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Integrated Marketing

Communications

Sanjeev Varshney
Balbir Pasha Campaign
Campaign Roll Out
Creation of an Icon
Creating a Buzz
Response to the Campaign
Indicators to Success
• Increased risk perception among those
exposed to the campaign (17%-43%)
• Increased Tendency to discuss HIV/AIDS
with others (50% discussed)
• Increase in number of people accessing
HIV/AIDS prevention products and services
(retail sales tripled and so does no of calls of
helpline no’s, increase in usage last time)
Why was Balbir Pasha
Campaign Successful?
• Consumer Insight
• Building of intrigue
• Optimal media mix
• Link with the on-ground activities
• Infiltration into popular Culture
• Hard hitting messages
Balbir Pasha Campaign
• Principle of the Campaign:
– Targeting
– Integration
– Information
• Campaign Objectives
– Attitudinal Change
– Changing Social Norms
– Behavioral Change
Promotion and Marketing
Promotion is the element in an organization’s marketing
mix that serves to inform, persuade, and remind the
market regarding the organization and/or its products.
– It includes all the means by which a company communicates
directly with potential customers.
– It is an attempt to influence feelings, beliefs, or behavior.
– It is an attempt to shift the demand curve for a firm’s goods or
services
Shifting Demand for a Product

Demand goal Demand goal


with promotion with promotion

Price
Price

Demand Demand
without without
promotion promotion
Quantity
Quantity
b. Changing the shape
a. A shift in the
(or elasticity)
demand
of the demand curve.
curve to the right.
The Promotional Campaign
• A campaign theme is the promotional appeal
dressed up in a distinctive, attention-getting
form that expresses the product’s benefits.
• The promotional elements are coordinated
in a strategy called integrated marketing
communications.
• A complete campaign includes the
evaluation of results against objectives.
Integrated Marketing
Communication
• Integrated Marketing Communication (IMC)
is a strategic business process used to
plan, develop, execute and evaluate
coordinated communication with an
organization’s publics.
• The IMC approach takes an audience
perspective when planning and
coordinating the organization’s
communication activities
Integrated Marketing Communicatio

Communication channel
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Elements of the IMC
• Awareness of target audience’s information sources.
• Understanding of what the audience knows and believes
that relates to the desired response.
• Use of a mix of promotional tools, each with specific
objectives, linked to a common goal.
• Coordinating personal selling, advertising, sales
promotion, and public relations to communicate
continuous flow of information.
The AIDA Model
Awareness
• Senders first must gain the attention of the
consumers
• A multichannel approach increases the
likelihood the message will be received

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Interest

• After the customer is


aware, they must be
persuaded
• The customer must
want to further
investigate the
product/service

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Desire

I like it

I want it!
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Action

Purchase is
just one type of
action

Discussion question
What other actions
can IMC ask
consumers to take?

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Objectives of IMC
• Provide Information
• Increase Demand
• Differentiate the product
• Accentuate the Products value
• Stabilize sales
Lagged Effect

• Advertising does not


always have an
immediate impact
• Multiple exposures
are often necessary
• It is difficult to
determine which
exposure led to
purchase
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Promotion Methods
• Personal selling: The direct presentation of a product to a prospective
customer by a representative of the selling organization.
• Advertising: A paid-for type of impersonal mass communication in
which the sponsor is clearly identified.
• Sales promotion: Demand-stimulating activity designed to supplement
advertising and facilitate personal selling.
• Public relations: A planned communication effort by an organization to
contribute to generally favorable attitudes and opinions toward an
organization and its products.
• Publicity: A special form of public relations that involves news stories
about an organization or its products.
• Guerilla Marketing: Uses unconventional, innovative, and low cost
techniques to attract consumers attention
Advertising

• Most visible
element of IMC
• Extremely effective
at creating
awareness and
generating interest

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Personal Selling

• Some products
require the help of a
salesperson
• More expensive than
other forms of
promotion
• Salespeople can add
significant value,
which makes the
expense
worth it
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Sales Promotions

• Can be aimed at both


end user consumers
or channel members
• Used in conjunction
with other forms of
IMC
• Can be used for both
short-term and long-
term objectives

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Direct Marketing

• Easily personalizable
• Growth of databases
has fueled the growth
of direct marketing
• New technologies
have opened new
direct marketing
channels

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Using M-Commerce for IMC

How can firms use the new capabilities of


mobile technology to deliver marketing
communications?

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Public Relations (PR)

• “Free” media attention


• Importance of PR has
grown as cost of other
media has increased
• Consumers becoming
more skeptical about
marketing, PR
becoming more
important

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


PR Toolkit

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Electronic Media

Corporate blogs

Online games

Text messaging

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Stealth Marketing/ Guerilla
Marketing

Buzz marketing

Viral marketing

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Designing the Promotional
Mix
When designing the promotional mix, five things should be
considered:
• The Target Audience
– Push vs. Pull strategies
• The Promotional Objective
– Hierarchy of Effects
• The Nature of the Product
– Unit value, Customization, Pre/Post-sale service
• Stage in the Product’s Life Cycle
• Funds Available for Promotion
Marketing Communications
& Customer Response Action
(90%)
Index Intentions
(68%)
16%

Comprehend NA (10%)
2%
(77%)
Awareness No Intentions (32%)
(54%) 8%

Exposure Do not Comprehend (37%)


8%
(63%)

No awareness of exposure (23%)


29%

No exposure (37%)
37%

Customer Response Index (CRI) = (% Exposed) X (% Aware) X


(%Comprehend) X (% Not Interested)
Push & Pull
Promotional Strategies
PUSH STRATEGY

Producer
Producer Wholesaler
Wholesaler Retailer
Retailer Consumer
Consumer

PULL STRATEGY

Producer
Producer Wholesaler
Wholesaler Retailer
Retailer Consumer
Consumer

Product Promotion
flow effort
Push-Pull Communications &
Customer Response
Customer Response

Customer Pull Customer Push

Customer Customer Market Distributor


Preference: loyalty: Coverage: push:
•Awareness •Commitment •Availability •Merchandising
•Attraction •Effectiveness •Stockouts •Marketing
effort

Customer Pull Customer Push


Communications Communications

Communications Mix
Results-Driven Elements: Planning
for and Measuring IMC Success

• Understand the
outcome they hope to
achieve before they
begin
• Short-term or long-
term
• Should be explicitly
defined and
measured
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Promotion Budget
There are four common approaches to
promotion budgeting:
• Percent of Sales
• All Available Funds
• Following the Competition
• By Task or Objective
Budget

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Measuring Success

Frequency

Reach

Gross rating points

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Online Measurements

Web tracking
software

Online couponing

Online referring

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin