14-1
Integrated Marketing
Communication
14-2 The Marketing Communications
Mix (Elements of IMC)
Advertising
Personal Selling
Any Paid Form of Nonpersonal Presentation by an Identified Sponsor.
Sales Promotion Short-term Incentives to Encourage Sales.
Public Relations Building Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity.
Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response.
Personal Presentations by a Firm’s Sales Force.
14-3
Modes of Marketing Communications
• Advertising
• Sales promotion
• Events and experiences
• Public relations and publicity
• Direct marketing
• Interactive marketing
• Word-of-mouth marketing
• Personal selling
© SHH Kazmi, Satish K Batra 2007
Excel Books Advertising and Sales Promotion, S H H Kazmi, Satish K Batra 5-4
MARKETING COMMUNICATIONS
INTEGRATED
MARKETING
COMMUNICATION
PLAN
Marketing Objectives
Analysis of promotional programme situation
Analysis of communications process
Budget determination
Develop integrated marketing communications programme
Advertising Sales promotion
Direct marketing PR/publicity Personal selling
Advertising
objectives
Message &
strategies
Integration and implementation of communication strategies
Monitoring, evaluation and controlling IMC programme
Direct marketing
objectives
Sales promotion
objectives Personal selling
objectives PR/publicity
objectives
Sales promotion
strategy
Personal selling
strategy PR/Publicity strategy Direct marketing
strategy
© SHH Kazmi, Satish K Batra 2007
Excel Books Advertising and Sales Promotion, S H H Kazmi, Satish K Batra 5-5
MARKETING COMMUNICATIONS
IMC DEFINED
American Association of Advertising Agencies defines Integrated
Marketing Communication as:
“…… a concept of marketing communications planning that recognizes
the added value of a comprehensive plan that evaluates the strategic
roles of a variety of communication disciplines – for example, general
advertising, direct response, sales promotion, and public relations – and
combines these disciplines to provide clarity, consistency, and maximum
communications impact.”
© SHH Kazmi, Satish K Batra 2007
Excel Books Advertising and Sales Promotion, S H H Kazmi, Satish K Batra 5-6
MARKETING COMMUNICATIONS
INTEGRATED MARKETING
COMMUNICATIONS It requires firms to develop a total marketing communications strategy
to communicate with its customers.
It is required to look through the customer’s eyes, whose perceptions
about a brand are not based on advertisements alone but other
elements of promotion as well.
All communications, whether sponsored or not, create an integrated
product in the consumers’ mind.
© SHH Kazmi, Satish K Batra 2007
Excel Books Advertising and Sales Promotion, S H H Kazmi, Satish K Batra 5-7
MARKETING COMMUNICATIONS
ROLE OF IMC Consumers and stakeholders receive four basic company / brand related
messages:
Planned messages
Product messages
Service messages
Unplanned messages
The objectives of integrated marketing communications are to coordinate all
of the company’s marketing and promotional efforts to project and reinforce
a consistent, unified image of the company or its brands to the market-place.
IMC helps companies to develop most suitable and effective methods to
contact customers.
IMC is the easiest way to maximize return on investment in marketing and
promotion.
14-8
Response Hierarchy Models
Communi- cations Model d
Stages
Fig 20.04
AIDA Model a
T90
Innovation- Adoption Model c
Hierarchy-of- Effects Model b
Cognitive stage
Affective stage
Behavior stage
Attention
Interest
Desire
Action
Awareness
Knowlege
Liking
Preference
Conviction
Purchase
Awareness
Interest
Evaluation
Trial
Adoption
Exposure
Reception
Cognitive response
Attitude
Intention
Behavior
14-9
Push Versus Pull Strategy T91
Producer
End users
End users
Interme- diaries
Interme- diaries
Producer
Marketing activities Demand
Demand Demand
Push Strategy
Pull Strategy
Marketing activities
Fig 20.07
Demand
5-10 The Buyer Decision Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior
5-11 The Buyer Decision Process Step 1. Need Recognition
External Stimuli
• TV advertising
• Magazine ad
• Radio slogan
•Stimuli in the
environment
Internal Stimuli • Hunger
• Thirst
• A person’s normal needs
Need Recognition Difference between an actual state and a desired state
5-12 The Buyer Decision Process Step 2. Information Search
•Family, friends, neighbors •Most influential source of information
•Advertising, salespeople •Receives most information
from these sources
•Mass Media •Consumer-rating groups
•Handling the product •Examining the product •Using the product
Personal Sources
Commercial Sources
Public Sources
Experiential Sources
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation
from the United States edition of Marketing Management, 14e. 5-13
Figure 5.5 Successive Sets in
Decision Making
5-14
The Buyer Decision Process Step 3. Evaluation of Alternatives
Product Attributes Evaluation of Quality, Price, & Features
Degree of Importance Which attributes matter most to me?
Brand Beliefs What do I believe about each available brand?
Total Product Satisfaction Based on what I’m looking for, how satisfied
would I be with each product?
Evaluation Procedures Choosing a product (and brand) based on one
or more attributes.
5-15 The Buyer Decision Process Step 4. Purchase Decision
Purchase Intention Desire to buy the most preferred brand
Purchase Decision
Attitudes
of others
Unexpected
situational
factors
5-16 The Buyer Decision Process Step 5. Postpurchase Behavior
Consumer’s Expectations of
Product’s Performance
Dissatisfied
Customer Satisfied
Customer!
Product’s Perceived
Performance
Cognitive Dissonance
5-17 Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
5-18 Adoption of Innovations P
erc
en
tag
e o
f A
do
pte
rs
Time of Adoption
Early Late
Inn
ovato
rs
Early Adopters
Early Majority
2.5%
13.5%
34% 34%
16%
Laggards
Late Majority
Dr. Rosenbloom
Build Products Wants
Create Brand Awareness
Enhance Attributes/Intentions
Facilitate Purchase
Communication Objectives
Dr. Rosenbloom
Build Products Wants
Create Brand Awareness
Enhance Attributes/Intentions
Facilitate Purchase
Communication Objectives
Dr. Rosenbloom
Build Products Wants
Create Brand Awareness
Facilitate Purchase
Communication Objectives
Enhance Attributes/Intentions
Dr. Rosenbloom
Build Products Wants
Create Brand Awareness
Enhance Attributes/Intentions
Facilitate Purchase
Communication Objectives
14-23 Steps in Developing Effective
Communication
Step 1. Identifying the Target Audience
Step 2. Determining the Communication Objectives Buyer Readiness Stages
Purchase
Conviction
Preference
Liking
Knowledge
Awareness
14-24
Step 3. Designing a Message
Steps in Developing Effective
Communication
Attention Interest Desire
Message Content Rational Appeals
Emotional Appeals
Moral Appeals
Message Structure Draw Conclusions
Argument Type
Argument Order
Message Format Headline, Copy, Color,
Words, & Sounds,
Body Language
Action
14-25
Nonpersonal Communication
Channels
Steps in Developing Effective
Communication
Step 4. Choosing Media
Personal Communication
Channels
Step 5. Selecting the Message Source
Step 6. Collecting Feedback
Selecting Advertising Media
Reach
Percentage of people exposed to ad
Frequency
Number of times a person is exposed to ad
Media Impact
The qualitative value of a message exposure through a given medium
© SHH Kazmi, Satish K Batra 2007
Excel Books Advertising and Sales Promotion, S H H Kazmi, Satish K Batra 13-27
ADVERTISING OBJECTIVES AND BUDGET ALLOCATION
COMMUNICATIONS EFFECT
PYRAMID
80% Awareness
60% Knowledge / Comprehension
40% Liking
20% Preference
10% Trial
5%
Repurchase /
Regular use
DAGMAR Approach
Russell H Colley (1961)
Defining Advertising Goals for Measured Advertising
Results (DAGMAR).
Establishes an explicit link between Ad goals and Ad
results.
He proposed that the communication task of the brand
is to gain
a. Awareness
b. Comprehension: Developing an understanding of what
the product is and what it will do for the consumers.
c. Conviction: Developing a mental disposition.
d. Action
Characteristics of Objectives or Goals
Identified around 52 advertising goals that might be
used with respect to a single advertisement; a year’s
campaign for a product or a company’s entire
advertising philosophy.
a. Concrete, measurable tasks
Persuade a prospect to visit a show room and ask for a
demonstration.
Build up the morale of the company’s sales force.
Facilitate sales by correcting false impression,
misinformation etc.
Announce a special reason for ‘buying now’.
Make the brand identity known and easily recognizable.
b. Target Audience
Another important characteristic of a good advertising objective is a well defined target audience.
It may be based on descriptive variables such as geography, demographics, and psychographics as well as on behavioral variables such as usage rate or benefits sought.
c. Specified time period.
Another factor that should be considered while setting advertising objective is specifying the time period in which they must be accomplished.
d. Benchmark measures for Consumers
Determining the target markets present position
regarding the various response stages.
14-32
Percentage- of-Sales Method
Affordable Method
Competitive- Parity
Method
Objective- and-Task Method
Setting the Total Promotion Budget
© SHH Kazmi, Satish K Batra 2007
Excel Books Advertising and Sales Promotion, S H H Kazmi, Satish K Batra 13-33
ADVERTISING OBJECTIVES AND BUDGET ALLOCATION
APPROACHES TO BUDGETING
TOP-DOWN APPROACH BUILD-UP APPROACH
Top management sets
the spending limit
Advertising budget set to
stay within allocated limits
Advertising objectives are set
Activities necessary to achieve
objectives are planned
Costs of different advertising
elements are budgeted
Total advertising budget is
approved by top management