1. Integrated Marketing Communication Prof.Shaphali Gupta

2. Advertising Personal Selling Any Paid Form of Non personal Presentation by an Identified Sponsor. Sales Promotion Short-term Incentives to Encourage Trial or Purchase. Public Relations/ Publicity Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response. Protect and/or Promote Company’s Image/products. Personal Presentations. The Marketing Communications Mix Events& Experience Co. Sponsored Activities to encourage trial or purchase

3. Elements in the Communication Process SENDER Encoding Decoding RECEIVER Media Message Feedback Response Noise

4. Message Problems Selective AttentionSelective DistortionSelective Retention

5. Effective Communications Step 1. Identifying the Target Audience Purchase Conviction Preference Liking Knowledge Awareness Step 2. Determining the Communication Objectives Buyer Readiness Stages Step 2. Determining the Communication Objectives Buyer Readiness Stages

6. Response Hierarchy Models Communi- cations Model d AIDA Model a Innovation- Adoption Model c Hierarchy-of- Effects Model b Stages Cognitive stage Affective stage Behavior stage Awareness Trial Adoption Interest Evaluation Purchase Liking Preference Conviction Awareness Knowledge Attention Interest Desire ActionBehavior Attitude Intention Exposure Reception Cognitive response

7. Message Source Expertise, Trustworthiness, Congruity Step 3. Designing the Message Message Format Layout, Words, & Sounds, Body Language Message Structure Draw Conclusions Argument Type Argument Order Message Content Rational Appeals Emotional Appeals Moral Appeals

8. Step 4. Select Communications Channel Nonpersonal Communication Channels Personal Communication Channels

9. Step 5. Establish the Budget Competitive Parity Objective & Task Affordable % Of Sales

10. Step 6. Decide on Communications Mix Advertising Public, Pervasive, Expressive, Impersonal Advertising Public, Pervasive, Expressive, Impersonal Sales Promotion Communication, Incentive, Invitation Sales Promotion Communication, Incentive, Invitation Public Relations & Publicity Credibility, Surprise, Dramatization Public Relations & Publicity Credibility, Surprise, Dramatization Personal Selling Personal Confrontation, Cultivation, Response Personal Selling Personal Confrontation, Cultivation, Response Direct Marketing Nonpublic, Customized, Up-to-Date, Interactive Direct Marketing Nonpublic, Customized, Up-to-Date, Interactive

11. Step 7. Measure Results Step 8. Manage the IMC Process

12. Product Life-Cycle Stage Type of Product/ Market Push vs. Pull Strategy Factors in Developing Promotion Mix Strategies Buyer/ Readiness Stage

13. Push Versus Pull Strategy Producer Interme- diaries Marketing activities End users Marketing activities Demand Interme- diaries Demand Push Strategy Pull Strategy End users Marketing activities Demand

14. Managing Mass Communications

15. Advertising

16. Major Decisions in Advertising Objectives Setting Budget Decisions Message Decisions Media Decisions Campaign Evaluation

17. Informative Advertising Build Primary Demand Informative Advertising Build Primary Demand Persuasive Advertising Build Selective Demand Persuasive Advertising Build Selective Demand Comparison Advertising Compares One Brand to Another Comparison Advertising Compares One Brand to Another Reminder Advertising Keeps Consumers Thinking About a Product. Reminder Advertising Keeps Consumers Thinking About a Product. Advertising Objectives Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time

18. The Five Ms of Advertising Mission Sales goals Adver- tising objectives Money Factors to consider: Stage in PLC Market share and con- sumer base Competition and clutter Advertising frequency Product substituta- bility Message Message generation Message evaluation and selection Message execution Social-responsibility review Media Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation Measure- ment Communi- cation impact Sales impact

19. Advertising Budget Factors Stage in the Product Life Cycle Market Share & Consumer Base Competition & Clutter Advertising Frequency Product Substitutability

20. Profiles of Major Media Types Newspapers Advantages: Flexibility, timeliness; good local market coverage; broad acceptance, high believability Limitations:Short life; poor reproduction quality; small pass-along audience Television Advantages: Combines sight, sound, motion; high attention; high reach; appealing to senses Limitations:High absolute costs; high clutter; fleeting exposure; less audience selectivity Direct Mail Advantages:Audience selectivity; flexibility, no ad compe- tition within same medium; allows personalization Limitations:Relative high cost; “junk mail” image

21. Radio Advantages: Mass use; high geographic and demographic selectivity; low cost Limitations:Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences Magazines Advantages:High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along readership Limitations:Long ad purchase lead time; waste circulation; no guarantee of position Outdoor Advantages:Flexibility; high repeat exposure; low cost; low message competition Limitations:Little audience selectivity; creative limitations Profiles of Major Media Types

22. Classification of Advertising Timing Patterns Month Number of messages per month Concen- trated (1)(2)(3) LevelRisingFallingAlternating (4) Continuous (8)(7)(6)(5) (9) Inter- mittent (10)(11)(12) (9)

23. Simplified Rating Sheet for Ads PooradMediocreadAverageadGoodadGreatad 0 20 40 60 80 100 __Total (Attention) How well does the ad catch the reader’s attention? __20 (Read-through) How well does the ad lead the reader to read further? __20 (Cognitive) How clear is the central message or benefit? __20 (Affective) How effective is the particular appeal? __20 (Behavior) How well does the ad suggest follow-through action? __20

24. Advertising Strategy Message Execution Typical Message Execution Styles Typical Message Execution Styles Testimonial Evidence Testimonial Evidence Slice of Life Scientific Evidence Scientific Evidence Lifestyle Technical Expertise Technical Expertise Fantasy Musical Personality Symbol Personality Symbol Mood or Image Mood or Image Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.

25. Advertising Program Evaluation Communication Effects Is the Ad Communicating Well? Communication Effects Is the Ad Communicating Well? Advertising Evaluation Sales Effects Is the Ad Increasing Sales? Sales Effects Is the Ad Increasing Sales?

26. Sales Promotion

27. Collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.

28. Why the increase in Sales Promotion? Growing retailer power Declining brand loyalty Increased promotional sensitivity Brand proliferation Fragmentation of consumer market Short-term focus Increased managerial accountability Competition Clutter

29. Long-Term Promotional Allocation 0 10 20 30 40 50 60 1986889092941996 Year %t of total - 3 yr.MA Trade Promo Media Adv Cons. Promo Cox Direct 19th Annual Survey of Promotional Practices

30. Channels of Sales Promotions MANUFACTURER RETAILER TradePromotions CONSUMER ConsumerPromotions Push Pull RetailPromotions

31. Consumer Promotion Consumer-Promotion Objectives Consumer-Promotion Tools Point-of-Purchase Displays Point-of-Purchase Displays Premiums Price Packs Cash Refunds Coupons Samples Patronage Rewards Games Sweepstakes Contests Advertising Specialties Advertising Specialties Patronage Rewards Entice Consumers to Try a New Product Entice Consumers to Try a New Product Lure Customers Away From Competitors’ Products Lure Customers Away From Competitors’ Products Get Consumers to “Load Up’ on a Mature Product Get Consumers to “Load Up’ on a Mature Product Hold & Reward Loyal Customers Hold & Reward Loyal Customers Consumer Relationship Building Consumer Relationship Building

32. “Deal Proneness,” Liechtenstein, Burton, & Netemeyer, Journal of Retailing, Summer 1997 Examination of “deal proneness” among consumers in a supermarket setting Surveys & Grocery Receipts used Eight types of deals: –Cent-off, One-free, Gift, Display, Rebate, Contest, Sale, & Coupon

33. “Deal Proneness,” Liechtenstein, Burton, & Netemeyer Cluster analysis yielded two interpretable results: X49% are “deal prone,” 51% not X24% High “Deal prone,” 50% intermediate, 26% deal insensitive “Deal-proneness” a generalized construct - (crosses type of promotion) Younger & Less educated more likely to be deal prone

34. Trade-Promotion Objectives Trade-Promotion Tools Specialty Advertising Items Specialty Advertising Items Contests Free Goods Buy-Back Guarantees Buy-Back Guarantees Allowances Price-Offs Patronage Rewards Push Money Discounts Premiums Displays Persuade Retailers or Wholesalers to Carry a Brand Persuade Retailers or Wholesalers to Carry a Brand Give a Brand Shelf Space Promote a Brand in Advertising Promote a Brand in Advertising Push a Brand to Consumers Trade Promotions

35. Business-Promotion Objectives Business-Promotion Tools Generate Business Leads Stimulate Purchases Reward Customers Motivate Salespeople Conventions Trade Shows Sales Contests Business-to-Business Promotion

36. Public Relation

37. Special Events Special Events Written Materials Written Materials Corporate Identity Materials Corporate Identity Materials Speeches News Audiovisual Materials Audiovisual Materials Major Public Relations Tools Public Service Activities Public Service Activities Web Site

38. Marketing Public Relations Functions Assist in product launches Assist in repositioning mature products Build interest in a product category Influence specific target groups Defend products Build corporate image

39. Steps in Marketing PR Establish objectives Choose messages Choose vehicles Implement and control Measure effectiveness

40. Why Sponsor Events? To identify with a particular target market or life style To increase brand awareness To create or reinforce consumer perceptions of key brand image associations To enhance corporate image To create experiences and evoke feelings To express commitment to community To entertain key clients or reward employees To permit merchandising or promotional opportunities

41. Ideal Events Audience closely matches target market Event generates media attention Event is unique with few sponsors Event lends itself to ancillary activities Event reflects or enhances brand image of sponsor

42. Managing Personal Communications

43. Direct Marketing Use of consumer-direct channels to reach and deliver goods and services to customers without using market middlemen.

44. Direct Marketing Channels Catalogs Direct mail Telemarketing Web sites Email marketing Mobile devices Interactive TV

45. Public Issues in Direct Marketing Irritation Unfairness Deception/fraud Invasion of privacy

46. RFM Formula for Selecting Prospects Recency Frequency Monetary value

47. Types of Telemarketing Telesales Telecoverage Teleprospecting Customer service and technical support

48. Other Media for Direct Response Television Direct Response Advertising At home shopping channels Videotext Kiosks

49. Designing an Attractive Web Site Context Content Community Customization Communication Connection Commerce

50. Ease of Use and Attractiveness Ease of Use –Downloads quickly –First page is easy to understand –Easy to navigate Attractiveness –Clean looking –Not overly crammed with content –Readable fonts –Good use of color and sound

51. Increasing Visits and Site Stickiness Deep information with links Changing news of interest Changing offers Contests and sweepstakes Humor and jokes Games

52. Online Ads Banner ads Sponsorships Interstitials Search-related ads Content-targeted advertising Alliances Affiliate programs

53. e-Marketing Guidelines Give the customer a reason to respond Personalize the content of your emails Offer something the customer could not get via direct mail Make it easy for customers to unsubscribe

54. Figure 19.1 Designing a Sales Force Sales force objectives Sales force strategy Sales force structure Sales force size Compensation

55. Types of Sales Representatives Deliverer Order taker Missionary Technician Demand creator Solution vendor

56. Sales Tasks Prospecting Targeting Communicating Selling Servicing Information gathering Allocating

57. Figure 19.2 Managing the Sales Force Recruiting, selecting Training Supervising Motivating Evaluating

58. Workload Approach to Determining Sales Force Size Customers are grouped into size classes Desirable call frequencies are established Number of accounts in each size class multiplied by call frequency Average number of calls possible per year established Number of reps equal to total annual calls required divided by number possible

59. Components of Sales Force Compensation Fixed amount Variable amount Expense allowances Benefits

60. What Motivates Sales Reps? Most Rewarding Pay Promotion Personal growth Sense of accomplishment Least Rewarding Liking Respect Security Recognition

61. Figure 19.3 Steps in Effective Selling Prospecting/ Qualifying Preapproach Approach Presentation Overcoming objections Closing Follow-up