Session Coverage – Communications Mix – Communication Process – Selecting Communication Channels – Developing Effective Integrated Marketing Communications – Managing Ad Programs – Sales Promotions – Measuring Campaign Results Marketing Communications
The means by which firms attempt to
inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell. Marketing Communications Inform Persuade Remind New Products, pack, To buy now Maintain brand feature benefits etc. awareness & recall Difference with respect Switching from Product will be needed to competitors competitors by giving in near future Foreg: them clear reason Seasonal products.. Outlets where brands Persuade to stay loyal AC, Fans, Ice-cream, are available with the brand Cold drinks Pricing offered in Occasion of Use market How product works where to buy the product Correct a –ve perception Marketing Communications Mix. • It consists of a blend of: • 1. Advertising • 2. Personal Selling • 3. Sales promotion • 4. Direct Marketing/Digital Marketing • 5.Public Relations Elements of Promotion Mix Tools that a company uses to pursue it’s advertising & marketing objectives. Advertising Any paid form of non-personal promotion by an identified sponsor Personal selling Face to face presentation & selling Sales promotion (Consumer and Trade) Short term incentives to encourage trial or purchase Public relations Relationship building plan with the outside world to build & protect co’s image. Direct marketing Use of non-personal form of communication to communicate with select customer groups Relevance of the IMC Elements
Advertising - When product is widely distributed - Market is large & spread out - Demo is not an important criteria - Literacy levels exist
Personal selling - Information needs are high - Product is complex - Customers are few & reachable - Employing push strategy Relevance of the IMC Elements (contd…)
Sales promotion - When short-term gains are desired - New product requires to induce trial - Brand switchers are to be targeted
Public relations - Long term relationships are targeted - Building public opinion - Pre-event hype is required
Direct marketing - Well defined target market - Service & relationships are crucial Communication Platforms Advertising Sales Promotion • Print and broadcast ads • Contests, games, • Packaging inserts sweepstakes • Motion pictures • Premiums • Brochures and booklets • Sampling • Posters • Trade shows, exhibitions • Billboards • Coupons • POP displays • Rebates • Logos • Videotapes Sales Promotion Tools
• Consumer promotion tools
– Sampling – Free amount of Product – Couponing – Entitles bearer to stated saving on specific product – Cash Refund Offer (Rebate) – Price reduction after purchase. – Premiums – Product offered at low cost or free as an incentive to purchase particular product. – Patronage awards – Value in cash or other form if you purchase things from certain vendor or group of vendors. – Product Warranties- Promises by sellers that product will perform as specified or they will replace/repair/refund it. – Contests – to induce immediate purchase Sales Promotion Tools
• Trade promotion tools
– Discounts on list prices – Free goods offers – Promotional allowances – Gifts • Business promotion tools – Trade shows & Conventions – Sales contests for sales personnel Communication Platforms Personal Selling Direct Marketing • Sales presentations • Catalogs • Sales meetings • Mailings • Samples • Telemarketing • Fairs and trade shows • Electronic shopping • TV shopping • Fax mail • E-mail • In formals Communication Platforms Public Relations • Press kits • Speeches • Seminars • Annual reports • Charitable donations • Publications • Lobbying The Need for Integrated Marketing Communication Elements in the Communications Process Media, Local News Salesperson, Retail Store etc
M. Manager Ad, Sales Receiver Customers,
presentation, Interpretation of listeners, Ad. Manager message viewers Store display Ad. Agency
News Articles Market Research Other Advertisements Sales Results Other store displays Response Hierarchy Models
Learn
Feel
Do Steps in Developing Effective Communications Identify target audience Determine objectives Design message/communications
Select channels Establish budget Decide on media mix Manage IMC Developing Effective Marketing Communications • Step 1: Identifying the target audience – Includes assessing the audience’s perceptions of the company, product, and competitors’ company/product image • Step 2: Cognitive, affective, and behavioral objectives may be set • Step 3: AIDA model guides message design Developing Effective Marketing Communications • Step 4: Selecting Communication Channels – Personal communication channels • Effectiveness derives from personalization and feedback
– Non-personal communication channels
• Influence derives from two-step flow-of- communication process Developing Effective Marketing Communications • Step 5: Establishing the Marketing Communications Budget – Affordability method – Percentage-of-sales method – Competitive-parity method – Objective-and-task method MONEY : Setting up of total Promotion Budget • One of the most difficult decisions: • Methods: 1. Affordable Method: Completely ignores impact on sales volume, Leads to uncertain annual budget, long term planning difficult. 2. Percentage of sale method 3. Competitive parity method: In line with competition • Competitors expenses represent collective wisdom on industry 4. Objective and task Method: Define specific objectives – Establish market share goals (50 Lakh potential users, we can attract 25%) – %age of aware prospects that should be persuaded to buy this year. Step 6: Deciding on the Marketing Communications Mix •Advertising -Development and Management -Decisions on Media and Measurement Above the line (ATL and Below the line (BTL) Advertising
• ATL: Advertising where mass media is used to
promote brands and reach out to the target consumers. Examples: TV and radio advertising, print as well as internet. • BTL: It is more one to one and involves the distribution of pamphlets, stickers, promotions, brochures placed at point of sale, on the roads through banners and placards. It could also involve product demos and samplings at busy places like malls and market places or residential complexes Major Media Types • Television • Outdoor • Newspapers • Yellow Pages • Radio • Newsletters • Magazines • Brochures • Telephone • Internet • Direct mail Alternative Advertising Options Place Advertisement or out of home advertisement
• Billboards • Public spaces • Product placement • Point-of-purchase
Public Spaces: Movies, Airlines, Sports Arenas, Kiosks, public areas etc Developing the Advertising Plan • The 6 M’s of Advertising • Strategy: 1. Market- to whom is the communication addressed 2. Mission – setting advertising & sales growth objectives 3. Message – deciding the content & form 4. Media – media vehicles to be used, frequency & timing • Implementation: 1. Money – budgeting the allocation of resources 2. Measurement – evaluating the impact of communication & it’s effect on sales MISSION : Defining the objectives
Possible objectives • To inform – informing the market about a new product/service - suggesting new uses - building brand/company image - building primary demand - generate interest amongst trade/consumers • To persuade - build brand preference - induce brand switching - persuade to buy now
• To remind - maintain Top of the mind Recall
- keeping customers informed about availability & improvements Factors to Consider in Setting an Advertising Budget Stage in the product life cycle
Market share and consumer base
Competition and clutter
Advertising frequency Message: Deciding Content Advertising can take either an emotional route or a rational route to convey the message.
Concept of USP
Each advertisement must make a specific proposition
to the consumer : Buy this product & you will get this benefit.
The proposition must be one that competition either
cannot or does not offer: It must be unique.
The proposition must be so strong that it can: Pull
new customers to your product. Message-Appeals • Rational Appeals: • Strong Claim supported by numbers. • Radio Mirchi “India’s 2nd largest channel is not seen, it is heard”. (TRP) • Zodiac “ Why Zodiac makes best shirts in India” Fabric, Stitching, buttons, Collars, Style and Comfort, Customer Satisfaction. • Complan “23 vital nutrients” • Maggi 2-Minute Noodles Message-Appeals Cont… • Emotional Appeals: • “ A Gift for someone you love” • INFORMATIONAL APPEALS: • Elaborates of product/service benefits: • Saridon stops headache pain quickly • Product demonstration ads • Transformational Appeals (Non product related benefits or image) • Kind of person or kind of experience results from using of brand • Liril (Freshness Soap), Mentos (electrify your mind, (Raymonds-A complete man) Message-Appeals Cont… • Humour Appeals: Important clutter breaker • Newsweek (Times Magazine): • “ If your Ad doesn’t work in TM, Change your Ad Agency” • “ If your Ad doesn’t work in TM,DON’T Change your Ad Agency” Place it in Newsweek. • Negative Appeals: Fear, Guilt, Shame • Fear Appeals: • “Today a picture of safety, tomorrow a picture of disaster” Media: Selecting Appropriate Media
Media options are:
Print Media - Newspapers/magazines Audio visual - Radio/TV/internet Outdoor - Hoardings/bus panels/kiosks/banners Data bases - Yellow pages/trade directories Direct mail - Brochures/leaflets/newsletter
Selecting specific media:
Circulation/ readership/ viewer ship Reach-penetration Feasibility Cost Visibility vs. clutter Media Selection
communications: •75% Television •23% Print •2% Online MEASUREMENT Evaluating Advertising Effectiveness • Communication Effect Research
1. Consumer feedback method:
– Main Message you get from is Ad – What works well and what works poorly? – Which is the best place to reach you with this message?
2. Portfolio Tests: Asked to view and listen to many Ads (Asked to
recall all Ads and its content.
3. Lab Tests: Physiological reactions (Heartbeat, BP Etc) Asked to
turn a knob to indicate their liking or disliking moment by moment. PROMOTION Sales Promotion & Public Relations Sales Promotion
Collection of incentive tools, mostly
short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. Sales Promotion-Examples • Exchange your new car, get loyalty points • Buy a Chocolate, win free trip to Switzerland • Buy one, get TWO free • Reward of 5% for paying your bills with us • Clearance sales, rock bottom prices • Scratch and Win, get lucky with our sweepstakes. Sales Promotion Tools Consumer-directed Trade-directed • Free Samples • Temporary Price Cuts • Coupons • Renting Shelf space • Cash refund offers • Cooperative • Price offs advertising • Premiums • Volume Discounts • Product Warranties • Contests • Patronage Awards • Tie-in promotions PUBLIC RELATIONS PUBLIC RELATIONS-ADVANTAGES PR-ACTIVITIES & EFFECTIVENESS
