322 advertising, sales promotion, & public relations

Integrated Marketing Integrated Marketing Communication: Advertising, Communication: Advertising, Sales Promotion, and Public Sales Promotion, and Public RelationsRelations

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Promotion – marketing communication

• An element of An element of marketing mixmarketing mix

• Communication Communication techniques aimed at techniques aimed at informing, informing, influencing,reminding influencing,reminding and persuading to buy and persuading to buy or use a particular or use a particular product.product.

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Two types of promotion

• Product PromotionProduct Promotion– Type of promotion that a business uses Type of promotion that a business uses

to convince potential customers to buy to convince potential customers to buy products from them and not their products from them and not their competitors.competitors.

• Institutional PromotionInstitutional Promotion– Type of promotion that a business uses Type of promotion that a business uses

to create a favorable image for itself.to create a favorable image for itself.

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Integrated Marketing Communication

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Composition of mix depends upon…

• Stage in the life cycleStage in the life cycle:: Advertising is Advertising is very important at the time of launchvery important at the time of launch

• Nature of the productNature of the product:: Complex/TechnicalComplex/Technical

• Competitor activitiesCompetitor activities• Marketing budgetMarketing budget• Marketing strategyMarketing strategy• Target marketTarget market

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Communication Platforms

AdvertisingAdvertising• Print and broadcast adsPrint and broadcast ads• Packaging insertsPackaging inserts• Motion picturesMotion pictures• Brochures and bookletsBrochures and booklets• PostersPosters• BillboardsBillboards• POP displaysPOP displays• LogosLogos• VideotapesVideotapes

Sales PromotionSales Promotion• Contests, games, Contests, games, • PremiumsPremiums• SamplingSampling• Trade shows, exhibitsTrade shows, exhibits• CouponsCoupons• RebatesRebates• EntertainmentEntertainment• Continuity programsContinuity programs

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Events/ ExperiencesEvents/ Experiences• SportsSports• EntertainmentEntertainment• FestivalsFestivals• ArtsArts• CausesCauses• Factory toursFactory tours• Company museumsCompany museums• Street activitiesStreet activities

Public RelationsPublic Relations• Press kitsPress kits• SpeechesSpeeches• SeminarsSeminars• Annual reportsAnnual reports• Charitable donationsCharitable donations• PublicationsPublications• Community relationsCommunity relations• LobbyingLobbying

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Personal SellingPersonal Selling• Sales presentationsSales presentations• Sales meetingsSales meetings• Incentive programsIncentive programs• SamplesSamples• Fairs and trade showsFairs and trade shows

Direct MarketingDirect Marketing• CatalogsCatalogs• MailingsMailings• TelemarketingTelemarketing• Electronic shoppingElectronic shopping• TV shoppingTV shopping• Fax mailFax mail• E-mailE-mail• Voice mailVoice mail

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Elements in the Communications Process• SenderSender• MessageMessage• ReceiverReceiver• ResponseResponse• FeedbackFeedback• NoiseNoise

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Models of the Response Process

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Steps in Developing Effective Communications

Identify target audience

Determine objectives

Design communications

Select channels

Establish budget

Decide on media mix

Manage IMC

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Promotional objectives

• To increase salesTo increase sales• To attract new To attract new

customerscustomers• To retain existing onesTo retain existing ones• To encourage customer To encourage customer

loyaltyloyalty• To create awarenessTo create awareness• Brand awarenessBrand awareness• To informTo inform• To remindTo remind• To ensureTo ensure

• To modify attitudesTo modify attitudes• To create an imageTo create an image• To position a productTo position a product• To improve position in To improve position in

the marketthe market• To pull the product To pull the product

through channelsthrough channels• To push the product To push the product

through channelsthrough channels

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Push vs. Pull Promotion Strategy

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Designing the Communications• Message strategy (what to say?)Message strategy (what to say?)• Creative strategy (how to say it)Creative strategy (how to say it)• Message source (who should say it)Message source (who should say it)• Personal communication channelsPersonal communication channels• Nonpersonal communication channelsNonpersonal communication channels• IntegrationIntegration

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Creative Strategy• CS is the way a marketer translates the message into a CS is the way a marketer translates the message into a

specific communicationspecific communication• Informational and transformational appealsInformational and transformational appeals

– Informational appeals-related to product /service attributes,benefitsInformational appeals-related to product /service attributes,benefits• Problem solution adsProblem solution ads• Product demonstration adsProduct demonstration ads• Product comparison adsProduct comparison ads• Endorsements Endorsements

– Transformational appeals-relates to non product related Transformational appeals-relates to non product related benefit/imagebenefit/image• Kind of people who use the brandKind of people who use the brand• Kind of experience that results from using the brandKind of experience that results from using the brand

• Positive and negative appealsPositive and negative appeals– FearFear– GuiltGuilt– ShameShame– HumorHumor– LoveLove– PridePride– Joy Joy

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Message Source

• Source can be the company itself Source can be the company itself or known/unknown peopleor known/unknown people

• Celebrity CharacteristicsCelebrity Characteristics– ExpertiseExpertise– TrustworthinessTrustworthiness– LikeabilityLikeability

• State of congruence between State of congruence between attitude towards source & messageattitude towards source & message

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Personal Communications ChannelsThese let two persons communicate These let two persons communicate

face to face,person to audience, face to face,person to audience, overphone thru e-mail overphone thru e-mail

• Expert ChannelsExpert Channels• Social ChannelsSocial Channels

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Nonpersonal Communication Channels• MediaMedia• Sales PromotionSales Promotion• Events and ExperiencesEvents and Experiences• Public RelationsPublic Relations

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Establish the Budget

• AffordableAffordable• Percentage-of-SalesPercentage-of-Sales• Competitive ParityCompetitive Parity• Objective-and-TaskObjective-and-Task

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Estimate Costs Associated with Tasks(determine costs of advertising, promotions, etc.)

Determine Specific Tasks(advertise on market area television and radio and local newspapers)

Establish Objectives(create awareness of new product among 20 percent of target market)

Determine Specific Tasks(advertise on market area television and radio and local newspapers)

Establish Objectives(create awareness of new product among 20 percent of target market)

Objective and Task Method

Monitor and Adjust(monitor performance and adjust)

Estimate Costs Associated with Tasks(determine costs of advertising, promotions, etc.)

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Advertising….

• Any paid form of Any paid form of non-personal non-personal presentation and presentation and promotion of ideas, promotion of ideas, goods, or services goods, or services by an identified by an identified sponsor.sponsor.

Advertise here!

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Promotional mix - advertisingProduct advertising Sells a particular good or service

Retail advertising Initiated by retailers and directed at consumers via papers, television

Institutional advertising Intended to promote a firm’s image rather than sell product

Trade advertisingInitiated by manufacturers and

directed to retailers and wholesalers

Industrial advertising Initiated by manufacturers and directed to other manufacturers

Advocacy advertising Promote view to influence public opinion or legislation

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Major Decisions in Advertising

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The Five M’s of Advertising

• MissionMission• MoneyMoney• MessageMessage• MediaMedia• MeasurementMeasurement

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Advertising Objectives

• Informative advertisingInformative advertising• Persuasive advertisingPersuasive advertising• Reminder advertisingReminder advertising• Reinforcement advertisingReinforcement advertising

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Factors to Consider in Setting an Advertising Budget• Stage in the product life cycleStage in the product life cycle• Market share and consumer baseMarket share and consumer base• Competition and clutterCompetition and clutter• Advertising frequencyAdvertising frequency• Product substitutabilityProduct substitutability

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Creative Brief

• Positioning Positioning statementstatement

• Key messageKey message• Target marketTarget market• ObjectivesObjectives• Key brand benefitsKey brand benefits

• Brand promiseBrand promise• Evidence of Evidence of

promisepromise• MediaMedia• BackgroundBackground• Creative Creative

considerationsconsiderations

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Advertising media

Internet

Yellow pages

Direct mail

Outdoor

Magazines

Radio

Television

NewspaperMedia

Easily ignored, low readershipLow cost, interactive, 24-hour

Long ad-purchase lead time, high other-ad competition

Low cost, excellent local coverage, wide consumer use

High cost, junk mail image, need accurate mailing list

Very flexible, targets specific audience, complete information

Brief exposure, limited audience selectivity

High repeat exposure, low cost, local market focus

Long ad-purchase lead time, lack of flexibility

Long life, quality reproduction, high demographic selectivity

Fleeting exposure, audio presentation only

Low cost, high geographic & demographic selectivity

High cost, fleeting exposure, limited audience selectivity

Mass coverage, high attention with sight, sound,& motion

Competition from other features, limited selectivity

Good local coverage, broad acceptance, believable

Weaknesses Strengths

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Media Selection• Reach• Frequency• Impact• Exposure- reach X frequency

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Choosing Media Type

• Factors to consider:Factors to consider:– Media habits of target consumersMedia habits of target consumers– Nature of the productNature of the product– Type of messageType of message– CostCost– Media vehiclesMedia vehicles

•Specific media within each general media Specific media within each general media typetype

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Humor in Advertising

These days, it seems as though almost every company is using humor in its advertising, even the scholarly American Heritage Dictionary.

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Deciding on Media Timing• Must decide how to schedule the Must decide how to schedule the

advertising over the course of a yearadvertising over the course of a year– Follow seasonal patternFollow seasonal pattern– Oppose seasonal patternOppose seasonal pattern– Same coverage all yearSame coverage all year

• Choose the pattern of the adsChoose the pattern of the ads– ContinuityContinuity– ConcentrationConcentration– FlightingFlighting– PulsingPulsing

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Evaluating Advertising

Measure the communication effects of an ad.“Copy Testing”

Measure the sales effects of an ad.Is the ad increasing sales?

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Sales Promotion

Collection of incentive tools, mostlyshort term, designed to stimulate

quicker or greater purchase of particular products or services

by consumers or the trade.

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Sales promotion• Tactical point of sale material Tactical point of sale material

or inducements designed to or inducements designed to stimulate purchasesstimulate purchases

• Short term incentives to Short term incentives to increase salesincrease sales

• Some promotions are aimed Some promotions are aimed at consumers, some at at consumers, some at intermediaries and others at intermediaries and others at the salesforcethe salesforce

• E.g.: coupons, leaflets, E.g.: coupons, leaflets, demonstrations, samples, demonstrations, samples, free gifts, point of sale (POS) free gifts, point of sale (POS) displays etc.displays etc.

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Sales promotion

• Incentives provide a quick boost to Incentives provide a quick boost to salessales

• Effects maybe short term onlyEffects maybe short term only• Excess use of some incentives may Excess use of some incentives may

adversely effect brand imageadversely effect brand image

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Promotional mix – sales promotion

Premiums

Samples

CouponsPoint-of-purchase

Rebates

Prizes

Sales contests

Trade showsconventions

Price-off discount

Allowances

Consumer-oriented Trade-oriented

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Sample

Coupons

Cash Refunds“Rebates”Price Packs

“Cents-Off Deals”

Premiums

Advertising Specialties

Offers a trial amount of a product

Savings when purchasing specified products

Refund of part of the purchase price by mail

Reduced prices marked on the label or package by producer

Goods offered free or low cost as an incentive to buy a product

Articles imprinted with an advertiser’s name given as gifts

Consumer Sales Promotion Tools

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Patronage Rewards

Point-of-Purchase Promotions

Contest

Sweepstakes

Games

Cash or other award offered for regular use of a product or service

Displays or demonstrations at the point of purchase or sale

Consumers submit an entry to be judged by a panel

Consumers submit their names for a drawing

Consumers receive something each time they buy which may

help them win a prize

Consumer Sales Promotion Tools

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Trade Promotion

Persuade resellers to carry a brand

Give a brand shelf space

Promote brand in advertising

Push brand to customers

Discounts

Allowances

Free Goods

Push Money

Specialty Advertising Items

Objectives Tools

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Sales force promotions

• Promotions aimed Promotions aimed at the sales forceat the sales force

• Designed to Designed to motivate the sales motivate the sales force. E.gforce. E.g..

- BonusBonus- CommissionCommission- CouponCoupon

- VouchersVouchers- Free ServicesFree Services- Free giftsFree gifts- CompetitionCompetition

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Using Sales PromotionsEstablish objectives

Select tools

Develop program

Pretest

Implement and control

Evaluate results

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Public Relations

• Any activity Any activity designed to create designed to create a favorable image a favorable image toward a business, toward a business, its products or its its products or its policies.policies.

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Public relations

• Managing relations with an Managing relations with an organization’s various stakeholdersorganization’s various stakeholders

• The planned and sustained effort to The planned and sustained effort to establish and maintain goodwill & establish and maintain goodwill & mutual understanding between an mutual understanding between an organization’s various stakeholdersorganization’s various stakeholders

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Scope of PR• Promotion through media publicityPromotion through media publicity• Enhances public awareness of the Enhances public awareness of the

companycompany• Projects company’s mission & Projects company’s mission &

philosophyphilosophy• Projection of the organization as a Projection of the organization as a

source of opportunitiessource of opportunities• Obtaining favorable comments on the Obtaining favorable comments on the

mediamedia

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• A specific kind of public A specific kind of public relations that involves relations that involves placing positive and placing positive and newsworthy information newsworthy information about a business, its about a business, its products, or its policies in products, or its policies in the media is called…..the media is called…..

Publicity

http://et.tv.yahoo.com/hotshots/gallery/13636/

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Publicity• Release of a commercially Release of a commercially

significant news about a significant news about a particular product or particular product or serviceservice

• Purpose is to obtain a Purpose is to obtain a favorable presentation of favorable presentation of such news via a medium such news via a medium not paid for by a sponsornot paid for by a sponsor

• Involves getting media Involves getting media coverage of an event or coverage of an event or product launch / articles in product launch / articles in newspapersnewspapers

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Sponsorship

• Payment for an Payment for an event/person/organization is given in event/person/organization is given in return of some benefit return of some benefit

• A specialized form of advertising that A specialized form of advertising that can create significant exposure for can create significant exposure for companiescompanies

• Common in the world of art and sportsCommon in the world of art and sports

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Ideal EventsAudience closely matches target market

Event generates media attention

Event is unique with few sponsors

Event enhances brand image of sponsor

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Merchandising

• Attempts to influence customers at Attempts to influence customers at the point of salethe point of sale- Display pop-up standsDisplay pop-up stands- wobblers, danglers etc.wobblers, danglers etc.- Store layoutStore layout- Storage spaceStorage space- AmbienceAmbience

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Packaging

• The outer wrapper or The outer wrapper or the container is often an the container is often an indicator of the quality indicator of the quality of the product itselfof the product itself

• Packaging serves the Packaging serves the following purposes:following purposes:- Protection of the productProtection of the product- Preservation of the productPreservation of the product- Provides informationProvides information- Promotes the productPromotes the product- ConvenienceConvenience

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Direct Marketing

Use of consumer-direct channels to reachand deliver goods and services to

customers without using market middlemen.

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Direct Marketing Channels

• CatalogsCatalogs• Direct mailDirect mail• TelemarketingTelemarketing• Web sitesWeb sites• Email marketingEmail marketing• Mobile devicesMobile devices

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RFM Formula for Selecting Prospects• RecencyRecency• FrequencyFrequency• Monetary valueMonetary value

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Components of the Mailing

• Outside envelopeOutside envelope• Sales letterSales letter• CircularCircular• Reply formReply form• Reply envelopeReply envelope

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Personal Selling

– This type of This type of promotion promotion requires requires contact with contact with potential potential buyersbuyers

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Personal Selling• Personal selling is a paid, personal form of Personal selling is a paid, personal form of

promotion.promotion.• Involves two-way personal communication Involves two-way personal communication

between salespeople and individual between salespeople and individual customers.customers.

• Carried out through telephone, at meetings, Carried out through telephone, at meetings, at retail outlets & door to door sellingat retail outlets & door to door selling

• High priced, low volume and highly technical High priced, low volume and highly technical products rely heavily on personal sellingproducts rely heavily on personal selling

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The Nature of Personal Selling

• Most salespeople are well-educated, Most salespeople are well-educated, well-trained professionals who work well-trained professionals who work to build and maintain long-term to build and maintain long-term customer relationships.customer relationships.

• The term salesperson covers a wide The term salesperson covers a wide range of positions:range of positions:– Order taker: Department store clerkOrder taker: Department store clerk– Order getter: Creative selling in different Order getter: Creative selling in different

environmentsenvironments

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The Role of the Sales Force

• Salespeople:Salespeople:– Probe customers to learn about Probe customers to learn about

problemsproblems– Adjust marketing offers to fit special Adjust marketing offers to fit special

needsneeds– Negotiate terms of salesNegotiate terms of sales– Build long-term personal relationshipsBuild long-term personal relationships

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The Role of the Sales ForceSales Force serves as critical link between

company and its customers

They represent the company to the customers

They represent the customers to the company

Goal =Customer Satisfaction and Company Profit

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Major types of sales jobs

•Creative sellingCreative selling•Order takingOrder taking•Technical specialistsTechnical specialists

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Major Steps in Sales Force Management

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Sales Force StructureTerritorial: Salesperson assigned to exclusive

area and sells full line of products

Product: Sales force sells only certain product lines

Customer: Sales force organizes along customer or industry lines

Complex: Combination of several types of structures

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Compensating Salespeople

• Fixed amount: Fixed amount: – Salary Salary

• Variable amount:Variable amount:– Commissions or bonusesCommissions or bonuses

• Expenses:Expenses:– Repays for job-related expendituresRepays for job-related expenditures

• Fringe benefits:Fringe benefits:– Vacations, sick leave, pension, etc.Vacations, sick leave, pension, etc.

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Supervising Salespeople

• Motivating SalespeopleMotivating Salespeople– Organizational climateOrganizational climate– Sales quotasSales quotas– Positive incentives:Positive incentives:

•Sales meetingsSales meetings•Sales contestsSales contests•Recognition and honorsRecognition and honors•Cash awards, trips, profit sharingCash awards, trips, profit sharing

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Major Steps in Effective Selling

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Personal Selling

• STRENGTHSSTRENGTHS• Great attentionGreat attention• Msg is customizedMsg is customized• Persuasive impactPersuasive impact• Potential for Potential for

development of development of relationshiprelationship

• AdaptableAdaptable• Opportunity to close Opportunity to close

sale callsale call

• WEAKNESSESWEAKNESSES- High costHigh cost- Labor intensiveLabor intensive- ExpensiveExpensive- Can only reach a Can only reach a

limited no. of limited no. of customerscustomers

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Promotional mix – comparison

Inexpensive, has high credibility

Tool Strengths Weaknesses

AdvertisingLarge audience, low cost per contact, can modify message

Overall expensive, difficult to measure effectiveness

Direct mailEffective when using targeted

and current mailing listReaches disinterested parties

and considered “junk”

Personal sellingTailored to each buyer,

immediate buyer responseExpensive

TelemarketingImmediate feedback and

immediate buyer responseOften seen as intrusive

Word of mouthDifficult to manage

Sales promotionInexpensive, short-term sales

increasesNon-personal appeal

Public relationsCreates positive attitude about

product/firmNon-personal appeal, hard ot

measure effectiveness

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What do they do?

• AdvertisingAdvertising– Creates awareness of a business’s productCreates awareness of a business’s product

• Public RelationsPublic Relations– Creates a favorable image for the business itselfCreates a favorable image for the business itself

• Sales PromotionSales Promotion– Efforts stimulate salesEfforts stimulate sales

• Personal SellingPersonal Selling– Builds on all of the other efforts by helping Builds on all of the other efforts by helping

customers complete the salecustomers complete the sale

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•A company wishes to launch a new A company wishes to launch a new toothpaste which can effectively toothpaste which can effectively prevent cavities and tooth decay. prevent cavities and tooth decay. But the toothpaste market is highly But the toothpaste market is highly crowded with multiple brands. If crowded with multiple brands. If you were to evolve a marketing you were to evolve a marketing communication strategy ,how will communication strategy ,how will you proceed?you proceed?

•Which appeal will you use and Which appeal will you use and why??why??

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•A leading European A leading European departmental store is all set departmental store is all set to enter the Indian market. to enter the Indian market. Evolve an advertising Evolve an advertising strategy for the store.strategy for the store.

•Mention the objectives, Mention the objectives, creative strategy and media creative strategy and media choices.choices.

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Placing ads and promotion online

• Context-Context-Layout & designLayout & design• Content- Content- text, pictures ,sounds, videostext, pictures ,sounds, videos• Community- Community- how the site enables user to user how the site enables user to user communicationcommunication• CustomizationCustomization• Communication-Communication-interactivityinteractivity• Connection- Connection- linkage to other siteslinkage to other sites• Commerce- Commerce- capabilities for commercial transactionscapabilities for commercial transactions

Web sites must express the firms’ purpose, history, products & vision

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Ease of Use and Attractiveness• Ease of UseEase of Use

– Downloads quicklyDownloads quickly– First page is easy to understandFirst page is easy to understand– Easy to navigateEasy to navigate

• AttractivenessAttractiveness– Clean lookingClean looking– Not overly crammed with contentNot overly crammed with content– Readable fontsReadable fonts– Good use of color and soundGood use of color and sound

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Increasing Visits and Site Stickiness• Deep information with linksDeep information with links• Changing news of interestChanging news of interest• Changing offers Changing offers • Contests and sweepstakesContests and sweepstakes• Humor and jokesHumor and jokes• Games Games

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Online Ads• Banner adsBanner ads• Microsites- Microsites- a limited area on the web managed and paid for by an a limited area on the web managed and paid for by an

external advertiser/companyexternal advertiser/company• Sponsorships- e.g podcastsSponsorships- e.g podcasts• InterstitialsInterstitials• Search-related ads & display adsSearch-related ads & display ads• AlliancesAlliances• CommunitiesCommunities• WOM thru-Social networking sites-myspace ,facebookWOM thru-Social networking sites-myspace ,facebook• Buzz & viral MarketingBuzz & viral Marketing

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e-Marketing Guidelines

• Give the customer a reason to Give the customer a reason to respondrespond

• Personalize the content of your emailsPersonalize the content of your emails• Offer something the customer could Offer something the customer could

not get via direct mailnot get via direct mail• Make it easy for customers to Make it easy for customers to

unsubscribeunsubscribe

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Relationship marketing

•Relationship Marketing -The process of creating , maintaining and enhancing strong ,value-laden relationships with Customers and other stakeholders.

•Relationship marketing is based on the premise that important accounts need focused and continuous attention.

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• The ad opens on Shah Rukh Khan speaking about The ad opens on Shah Rukh Khan speaking about relationships in life. relationships in life.

• He says all relationships are based upon trust, He says all relationships are based upon trust, same as his with ICICI. same as his with ICICI.

• He says how 2.5 crore Indians have entrusted this He says how 2.5 crore Indians have entrusted this bank, making it India's second largest bank. bank, making it India's second largest bank.

• He goes on to say that the bank is solid, He goes on to say that the bank is solid, responsible and trustworthy, just like every responsible and trustworthy, just like every relationship relationship

• The ad ends as he says he trusts ICICI bank with The ad ends as he says he trusts ICICI bank with his money and will always continue to do so. his money and will always continue to do so.

ICICI Bank