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Mm unit 4point3

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MBA II

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Mm unit 4point3

  1. 1. Communication Mix in Marketing: Course: MBA Subject: MM II Unit: 4
  2. 2. Designing and Managing Integrated Marketing Communication • Integrated Marketing Communication is the combination and integration of different modes of communication by the company and its associates in order to give a complete communication portfolio to all its audiences at regular intervals. These modes of communication are advertising, sales promotion, public relations and publicity, personal selling and direct marketing.
  3. 3. Designing and Managing Integrated Marketing Communication… Communication is an interactive dialogue between the company and its customers that takes place during the pre-selling, selling, consuming, and post- consuming stages. The communication exercise goes beyond the modes listed in the previous slide. The product’s styling and price, the shape and color of the package, the salesperson’s manner and dress, the place’s ambience, the company’s stationery-all communicate something to the buyers/customers/end-users
  4. 4. Designing and Managing Integrated Marketing Communication… • IMC supports a common idea of communication across all the communication vehicles. Ideally, it allows each communication element to do what it does best rather than translating a TV ad. • The emphasis today is on total communication planning, and not just media planning. Agencies play a significant role in this direction. The communication can be lead at times by Direct Marketing and at other times by Public Relations. • The crux of the matter is that the whole communication needs to be integrated which does not lead to any confusion.
  5. 5. Designing and Managing Integrated Marketing Communication… • Companies are not always comfortable in doing this integration. In case, it fails, then responsibility of failure should be identified and remedial measures taken. Ultimately, it is the Marketing Manager’s job to control the whole communication package.
  6. 6. Designing and Managing Integrated Marketing Communication… • The entire Marketing Process has a large content of communication. The product communicates a distinctive image such as youthfulness, glamour and prestige. The brand name communicates the physical and psychological attributes of a product e g., Sugar free sweetener. The package communicates to the consumer what the manufacturer thinks of his convenience and sense of beauty. The price communicates the quality of the product.
  7. 7. Designing and Managing Integrated Marketing Communication… • There are communication between buyers and sellers i.e., distribution channel., Thus, each element of the marketing mix either helps or hinders communication and ultimately the sales effort. Marketing Communication is thus a broader term than promotional strategy. • However, the most important element of marketing communication is the planned promotional communication.
  8. 8. Designing and Managing Integrated Marketing Communication… Sender Encoding Media/ channel Decoding Receiver Noise Distortions ResponseFeedback
  9. 9. Designing and Managing Integrated Marketing Communication… The end result of the communication process is the understanding of the communication message. As given in the diagram earlier, each and every stage of the communication process has a role to play.
  10. 10. Designing and Managing Integrated Marketing Communication… The sender is the source of the message. It puts the message in symbolic form say a letter or advertising copy. It is called ‘encoding’. The message is carried by the media viz., the postal department or TV or newspapers. The message is received by the receiver who shows a particular response which is communicated back to the sender. The message must accomplish three tasks in order to be effective. These tasks are as follows: 1. It must gain the attention of the receiver.
  11. 11. Designing and Managing Integrated Marketing Communication… 2. It must be understood. 3. It must stimulate the needs of the receiver and suggest appropriate method to satisfy these needs. Senders must be aware of the receivers or audiences they want to reach and the responses they want. They must be skilful in encoding the message, taking into account how the receiver or the audience is going to decode the message. Since the sender wants the receiver to understand the message, the sender must know as much as possible about the receiver before the message is designed.
  12. 12. Designing and Managing Integrated Marketing Communication… The sender puts the message through efficient media that reach the audience. The response of the audience is known by developing the feedback channels. In this process, noise may distort the effectiveness of communication. Noise includes poor message planning, busy audience members or careless feedback or response.
  13. 13. Designing and Managing Integrated Marketing Communication… • The Integrated Marketing Communication Mix consists of four major tools: 1. Advertising: Any paid form of non-personal presentation of ideas, products and services by an identified sponsor. (A) 2. Sales Promotion: Short-term direct inducements to encourage sales of products and services. (SP) 3. Publicity: Non-personal stimulation of demand for a product/ service or business organization as a whole by putting commercially significant news in media to create a favorable image. It is not paid for by the sponsor. (P)
  14. 14. Designing and Managing Integrated Marketing Communication… 4. Personal Selling: For making sales, a salesman interacts orally with the buyer or buyers in the form of a sales presentation. (PS) 5. Public Relations: Marketers engage in public relations to develop a favorable image of their organizations in the eyes of public-public at large, customers, suppliers, government, media, competitors, shareholders, employees and the society. (PR)
  15. 15. Designing and Managing Integrated Marketing Communication… 6. Events and Experiences: Activities and programs sponsored by company designed to create daily or special brand related interactions. (EE) 7. Direct marketing: Here mail, telephone, fax, e-mail or internet is used to communicate directly with or solicit response or dialogue from specific customers or prospects. (DM)
  16. 16. IMC to build brand equity Mktg Commn Program Brand Equity SP EE A PR & P PS DM Brand awarenesss Brand Image Brand responses Brand relationships
  17. 17. Designing and Managing Integrated Marketing Communication… The starting point in planning marketing communications is an audit of all the potential interactions that customers in the target market may have with the brand and the company. Someone interested in purchasing a new computer might talk to others, see television ads, read articles, look for information on the internet, and look at computers in a store. Marketers need to assess the influences of each of these experiences and impressions in the consumer decision making
  18. 18. Managing Mass Communications: Advertising, Sales Promotion, Events & Experiences , and Public Relations Advertising is any paid form of non-personal presentation of ideas, goods or services by an identified sponsor. After identifying the target market and buyer motives, five major decisions are taken in developing advertising campaign Known as five Ms, these are Mission: it details the objectives of advertising Money: It tells the expenditure to be incurred on the campaign Message: It tells the message to be sent to audiences targeted Media: It outlines the media vehicles to be used for the campaign Measurement: It tells as to how the results of the campaign are to be evaluated
  19. 19. Managing Mass Communications: Advertising, Sales Promotion, Events & Experiences , and Public Relations.. Mission: Setting of objectives is done here. These can be informative, persuasive, reminder or reinforcement advertising Money: It calls upon deciding upon the advertising budget. It involves various factors like stage in the Product Life Cycle, Market share and consumer base, Competition and clutter, frequency of advertising and substitutability of the product. Message: It involves developing the advertising campaign, It being the main element, requires the utmost precaution. It involves message generation and evaluation. Thereafter it considers creative inputs to go into the message and its execution also. This phase also has to consider social responsibility of the company including legal aspects.
  20. 20. Managing Mass Communications: Advertising, Sales Promotion, Events & Experiences , and Public Relations.. Media: This involves the decision regarding media vehicle/s to be used for carrying the message to its audiences. Media is to be considered on the basis of the reach®, frequency (F) and impact ((I) of the exposures. Total number of exposures= RXF( Also called as Gross Rating points (GRP)) Weighted number of exposures=RXFXI On the basis of this calculations, the media options have to be chosen. The following variable also need to be considered a. Target audience media habits b. Product characteristics c. Message characteristics d Cost
  21. 21. Managing Mass Communications: Advertising, Sales Promotion, Events & Experiences , and Public Relations.. Media… Alternative advertising options may be Place advertising i.e., bill- boards and public spaces. It also includes Product Placement in films and TV Shows, Point of purchase communication and evaluating alternative media While selecting specific vehicles of media, one has to look into circulation, audience, effective audience and effective ad-exposed audience. Media timing and allocation also needs to be decided. I t involves choosing among continuity, concentration, flighting and pulsing.
  22. 22. Managing Mass Communications: Advertising, Sales Promotion, Events & Experiences , and Public Relations.. Measurement: It is important to measure the communication effect of an ad on the awareness, knowledge or preference of the product with the audience. It is done in two types of research. a. Communication-effect research; Also called as copy testing, it seeks to determine whether an ad is communicating effectively or not. This can be done by taking consumer feedback from a sample of consumers asking a series of questions to them. Portfolio tests can also be administered where consumers are asked to listen or view a portfolio of advertisements. Thereafter, they are asked to recall all the ads and their content ,aided or un-aided by the interviewer. Laboratory tests can also be used on a sample of consumers. It includes equipment to measure physiological reactions-heart best, blood pressure, perspiration etc.
  23. 23. Managing Mass Communications: Advertising, Sales Promotion, Events & Experiences , and Public Relations.. Measurement.. b. Sales–effect Research: The effect of advertising on sales is difficult to measure, however advertising and research in this direction continue to get answer to this question as best as possible. Researchers try to measure the sales impact through analyzing historical and experimental data. The historical approach involves correlating past sales to past advertising expenditures using advanced statistical techniques.
  24. 24. Managing Mass Communications: Advertising, Sales Promotion, Events & Experiences , and Public Relations.. Sales Promotion: It can be in any form but it should have objectives and tools clearly identified. Objectives for consumers may be encouraging purchase of larger sized units, generating trials among non-users and attracting switchers from competitors brands. Objectives for retailers may be persuading them to carry new items and higher levels of inventory, encouraging off-season buying, encouraging stocking of related items, offsetting competitive promotions, building brand loyalty, and gaining entry into new retail outlets. Objectives for sales force may be encouraging support of a new product or model, encouraging more prospecting and stimulating off-season sales.
  25. 25. Managing Mass Communications: Advertising, Sales Promotion, Events & Experiences , and Public Relations.. Sales Promotion… Tools for consumer promotion may be samples, coupons, cash refund offers, price packs, gifts, purchase frequency programs, warranties, Point-of-purchase displays and demonstrations. Tools for Trade promotions may be price-off, allowance for advertising or displaying to retailers or free goods of merchandise to intermediaries who buy a certain quantity or a certain flavor or size. Tools for Business and sales Promotion may be trade shows and conventions, sales contests and specialty advertising through pens, calendars, key chains, writing pads etc to identified business audiences
  26. 26. Managing Mass Communications: Advertising, Sales Promotion, Events & Experiences , and Public Relations.. Events and Experiences: Sponsoring Events provide companies with opportunities to obtain wider exposure for their brands, and in influencing attitudes towards brands. Objectives of events can be identifying with a particular target market or lifestyle, increasing awareness of company or product name, creating or reinforcing perceptions of key brand image associations, enhancing corporate image, creating experiences and evoking feelings, expressing commitments to the community on social issues, entertaining key clients or rewarding key employees and permitting merchandising or promotional activities. Major sponsorship decisions are choosing events, designing sponsorship programs and measuring sponsorship activities.
  27. 27. Managing Mass Communications: Advertising, Sales Promotion, Events & Experiences , and Public Relations.. Public Relations: A Public is any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives. Public Relations (PR) involves a variety of programs designed to promote or protect a company’s image or its individual products. The best PR departments of professional organizations spend time counseling top management to adopt positive programs and to eliminate questionable practices so that negative publicity does not arise in the first place. Mainly, they perform following functions a. Relations with the press b. Publicizing product/s through sponsorship/s c. Corporate communications internally as well externally d. lobbying with legislators and government officials to promote or defeat legislation and regulation e. Counseling Management about public issues and company positions, image during good and bad times.
  28. 28. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling Direct Marketing (DM): It is the use of consumer-direct (CD) channels to reach and deliver goods and services to customers without using marketing middlemen. Direct marketers can use a number of channels to reach individual prospects and customers: direct mail, catalog marketing, telemarketing, interactive TV, kiosks, Web sites, and mobile services. It helps in de-massifying market, focussed targeting and reaching prospects at right time. However, DM is criticized on grounds of its capacity to irritate people, being unfair to them, deceptive as well as intruding into their privacy
  29. 29. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling… Interactive Marketing: Marketing through internet provides marketers and consumers with opportunities for much greater interaction and individualization. Advantages are customization of ad messages, instantaneous gauging of response as well buying ad space on sites related to Marketers offerings. However, it has disadvantages due to consumers power to screen out communications perceived undesirable by them.
  30. 30. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling… Word of Mouth: When consumers talk about products and services through internet, it is word of mouth. Companies use this powerful tool to their advantage by making such talk go in their favor ultimately. Social networking sites add lot of activity around this fast emerging marketing tool. It gets manifested in the form of buzz, opinion leaders being used and blogging for and on behalf of companies. However, it requires to be in control of this tool as this word of mouth can also become negative. In such a case, companies have to counter this negative effect and minimize damage due to it as fast as possible.
  31. 31. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling… Designing the Sales Force: The term sales representative covers a broad range of positions. There sequencing from the least to the most creative is as follows: 1.Deliverer is the one who mainly delivers the product/s to assigned destination 2.Order taker can be inside the company taking the order on the counter or outside the company negotiating with a distributor or shopping mall manager for order/s 3. Missionary is the one who spreads positive word of mouth about the company and does not takes any order 4. Technician who is highly sound technically and uses this knowledge to get orders and also consults clients
  32. 32. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling… Designing the Sales Force… 5. Demand creator is the one who uses creative inputs to sell products to clients 6. Solution vendor is the sales person who solves the client’s problem with his/her company’s products or services. Sales Force objectives and Strategy: Objectives of Sales Force are many and these depend upon the situations in which a sales person is with respect to different orders. These can be prospecting, targeting, communicating, selling, Servicing, collecting useful information from market and allocating resources.
  33. 33. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling… Designing the Sales Force… Sales Force Structure Strategy will guide the structure. A company that sells one product line to one end-using industry with customers in many locations would use a territorial structure. A Company that sells many products to many types of customers might need a product or market structure.
  34. 34. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling… Designing the Sales Force… Sales Force Size It can be determined on the basis of workload approach. 1. Customers are grouped into size classes according to annual sales volume. 2. Desirable call frequencies (number of calls on an account per year) are established for each class. 3. This call frequency is multiplied with its corresponding number of accounts generating the total number of sales calls in the whole year for the country. 4. The average number of sales call a representative can make in a year is determined separately. 5. Output of 3 is divide by output of 4 to get the number of sales representatives for the market in the whole year.
  35. 35. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling… Designing the Sales Force… Sales Force Compensation: On the one hand, sales reps want income regularity, extra reward for above average performance and fair payment for experience and longevity. On the other hand, management wants control, economy and simplicity. We do find conflicts at times and at times, it appears very smooth sailing. Compensation to sales people should involve a fixed amount (salary), a variable amount (commissions, bonus, profit sharing etc), expense allowances( expenses involved in traveling and entertaining) and benefits( paid vacations, sickness or accident benefits,pensions, and life insurance etc)
  36. 36. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling… Managing the Sales Force Recruiting and Selecting Representatives It requires to assess the requirement of sales reps in numbers as well as qualities required etc. It also calls upon the company to develop its selection criteria. In recruitment, the human resources wing of the company seeks applicants by soliciting names from current sales reps, using employment (placement) agencies, advertising in media and contacting college students.
  37. 37. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling… Managing the Sales Force… Training and Supervising Sales Representatives In order to have deep product knowledge, helping customer’s use products more effectively besides being efficient and reliable, new sales reps need to be trained and supervised. Depending upon the products to be handled, markets to be covered and the complexity of selling task, this training is imparted. Sales Rep productivity can be increased by creating norms about calls for prospects, using sales time most efficiently when time also gets spent in many non-sales related work.
  38. 38. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling… Managing the Sales Force… Motivating Sales Representatives Sales reps usually work alone, have irregular work hours, besides being away from home most of the time. They are most of the times at receiving ends of their buyers and they also do not posses the necessary authority to win order/s. Also, it happens at times that inspite of hardwork, they do not get the order. All this makes them highly de-motivated from time to time. Management needs to have them continuously motivated to ward off such de-motivation regularly.
  39. 39. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling… Managing the Sales Force… Motivating Sales Representatives…. To keep motivation at a high level, marketers re-inforce intrinsic and extrinsic rewards of all types. The different rewards are pay hike, promotion, performance based incentives, personal growth and sense of accomplishment. However, other rewards also include liking and respect, security and recognition. Company has to see that what motivates whom as everything will not motivate everyone. This differential motivational plan is difficult to administer but than nothing is easy as motivation is concerned.
  40. 40. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling… Managing the Sales Force… Evaluating Sales Representatives Sales reps are evaluated on the basis of the information available on their performance. The major source of information are sales reports. Additional info comes through personal information, salesperson self reports, customer letters and complaints, customer surveys and conversations with other sales reps. A Formal evaluation is also done on the various figures related to a particular salesperson
  41. 41. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling… Principles of Personal Selling Selling one’s product through personal interaction is personal selling. Companies spend millions of dollars each year to train sales people in the art of selling. Through these training, salesperson gets transformed from a passive order taker into an active order getter who engages in customer problem solving.
  42. 42. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling… Principles of Personal Selling…. Steps in Personal Selling 1. Prospecting and qualifying : It requires to identify and qualify prospects. Many Companies get it done so that sales people concentrate on real selling. 2. Pre-approach: It goes into preparing for association with the prospect company through finding it various details, setting call objectives, info gathering, best contact method/s. 3. Presentation and Demonstration: It involves story telling about the co product and relating it to features, advantages, benefits and values to the prospect.
  43. 43. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling… Principles of Personal Selling…. 4. Overcoming objections: Customers usually have two types of objections viz., Psychological and logical. 5. Closing: Now the salesperson attempts to close the sale by using several techniques. Asking for the order, reworking the points of agreement, indicating that the buyer may lose something if order is not given now etc. 6. Follow-up and maintenance. With the order taken and delivery committed, salesperson should establish necessary details like delivery time, purchase terms, and other matters that are important to the customer. Salesperson should continue follow up and maintenance requirements regularly.
  44. 44. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling… Principles of Personal Selling…. Negotiation In negotiated exchange, price and other terms are set via bargaining behavior. Here two or more parties negotiate long-term binding agreements. Price is the most frequently negotiated issue, but other issues which get negotiated are contract completion time, quality of goods and services offered, purchase volume, responsibility for financing, risk taking, promotion, title ownership and product safety.
  45. 45. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling… Principles of Personal Selling…. Relationship Marketing In many cases, the company is not seeking an immediate sale, but rather to build a long term supplier-customer relationship. Here the company demonstrates that it has the capabilities to serve the account’s needs in a superior way. However, relationship marketing has emerged as a very strong tool for long term business and professional relationships, it is not effective in all situations. The company has to judge as to which segments and which specific customers will respond positively to relationship marketing.
  46. 46. Sources:- • Koshy and kotler,Marketing Management.

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