PM Chapter 14 Integrated Marketing Communications Redwan - SL 25 (1)

8/18/2019 PM Chapter 14 Integrated Marketing Communications Redwan - SL 25 (1)

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Integrated MarketingCommunications

Principles of Marketing

Chapter 14

Redwan Salam 1


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Chapter Content

• Marketing Communication• Integrated Marketing Communication(IMC)

• Information Requirement of PotentialBuyers

• Nature of the O ering• arget Market Characteristics• Communications Process• y!es of Communication Channel• "etting otal Promotion Budget and Mi#

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The Marketing Communication

• Marketing Communication is the!rocess $y %hich information a$out anorgani&ation and its o erings isdisseminated to selected markets'

• It is also called Promotional Mix thatconsists of the s!eci c $lend ofad ertising* sales !romotion* !u$licrelations* !ersonal selling* and direct+marketing tools that the com!any usesto communicate %ith their customers and$uild customer relationshi!s'

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• Marketing Communication isnecessary to inform $uyers of thefollo%ing,

he a aila$ility of an o ering $oth for

the ne% and e#isting !roducts he unique features* $ene ts and$rand information of the o ering he %here and ho% of o$taining andusing the o ering

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The Marketing Communication


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Communications (IMC)Integrated Marketing Communication

(IMC) is the conce!t under %hich acom!any carefully integrates andcoordinates its many communication

channels (more than one) to deli er aclear* consistent* and con incing messagea$out the organi&ation and its !roducts'

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Communications (IMC)

Advertisement is any !aid form of non+!ersonal communication a$out an organi&ation*goods* ser ices or idea $y an identi eds!onsor '• Product Advertisement -d ertisement

that focus on selling a good or ser ice' heforms include Informational* Com!etiti e andReminder ad ertisement'

• Institutional Advertisement -d ertisement designed to $uild good%ill oran image for an organi&ation* rather than!romoting a s!eci c good or ser ice'

• Ma.or -d ertisement sources,Print Media

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Communications (IMC)Sales promotion is short+term incenti es toencourage the !urchase or sale of a!roduct1ser ice for a certain time* !lace ore ent de!ending on com!any o$.ecti e'• "ales !romotion is more in2uential tool

com!aring to ad ertisement* and com!anyo ers sales !romotion to achie e a certainsales goal'

• 0here -d ertisement says 3$uy our !roduct4 * "ales !romotion says 3$uy it no%4 'Consumer promotion 5reesam!le1Cou!ons* 6ift %ith !urchase* POP!romotion (Point of Purchase)* Contest /6ames* Price !remium* 5airs / rade "ho%s7


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Communications (IMC)Pu!lic Relations in ol es $uilding goodrelationshi!s %ith the com!any8s arious !u$lics(stakeholders) $y o$taining fa ora$le !u$licity*$uilding u! a good cor!orate image* andhandling or heading o unfa ora$le rumors*

stories / e ents'• hrough !u$lic relations acti ities* com!anytries to enhance the !ositi e as!ects and minimi&e negati e factors related to !roducts

and organi&ation'• Ma.or Pu$lic Relation tools,

Press relations (Meet the !ress)Pu$lications and Com!any %e$ !agesInternal or em!loyee communication 8


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Communications (IMC)Personal selling is the t%o+%ay 2o% ofcommunication $et%een a $uyer and a seller* designed to in2uence a !erson8s or grou!;s!urchase decision'• Ma.or !ersonal selling tools are 7oor to door

isiting* "ales !resentations* Partici!ation ine#hi$ition and trade sho%s etc'• 0ith !ersonal selling* the $uyer feels a

greater need to listen and res!ond e en if it is3No* thank


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Communications (IMC)#

$Promotion Mix Strategies%

Producer

Retailers and&holesalers

Consumers

P'S strateg

Retailers and&holesalers

Consumers

P'** strateg

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IMC # Promotion Mix Strategies

Push strateg is directing the

!romotional mi# to channel mem$ers toencourage them to order* stock and salemore !roducts'•

=sed for $usiness to $usiness (B>B)• rade !artners and channel mem$ers getthe $ene ts of this strategy

Pull strateg is directing the !romotionalmi# to the ultimate consumers toencourage them to ask the retailer for the!roducts'

• =sed for $usiness to consumer (B>C) 11


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Setting the IMC Mix

-d ertising

Personal"elling

"alesPromotion

Pu$licRelations

7irectMarketing

Reach Many Buyers* Re!eatMessage Many imes*Im!ersonal* 9#!ensi e

Personal Interaction*Relationshi! Building* Most

9#!ensi e Promo ool0ide -ssortment of ools*Re%ards ?uick Res!onse*

9 orts "hort+:i ed

@ery Belie a$le* 7ramati&e aCom!any or Product*=nderutili&ed

Non!u$lic* Immediate*Customi&ed* Interacti e12


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# + +TT*A!ove The *ine (AT*)

• - : communications use media that are$roadcast and !u$lished to massaudiences'

• - : communications can $e used toeither $uild $rand a%areness or dri esales through s!eci c o ers(!romotions)'

• - : !romotions are also diAcult tomeasure %ell'

,elow The *ine (,T*)• B : communication use media that are

more niche focused13


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# + +TT*,elow The *ine (,T*)• B : communications can $e used to either

$uild $rand a%areness or dri e sales throughs!eci c o ers (!romotions)'

• B : interaction gi es the marketer the a$ilityto tailor their messaging in a more !ersonalmanner to the audience'

• B : !romotions are highly measura$le* gi ingmarketers alua$le insights into their returnon in estment' hese insights can then $eused to inform the ne#t B : communication to

the audience and tailor the messaging $ased14


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# + +TT*

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"eveloping an IMC Mix

In-ormation Re.uirement o- Potential

,u ers• -naly&e the relati e alue of thecommunication tools used at arious

stages in the !urchase+decision !rocess'• -d ertising creates awareness for the!roduct'

• Personal selling ("ales !eo!le) !ro idein/depth in-ormation $y ans%eringfrequently asking questions of thecustomers'

• "ales !romotion like $rochures* and17


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"eveloping an IMC Mix

Target Market Characteristics• Advertising is e ecti e for

communicating an o ering to a massmarket that is geogra!hically scattered'

• Personal Selling is useful %hen a smallnum$er of $uyers li e in close !ro#imityand !urchase large quantities of !roduct'

•"irect Marketing (e'g' Internet* ele!hone) can also $e used to reach ageogra!hically dis!ersed target market'

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Communications Process3lements o- Communication Process

Message

MediaSender 3ncoding

"ecoding

Receiver

0oise

Response

4eed!ack

Sender’sField of

Receiver’sField20


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Communications Process

• Sender is the !arty sending themessage to another !arty'

Example: Marketer1seller likeBanglalink'

• 3ncoding is the !rocess of !utting thethoughts or information into a sym$olicform' -dd agency assem$les %ords andillustrations into an ad ertisement that%ill con ey the intended message'

Example: Bito!i* -siatic* are creating

commercials for their clients like* Ro$i21


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• Message is the set of language*information or sym$ols the sendertransmits'

Example: Product or !romotionalmessages from Banglalink'

• Media is the communications channelsthrough %hich the message mo es fromsender to recei er'

Example: ele ision channel* Radiostation* Press* etc'

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• "ecoding is the !rocess $y %hich therecei er assigns or con erts a meaning tothe sym$oli&ed message sent $y themarketers' It de!ends on indi idual

customer8s !erce!tions andunderstanding !rocess'

• Receiver is the !arty recei ing themessages sent $y another !arty'

Example: Indi idual1$usinesscustomers'

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C i i P


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• Response is the reaction of the recei erafter $eing e#!osed to the message(change of attitudes of the customers)'

•4eed!ack is !art of the recei er8sres!onse communicated $ack to sender'

• 0oise is the un!lanned $arriers 1

distortion during the communication!rocess* %hich results in the recei er8sgetting a di erent message than the one

the sender sent' 24


T C i i Ch l


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T pes o- Communication Channel

Personal communication is the channelthrough %hich t%o or more !eo!lecommunicate directly %ith each other*including -ace to -ace * o er tele!hone or

through the mail etc'• "ome !ersonal communication channelare controlled directly $y the com!anylike sales !ersonnel (7irect sales force) '

• here are some Personal communicationthat are not directly controlled $y thecom!any* &ord/o-/mouth in5uence '

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T C i i Ch l


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0on/personal communication channelare the media that carry messages%ithout !ersonal contact or feed$ack 6• hey include ma.or media (Ne%s!a!er*

ele ision* Radio* Bill$oard)*atmos!heres (:ogistics or Physicale idences)* and e ents ("!onsorshi!s*!u$lic relations) that a ect the $uyersdirectly'

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T pes o- Communication Channel


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,udget and MixDo% does a com!any decide on its

!romotion $udgetE• - orda$le $udget method

• Percentage+of+sales method• Com!etiti e+!arity method

•O$.ecti e+and+task method

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,udget and MixA2orda!le ,udget method refers to

setting the !romotional $udget at the le elmanagement thinks the com!any cana ord'

• "mall $usiness often use this method*they start %ith total re enue* deducto!erating e#!ense and ca!ital outlaysand then de ote some !ortion ofremaining funds to ad ertising and!romotion'

• Com!any allocate a certain !romotional$udget from their o!erating !ro t' 28

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Competitive/Parit method refers to settingthe !romotional $udget $ased oncom!etitors8 s!ending for communication'

hey collect information a$out com!etitors8ad ertising or get industry estimate and settheir $udget'• his a!!roach is used $y the com!anies

%here there is strong com!etition like 5ast

Percentage/o-/Sales method refers tosetting the !romotional $udget at a certain!ercentage of !re ious year sales or

forecasted sales or as a !ercentage of the unitsales !rice'

his a!!roach is mostly used $y dura$le+goods manufacturers (e'g' Dome a!!liancesand electronics marketers)'

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1!7ective/and/Task method refers tosetting !romotional $udget $y,• 7etermining the s!eci c !romotional

o$.ecti es'• Identifying the tasks that must $e

!erformed to achie e these o$.ecti es

and• 9stimating the cost of !erforming these

tasks'

Creating a%areness* gi ing reminder orincreasing sales can $e the !ossi$leo$.ecti es for communication'30"

14C APT3R 89 30

Documents

PM Chapter 14 Integrated Marketing Communications Redwan - SL 25 (1)