I t t d M k ti I t t d M k ti Integrated Marketing Integrated Marketing CommunicationCommunicationCommunicationCommunication

S. SureshS. Suresh

M k ti C i ti MiMarketing Communications Mix

•• AdvertisingAdvertising–– Any paid form of nonpersonal presentation Any paid form of nonpersonal presentation

and promotion of ideas, goods, or services by and promotion of ideas, goods, or services by an identified sponsor.an identified sponsor.

•• Sales PromotionSales PromotionSales PromotionSales Promotion–– ShortShort--term incentives to encourage the term incentives to encourage the

purchase or sale of a product or servicepurchase or sale of a product or servicepurchase or sale of a product or service.purchase or sale of a product or service.

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M k ti C i ti MiMarketing Communications Mix

•• Public RelationsPublic RelationsB ildi d l ti ith th ’B ildi d l ti ith th ’–– Building good relations with the company’s Building good relations with the company’s various publics by obtaining favorable various publics by obtaining favorable publicity building up a good corporate imagepublicity building up a good corporate imagepublicity, building up a good corporate image, publicity, building up a good corporate image, and handling or heading off unfavorable and handling or heading off unfavorable rumors, stories, and events.rumors, stories, and events.rumors, stories, and events.rumors, stories, and events.

•• Personal SellingPersonal SellingPersonal presentation by the firm’s sales forcePersonal presentation by the firm’s sales force–– Personal presentation by the firm’s sales force Personal presentation by the firm’s sales force for the purpose of making sales and building for the purpose of making sales and building customer relationshipscustomer relationships

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customer relationships.customer relationships.

M k ti C i ti MiMarketing Communication Mix

•• Direct MarketingDirect Marketing–– Direct connections with carefully targeted Direct connections with carefully targeted

individual consumers to both obtain an individual consumers to both obtain an immediate response and cultivate lasting immediate response and cultivate lasting customer relationshipscustomer relationships——the use of telephone, the use of telephone, mail, fax, email, fax, e--mail, the Internet, and other tools mail, the Internet, and other tools to communicate directly with specific to communicate directly with specific consumers.consumers.

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The Changing Communications Environment

Two factors are changing the face of today’s marketing communications:g

A k t h f t d k tAs mass markets have fragmented, marketersare shifting away from mass marketing

Vast improvements in information technologyare speeding the movement toward segmented

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marketing

Th N d f IMCThe Need for IMC

Using IMC, the company carefullyintegrates and coordinates its manycommunication channels to delivercommunication channels to delivera clear, consistent, and compelling , , p g

message about the organizationd it b dand its brands.

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CIntegrated Marketing Communication

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IMC in Action: Mall of America

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IMC In Action: Mall of America

Promote Mall of America’s 10thPromote Mall of America’s 10thChallenge:Challenge:anniversaryanniversary

Challenge:Challenge:

An IMC campaign featuring:• The theme: “Celebrating a decade of

fun”

An IMC campaign featuring:• The theme: “Celebrating a decade of

fun”Answer:Answer: fun”• Effort to involve as many media partners

as possible

fun”• Effort to involve as many media partners

as possible

Answer:Answer:

as possibleas possible

• USA Today front page story• CBS Sunday Morning pieceResults:Results:

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• AP story carried by 30 newspapers

Ad ti iAdvertising

•• Can reach masses of geographically Can reach masses of geographically di d bdi d bdispersed buyers.dispersed buyers.

•• Can repeat a message many times.Can repeat a message many times.Ca epeat a essage a y t esCa epeat a essage a y t es•• Is impersonal, oneIs impersonal, one--way communication.way communication.•• Can be very costly for some media types.Can be very costly for some media types.

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P l S lliPersonal Selling

•• Involves personal interaction between two Involves personal interaction between two llor more people.or more people.

•• Allows relationship building.Allows relationship building.o s e at o s p bu d go s e at o s p bu d g•• Most expensive promotion tool.Most expensive promotion tool.

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S l P tiSales Promotion

•• Wide assortment of tools.Wide assortment of tools.•• Attracts consumer attention.Attracts consumer attention.•• Offers strong incentives to buyOffers strong incentives to buy•• Offers strong incentives to buy.Offers strong incentives to buy.•• Invites and rewards quick consumer Invites and rewards quick consumer

response.response.•• Effects are shortEffects are short--lived.lived.Effects are shortEffects are short lived.lived.

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P bli R l tiPublic Relations

•• Very believable.Very believable.•• Reaches people who avoid salespeople Reaches people who avoid salespeople

and ads.and ads.a d adsa d ads•• Can dramatize a company or product.Can dramatize a company or product.•• Tends to be used as an afterthought.Tends to be used as an afterthought.•• Planned use can be effective andPlanned use can be effective andPlanned use can be effective and Planned use can be effective and

economical.economical.

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Di t M k tiDirect Marketing

•• Many forms that share four characteristics:Many forms that share four characteristics:–– NonpublicNonpublic–– ImmediateImmediate–– CustomizedCustomized

InteractiveInteractive–– InteractiveInteractive

•• Well suited to highly targeted marketing.Well suited to highly targeted marketing.

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P h P ll P ti St tPush vs. Pull Promotion Strategy

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M j D i i i Ad ti iMajor Decisions in Advertising

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Setting Advertising ObjectivesSetting Advertising Objectives•• An advertising objective is a specificAn advertising objective is a specific•• An advertising objective is a specific An advertising objective is a specific

communication task to be accomplished communication task to be accomplished with a specific target audience during awith a specific target audience during awith a specific target audience during a with a specific target audience during a specific period of time.specific period of time.

•• Classified by purpose:Classified by purpose:–– InformInformInformInform–– PersuadePersuade

CC–– CompareCompare–– Remind Remind

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Comparative AdvertisingComparative Advertising

Progresso makes side-by-side ycomparisons of its soup versus pCampbell’s, inviting consumers to “Enjoy a better soup…with a more padult taste.”

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Setting the Advertising Budgetg g gAffordable

B d Wh t th C Thi k it C Aff dBased on What the Company Thinks it Can Afford

Percentage-of-SalesBased on a Percentage of Current or Forecasted Sales

Competitive-ParityCompetitive ParitySet Budget to Match Competitors

Objective-and-Task Set Objectives, Determine Tasks to Achieve Objectives,

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Sum of Task Costs Equals Budget

D l i Ad ti i St tDeveloping Advertising Strategy

•• Consists of two major elements:Consists of two major elements:

–– Creating advertising Creating advertising messagesmessagesg gg g gg

Selecting advertisingSelecting advertising mediamedia–– Selecting advertising Selecting advertising mediamedia

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Th M St tThe Message Strategy

Identify Customer Benefits

Develop Compelling Creative ConceptThe “Big Idea”The Big Idea

Advertising Appeals Should BeMeaningful Believable & Distinctive

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Meaningful, Believable, & Distinctive

Message Execution - TypicalMessage Execution TypicalApproaches

• Testimonial Evidence or Endorsement• Scientific Evidence• Scientific Evidence• Technical Expertise• Personality Symbol• Personality Symbol• Slice of Life• Lifestyle• Lifestyle• Fantasy• Mood or ImageMood or Image• Musical

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M E tiMessage Execution

•• Choose a toneChoose a tone•• Use memorable, attentionUse memorable, attention--getting wordsgetting words•• Choose correct format elementsChoose correct format elements•• Choose correct format elementsChoose correct format elements

–– IllustrationIllustration–– HeadlineHeadline–– CopyCopy

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S l ti Ad ti i M diSelecting Advertising Media

•• ReachReach–– Percentage of people exposed to adPercentage of people exposed to ad

•• FrequencyFrequencyFrequencyFrequency–– Number of times a person is exposed to adNumber of times a person is exposed to ad

M di I tM di I t•• Media ImpactMedia Impact–– The qualitative value of a message exposure The qualitative value of a message exposure gg

through a given mediumthrough a given medium

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Ch i M di TChoosing Media Type

•• Factors to consider:Factors to consider:–– Media habits of target consumersMedia habits of target consumers–– Nature of the productNature of the productpp–– Type of messageType of message

CostCost–– CostCost–– Media vehiclesMedia vehicles

ff•• Specific media within each general media typeSpecific media within each general media type

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D idi M di Ti iDeciding on Media Timing

•• Must decide how to schedule the Must decide how to schedule the d ti i th fd ti i th fadvertising over the course of a yearadvertising over the course of a year–– Follow seasonal patternFollow seasonal patternpp–– Oppose seasonal patternOppose seasonal pattern–– Same coverage all yearSame coverage all year–– Same coverage all yearSame coverage all year

•• Choose the pattern of the adsChoose the pattern of the ads–– ContinuityContinuity–– PulsingPulsing

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u s gu s g

E l ti Ad ti iEvaluating Advertising

Measure the communication effects of an ad.“Copy Testing”Copy Testing

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

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g

Oth Ad ti i C id tiOther Advertising Considerations

Small Companies:S l D t t

Large Companies:AdvertisingSales Departments Advertising

Departments

Advertising Agency:A marketing services firm that assists companies in

l i i i l i d l i llplanning, preparing, implementing, and evaluating all or portions of their advertising programs.

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S l P tiSales Promotion

•• Sales promotion consists of shortSales promotion consists of short--term term i ti t th hi ti t th hincentives to encourage the purchase or incentives to encourage the purchase or sales of a product or service.sales of a product or service.

•• The idea behind sales promotion is toThe idea behind sales promotion is to•• The idea behind sales promotion is to The idea behind sales promotion is to generate immediate sales.generate immediate sales.

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S l P tiSales Promotion

Today’s foodToday s food marketers are using more andusing more and more push promotions,promotions, including consumer priceconsumer price promotions.

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Rapid Growth of Sales Promotion

•• Sales promotion can take the form ofSales promotion can take the form ofSales promotion can take the form of Sales promotion can take the form of consumer, trade, or sales force consumer, trade, or sales force promotionspromotionspromotions.promotions.

•• Rapid growth in the industry has been Rapid growth in the industry has been achieved because:achieved because:–– Product managers are facing more pressureProduct managers are facing more pressureProduct managers are facing more pressure Product managers are facing more pressure

to increase their current salesto increase their current sales–– Companies face more competitionCompanies face more competition–– Companies face more competitionCompanies face more competition–– Advertising efficiency has declinedAdvertising efficiency has declined

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–– Consumers have become more deal orientedConsumers have become more deal oriented

Sales Promotion Objectivesj•• Consumer Promotions:Consumer Promotions: increase shortincrease short--

term sales or help build longterm sales or help build long--term market term market share.share.

•• Trade PromotionsTrade Promotions: get retailers to:: get retailers to:–– carry new items and more inventorycarry new items and more inventorycarry new items and more inventorycarry new items and more inventory–– advertise productsadvertise products

give products more shelf spacegive products more shelf space–– give products more shelf spacegive products more shelf space–– buy aheadbuy ahead

ll ll•• Sales Force:Sales Force: getting more sales support.getting more sales support.•• In general, sales promotion should build In general, sales promotion should build

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g , pg , plonglong--term customer relationships.term customer relationships.

Consumer Sales Promotion Tools

SampleSample Offers a trial amount of a productOffers a trial amount of a productSampleSample

CouponsCoupons

Offers a trial amount of a productOffers a trial amount of a product

Savings when purchasing specified d t

Savings when purchasing specified d tCouponsCoupons

Cash Refunds“R b t ”

Cash Refunds“R b t ”

productsproducts

Refund of part of the purchase price by il

Refund of part of the purchase price by il“Rebates”“Rebates”

Price Packs“C t Off D l ”

Price Packs“C t Off D l ”

mailmail

Reduced prices marked on the label or k b d

Reduced prices marked on the label or k b d“Cents-Off Deals”“Cents-Off Deals”

PremiumsPremiums

package by producerpackage by producer

Goods offered free or low cost as an incenti e to b a p od ct

Goods offered free or low cost as an incenti e to b a p od ctPremiumsPremiums

Advertising SpecialtiesAdvertising Specialties

incentive to buy a productincentive to buy a product

Articles imprinted with an advertiser’s name given as gifts

Articles imprinted with an advertiser’s name given as gifts

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SpecialtiesSpecialties name given as giftsname given as gifts

Consumer Sales Promotion Tools

Patronage RewardsPatronage Rewards Cash or other award offered for regular f d t i

Cash or other award offered for regular f d t iPatronage RewardsPatronage Rewards

Point-of-PurchasePoint-of-Purchase

use of a product or serviceuse of a product or service

Displays or demonstrations at the pointDisplays or demonstrations at the pointPoint of PurchasePromotions

Point of PurchasePromotions

Displays or demonstrations at the point of purchase or sale

Displays or demonstrations at the point of purchase or sale

Consumers submit an entry to beConsumers submit an entry to beContestContest Consumers submit an entry to be judged by a panel

Consumers submit an entry to be judged by a panel

SweepstakesSweepstakes Consumers submit their names for a drawing

Consumers submit their names for a drawing

GamesGamesConsumers receive something each time they buy which may help them

i i

Consumers receive something each time they buy which may help them

i i

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win a prizewin a prize

Trade ShowTrade Show

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More than 4,300 trade shows take place every year, drawing as many as 85 million people.

Developing the Sales Promotion Program

Decide on the Size of the IncentiveDecide on the Size of the Incentive

S t C diti f P ti i tiS t C diti f P ti i tiSet Conditions for ParticipationSet Conditions for Participation

Decide How to Promote andDistribute the Promotion Program

Decide How to Promote andDistribute the Promotion Program

Decide on the Length of the ProgramDecide on the Length of the Program

Evaluate the ProgramEvaluate the Program

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Evaluate the ProgramEvaluate the Program

P bli R l tiPublic Relations

•• Public relations involves building good Public relations involves building good l ti ith th ’ il ti ith th ’ irelations with the company’s various relations with the company’s various

publics by obtaining favorable publicity, publics by obtaining favorable publicity, building up a good corporate image, and building up a good corporate image, and handling or heading off unfavorablehandling or heading off unfavorablehandling or heading off unfavorable handling or heading off unfavorable rumors, stories, and events.rumors, stories, and events.

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P bli R l ti F tiPublic Relations Functions

•• Press relations or Press relations or •• LobbyingLobbyingpress agencypress agency

•• Product publicityProduct publicity•• Investor relationsInvestor relations

oduct pub c tyoduct pub c ty•• Public affairsPublic affairs

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P bli R l ti T lPublic Relations Tools

•• NewsNews •• Audiovisual Audiovisual ll•• SpeechesSpeeches

•• Special eventsSpecial events

materialsmaterials•• Corporate identityCorporate identity•• Special eventsSpecial events

•• Buzz marketingBuzz marketing

Corporate identity Corporate identity materialsmaterialsP bli iP bli i•• Mobile marketing Mobile marketing

•• Written materialsWritten materials

•• Public service Public service activitiesactivities•• Written materialsWritten materials

•• Company Web siteCompany Web site

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Th k YThank You