number of insertions)

Preferred Position (rate paid by an advertiser for particular position)


Color Rates (Payment made on the basis of colors selected, black & white, 4 colors or more)

Combination Rates (reduced rates offered to place two or more ads by the same publisher) Open Rates (fixed by negotiation, one time rate) Flat Rates (fixed rate)

Run-of-Paper [ROP] (ad can appear at any location)

Short Rates (Penalty charge for not meeting minimum ads)

Earned Rates (based on frequency and volume of ads)

National Rates

Local Rates (rate offered to local advertisers that is l ower than the rate offered to national advertisers.)

Terms of the Trade

Dr. Varsha Jain

Support Media in IMC

Dr. Varsha Jain

The Role of Support Media

To reach those people in the target audience that primary media (TV, print, etc.) may not have reached and to reinforce, or support, their messages.

Dr. Varsha Jain

Support Media

Support media are also referred to as:

Alternative Media

Nonmeasured Media

Nontraditional Media

Dr. Varsha Jain

Examples of Traditional Support Media


Outdoor Advertising
Aerial Advertising (Uses Ballons, aircrafts etc.) Mobile Billboards

Traditional Support Media

In-store Media Promotional Products Yellow Pages Other Media


Dr. Varsha Jain

Out-of-Home Media - A Diverse Cross-Section of Formats

specified morning and afternoon hours to catch more attentions.

Dr. Varsha Jain

Characteristics Of Outdoor Advertising


Reach
Can reach a variety of audiences very quickly Potential for High frequency of impressions Many options available to reach specific groups Low cost per exposure depending on medium used Size, shape, lighting, motion, and special impressions may lead to impact
Dr. Varsha Jain

Frequency
Flexibility Cost Impact

Other Out-of-Home Media


Aerial Advertising Sky Banners Blimps Sky Writing (writing in sky)

Mobile Billboards Trucks Vans Trailers

In-Store Media Signs


Dr. Varsha Jain

Video

Kiosks

Blimps Carry the Message High and Wide

Dr. Varsha Jain

Other Miscellaneous Outdoor Media


Wall Drawings Sidewalk Signs Parking Meters ATM Displays
Dr. Varsha Jain

Car Top Signs Lamp

Poles Media Options

Gasoline Pumps Trash Cans

Trucks Become Billboards on Wheels

Dr. Varsha Jain

Bus Stops Can Advertise Too!

Dr. Varsha Jain

Transit Advertising Media


Platform Posters

Station Posters

Terminal Posters

Inside Cards
Dr. Varsha Jain

Outside Posters

Transit Advertising

Dr. Varsha Jain

Terminal Advertising Gains Attention

Dr. Varsha Jain

Transit Advertising Pros & Cons

Advantages

Disadvantages

Exposure Frequency

Reach
Mood of the Audience

Dr. Varsha Jain

Forms of Yellow Pages


Internet Yellow Pages

Specialized directories

Other Services

Dr. Varsha Jain

Yellow Pages
Advantages
Wide Availability Action Oriented Low Cost Frequency Non-Intrusiveness

Disadvantages
Market Fragmentation

Timeliness
Lack of Creativity Lead Times Clutter Size Requirements

Dr. Varsha Jain

Advertising in Movie Theatres

Dr. Varsha Jain

Advertising in Movie Theatres


Advantages High Exposure Audience Mood Disadvantages Irritation Cost (Maybe)

Cost (Maybe)
Good Recall Lack of Clutter Proximity Segmentation
Dr. Varsha Jain

Types of In-Flight Advertising (within the flight)

Magazines

Catalogs

Radio

Videos

Dr. Varsha Jain

In-Flight Advertising
Advantages A Desirable Audience A Captured Audience Low Relative Cost Segmentation Possibilities Disadvantages

High Potential for Irritation


Limited Availability of Medium Lack of Audience Attention Potential for Rapid Wearout

Dr. Varsha Jain

In-Flight Magazines Enjoy a Captive Audience

Dr. Varsha Jain

Miscellaneous Other Media


Parking lot ads

Videogame ads

Bathroom ads

Others
Dr. Varsha Jain

Place-based media (depending upon location)

Advertising in Cricket Field

Advertising in Computer Games

Bathroom Ads

Dr. Varsha Jain

Direct Marketing

Direct Marketing includes, direct mail, telemarketing, interactive TV, print, internet which provides direct response from the consumer.

Direct Marketing Strategies in IMC 1. Combining direct marketing with advertising. Toll free number in ads 2. Combining direct marketing with Public Relations. telemarketing 3. Combining direct marketing with Personal Selling. Direct mail to prospective buyers for inviting them for a new product launch. Showroom for test drive of new car. 4. Combining direct marketing with Sales Promotion. Mail for inviting people to participate in contest, such as end of season sale. 5. Combining direct marketing with Support Media. Direct mail with incentive and outdoor advertising

Process of Direct Marketing 1. Objectives: Developing Database Improving selection of market segments. 2. Repeat purchases 3. Cross selling 4. CRM (Customer Relationship Management) 5. Effectiveness of database, recency, frequency and monetary transaction between company and consumer. (identifying trends and buying patterns)

Methods of Direct Selling


1. Repetitive Person to Person, sales person to buyer at higher frequency
2. Non repetitive Person to Person, sales person to buyer at not frequency 3. Party plans, sales person selling to group of consumers.

Advantages of Direct Marketing


1. Selective reach 2. Segmentation capabilities 3. Frequency

4. Timing
5. Personalized 6. Cost 7. Immediate Feedback

Disadvantages of Direct Marketing


1. Image, Irritating 2. Accuracy, databases 3. Content, mood creation

4. Printing cost, mailers and catalogues


5. Do not contact list

Sales Promotion

McGraw-Hill/Irwin

Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Sales Promotion
A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.

An extra incentive to buy

A tool to speed up sales

Targeted to different parties

Sales Promotion Vehicles


Consumer-Oriented
Samples Coupons Premiums Contests/sweepstakes Refunds/rebates Bonus Packs Price-off deals Frequency programs Event marketing

Trade-Oriented
Contests, incentives Trade allowances

Point-of-purchase displays
Training programs Trade shows Cooperative advertising

Media Often Delivers a Promotion Message

Sales Promotion Increases


Growing power of retailers

Reasons

Declining brand loyalty Increased promotional sensitivity Brand proliferation Fragmentation of consumer markets Short-term focus of marketers Increased accountability Competition Clutter

Consumer Franchise-Building Promotions


Promotional Objectives
Communicate distinctive brand attributes Develop and reinforce brand identity

Build long-term brand preference

Techniques and Practices


Frequency programs encourage repeat purchase Sweepstakes & contests to build equity, increase involvement Premium offers that reinforce the brand image and help build equity

Nonfranchise-Building Promotions

Objectives Accelerate the purchase decision process Generate an immediate sales increase

Limitations Do not identify unique brand features Do not contribute to brand identity or image

Nonfranchise-Building Promotions
May Include . . .
Price-off deals Bonus packs Rebates or refunds

Shortcomings
Trade promotions benefits may not reach customers Customers may buy price rather than brand equity

If they do, they may lead only to price reductions

Objectives of Consumer-Oriented Promotions


To increase consumption of an established brand To obtain trial and purchase To defend (maintain) current customers

Objectives

Enhance IMC efforts and build brand equity

To target a specific segment

Sampling

Sampling Works Best When

The products are of relatively low unit value

The product can be broken into a small piece or size that reflects the full features and benefits

The purchase cycle is relatively short

Sampling Methods

Door-to-door
Methods Direct mail In-store On package Event

Newspaper/magazine insert Internet sites

Couponing

The oldest and most widely used sales promotion tool

Nearly 240 billion distributed each year in the US

85% of consumers use coupons; 21% use them regularly

Pros and Cons of Coupons


Advantages
Appeals to price sensitive consumer Can offer price break without retailers co-op Effective way to induce trial of products

Disadvantages
Hard to tell how many consumers use them and when Often used by loyal consumers who may purchase anyway Declining redemption rates and high costs of couponing Misredemption and fraud

Can be way to defend market share and encourage repurchase

Coupon Distribution

Other Magazines In / On Pack Direct Mail

Newspaper Coop Newspaper ROP Freestanding Inserts

Popular Coupons

Coupons are Available Electronically

Premiums

An offer of an item, merchandise, or service, free or at a low cost, that is an extra incentive for customers

Types of Premiums
Self-liquidating: consumer required to pay some or all of the cost of the premium

Free: Only requires purchase of the product

Airline Miles are a Popular Incentive

More Consumer-Oriented Promotions

Contests and sweepstakes Refunds and rebates Bonus packs Loyalty programs Price-off Deals Event marketing

Trade Oriented Promotions

Objectives

Obtain distribution for new products


Maintain support for established brands

Encourage display of products


Build retail inventories

Types of Trade Oriented Promotions


Contests and incentives
Types
Co-op Advertising (by two or more organizations)

Trade allowances (refund given by manufacturer to retailer as they participate in sponsored advertising).

POP displays

Buying Promotional Slotting

Sales training
Trade shows

Coordinating Sales, Advertising, IMC Tools


Budget allocation

Coordination of themes Media support and timing

Aspects of Consumer Promotions

Economic

Informative

Affective

Public Relations and Personal Selling

McGraw-Hill/Irwin

Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Public Relations Defined


A management function

which and of and to

evaluates public attitudes


identifies the policies and procedures an organization with the public interest executes a program of action (and communication) earn public understanding and acceptance

Public Relations Management Process


Determination and evaluation of public attitudes

PR

Identification of policies and procedures

Development and execution of the program

Traditional PR Perspective

Customers Community Public Relations Department Suppliers Employees Government Investors

Integration of PR into the Promotional Mix


Separate Functions Marketing Department Public Relations

Coordinated and Equal Marketing Department Public Relations

Integrated Marketing Department Public Relations

Marketing Public Relations Functions


Building market excitement before media ads break Improving ROI

Creating news where there is no news


Introducing a product with little or no advertising Providing a value-added customer service

Building brand-to-customer bonds


Influencing influentials, giving info to opinion leaders Defending products at risk, giving consumers reasons to buy

Benefits of MPR

Advantages
A cost-effective way to reach the market Highly targeted way to conduct public relations Endorsements by independent third parties Achievement of credibility Makes advertising messages more credible Breaks though the clutter Circumvents resistance to sales efforts Improved media involvement w/customers Creates influence among opinion leaders

Improved ROI

Benefits of MPR

Disadvantages
Lack of control over media Difficult to tie in slogans or

other advertising devices


Media time and space arent guaranteed No standards for effective measurement

The Process of Public Relations

Determining and Evaluating Public Attitudes Establishing a PR Plan

Developing and Executing a PR Program Measuring Program Effectiveness

10 Evaluation Questions

1. Does the plan reflect a thorough understanding of the companys business situation? 2. Has the PR program made good use of research and background sources? 3. Does the plan include full analysis of recent editorial coverage? 4. Do the PR people fully understand the products strengths and weaknesses? 5. Does the PR program describe several cogent, relevant conclusions from the research?

10 Evaluation Questions

6. Are the program objectives specific and measurable? 7. Does the program clearly describe what the PR activity will be and how it will benefit the company? 8. Does the program describe how its results will be measured? 9. Do the research, objectives, activities, and evaluations tie together? 10. Has the PR department communicated with marketing throughout the development of the program?

Implementing the PR Program


Press Releases
Interviews

Press Conferences

PR Tools
The Internet Exclusives

Community Involvement

Advantages of Public Relations

Credibility Image Building Cost Savings

PR Provides
Selectivity Lead Generation Avoidance of Clutter

Stages of Personal Selling Evolution


Selling activity limited to order-taking and delivery Attempting to persuade customer to buy Seeking out buyers perceived to have a need Buyers identify problems to be met by goods Seller determines buyer needs and fulfills them

Provider

Persuader

Prospector
Problem-solver Procreator

New Roles for Salespeople


Surveying Mapmaking

CRM

Guiding

Types of Sales Jobs


Assesses situation, determines needs

Creative Selling

Presents capability of satisfying needs Gets order

Order Taking

This role is much more casual Often involves straight rebuying

Missionary Sales

Essentially a support role May not actually take the order

Personal Selling Responsibilities


Locating prospective customers Determining customers needs and wants Recommending a way to satisfy them Demonstrating product capabilities Closing the sale

Following up and servicing the account

Traits of Effective Salespeople

1. Ego strength: a healthy self-esteem that allows one to bounce back from rejection. 2. Sense of urgency: wanting to get it done now. 3. Ego drive: a combination of competitiveness and self esteem. 4. Assertiveness: the ability to be firm, lead the sales process, and get ones point across confidently. 5. Risk-taking: willing to innovate and take a chance.

Traits of Effective Salespeople

6. Sociable: outgoing, friendly, talkative, and interested in others. 7. Abstract reasoning: ability to understand concepts and ideas. 8. Skepticism: a slight lack of trust and suspicion of others. 9. Creativity: the ability to think differently. 10. Empathy: the ability to place oneself in someone elses shoes.

Traits Buyers Like and Dislike


Desirable Traits Objectionable Traits 1. Unprepared 2. Uninformed 3. Aggressive 4. Undependable 5. No follow through 6. Presumptive 7. Walk-ins 8. Gabbers 9. Problem avoiders 10. No personal respect

1. Knowledgeable 2. Empathizes 3. Well organized 4. Prompt 5. Follows through 6. Has solutions 7. Punctual 8. Hard working 9. Energetic 10. Honest

Pros and Cons of Personal Selling


Advantages
Two-way interaction with prospect Message can be tailored to recipient Prospect isn't likely to be distracted Seller involved in purchase decision Source of research information

Disadvantages
Messages may be inconsistent Possible managementsales force conflict Cost is often extremely high Reach may be very limited Potential ethical problems

Personal Selling + Other Tools


Advertising

Public Relations

Personal Selling

Direct Marketing

Sales Promotion The Internet

Evaluating Personal Selling

Provides good marketing intelligence?

Are follow-up activities conducted well?

Are promo programs being implemented?

Are communications objectives met?

Quantitative Measures of Sales Results


Orders Sales Volume Margins
Quantitative Measures

Customer Accounts Sales Calls Selling Expenses Customer Service

Qualitative Measures of Sales Results

Selling Skills

Sales Related Activities

Role of Internet and interactive media in IMC

Overall Scenario
1. Growth of internet
2. Creativity 3. Interactivity 4. Developing and maintaining a website.

Communication objectives considered while making IMC via internet


Create awareness Generate interest Disseminate information Create image Create strong brand

Create buzz

Strategies of IMC while using internet


1. Advertising on internet Banner ads

2. Sponsorship Company pays to the sponsors for a section of l media such as.
3. Pop ups

4. Interstitial Ads that appear on the screen while the user waits for another site to download
5. Paid search Advertiser only pay when consumers click on the ad. 6. Behavioral targeting and the pattern 7. Contextual ads. Based on the content of the website.

8. Rich media Wide range of interactive digital video, audio animation

9. Online commercials Advertisements appearing on net. 1o. Video on demand 11. Webisodes, short featured film created by advertisers. 12. Social networking, sharing of ideas, interest, events, within individual networks, via Facebook, twitter etc. 13. User generated videos 14. Podcasting Distributing radio files to download on iPods or mp3 players 15. Blogs. 16. Mobile phone 17. Interactive TV

Measurement of Internet Effectiveness


1. Clicks 2. Post click conversion 3. Cos per conversion

4. Average frequency
5. Frequency to conversion ratio 6. Advertising exposure time 7. Ad interaction rates 8. Visits 9. Webpage eye tracking

Advertising of Internet: Using internet in IMC


1. Specific target market 2. Customization of messages 3. High interactivity

4. Easy to access information


5. High sale potential 6. High creativity 7. Good exposure 8. Speed Quick way of communication

Disadvantages of using internet in IMC


1. Measurement issues 2. Highly cluttered 3. Potential for deception

4. Privacy
5. Irritation.

THANK YOU

You might also like