module 1 economics for managers

7/25/2019 Module 1 economics for managers

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Module 1Integrated marketingcommunication

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KIRAN. S ASSISTANTPROFESSOR, BGSIT, B.G.Nagar


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Integrated marketing communication

Role of IMC in Marketing process

Marketing and promotion process model

Competitive analysis

Opportunity analysis

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KIRAN. S ASSISTANTPROFESSOR, BGSIT,

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IMC planning model

Step1: Review of the marketing plan

step 2:Promotional programme situationalanalysis

Step 3:Analysis of the communication process

Step 4:Budget determination

Step:5Developing the integrated marketingcommunication programme

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Steps in developing IMC programme

Identify the target audience

Determine the communication objective

Design the message

Selecting the message source

Choosing the media

Collecting the feedback

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Marketing and promotion processmodel

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Communication process

source Message perception

effectreceiverchannel

Feed back

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Steps involved in developing IMCprogrammeIdentify the target audience

Determine the

communication objective

Design the message

Selecting the message source

Choosing the media

Collecting the feedback

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Effectiveness of marketingcommunications Approaches for evaluating promotional

performance

1. Sales effect approach/sales research method

2. Communication effect approach/communication research method

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Measuring the effectiveness ofadvertising It refers to the evaluation of advertising results

against the pre established standards ofperformance and objectives . It can be salesobjectives or communication objectives. In theevaluation process , it is estimated that the

advertisement should influence in buying theproduct

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Measuring the effectiveness of salespromotion The approach most used in evaluating the sales

promotion effectiveness involves measuringsales before, during and after the salespromotion event or program as in case of testingprocess above. If the program is succesfull sales

should increase during the campaigns.

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Measuring the effectiveness ofpublicity and public relations Factors for measuring the public relations are as

follows

1. Public relations audit: it is used to assess anorganization's image among the public or toevaluate the effect of a specific public relations

program

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Communication audit: it may include a contentanalysis of messages , a readability study, or areadership survey. If an organization wants tomeasure the extent which stakeholders view it asbeing socially responsible, It can conduct a social

welfare.

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Measuring the effectiveness ofsponsorship1. Exposure methods: exposure methods can be

classified as those that monitor the quantity

and the nature of media coverage obtained forthe sponsored event and those that estimatedirect and indirect audiences. While commonly

employed by corporations, scholars haveheavily criticized these measures.

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2. Tracking measure:

These measures are designed to evaluate theawareness, familiarity and preferencesengendered by sponsorship based on surveys. A

number of empirical studies have measuredrecall of sponsorsads, awareness if the attitudestoward the sponsors and their products, andimage effect including the brand and corporate

images.

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Measuring the effectiveness of otherpromotion tools Message evaluations: message evaluation

techniques are used to examine the creative

message and the physical design of theadvertisement, coupon or direct marketingpiece. Message evaluation procedures includethe study of actors in advertisements as swell as

the individuals who speak in radio ads. Amessage evaluation program is designed toconsider both the cognitive componentsassociated with an ad cues as well as the

emotions and attitudes.

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Evaluating the respondent behaviour:

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Features of advertising Paid form Ideas, goods and services

Controlled Persuasive act Competitive act Non personal presentation Identified sponsor Mass communication media It is not neutral it is not unbiased

Informative act

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Purpose of advertising

Informing

Influencing

Reminding

Adding value

Assisting with other company efforts

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Role and functions of advertising Communication with the consumers Contribution to economic growth Stimulates demand

Develops brand preference Lower prices Brand image building Persuasion Catalyst for change

Strengthen other promotion mix elements Reduce costs Competitive weapon Innovation Growth of media

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Types of advertising

On the basis of geographical spread

On the basis of demand influence level

On the basis of timing of the response it elicits

On the basis of target group

On the basis of corporate philosophy

On the basis of media

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On the basis of geographical spread

National advertising: their target market is entirecountry. They select media with a country wide base.

Example could be : HUL, L7T, Escorts , Local advertising: small firms may like to restrict

their business to state or regional level. Some firmsfirst localise their marketing efforts and once

success has been achieved, they spread out to widerhorizons.

Example is Nirma washing powder initially sold onlyin Gujarat later it was sold to entire nations

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On the basis of target marketing Consumer advertising: the advertisements meant for consumers who buy the good

for themselves or for their households. EX: general print media, such as newspaperand magazines.

Industrial advertising: advts which are issued by the manufacturer/distributors to

the buyers of industrial products.it includes machinery and equipment , industrial intermediaries. Parts and components.

Trade advertising: advertisements which are directed by the manufacturers to thedistribution channel members, such as wholesalers or retailers are called tradeadvertising. The main objective is to promote the sales by motivating the distributionchannel members to stock more or to attract new retail outlets

Professional advertising: there are certain products where consumers will not aloneresponsible for buying the product but also the influence of other people will be there.

Ex: pharmaceuticals where decision is made by the doctors while the consumers arethe parents.

Same as in the case of construction industry(architects,civil engineers are decisionmakers)

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On the basis of demand influence level Primary demand: it is intended to affect the demand for a

type of product , not simply one particular brand of thatproduct.

Ex: if cigarette manufacturer attempts to increase the overalldemand for cigarettes with an advertising campaign extollingthe virtues of cigarette smoking in general, this would beprimary market demand

Selective demand: this demand is for a particular brand suchas charminar cigarettes surf detergent powder , rath vanaspati

or vimal fabrics, the marketers involved in selective demandadvertising attempt to establish a differential advantage andto acquire an acceptable sort if market.

They dont try to stimulate the demand for the product orservice.

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On the basis of corporate philosophy

Corporate advertising: it aims at building for afirm a positive public image.

Brand advertising: most advertisement is brandadvertising, designed to promote the sale or

reputation1. Informative brand advertising: it seeks to

develop an initial demand for a product .it isused in introductory stage of PLC.

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3/11/2015KIRAN. S ASSISTANTPROFESSOR, BGSIT,

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2. Persuasive brand advertising: to developdemand for a particular product or a brand isthe goal of persuasive product advertising. It isused in growth period and to some extent in the

maturity period of PLC3. Reminder oriented Brand advertising: the goal

of this type of advertising is to reinforce previouspromotional activity by keeping the brand name

in front of the public. It is used in maturityperiod as well as throughout the declining phaseof the product life cycle.


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4. Negative advertising: this type of advertisingdissuades target audience from purchasing suchproducts and services


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On the basis of timing of the responseit elicits Direct action advertising: it aims at generating

immediate response. Many retail messages , for

instance, request consumers to buy now. Otheradvertisements in the direct category containcoupons, and request the consumers to redeemthese.

Indirect action advertising: it does not attempt tobring about an immediate behaviour response,rather it attempts to create favorable attitudestowards the sponsor and his products or services.


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Surrogate advertising: its a new category ofadvertising . In this type of promotional effort,

the marketer promotes a different product. For example: the promotion of Bagpiper soda.

The firm is promoting Bagpiper whisky but

intentionally shows soda.


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On the basis of media

Audio advertising: it is done through personalannounce(systems), auto rickshaws, and four

wheeler.


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Visual advertising: it is done through popdisplays without text catalogues , leaflets, clothbanners, brouchers,electronic hoardings, simplehoardings and running hoardings


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Audio visual: it is done through cinema slides,movies, video clips, TV advertisements, cable TVadvertisements.

Written advertising: it is done through letters,fax messages, leaflets with text, brouchers,articles and documents, space marketing

features in newspapers.


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Internet advertising: the world wide web is used

extensively to promote products and services ofall genres.

For example: Bharat matrimony,

www.teleshop.com,www.asianskyshop.com


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Verbal advertising: they are used to advertisethoughts, products and services duringconferences, seminars and group discussionsessions. Kinesics also plays an important role in

this context.


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Miscellaneous Covert advertising: the product or service is used

in TV or a serial. There is no actual ad, just the

mention of the product in the movie. For example : tom cruise used the Nokia phone

in the movie minority report.

Institutional advertising: it tries to develop agoodwill for a company rather than selling aproduct or service


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Product advertising: it tries to sell a product. Itmay be aimed at the end user or at potentialrepresentatives and distributors.

It is further classified into :1. Pioneering advertising: it is usually done at theearly stage of product life cycle

2. Competitive advertising: it tries to develop

selective demand: demand for a specificmanufacturer's product rather than a productcategory.


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C.Reminder advertising:

Reminder advertising tries to keep the productsname before the public. It is useful when the

product has achieved the market domination.Here , the advertiser may use soft cell.


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Advertisings and marketing mix Product

Price

Place

promotion


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Role of advertising in marketing mix

The role of advertising in marketing are asfollows:

Advertising and product:

Advertising plays a vital crucial role for promotingthe product of the company.

1. functional feature: through advertising,marketer is able to inform about the variousfeatures of the product which make it morevariable


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Aesthetic design: by advertising , the consumerknow about the shape, size , design, colour

Advertising and price: price is an importantconsideration in buying decisions. Everyone of

us would like to know the price of a product forcomparison for comparison purposes beforedeciding to buy.

it plays a vital role for determining the value of

pricing factor. the factors are as follows.


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Advertising and place:place is one of themarketing mix component, which are concerned

with transportation, warehousing, inventorymanagement, channel management, andtransaction.


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Advertising gives information regarding thefollowing aspects of the place:

Number and location of retail outlet

Inventory extent and location

Distribution channel

Market coverage


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Advertising and promotion:

It can be understood from the following aspects

Advertising and personal selling

Advertising and sales promotion

Advertising and publicity

Advertising and public relations


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Advertising vs marketing mix

Basis of difference Advertising Marketing mix

Meaning It is any paid form of nonpersonal presentation of ideas,goods or services

Marketing mix is a tool todesign and implementvarious marketing strategiesin order to meet and exceed

the goals and objectives of anorganization

Use It is used to inform, promote Used to formulate marketingstrategy

Scope Increasing sales, building

brand image, passingmessages

The more emphasis is

towards formulatingstrategies

Emphasis More focus is onincreasing sales

More focus is onformulating strategies

Supremacy Major part of promotion It is the main or overall


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Advertising appeals The most important types includes emotional

and rational messages.

1. Rational /logical appeal: rationalappealas the name suggest aims to focus on theindividual functional, or practical needs forparticular products and services.

the different rational appeals are:

Price appeal: a favorable price appeal makesthe price offer the dominant point of message.


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Quality appeal: the ad copy emphasis on thequality of the product

Ex: the advertisement of Hidesign(premiurleather products)

Feature appeal

Competitive advantage appeal News appeal

Product/service popularity appeals

Emotional appeal


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2. Emotional appeal:

Type of emotional appeal:

Fear appeal: life insurance companies nothaving insurance when he dies. Shampoo hairfall ads and tooth paste ads

Humour appeal: it is an excellent way toattract the viewers attention and also inachieving sales


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Sex appeal: deodorants and beauty products

Musical appeal: airtel,taj, Vodafone old add. Nescafe

add Pride appeal: status and recognition: using raymond

products is a pride and using rolls royce is a statusissue

Affection appeal: products of baby care Comfort appeal: fans coolers air conditioners

Personal apppeal: safety , fear, humour, joy,happiness , sentiment, pleasure , comfort, ambition


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Social appeal

Adventure appeal: Mahindra jeep

Youth appeal: fastractk


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Advertisement appeal in various stages

of product life cycle Introduction

Growth

maturity

Decline


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Advertising appeals in introduction stage ofPLC: when new products introduce into the market, at this


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module 1 economics for managers

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