Integrated Marketing

Communications
15
1
Session Objectives
1. To introduce the concept of integrated marketing
communication and the various elements of the
promotional mix.
2. To examine various models of the communication
process.
3. To understand the model for developing effective
communications.
4. To review decisions on the marketing communications
mix.

Product
decisions



Pricing
decisions



Channel-of-
distribution
decisions

Product
decisions



Pricing
decisions



Channel-of-
distribution
decisions

Opportunity
analysis



Competitive
analysis



Target
marketing
Identifying
markets
Market
segmentation
Selecting a
target market
Positioning
through
marketing
strategies
Promotional
decisions
Advertising
Direct
marketing
Interactive
marketing
Sales
promotion
Publicity
and public
relations
Personal
selling
Ultimate
consumer
Consumers
Businesses
Promotion
to final
buyer

Opportunity
analysis



Competitive
analysis



Target
marketing
Identifying
markets
Market
segmentation
Selecting a
target market
Positioning
through
marketing
strategies
Promotional
decisions
Advertising
Direct
marketing
Interactive
marketing
Sales
promotion
Publicity
and public
relations
Personal
selling
Ultimate
consumer
Consumers
Businesses
Marketing and Promotions Process Model
Resellers
Promotion
to trade
Internet/
Interactive
Purchase
Integrated Marketing Communication
o The coordination and integration of all marketing
communication tools, avenues and sources within
a company into a seamless program which
maximizes the impact on consumers and other
end-users at a minimal cost.
o IMC includes all business-to-business, channel,
customer, external communications and internal
communications
3
Traditional compensation Performance-based compensation Traditional compensation Performance-based compensation
Media advertising Multiple forms of communication
Mass media Specialized media
Manufacturer dominance Retailer dominance
General focus Data-based marketing
Low agency accountability Greater agency accountability
Limited Internet availability Widespread Internet availability
Media advertising Multiple forms of communication
Mass media Specialized media
Manufacturer dominance Retailer dominance
General focus Data-based marketing
Low agency accountability Greater agency accountability
Reasons for the Growing Importance of IMC
1 - 4
From Toward
Basic Elements of the Promotion Mix
Paid form of non-personal communication by an identifiable
sponsor that attempts to persuade
Advertising
Marketing activities that provide value to stimulate immediate
sales either to customers or to channels
Sales Promotion
Activities to create brand related interactions with customers
Events and Experiences
Programmes directed externally or internally to project , enhance
or protect company and/or brand image
Public Relations and
Publicity
Use of mail, telephone, Internet to elicit response from suspects,
prospects or customers
Direct Marketing
Online activities or programmes for customer engagement
Interactive Marketing
People-to-people communication to share experiences
Word of Mouth Marketing
Person to person communication between a seller and buyer
Personal Selling
5
Advertising Platforms
Press
Newspapers
Magazines
Broadcast
Television
Radio
Cinema
Placement
Out of
Home
Hoardings
Glow signs
Digital
Kiosks
Street
furniture
Wall
paintings
Point of
Purchase
Posters
Leaflets
Danglers
End Aisle
Displays
6
Television
7

o High reach
o High frequency potential
o Low cost per contact
o Creative opportunities
o High intrusion value
o Segmentation possibilities
Clutter
Channel surfing during
commercials
Short amount of copy
High cost per ad
Low recall due to clutter
Advantages Disadvantages
Newspapers
8
o Priority to local ads
o Coupons and special
response ads
o High credibility
o Strong audience interest
o Longer copy
o High flexibility
o Cumulative volume
discounts
Clutter
Short time span
Poor quality reproduction
Limited audience
Poor national buying
procedures
Advantages Disadvantages
Magazines
9
o High segmentation
o High color quality
o Long life
o Direct response techniques
o Read during leisure
o Longer attention to ads
Long lead time
Little flexibility
High cost
Clutter
Declining readership
Advantages Disadvantages
Print Ad Components
1
0
Copy
Headline
Signature
Picture
Subhead
11
Outdoor
o Large ads
o Select geographic areas
o Accessible for local ads
o Low cost per impression
o Broad reach
o High frequency
Legal limitations
Short-exposure time
Brief message
Limited segmentation
Cluttered travel routes
Advantages Disadvantages
Radio
12
o Low cost per spot
o Low production cost
o Use of music
o High segmentation
potential
o Flexibility in making new
ads
o Ability to modify ads
quickly and locally
o DJ intimacy
o Mobility
Short exposure time
Low attention
Poor national audience
capability
Target duplication in many
areas
Advantages Disadvantages
Internet
13
o High creativity
o Short lead time to change
ads
o Simplicity of segmentation
o High audience interest
o Easy to directly measure
impact
Clutter
Difficult to buy ad space
Reach only computer users
Low intrusion value
Hard to retain interest of
surfers
Advantages Disadvantages
Alternative Media
o Point of Purchase
Leaflets and brochures
Signboards
Crowners
o Others
Ads on carry-home bags
Ads on clothing and caps
Ads on movie trailers
Yellow pages
Video replay and signage at sporting events
Ads on walls in airports, subway, etc.
Guerilla marketing
Product placements
14
Sales Promotion Tools
Consumer Oriented
Coupons
Samples
Premiums
Contests/Sweepstakes
Refunds/Rebates
Bonus Packs
Loyalty Programmes
Events
Trade Oriented
Trade Allowances
Point of Purchase
Training Programmes
Trade Shows
Cooperative Advertising
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Events and Experiences
Events and
Experiences
Entertainm
ent
Festivals
Arts
Causes
Factory
Tours
Street
Activities
Sports
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Public Relation and Publicity Tools
Press Kits Speeches Seminars
Annual
Reports
Lobbying
Company
Magazine
Charitable
Donations
Community
Relations
Publications
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Direct Marketing
Direct
Marketing
Direct Mail
Direct
response
advertising
Telemarketi
ng
Catalogue
Direct
Response
Television
Internet
TV
Shopping
18
Use of the Internet in IMC
The Internet
Educates or
informs
customers
Obtains customer
database
information
A persuasive
advertising
medium
Communicates and
interacts with buyers
Provides customer
service and support
A sales tool or an
actual sales
vehicle
Builds and
maintains customer
relationships
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Selecting the Right Tool
1 - 20
Response Hierarchy Models
21
Developing Effective Communications
Manage Integrated Marketing Communications
Measure Results
Decide Media Mix
Establish the Communication Budget
Select the Communication Channels
Design the Communications
Determine the Communication Objectives
Identify Target Audience
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Target Audience
oPotential buyers
oCurrent users
oDeciders
oInfluencers
oSegmentation done mainly on behavioural in
terms of usage and loyalty.
oDecision on what to say, how, when, where and to
whom
23
Communication Objectives
oCategory Need
Mainly for new products
oBrand Awareness
Recall is more important than recognition
oBrand Attitude
Perceived ability to overcome a problem
oBrand Purchase Intention
Force action

24
Design the Communication
Message Strategy
oStrengthen brand positioning
oEstablish POD and POP
oRewards
Rational
Sensory
Social
Ego satisfaction
Creative Strategy
o Informational appeal
Factual
Slice of Life
Demonstration
Comparative
o Transformational appeal
Fear
Humour
Animation
Sex
Music
Fantasy
25
Use of Celebrities
Sportspersons
Film Personalities
CEOs
TV personalities
Supermodels
Lux and Miss India
FRED
objectives
Familiarity
Relevance
Esteem
Different
26
Select the Communication Channel
Personal
Advocate
Expert
Social
Non-personal
Advertising
Sales
Promotion
Events and
Experiences
Public
Relations
27
Which route should marketing communication follow?
Setting the Budget
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Highly short term
Affordable
Method
Treats advertising as an operating expenses
Advantages and disadvantages
Percentage
of Sales
Advertising seen as an investment
Long term approach taking carryover effect of
advertising
Payout Plan
Offensive or defensive
Dominate
New or existing
Competitive
Budgeting
Objective and Task Method
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Establish market share goal
Communication should attract 8% of 50 million potential users i.e. 4
million
Determine reach
80% of target market i.e. 40 million
Determine trial
25% of aware prospects i.e. 10million. Assuming 40% of trials to
convert to loyalty 4 million target will be achieved
Determine exposure
40 per 1% of population will bring 25% trial rate
Determine GRP to be purchased
Reach multiplied by exposure i.e. 3200
Money The Advertising Budget
Higher in the introduction and growth
stage
Stage in the
Product Life Cycle
Players with lower market shares tend
to spend more
Market Share and
Consumer Base
Higher the clutter, higher the need to
spend
Competition and
Clutter
Higher for informative and persuasive
Advertising
Frequency
Depends on need for differentiation
Product
Substitutability
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Communication Mix
Pervasiveness
Amplified expressiveness
Control
Advertising
Attention getting
Incentive
Invitation for trial
Sales Promotion
High credibility
Ability to reach hard to find buyers
Dramatisation
Public Relations and
Publicity
Relevance
Engaging
Implicit
Events and
Experiences
Customised
Up-to-date
Interactive
Direct and
Interactive Marketing
Influential
Personal
Timely
Word of Mouth
Marketing
Personal interaction
Cultivation
Response
Personal Selling
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Factors for Communication Mix
Type of Product Market
Consumer Soft
Consumer Durables
Services
Business
32
Measuring Communication Results
33
Participants in the IMC Process
Marketing
communications
specialist organizations
Media organizations
Advertiser (Client)
Advertising agency
Collateral services
Direct-
response
agencies
Sales
promotion
agencies
Interactive
agencies
Public
relations
firms
1 - 34
The Five Ms of Communication
1 - 35
Sales Oriented Objectives
o In some situations like
direct marketing and retail
advertising sales as the
measure of effectiveness is
perfect.
o Agencies are made more
accountable.
o Advertising always has a
carryover effect.
1 - 36
Sales is a
function of:
Advertising and Sales
Promotion
Competition
Product Quality
Distribution
Technology
Price
The Economy
Mission - Setting the Objectives
o An advertising objective is a specific communication
task and achievement level to be accomplished with a
specific audience in a specified period of time
Informative
To create brand awareness
and knowledge
Persuasive
To create brand preference.
Some times comparative
advertising is also used to
create preference
Reminder
To stimulate repeat purchase
Reinforcement
To minimise purchase
dissonance
Marketing versus Communications Objectives
Marketing Objectives
oSpecific measurable
outcomes such as sales
volume, market share,
profits or return on
investment
oQuantifiable in terms of
growth and time period.
oTo be effective, they should
be realistic and attainable.

Communications Objectives
o Who is the target segment?
o What is the behaviour that
advertising is attempting to
precipitate, reinforce, change
or influence?
o Perceptual positioning map
o Ideas on brand positioning and
desired behavioural responses
in terms of trials, brand switch
or usage increase

1 - 38
Proper coordination necessary between promotion and other strategies
Money The Advertising Budget
Higher in the introduction and growth
stage
Stage in the
Product Life Cycle
Players with lower market shares tend
to spend more
Market Share and
Consumer Base
Higher the clutter, higher the need to
spend
Competition and
Clutter
Higher for informative and persuasive
Advertising
Frequency
Depends on need for differentiation
Product
Substitutability
3
9
Foote, Cone & Belding Grid
1 - 40
1
Informative
The Thinker

3
Habit
Formation
The Doer

Thinking Feeling
L
o
w


I
n
v
o
l
v
e
m
e
n
t

2
Affective
The Feeler

4
Self-
Satisfaction
The Reactor

H
i
g
h


I
n
v
o
l
v
e
m
e
n
t

Developing the Advertising Campaign
oMessage Strategy What is conveyed
oCreative Strategy - How it is conveyed
oMarketing briefs have to be converted to creative
brief
oPositioning statement

1 - 41
Media Strategy
o Process of analysing and choosing media for an
advertising and promotions campaign.
o Large amount of choice available
o Increasing costs
o Stronger demands for results and accountability
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The Product,
Ad Message
5Ws & 1H of Media Planning
The
Consumer
Who
When
Why
What
Where
How
Media
Selections
Seasonality
Markets
Launch,
Promo
Media Plan
1 - 43
Selecting media within class
Selecting broad media classes
Determining media strategy
Media use decision
print
Media use decision
broadcast
Media use decision
other media
Selecting media within class
Determining media strategy
Selecting broad media classes
Developing the Media Plan
Setting media objectives Setting media objectives
Marketing
strategy plan
Creative
strategy plan
Marketing
strategy plan
Situation
analysis
Creative
strategy plan
Situation
analysis
1 - 44
Situation Analysis (by client)
oThe marketing problem has to be understood.
oAn analysis made of the company and competition
in terms of:
Size and share of the total market.
Sales history, costs and profits.
Distribution practices
Methods of selling.
Use of advertising.
Identification of prospects
Nature of the product.
45
The Marketing Strategy Plan (by client)
oTo plan activities that will solve one or more of the
marketing problems. This includes:
Marketing objectives
Product and spending strategy
Distribution strategy
Which elements of the marketing mix are to be
used?
Identification of best target segments

46
Where to Promote?
oWhat should be the geographic coverage?
oShould a company advertise in areas where they
are strong or where they are weak and the
potential exists for growth?
o Buying Power Index
R K Swamy BBDO Guide Now in fourth edition.
It prioritises markets based on buying power and
district level potential.


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Establishing Media Objectives
o Set to achieve marketing and communication
objectives
o Example
Use broadcast media to reach 80% of target
audience in a six month period.
Reach 60% of the target audience at least three
times over the same six month period. (Frequency)
Concentrate heaviest advertising from mid-
September to end December with low advertising
from June to mid-September and medium level from
January to May. (Seasonality)
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Budget Considerations
Actual total cost required to place the message.
In newspapers it is Rate per column centimetre
while in television it is per spot
Absolute Cost
Relationship between the price paid for
advertising space or time and the size of the
audience delivered.
Relative Cost
Cost of reaching one thousand members of the
media vehicles audience.
Cost per
Thousand (CPM)
Cost of media buy divided by the media vehicle
rating.
Cost per Rating
Point (CPRP)
49
Media and Measuring Effectiveness
oReach (R)
Number of persons exposed during a specified time
period
oFrequency (F)
Number of times the person is exposed to the
advertisement
oImpact (I)
Depends on advertisement environment
oTotal Number of Exposures (E)
RxF Also called Gross Rating Point
oWeighted Number of Exposures (WE)
RxFxI
1 - 50
Scheduling
o Media planner can schedule the advertisements:
Same level throughout the year (Continuity)
Intermediate phases of advertising and non-advertising (Flighting)
Combination of two (Pulsing)

CONTINUITY
Pulsing
FLIGHTING
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Advantages and disadvantages of each?
51
Evaluating Advertising Effectiveness
Communications
Effect Research
Pre-Test
Post-Test
Sales Effect
Research
Share of
Expenditure
Share of Voice
Share of mind
and heart
Share of market
1 - 52
Pre-tests
oMay occur at any time from idea generation to
final version before implementation
oMethodologies
Focus groups
Rating scales
oAdvantages
Inexpensive feedback
Different versions can be tested
oDisadvantage
Mock-ups, story boards or animations may not
communicate as effectively as the final ad
1 - 53
Field Post-testing Methods
Recall tests
Association
measures
Single source
systems
Enquiry tests
Recognition
tests
Tracking
studies
o Determine if communication objectives are met
o Serve as inputs for next campaign
1 - 54
Models of Obtaining Feedback
Exposure/presentation
Attention
Comprehension
Message acceptance/
yielding
Retention
Purchase behavior
Circulation reach
Listener, reader,
viewer recognition
Recall, checklists
Brand attitudes,
purchase intent
Recall over time
Inventory
POP consumer panel
Scanner data
Retention Recall over time
Message acceptance/
yielding
Brand attitudes,
purchase intent
Comprehension
Recall, checklists
Attention
Listener, reader,
viewer recognition
Exposure/presentation Circulation reach
Effectiveness Test Persuasion Process
1 - 55
Mass Media Landscape in India
Doordarshan channels 35
Private channels 784 (389 news)
TV stations
Newspapers 12,500
Magazines 81,500
Publications
All India Radio 171
Private FM 245
Radio
Stations
Single Screen 10,000
Multiplex Screens 1,050
Cinema
Screens
56
Literacy and Media Consumption
1 - 57
Source: Indian Readership Survey Figures in thousands
Top 10 Publications
1 - 58
Source: Indian Readership Survey Figures in thousands
Top 10 Magazines
1 - 59
Source: Indian Readership Survey Figures in thousands
Advertising Revenue
MEDIA 2012 2013 Inc % 2014 (P) Inc %
Print
Newspapers 137.81 146.08 6.0% 158.86 8.8%
Magazines 8.198 8.198 0.0% 8.383 2.3%
TOTAL 146.11 154.28 5.6% 167.24 8.4%
Television 140.92 149.32 6.0% 164.81 10.4%
Digital 20.456 26.957 31.8% 35.424 31.4%
OOH 18 19.842 10.2% 22.238 12.1%
Radio 12.723 13.741 8.0% 15.253 11.0%
Cinema 2.275 2.73 20.0% 3.276 20.0%
Total 340.38 366.87 7.8% 408.24 11.3%
Source: Magna Global Forecast Unit: Rs. Billions
1 - 60
Television
o Reach 161 million households with cable and satellite 86%
o Rates
Rs. 2 to 4 lakhs per 10 seconds for non-fiction
Rs. 50,000 to Rs. 1.7 lakhs for soaps
o Advertisement time dropped from 20 minutes to 12
minutes
o TVT and GVT replaces TRP and GRP
o Mahabharat opened with 8,445 TVT and settled at average
of 6,356.
o KBC opened with 7711 and averaged 5080
o Comedy Nights with Kapil 7244

1 - 61
Television Advertising
62
Television Advertising
Top 10 Categories Top 10 Advertisers
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Next Session
o Dainik Bhaskar Case
oReading Chapters 16 and 17
oDeliverables
Single sheet hand written on plain A 4 by
each student
Power point presentation by each group
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