lession 11 - inter grated communication

8/3/2019 Lession 11 - Inter Grated Communication

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` This is a concept under which the company

integrates and coordinates its many

communication tools also known as promotional

tools(advertising, personal selling, salespromotion, public relations, direct marketing) to

deliver clear, consistent and compelling messages

about the organization and its products.



` Provides an opportunity to cut communication

costs. Since IMC emphasizes operational

efficiency it becomes easy to avoid unnecessary

and hence save on communication costs.. Has the potential to produce synergistic and more

effective communications. This often is a result of

clear an communication consistency



` Can deliver competitive advantage through clearer

positioning. IMC attempts to unify the company¶s

image as it is shaped by thousands of company

activities hence positioning much clearer.

` Provides for increased employee participation and

motivation. Since IMC Involves everyone in the

organization including employees in the development

and implementation of marketing communication

programs, participation and motivation of employees isenhanced.



` Causes management to review its communication

strategy. IMC emphasizes attainment of results

for every marketing communication effort.

Therefore at the end of every communicationeffort management is forced to review the impact

of their communication effort.

` Helps foster focus on the customer. IMC has the

interest of the customer at heart and all messagesare tailored to customer needs.



` Provides a benchmark for the development of

communication activities. IMC normally sets

standards that form the bases for the development

of marketing communication activities.` Through IMC the company is able to work out the

roles that the various promotional tools will play

and the extent to which they will be used.



` Enables coordination of marketing communication

activities. IMC carefully coordinates the

promotional activities and the timing of when

major campaigns take place.` Has led to increased accountability. IMC places

responsibility in someone¶s hands where none

existed before.



` Encourages centralization and formal/bureaucratic

procedures. IMC requires that all marketing

communication activities be centralized or

coordinated from a central place, which leads tounnecessary bureaucracy,

` Time wastage. IMC requires increased

management time seeking agreement from all

parties involved.



` Kills creativity in marketing activities. The

tendency to standardization might negate or dilute

creative opportunities

` Can lead to resistance to change. IMC requirescultural change from employees and encourages

resistance.

` Damage to brand reputation. IMC has the

potential to severely damage a brand¶s reputationif incorrectly managed.



` Sometimes it is impractical to implement. IMC

suggests uniformity and single message that may

not be possible in some situations.

` It is not possible with global brands. There isneed to adopt global brands and messages to

local conditions which poses a big challenge as

getting a uniform message for all consumers in the

globe is not an easy task.



` ADVERTISING

` -Advertising is any paid form of non-personal presentationand promotion of ideas, goods, or services by an identifiedsponsor.

` -Advertising is used mostly by business firms, by a widerange of not-for -profit organizations, professionals andsocial agencies. Advertising is a good way to inform andpersuade the target audience.

` Important decisions when developing an advertisingprogram



` Setting Advertising Objectives

`

` These objectives should be based on past decisions

about the target market, positioning and marketingmix. An advertising objective is a specific

communication task to be accomplished with a

specific target audience during a specific period of

time. Advertising objectives can be classified by

primary purpose whether the aim is to inform,persuade or remind.

`



` Informative advertising: Is used heavily when

introducing a new product category. In this case,

the objective is to build primary demand.

` Persuasive advertising: This advertising becomesmore important as competition increases. Here

the company¶s objective is to build selective

demand.



` Building brandpreference

` Encouragingswitching to your brand

` Changing customersperception of product

attributes

` Persuadingcustomers topurchase now

` Persuadingcustomers to receivea sales call



Reminder Advertising

Reminding consumersthat the product may

customers that theproduct may be neededin the near future

Reminding consumers

where to buy it

Keeping it in customersmind during off season

Maintaining its top-of-mind-awareness



Setting the advertising budget

A brands advertising budget often depends on its stage in

the product life cycle. For example new products typicallyneed large advertising budgets to build awareness and togain consumer trial. While mature brands on the otherhand usually require lower budgets as a ratio to sales.

-Market share also impacts the amount of advertisingneeded. Building the market or taking share from

competitors requires large advertising spending than doessimply maintaining current share. Low-share brandsusually need more advertising spending as a percentage of sales.



Brands in a market with many competitors

and high advertising clutter must be

advertised more heavily to be noticed abovethe noise in the market.

-Undifferentiated brands those that closely

resemble other brands in their product class

may require h



heavy advertising to set them apart.

When the product differs greatly from

competitors, advertising can be used to point outthe differences to consumers.

No matter what method is used, setting theadvertising budget is no easy task. So many

factors affect advertising effectiveness, somecontrollable and others not. Most managers relyon judgment along with more quantitativeanalysis when setting advertising budgets.



Developing Advertising Strategy

Advertising strategy consists of two major

elements:

Creating advertising messages

Selecting advertising media.



Creating the advertising

message In the past creative department first created good

advertisements and then the media departmentselected the best media for carrying these

advertisements to the desired target audiences. Thisoften caused friction between creatives & mediaplanners. Today however, media fragmentation,soaring media costs, and more-focused targetmarketing strategies have promoted the importance

of the media-planning function. More & moreadvertisers are cultivating a closer harmony betweentheir messages and the media that deliver them.

-



No matter how big the budget, advertising canonly succeed if advertisements gain attentionand communicate well.

-Good advertising messages are especiallyimportant in todays costly and clutteredadvertising environment

-To gain and hold attention, todays advertisingmessages must be better planned, moreimaginative more entertaining, and morerewarding to consumers.



Message Strategy

The first step in creating effective advertisingmessages is to plan a message strategy i.e. to decidewhat general message will be communicated toconsumers, the purpose of advertising is to getconsumers to think about or react to the product or

company in a certain way. People will react only if they believe that they will benefit from doing so.Thus developing an effective message strategybegins with identifying customers benefits that canbe used as an advertising appeal.



Message strategy statements tend to beplain, straightforward outlines of benefits andpositioning points that the advertiser want tostress. The advertiser must next develop acompelling creative concept or big idea thatwill bring the message strategy to life in adistinctive and memorable way. The creative

concept will guide the choice of specificappeals to be used in an advertisingcampaign.



Advertising appeals should have threecharacteristics:

1). They should be meaningful, pointing outbenefits that make the product more desirableor interesting

2. The appeals must be believeable consumers

must believe that the product or service willdeliver the promised benefits. 3. Lastly appeals should also be distinctive

they should tell how the product is better thanthe competing brands.



Message execution

This is where the advertiser now turns the bigidea into an actual ad execution that willcapture markets attention and interest. Thecreative people must find the best style, tone,words, and format for executing themessage. Example of execution styles are:Lifestyle: This style shows how a product fits

in with a particular lifestyle. Fantasy; This style creates a fantasy around

the product, or its use.



Mood or image: This style builds a mood or image aroundthe product such as beauty, love or serenity.

Musical: This style shows one or more people or cartooncharacters singing about the product.

Personality symbol: This style creates a character thatrepresents the product.

Technical expertise: This style presents shows thecompanys expertise in making the product.

Scientific evidence: This style presents survey or scientific

evidence that the brand is better or better liked than one ormore other brands.

-Testimonial evidence or endorsement; This style featuresa highly believable or likable source endorsing the product.



The advertiser also must choose a tone for the ad, he/shemust use memorable and attention-getting words.

Finally format elements make a difference in an ads impactas well as in its costs.

The illustration is the first thing the reader notices- it mustbe strong enough to draw attention. The headline musteffectively entice the right people to read the copy.

Finally the copy the main block of text in the ad must besimple but strong & convincing. These three elementsmust effectively work together.



Selecting AdvertisingMedia

The major steps in media selection are:

Deciding on reach, frequency, and impact

Choosing among major media types Selecting specific media vehicles

Deciding on media timing



Deciding on Reach, frequency & Impact

To select media, the advertiser must decide on the reach &frequency needed to achieve advertising objectives.

- Reach is a measure of the percentage of people in thetarget market who are exposed to the ad. Campaign duringa given period of time. (For example the advertiser mighttry to reach 70% of the target market during the first 3months of the campaign.

Frequency is a measure of how many times the averageperson in the target market is exposed to the message.



The advertiser also must decide on the desired mediaimpact- the qualitative value of the message exposurethrough a given medium. The advertiser also must decideon the desired media impact- the qualitative value of the

message exposure through a given medium. The advertiser also must decide on the desired media

impact- the qualitative value of a message exposurethrough a given medium. For example, for products thatneed to be demonstrated, message on television may havemore impact than messages on radio because television

uses sight and sound. It is important to know that the advertiser seeks , the

higher the advertising budget will have to be.



For example, for products that need to be

demonstrated, message on television may

have more impact than messages on radiobecause television uses sight and sound.

It is important to know that the advertiser

seeks , the higher the advertising budget will

have to be.



The media planner looks both at the total

costs of using a medium and, at the costs per

exposure of reaching specific targetcustomers. Recently the network television

costs have gone up and audiences too have

shrunk thus we see many advertisers are

looking for new ways of reaching consumers.



Profiles of Major Media Types

Medium Advantages Limitations

Newspapers Flexibility, timeliness, good local market Short life, poor reproduction

coverage broad acceptability high

believability quality, small pass-along

audience

Television Good Mass-market coverage: low cost per High absolute costs, high

Exposure, combined sight, sound and clutter, fleeting exposure

Motion; appealing to the senses less audience selectivity

Direct Mail High audience selectivity; flexibility Relatively high cost per

no ad competition within the same per exposure, junk mail image

Radio Good local acceptance; high Audio only, fleeting exposure,

geographic & demographic selectivity fragmented audiences

low cost low attention (³the half-heard´Medium)

Magazines High geographic & demographic selectivity Long ad purchase lead time

Credibility & prestige; high quality high costs, no guarantee of

reproduction, long life and good position

pass-along readership

Outdoor Flexibility; high repeat exposure; low cost Little audience selectivity

Low message competition; good creative limitations

Positional selectivity

Internet High selectivity; low cost; immediacy; Small, demographically

Interactive capabilities skewed audience;

relatively low

impact, audience controls

exposure



Selecting SpecificMedia Vehicles

The media planner must choose the best media vehicles specific media within each general media type e. broadcastconsider, KTN, CITIZEN, KBC, K 24, NATION.

-The media planner must consider the costs of producingads for different media. They also must compute the costper thousand persons reached by a vehicle. For example if

a full-page, four-colour advertisement in Nation costs $200,000 and Nations readership is 3.1 million people, thecost of reading each group of 1000 persons is about 864.



Deciding onMedia Timing

The advertiser must also decide how to schedule

the advertising over the course of a year.Suppose sales of a product peak in Decemberand drops in March. The firm can vary itsadvertising to follow the seasonal patternOr.

The advertiser also has to choose the pattern of the ads. Continuity means scheduling ads evenlywithin a given period, while pulsing meansscheduling ads unevenly over a give time period.



-Sale effects of advertising are often harder to measure than thecommunication effects. Sales are affected by many factorsbesides advertising such as product features, price, andavailability.

-O

ne way to measure the sales effect of advertising is tocompare past sales with past advertising expenditures.

-Another way is through experiments. For example to test theeffect of different advertising spending levels, Coca-Cola couldvary the amount it spends on advertising in different marketarea, half the normal amount in a third area. If the three marketareas are similar and if all other Marketing efforts in the area arethe same, then differences in sales in the three areas could berelated to advertising level.

-It is important to know that more complex experiments could bedesigned to include other variables, such as difference in the adsor media used.



Sales Promotion

Role of sales promotion

1. Gain customers and convert them into

regular users particularly for new andimproved products

2. Widen the distribution of a product

3. Create a new interest in an established

products

4. Identify and attract new customers



6. Increase the total number of users for an

established brand.

7. Educate customers regarding productsimprovements

8. Boost sales during low seasons

9. To combat or offset competition

10. Improve the public image of the firm



3. Advertising efficiency has declined this is

because of rising costs, media clutter, and

legal restraints4. Growing power of retailers retailers are

demanding more deals from manufacturers.

5. Declining brand loyalty consumers have

become less loyal and are purchasing moreon the basis of price, value and convenience.



Increased promotion sensitivity marketers

are making greater use of sales promotion

because consumers respond favourable tothe incentives it provides.

7. Brand proliferation a major aspect of many

firms marketing strategies over the past

decade has been the development of newproducts.



8. Short term focus many business people believe theincrease in sales promotion is motivated by marketingplans and reward systems geared to short termperformance and immediate generation of sales volume.

9. Increased accountability in addition to pressuring theirmarketing or brand managers and sales force to productshort-term results, many companies are demanding toknow what they are getting for their promotionalexpenditures. Sales promotion is more economicallyaccountable than advertising.

10. Clutter a promotional offer in an ad can break throughthe clutter that is prevalent in most media today. A premium offer may help attract consumers attention to anad as will a contest or sweepstakes



Sales promotion tools

Consumer promotion tools

Samples offers to consumers of a trial

amount of a product. Some samples are freewhile for others the company charges a smallamount to offset the cost

Coupons certificates that give buyers a

saving when they purchase a specifiedproduct.



Cash refund offers (rebates) offers to refundpart of the purchase a specified product.

Price packs (cents-off-deals) reduced pricesthat are directly marked by the producerdirectly on the label or package.

Premiums are goods offered either free or

at a low cost as an incentive to buy a product Advertising specialties are useful articles

imprinted with an advertisers name given asgifts to consumers i.e. calendars, caps.



Patronage rewards - are cash or otherrewards for the regular use of a certaincompanys products or services.

Point of purchase (POP) promotions theseinclude displays and demonstrations thattake place at the point of purchase of sale.

Contests, sweepstakes and games arepromotional events that give consumers thechance to win something such as cash, tripsor goods by luck or through extra efforts.



Trade promotion tools

Contests & incentives these are aimed at

stimulating greater selling effort and supportfrom resellers management or salespersonnel.

Sales training programs manufacturers

provide sales training to retail sales people tomake them more knowledgeable on the

products.



Cooperative advertising this is where the

cost of advertising is shared by more than

one party i.e. retailers may advertiser amanufacturers product and the individual

manufacturers reimburse the retailers for

their portion of the ad.



Advantages of sales

promotion 1. It stimulates positive attitudes towards the

product

It gives extra incentive to the customers tomake a purchase

It gives direct inducement to immediate

action now rather than later

It has flexibility and can be used at any stageof a new product introduction



Disadvantages of sales

promotion Sales promotion has temporary and short life

not exceeding three months. Sales

promotion alone cannot build brand loyalty

Sales promotion are only supplementarydevices to supplement selling efforts of other

promotion tools.

They are non-recurring in their use. Theyhave seldom re-use values



Too many sales promotions may affect

adversely the brand image, suggesting its

lack of popularity or overstocking by acompany.

Advertising agencies accord low status to

sales promotion and usually employ junior

staff for sales promotion so that they may betrained for creative jobs.



Public Relations

Role played by public relations

1. Makes people aware of the companys

products, brands and activities2.Maintains a certain level of visibility with

the public

3. Promotes a particular image such as a

sporting company a progressive companyetc.

4.To overcome negative images.



Functions of public

relations1. Press relations on press a gentry creating

and placing newsworthy information in the

media to attract attention to a person,product or service.

2. Product publicity publicizing specific

products

3. Public affairs building and maintainingnational or local community relations



4. Lobbying building and maintaining relationswith legislators and government officials toinfluence legislations and regulation

5. Investor relations maintaining relationshipswith shareholders and other in the financialcommunity

6. Development this is public relations withdonors or members of non-profit organizationto gain financial or volunteer support.



Public relations tools

PR professionals use several tools thatinclude

1. News PR professional find and createfavourable news about the company, itsor people

2. Speeches - company executives mustfield questions from the media or givetalks at trade associations or salesmeetings.

Introducing a product with little or no

advertising



Audio visual materials such as films, slide

and sound programs, video and video and

audio cassettes.

Corporate identify materials include logos,stationary, brochures, signs, business forms,

business forms, business cards, buildings,

uniforms, company cars and trucks Social responsibility activities improve

public goodwill by contributing money and

time to public service activities



PR process

The PR process has four major component.

These are:

1. Research Gathers and interprets information. This

component includes every activity that

provides information pertinent to the

organizations relations with the public



2. Planning: Defines the PR problem anddetermines how to solve it. This componentinvolves deciding what should be done, justhow it should be done, where and when andwhy it should be done. Planning involvesdetermining the objectives to be attained.

3. Communication: Carries out messages to thepublics involved. This component involves

selection and proper use of thecommunication channels; deciding what tosay how to say it, when and where to say it,

to whom it should be said and, and finallymaking the statement.



Evaluation: Examines what is beingaccomplished. It is the process of checkingthe PR program and all its parts to learn

whether it is worth what is costs, whichthings are effective and which are not.

Advantages of Public relations

1. Credibility the fact that media are notcompensated for providing the informationmay lead receivers to consider news aboutorganizations and products more truthfuland credible.



2. Cost in both absolute and relative terms, thecost of PR is very low, especially the possibleeffects are considered.

3. Avoidance of clutter because they aretypically perceived as news items, publicrelations messages are not subject to theclutter of ads.

4. Ability to reach specific groups becausesome products appeal to only small marketsegments, the best way to communicate to

these groups is through public relations.



5. Image building effective public relations helpdevelop a positive image for the organization.

6. Lead generation information about technologicalinnovations, medical break through, and the like

results almost immediately in a multitude of inquiries.

Disadvantages of public relations

1. Public relations have the potential for notcompleting the communication process. Publicrelations efforts are never associated with

their sponsors in the public mind. WhilePR messages can break through the clutter of

commercials, the receiver may not makethe connection to the source.



2. Inconsistent communications when PR

and marketing departments operate

independently, there is danger of inconsistent communications,

redundancies in efforts and so on.



Differences between publicity

and public relations1. Publicity is typically a short-term strategy,

while PR is a concerted long-term programextending over a period of time.

2. Public relations is designed to provide positiveinformation about the firm or its agent. Whilepublicity, on the other land, is not always

positive and is not always under the control of,or paid for by the organization. Bothpositive and negative publicity often originatesfrom sources other than the firm.



2. When a product is tailored to meet

customers specification. It helps attend

to individual customer tastes andpreferences.

3. When demonstration is required. This can

be made possible through personal selling

4. When the value of the product is high, theseller may want to use personal selling to

avoid the risk of loosing the item if it were

to use other methods.



When the organization can afford to finance

the sales force then personal selling is

appropriate.

When the market is concentrated in one area,the cost involved in accessing the market is

reduced.

Role played by personal selling

1. Creates demand in such a way that is

precedes supply.



Tasks performed by personal

selling 1. Prospecting finding new customers

2. Communication providing information

to customers 3. Selling the art of influencing customers

to buy

4. Information gathering reporting

information about the market

5. Servicing handling customer complaints



6. Allocating availing products during ashortage

7. Shaping developing relationships with majorcustomers

Advantages of personal selling

1. Allowing for the two way interaction the abilityto interact with the receiver allows the sender todetermine the impact of the message

2. Tailoring the message because of the directinteraction, messages can be tailored to thereceiver.

3. Lack of distraction in personal selling since a one-to-one presentation is conducted, the likehood of

distractions is minimized and buyer is paying close



4. Involvement in the decision process through consultative selling andrelationship marketing, the sellerbecomes more of a partner in the buyingdecision process, acting in conjunction withthe buyer to solve problems.

5. Source of research information salesrepresentatives can collect information on

competitors products and services,promotions, pricing and so on firsthand.In addition, they can learn about the buying

needs and wants of customers andpotential customers.



Opportunity for actual demonstration of the

product or its use is recognized as the most

powerful means of convincing and onlypersonal selling provides this opportunity

Disadvantages of personal selling

1. Inconsistent messages there is lack of standardized message as the salespeople

may alter the marketing message in ways

the marketer did not intend.



Forms of Direct Marketing

DirectMail Marketing

Direct mail marketing involves sending an offer,

announcement, reminder, or other item to aannouncement, reminder, or other item to a

person at a particular address. Using highly

selective mailing lists, direct marketers send outmillions of mail pieces each year letters,catalogues, ads, brochures, samples and CDs

and DVDs.



Direct mail is well suited to direct, one-to-onecommunication. It permits high target-marketselectivity, can be personalized, is flexible and

allows easy measurement of results. Althoughdirect mail costs more than mass media such astelevision or magazines, per thousand peoplereached, the people it reaches are much betterprospects. Direct mail has proved successful inpromoting all kinds of products, from books,music, DVDs, magazine subscriptions toinsurance, gift items, clothing, gourmet foodsand industrial products.



Charities also use direct mail heavily to raise

billions of dollars each year. Direct mail

industry constantly seeks new methods andapproaches. For example CDs and DVDs are

now among the fastest-growing direct mail

media. Other forms of delivery have also

become popular such as fax mail, voice mail,and email.



CatalogMarketing

This is direct marketing/communication throughprint, video or electronic catalogs that aremailed to select customers and are made

available in stores or presented online. Theinternet age has enabled more and morecatalogs to go digital. Web-based catalogspresent a number of benefits versus printed

catalogs. They save on production, printing andmailing costs. Whereas with print-catalog spaceis limited, online catalogs can offer an almostunlimited amount of merchandise.



TelephoneMarketing.

This is where telephones are used to selling

directly to customers. Properly designed andtargeted telemarketing has its benefits.

Including purchasing convenience and

increased product and service information.

Mobile PhoneMarketing With many people subscribing to wireless

services many marketers view mobile phones

as the next big direct marketing medium.



Marketers of all kinds are now integratingmobile phones into their direct marketing cellphone promotions include everything from ring-

tone, give always, mobile games and ad-supported content to text-in contests andsweepstakes.

OnlineMarketing

Online Marketing is the fastest-growing form of direct marketing. Widespread use of the internetand other powerful new technologies have had adramatic impact on both buyers and themarketers who serve them.



OnlineMarketingDomains:

There are four major online marketing domains:

a). The Business toConsumer online

Marketing (B2C): This involves sellinggoods and services online to finalconsumers.

b) Business to Business online marketing

(B2B)Using B 2 B websites, email, online productcatalogs, online trading networks and otheronline resources to reach new business

customers, serve current customers more



c)Consumer-to-consumer (C2C) online

marketing. Online exchanges of goods

and information between finalconsumers.

d)Consumer-to-business (C2B) online

marketing

Exchanges in which consumers search outsellers, learn about their offers and initiate

purchases sometimes even driving

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lession 11 - inter grated communication

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