IMC for Class

8/2/2019 IMC for Class

1/58

PowerPoint to accompany

Fundamentalsof

IMC


2/58

Kotler, Adam, Denize, Armstrong Principles of Marketing 4e 2009 Pearson Education Australia

Integrated MarketingCommunication (IMC)

IMC is the concept of coordinatingcommunication channels of delivering consistentand clear message towards itsaudience/customer. Advertising. Sales promotion. Public relations. Direct and online marketing. Personal selling.

Challenges of IMC: The tools are developed in differentdepartments that has its own objective

Aeromatic Halal soap: Inconsistencies of their ad claimand distribution channel


3/58


Classifying IMC Media, Toolsand Technologies

Mass Communication/media: The use of mass media such as free to air television,

radio, newspapers and magazines, as well as cinemaand outdoor media. (Researches on Media)

Most common communication elements are:

Advertising: Any paid form of non-personal presentation and

promotion of ideas, goods or services by an identified

sponsor. (Benefit/limitations of ad) and research resultof ads in different media

Kotler says: It s distribution and promotion for BOPmarket


4/58


Table 12.1 A Classification of IMC Media


5/58


The Marketing Communication System


6/58


Figure 12.2 Elements in theCommunication Process


7/58


Steps in Developing IMC


8/58


Buyer-readiness States


9/58


Determine Response Sought Awareness: Through TVC/telco service provider

The communicator must be able to gauge the target

audiences awareness of the product or organisation. Knowledge: (Pepsodant tooth paste)

Communicators need to learn the target audiences level ofknowledge.

Liking: (Knowing through mr/meril shampoo) How much does the target audience like the product?

Preference

Does the target audience prefer the product to others?

Conviction: (through personal sales and demonstration) The communicator must build the targets conviction about

buying the product.

Purchase The communicator leads the target to purchase.

Pharmaceuticals promotion to hospital : No ads formedicine but no constraint for hospital


10/58


Selecting a Message

Ideally the message should: Get Attention

Hold Interest

Arouse Desires

Obtain Action

(A framework known as the AIDA model)


11/58


Major decisions in communications/AD:Figure 16.4


12/58


Setting communicationobjectives:

A) Communication objectives (Toinform/To persuade/To remind)

Informing and persuading heavily depend on ad

B) Sales Objectives (Sales objectives of RC andPRAN


13/58


Selecting a Message: Message Content

Rational Appeals

Relate to the audiences self interest. They show how

the product will produce the desires benefits (toothpaste).

Emotional Appeals These stir up positive or negative emotions that can

motivate purchase (Lottery).

Moral Appeals

These are directed to the audiences sense of what isright and proper (Red cross or Ahsania mission)).


14/58


Selecting a Message

Message Structure-there are three message-structure issues: Whether to draw a conclusion or leave it to the

audience? (Preferred for literate audience) Whether to present a one-sided or two-sided

argument? (Preferred for rational buyers) Whether to present the strongest argument first or last?

(Preferred for irrational buyers)/teenaged market)

Message Format The communicator needs a strong format for the

message. In print ads, the communicator decides on the headline,

copy, illustration and colour. (Punch lines..) For radio, the communicator chooses words, sounds

and voices (RJ for radio) For TV, all elements plus body language have to be

planned.(TVC of Labaid hospital)


15/58


Personal Communication channels

Channels through which two or more people communicatedirectly with each other, including face-to-face, person-to-

audience, over the telephone or through the mail (Criticalfor service sector)/call centres as third partyagencies) (WOM/Buzz marketing)

Non-personal communication channels personal contact or feedback, including

media, atmosphere and events.(Channels thatcarry messages without personal contact)

(Reach/frequency/impact)/ Promotional pollution foraudiences??!!!

Advantage and disadvantages are always there

Selecting major media types: electronic, printed andalternative media

Choosing Media


16/58


Selecting the Message Source

The messages impact on the audience is also affected by

how the audience views the sender.

Messages delivered by highly credible sourcesare more persuasive e.g. professionals, actors

and athletes (Ricky ponting/Tendulaker and AB)

Sources are made credible by expertise,trustworthiness, and likeableness.(Ambassador for UNICEF)


17/58


Collecting Feedback

After sending the message, thecommunicator must gauge its effect onthe target audience do they remember

the message? What points are recalled?How they felt about the message and theirpast and present attitudes to the productand company.


18/58


Setting the IMC Budget and Mix

Four common methods used to set the total budget foradvertising:

1.affordable method (SMEs)

2.percentage-of-sales method (oilcompanies do % base promotion)

3.competitive-parity method (Coke VSPepsi)/(Frooto and Frutika)

4.objective-and-task method(plc, market share,nature of competition (Teletalk), advertisementfrequency (Hamdard), Product differentiation


19/58


Setting the IMC Mix

The marketing organisation must nowdivide the total marketing communicationbudget among the major marketingcommunication categories specific media,

tools and technologies:

Media advertising

Public relations

Sales promotion

Direct and digital marketing

Personal selling


20/58


Considerations in DevelopingIntegrated Marketing Communication

IMC program, including type of productand market, push versus pull strategy,buyer-readiness state and product lifecycle stage.

A push strategy involves pushing theproduct through marketing channels tofinal consumers. (TVC)

A pull strategy directs marketing activitiestowards final consumers to induce them tobuy the product. (WOM)/NGO and socialmarketing products


21/58


Advertising

Advertising can be traced back to thevery beginnings of recorded history.Early Greeks, Romans and

Phoenicians used advertising to informand sell.

Modern marketing is very different with

$10 billion being spent each year onadvertising in Australia alone.


22/58


Possible Advertising Objectives


23/58


Developing an AdvertisingStrategy

A large advertising budget does notguarantee a successful advertisingcampaign. Two advertisers can spend the

same amount on advertising yet havevery different results.

The first step in creating effectiveadvertising messages is to decide what

general message will be communicated toconsumersthe message strategy.

M E ti Cl


24/58


Message Execution: Classcontribution..

Slice-of-life:this style shows one or more peopleusing the product in a normal setting.

Lifestyle: this style shows how a product fits inwith a lifestyle.

Fantasy: this style creates a fantasy around theproduct or its use.

Mood or image: this style builds a mood or imagearound the product, such as beauty, love

Musical: this style shows one or more people orcartoon characters singing a song about theproduct.


25/58


Message Execution

Personality symbol:this style creates a characterthat represents the product.

Technical expertise:this style shows thecompanys expertise in making the product.

Scientific evidence:this style presents survey orscientific evidence that the brand is better orbetter liked than one or more other brands.

Testimonial evidence:this style features a highlybelievable or likeable source endorsing theproduct.


26/58


Selecting Advertising Media

The advertiser next chooses advertisingmedia to carry the message.

The four major steps in media selection

are:1. Deciding on reach, frequency and impact.

2. Selecting major media types.

3. Deciding on media timing.

4. Selecting specific media vehicles.


27/58


Profiles of the Main Media Types

V


28/58


Measuring the Sales Effect: Is this Verydifficult to measure??!!

For example: What sales are caused by an ad thatincreases brand awareness by 20% and brand preferenceby 10%?

The sales effects of advertising are often harder tomeasure than the communication effect as sales areaffected by many factors besides advertising.

One way is to measure the sales effect of advertising is tocompare past sales with past advertising expenditures,another is experimentation.

Measuring the results of advertising expenditure remains

inexact.


29/58


International Advertising Decisions:Understanding cross cultural differences

The major decision is the degree to which globaladvertising should be adapted to the uniquecharacteristics of various country markets.

Standardisation has benefits such as lower costs

and greater coordination of global efforts butignores cultural differences.

Most companies think globally and act locally.

Costs and legislative requirements in different

countries need to be considered.


30/58


Public Relations Decisions

Another major mass-communication toolis public relations it aims at buildinggood relations with the companys various

publics using different tools: Press relations

Product publicity

Public affairs

Lobbying Investor relations

Development


31/58


Major Public Relations Tools

News

Speeches

Special events

Written materials

Audiovisual materials

Corporate identity materials

Community service activities

S i ll R ibl M k ti


32/58


Socially Responsible MarketingCommunication

Advertising

Companies must avoid false or deceptiveadvertising. Advertisers must not create adsthat have the capacity to deceive. Sellersmust avoid bait-and-switch advertisingthatattracts buyers under false pretences.

Personal selling

Companies must ensure their salespeoplefollow the rule of fair competition when theysell the products directly.

S i ll R ibl M k ti


33/58


Socially Responsible MarketingCommunication

Direct and Digital Marketing:

Direct and digital marketers and theircustomers usually enjoy mutually rewardingrelationships.

However, unfairness, deception and fraudarethe dark side that may emerge.

The direct marketing industry has also facedgrowing concerns about invasion of privacyissues(Insurance service provider).


34/58

PowerPoint to accompany

Chapter 13

IMC: SalesPromotion and

PersonalSelling


35/58


Chapter Objectives (1)

1. Describe sales promotion tools andtechniques which may be used to createimmediacy and close sales, as well as

reward loyal customers.2. Discuss the role of a company's

salespeople in creating value forcustomers and building customer

relationships.3. Identify the six major salesforce

management steps.


36/58


Chapter Objectives (2)

4. Explain how companies recruit, selectand train salespeople.

5. Describe how companies compensate

and supervise salespeople, and howthey evaluate salesforce effectiveness.

6. Discuss the personal selling process,distinguishing between transaction-

oriented marketing and relationshipmarketing.


37/58


Sales Promotion

Sales promotion is the act of influencingcustomer/consumer perception and behaviour tobuild market share and sales which reinforcesbrand image.

1. Sales promotion is a term that is closely linked with

direct and digital marketing, but has its origins inFMCG.

2. Although the words may be used to mean differentthings in different organisations, nearly all marketingscientists and practitioners agree on what salespromotion tools do.

3. They cover a range of incentives that are used withproducts promoted via either mass media advertising orby direct and digital methods.


38/58


Purpose of Sales Promotion

Sellers use sales promotions to attract new triers,to reward brand-loyal customers and therebyretain them, to reduce the time betweenpurchases, and even to turn light users into

medium or heavy users. The aim might also beto regain past purchasers who have ceasedbuying.

New triers of a product category fall into one of

three groups: non-users.

loyal users of another brand.

brand switchers.

Setting Sales Promotion


39/58


Setting Sales PromotionObjectives

Sales promotion objectives are as varied as themethods used. Sellers may use consumerpromotions to increase short-term sales or tohelp build long-term market share.

The objective may be one of the following: to entice consumers to try a new product or

brand.

to lure consumers away from competitorsproducts or brands.

to get consumers to load up on a matureproduct.

to hold and reward loyal customers.


40/58


Sales Promotion

The main tools falling into this category include:

1. Samples

2. Redeemable coupons

3. Cash-back offers

4. Cents-off deals or price packs

5. Premium offers

6. Advertising specialties

7. Patronage rewards8. Point-of-purchase (POP) promotions

9. Contests and games of chance and skill


41/58


Sales Promotion

Trade Promotion Tools

An incentive applied to the retail trade tostock more of a product or to provide

increased merchandising space, usuallyduring a consumer promotion.

Business-to-Business Promotion Tools

Industrial marketers adapt many

promotion tools to suit their own situationsin addition to conventions, trade showsand sales contests

Developing Sales Promotion


42/58


Developing Sales PromotionPrograms

A number of decisions must be madein order to define the full salespromotion program:

Size of the incentive. How to promote and distribute the

program.

The length of the promotion.

Evaluation.


43/58


There are many types of personal selling jobs,and the role of personal selling can vary greatlyfrom one industry to another and from onecompany to another.

The people who do the selling go by manynames: Salespeople

Sales representatives

Account executives/representatives

Sales consultants/engineers Agents

District mangers

Marketing representatives

Personal Selling


44/58


The Role of the Salesforce

Personal selling is the interpersonal arm of thepromotion mix.

Advertising consists of one-way, non-personalcommunication with target consumer groups. In

contrast, personal selling involves two-way,personal communication between salespeopleand individual customerswhether face-to-face

by telephone

through video conferences or by other means

This means that personal selling can be more effectivethan advertising in complex selling situations.


45/58


Managing the Salesforce

Salesforce Management

The analysis, planning, implementationand control of salesforce activities. It

includes setting salesforce objectives,designing salesforce strategy, andrecruiting, selecting, training,compensating, supervising and evaluating

the firms salesforce.

Recruiting and Selecting Sales


46/58


Recruiting and Selecting SalesPeople

At the head of a successful salesforce operationis the selection of good salespeople.

Successful salespeople include a variety ofpeople but the best share four key talents:

Intrinsic motivation

Disciplined work style

The ability to close a sale

The ability to build relationships with customers

Top performers are empathetic, patient, caring,responsive, good listeners and honest.


47/58


Nudie

Click on this link to view the Nudievideo case study


48/58


Recruiting and Selecting Sales


49/58


Recruiting and Selecting SalesPeople

Recruiting Procedures The personnel department looks for applicants by

getting names from current salespeople, usingemployment agencies, placing job ads and contactinguniversity students.

Selecting Salespeople Selection procedures vary from a single informal

interview to lengthy testing and interviewing.

Tests typically measure sales aptitude, analytical andorganisational skills, personality traits and other

characteristics. Required information about applicants includes

personal characteristics, references, past employmenthistory and interviewer reactions.

N di


50/58


Nudie

Click on this link to view the Nudievideo case study


51/58


T i i S l l


52/58


Today, the average training period for asalesperson is four months.

Training programs have several goals:

Sales people need to know and identify with the

company. They need to be familiar with the companys products.

They need to know customers and competitors

characteristics.

Salespeople must know how to make effective

presentations and be trained in the principles of selling.

They need to understand field procedures andresponsibilities.

Training Salespeople

C ti S l l


53/58


Compensating Salespeople

To attract need salespeople, a company musthave an attractive compensation plan.

The level of compensation must be close to thegoing rate for the type of job and skills required.

Compensation is made up of several elements-afixed amount, a variable amount, expenses andfringe benefits.

Management must decide what mix of these

compensation elements makes the most sensefor each sales job.

Supervising and Motivating


54/58


Supervising and MotivatingSalespeople

New salespeople need supervision to help themwork smart.

Motivation helps them to work hard andenergetically towards agreed salesforce goals.

Salespeople need to use their time efficiently,tools include: Annual call schedule

Time and duty analysis

Salesforce automation systems

Management can boost salesforce morale andperformance through: Sales quotas

Positive incentives

Figure 13 2 How Salespeople


55/58


Figure 13.2 How SalespeopleSpend Their Time

Evaluating Salespeople and


56/58


Evaluating Salespeople andPerformance

Sources of Information about salespeopleare derived in several ways:

Sales reports

Call reports Expense reports

Personal observation

Customers letter and complaints

Customer surveys Other salespeople

Th P l S lli P


57/58


The Personal Selling Process

Steps in the Selling Process: Prospecting

Pre-approach

Approach Presentation and demonstration

Handling objections

Closing

Follow-up

Personal Selling and


58/58

Personal Selling andRelationship Marketing

Relationship marketing (RM) is the process of creating,maintaining and enhancing strong, value-ladenrelationships with customers and other stakeholders.

RM emphasises building and maintaining profitable long-

term relationships with customers by creating superiorcustomer value and satisfaction.

More companies are realising that winning and keepingaccounts requires more than making good products andclosing lots of sales. It requires a carefully coordinated,

whole-company effort to create value-laden satisfyingrelationships with important customers.

Documents

IMC for Class