IMC

Concept, Function and Tools

Car Market Overview

Segm ent shares Grow th rates 00-01 01-02 02-03 03-04 00-01 01-02 02-03 CAGR

Scorpio

Segment A Segment B Segment C Segment C+ Segment D UV Entry SUV SUV Total

30.6% 37.9% 10.5% 3.4% 0.1% 13.6% 4.0% 0.0% 693.5

29.5% 41.0% 9.1% 2.8% 0.8% 12.8% 4.0% 0.0% 695.5

26.5% 42.4% 10.6% 2.7% 1.7% 10.0% 0.0% 705.1

-26.1% -1.3%

-3.2% 8.6%

-8.9% 4.7% 18.3% -3.1%

32.6% -12.6% -4.6% -17.1% -17.2%

16.2% 828.7% 115.1% -5.9% -20.9% 0.1% 0.3% 57.2% 1.4%

6.2% 353.4% -7.9%

Evolved consumers
The expectations on comforts Denition of luxury Wanted thrill of an SUV, but the comforts of a car At the same time was savvy in terms of price- value equation

Competition
Saw themselves as a car vs. UV manufacturers Divided market on the basis of car segments
A,B,C,Detc.

Scorpio Launch Challenges

Unrealistic objectives
1200 vehicles a month Category leader Safari was selling 250 vehicles a month

Scorpio Communication strategy

Call itself a CAR
Connotes the comforts, luxury and imagery associated with it

Mahindra Baggage Product is Ready Looked like a tank!

Give international look & feel Keep it within the city Scorpio to dominate Mahindra
Bring up the imagery of Mahindra

Product design
The spare wheel at the bottom Seats Hand rests at the doors Music system as part of the original equipent

Result for Scorpio

Sales of more than 2500 vehicles per month One month waiting period in a highly competitive market Various awards in CAR category Ees award for advertising Created a whole new category & terminology in Indian four wheeler market

Even helped the overall growth of C segment & entry SUV

99-00 Segment A Segment B Segment C Segment C+ Segment D UV Entry SUV SUV Total 38.1% 35.4% 7.3% 3.3% 0.1% 15.1% 0.8% 0.0% 753.1 Segm ent shares 00-01 01-02 02-03 30.6% 37.9% 10.5% 3.4% 0.1% 13.6% 4.0% 0.0% 693.5 29.5% 41.0% 9.1% 2.8% 0.8% 12.8% 4.0% 0.0% 695.5 26.5% 42.4% 10.6% 2.7% 1.7% 10.0% 6.2% 0.0% 705.1 03-04 40.3% 12.2% 3.4% 2.4% 00-01 -1.3% Grow th rates 01-02 02-03 03-04 -3.2% 8.6% -8.9% 19.3% 4.7% 23.7% 18.3% 49.7% -3.1% 65.7% CAGR -4.9% 6.7% 15.5% 4.9% -2.9% 57.8% 4.1% 24.3% -26.1%

32.6% -12.6% -4.6% -17.1%

16.2% 828.7% 115.1% 84.8% 112.1% -5.9% -20.9% 39.8% 0.1% 0.3% 57.2% 37.2% 1.4% 30.2%

10.7% -17.2% 6.5% 353.4% 0.3% 918.3 -7.9%

Role of Promotion in Marketing The brands can exist only if the communicate. Great brands have gift of speech

Oered Value

Not Relevant

Relevant

Focus on Promo7on

Focus on Improving Value

Focus on Marke7ng Strategy & En7re marke7ng Mix

Focus on Oer Product, Price

Not Relevant

Relevant

Perceived Value

Marketing Communication Mix

IMC Tools
Marketing Communications Mix

Advertising
Print and broadcast ads Packaging-outer Packaging inserts Motion pictures Brochures and booklets Posters and leaets Directories Reprints of ads Billboards Display signs Point-of- purchase displays Audiovisual material Symbols and logos Videotapes

SP
Contests, games, sweepstakes, lotteries Premiums and gifts Sampling Fairs and trade shows Exhibits Demonstrations Coupons Rebates Low-interest nancing Entertainment Trade-in allowances Continuity programs Tie-ins

PR
Press kits Speeches Seminars Annual reports Charitable donations Sponsorships Publications Lobbying Identity media Company magazine events Product placements

PS
Sales presentations Sales meetings Incentive programs Samples Fairs and trade shows

DM
Catalogs Mailings Telemarketing Electronic shopping TV shopping Fax mail E-mail Voice mail

Key denitions
Advertising: paid form of non-personal presntation/ promotion
of ideas, goods or services by an identied sponsor. purchase

Need to Classify
Situation
Product/ Market

Sales Promotion: Short-term incentives to encourage trial/ Public Relations & Publicity: Promote/ protect companys
image in an indirect way buyers.

Consumer Buying Behavior

Consumer Prior Knowledge, Motivations, Information Processing ability Consumer Response Cognitive, Aective, Behavioural

Personal Selling: F2F interaction with one/more prospective Direct Marketing: Use of interactive media to communicate

Communication
Modality (sight, sound, text/ iconic, associative, persuasive, Interactive) Executional ability (Informational/ emotional)

directly or solicit direct response from specic customers and prospets

Choice Criteria of Elements of Communication Mix

Element Characteristics
Public approval Standardized Offer Dramatization Non-inrusive Repeat messages Interactive Cultivation Response driven Attention Incentive Invitation to buy Now/More High Credibility Approval, Hype Catch Ad avoiders Customized Interactive Response oriented

Cost

Measur- Image Action Credibility Targeting ability building oriented ability

Control over message

Ad.

Cadburys Temptation
Too-good-toshare

PS SP PR DM

Cadbury Temptations
Discovering masses in Cyberspace

Banner campaign

Adaptations

ATM Screen

Too Good To Share Prizes

Trip for two to Seychelles Passes to KBC, KJSS, KMKD Channel V CDs National Geographic merchandise Star News merchandise Star Movies Clapper Board frames

True Blue Hybrid Communications

Internet Banners, Microsite Television Promos New Touch Point ICICI Bank ATMs Pack Insert

A Too Good To Share Experience

Internet TVCs ATMs

Cadbury Temptations
1.25 lacs entries in two months 72,000 unique proled database Huge opportunity for cross selling for in- house brands

CTR to microsite

Bought Pack? Yes

No

Buy Pack

Pack Insert

Enter Number

Win prize

E e c ti v e n e s s

Sale Promo Advertising Personal Selling PR DM

IMC

Product/ Market Maturity (Stage of PLC)

10

Marketing Communications Decisions

Marketing Communication Mix Decisions
Classication of marketing communications tools Choice of Marketing Communications Mix

Organizing Marketing Communications

Choosing & Working with Communication Agencies

IMC
Concept

Marketing Communications Planning Decisions

Develop and design elements of campaign plan using various tools

Integrated Marketing Communications

Various Perspectives and Versions
360 degree Branding Whole Egg Holistic Communications Integrated Communications IMC

Various Denitions
Author/ Year
American Association of Advertising Agencies (4As) (1989) Don Schultz (1991)

Key Concepts
Coordination and consistency of messages and communications channels (one sight, one voice) Use of variety of communications disciplines to work in synergy based on a comprehensive plan IMC as a concept Inclusion of consumers, Prospects Behavioral Responses Nurture relationships and customer loyalty IMC as Process Protable Relationships Expanded audience scope from customers to other stakeholders Reinforced notions of consistency, coordination and behvioural response Strategic Business Process Expanded notion of Brand Communication Measurability Specied more explicitly in Multiple Markets inclusive of internal and external markets

Tom Duncan (1994) Nowak and Phelps (1994) Schultz & Schultz (1998)

3 Pillars of IMC
Audience Integration
Multiple markets

Channel Integration
Multiple Channels

IMC
Function

Result Driven
Financial Measurement (ROCI)

Strategic, Consistent, Coordinated, Measurable

11

Marketing Communications Planning

6M Framework
Market
Review of Marketing Plan: Positioning, Segments, Consumer Behavior Review of Previous Campaigns & Competitors Promotions

Mission
Analysis of Communication Process Establish communication goals and objectives

Communication Process

Money
Set tentative costs & Budget

Message Media Measure

For one or more of the tools which are part of the integrated program: Advertising, Sales Promotion, Direct Marketing, Internet Marketing, PR, Personal Selling

Evaluate results/ eectiveness Measures to control and adjust promotional strategies

SMCR Communication Model

Source/ encoding MESSAGE Encoding Decoding

SMCR
Source individual (salesperson/ hired spokesperson, company/ organization) Receivers perception of the source inuence how the communication is received Careful selection : knowledgeable/ trustworthy Source selects words, symbols, pictures, etc. to represent the message that will be delivered. This is encoding. Senders goal is to encode the message in such a way that it is understood by the audience. Encoding process leads to message information or meaning that the source hopes to convey Semiotics science of how words, gestures, signs, symbols, myths, theories acquire their meaning. Semiotics is important as consumers use products and brands as their social identities and they acquire meanings Semiotics: object, sign/ symbol, interpretant Cultural anthropologists, Social scientists

SOURCE

RECEIVER

CHANNEL

Message

Noise Feedback Response

Channel

Receiver/ Decoding

Method by which the message travel to the receiver Broadly two types: personal (salesperson/ social) and non-personal (mass media/ environments) Generally consumers/ audience Transforming senders message back into thought/ meaning Eective communication common ground. Empathize, resonate. Sound simple but dicult as the audience could be very dicult than the encoder.

Noise

Developing communication program is far more than just choosing the product feature/ attribute to emphasize. Marketers must understand how consumers perceive and interpret their messages

Response/ feedback

Unplanned distortion. Extraneous factors that interfere with the reception of the message. Lack of common ground Receivers set of reactions.

12

Analyzing the receiver

Communication is passing on information. Exchange of ideas or establishing commonness of thought between a sender and a receiver. Complex process: success depends on the message, the audiences interpretation and the environment in which it is received.
Target audience: masses to individuals In mass communications, marketers do not have opportunity to clarify or explain the message and hence consumer response process must be understood well. Most important aspects : response process

Cognitive processing models

Traditional response hierarchy models Each stage of the response hierarchy is a dependable variable that must be attained and may serve as an objective of the communication process Potential buyers may be at dierent stages in the hierarchy Useful for intermediate measures of communication eectiveness Alternative Response hierarchy- michael ray Standard learning model: learn, feel, do; Dissonance/ attribution model: do,feel, learn; low- involvement model: learn, do, feel It is important for planners to examine communication situation and determine which type of response process is most likely to occur Relationship between controllable factors (source/ message) and the outcome variables (attention, comprehension, liking, intent) Types of cognitive responses evoked by ad, attitude towards the ad and the brand and purchase intention

Road to a sale
Response'Stage' AIDA'Model' HoE'model' Other'Models'

How Communications Works

Cognitive)Stage) (Thinking))

Awareness)

Awareness))))))))))))) Knowledge)

Awareness)

Affective)Response) (Liking))

Interest) ) ) Desire) )))))))))))))))) ))))))))))))) Action)

Liking) ) ) Preference) ) ) Purchase)

Image)Matching) ) ) Fact)Matching)) ) ) Transaction)FollowF through)

Behavioral/)Conative) Stage)(Acting))

Communication Response Hierarchy

Unaware Awareness Knowledge Liking Preference Conviction Purchase Behavioural Stage one element of the Aective Stage Cognitive Stage

3 Basic Communication Tasks

Learn
Create awareness and basic Knowledge of the brand

Communication Domain

Feel
Factors other than communication too play an important role

Develop attitudes and images about brands

Communication is just process

Do

Develop action..Purchase

13

Alternative Response Hierarchies

High Involvement Learning Model
Model: Learn-Feel-Do Cognitive High Standard Dierentiation Learning Aective Model Conative

Low Involvement Low-involvement Model

Model: Learn-Do-Feel

Variables in Communication Decision Making

Independent /Dependent Variables
Message Exposure Attention

Source

Message

Channel/ Media

Receiver

Dissonance/ Attribution Model Low Dierentiation

Model: Do-Feel-Learn Conative Aective Dissonance/ Cognitive

Cognitive Conative Aective

Comprehension

Attribution Model

Low Involvement Hierarchy

Yielding/ Favorable Attitudes

14