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American Marketing Association (AMA) definesMarketing :
The process of planning and executing theconception, pricing, promotion, and distribution ofideas, goods, and services to create exchanges thatsatisfy individual and organizational objectives.
Marketing Communication plays an important rolein this exchange to happen.
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Basic task of marketing is to combine the 4 Ps into amarketing program to facilitate the potential forexchange with consumers in the market place.
Marketing-mix
Product
Price
Promotion
Place
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Marketing Communication
The means by which firms attempt to inform,persuade, and remind consumers directly orindirectly about the products and brands that they
sell.
Marketing Communication is a collective term for allthe various types of planned messages used to build
a brand.
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Functions of Marketing Communications
Provide information. Stimulate demand Differentiate the product Highlight the utility of the product Counter competition and stabilize sales
Build image Provide brand reminders Reinforces past purchases and brand experiences
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Explicit Role Guide to prospectivebuyers
Primary and selectivedemand Product differentiation Encouraging innovation
tendency to consume Financial support to
media
Implicit Role Lowering of prices Advertising and
Competition Improves product quality Increase in economic
activity and employment Effect on Business
Cycles
Role of Marketing Communication
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History of Marketing Communications
Started ever since the time of Barter System Pre-printing era(1438):
Trademarks (Brands)
Signs (Ancient outdoor advertising)Town Criers
First known printed advertisement in 1500s
(William Caxton of London- handbill of rules for the guidance of clergy atEaster was put on the church doors)
First ad on circulated sheet appeared in German newspamphlets (1525)-Hand cards.( This praised the virtues of a mysterious drug)
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The first printed newspaper in English- 1622
(Weekly News of London)
First ad in newspaper -1625
The first ad in America appeared in 1704(Ad offered a reward for the capture of a thief)
In the 17th century ads in the form ofannouncements. ( Importers of Coffee,Tea,Chocolate etc.)
Pre industrialization Era (Till 1800)
The Era of Industrialization (1800-1875)
(Advertising became widespread, Dailies became popular-1850)
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Consumer culture dawns (1875-1918)
Advertising became a full-fledged industryThe 1920s (1918-1929)
Advertising finds fameand glamour as it was
the most modern of allprofessions.
Ads play on socialanxieties
Segmentation begins
by social class
Lux fabric wash ad-1927
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The Depression Era (1929-1941)
Radio emerges as a new mediumThe theme in the ad traded on the anxieties ofthe day
WWII and theFifties (1941-1960)
Products linkedwith patriotism
Fascination withscienceSubliminaladvertising scarehits
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Peace, Love and Creative Revolution-(1960-1972)
Cultural revolution and Creative revolution Shift to Sales promotion activities to meet sales. Regulation and oversight took hold (1973-1980) ACT, FTC and NARB become active Present day advertising-technology driven and
customer oriented.
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Indian Marketing Communication History
The personal selling era (Barter era) The product era (manufacture products that attracted consumers) The sales era (Transition from information to persuasion) The consumer era ( Emergence of the study of consumer
psychology, lifestyle advertising, in-depth research, subliminaladvertising, concept of USP etc.)
The positioning era (Importance on, appeals based on theperceived value of the product, emotions like love and envy, socialacceptance)
Value marketing era( current age- integrated marketingcommunication used)
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Personal Selling
Advertising Sales Promotion Interactive /Internet Marketing
Publicity
Promotion Mix
Promotion : All the personal and impersonal efforts bya seller or sellers representative to inform, persuade orremind a target audience of their products.Promotion mix is the combination of different kindsof promotional tools used by a firm to advertise and sell
its products.
Direct
Marketing
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Factors affecting the Promotion Mix
Product ConsiderationsNature of the productProduct ImageStage of Products Life Cycle
PackagingDegree of Customization
Pricing Policy
Distribution Target Market Characteristics
Level of CompetitionGeographic Coverage
Buyer Readiness Stage
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IMCIntegrated Marketing Communication involves
coordinating the various promotional elementsand other marketing activities that communicate
with a firms customers. The process of using all forms of promotion toachieve maximum communication impact.
The evolution of IMC(need for coordination, need for one stopshopping, understanding that customer perceptionof brands/co. is a synthesis of the bundle of
message exposed to, more effective method ofbuildin relationshi with stakeholders with the
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Reasons For Growing Importance of IMC
Shift from media advertising to other forms ofmarketing communication
Movement away from advertising-focusedapproaches that emphasize mass media.
Shift in power from manufacturers to retailers Rapid growth of database marketing
Changes in agency compensation (Objectivemeasures-sales, market share, profitability.Demands for accountability)
Rapid growth of the Internet
Increasing importance of branding
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Promotion Tools
1.Sales PromotionShort-term incentives to encourage the purchase or saleof a product or service.
Advantages Can stimulate quick increases in sales by targeting
promotional incentives on particular products. Good short term tactical tool.
Disadvantages If used over the long-term, customers may get used to
the effect. May damage the brand image.
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2.Public Relations/ Publicity
Building good relations with the companys various
publics by obtaining favorable publicity, building up agood corporate image, and handling or heading offunfavorable rumors, stories, and events
Advantages Credibility Low cost (although not totally free) Often results in word-of-mouth. Image building.
Disadvantages Not always under control of organization Can be negative
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3.Personal Selling
Oral presentation in a conversation with one or moreprospective purchasers for the purpose of makingsales.
Advantages Direct contact between buyer and seller allows formore flexibility.
Can tailor sales message to specific needs ofcustomers.
Allows for more direct and immediate feedback. Sales efforts can be targeted to specific markets and
customers who are best prospects.
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Disadvantages
High costs per contact Expensive way to reach large audiences Difficult to have consistent and uniform message
delivered to all customers
Importance of Personal Selling
When the product is of high value. Highly complicated and technical products. Newly launched product. Which requires demonstration and after sales services. In the case of products which dont fall in the impulse
category.
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Advantages
More receptive to direct-marketingAllows marketers to be very selective and target,
specific segments of customers. Messages can be customized for specific customers. Effectiveness easier to measure.
4.Direct Marketing
Is a system of marketing by which organizationscommunicate directly with target customers togenerate a response or transaction.
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Disadvantages Lack of customer receptivity and very low response
rates. Clutter. (too many messages) Image problems particularly with telemarketing.
5. Advertising
Any paid form of non-personal presentation andpromotion of ideas, goods, or services by an
identified sponsor.
AdvantagesAdvertiser controls the message Cost effective way to communicate with large
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Effective way to create brand images and symbolic
appeals Often can be effective way to strike responsive chord
with consumer Often can be effective way to strike responsive chord
with consumerDisadvantages
High costs of producing and running ads Credibility problems and consumer skepticism Clutter Difficulty in determining effectiveness
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6. Interactive / Internet Marketing
Allows for a back and forth flow of information,whereby users can participate in and modify theform and content of the information they receive inreal time.
Advantages Can be used for a variety of IMC functions Messages can be tailored to specific interests and
needs of customers Interactive nature of the Internet leads to higher
level of involvement Can provide large amounts of information to
customers.
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Disadvantages
Internet is not yet a mass medium as manyconsumers lack access.Attention to Internet ads is very low. Great deal of clutter on the Internet.
Audience measurement is a problem on theInternet.
Use of the Internet as an IMC Tool
-As an advertising medium to inform, educate andpersuade customers
-As a direct sales tool
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Direct marketing methods
Direct mailCatalogsTelemarketing
Direct response adsDirect sellingInternet
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Consumer-oriented
Targeted to the ultimateusers of a product orservice
Coupons Sampling Premiums Rebates Contests Sweepstakes
Trade-oriented
Targeted towardsmarketing intermediariessuch as retailers,wholesalers, or
distributors
Promotion allowances Merchandise allowances Price deals Sales contests Trade shows
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Sales Promotion Uses
Introduce new products.Get existing customers to buy more.Attract new customers.
Combat competition.Maintain sales in off season.Increase retail inventories.Enhance personal selling efforts.
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To obtain customer database information.
To communicate and interact with buyers. To provide customer service and support.
To build and maintain customer relationships.
As a tool for implementing sales promotion. As a tool for implementing publicity/public
relations programs.