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COMMUNICATION (PROMOTION
MANAGEMENT)
An Introduction
SESSION 1 AND 2
Mrs.S.Nishanthi
Meaning of Communication
The word communicate is derived from the Latin word communicare that means to impart ,
to participate, to share or to make common.
Communication means to share some ideas, information, feeling or attitude by using some
symbols so that a common meaning is held. Communication can be defined as the sharing of a
common meaning.
Communication occurs when the message that was sent reaches its destination in a form that is
understood by the intended audience.
Communication is the process of sharing information between people through a continuous
activity of speaking, listening & understanding.
Communication is the process of delivering a message from one person or group to another.
Communication means transmission of message from a sender to receiver by means of signal of
some sort, sent through a channel of some sort.
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Communication can be used in many forms:
It can be written or spoken.
It can be picture or illustrations.
It can be product demonstration.
It can be some kind of body language.
It can be combination of verbal and visuals.
Definition of Communication
According to Peter Little, Communication is the process by which information is
transmitted between individuals and or organization so that an understanding response
results.
According to Newman and Summer, It is an exchange of facts, ideas, opinions, or
emotions by two or more persons.
According to Louis A.Allen, Communication is the sum total of all the things that a
person does, when to create an understanding in the mind of another. It involves a
systematic and continuous process of telling, listening and understanding .
STEPS IN COMMUNICATION PROCESS
Meaning of Marketing
Marketing is the social process by which individuals and organizations obtain what they need
and want through creating and exchanging value with others.
Marketing is the study and management of exchange relationships. The American
Marketing Association has defined marketing as "the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large."
Marketing is used to create, keep and satisfy the customer. With the customer as the focus
of its activities, it can be concluded that Marketing is one of the premier components of
Business Management - the other being Innovation. Other services and management
activities such as Operations (or Production), Human Resources, Accounting, Law and Legal
aspects can be "bought in" or "contracted out".
DEFINITION OF MARKETING
The process of planning and executing the conception, pricing, promotion
and distribution of ideas, goods, and services to create exchanges that satisfy
individual and organizational objectives.
Target
Target audience
audience
Customers: Company
Past, Current, Potential department
Channel member:
Employees
Wholesalers, Retailers
Companies:
Stockholders
Competing, Non-competing
Others:
Govt and Private agencies,
Experts
History of Integrated Marketing
Communication
The History of Marketing in the 20th century and earlier is a complex and
still not fully explored subject, mixed up as it is with a history of trade and
economics. The concept of integrated marketing is focused on the creation
of value, arguing that the organization needs to be united in the creation of
distinctive or differentiated value in order to achieve productive synergy.
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The concept of integration also arises as a result of recognition of disintegration,
especially in the field of communication. Integrated marketing communications
(IMC) developed during the 1990s as an Endeavour to achieve consistency across
marketing communications disciplines and media that had become fragmented over
time through the cultivation of individual disciplines, competition and the
development of independent communication objectives. By 2000, it was recognized
that there was a logical and practical need in what was called stage for IMC for this
to be extrapolated across all organizational contact with customers and therefore
across the entire organizational business processes.
Integrated Marketing Communications
IMC is integration of all marketing tools, approaches, and resources, within a company which
maximizes impact on consumer mind and which results into maximum profit at minimum cost.
IMC is also broadly known as the term Promotion Mix.
Integrated marketing communication (IMC) is an approach to brand communications
where the different modes work together to create a seamless experience for the customer
and are presented with a similar tone and style that reinforces the brands core message.
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Its goal is to make all aspects of marketing communication such as advertising, sales
promotion, public relations, direct marketing, personal selling, online
communications and social media work together as a unified force, rather than
permitting each to work in isolation, which in turn maximizes their cost
effectiveness.
Many companies recognize the need to integrate their various marketing
communication efforts, such as media advertising, direct marketing, sales
promotion, and public relations, to achieve more effective marketing
communications.
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Integrated Marketing Communications is a term used to describe a holistic
approach to marketing communication. It aims to ensure consistency of
message and the complementary use of media. The concept includes online
and offline marketing channels.
There are many ways for a company to contact the customer to provide
them the information about the co: The challenge is to understand how to
use the various IMC tools in an effective way in a right combination.
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Online marketing channels include any e-marketing campaigns or programs,
from search engine optimization (SEO), pay-per-click, affiliate, email, banner
to latest web related channels for webinar, blog, micro-blogging, face book
marketing, RSS, podcast, Internet Radio and Internet TV. Offline marketing
channels are traditional print (newspaper, magazine), mail order, public
relations, industry relations, billboard, radio, and television.
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Offline marketing channels are traditional print (newspaper, magazine), mail
order, public relations, industry relations, billboard, radio, and television.
company develops its integrated marketing communication programme using
all the elements of the marketing mix (product, price, place, and promotion).
An integration of all these promotional tools along with other components
of marketing mix to gain edge over competitor is called Integrated Marketing
Communication.
Definition of Integrated Marketing
Communications
According to the American Marketing Association, integrated marketing
communications is a planning process designed to assure that all brand
contacts received by a customer or prospect for a product, service, or
organization are relevant to that person and consistent over time.
Objectives of IMC
Building brand equity.
Providing information.
Manage demand and build state.
Differentiate products.
Influence perceptions.
Influence attitude and buyer behavior.
Reasons For Growing Importance of IMC
Shift from media advertising to other forms of marketing communication
Shift in power from manufacturers to retailers- Retailers are becoming more powerful and dominating the
manufactures.
Movement away from advertising focused- approaches that emphasize mass media
Rapid growth of database marketing
Demands for greater ad agency accountability and changes in agency compensation
Rapid growth of the Internet
Increasing importance of branding
Emerging of internet and e-commerce which is redefining the way business is done.
Companies are giving emphasis on communication with the consumers.
Factors Affecting IMC
Nature of products
State of product life cycle : Various elements of communication are used in
this state of PLC
Introduction stage
Growth stage
Maturity stage
Decline stage
Obsolescence stage
Factors Affecting IMC
Nature of target market : For following characteristics of target market
affect the communication mix for a product.
Size of market
Socio-economics characteristics of
customers
developing
IMC Selecting the message source
programme
Choosing the media
Collecting feedback
What is an IMC plan?
A framework for developing, implementing & controlling the organization's integrated
marketing communication programs & activities.
It must : -
Evaluate the current situation
Determine the role of each promotion mix element
Develop the strategies for each promotion mix element
Plan for their implementation
Consider how to evaluate results
IMC Audience Contact Tools
Print media
Broadcast media (newspapers, Public Relations/ Internet/
(TV/radio) publicity interactive
magazines)
Out-of-home Direct
media marketing
Target Audience
Budget determination
Develop integrated marketing communications programs
External analysis
Consumer behavior analysis
Market segmentation and target marketing
Market positioning
Analysis of Communication Process
Analyze receivers response processes
Analyze source, message, channel factors
Establish communications goals and objectives
Budget Determination
Set tentative marketing communication budgets
Allocate tentative budget
Develop IMC Program
Advertising
Set advertising objectives
Determine advertising budget
Develop advertising message
Develop advertising media strategy
Direct marketing
Set direct marketing objectives
Determine direct marketing budget
Develop direct marketing message
Develop direct marketing media strategy
Develop IMC Program
Interactive/Internet marketing
Interactive/Internet marketing objectives
Determine Interactive/Internet marketing budget
Develop Interactive/Internet marketing message
Develop Interactive/Internet marketing media strategy
Sales Promotion
Set Sales Promotion objectives
Determine Sales Promotion budget
Determine Sales Promotion tools and develop messages
Develop Sales Promotion media strategy
Develop IMC Program
Publicity/ Public relations
Set Publicity/ PR objectives
Determine Publicity/PR budget
Develop Publicity/PR message
Develop Publicity/PR media strategy
Personal Selling
Set personal selling and sales objectives
Determine personal selling/sales budget
Develop sales message
Develop selling roles and responsibilities
Integration and Implement Marketing
Communication Strategy
Integrate promotional- mix strategy
Create and produce ads
Purchase media time, space, etc
Design and implement direct-marketing programs
Design and distribute sales promotion materials
Design and implement PR/Publicity programs
Design and implement Interactive/Internet Marketing Program
Monitor, Evaluate, and Control IMC Program
IMC also increases profits through increased effectiveness. At its most basic
level, a unified message has more impact than a disjointed myriad of
messages. In a busy world, a consistent, consolidated and crystal clear
message has a better chance of cutting through the 'noise' of over five
hundred commercial messages which bombard customers each and every
day.
Conclusion
At another level, initial research suggests that images shared in advertising
and direct mail boost both advertising awareness and mail shot responses. So
IMC can boost sales by stretching messages across several communications
tools to create more avenues for customers to become aware, aroused, and
ultimately, to make a purchase
Conclusion
Carefully linked messages also help buyers by giving timely reminders, updated
information and special offers which, when presented in a planned sequence, help
them move comfortably through the stages of their buying process... and this
reduces their 'misery of choice' in a complex and busy world.
IMC also makes messages more consistent and therefore more credible. This
reduces risk in the mind of the buyer which, in turn, shortens the search process
and helps to dictate the outcome of brand comparisons.
Conclusion
Un-integrated communications send disjointed messages which dilute the
impact of the message. This may also confuse, frustrate and arouse anxiety
in customers. On the other hand, integrated communications present a
reassuring sense of order.
Conclusion
Consistent images and relevant, useful, messages help nurture long term
relationships with customers. Here, customer databases can identify precisely
which customers need what information when... and throughout their whole
buying life.
Conclusion
Finally, IMC saves money as it eliminates duplication in areas such as
graphics and photography since they can be shared and used in say,
advertising, exhibitions and sales literature. Agency fees are reduced by using
a single agency for all communications and even if there are several agencies,
time is saved when meetings bring all the agencies together - for briefings,
creative sessions, tactical or strategic planning. This reduces workload and
subsequent stress levels - one of the many benefits of IMC.
Conclusion
IMC wraps communications around customers and helps them move
through the various stages of the buying process. The organisation
simultaneously consolidates its image, develops a dialogue and nurtures its
relationship with customers.
Although Integrated Marketing Communications requires a lot of effort
it delivers many benefits. It can create competitive advantage, boost
sales and profits, while saving money, time and stress.
Example 1
Integrated Marketing Communication
Tools
of
Dabur
About Dabur
Dabur (Dabur India Ltd.) is the fourth largest Fast Moving Consumer Goods (FMCG)
company in India-consolidated Revenues of over INR 7,800 Crores and Market
Capitalisation of over INR 46,600 Crore .
Portfolio of over 381 trusted products spread across 21 categories and over 1,000 Stock
Keeping Units (SKUs).
Founded in 1884 by Dr. S. K. Burman, a physician in West Bengal, to produce and dispense
Ayurvedic medicines.
The Dabur name is derived from the Devanagri rendition of Daktar Burman.
Product Line of Dabur
Hair care
Oral care
Health care & supplements
Digestives
Skin care
Food products
Home care
IMC Tools of Dabur
Advertising
Sales Promotion
Public Relations
Interactive Marketing
Advertising
Advertising is the most important marketing tool of the company as it has
to cater mass consumer markets.
Does advertisements on national basis.
Has created the huge brand image and a vast product following by
associating mega stars like Amitabh Bachchan, Rani Mukherjee, M.S.
Dhoni, etc.
Invested INR 150 crores just on the advertising of Real Fruit Juice and
Real Active.
Sales Promotion
Price promotions
Coupons/ On-shelf coupons
Gifts with purchase
Competitions and prizes
Money refunds
Point of sale displays
Free samples
Contest/demos
Festival Sales
Sweepstakes
Price deal: A temporary reduction in the price is given to consumer during some festival session by dabur foods.
Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra).
Coupons: Dabur foods gives coupons during different sampling activities to consumers and it have become a standard mechanism for sales promotions.
Loss leader: Dabur foods temporarily reduce the price of its popular product in order to stimulate other profitable sales.
On-shelf coupons: Coupons are present at the shelf where the product is available.
Rebates: Consumers are offered money back, rebate at different point of time.
Contests/sweepstakes/games: if a customer wins some game or contest at the time of sampling activities then they are given a discount coupon of products of dabur foods.
Point-of-sale displays: Displays helps the consumer easily recognize their products, dabur keeps a special check on the displays and merchandising of dabur products.
Sampling Activities: Dabur organizes different sampling actives at different retail outlets.
Gift with purchase: Dabur foods gives gift items with purchase like a glass, spoon etc.
Money Refunds: Customer can claim for refund of money if they face some problem with the product
Contest /demos: There are different contests where customers play games and win contests.
Festival Sales: Dabur foods come out with some special offers during festival seasons like buy one get one free.
Multi-packs: Dabur foods has some products in multiple packaging which are comparatively priced lower to the products sold in a single pack.
Trade Fairs & exhibitions: Here dabur foods displays all range of its products, making it easier for customers to know about product line and choose the best out of that.
Customer feedback: dabur foods consider its customer most important and in case of any complaint by customer the foods department will leave all its important work and will
contact the customer.
Contact points: Customer can contact dabur foods by writing the mail or letter on the addresses given at the back of dabur products, or even they can call and visit the dabur web site.
Public Relations
Drop sugar for a Healthy Honeylicious Life campaign was launched in 2008
when Dabur strategized to tap the huge potential of the honey market in India to
emerge as the market leader with the first -mover advantage.
The pubIic relation activities indicates that the company is also loyal towards the society, and all
such social responsibilities are very necessary to build a strong customer base and brand loyalty.
Through its comprehensive range of products it touches the lives of all consumers, in all age
groups, across all social boundaries.
Advertising On webpage
Games
Direct marketing :- It is one of the forms of communications
which seeks to cause action; forms databases about clients;
influences separate layer of consumer; gives the chance to learn
analyze there action of consumer to various offer.
Private emailing
Mass media base : magazine ads
Event & Sponsorship :- Supporting an event, activity or organization by providing money
or other resources that is of value to the sponsor event. This is usually in return for
advertising space at the event or as part of the publicity for the event.
On news media
Social sites registration.
College event
Radio programme
sports
Public relation :- The planned and sustained effort to establish and
maintain goodwill and mutual understanding between an organization and its
public.