CBMC-IIISEM

7/30/2019 CBMC-IIISEM

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Consumer Behavior & Marketing Communication

Unit - III Communication & its Process

Marketing Communication &

Objectives

Integrated Marketing

Communication

Factors contributing IMC IMC Promotion mix &

Challenges

IMC Management & Planning

model

Integrated Marketing

Communication& Supportive communication

E-commerce in Marketing

Communication


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Learning Objectives

Understanding the concepts of

communication, marketing communication

& integrated marketing communication

The planning & promotion mix of IMC

The involvement of e-commerce in

marketing communication


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Communication & its Process

Chapter-1

Unit-3


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Good communication

Good communication is essential for obtainingefficiency, quality, responsiveness to customers,and innovation, and thus a necessity for gaininga competitive advantage.

Good communication is necessary so thatmanagers can increase efficiency by learningto take advantage of new and more efficient

technologies and by training workers to operatethe new technologies.


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Good communication Continued.

Improving quality hinges on effective communication,since managers need to communicate to employees theimportance of high quality and the routes to attaining it.

Good communication can help increase responsivenessto customers

Innovation, which often takes place in cross-functional

teams, also requires effective communication


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The Communication Process

The communication process consists of twophases. In the transmission phase, informationis shared between two or more individuals orgroups. In the feedback phase, a common

understanding is reached.

To start the transmission state, the sender, theperson or group wishing to share information

with some other person, decides on themessage, and what information to communicate.


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Communication processcontinued

The sender translates the message into symbols orlanguage, a process called encoding.

Noise refers to anything that hampers any stage of the

communication process.

Once encoded, a message is transmitted through amedium to the receiver, the person or group for which

the message is intended.


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A medium is the pathway through which a message istransmitted to a receiver.

At the next stage, the receiver interprets and tries to

make sense of the message, a process calleddecoding.

The feedback phase is begun when the receiver

decides what message to send to the original sender,encodes it, and transmits it.


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The original sender decodes the message andmakes sure that a common understanding has beenreached. If a common understanding has not beenreached, the sender and receiver repeat this processas many times as needed to reach a common

understanding.

The encoding of messages into words, written orspoken, is verbal communication. Nonverbalcommunication shares information by means of

facial expressions, body language, and even style ofdress.


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Nonverbal communication can be used toreinforce verbal communication. People tend tohave less control over nonverbal communicationand can inadvertently send a message they didnot intend to. Sometimes nonverbalcommunication is used to send messages thatcannot be sent through verbal channels.


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The Communications Process


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Marketing Communication &

Objectives

Chapter-2

Unit-3


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Marketing Communication

MARKETER INITIATED TECHNIQUES USED TO SETUP CHANNELS OF INFORMATION ANDPERSUASION WITH TARGETED AUDIENCES TOINFLUENCE ATTITUDES AND BEHAVIOR

Promotion

Message and Media

MARKETING COMMUNICATIONS MIX

Tool Box of Media and Techniques

Integration and Coordination Based on Communications Model


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OBJECTIVES OF MARKETING COMMUNICATION

Informing

Persuading

Reminding

Increase Market Penetration

Develop Repeat Purchase Behavior

Establish Customer Relationships

Increase Rate of Consumption

Encourage Product Trial Stimulate Impulse Buying

Stimulate Demand

Differentiate the Product

Establish a Product Image

Influence Sales Volume

Establish, Modify, or Reinforce Attitudes

Develop Sales Leads

Stimulate Interest

Establish Understanding

Build Support & Acceptance


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Objectives of marketing communication

Stimulate trials

Encourage Repurchase

Complementary Products

Increase Consumption

Neutralize Competitors Support Flexible Pricing

Impulse Purchasing

Price Deals

Coupons

Avoid Price Reductions

Gain/Maintain Distribution

Defend Against

Competitors Influence Reseller

Promotion

Increase ResellerInventory

Influence Price Discount


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Marketing Communications Audience

Point of Purchase

Public Relation

Publicity

Packaging Direct Response

Sales Promotions

Events

Out door

Broad cast

Print media Direct mail

Internet/interactive

media


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Marketing Communications Audience

The concept of integrated marketing communicationsshows a broad perspective of an IMC approach thatconsiders all sources of brand or companycontactthat acustomer or prospect has with a product or service.

The IMC perspective requires that a company develop atotal marketing communications strategy that recognizesall of the ways a company can communicate with itscustomers.

It introduces the concept of integrated marketingcommunications and how consumers perceptions of acompany and/or various brands are formed throughmessages they receive or contacts they have with thecompany.


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Traditional Approach to Marketing

Communications The traditional approach to advertising and promotion where many of the

marketing and promotional functions were planned and managed separatelywith different budgets, different views of the market, and different goals andobjectives.

Many of the marketing activities such as package design, sales promotion,

and direct marketing services were viewed as ancillary services andhandled on a project basis rather than integrating them into the IMCprogram.

The traditional approach to marketing communications lacks coordinationand consistency. The disconnected puzzle pieces are designed todemonstrate how traditional approaches to marketing communications often

viewed the various IMC tools as separate pieces of the puzzle rather thanhaving them all work together.


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Basic Elements of the Promotional Mix

The promotional mix is the basic tools used to accomplish an organizationscommunication objectives. These tools include:

Advertising any paid form of non personal communication about an organization, product,service, or idea by an identified sponsor

Direct marketing communication directly with target customers to generate a responseand/or transaction

Interactive/Internet marketing communication through interactive media such as theInternet, CD-ROMS and kiosks.

Sales promotion marketing activities that provide extra value or incentives to sales force,distributors, or consumers to stimulate immediate sales

Publicity/Public Relations Publicity is a form of non-personal communication not directlypaid for or run under identified sponsorship. Public relations is a management function

which executes programs of action to earn public understanding and acceptance anenhance the image of the company.

Personal Selling person-to-person communication between a seller and buyer


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Direct Marketing is Part of IMC

Direct marketing is a form of integrated marketingcommunications whereby an organization communicatesdirectly with target customers to generate a responseand/or transaction. It involves a variety of activities

including: Direct mail Direct response advertising (on TV, radio or in magazines or

newspapers)

Telemarketing

Internet Sales Catalogs

Shopping channel


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Using the Internet as an IMC Tool

The rapid changes in technology have led to dramatic growth ofcommunications through interactive media, particularly the Internet.This communication medium is unique in that it allows for the back-and-forth flow of information in real time.

Customers can perform a variety of functions on the Internet such asreceive and alter information and images, make inquires, respond toquestions, and, of course, make purchases.

The Internet has changed the ways companies communicate totheir customers as companies and organizations of all sizes havedeveloped websites to promote their products and services.


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IMC Promotion mix &

Challenges

Chapter-5

Unit3


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Setting the Overall Promotion Mix

Determined by the nature of each

promotion tooland the selected

promotion mix strategy

Setting the Promotional Mix


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Advert is ing

Personal Selling

Sales Promotion

Public Relations

Direct Marketing

Reaches large, geographicallydispersed audiences, often withhigh frequency

Low cost per exposure, thoughoverall costs are high

Consumers perceive advertisedgoods as more legitimate

Dramatizes company/brand

Builds brand image; maystimulate short-term sales

Impersonal; one-waycommunication

Promotion

Tools


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Advertising

Personal Selling

Sales Promot ion

Public Relations Direct Marketing

May be targeted at the trade orultimate consumer

Makes use of a variety of formats:

premiums, coupons, contests,etc.

Attracts attention, offers strongpurchase incentives, dramatizesoffers, boosts sagging sales

Stimulates quick response

Short-lived

Not effective at building long-term brand preferences

Promotion

Tools


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Advertising

Personal Selling

Sales Promotion

Publ ic Relat ion s

Direct Marketing

Highly credible

Many forms: news stories, news

features, events andsponsorships, etc.

Reaches many prospects missed

via other forms of promotion

Dramatizes company or benefits

Often the most underused

element in the promotional mix

Promotion

Tools


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Advertising

Personal Selling

Sales Promotion

Public Relations Direct Marketing

Many forms: Telephonemarketing, direct mail, onlinemarketing, etc.

Four distinctivecharacteristics:

Nonpublic

Immediate

Customized

Interactive Well-suited to highly targeted

marketing efforts

Promotion

Tools


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Promotion Mix Strategies

Push strategy: trade promotions and personal

selling efforts push the product through the

distribution channels.

Pull strategy: producers use advertising and

consumer sales promotions to generate strongconsumer demand for products.



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Checklist: Integrating the Promotion Mix Analyze trends (internal and external)

Audit communications spending Identify all points of contact

Team up in communications planning

Make all communication elements compatible

Create performance measures

Appoint an IMC manager



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IMC Management & Planning

modelChapter-6

Unit-3


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IMC Planning Model

This model presents the framework for developing, implementing,evaluating, and controlling the firms IMC program and activities.

This model should be reviewed very carefully at the beginning of thecourse to show students what is involved in the development of acomplete IMC program.

It presents the framework that is used for the text and provides anopportunity to provide students with the big picture and a roadmapof what will be covered in the course.


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IMC Planning Process

The first step in the IMC planning process is to review the marketingplan and objective. Before developing a promotional plan,marketers must understand where the company (or brand) hasbeen, its current position in the market, where it intends to go, andhow it plans to get there.

Most of this information should be contained in the marketing plan.Marketing plans can take several forms, but general include thefollowing five basic elements:

A detailed situation analysis, which includes an internal marketingaudit and review and an external analysis of the market competition and

environmental factors.


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IMC Planning Process continued

Specific marketing objectives that provide direction, a time frame formarketing activities, and a mechanism for measuring performance.

A marketing strategy and program that includes selection of targetmarkets and plans for the four elements of the marketing mix

A program for implementing the strategy, including determiningspecific tasks to be performed and responsibilities.

A process for monitoring and evaluating performance and providingfeedback so proper control can be maintained and necessary changescan be made in the overall marketing strategies and tactics.


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Direct Marketing is Part of IMC

Direct marketing is a form of integrated marketing communicationswhereby an organization communicates directly with targetcustomers to generate a response and/or transaction. It involves avariety of activities including: Direct mail

Direct response advertising (on TV, radio or in magazines or

newspapers) Telemarketing

Internet Sales

Catalogs

Shopping channel

This slide provide an overview of direct marketing and the variousforms it can take.


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Using the Internet as an IMC Tool

The rapid changes in technology have led to dramatic growthof communications through interactive media, particularly theInternet. This communication medium is unique in that itallows for the back-and-forth flow of information in real time.

Customers can perform a variety of functions on the Internet

such as receive and alter information and images, makeinquires, respond to questions, and, of course, makepurchases.


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Using the Internet as an IMC Toolcontinued.

The Internet has changed the ways companies communicate to theircustomers as companies and organizations of all sizes havedeveloped websites to promote their products and services.

show that the Internet has changed the way companies communicatewith their customers. Because of its interactive nature, it is a veryeffective way to communicate with customers.

Actually, it is a medium that can be used to execute all elements ofthe promotional mix. In addition to advertising, companies can offersales promotion incentives such as coupons or contests, do directmarketing, and execute public relations, and personal sellingfunctions via the Internet.


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Sales Promotion Tools

Sales promotion is defined as those activities that provide extravalue or incentives to the sales force, the distributors, or the ultimateconsumer and can stimulate immediate sales. Sales promotion isgenerally broken down into two categories:

Customer-oriented targeted to the ultimate user of the product or

service and includes coupons, sampling, premiums, contests,sweepstakes, refunds/rebates, bonus packs, events, and loyaltyprograms.

Trade-oriented targeted to marketing intermediaries such aswholesalers, distributors, and retailers and includes trade allowances,price deals, sales contests, trade shows, and cooperative advertising.


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Various Uses of Sales Promotion

There are various reasons why companies choose to use salespromotion in their IMC programs. The various uses of consumer andtrade promotion include:

Introduce new products

Get existing customers to buy more

Attract new customers

Maintain sales in off seasons

Increase retailer inventories

Enhance or tie in advertising with personal selling

Combat competition


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Publicity / Public Relations

Publicity refers to the non personalcommunications regarding an organization,product, service, or idea not directly paid for orrun under identified sponsorship.

Companies attempt to get the media to cover orrun favorable stories on their products, services,or causes. It usually comes in the form of anews story, editorial, or announcement.


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IMC Basics

Coordinate various communications approaches

into a mutually supportive, thematically unified,

coordinated whole

Must manage all sources of information about a

product that moves the customer towards a sale

and maintains loyalty


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Supportive Elements

Pg.34, ch-3, Lindquist & Sirgy Shopper, Buyer & Consumer Behavior


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Primary Goal of Support Elements

First task is to retain satisfied customers, not justproduce new customers Difference between creating a single sale and creating a lifelong

customer

Critical to coordinate paid and unpaid media as part ofIMC efforts Timing of Message Placement

Reinforcement Across Channels

Compatibility of Editorial Tone

All with the goal of building relationships


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Power of PR

Marketers find is increasing difficult to reach

consumers hearts and minds

Decline of mass marketing and limited

effectiveness of target advertising

Power of news, events, and communityprograms to regain a share of voice


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Credibility is Key

PR more credible than advertising

Key to reaching skeptical consumers

Particularly when targeting youth, who want tobe told not sold

Important for building brand awareness

Critical for building brand credibility


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How MPR Works with IMC

Builds personal relationships with brand

Ex. Butterball Talk line, Pillsbury Bake-Off

Influences the influencers

Ex. Secondary Effects Through Opinion Leaders

Communicates new product benefits

Ex. Arm & Hammer, Aspirin, Cranberry Juice

Demonstrates social responsibility and build trust

Ex. Ben & Jerrys, Body Shop, McDonalds

Defends products at risk and gives permission to buyEx. Tylenol, Pepsi, Robert Downey Jr.


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E-commerce in Marketing

CommunicationChapter-8

Unit-3


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Internet Communications Objectives

Some of the possible communications objectives

sought when using the Internet. These include:

Creating awareness

Generating interest Disseminating information

Creating an image

Creating a strong brand

Stimulating trial


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Internet Communications Objectives

Another use of the Internet which is to use themedium for the direct sale of goods andservices.

E-Commerce has become an important part ofthe worldwide web, both on the consumer andbusiness to business side.

E-commerce refers to the direct selling ofproducts and services on the web which may bea primary or secondary objective for a web site.


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E-Commerce on the Web

E-commerce continues to grow at a very fastpace. This growth comes from downloadablepurchasesfor example books, reports, maps,tickets, and other item.

The strong growth of E-commerce is expected tocontinue, in both the business-to-business andconsumer markets.

Many companies are maintaining their brick andmortar stores and operations but are nowselling through the Internet as well.

Integrating the Internet into an


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Integrating the Internet into an

IMC Program As part of the IMC program, the Internet will be used most effectively if

integrated with other media. This slide demonstrates the other IMC toolswith which the Internet should be coordinated including: Advertising

Sales promotion

Personal selling

Public relations

Direct marketing

The various IMC tools should be combined with the Internet to create amore effective IMC program.

Research studies have shown that by integrating the Internet with otherIMC components, overall communication is more effective. In addition, the

ability to have visitors come to ones website may require effective use ofother IMC program elements.


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Personal Selling on the Internet

The Internet will replace personal selling as we now know it, orwhether it will enhance personal selling efforts. The argument infavor of replacing notes that the Internet reduces the high cost ofpersonal selling and vastly increases reach, and is, therefore, moreeffective and efficient than personal selling.

Numerous factors supporting the notion that the Internet willenhance selling efforts. These include: Provision of information to prospects

A source of leads

Enhancement of databases

Stimulating trial

Improving one-on- one communications Serving as a sales conference medium


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Direct Marketing and the Internet: Direct Mail

Conducting direct marketing on the Internet through theuse of e-mail, including the fact that it is often used bycatalogers, is highly targeted, relies heavily on lists andattempts to reach those with specific needs.

Direct mail usage on the Internet continues to increase,and has recently fallen under attack as a result ofsignificant increases in the use of SPAM or online junkmail. Like its traditional direct mail counterpart, critics ofSPAM have attempted to enact legislation to prohibit or

limit its use.


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Measures of Effectiveness

The measures of effectiveness for Internet. Theseinclude: Tracking - measuring effects over time

Sales - particularly when e-commerce is the objective

Panels - designed to measure reactions to various aspects ofthe website

Surveys used to determine everything from site usage toattitudes

Recall and retentionused to measure whether viewersremember seeing ads

Online measuringmeasures of viewer behavior when visitinga web site

Internet Advantages &


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Internet Advantages &

Disadvantages Advantages include:

Targeting capabilities Message tailoring Interactive capabilities

Information access Sales potential Creativity Exposure

Speed Complementing other IMC elements


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Disadvantages include: Measurement problems Websnarl Clutter Potential for deception Privacy issues Limited production quality

Poor reach Irritation

The Internet offers numerous advantages but still has manylimitations. Many of the disadvantages are in the process of beingeliminated or reduced. Like any other medium, the marketer mustunderstand the benefits and limitations of the Internet to effectively

use it as part of the IMC program.

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