Promotion- INTRODUCTON 1

Integrated Marketing Communication : 

Integrated Marketing Communication KNVIBM 1

Slide 2: 

Marketing – Its an art of selling product or services Identify needs & Wants of consumer & to fit our product according to that… 2

Slide 3: 

Marketing includes all those activities done for the consumer. Marketing starts and ends with customers. Marketing is where customer is the uncrowned king or queen. Customer is the center around which all marketing activities revolve. All employees and all departments are responsible for satisfying customers. Marketing is something that can build or break an organization. Marketing is essentially needed for the survival, stability and growth of the organization. Nature Of Marketing 3

Marketing : 

Marketing Definition as per Philip Kotler: Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. 4

Slide 5: 

According to Peter Drucker, “The aim of marketing is to know and understand the consumer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available.” Marketing 5

Marketing : 

Marketing Definition as per The American Marketing Association (AMA), which represents marketing professionals in US & Canada, defines marketing as, “ The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.” 6

Scope of Offer : 

Scope of Offer Product Place Property Person Organization Service Experience Event Idea Information 7

Slide 8: 

Product is a bundle of utility that can be offered to market for need satisfaction. Services are offering intangible in nature. Experiences are created, staged and marketed by orchestrating several goods and services. Events: Marketers promote time-based events – recurring / non-recurring by nature Persons: Also known as Celebrity marketing and Person as a Brand 8

Slide 9: 

Places: Places compete actively to attract tourists, factories, businesspersons, etc. Properties: Real or financial property bought and sold. Organizations: market themselves to create positive corporate image among public. Information: Books, reports, encyclopedia, magazines, etc. need to be marketed. Ideas: Every marketing offering includes a basic idea. 9

Fundamental of advertising : 

Fundamental of advertising Product Place Price Promotion People Product life cycle Changing market New product Packaging 10

Integrated Marketing Communications : 

Integrated Marketing Communications One of the first definitions of IMC was developed by American Association of Advertising Agencies: 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. 11

Slide 12: 

IMC is the coordination and integration of all marketing communication tools, avenues and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost. 12

Promotion & Its Management : 

Promotion & Its Management Promotion – The coordination of all seller initiated efforts to set up channels of information & Persuasion to sell goods & services or to promote an idea. Promotion Management – The process of coordinating the promotional mix elements 13

Promotion : 

Promotion Promotion is the process of marketing communication to inform, persuade, remind and influence consumers or users in favour of your product or service. 14

Elements of the Promotion Mix : 

Elements of the Promotion Mix Advertising Personal selling Public relations/Publicity Direct marketing Event marketing 6. Packaging 7. Sales Promotion Sales Coupons Rebates 15

Communication Platforms : 

17-16 Communication Platforms Advertising Print and broadcast ads Packaging inserts Motion pictures Brochures and booklets Posters POP displays Logos Videotapes Sales Promotion Contests, games, sweepstakes Sampling Trade shows, exhibits Coupons Rebates Entertainment Continuity programs

Communication Platforms : 

17-17 Communication Platforms Events 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

Communication Platforms : 

17-18 Communication Platforms Personal Selling Sales presentations Sales meetings Incentive programs Samples Fairs and trade shows Direct Marketing Catalogs Mailings Telemarketing TV shopping Fax mail E-mail Voice mail

Japanese Advertising—Use of animation and cartoon characters : 

Japanese Advertising—Use of animation and cartoon characters 19

Relationship Based Marketing : 

Relationship Based Marketing Relationship marketing involves creating, maintaining and enhancing long-term relationship with individual customers as well as other stakeholders for mutual benefit. 20

Reasons for growth in Relationship Marketing : 

Reasons for growth in Relationship Marketing Companies recognize that customers have become much more demanding. New Technology is making possible to configure and personalize a wide array of products and services including computers, automobiles & clothing. Another major reasons is cost-effectiveness. 21

Dell Focuses on Building a Relationship With Customers : 

Dell Focuses on Building a Relationship With Customers + © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Traditional Approach to Marketing Communications : 

Traditional Approach to Marketing Communications © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Contemporary IMC Approach : 

Contemporary IMC Approach © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Role of IMC in Advertising & Branding : 

The Role of IMC in Advertising & Branding One of the major reasons for the growing importance of integrated marketing communications over the past decade is that it plays a major role in the process of developing and sustaining brand identity and equity. 25

Slide 26: 

Brand Identity is a combination of many factors, including the name, logo, symbols, design, packaging and performance of a product or service as well as the image or type of associations that come to mind when consumers think about a brand. 26

Reasons for the growing Importance of IMC : 

Reasons for the growing Importance of IMC A fundamental reason is that they understand the value of strategically integrating the various communications functions rather than having them operate autonomously. Due to this major changes have occurred among consumers with respect to demographics, lifestyles, media use and buying and buying and shopping patterns like : online purchase, teleshopping. 27

Slide 28: 

A shifting of marketing from media advertising to other forms of promotion, particularly consumer and trade- oriented sales promotions. A movement away from relying on advertising focused approaches, which emphasize mass media such as network television and national magazines to solve communication problems. A shift in marketplace power form manufacturers to retailers. 28

Slide 29: 

The rapid growth and development of database marketing. Demand for greater accountability from advertising agencies and changes in the way agencies are compensated. The rapid growth of the internet, which is changing the very nature of how companies do business and the ways they communicate and interact with consumers. 29

Slide 30: 

30

Marketing Strategy and Analysis : 

Marketing Strategy and Analysis Opportunity Analysis A careful analysis of the marketplace should lead to alternative market opportunities for existing product lines or new markets, new products for current markets, or new products for new markets. Competitive Analysis An important aspect of marketing strategy development is the search for a competitive advantage, something special a firm does or has that gives it an edge over competitors. 31

Target Market Selection : 

Target Market Selection A careful analysis of the marketplace should lead to alternative market opportunities for existing product lines or new markets, new products for current markets, or new products for new markets. 32 Identifying markets with unfulfilled needs Determining market segmentation Selecting a market to target Positioning through marketing strategies

One Voice Communication V/s IMC : 

One Voice Communication V/s IMC IMC is important of because of its synergy By Using IMC brand managers achieve synergy – that is multiple methods in communication with one another yield more positive communication results than do the tools used individually. 33

Key Features of IMC : 

Key Features of IMC Start with the customer or prospect. Brand Managers and their agencies should be amenable to using various marketing communication tools. Ex. Brand Managers of P&G placed the TIDE detergent logo on napkin dispensers in pizza shops. Ex. 20th Century ties up with Shopping Malls in US for huge advertise of their films. Multiple messages speak with a single voice Build relationships rather than engage in flings. Don’t lose focus of the ultimate objective: affect behavior. Anti. Smoking ads.. 34

Advertising : 

Advertising Advertising is Paid Non personal communication about an organization and its products transmitted to a target audience through mass media. 35

Cont… : 

Cont… Advertising Promotes goods, services, ideas, images, issues, people, and anything that advertisers want to advertise. 36

Advertising : 

Advertising American Marketing Association : - Advertising – Any paid form of non personal communication about an organization, product or service by an identified sponsor John E. Kennedy:- Advertise is salesmenship in print… Sidney Berstein:- Advertise as a substitute for the human sales man…. Tool of communication 37

What is Being Advertised? : 

20 - 38 What is Being Advertised? product advertising is designed to promote the sale of a specific product or service: may be direct-action, quick-response may be indirect-action over a longer time institutional advertising promotes the firm or tries to create a positive image: may promote customer service or send a public service message

What are the Objectives? : 

20 - 39 What are the Objectives? primary-demand advertising is intended to stimulate use of a category of products selective-demand advertising is intended to encourage purchase of a particular brand or the products and services of a specific firm

Comparative Advertising : 

20 - 40 Comparative Advertising Selective-demand advertising Involves comparing a product to its competing brand May be: Direct, naming competitors outright Less direct, alluding to competitors (e.g., “leading brand”, “Brand X”) but not naming them

Co-operative Advertising : 

20 - 41 Co-operative Advertising co-operative advertising involves the sharing of the cost of advertising by two or more sponsors: a manufacturer and retailers (vertical), or a group of retailers (horizontal)

Advertising….As a tool of Integrated Marketing Communication : 

Advertising….As a tool of Integrated Marketing Communication ENCODING THE MESSAGE MESSAGE CHANNEL DECODING THE MESSAGE RECEIVER CHANNEL FEEDBACK NOISE SENDER Text, p. 211. Mktg mgr Advertising mgr Advertising agency Advertisement Sales presentation Press release Store display Media, Salesperson Retail store News program Receiver interpretation of the message Customers Media audience News media Clients Other ads News articles Other store displays 42

Slide 43: 

Advertising Personal Selling The Marketing Communications Mix 43

5 M’s…. Of Advertising : 

5 M’s…. Of Advertising 44

Slide 45: 

45

Parle-G v/s Tiger : 

Parle-G v/s Tiger 46

Increase Competition : 

Increase Competition 47

Slide 48: 

48

Increase Unnecessary Demand : 

Increase Unnecessary Demand Craze of Mobile Phones Chocolates 49

Local to Global Media : 

Local to Global Media Television CNN, CNBC-TV.18, MTV Tonight Show, Disney Fox Broadcasting, Color’s, Sony., Star Plus, SAB TV, Zoom, Zee… Etc. 50

TV Shopping : 

TV Shopping Shopping Home Shopping Network Home Order Television 51

Message Development : 

Message Development message content rational versus emotional hard versus soft sell fear appeals Humor(Comedy) 52

Some Advertising Strategies : 

Some Advertising Strategies Comparative ads Humor appeal Adding beliefs (Relating it with special religion or belief of persons) Fear appeal Repetition Celebrity endorsements 53

Slide 54: 

Advertising Time Capsule 54

Public Relations : 

20 - 55 Public Relations A tool designed to influence favourably attitudes towards an organization, its products and policies. Public relations is often overlooked by management because of: Organization structure; not in marketing. Inadequate definitions; loosely defined. Unrecognized benefits; many non-believers.

Slide 56: 

The role of public relations (PR) is creating good relationships with the popular press and other media to help companies communicate messages to customers, the general public, and governmental regulators. 56

Public Relations : 

57 Public Relations

Functions of Public Relations : 

58 Functions of Public Relations

Public Relations Tools : 

59 Public Relations Tools

Publicity : 

20 - 60 Publicity Publicity is a form of public relations that includes any communication about an organization or its products that is presented by the media but is not paid for by the organization.

Some Media Alternatives : 

Some Media Alternatives Television Conventional advertisements Infomercials Sponsorship programming Radio Magazines Newspapers Outdoor Internet Point-of-purchase Other Movie theaters On other products 61

Promotion : 

Promotion Promotion Process Who is the target audience? What do you want to do? When do you want to do it? How do they seek and acquire information? What information do they seek? How do they use the information? …all from the buyer behavior model 62

Sales Promotion Tactics : 

Sales Promotion Tactics Consumer-directed Samples Coupons Cash refund offers Price offs Prizes Free trials Trade-directed Price offs Allowances Free goods Sales contests Trade shows Specialty advertising 63

Comparison between Advertising & Personal Selling : 

Comparison between Advertising & Personal Selling 64

Slide 65: 

Rebates are often effective at changing purchase probabilities, even for big-ticket items 65

Slide 66: 

Coupons, too, can be effective at getting consumers to purchase specific products 66

Sales Promotion Methods for Consumers : 

Multiple purchase offers, Frequent-user incentives Product sampling, demonstrations Sales Promotion Methods for Consumers 67

Classifying Types of Sales Promotion : 

Classifying Types of Sales Promotion Promotional pricing Non-price promotions Sampling Price reductions Free goods Tied offers(Joint) Money off next purchase Cheap credit Contests Free gifts Self-supporting offers Multi-brand promos s Guarantees and added services Most effective in the early stages of a new product launch Important for food products Very expensive 68

Slide 69: 

Thanks 69