module 2 (2)

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Amity School of Business

Identify target audience

Determine objectives

Design communications

Select channelsEstablish budgetDecide on media mix

Measure results Manage IMC

Steps in Developing Effective Communications

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• Step 1: Identifying the Target Audience– Affects decisions related to what, how, when, and

where message will be said, as well as who will say it

• Step 2: Determining Communication Objectives– Objectives may be set to move buyers through

the six readiness stages


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• Step 3: Designing a Message– AIDA framework guides message design– Message content

• Rational • Emotional appeals: fear, humor, guilt, shame, love• Moral appeals

• Designing a Message– Message structure

• Draw a conclusion?• One-sided or two-sided?• Strongest arguments

presented first or last?

– Message format Novelty, contrast, and more


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• Step 4: Choosing Media– Personal communication channels

• Includes face-to-face, phone, mail, and Internet chat communications

• Word-of-mouth influence is often critical• Buzz marketing cultivates opinion leaders

– Nonpersonal communication channels• Includes media, atmosphere, and events

• Step 5: Selecting the Message Source– Highly credible sources are more persuasive– A poor choice of spokesperson can tarnish a brand


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• Setting the Total Promotional Budget– Affordability Method

• Budget is set at a level that a company can afford

– Percentage-of-Sales Method• Past or forecasted sales may

be used– Competitive-Parity Method

• Budget matches competitors’ outlays

Setting the Promotional Budget and Mix


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• Setting the Total Promotional Budget– Objective-and-Task Method

• Specific objectives are defined

• Tasks required to achieve objectives are determined

• Costs of performing tasks are estimated, then summed to create the promotional budget



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• Setting the Overall Promotion Mix– Determined by the nature of each promotional

tool and the selected promotion mix strategy


Revlon emphasizes advertising while Avon emphasizes personal selling


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Factors in Setting the Mix

Product Life-Cycle Stage

Buyer-Readiness Stage

Type of Product Market

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A comparison of push and pull promotional strategies

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Amity School of BusinessSetting the Promotional

Budget and Mix

• Reaches large, geographically dispersed audiences, often with high frequency

• Low cost per exposure, though overall costs are high

• Consumers perceive advertised goods as more legitimate

• Dramatizes company/brand• Builds brand image; may

stimulate short-term sales• Impersonal; one-way

communication

AdvertisingPersonal SellingSales PromotionPublic RelationsDirect Marketing

Nature of Each Promotional Tool


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Budget and Mix

• Most effective tool for building buyers’ preferences, convictions, and actions

• Personal interaction allows for feedback and adjustments

• Relationship-oriented• Buyers are more attentive• Sales force represents a long-

term commitment• Most expensive of the

promotional tools




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Budget and Mix

• May be targeted at the trade or ultimate consumer

• Makes use of a variety of formats: premiums, coupons, contests, etc.

• Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales

• Stimulates quick response• Short-lived• Not effective at building long-

term brand preferences




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Budget and Mix

• Highly credible• Many forms: news stories, news

features, events and sponsorships, etc.

• Reaches many prospects missed via other forms of promotion

• Dramatizes company or benefits• Often the most underused

element in the promotional mix

AdvertisingAdvertisingPersonal SellingPersonal SellingSales PromotionSales PromotionPublic RelationsPublic RelationsDirect MarketingDirect Marketing

Nature of Each Nature of Each Promotional ToolPromotional Tool


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Budget and Mix

• Many forms: Telephone marketing, direct mail, online marketing, etc.

• Four characteristics:– Nonpublic– Immediate– Customized– Interactive

• Well-suited to highly targeted marketing efforts

AdvertisingAdvertisingPersonal SellingPersonal SellingSales PromotionSales PromotionPublic RelationsPublic RelationsDirect MarketingDirect Marketing

Nature of Each Nature of Each Promotional ToolPromotional Tool


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• Step 6: Collecting Feedback– Recognition, recall, and behavioral measures

are assessed– May suggest changes in product/promotion


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Corporate communications Marketing communications

Aim building company's reputation brand building

Scope of communication

Company / Enterprise product/produce or service provided by the company

Target Audience multiple stakeholders customer

Mode multiple channels defined set of channels

Creativity less room for creativity more room for creativity

Consistency With corporate identity, image, philosophy; product & brand attributes

With product and brand attributes

Corporate Communication V/S Marketing Communications

Documents

module 2 (2)