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Managing the Integrated Communication
What is communication? Setting of communication
objectives, identifying target audience, modes of
communication, designing message, choosing tool for
communication, Media decisions, evaluating various
media,
Advertising management, Advertisement management,
Managing sales promotions, evaluating results, integrating
the entire communication, role of public relations and
publicity, significance and managing communication
through direct marketing and personnel selling, role of
internet marketing, emerging communication trends.


                                                        1
“Science of tough cleaning”
means that its concept is
based on the oxidization that
oxidizes the stains
                            2
Promotions
Mahinder singh Dhoni (45%)       24 Brands
  Shahrukh khan                  16 Brands
  Sachin Tendulkar               15 Brands
                     - Adex Survey of TAM Research
Kareena kapoor, Sonam kapoor, Kajol, Aishwarya Rai were
  the most popular faces.
Bollywood Actors (42%) & Sports personality (10%)
are associated for the celebrity endorsements on TV.
Top 5 categories endorsed by celebrities are:
Aerated soft drinks, Cellular phone services, Toilet Soaps,
Shampoos & Tele Vision.
Brands endorsed by celebrities are:
Lux, Pepsi, Airtel, Panasonic, Coca- cola.                    3
• Emami is making Bipasha Basu as their
  brand ambassader.
• Boroplus       Amitabh Bachan
• Navratan Oil   SRK
• Zandu Balm     Mallaika Arora khan (45-
  50%)



                                            4
Dabur India has roped
in Ravi Kishan to endorse
Chawanprash brands
for localized promotions.
(UP & Bihar)
Mr.Amitabh Bachchan &
Mr. Dhoni for national
Campaigns.
Airtel, Parle Monaco,
Marico Thanda Tel
had also signed him
For promotions.
                            5
• E-coupon        20-25 Crore market in total $1 bn
  advertising market.
• Sms, Emails, Snap deal.com,Open
  2save.com, Dealpals, Coupon seva.
• Kellogg’s chocos Rs 10 range (K-pak) is a low fat
  product with the goodness of wheat, vitamins and
  minerals. Roped Karishma kapoor for endorsement.
• They also tied up with Mobile 2 win for mobile gaming.
  Choco race for Kellogg’s chocos. It is instant hit for
  target group (6-14 yrs of kids).

                                                      6
Mr Anupam Dutta MD of
Kellogg’s is hopeful of
increasing their market share
in breakfast cereals in India.


                                 7
• Promotion: function of informing, persuading,
  and influencing the consumer’s purchase
  decision

• Marketing Communications: transmission
  from a sender to a receiver of a message
  dealing with the buyer-seller relationship




                                                  8
Marketing Communications

 The means by which firms attempt to
     inform, persuade, and remind
 consumers, directly or indirectly, about
   the products and brands they sell.




                                            9
Elements in the Communications Process

•   Sender
•   Message
•   Receiver
•   Response
•   Feedback
•   Noise

                                             10
The Communications Process
• An effective promotional message
  accomplishes three tasks:
  – It gains the receiver’s attention
  – It achieves understanding by both receiver
    and sender
  – It stimulates the receiver’s needs and
    suggests an appropriate method of
    satisfying them
                                                 11
• AIDA concept (Attention-Interest-
  Desire-Action) – an explanation of the
  steps through which an individual
  reaches a purchase decision
  – Sender
  – Encoding
  – Channel
  – Decoding
  – Response
  – Feedback
  – Noise
                                           12
13
The Communications Process


• Selective attention
• Selective distortion
• Selective retention



                              14
Objectives of Promotion
• Provide Information
  – Inform the market about the availability of a
    particular good or service
• Increase Demand
  – Some promotions are aimed at increasing
    primary demand, the desire for a general
    product category
  – More promotions are aimed at increasing
    selective demand, the desire for a specific
    brand
                                                    15
• Differentiate the Product
  – Homogenous demand for many products
    results when consumers regard the firm’s
    output as virtually identical to its
    competitors’– then, the firm has virtually no
    control over marketing variables
• Accentuate the Product’s Value
  – Promotion can explain the greater ownership
    utility of a product to buyers, thereby
    accentuating its value and justifying a higher
    price

                                                     16
• Stabilize Sales
  – For the typical firm, sales
    fluctuations may result from
    cyclical, seasonal, or irregular
    demand
  – Stabilizing these variations is often
    an objective of promotional
    strategy




                                            17
Elements of the Promotional Mix
• Promotional mix: blend of personal
  selling and non personal selling designed
  to achieve promotional objectives
  – Personal selling: interpersonal promotional
    process involving a seller’s person-to-person
    presentation to a prospective buyer
  – Nonpersonal selling includes:
    Advertising, Product placement, Sales
    promotion, Direct marketing, Public relations

                                                    18
• Advertising
  – Paid, nonpersonal communication through
    various media by a business firm, not-for-profit
    organization, or individual identified in the
    message with the hope of informing or
    persuading members of a particular audience

• Product Placement
  – Marketer pays a motion picture or television
    program owner a fee to display his or her
    product prominently in the film or show
                                                       19
• Sales Promotion
  – Marketing activities that stimulates
    consumer purchasing (includes:
    displays, trade shows, coupons,
    premiums, contests, product
    demonstrations, and various non
    recurrent selling efforts)
  – Trade promotion




                                           20
• Direct Marketing
  – Direct communications other than
    personal sales contact between
    buyer and seller, designed to
    generate sales, information requests,
    or store visits




                                            21
• Public relations: firm’s communications
  and relationships with its various publics

• Publicity: stimulation of demand for
  good, service, place, idea, person, or
  organization by unpaid placement of
  commercially significant news or favorable
  media presentations

                                               22
Sponsorships
• Provision of funds for a sporting or cultural
  event in exchange for a direct association
  with the events or activity




                                                  23
A significant number of premium car buyers
today use online channels to become familiar
  with the features of a car even before they
           step into the showrooms .

2-3% of sales from digital marketing in 2005.
  18-20% of sales from digital marketing in
                     2010.

                                            24
• Tata Motors will launch premium car
  “ARIA”. Priced at rs 12-13 lakh.
• Competitors Xylo, Innova.

• Company will invest Rs.1.5 cr in online
  campaign (Online game at
  buildadreamcar.com) in five stages.


                                            25
• Stallio 110 cc bikes priced at Rs.44,699.
• Mozo 390 cc bikes priced at Rs.1.79 lakh.
• Competitors are Hero Honda, Bajaj Auto.
• In 2008, M & M acquired Kinetic motors
  and launched Rhodeo scooters.Two
  wheelers sales during april-august 2010
  jumped 27%at 46.21 lakh units & Bikes
  grew at 35.35 lakh units (24% jump)
• Aamir Khan as brand ambassador.

                                              26
Characteristics of Marketing Communications Mix

Advertising             Sales Promotion
• Pervasiveness         • Communication
• Amplified             • Incentive
  expressiveness        • Invitation
• Impersonality




                                                  27
Characteristics of Marketing
           Communications Mix
Public Relations and        Events and
  Publicity                   Experiences
• High credibility          • Relevant
• Ability to catch buyers   • Involving
  off guard                 • Implicit
• Dramatization



                                            28
Characteristics of Marketing
          Communications Mix
Direct Marketing      Personal Selling
• Customized          • Personal interaction
• Up-to-date          • Cultivation
• Interactive         • Response




                                               29
The Battle
• Future group operates over 120 Big Bazaar
  stores, 170 Food Bazaar stores.
• Future group’s ecommerce venture future
  bazaar.com has revamped its online
  business portfolio (Started 4 years ago) and
  expects an around Rs 1,000 crore revenue
  over the next 18-24 months.
• Attractive deals are available on
  TVs, phones, laptops, apparels, home, kitch
  en appliances and home furnishings.
                                            30
Integrated Marketing Communications
• Coordination of all promotional
  activities – media advertising, direct
  mail, personal selling, sales
  promotion, and public relations – to
  produce a unified customer-focused
  promotional message
  – Success of any IMC program depends
    critically on identifying the members of an
    audience and understanding what they
    want
                                                  31
Developing an Optimal Promotional Mix


• Factors that influence the effectiveness of
  a promotional to mix:
  – Nature of the market
  – Nature of the product
  – Stage in the product life-cycle
  – Price
  – Funds available for promotion

                                                32
33
• Nikon corporation will spend Rs.62 crore
  on brand promotion in 2010-11.
• Nikon India will launch its new television
  commercial this week & is targeting 1800
  retail outlets for in-store branding.
• Company has converted 70-80% of grey
  marketer into authorized Nikon camera
  dealers.

                                               34
Influencing Factors            Personal Selling                     Advertising
Nature of the market           Limited number                       Large number
  Number of buyers             Concentrated                         Dispersed
  Geographic                   Business purchaser                   Ultimate consumer
    concentration
  Type of customer
Nature of the product          Custom-made, complex                 Standardized
  Complexity                   Considerable                         Minimal
  Service                      Business                             Consumer
    requirements
  Type of good or              Trade-ins common                     Trade-ins uncommon
    service
  Use of trade-ins
Stage in the product life      Often emphasized at every stage;     Often emphasized at every
cycle                          heavy emphasis in the introductory   stage; heavy emphasis in the
                               and early growth stages in           latter part of the growth stage,
                               acquainting marketing                as well as the maturity and
                               intermediaries and potential         early decline stages, to
                               consumers with the new good or       persuade consumers to select
                               service                              specific brands
Price                          High unit value                      Low unit value              35
Pulling and Pushing
          Promotional Strategies
• Pulling strategy: promotional effort by a seller to
  stimulate demand among final users, who will then
  exert pressure on the distribution channel to carry the
  good or service, pulling it though the marketing
  channel
• Pushing strategy: promotional effort by a seller to
  members of the marketing channel intended to
  stimulate personal selling of the good or service,
  thereby pushing it through the marketing channel


                                                            36
Communication Platforms
Advertising                 Sales Promotion
• Print and broadcast ads   • Contests, games
• Packaging inserts         • Premiums
• Motion pictures           • Sampling
• Brochures and booklets    • Trade shows, exhibits
• Posters                   • Coupons
• Billboards                • Rebates
• POP displays              • Entertainment
• Logos                     • Continuity programs
• Videotapes                • Tie-ins

                                                      37
Communication Platforms
Events/ Experiences      Public Relations
• Sports                 • Press kits
• Entertainment          • Speeches
• Festivals              • Seminars
• Arts                   • Annual reports
• Causes                 • Charitable donations
• Factory tours          • Publications
• Company museums        • Community relations
• Street activities      • Lobbying
                         • Identity media
                         • Company magazine       38
One in five US Kids aged six to 19 are obese,
        where BMI is greater than 30.
• The Walt Disney company had started “the Magic
  of healthy living” campaign.
• It will feature public service announcements by
  Michelle Obama, teen idols Nick Jonas, TV Star
  Brenda Song and other celebrities, all seeking “to
  inspire kids” to lead healthy lives and their
  parents to instill good habits in them.
• Disney will grant one million dollar to build play
  spaces and gardens in 10 undeserved
  communities nationwide.

                                                  39
Communication Platforms
Personal Selling          Direct Marketing
• Sales presentations     • Catalogs
• Sales meetings          • Mailings
• Incentive programs      • Telemarketing
• Samples                 • Electronic shopping
• Fairs and trade shows   • TV shopping
                          • Fax mail
                          • E-mail
                          • Voice mail


                                                  40
Figure 17.4 Steps in Developing Effective
              Communications
Identify target audience
   Determine objectives
     Design communications
            Select channels
               Establish budget
                 Decide on media mix
                       Measure results
                              Manage IMC
                                              41
Image
The set of beliefs, ideas, and impressions
  a person holds regarding an object.




                                             42
Communications Objectives

•   Category need
•   Brand awareness
•   Brand attitude
•   Purchase intention



                                 43
Designing the Communications

• Message strategy
• Creative strategy
• Message source




                               44
Selecting the Communications Channels


• Personal communication channels
• Non personal communication channels
• Integration




                                         45
Creative Strategy
• Informational and transformational appeals
• Positive and negative appeals
  –   Fear
  –   Guilt
  –   Shame
  –   Humor
  –   Love
  –   Pride
  –   Joy

                                               46
The Importance of Taglines
Brand Theme                  Ad Tagline
• Our car is more            “More Car per Car” (Tata
  spacious                     Indica)
• It is prestigious to own   “Neighbor’s Envy; Owner’s
  our brand of TV              Pride” (Onida TV)
• Our butter is tasty and    “Utterly Butterly Delicious”
  fun to eat                   (Amul Butter)
• Our motorbike is fuel      “Fill it, shut it, Forget it”
  efficient                    (Hero Honda motorcycle)

                                                             47
Message Source

Celebrity Characteristics
  – Expertise
  – Trustworthiness
  – Likeability



                            48
Personal Communications Channels


• Advocate Channels
• Expert Channels
• Social Channels




                                      49
Stimulating Personal Influence Channels
• Identify influential individuals and devote extra
  attention to them
• Create opinion leaders
• Use community influentials in testimonial
  advertising
• Develop advertising with high “conversation
  value”
• Develop WOM referral channels
• Establish an electronic forum
• Use viral marketing                                 50
Non personal Communication
               Channels
•   Media
•   Sales Promotion
•   Events and Experiences
•   Public Relations



                                   51
Budgeting for Promotional Strategy
 • Percentage-of-sales method

 • Fixed-sum-per-unit method

 • Meeting competition method

 • Task-objective method

                                     52
Method                   Description                               Example
Percentage-of-       Promotional budget is set as a      “Last year we spent $10,500 on
sales method         specified percentage of either      promotion and had sales of $420,000.
                     past or forecasted sales.           Next year we expect sales to grow to
                                                         $480,000, and we are allocating
                                                         $12,000 for promotion.”
Fixed-sum-per-unit   Promotional budget is set as a      “Our forecast calls for sales of 14,000
method               predetermined dollar amount for     units, and we allocate promotion at the
                     each unit sold or produced.         rate of $65 per unit.”


Meeting              Promotional budget is set to        “Promotional outlays average 4
competition          match competitor’s promotional      percent of sales in our industry.”
method               outlays on either an absolute or
                     relative basis.
Task-objective       Once marketers determine their      “By the end of next year, we want 75
method               specific, promotional objectives,   percent of the area high-school
                     the amount (and type) of            students to be aware of our new, highly
                     promotional spending needed to      automated fast-food prototype outlet.
                     achieve them is determined.         How many promotional dollars will it
                                                         take, and how should they be spent?”
                                                                                                53
Measuring the Effectiveness of Promotion
• Two basic measurement tools:
  – Direct sales results measures the effectiveness of
    promotion by revealing the specific impact on sales
    revenues for each dollar of promotional spending
  – Indirect evaluation concentrates on quantifiable
    indicators of effectiveness like:
     • Recall - how much members of the target market remember
       about specific products or advertisements
     • Readership – size and composition of a message’s
       audience


                                                                 54
• Measuring Online Promotions
  – Early attempts at measuring online promotional
    efforts involved counting hits and visits
  – Incorporating direct response and comparing
    different promotions for effectiveness
  – Two major techniques for setting online
    advertising rates:
    • Cost per impression (CPM), technique that related
      the cost of an ad to every thousand people who read
      it
    • Cost per response (click-throughs), which assumes
      that those who actually click on an ad want more
      information
                                                        55
Factors in Setting Marketing
        Communications Mix

• Type of Product Market
• Buyer Readiness to Make a Purchase
• Stage in the Product Life Cycle



                                       56

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7db3a integrated communications

  • 1. Managing the Integrated Communication What is communication? Setting of communication objectives, identifying target audience, modes of communication, designing message, choosing tool for communication, Media decisions, evaluating various media, Advertising management, Advertisement management, Managing sales promotions, evaluating results, integrating the entire communication, role of public relations and publicity, significance and managing communication through direct marketing and personnel selling, role of internet marketing, emerging communication trends. 1
  • 2. “Science of tough cleaning” means that its concept is based on the oxidization that oxidizes the stains 2
  • 3. Promotions Mahinder singh Dhoni (45%) 24 Brands Shahrukh khan 16 Brands Sachin Tendulkar 15 Brands - Adex Survey of TAM Research Kareena kapoor, Sonam kapoor, Kajol, Aishwarya Rai were the most popular faces. Bollywood Actors (42%) & Sports personality (10%) are associated for the celebrity endorsements on TV. Top 5 categories endorsed by celebrities are: Aerated soft drinks, Cellular phone services, Toilet Soaps, Shampoos & Tele Vision. Brands endorsed by celebrities are: Lux, Pepsi, Airtel, Panasonic, Coca- cola. 3
  • 4. • Emami is making Bipasha Basu as their brand ambassader. • Boroplus Amitabh Bachan • Navratan Oil SRK • Zandu Balm Mallaika Arora khan (45- 50%) 4
  • 5. Dabur India has roped in Ravi Kishan to endorse Chawanprash brands for localized promotions. (UP & Bihar) Mr.Amitabh Bachchan & Mr. Dhoni for national Campaigns. Airtel, Parle Monaco, Marico Thanda Tel had also signed him For promotions. 5
  • 6. • E-coupon 20-25 Crore market in total $1 bn advertising market. • Sms, Emails, Snap deal.com,Open 2save.com, Dealpals, Coupon seva. • Kellogg’s chocos Rs 10 range (K-pak) is a low fat product with the goodness of wheat, vitamins and minerals. Roped Karishma kapoor for endorsement. • They also tied up with Mobile 2 win for mobile gaming. Choco race for Kellogg’s chocos. It is instant hit for target group (6-14 yrs of kids). 6
  • 7. Mr Anupam Dutta MD of Kellogg’s is hopeful of increasing their market share in breakfast cereals in India. 7
  • 8. • Promotion: function of informing, persuading, and influencing the consumer’s purchase decision • Marketing Communications: transmission from a sender to a receiver of a message dealing with the buyer-seller relationship 8
  • 9. Marketing Communications The means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell. 9
  • 10. Elements in the Communications Process • Sender • Message • Receiver • Response • Feedback • Noise 10
  • 11. The Communications Process • An effective promotional message accomplishes three tasks: – It gains the receiver’s attention – It achieves understanding by both receiver and sender – It stimulates the receiver’s needs and suggests an appropriate method of satisfying them 11
  • 12. • AIDA concept (Attention-Interest- Desire-Action) – an explanation of the steps through which an individual reaches a purchase decision – Sender – Encoding – Channel – Decoding – Response – Feedback – Noise 12
  • 13. 13
  • 14. The Communications Process • Selective attention • Selective distortion • Selective retention 14
  • 15. Objectives of Promotion • Provide Information – Inform the market about the availability of a particular good or service • Increase Demand – Some promotions are aimed at increasing primary demand, the desire for a general product category – More promotions are aimed at increasing selective demand, the desire for a specific brand 15
  • 16. • Differentiate the Product – Homogenous demand for many products results when consumers regard the firm’s output as virtually identical to its competitors’– then, the firm has virtually no control over marketing variables • Accentuate the Product’s Value – Promotion can explain the greater ownership utility of a product to buyers, thereby accentuating its value and justifying a higher price 16
  • 17. • Stabilize Sales – For the typical firm, sales fluctuations may result from cyclical, seasonal, or irregular demand – Stabilizing these variations is often an objective of promotional strategy 17
  • 18. Elements of the Promotional Mix • Promotional mix: blend of personal selling and non personal selling designed to achieve promotional objectives – Personal selling: interpersonal promotional process involving a seller’s person-to-person presentation to a prospective buyer – Nonpersonal selling includes: Advertising, Product placement, Sales promotion, Direct marketing, Public relations 18
  • 19. • Advertising – Paid, nonpersonal communication through various media by a business firm, not-for-profit organization, or individual identified in the message with the hope of informing or persuading members of a particular audience • Product Placement – Marketer pays a motion picture or television program owner a fee to display his or her product prominently in the film or show 19
  • 20. • Sales Promotion – Marketing activities that stimulates consumer purchasing (includes: displays, trade shows, coupons, premiums, contests, product demonstrations, and various non recurrent selling efforts) – Trade promotion 20
  • 21. • Direct Marketing – Direct communications other than personal sales contact between buyer and seller, designed to generate sales, information requests, or store visits 21
  • 22. • Public relations: firm’s communications and relationships with its various publics • Publicity: stimulation of demand for good, service, place, idea, person, or organization by unpaid placement of commercially significant news or favorable media presentations 22
  • 23. Sponsorships • Provision of funds for a sporting or cultural event in exchange for a direct association with the events or activity 23
  • 24. A significant number of premium car buyers today use online channels to become familiar with the features of a car even before they step into the showrooms . 2-3% of sales from digital marketing in 2005. 18-20% of sales from digital marketing in 2010. 24
  • 25. • Tata Motors will launch premium car “ARIA”. Priced at rs 12-13 lakh. • Competitors Xylo, Innova. • Company will invest Rs.1.5 cr in online campaign (Online game at buildadreamcar.com) in five stages. 25
  • 26. • Stallio 110 cc bikes priced at Rs.44,699. • Mozo 390 cc bikes priced at Rs.1.79 lakh. • Competitors are Hero Honda, Bajaj Auto. • In 2008, M & M acquired Kinetic motors and launched Rhodeo scooters.Two wheelers sales during april-august 2010 jumped 27%at 46.21 lakh units & Bikes grew at 35.35 lakh units (24% jump) • Aamir Khan as brand ambassador. 26
  • 27. Characteristics of Marketing Communications Mix Advertising Sales Promotion • Pervasiveness • Communication • Amplified • Incentive expressiveness • Invitation • Impersonality 27
  • 28. Characteristics of Marketing Communications Mix Public Relations and Events and Publicity Experiences • High credibility • Relevant • Ability to catch buyers • Involving off guard • Implicit • Dramatization 28
  • 29. Characteristics of Marketing Communications Mix Direct Marketing Personal Selling • Customized • Personal interaction • Up-to-date • Cultivation • Interactive • Response 29
  • 30. The Battle • Future group operates over 120 Big Bazaar stores, 170 Food Bazaar stores. • Future group’s ecommerce venture future bazaar.com has revamped its online business portfolio (Started 4 years ago) and expects an around Rs 1,000 crore revenue over the next 18-24 months. • Attractive deals are available on TVs, phones, laptops, apparels, home, kitch en appliances and home furnishings. 30
  • 31. Integrated Marketing Communications • Coordination of all promotional activities – media advertising, direct mail, personal selling, sales promotion, and public relations – to produce a unified customer-focused promotional message – Success of any IMC program depends critically on identifying the members of an audience and understanding what they want 31
  • 32. Developing an Optimal Promotional Mix • Factors that influence the effectiveness of a promotional to mix: – Nature of the market – Nature of the product – Stage in the product life-cycle – Price – Funds available for promotion 32
  • 33. 33
  • 34. • Nikon corporation will spend Rs.62 crore on brand promotion in 2010-11. • Nikon India will launch its new television commercial this week & is targeting 1800 retail outlets for in-store branding. • Company has converted 70-80% of grey marketer into authorized Nikon camera dealers. 34
  • 35. Influencing Factors Personal Selling Advertising Nature of the market Limited number Large number Number of buyers Concentrated Dispersed Geographic Business purchaser Ultimate consumer concentration Type of customer Nature of the product Custom-made, complex Standardized Complexity Considerable Minimal Service Business Consumer requirements Type of good or Trade-ins common Trade-ins uncommon service Use of trade-ins Stage in the product life Often emphasized at every stage; Often emphasized at every cycle heavy emphasis in the introductory stage; heavy emphasis in the and early growth stages in latter part of the growth stage, acquainting marketing as well as the maturity and intermediaries and potential early decline stages, to consumers with the new good or persuade consumers to select service specific brands Price High unit value Low unit value 35
  • 36. Pulling and Pushing Promotional Strategies • Pulling strategy: promotional effort by a seller to stimulate demand among final users, who will then exert pressure on the distribution channel to carry the good or service, pulling it though the marketing channel • Pushing strategy: promotional effort by a seller to members of the marketing channel intended to stimulate personal selling of the good or service, thereby pushing it through the marketing channel 36
  • 37. Communication Platforms Advertising Sales Promotion • Print and broadcast ads • Contests, games • Packaging inserts • Premiums • Motion pictures • Sampling • Brochures and booklets • Trade shows, exhibits • Posters • Coupons • Billboards • Rebates • POP displays • Entertainment • Logos • Continuity programs • Videotapes • Tie-ins 37
  • 38. Communication Platforms Events/ Experiences Public Relations • Sports • Press kits • Entertainment • Speeches • Festivals • Seminars • Arts • Annual reports • Causes • Charitable donations • Factory tours • Publications • Company museums • Community relations • Street activities • Lobbying • Identity media • Company magazine 38
  • 39. One in five US Kids aged six to 19 are obese, where BMI is greater than 30. • The Walt Disney company had started “the Magic of healthy living” campaign. • It will feature public service announcements by Michelle Obama, teen idols Nick Jonas, TV Star Brenda Song and other celebrities, all seeking “to inspire kids” to lead healthy lives and their parents to instill good habits in them. • Disney will grant one million dollar to build play spaces and gardens in 10 undeserved communities nationwide. 39
  • 40. Communication Platforms Personal Selling Direct Marketing • Sales presentations • Catalogs • Sales meetings • Mailings • Incentive programs • Telemarketing • Samples • Electronic shopping • Fairs and trade shows • TV shopping • Fax mail • E-mail • Voice mail 40
  • 41. Figure 17.4 Steps in Developing Effective Communications Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Measure results Manage IMC 41
  • 42. Image The set of beliefs, ideas, and impressions a person holds regarding an object. 42
  • 43. Communications Objectives • Category need • Brand awareness • Brand attitude • Purchase intention 43
  • 44. Designing the Communications • Message strategy • Creative strategy • Message source 44
  • 45. Selecting the Communications Channels • Personal communication channels • Non personal communication channels • Integration 45
  • 46. Creative Strategy • Informational and transformational appeals • Positive and negative appeals – Fear – Guilt – Shame – Humor – Love – Pride – Joy 46
  • 47. The Importance of Taglines Brand Theme Ad Tagline • Our car is more “More Car per Car” (Tata spacious Indica) • It is prestigious to own “Neighbor’s Envy; Owner’s our brand of TV Pride” (Onida TV) • Our butter is tasty and “Utterly Butterly Delicious” fun to eat (Amul Butter) • Our motorbike is fuel “Fill it, shut it, Forget it” efficient (Hero Honda motorcycle) 47
  • 48. Message Source Celebrity Characteristics – Expertise – Trustworthiness – Likeability 48
  • 49. Personal Communications Channels • Advocate Channels • Expert Channels • Social Channels 49
  • 50. Stimulating Personal Influence Channels • Identify influential individuals and devote extra attention to them • Create opinion leaders • Use community influentials in testimonial advertising • Develop advertising with high “conversation value” • Develop WOM referral channels • Establish an electronic forum • Use viral marketing 50
  • 51. Non personal Communication Channels • Media • Sales Promotion • Events and Experiences • Public Relations 51
  • 52. Budgeting for Promotional Strategy • Percentage-of-sales method • Fixed-sum-per-unit method • Meeting competition method • Task-objective method 52
  • 53. Method Description Example Percentage-of- Promotional budget is set as a “Last year we spent $10,500 on sales method specified percentage of either promotion and had sales of $420,000. past or forecasted sales. Next year we expect sales to grow to $480,000, and we are allocating $12,000 for promotion.” Fixed-sum-per-unit Promotional budget is set as a “Our forecast calls for sales of 14,000 method predetermined dollar amount for units, and we allocate promotion at the each unit sold or produced. rate of $65 per unit.” Meeting Promotional budget is set to “Promotional outlays average 4 competition match competitor’s promotional percent of sales in our industry.” method outlays on either an absolute or relative basis. Task-objective Once marketers determine their “By the end of next year, we want 75 method specific, promotional objectives, percent of the area high-school the amount (and type) of students to be aware of our new, highly promotional spending needed to automated fast-food prototype outlet. achieve them is determined. How many promotional dollars will it take, and how should they be spent?” 53
  • 54. Measuring the Effectiveness of Promotion • Two basic measurement tools: – Direct sales results measures the effectiveness of promotion by revealing the specific impact on sales revenues for each dollar of promotional spending – Indirect evaluation concentrates on quantifiable indicators of effectiveness like: • Recall - how much members of the target market remember about specific products or advertisements • Readership – size and composition of a message’s audience 54
  • 55. • Measuring Online Promotions – Early attempts at measuring online promotional efforts involved counting hits and visits – Incorporating direct response and comparing different promotions for effectiveness – Two major techniques for setting online advertising rates: • Cost per impression (CPM), technique that related the cost of an ad to every thousand people who read it • Cost per response (click-throughs), which assumes that those who actually click on an ad want more information 55
  • 56. Factors in Setting Marketing Communications Mix • Type of Product Market • Buyer Readiness to Make a Purchase • Stage in the Product Life Cycle 56