University of Dhaka

Faculty of Business Studies

Department of Marketing

Class Lecture of

Prof. Dr. Haripada Bhattacharjee

On

Integrated Marketing Communication (IMC) MKT: 525

Prepared by NADEEM NAFIS 4119044

Class Lecture of Prof. Dr. Haripada Bhattacharjee Department of Marketing Faculty of Business Studies UNIVERSITY OF DHAKA

2 MKT-525 IMC

In 1901 at University of Florida, Marketing as a subject began to teach. Definition: Marketing is the delivery of standard of living. 01. Marketing is the delivery of customer satisfaction at a profit. 02. There are two goals of Marketing: A. To attract new customers by providing superior value. B. To keep current customer by delivering satisfaction. 03. Traditionally Marketing means Telling & Selling but in modern age Marketing means Satisfying Customer Needs. 04. Marketing begins with the creation of Wants. 05. Values, Satisfaction & Quality are the core terms of Marketing. Value means- Difference between gain & cost of obtaining product. Satisfaction means- The perceived performance that customer expect from product. Quality means- Freedom from Defect. 06. Retention (i.e. repeat purchase & mouth Marketing) of customer through relationship is more important than to attract new customers e.g. one satisfied customer is worth 6 million in life time purchase (LEXUS car). 07. Success of Marketing comes from either by Entrepreneurial Marketing, Formulated Marketing & Intrapreneurial Marketing. This three is called Radical Marketing. 08. Coca-Cola Marketing success tells us Business is the creative art of conquer customer mind & goods. In 1919 the single share of Coca-Cola was 40 $ & in 2012 it is 48,47,000 $. 09. New thinking of Marketing includes: A. Be customer centered to target individuals or market segments having strong market size & purchasing power capacity. B. Focus on satisfaction & on value. C. Develop customer relation. D. Keep old customers. E. Develop customized product. F. Install e-commerce in market place G. Assume CSR. 10. For successful Marketing prepare a formal plan If you failed to plan, your planning to fall. Develop strategic planning based on analysis of changing Marketing opportunities through BCG model. 11. Todays customer are called YIFFIES- young individualistic freedom minded consist of more than 80% of the world population with age below 20 years, considered as force for social transformation.
Nadeem Nafis, MBA (MKT) - 41119044, FBS-DU.

Class Lecture of Prof. Dr. Haripada Bhattacharjee Department of Marketing Faculty of Business Studies UNIVERSITY OF DHAKA

3 MKT-525 IMC

Marketing Myopia: what is it? 1960- Marketing concept evolved & it tells about customer satisfaction. 1950- Selling concept, Product concept & Production concept evolved. None of this Marketing orientation/concept tells about customer satisfaction. Paul Mazo first told that Customer is the King.

Need: It is a kind of felt deprivation. (There are 5 fundamental needs which are given by Allah SWA in human being this are food, cloth, security, health, education.) Wants: It is the higher order needs supported by social values of a country. Creation of values = wants In this regard Marketing can be defined as Marketing is the creation of more wants

Integrated Marketing Communication (IMC): IMC is the organization & integration of all Marketing tools, avenues & sources within a company into a seamless program that will minimize the impact on the customer & other users at minimum cost. There are broadly 5 tools if IMC: 1. Advertising: It is a non-personal presentation & promotion of ideas, goods or services by an identified sponsor. 2. Sales Promotion: A variety of short term incentives to encourage trial or purchase of goods. 3. Public Relation & Publicity: A variety of program designed to promote a companys image or its individual product. 4. Personal Selling: Face to face interaction with one or more prospective purchaser for the purpose of making presentation, answering questions & procuring orders. 5. Direct & Interactive Marketing: Use of e-mail, telephone, mail or internet to communicate directly with or solicit response or dialogue from specific customer or prospect.

Nadeem Nafis, MBA (MKT) - 41119044, FBS-DU.

Class Lecture of Prof. Dr. Haripada Bhattacharjee Department of Marketing Faculty of Business Studies UNIVERSITY OF DHAKA

4 MKT-525 IMC

EXAMPLES OF TOOLS OF IMC

Advertising Print & broadcasting ad Packaging outer Packaging insert Motion picture Brochure Booklets Poster & leaflet Directories Bill board Display sign Point to purchase Audio visual Symbol & logo Personal Selling Sales presentation Sales meeting Samples Fare & trade show Sales Promotion Contest & games Lotteries Gifts Sampling Fair & trade show Exhibition Coupon Rebate Trade allowance Video conferencing Public Relation Seminars Annual report Donation Sponsorship Community relation Lobbying Magazine Event management Direct Marketing Catalog Mailing Telemarketing TV shopping Fax E-mail Voice mail Internet marketing i.e. face-book etc.

COMMUNICATION PROCESS: Communication is defined as transmitting, receiving & procession information. In Marketing communication, along with other communication process there are six stages Sender Encoding Decoding Noise Receiver Feed back

Sender
Suppose AKIZ group is the sender

Message= Encoding
The message Khailay Bujben is encoded by AKIZ

Decoding
Various interpretation of message

Receiver

Feedback
Overall reaction to the message by the receiver

Noise
Distortion by any means which effects to convey the message accurately

Nadeem Nafis, MBA (MKT) - 41119044, FBS-DU.

Class Lecture of Prof. Dr. Haripada Bhattacharjee Department of Marketing Faculty of Business Studies UNIVERSITY OF DHAKA

5 MKT-525 IMC

IMC begins with the Marketing mix. In IMC program marketer will initially identify:
1. Which promotion will attract the customer most & why? 2. Which promotion is least appealing & why? 3. How important is brand name in each promotion & why? 4. What will be the major message in promotion? 5. What makes promotion effective or ineffective?

IMC begins with the development of master Marketing plan which requires:
1. Internal (internal situation means Financial commitment: how much money will be

2. 3. 4. 5. 6.

spend; Continuous improvement of technology; Skilled & educated human resources; Management problem like as cross functional conflict etc.) & external situation analysis. Defining Marketing objectives. (Market share, Market sales & market revenue) Developing marketing budget based on Marketing objectives. Developing Marketing tactics (Day to day operational activities / catch fish with Fevicol rather with fishhook/ quick achieving goals with evil brain) Developing Marketing strategies (Long term mission or vision / catching fish with a fishhook/ achieving goals by doing step by step tasks) Evaluating promotional programs.

There are three objectives of Marketing 1. To increase Market Share. 2. To increase Market Sales. 3. To increase Market Revenue. Target audience may not receive the message for three reasons 1. Selective Attention: People are bombard with 16 hundred commercial messages a day of which 80% are consciously noticed & 12% probe some reaction. Selective attention explains why advertisements with bold headlines promising something such as How to Make a Million have a high likelihood of getting attention. 2. Selective Distortion: Receiver will hear what fits into their belief system. As a result receiver often add things to the message that are not there (amplification; e.g SEL sloganCustomer satisfaction first & profit in its logical sequence, in Bangladesh perspective everyone still cant the meaning of this slogan also too much amplification will need enough time to understand moreover most of our countries people still believe that businessmen are of Bangladesh are crave more profit than to give CS) & do not notice other things that are there (Leveling). Thus communicator task

is to strive for simplicity, clarity, interest & repetition to get the main points across.
Nadeem Nafis, MBA (MKT) - 41119044, FBS-DU.

Class Lecture of Prof. Dr. Haripada Bhattacharjee Department of Marketing Faculty of Business Studies UNIVERSITY OF DHAKA

6 MKT-525 IMC

3. Selective Retention: People will retain in long term memory only small fraction of the message that reach them. If the initial attitude toward message is positive you will retain in memory & will have high recall & message will be accepted.

Steps in developing effective communication Effective communication requires the answering of five questions before to setup steps in promotional program. These five questions are known as 5Ws model: 1. 2. 3. 4. 5. Who is our target audience? (= Identification of target customers.) What do we need to communicate & achieve? (= please see below 7 objectives: ) Where should we communicate this? (Identification of target segment.) When does the communication need to take place? (= Identification of time.) Why should you communicate? ( See below: The 7 communication objectives)

2 = What do we need to communicate & achieve? = In order to answer this question the

communication objective should be identified, these are 7 specific objectives of communication: a. b. c. d. e. f. g. To create awareness of new product or services. To attract attention of the prospect. To inform the prospect about the new feature of the product. To teach the customer hoe to use the product. To stimulate inquiries. To increase pre-booking. To generate repeat purchase.

In case of Advertisement the marketer should focus the following three things: Quality, Price & Durability

Nadeem Nafis, MBA (MKT) - 41119044, FBS-DU.

Class Lecture of Prof. Dr. Haripada Bhattacharjee Department of Marketing Faculty of Business Studies UNIVERSITY OF DHAKA

7 MKT-525 IMC

STEPS IN DEVELOPING EFFECTIVE COMMUNICATION

Step-1: Identifying the Target Audience: Target audience may be 3 types a. Individual person b. Organizations c. Government Factors of Targeting are: the disposable income & which type of needs & wants to be fulfilled. Communicators will be affected by What will be said, How it will be said, When it will be said, Where it will be said & finally Who will say it. Step-2: Determining communication objectives: There are 7 specific objectives of communication: a. b. c. d. e. f. g. To create awareness of new product or services. To attract attention of the prospect. To inform the prospect about the new feature of the product. To teach the customer hoe to use the product. To stimulate inquiries. To increase pre-booking. To generate repeat purchase.

The final objective is to increase purchase but before that the communicator must identify buyers readiness stage which consists of Awareness, Knowledge, Liking, Preference, Conviction & finally Purchase stage. Step-3: Designing Message: Ideally there are 6 steps to pursue any person through message, these are: a. A person must see or hear the communication. b. A person must notice the advertisement. c. A person must understand the message. d. A person must response favorably to the message. e. A person must have desire purchase intension. f. A person must act in the desire manner to buy the product. In putting the message together communicator must decide What to say (message content) & How to say it (message structure & format).

Nadeem Nafis, MBA (MKT) - 41119044, FBS-DU.

Class Lecture of Prof. Dr. Haripada Bhattacharjee Department of Marketing Faculty of Business Studies UNIVERSITY OF DHAKA

8 MKT-525 IMC

Message Content: Marketer can appeal 3 ways to the target customer: a. Rational appeal which will include product Quality, Economy (=Price) & Performance or Values. b. Emotional appeal which will steer-up positive or negative emotion of audience. Positive appeals are pride, joy, love & humor whereas Negative appeals are fear & shame. c. Morale appeals which will develop sense what is right & proper, better environment, equal rights & aid to disadvantageous groups. Message Structure: Marketer must decide how to handle 3 appeals: a. Whether to draw a conclusion or leave it to the audience. b. Whether to present one sided or two sided arguments of the product. c. Whether to present strongest argument first or last. Step-4: Choosing Media: There are two board types of communication channel a. Personal channel (telephone, face to face, internet, word of mouth) b. Non-personal channel (print media, broadcast, display, online media-website) Step-5: Selecting Message Source: Message must be delivered by highly credible sources thus marketer should hire Celebrity (Shahrukh Khan), well known Athletic (Lenonal Messey), Actors (Prova), Cartoon character (Tom & Jerry), Professional bodies (Dental association, IEB) etc. Step-6: Setting Promotion Budget: Promotional budget can be set in 4 ways: a. b. c. d. Affordable method. Percentage of sales method. Competitive parity method. Objective & task method.

Step-7: Determining Promotional Strategy: There are two promotional strategies: a. PUSH strategy which means using sales forces & trade promotion pushing the product into the market. b. PULL strategy which calls for spending a lot on advertising & consumer promotion to pull up or to buildup consumer demand. Whatever strategy will be used depends on the stage of the product in Product Life Cycle (PLC). Step-8: Feedback: Overall evaluation of IMC program & taking correction measures (if any) to achieve the goal.

Nadeem Nafis, MBA (MKT) - 41119044, FBS-DU.

Class Lecture of Prof. Dr. Haripada Bhattacharjee Department of Marketing Faculty of Business Studies UNIVERSITY OF DHAKA

9 MKT-525 IMC

ADVERTISING MANAGEMENT 01. In 2001, in USA of the women buying the new car 53% of age over 40 years. 02. Of the women buying computer 54% of the age of over 40 years. 03. Of the women buying cosmetics & facial moisture 60% were 40 plus. The conventional practice in advertisement is to targeting audience with respect to age focus mainly 18-34 years. The reason for 40+ are Women 40 years & above are vibrant & powerful. 40+ women are Energized, terrific & self assured, & 40+ is a cocktail hour of women life, 40+ women adjust to situation, 40+ can cope with lifes problems. According to Abraham Maslow people tend to develop a more comedic view of life as they are mature the lesson from this results to the marketers & especially the advertising agencies is that while developing advertising message it must be authentic, accurate & credible analysis of target market for which the first steps in advertisement management is to develop Creative Brief/Strategy which means advertising message must be supported by a document that can rely the customer. The elements of Creative Brief are: 1. 2. 3. 4. 5. Identification of the objective of ad Identification of target audience Development of right message theme Development of support services Identification of constraints

THEORIES OF ADVERTISEMENT: There are mainly two theories of ad 01. Hierarchy of Effect Model: This model suggests that a consumer moves through the 6 steps when becoming convinced to make a purchase, these are: 1. Awareness 2. Knowledge 3. Liking 4. Preference 5. Conviction 6. Actual purchase

Nadeem Nafis, MBA (MKT) - 41119044, FBS-DU.

Class Lecture of Prof. Dr. Haripada Bhattacharjee Department of Marketing Faculty of Business Studies UNIVERSITY OF DHAKA

10 MKT-525 IMC

02. Means-End Theory: This model suggests using 5 elements in creative ad 1. Product attributes 2. Consumer benefits 3. Leverage point (it is the feature of ad that leads to the viewers to transform the advertisement message into a personal value) 4. Personal values 5. Execution framework ADVERTISEMENT APPEAL: There are 7 ways advertisement message can be appealed to the customers 1. 2. 3. 4. 5. 6. 7. Fear Humor Sex Music Rationality Emotion Scarcity

Fear message specially applied for demerit goods (cigarette) & the goods which are specially unsought (life insurance) by the customers. The fear appeal should be moderate so that customer does not afraid of the message. Globally 30% advertisements are Humor based. Humor advertisement draws more attention, generates laughs & customer an easily remind. Over 40% advertisements constitute Sex appeal. Sexuality has been employed in ad 5 ways as follows: 1. 2. 3. 4. 5. Subliminal Techniques: It only affects subconscious mind. Nudity/Partial Nudity: In Australia 46% ad are partial nudity. Sexual Suggestiveness: e.g.: unsafe sex may cause HIV or use of condoms etc. Overt Sexuality: Use gay & lesbian theme. Sensuality: Portray image of romance & love rather than raw sex.

Music & Emotion appeal in ad touches the heart but in terms of effectiveness their contribution is also insignificant however, music appeal attracts more attention of younger generation & emotional appeal draws the attention of older/aging population. Rationality appeal attracts the attention of fixed income people. Scarcity appeal especially applicable when supply of product is truly limited.

Nadeem Nafis, MBA (MKT) - 41119044, FBS-DU.

Class Lecture of Prof. Dr. Haripada Bhattacharjee Department of Marketing Faculty of Business Studies UNIVERSITY OF DHAKA

11 MKT-525 IMC

Are Sex Appeal Effective: 1. Presence of sex influences emotion of male & female. 2. Presence of sex produces higher kind of attention 3. Presence of sex produces higher purchase intension when the product is sexually relevant. 4. Presence of sex only improves product recognition but not the brand recognition. 5. Presence of sex in advertisement contributes less than 3% actual purchase.

MESSAGE STRATEGY: 01. Congitive Strategy: It is representation of rational arguments or piece of information to consumer highlighting product attributes & benefits to the consumer. 02. Affective Strategy: It invokes feelings & emotion which match with the product, service or company. 03. Conative Strategy: It is use to support other promotional efforts such as coupon, trade show, cash discount, rebate etc. WHAT ARE UNETHICAL ASPECTS OF ADVERTISEMENT? 1. Advertising can cause people to buy more than they can afford. 2. Advertising overemphasis materialism. 3. Advertising increasing the cost of goods & services. 4. Marketers create offensive advertisement. 5. Marketers create demand for demerit goods. 6. Marketer use unfair practices through advertisement. 7. Advertisement of professional service is unethical. 8. Advertisement to the children is unethical. 9. Advertisement sometimes deceptive & misleading. 10. Sales people use too many deceptive practices to market products, e.g.- MLM

Nadeem Nafis, MBA (MKT) - 41119044, FBS-DU.

Class Lecture of Prof. Dr. Haripada Bhattacharjee Department of Marketing Faculty of Business Studies UNIVERSITY OF DHAKA

12 MKT-525 IMC

MEDIA STRATEGY: A media strategy is the process of analyzing & choosing media for an advertising & promotional campaign. The media plan includes: A marketing analysis, An advertising analysis, A media strategy, Media scheduling, Justification & summary MARKETING ANALYSIS: A marketing analysis includes competitors statement of current sales, current market share, demographic characteristics of prime prospects, a compatible pricing strategy based on products benefits & uniqueness, competitive environment. ADVERTISING ANALYSIS: An advertising analysis states the fundamental advertising strategy & budget to be used in meeting advertising objectives. The media strategy reflects which media will be used & the creative considerations. The media schedule states when ad will appear in individual vehicles. The justification & summary states the measure of goal achievement. ADVERTISING OBJECTIVES: In selecting media, media objectives to be outlined. Media objectives include: Reach: It is the number of people in a target audience exposed to a media vehicle at least once during a given time. Frequency: How many times did the person see the ad during the campaign . Gross Rating Point: It is a measure of overall expenditure associated with an advertising program. Continuity: It is the exposure pattern or schedule used in the ad campaign. Impression: It is the total exposure of the audience to an advertisement. MEDIA SELECTION: TV Merits: 1. 2. 3. 4. 5. 6. High reach High frequency potential Low cost per contact High intrusion value (motion, sound) Quality creative opportunity Segmentation possibility through cable outlets

Nadeem Nafis, MBA (MKT) - 41119044, FBS-DU.

Class Lecture of Prof. Dr. Haripada Bhattacharjee Department of Marketing Faculty of Business Studies UNIVERSITY OF DHAKA

13 MKT-525 IMC

CONS: 1. 2. 3. 4. 5. Greater clutter Low recall due to clutter Channel surfing during commercials Short amount of copy High cost per ad

COMPARATIVE ANALYSIS OF AD APPEALS FEAR: Fear increases both the viewers interest in an ad & the persuasiveness of that ad viewer can remember the fear appeals better than upbeat message. Most advertisers believe a moderate level of fear is the most effective. HUMOR: Humor is used in about 30% of all advertisement. According to Abraham Maslow, people tend to develop a more comedic view of life as mature. Humor causes consumers to watch, laugh & remember. And therefore, it capture viewers attention & enhances recall. Humor ads can also backfire when funs or jokes are so funny, viewers forgot brand name. SEX: Sex is used in about 45% of all ads. Past studies concluded that sex & nudity do increase attention, but brand recalls is lower than other type of appeal. Sexual based advertisement has perpetuated dissatisfaction with ones body. Despite criticism, sex appeals are most effective vehicle to stimulate attention of viewers. MUSICAL APPEAL: Music captures viewers emotions, memories & experiences. Brand awareness, brand equity & brand loyalty are easier to develop through music because musical memories are often stored in long term recall areas of the brain. RATIONAL APPEAL: A rational appeal is superior to others in developing or changing attitudes & established beliefs. Rational appeals are successful for high involvement & complex products, require considerable cognitive activity. EMOTIONAL APPEAL: Today, around 12% of all ads utilize emotional appeals. It develops an attachment between consumer & brand. Emotion tied with humor, fear, music appeals draws much attention of viewers & helps to change the personal values of viewers. SCARCITY APPEAL: When there is a limited supply of a product, scarcity appeal is effective. The primary benefit of scarcity appeals is that they encourage consumers to take action. It should not be used as a tactics, because once customer understands it is a deceptive practice, customer may develop long term inept attitude towards product.

Nadeem Nafis, MBA (MKT) - 41119044, FBS-DU.

Class Lecture of Prof. Dr. Haripada Bhattacharjee Department of Marketing Faculty of Business Studies UNIVERSITY OF DHAKA

14 MKT-525 IMC

CONSUMER BUYING BEHAVIOR 1. 2. 3. 4. 5. Need recognition Search for alternatives Evaluation of alternatives Purchase decision Post purchase evaluation

1. NEED RECOGNITION: Need is an actual human state of desire which must be fulfilled & also be supported by the purchasing power & other abilities. 2. SEARCH FOR ALTERNATIVES: Alternatives can be searched in two ways either internal source or through external source. Internal source comprised of consumers evoke-set which means a set of brands a consumer considers during information search. External source comes from many points such as friends, family, colleagues media, publications etc. but a consumer will utilize the external source based on his ability, motivation, cost & benefits. However while purchasing goods majority customers use evoke-set. Evoke-set consist of inept-set (Stoic) customer is aware about the product but neither happy nor dissatisfied i.e. neutral. Information processing is influenced by the attitude of the customer & his/her personal values. If a customer has positive attitude towards a brand the propensity to purchase is higher, similarly if a customer appreciates an advertisement the probability of purchasing the product is higher. Attitude is shaped by individual values. The common human values are: Comfortable life Excitement Equality Freedom Fun Happiness Inner peace Mature love Pleasure Salvation Security Self fulfillment Self respect Sense of belongings Social recognition Wisdom

Nadeem Nafis, MBA (MKT) - 41119044, FBS-DU.

Class Lecture of Prof. Dr. Haripada Bhattacharjee Department of Marketing Faculty of Business Studies UNIVERSITY OF DHAKA

15 MKT-525 IMC

Attitudes consist of three components: o AFFECTIVE COMPONENT: It contains the feeling & emotion of a person about any object or idea. COGNITIVE COMPONENET: It refers the persons understanding & interpretation of the object or idea. CONATIVE COMPONENET: It consists of a persons intension action & behavior towards the object or idea.

3. EVALUATION OF ALTERNATIVES: It can be done in two ways MULTI ATTRIBUTE APPROACH: Which means attitudes of customers are determined by the beliefs about a product performance. AFFECT REFERRAL: It states that a consumer chooses the brand that he/she likes the best.

4. THE PURCHASE DECISION: Consumers purchase decision may be 5 types a. Situational change b. Desire for variety c. Impulse decision d. Consumer promotion e. Friends & relatives 5. POST PURCHASE EVALUATION: do it by ur self

Nadeem Nafis, MBA (MKT) - 41119044, FBS-DU.

Class Lecture of Prof. Dr. Haripada Bhattacharjee Department of Marketing Faculty of Business Studies UNIVERSITY OF DHAKA

16 MKT-525 IMC

MESSAGE STRATEGY
Affective - Understanding Cognitive -Emotion & feelings Conative - rationality/logic

CREATIVE BRIEF
Message theme

EXECUTIONAL FRAMEWORK
Animation carton Slice of life insurance company ad (ALICO) Dramatization Banglalink ad of dam repair Testimonial Sachine testify abt BOOST drink Authorative BD dental asso approved Demonstration washing powder nirma Fantasy mountain due Informative - medicine

MEANS END CHAIN

APPEALS
Fear Humor Sex Music Rationality Emotion Scarcity

LEVERAGE POINT
Companies made by P&G vs Abul Khair Country made in USA vs China Co-branding Toyota & Progoti Licensing KFC Sponsorship Yunus center

SPOKE PERSON Celebrities Experts Typical persons CEOs

Figure: IMS executional process

Nadeem Nafis, MBA (MKT) - 41119044, FBS-DU.

Class Lecture of Prof. Dr. Haripada Bhattacharjee Department of Marketing Faculty of Business Studies UNIVERSITY OF DHAKA

17 MKT-525 IMC

CREATIVE BRIEF: It means message can act as a means to lead the consumer to a desired end state. End state includes personal values starting from comfortable life to wisdom. Thus the attributes of the product should be linked to the specific consumer can desire. This benefits leads to the attainment of personal values

Nadeem Nafis, MBA (MKT) - 41119044, FBS-DU.