Group no. 3T.Y BMSSubject- Special Study in Marketing

IMC. What is it?IMC. What is it?Defination: DEFINATION-Integrated marketing communication is a strategic business process used to plan, develop, exec cute and evaluate coordinate, measurable persuasive brand communications programs over time with customer’s consumers, prospectus, employees, associates and other targeted relevant external and internal audiences. The goal’s to generate both short term financial returns and build long-term brand and shareholder value.

IMC(Integrated Marketing Communication) basically is a way of getting all the various components of your business to work together to develop & promote a salable product or service.

IMC is the integration of:MarketingAdvertisingSales promotionPublic relations.

Advertising has much strength like reaching mass audiences, creating awareness, building preference, etc, but it also has major weaknesses like targeting individual consumers, making them believe a message and pushing them to action. Thus, it has to be combined with that of other communication elements such as direct marketing, sales promotions, and public relation. The various promotional tools involved in product promotion comprise the promotional mix of an organization. They include advertising, personal selling, sales promotion, public relations, and direct marketing.

One of the major reasons for the growing importance of the IMC over the past decade is that

it plays a major role in the process of developing and sustaining brand identity and equity.

Building and properly managing brand equity has become a priority for companies of all the sizes, in all types of industries, and in all types of markets.

With more and more products and services competing for consideration by customers who have less and less time to make choices, well-known brands have a major competitive advantage in today’s market place.

Building and maintaining brand identity and and equity requires the creation of well –known brands that have favourable, strong and unique association in the minds of the consumer.

Advertising

Elementsof thePromotionalMix

Sales promotion

Direct selling

Personal Selling

Public RelationsPublic Relations

Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.

Traditional Advertising Media

ElectronicAdvertising Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Computer modems Fax machines

AdvantagesAdvantages

Ability to reach large Number of people

Cost per contact is low

Can be micro-targeted

DisadvantagesDisadvantages

Total cost is high

Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and

dealer effectiveness.

Sales promotion targets

End consumers

Trade customers

Company employees

Popular tools for sales promotion

Free samples

Contests

Premiums

Trade shows

Vacation giveaways

coupons

The marketing function thatevaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance

Functions:

Evaluates public attitude

Identifies public areas of interest

Executes programs to “Win” public

This tool is utilized to email, mail, catalogs, encourage direct responses to radio and TV, in order to reach targeted audiences to increase sales and test new products and alternate marketing tactics.

Setting sales appointments and meetings, home parties, making presentations and any type of one-to-one communication, to reach your customers and strengthen your relationship with your clients, initiate this IMC tool.

Although Integrated Marketing Communications requires a lot of effort it delivers many benefits.

1.It can create competitive advantage, boost sales and profits, while saving money, time and stress.

2. IMC wraps communications around customers and helps them move through the various stages of the buying process. This ‘Relationship Marketing’ cements a bond of loyalty with customers. The ability to keep a customer for life is a powerful competitive advantage.

3. IMC also increases profits through increased effectiveness.

4. Carefully linked messages also help buyers by giving timely reminders, updated information and special offers which, when presented in a planned sequence, help them move comfortably through the stages of their buying process

5. IMC also makes messages more consistent and therefore more credible..

6. Finally, IMC saves money as it eliminates duplication in areas such as graphics and photography since they can be shared and used in say, advertising, exhibitions and sales literature.

Slogans of the products

Intel :Intel Inside

Apple-"The Power to Be Your Best."

Burger King-"Have it your way" : "Have it your way"

Nike-"Just do it!"

L’oreal-"Because I'm worth it"

Visa-It's everywhere you want to be.

Big Bazaar-Is se sasta aur acha kahin nahi : Is se sasta aur acsha kahin nahi

BMW-The ultimate driving machine.

Nokia

Airtel

Vodafone

Loreal

Nakshatra :

Lays

TataSky

Top Management Support (lack of). 

Accurate Metrics (lack of). 

Manpower (lack of). 

Theoretical and practical foundations (lack of). 

Changes needed in the organization

1) Get Senior Management Support for the initiative by ensuring they understand the benefits of IMC.

2) Integrate at Different Levels of management. Horizontally – ensure that all managers, not just marketing managers understand the importance of a consistent message – whether on delivery trucks or product quality.

3) Ensure the Design Manual or even a Brand Book is used to maintain common visual standards for the use of logos, type faces, colours and so on.

4) Focus on a clear marketing communications strategy.

5) Start with a Zero Budget. Start from scratch. Build a new communications plan.

6) Think Customers First. Wrap communications around the customer’s buying process. Identify the stages they go through before, during and after a purchase

7) Build Relationships and Brand Values. All communications should help to develop stronger and stronger relationships with customers.

8) Develop a Good Marketing Information System which defines who needs what information when.

9). Share Artwork and Other Media. Consider how, say, advertising imagery can be used in mail shots, exhibition stands, Christmas cards, news releases and web sites.

10). Be prepared to change it all. Learn from experience. Constantly search for the optimum communications mix. 

Importance of Objectives

Advertising and promotional objectives are needed for several reasons, including the functions they serve in communication, planning and decision-making and measurement and evaluation.

Communication : The advertising and promotional programme must be co-coordinated within the company, inside the ad agency . Any other parties involved in the promotional campaign must also know what company hopes to accomplish through its marketing communication programme.

Planning and Decision Making : All the phases of the firm’s promotional strategy should be based on the established objectives, including budgeting, creative and media decisions as well supported programmes such as direct marketing, public relations, sales promotion or reseller support. Decision making becomes easier if the objects are meaningful.

Measurement and Evaluation of Results : The promotional planners provide measures that can be used to evaluate the effectiveness of the marketing communication programme.

Following are the Objectives :

PROMOTIONAL OBJECTIVES

COMMUNICATIONS OBJECTIVESSALES

OBJECTIVES

Advertising Strategies

Information, Dissemination/Persuasion: comparative ads attempt to get consumers to believe that the sponsoring product is better

Fear appeals: Try to motivate consumers by telling them the consequences of not using a product. Classical conditioning: A more favorable brand image can often be created among the consumer when an association to a liked object or idea is created

Humour Appeal: more and more advertisers find themselves using humor in order to compete for the consumer’s attention

Repetition: whatever specific objective is sought, repetition is critical. This is especially the case when the objective is to communicate specific information to the customer.

Celebrity Endorsements: celebrities are likely to increase the amount of attention given to an advertisement

DAGMAR

It means Defining Advertising Goals for Measuring Advertising Effectiveness. It was put forward by Russell H.Colley.Dagmar tells that advertising has to perform a particular communication task and the task has to be accomplished among a well defined audience within a specified period of time. Following are the steps,

AwarenessBrand ComprehensionConvictionAction

Concept of DAGMAR

A Communication Task : An advertising goal is a specific communication task, to be accomplished among a definite audience, in a given period of time.

A specific Task: The second importance concept of DAGMAR approach is that the advertising goal should be specific.

Measurable Task

Benchmark

Target Audience

Time Period

Written Goals

Limitations of DAGMAR

Sales Oriented Performance : DAGMAR approach is considered to be successful if the sales increase and it is considered as a failure if increase in sales is not achieved.

Partial Assessment : the DAGMAR approach assesses the impact of ad campaign in a quantitative term, it does not explain how to improve qualitative representation.

Unsuitable to Small Advertising: only large advertisers with financial stability can allocate funds to collect the information. Small firms cannot afford to do it.

Non-Comprehensive Study : it is not necessary that a consumer will go through the pre-defined steps in the response hierarchy model before deciding to buy, he may have impulsive purchaser.DAGMAR does not explain impulsive purchaser.

Practical Analysis

On........

Bajaj Pulsar is a motorcycle brand owned by Bajaj Auto in IndiaThe two wheeler was developed by the product engineering

division of Bajaj Auto in association with motorcycle designer Glynn Kerr Tokyo.

Currently there are four variants available -with engine capacities of 135 cc, 150 cc, 180 cc and 220 cc.

previously it was also offered with 200 cc DTS-i oil cooled engine, which now has been discontinued.

Pulsar is the leader in the 150 cc segment in India with a market share of 43%.

Before the introduction of the Pulsar, the Indian motorcycle market trend was towards fuel efficient, small capacity motorcycles (that formed the 80-125 cc class).

Bigger motorcycles with higher capacity virtually did not exist (except for Enfield Bullet)

In past ten years pulsar has grown tremendously from spoke rings to alloy wheels.From kick starter to self electric starter

From carburettor to fuel injection according to the demand of market and customer

Pulsar 220 is highest selling sports bike in India

The upgraded version of pulsar to 250 300 and 350 cc to be launched in collaboration with European bike company KTM

Bajaj is already exporting pulsar to Middle East Asia, Sri Lanka Nepal and with collaborative name of Kawasaki it distributes in Thailand and Malaysia

And targets the customer of china and Brazil in global market.

Bajaj has its main manufacturing unit in Pune in Maharastra. it has manufacturing units in other parts of India also

Bajaj has its authorized showrooms and factory shops with proper service center E.g. Suryoday Bajaj Vasai. Sai service borivili

Chairman & MD: Rahul Bajaj

Vice Chairman:Madhur Bajaj

Executive Director:

Sanjiv BajajTop: Rahul Bajaj

Left: Madhur Bajaj, Right: Sanjiv Bajaj

PRODUCTS

Marketing Strategies

Personal Selling: Personal selling is main source of marketing in showrooms by the employees.

Advertisements: Bajaj advertise on television media and press media regularly and is known for its advertisement in the industry.

Press Release: Press release is regular about pulsar as and when any new news or new launch in pulsar variants occurs.

Main Focus : Bajaj has its main focus on its R&D Department because of which every now and than the product gets better with quality.

Bajaj has proper R&D department because of which a brand like pulsar which is 10 years old is still strong competitor in market for other bikes

Competitors :Pulsar is known as its own competitor because it has bike from low 135 cc to high 220 cc engines so customer has wide choice to suit his/her requirement. Pulsar is the best known Brand and Quality Product in the Automobile Industry when it comes to Bikes.

Bajaj is India’s largest automobile manufacturer.

They firmly believe in providing the customer “ VALUE FOR MONEY,FOR YEARS” through there products & services.

Quality, safety & service has been given as much considerations as productivity, cost & delivery