Marketing Communication

Marketing Communications Framework

Marketing communications are all the

communications between the organization and

all other parties। Part of the wider academic

research area of marketing, it encompasses all

the traditional forms of promotion including

advertising, sales promotion, personal selling,

publicity and public relations। But it aims to be

broader than this. It includes all points of contact between the organization and other parties. It includes everything

from the way the telephone is answered, to the way the fleet of vehicles is maintained and used, to the quality of

envelopes used.

It is commonly accepted that Integrated Marketing Communications should be the goal of such a marketing

communications strategy. All points of contact with the organization should present the same corporate image.

(Multiple Touch Points)

Integrated Marketing Communication is more than the coordination of a company‟s outgoing message between

different media and the consistency of the message throughout. It is an aggressive marketing plan that captures and

uses an extensive amount of customer information in setting and tracking marketing strategy.

Steps in an Integrated Marketing system are:

1) Customer Database - An essential element to implementing Integrated Marketing that helps to segment and

analyze customer buying habits।

2) (a) Strategies - Insight from analysis of customer data is used to shape marketing, sales, and communications

strategies

(b)Tactics - Once the basic strategy is determined the appropriate marketing tactics can be specified which best

targets the specific markets।

3) Evaluate Results Customer responses and new information about buying habits are collected and analyzed to

determine the effectiveness of the strategy and tactics।

Complete the loop; start again at #1

Modern and Urban Advertising

Non Sales Revenue in Modern Retail

Non Sales Revenue form a good percentage of the revenue generated for organized retailers। This concept is ever

prevalent in the US where in-store advertising and the fight for best visible shelf space has been around for a

while।The non sales revenue earn upto 45% of the operating profits in the case of big retailers like Big Bazaar and

even smaller ones like ITC‟s Choupal Saagar।

 In Store:

Shop – in – Shop

Gondola advertising

Glow Signs

Display Signage

Store Impulse bins / Product Display space

 Outside Store:

Show Window

Store front-facia

Kiosk - All these modes bring in money in the form of non-core activities. The leveraging power of the Retailer kicks

in here.

There are certain brands which are strong enough to be placed where they want to be placed and still pay minimal if

any to the Retailer.

A simple example is Cadbury‟s:

Majority of the retailers place

Cadbury coolers at impulse

points and near the cashier

without the company having to

pay retailer for that space.

An example of a Shop-in-Shop

is shown here, where Music

World has set up a counter

inside a bigger Retail outlet.

Brand Building
THE BRAND EXPERIENCE &
SUSTENANCE MODEL

This model has been built to

better understand the various
parameters that are involved in
the road to the creation of brand
sustenance. Every parameter is
influenced by the consumers and
their experience acts as the
bridge between building a brand
from inception to its sustenance
through brand loyalty.

The variables influence each of the parameters and determine the success and future of the brand. The major drivers

of the model; Brand Experience and Brand Ambassador are determined by brand usage, indirect experience, brand

performance; and Viral Marketing, B2B-B2C-C2C, Relationships respectively. Relationships for instance are the

collaborations and partnerships that firms have with their clients and other complementary businesses.

BRAND BUILDING

Brand Loyalty
Brand Awareness

 Points of Difference  Repeat Business

 Points of Parity  Recall
 Competitive Advantage  Resonance
 Associations
 Image
Brand Ambassadors
 Identity

 B2B B2C & C2C

Brand Experience  Relationships
 Viral Marketing
 Usage
 Indirect
Brand Sustenance
 Performance

 Continuous Augmentation
 Equity
 Consistency
Ads Effectiveness
Increasing Ad Effectiveness
Magazines (Print Media)

Increase Readership of Your Message – Run Two Ads in the Same Issue.

Repetition is the foundation of communications.

Studies have shown that more readers see ads when they are repeated over time, but how do readers respond when
an advertiser runs two different ads with the same sales message in the same issue?

Logic would say that adding a second advertisement to an issue would bring additional readers to the message. Some
readers who read the first ad would pass on the second, and some who didn‟t read the first ad would stop and read
the second. If the unduplicated readership of both ads is higher than the readership of the first ad, then the second
ad brings incremental readers to the message. In the case above, taken from two 1-page, 4-color ads running in a
single issue, 46% of respondents read the first ad and 38% read the second. The unduplicated readership though,
shows that 63% of respondents read at least one of the ads. Running the second ad increased readership of the
message by more than one third over the first ad.

Running two ads in an issue can help maximize readership of a sales message.

Utilizing this strategy is ideal for:

New product introductions (Dove, Zero Damage)
Immediate release information about product improvements or updates
To support a sales push or promotion (Airtel)

Indian Context: Billboards

The Dove “Zero Damage” campaign has been running throughout India,

especially in the metros. It follows a similar concept to the magazine example

given above.

Marine Drive in Mumbai is filled continuously at a space of about 100-200 m with repetitive, but different Dove ads.
Each communicates the same product, yet is hits the consumer again and again. Thus the cumulative unduplicated
viewing percentage among consumers would be very high.

The 5 M’s of Advertising

Co Branding

Co-branding is a marketing arrangement that associates a single product or service with more than one brand name,

or otherwise associates a product with someone other than the principal producer. The typical co-branding

agreement involves two or more companies acting in cooperation to associate any of various logos, color schemes, or

brand identifiers to a specific product that is contractually designated for this purpose. The object for this is to

combine the strength of two brands.

The marketing of Gillette M3 Power shaving equipment with Duracell batteries both brands owned by P&G

Many online companies think they are pursuing co-branding when in fact they are pursuing strategic partnerships.

Partnerships, which have different goals than co-brands, are a way of leveraging a corporation‟s own strengths and

softening its weaknesses via a joint effort with another firm.

Umbrella Branding

As with all effective brand strategy, umbrella brands require a single message, an expression of a commonsense

benefit grounded in human emotion that opens the way to own the conversation within a business category.

With an umbrella brand, the number of interactions the consumer has with the brand increase significantly, thereby

reinforcing the brand values, and it helps transfer the goodwill to new products and categories. But the umbrella

brand needs to be focused: It must stand for the same values across the category or range of products, and have the

same emotional link.

Generally, consumer durables and services brands have used umbrella branding, while FMCGs have not, but even they

have resorted to brand extensions rather than new launches.

Independent brands only make sense when the product clearly has a different proposition from the company brand;

like Lexus from Toyota and Swatch from Omega.

In the case of Asian Paints, there were so many sub-brands, there was a reduction of media weights for advertising

each entity. Then, the company shifted to a brand-centric portfolio, which involved a change of logo, product names,

packaging and advertising. But the response from the trade and consumers has been positive, overall brand synergy

and shop presence have increased, and the advertising is more effective, he added.

So unless the product is clearly different in the mind of the consumer, umbrella branding is the way to go. NIVEA is a

great international example of an Umbrella Brand.

Push and Pull Marketing

What is pull marketing?

Pull marketing is where you develop advertising and promotional strategies that are meant to entice the prospect to
buy your product or service. Some classic examples are “half off!” or “bring in this coupon to save 25%” or “buy one
get one free”, etc.

With pull marketing, you are trying to create a sense of increased, time limited value so that the customer will come
into your store to buy.

An example of this is a perfume product. Women do not request to smell a fragrance they never smelled before; it is
simply “pushed” at them, through the right advertisement.

 Applied to that portion of the supply chain where demand uncertainty is relatively small

 Production & distribution decisions are based on long term forecasts

 Based on past orders received from retailer‟s warehouse (may lead to Bullwhip effect)

 Inability to meet changing demand patterns

 Large and variable production batches

 Unacceptable service levels

 Excessive inventories due to the need
for large safety stocks

What is push marketing?

Push marketing is where you develop

advertising and promotional strategies geared
toward your marketing and distribution
channels to entice them in promoting your
product. As consumers, you rarely see this
type of marketing when it is directed to the
distributors. It might include wholesale discounts, kickbacks, bonuses, and other types of support. It‟s all designed to
have the retailer promote your product to the end users over a different product.

In recent years, I‟ve seen a nearly exponential increase in the past decade – another type of push marketing is taking
over. It‟s the referral and word of mouth marketing. When companies encourage happy customers to spread the word
to their friends and families, that‟s a type of push marketing. Or, when companies make ads that are controversial,
cheeky, or downright shocking, they create a little buzz – that‟s another type of push marketing.

An example of this is the car manufacturing company Toyota. Toyota only produces cars when they have been
ordered by the customers.

 Applied to that portion of the supply chain where demand uncertainty is high
 Production and distribution are demand driven
 No inventory, response to specific orders
 Point of sale (POS) data comes in handy when shared with supply chain partners
 Decrease in lead time
 Difficult to implement
Above the Line, Below the Line, Through the Line Advertising
Above the Line and Below the Line

These terms may have simple definitions as will be given below, but constantly one tends to misinterpret the different

forms of promotions and advertising as above-the-line or below-the-line.

In an attempt to try and solve the confusion, let us look at a few different angles.

Above the line-advertising

is allocated to television, radio, press, outdoor and cinema advertising

Below the line-advertising

promotions, direct marketing, sponsorship and public relations

Origins of the term refer back to the balance sheet – Above the Line advertising costs are part of „costs of sales‟ and

are deducted before Gross Profit is determined, non-commission baring advertising is part of the operating expenses

and is deducted before Net Profit is determined.

Another way to view it is „concept‟ delivery versus „tactile‟ delivery.

So a concept media is one where you transmit ideas but nothing concrete ever passes to your audience – radio, tv,

billboards and even most newspaper ads.

Tactile delivery is giving the audience something they can actually touch – so coupons, direct mail, product samples.

ATL tends to be visual/auditory where as BTL usually excludes auditory but includes sight, smell, touch, and even

taste.

Through the line (TTL) refers to an advertising strategy involving both above and below the line communications in

which one form of advertising points the target to another form of advertising thereby crossing the „line‟. An example

would be a TV commercial that says „come into the store to sample XYZ product‟. In this example, the TV commercial

is a form of „above the line‟ advertising and once in the store, the target customer is presented with „below the line‟

promotional material such as store banners, competition entry forms etc.