Integrated

Marketing
Communications

The shifting marketing
communications model:
The new digital media have given
birth to a new marketing
communications model.
New model will consist of shifting mix
of both traditional mass media and a
wide array of exciting, new, more-
targeted, more-personalised media.

IMC Builds Brands
Steps in developing Effective
Marketing Communication
1) Identifying the target audience.
2) Determining the communication objectives.
3) Designing a message.
Message content(what to say).
Message structure and format (how to say it)
4) Choosing media.
Two broad types of communications channels
are: personal and non-
personal.
5) Selecting the message source.
6) Collecting feedback




Informative Advertising
Build Primary Demand

Persuasive Advertising
Build Selective Demand
Reinforcement Advt.
To convince current
purchasers that they made the
right choice
Reminder Advertising
Keeps Consumers Thinking
About a Product.
Mission: Advt. goals/ objectives
Advertising goal
Specific Communication Task
Accomplished with a Specific Target Audience
During a Specific Period of Time
Money :Advertising Budget
Factors
Stage in the
Product Life Cycle
Market Share &
Consumer Base
Competition &
Clutter
Advertising
Frequency
Product
Substitutability
TKV
Percentage-of-Sales
Method
Setting Promotion
Budget at a Certain %
of Current or
Forecasted Sales
Affordable
Method
Setting Promotion
Budget at the Level the
Company Thinks They
Can Afford.
Competitive-Parity
Method
Setting Promotion
Budget to Match
Competitors Outlay
Objective-and-Task
Method
Setting Promotion
Budget by Defining
Objectives, Tasks &
Costs.
Setting Advertising Budgets
Affordable
Method

percent-of-sales approach
In the percent-of-sales approach,
marketers multiply a firms past sales,
plus a factor for planned sales growth
or decline, by a standard percentage
based on what the organization
traditionally spends on advertising and
what the industry averages.
This approach is based on the flawed
assumption that sales create
advertising when the reverse is true.
percent-of-sales approach
competition-matching
approach(Competitive-
Parity Method)
In the competition-matching
approach(Competitive-Parity Method), marketers
try to match their major competitors appropriations
in terms of absolute dollars or to allocate the same
percentage of sales for advertising the competitors
allocate.
competition-matching
approach( Competitive-Parity
Method)
objective-and-task approach,
In the objective-and-task approach,
marketers determine the objectives
that a campaign is to achieve and then
attempt to list the tasks required to
accomplish them.
Once the tasks have been
determined, their costs are added to
ascertain the appropriation needed to
accomplish the objectives.
Message :Developing the
Campaign
Message generation & evaluation
Creative development & execution
Legal & social issues
Media
Media selection is finding the most
cost-effective media to deliver the
desired number and type of exposures
to the target audience.

Radio
Advantages: Mass use; high geographic and demographic
selectivity; low cost

Limitations: Audio only; fleeting exposure; lower attention;
nonstandardized rates; fragmented audiences
Magazines
Advantages: High geographic and demographic selectivity;
credibility and prestige; high-quality reproduction;
long life; good pass-along readership

Limitations: Long ad purchase lead time; waste circulation;
no guarantee of position
Outdoor
Advantages: Flexibility; high repeat exposure; low cost;
low message competition

Limitations: Little audience selectivity; creative limitations
Profiles of Major Media Types
Advertising strategy:
The strategy by which the company
accomplishes its advertising
objectives.
It consists of two major elements:
Creating advertising messages and
selecting advertising media.

Major Types of Advt. appeals
Fear
Humor
Sex
Music
Rationality
Emotions
scarcity

Fear
It has been used to sell a number of
products including life insurance.
Shampoo and mouthwash ads invoke
fears of dandruff and bad breath.
Fear increases both the viewers
interest in an advt. and the
persuasiveness of the advt.
Many individuals remember ads with
fear appeal.

Humor
Because of clutter, capturing
viewers attention has become difficult.
Humor can be effective at both getting
attention and keeping it.
Humor causes consumers to 1.)watch,
2.)Laugh and most importantly 3.)
remember
Advertisers must be careful to avoid
letting the humor overpower the advt.
Humor is often based in ones culture.

Celebrity endorsement
The crescendo of celebrities endorsing brands
has been steadily increasing over the past
years. Marketers overtly acknowledge the
power of celebrities in influencing consumer-
purchasing decisions.
It is a ubiquitously accepted fact that celebrity
endorsement can bestow special attributes
upon a product that it may have lacked
otherwise.
But everything is not hunky-dory; celebrities are
after all mere mortals made of flesh and blood
like us. If a celebrity can aggrandize the merits
of a brand, he or she can also exacerbate the
image of a brand.
The celebritys role is the most explicit and
profound in incarnating user
associations among the above-mentioned
points.
To comprehend this, let us analyze the
multiplier effect formula for a successful brand:
S=P* D*AV --the multiplier effect
Where S is a successful brand,
P is an effective product.
D is Distinctive Identity
and AV is Added values.
The realm of the celebritys impact is confined
to bestow a distinctive identity and provide AV
to the brand; the celebrity does not have the
power to improve or debilitate the efficiency
and features of the core product. Thus, we
are gradually approaching an evident
proposition claiming,
The health of a brand can definitely be
improved up to some extent by celebrity
endorsement. But one has to remember that
endorsing a celebrity is a means to an end
and not an end in itself.


An appropriately used celebrity can prove to
be a massively powerful tool that magnifies
the effects of a campaign. But the aura of
cautiousness should always be there.
The fact to be emphasised is that celebrities
alone do not guarantee success, as
consumers nowadays understand advertising.
They know what advertising is and how it
works. People realize that celebrities are
being paid a lot of money for endorsements
and this knowledge makes them cynical about
celebrity endorsements.
In recent times, we had the Shahrukh-Santro
campaign with the objective of mitigating the
impediment that an unknown Korean brand
faced in the Indian market.
The objective was to garner faster brand
recognition, association and emotional unity
with the target group.
Star power in India can be gauged by the
successful endorsement done by Shahrukh for
three honchos- Pepsi, Clinic All Clear and
Santro.
In the Indian context, we can state that celebrity
endorsements can aggrandize the overall brand.
A standard example here is Coke, which, till recently,
didn't use stars at all internationally. In fact, India was
a first for them. The result was a ubiquitously
appealing Aamir cheekily stating Thanda matlab
Coca Cola.
The recall value for Nakshatra advertising is only due
to the sensuous Aishwarya and later Katrina.
The Parker pen brand, which by itself
commands equity, used Amitabh Bachchan to
revitalize the brand in India.
According to Pooja Jain, Director, Luxor Writing
Instruments Ltd (LWIL), post Bachchan, Parker's
sales have increased by about 30 per cent.
More specific applications
include:

Boosting employee moral and
smoothing labour relations.
Helping newly deregulated industries
ease consumer uncertainty and
answer investor questions.
Helping diversified companies
establish an identity for the parent
firm rather than relying solely on brand
names.

Major types of Corporate
Advt.
Image Advertising It is devoted to
promoting the organisations overall
image.
Advocacy Advertising It addresses
social, business, or environmental
issues.
Cause-related advertising Here
companies link with charities or NGOs
as contributing sponsors.

Sales Promotion
Sales promotion includes tools
for
Consumer promotion
Trade promotion
Business & sales-force promotion


Why the increase in Sales
Promotion?
Growing retailer power
Declining brand loyalty
Increased promotional sensitivity
Brand proliferation
Fragmentation of consumer market
Short-term focus
Competitors used it frequently
Has become more accepted by top
management as an effective sales tool.

Advt Vs Sales promotion
Advt. is more effective in deepening
brand loyalty
Small-share competitors use sales
promotion: Reasons:1.) they cant
afford to match the big-players large
advt. budgets.2.)nor can they obtain
shelf-space without offering trade
allowances or stimulate consumer trial
without offering incentives.
Sales promotion seems to be more
effective when combined with advt.

Major Decisions in sales
promotions
1. Establishing objectives.
2. Selecting tools.
3. Developing the program.
4. Pretesting, Implementing, controlling
and evaluating the program.

Example of developing the
program
Canon-Nengajo - The Japanese may
not send many Christmas or birthday
cards, but they do send a lot of special
postcards called nengajo that are
delivered on New Year's Day.


With the popularity of e-mail and mobile mail, the Japanese
practice of sending Nengajo New Year cards had begun to
decline, especially among younger consumers. To reverse this
trend, Canon launched the "Enjoy Photo" promotion, which
targeted young women and focused on the joy and happiness of
printing and sending photos. Three sisters served as "navigators"
to guide users through the process. At a product launch party
they showed their own digital camera photos, and ads and a
Canon catalog portrayed them enjoying Nengajo printing in their
daily lives. The ads contained a URL to encourage people to
check out a Web site with more detail and featured mini drama
movies. Canon printers also appeared in Bals Tokyo, one of the
most popular home interior shops among youth in Tokyo, and
Odaiba, a popular destination in Tokyo. Canon also created ties
with partner hotels at major theme parks in Tokyo. These
combined efforts led to an explosion of buzz, press, and Web
traffic and a sharp increase in sales
.

PR
PR
Building good relations with the companys
various publics by obtaining favourable
publicity, building up a good corporate
image, and handling or heading off
unfavourable rumors, stories and events.
Functions:
Press relations
Product publicity
Lobbying
Investor relations
Development

Egs.
I New York!
Got Milk?
NECC

Personal Selling
everyone lives by selling something
R. L . Stevenson
Personal selling Personal
presentation by the firms sales force
for the purpose of making sales and
building customer relationships.

Nature of Personal selling
One of the oldest professions of the
world.
One of the oldest examples of
personal selling is that of life
insurance.
Hypercompetitive markets.
Today sales is about building
customer relationships through a
focus on differentiation and linking
those differences to the customers
realization of value.

Steps in the selling process
1. Prospecting & Qualifying
2. Preapproach
3. Approach
4. Presentation and Demonstration
5. Handling objections
6. Closing
7. Follow-up



When might you decide to use
Personal Selling?
Tight budget (straight commission)
Concentrated Market
Few buyers
High value product
Product must be customized.
Personal contact is important.
Must demonstrate product.

Direct Marketing
Direct Marketing
Consists of connecting directly with
carefully targeted individual
consumers to obtain an immediate
response and cultivate lasting
customer relationships.
Some companies use it as a
supplementary channel.
Eg.Lexus

Amazon.com

Annual sales- $15 mn (1996) to $15bn
(2010).
More than 72 mn active users.
The co. is relentlessly customer
driven.
the thing that drives everything is
creating genuine value for customers-
Jeff Bezos
In Japan,
It wants to deliver a special
experience to every customer

Website greets customer with their
very own personalized home pages
and the sitess Recommmended for
you feature
First to use collaborative filtering.
Visitors receive a unique blend of
benefits.
Its discovery factor makes the
marketing experience really special.


Advt.
By law, co.s must avoid false or
deceptive advt.
Advertisers must not make false
claims.
Under Indian law, advt for alcohol is
not allowed.
In India, we have CPA of 1986.
In India, we also have ASCI.
Sellers must avoid bait-and-switch
that attracts buyer under false
pretences.


Bait-and-switch is a form of fraud,
most commonly used in retail
sales but also applicable to other
contexts.
First, customers are "baited
by advertising for a product or service
at a low price;
second, the customers discover that
the advertised good is not available
and are "switched" to a costlier
product.