Professional Documents
Culture Documents
- In addition to:
Developing a good product.
Pricing it attractively.
Making it accessible to target customer.
Companies need to communicate with:
Present/ Potential customer.
Retailer/ Distributor/ Suppliers.
Other Stakeholders.
General Public.
- For this, companies need to determine:
What to say?
Whom to say?
How often to say?
- To communicate effectively, marketers create/ use the marketing communication mix/
promotion mix.
- Promotion mix made up of:
o Advertising:
Paid form of non-personal presentation & promotion of ideas/ goods/
services by an identified sponsor.
o Sales Promotion:
Variety of short term incentives to encourage trial/ purchase of product/
service.
o Public Relations & Publicity.
Variety of programs designed to promote/ protect company’s image/
individual product.
o Personal Selling:
Face to face interaction with one/ more prospective purchasers for the
purpose of making presentation/ answering questions/ procuring order.
o Direct Marketing:
Use of mail/ phone/ fax/ e-mail/ other non-personal contact tools to
communicate directly with/ solicit direct response from specific
customer & prospectors.
Communication Process:
• To communicate effectively, market need to understand the fundamental elements
underlying effective communication.
• Elements could be:
Media
Noise
Feedback Response
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Deciders.
Influencers.
Favourable Attitude
Low High
Familiarity Familiarity
Unfaurable Attitude
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• However, purchase behaviour is the end result of a process of constant decision
making.
• Task pf communication is to move target audiences into higher states / limits of
readiness to buy.
Liking.
Conviction.
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• Advertised through word of mouth.
• It was very successful.
- Knowledge:
o Target audience may have company/product awareness, but not much use.
o Task is then to select product knowledge as the communication objective.
Example: Hyundai Santro.
• Compared Santro/ Zen/ Indica for its promotion.
- Liking:
o If target audience knows about product, we need to know how he feels about it.
o If feeling is negative/ unfamiliar, marketer has to find out reasons for the
feelings.
o Then communication objective is to enhance/ convert feeling to a positive/
favourable feeling.
- Preference:
o Target audience may like the product, but may not prefer it to others/ over
others.
o Hence, communication objective is to build constant preference.
o Could be done by promoting differentiators.
Example: Heinze Tomato Ketchup.
• Smily on a plate compared with other ketchup differentiating
with thickness/ colour/ price.
• “Ziyada Ghada, Ziyada Laal, sirf 48 rupaye main”.
- Conviction:
o Target audience may prefer a product, but may not develop a conviction about
buying it.
o Communicator’s task is to build conviction among interested audience.
Example: “Yehi Hai Right Choice Baby, Aha”.
- Purchase:
o Some members of target audience may have conviction but may not purchase
due to various reasons such as:
Need for more information.
Plan to buy later.
o Communicator’s task is to lead audiences to take the final step.
Could be through:
Limited trial period.
Price benefit for limited period.
Limited additional benefit.
Example: “Britannia Khao, World Cup Jao”.
Designing Communication:
- Once desired consumer response is clear, the communicator need to develop/ design an
effective message.
- Ideal message should be as per AIDA model.
Message should gain attention (A).
It should hold interest (I).
Arouse desire (D).
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Elicit Action (A).
- However, in practice, few messages take consumers all the way from attention to
action. But the AIDA model suggests desirable qualities of any communication.
- To design the message, communicator needs to decide:
What to say? (Message Content).
How to say it logically? (Message Structure).
How to say it symbolically? (Message Format).
Who should say it? (Message Source).
- Message Content:
o Communicator has to determine what to say to target audience to get desired
response.
o Different customer group may perceive a product in different ways. Hence, the
challenge is to create message that will get the attention of specific customer
groups.
o To determine best message content, communicator may search for:
Appeal.
Theme.
Idea.
Unique Selling Proposition.
o This amounts to formulating:
Benefit.
Motivation.
Identification.
Reason.
So that audience thinks about/ investigates product.
Emotional Appeal:
• Stirs up positive/ negative emotions that would motivate
purchase.
• Search for right ESP (Emotional Selling Proposition).
• Product may be similar to competition but may have unique
association for consumer.
• Negative appeals such as fear/ guilt/ shame may also be used.
Example: Tooth Brush.
• Positive appeal could be through humour/ love/ pride/ joy.
Example:
• Chloromint (Homour).
• Bajaj (Pride).
Moral Appeal:
• Directed to audience’s sense of what is right & proper.
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o Example: CRY Cards.
• Ideal for promotion of social causes.
o Example: Pulse Polio campaign by Amitabh
Bachchan & Hema Malini.
• Message should ideally be moderately discrepant with audiences
belief. This is challenging task.
o If it is same as audience belief, it would only re-enforce
belief.
o If it is too discrepant, message would be counter argued
and disbelieved.
o Example:
Mountain Dew: Let’s do something interesting.
Bournvita : Its milk that makes healthy, but
bournvita advertises as if it helps a child grow
healthier.
- Message Structure:
o Effectiveness of message depends on contact as well as structure.
o Decision in message structure are:
Stimulus Ambiguity:
• Does the message draw an explicit conclusion for the audience?
• Does the message allow the audience to come to its own
conclusions?
• Conclusion drawing may not be a good idea if:
o Communication is perceived as being untrustworthy.
o Issue is simple (Audience may feel annoyed).
o Issue is highly personal.
Sequence/ Order:
• Sequence of communication is important.
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• If audience is captive (TV), the strongest argument may come at
the end.
• If audience is not captive (Newspaper), the strongest argument
should come first (Headline) to establish attention & interest.
o Example:
“Dhara Mustard Oil”- Jalebi Ad.
“Dare to think beyond IIM”- IIPM Ad.
- Message Format:
o Communicator must develop a strong format for the message.
o Decision on format could be:
Print Advertisement:
• Headline. Newspaper Name
• Copy.
• Visual/ Illustrative. Ear Panels
• Colour.
• Tail Piece/ Sign Off.
Eight Columns
Radio Advertisement:
• Choice of words.
• Voice durability. Total Area = 400 sq cms.
Speech Rate.
50 Cms. Front Page
Rhythm. Solas
Pitch. Black & White Ads
Articulation. Have different shades
Of black toned.
• Vocalization.
Pauses.
Signs.
Yawns.
Television/ Person:
• All as in radio advertisement.
• Body Language.
Facial expressions.
Gestures.
Dress.
Posture.
Main Style.
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Size.
Shape.
Packaging Readability.
- Message Source:
o Messages delivered by attractive/ popular sources achieve higher attention/
recall.
o Communicator may use a celebrity as spokes-person.
o Spokes-person is more effective when:
They personify a key product attribute.
• Example: Tooth paste – Dentist may be shown.
They are credible.
o If Audience has:
Positive attitude towards source/ spokes-person, and
Positive attitude towards message.
Then a state of congruity exists. This makes congruity more
effective.
Example:
• Dharmendra for Rajdoot.
• Vishwanathan Anand for NIIT.
o If congruity does not exist, then audience will move towards increasing the
congruity between the two opposite evaluations.
o Hence, popular spokesperson may be utilized to reduce negative attitude
towards message/ product.
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o Personal communication channel involve two/ more persons communicating
directly with each other.
o They may communicate:
Face to face.
Person to audience.
Over telephone.
Through mail.
o Personal communication channel derive their effectiveness through the
opportunity for:
Customized.
Feed back.
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• Electronic Media:
Audio/ Video Tapes/ CD’s.
• Display Media:
Hoardings.
Banners.
Kiosks (Small Hoardings- on the divider).
Posters.
Gantry (Hoardings across the road).
- Affordable Method:
o Based on what companies think they can afford.
o Ignores role of promotion as an investment.
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o May get pro-rated as per sales volume/ market share.
- Objective-And-Task Method:
o Budget decided by:
Defining specific objectives of promotion/ communication.
Determining tasks that are to be performed to fulfill objectives.
Estimating cost of performing each task.
Summing up costs to create total budget.
o Example: Dove Soap.
Sales target : 150 crores.
Market share : 5%.
Target audience : 3 crores.
Awareness objective : 60% of target audience (1.8 crores).
Induced trial : 60 Lakhs.
Adoption : 25% of trial (15 Lakhs).
• Sales : 15*2 = 30 Lakhs per month.
• Price per unit : 40/-.
• Sales per year : 40 * 30 * 12 = 144 crores.
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Direct Marketing.
- Companies search for high communication efficiency by substituting one tool for
another.
- Each communication tool has its own characteristic & cost.
- Factors/ Characteristics that influence communicators choice of promotion tools are:
o Advertising:
Distinctive characteristic of advertising are:
• Public Presentation:
o Highly public mode of communication.
o Public nature gives product some legitimacy & suggests a
standardised offering.
o Since many people receive same message, buyers know
that their motive for buying would be publicly
understood.
• Pervasiveness:
o It is a pervasive medium & permits seller to repeat a
message many times.
o Buyer can compare messages to competitors.
o Large scale advertising suggests positive things about
seller’s size/ power/ success.
• Amplified Expressions:
o Advertising is impersonal. Audience may not feel
obligated to pay attention or respond.
o It can only carry out a monologue with the audience, not
a dialogue.
o Hence, not as compelling as a sales representative.
o Sales Promotion:
Sales promotion tools are highly diverse in nature.
• Example:
Contests.
Gifts on purchase.
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Price rebates.
Dramatization:
• Like advertisement, PR can also be used to dramatise a
company/ product.
o Personal Selling:
Personal selling helps in building up buyers:
• Preference.
• Conviction.
• Action.
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o Each party is able to observe the other & make
immediate adjustments.
• Cultivation:
o Personal interaction permits relations building of a long
term nature.
• Response:
o Personal selling creates a greater need in buyer to attend/
respond to seller’s offerings.
o Direct Marketing:
Characteristic of direct marketing are:
• Non-Public : Message normally addressed to special person.
• Customized : Message can be tailor made.
• Up-to-Date : Message can be prepared quickly for delivery.
• Interactive : Message can be altered based on response.
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Direct marketing.
Advertising.
PR & Publicity.
o Awareness:
Advertising and publicity plays most important role.
o Customer comprehension:
Influenced primarily by advertising & personal selling.
o Ordering/ closing sale:
Influenced by personal selling & sales promotion.
o Reordering:
Influenced by personal selling & sales promotion and to some extent by
reminder advertising.
Sales Promotion
Personal Selling
o Introduction:
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Advertising & publicity has maximum cost effectiveness.
Followed by personal selling to gain distribution coverage.
Followed by sales promotion to induce trial.
o Growth:
All tools are toned down because demand has its own momentum
through word of mouth.
o Maturity:
Sales promotion grows in importance.
Followed by advertising & personal selling.
o Decline:
Sales promotion is most important.
Advertising & publicity is reduced.
Personal selling is reduced considerably.
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- In most organization with multiple product line/ brands, different people handle
different products. Customers segment also vary from product to product.
- Given this background, many companies rely on primarily on one/ two promotion tools
to achieve their communication objectives.
- Further, separate product/ brand managers may act as per their own analysis resulting
in multiple communications going out from same organization.
- This may be confusing to the end users/ distribution network.
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