Integrated Marketing Communication: Advertising, Sales Promotion, and Public Relations

Promotion marketing communication

An element of marketing

mix Communication techniques aimed at informing, influencing,reminding and persuading to buy or use a particular product.

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Two types of promotion

Product Promotion
Type of promotion that a business uses to convince potential customers to buy products from them and not their competitors.

Institutional Promotion
Type of promotion that a business uses to create a favorable image for itself.

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Integrated Marketing Communication

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Composition of mix depends upon

Stage in the life cycle: Advertising is very Competitor activities Marketing budget Marketing strategy Target market
important at the time of launch Nature of the product: Complex/Technical

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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
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Communication Platforms
Events/ Experiences Sports Entertainment Festivals Arts Causes Factory tours Company museums Street activities Public Relations Press kits Speeches Seminars Annual reports Charitable donations Publications Community relations Lobbying
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Communication Platforms
Personal Selling Sales presentations Sales meetings Incentive programs Samples Fairs and trade shows Direct Marketing Catalogs Mailings Telemarketing Electronic shopping TV shopping Fax mail E-mail Voice mail
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Elements in the Communications Process

Sender Message Receiver Response Feedback Noise

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Models of the Response Process

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Steps in Developing Effective Communications

Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Manage IMC
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Promotional objectives


To increase sales To attract new customers To retain existing ones To encourage customer loyalty To create awareness Brand awareness To inform To remind To ensure

To modify attitudes To create an image To position a product To improve position in the market To pull the product through channels To push the product through channels

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Push vs. Pull Promotion Strategy

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Designing the Communications

Message strategy (what to say?) Creative strategy (how to say it) Message source (who should say it) Personal communication channels Nonpersonal communication channels Integration

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 CS is the way a marketer translates the message into a

specific communication Informational and transformational appeals

Problem solution ads Product demonstration ads Product comparison ads Endorsements

Creative Strategy

Informational appeals-related to product /service attributes,benefits

Transformational appeals-relates to non product related benefit/image

Positive and negative appeals

Fear Guilt Shame Humor Love Pride Joy

Kind of people who use the brand Kind of experience that results from using the brand

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Message Source
Source can be the company itself or
known/unknown people Celebrity Characteristics
Expertise Trustworthiness Likeability

State of congruence between attitude

towards source & message

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Personal Communications Channels

These let two persons communicate face to face,person to audience, overphone thru e-mail Expert Channels Social Channels

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Nonpersonal Communication Channels

Media Sales Promotion Events and Experiences Public Relations

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Establish the Budget

Affordable Percentage-of-Sales Competitive Parity Objective-and-Task

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Objective and Task Method

Establish Objectives (create awareness of new product among 20 percent of target market) Determine Specific Tasks (advertise on market area television and radio and local newspapers) Estimate Costs Associated with Tasks (determine costs of advertising, promotions, etc.)

Monitor and Adjust (monitor performance and adjust)

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Advertising.
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

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Promotional mix - advertising

Product advertising
Sells a particular good or service Initiated by retailers and directed at consumers via papers, television Intended to promote a firms image rather than sell product Initiated by manufacturers and directed to retailers and wholesalers Initiated by manufacturers and directed to other manufacturers Promote view to influence public opinion or legislation
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Retail advertising

Institutional advertising

Trade advertising

Industrial advertising

Advocacy advertising

Major Decisions in Advertising

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The Five Ms of Advertising

Mission Money Message Media Measurement

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Advertising Objectives
Informative advertising Persuasive advertising Reminder advertising Reinforcement advertising

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Factors to Consider in Setting an Advertising Budget

Stage in the product life cycle Market share and consumer base Competition and clutter Advertising frequency Product substitutability

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Creative Brief

Positioning statement Key message Target market Objectives Key brand benefits

Brand promise Evidence of promise Media Background Creative considerations

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Advertising media
Media Newspaper Television Radio Magazines Outdoor Direct mail Yellow pages Internet Strengths
Good local coverage, broad acceptance, believable

Weaknesses
Competition from other features, limited selectivity

Mass coverage, high attention with High cost, fleeting exposure, sight, sound,& motion limited audience selectivity
Low cost, high geographic & demographic selectivity Long life, quality reproduction, high demographic selectivity High repeat exposure, low cost, local market focus Very flexible, targets specific audience, complete information Fleeting exposure, audio presentation only Long ad-purchase lead time, lack of flexibility Brief exposure, limited audience selectivity High cost, junk mail image, need accurate mailing list

Low cost, excellent local coverage, Long ad-purchase lead time, wide consumer use high other-ad competition Low cost, interactive, 24-hour Easily ignored, low readership

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Media Selection
Reach Frequency Impact Exposure- reach X frequency

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Choosing Media Type

Factors to consider:
Media habits of target consumers Nature of the product Type of message Cost Media vehicles Specific media within each general media type

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Humor in Advertising

These days, it seems as though almost every company is using humor in its advertising, even the scholarly American Heritage Dictionary.
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Deciding on Media Timing

Must decide how to schedule the
Follow seasonal pattern Oppose seasonal pattern Same coverage all year

advertising over the course of a year

Choose the pattern of the ads

Continuity Concentration Flighting Pulsing
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Evaluating Advertising
Measure the communication effects of an ad. Copy Testing

Measure the sales effects of an ad. Is the ad increasing sales?

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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.

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 Tactical point of sale material

Sales promotion

or inducements designed to stimulate purchases Short term incentives to increase sales Some promotions are aimed at consumers, some at intermediaries and others at the salesforce E.g.: coupons, leaflets, demonstrations, samples, free gifts, point of sale (POS) displays etc.
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Sales promotion

Incentives provide a quick boost to sales Effects maybe short term only Excess use of some incentives may
adversely effect brand image

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Promotional mix sales promotion

Coupons Samples Rebates Premiums Trade shows conventions Sales contests Allowances Prizes Point-ofpurchase

Price-off discount

Consumer-oriented

Trade-oriented
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Consumer Sales Promotion Tools

Sample Coupons Offers a trial amount of a product Savings when purchasing specified products

Cash Refunds Rebates

Price Packs Cents-Off Deals Premiums Advertising Specialties

Refund of part of the purchase price by mail

Reduced prices marked on the label or package by producer Goods offered free or low cost as an incentive to buy a product Articles imprinted with an advertisers name given as gifts
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Consumer Sales Promotion Tools

Patronage Rewards
Point-of-Purchase Promotions Contest Sweepstakes Cash or other award offered for regular use of a product or service Displays or demonstrations at the point of purchase or sale Consumers submit an entry to be judged by a panel Consumers submit their names for a drawing Consumers receive something each time they buy which may help them win a prize
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Games

Trade Promotion
Objectives
Persuade resellers to carry a brand
Give a brand shelf space Promote brand in advertising Push brand to customers

Tools
Discounts
Allowances

Free Goods
Push Money

Specialty Advertising Items

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Sales force promotions

Promotions aimed at
the sales force Designed to motivate the sales force. E.g. - Bonus - Commission - Coupon
Vouchers Free Services Free gifts Competition

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Using Sales Promotions

Establish objectives Select tools Develop program Pretest

Implement and control

Evaluate results
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Public Relations
Any activity designed
to create a favorable image toward a business, its products or its policies.

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Public relations

Managing relations with an organizations

various stakeholders The planned and sustained effort to establish and maintain goodwill & mutual understanding between an organizations various stakeholders

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Scope of PR Promotion through media publicity Enhances public awareness of the

company Projects companys mission & philosophy Projection of the organization as a source of opportunities Obtaining favorable comments on the media
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Publicity
A specific kind of public
relations that involves placing positive and newsworthy information about a business, its products, or its policies in the media is called..

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 Release of a commercially

Publicity

significant news about a particular product or service Purpose is to obtain a favorable presentation of such news via a medium not paid for by a sponsor Involves getting media coverage of an event or product launch / articles in newspapers
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Sponsorship
Payment for an event/person/organization
is given in return of some benefit A specialized form of advertising that can create significant exposure for companies Common in the world of art and sports

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Ideal Events
Audience closely matches target market Event generates media attention Event is unique with few sponsors

Event enhances brand image of sponsor

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Merchandising
Attempts to influence customers at the
point of sale
Display pop-up stands wobblers, danglers etc. Store layout Storage space Ambience

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Packaging
The outer wrapper or the
container is often an indicator of the quality of the product itself Packaging serves the following purposes:
Protection of the product Preservation of the product Provides information Promotes the product Convenience
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Direct Marketing
Use of consumer-direct channels to reach and deliver goods and services to customers without using market middlemen.

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Direct Marketing Channels

Catalogs Direct mail Telemarketing Web sites Email marketing Mobile devices

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RFM Formula for Selecting Prospects

Recency Frequency Monetary value

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Components of the Mailing

Outside envelope Sales letter Circular Reply form Reply envelope

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Personal Selling
This type of promotion requires contact with potential buyers

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Personal Selling Personal selling is a paid, personal form of

promotion. Involves two-way personal communication between salespeople and individual customers. Carried out through telephone, at meetings, at retail outlets & door to door selling High priced, low volume and highly technical products rely heavily on personal selling 12-57

The Nature of Personal Selling

Most salespeople are well-educated, welltrained professionals who work to build and maintain long-term customer relationships. The term salesperson covers a wide range of positions:
Order taker: Department store clerk Order getter: Creative selling in different environments
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The Role of the Sales Force

Salespeople:
Probe customers to learn about problems Adjust marketing offers to fit special needs Negotiate terms of sales Build long-term personal relationships

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The Role of the Sales Force

Sales Force serves as critical link between company and its customers
They represent the company to the customers

They represent the customers to the company

Goal = Customer Satisfaction and Company Profit

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Major types of sales jobs

Creative selling Order taking Technical specialists

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Major Steps in Sales Force Management

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Sales Force Structure

Territorial: Salesperson assigned to exclusive area and sells full line of products Product: Sales force sells only certain product lines Customer: Sales force organizes along customer or industry lines Complex: Combination of several types of structures
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Compensating Salespeople
Fixed amount:
Variable amount: Expenses:
Commissions or bonuses
Repays for job-related expenditures Vacations, sick leave, pension, etc.
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Salary

Fringe benefits:

Supervising Salespeople
Motivating Salespeople
Organizational climate Sales quotas Positive incentives: Sales meetings Sales contests Recognition and honors Cash awards, trips, profit sharing

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Major Steps in Effective Selling

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Personal Selling

STRENGTHS Great attention Msg is customized Persuasive impact Potential for development of relationship Adaptable Opportunity to close sale call

WEAKNESSES High cost Labor intensive Expensive Can only reach a limited no. of customers

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Promotional mix comparison

Tool Strengths Large audience, low cost per contact, can modify message Effective when using targeted and current mailing list Tailored to each buyer, immediate buyer response Immediate feedback and immediate buyer response Inexpensive, has high credibility Weaknesses Overall expensive, difficult to measure effectiveness Reaches disinterested parties and considered junk Expensive Advertising

Direct mail

Personal selling

Telemarketing

Often seen as intrusive

Word of mouth

Difficult to manage

Sales promotion

Inexpensive, short-term sales increases Creates positive attitude about product/firm

Non-personal appeal

Public relations

Non-personal appeal, hard ot measure effectiveness

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What do they do?

Advertising
Creates awareness of a businesss product

Public Relations
Creates a favorable image for the business itself

Sales Promotion
Efforts stimulate sales

Personal Selling
Builds on all of the other efforts by helping customers complete the sale
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 A company wishes to launch a new

toothpaste which can effectively prevent cavities and tooth decay. But the toothpaste market is highly crowded with multiple brands. If you were to evolve a marketing communication strategy ,how will you proceed? Which appeal will you use and why??
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 A leading European

departmental store is all set to enter the Indian market. Evolve an advertising strategy for the store. Mention the objectives, creative strategy and media choices.
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Placing ads and promotion online

Web sites must express the firms purpose, history, products & vision
Context-Layout & design Content- text, pictures ,sounds, videos Community- how the site enables user to user
communication

Customization Communication-interactivity Connection- linkage to other sites Commerce- capabilities for commercial transactions
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Ease of Use and Attractiveness

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

Increasing Visits and Site Stickiness

Deep information with links Changing news of interest Changing offers Contests and sweepstakes Humor and jokes Games

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Online Ads
Banner ads Microsites- a limited area on the web managed and
paid for by an external advertiser/company

Sponsorships- e.g podcasts Interstitials Search-related ads & display ads Alliances Communities WOM thru-Social networking sitesmyspace ,facebook Buzz & viral Marketing
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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

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Relationship marketing
Relationship Marketing -The process of
creating , maintaining and enhancing strong ,value-laden relationships with Customers and other stakeholders. Relationship marketing is based on the premise that important accounts need focused and continuous attention.

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ICICI Bank
The ad opens on Shah Rukh Khan speaking about

relationships in life. He says all relationships are based upon trust, same as his with ICICI. He says how 2.5 crore Indians have entrusted this bank, making it India's second largest bank. He goes on to say that the bank is solid, responsible and trustworthy, just like every relationship The ad ends as he says he trusts ICICI bank with his money and will always continue to do so.
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