Integrated marketing communication & case study on Bajaj Pulsar

Introduction In most of the companies the promotional function was dominated by mass media, advertising for many years. Companies relied primarily on their advertising agencies for guidance in nearly all the areas of marketing communication. Most marketers did use additional promotional and marketing communication tools but sales promotion and direct marketing agencies as well as package design firms were generally viewed as auxiliaries services and often used on a per project basis. Public relations agency was used to manage the organisations publicity, image and affairs with the relevant publics on an on going basis but they were not viewed as integral participants in the marketing communication process. Many marketers built strong barriers around the various marketing and promotional functions and planned and managed them as separate practices with the different budgets, a different view of the market with different goals and objectives. But these companies failed to recognise that the wide range of marketing and promotional tools must be coordinated to communicate effectively and present a consistent image to target market. During the 1980s, many companies began taking a broader perspective of marketing communication in seeing the need for the more strategic integration in the areas of sales promotion, direct marketing an public relation which began challenging the advertising role as the dominant form of marketing communication{IMC}, which involves coordinating the various promotional elements and other marketing activities that communicate with the firms customers Defination Integrated marketing communication is a strategic business process used to plan, develop, exec cute and evaluate coordinate, measurable persuasive brand communications programs over time with customers consumers, prospectus, audiences. The goals to generate both short term financial returns and build long-term brand and shareholder value. AN OVERVIEW OF INTEGRATED MARKETING COMMUNICATION Advertising has much strength like reaching mass audiences, creating awareness, building preference, etc, but it also has major weaknesses like targeting individual consumers, making them believe a message and pushing them to action. Thus, it has to be combined with that of other communication elements such as direct marketing, sales promotions, and public relation. The various promotional tools involved in product promotion comprise the sales promotion, public relations, and direct marketing. Integrated Marketing Communication (IMC) is the judicious and efficient use of the promotional tools so that a universal, clear, and effective promotional message is communicated amongst the target audience. The concept includes online and

offline marketing channels. Online marketing channels include any e-marketing campaigns or programs, from search engine optimisation SEO, pay-per click, affiliate, and email, banner to latest web related channels for webzine, blog, traditional print (newspaper, magazine), mail order, public relations, industry relations, billboard, radio and television. The role of IMC in Branding: One of the major reasons for the growing importance of the IMC over the past decade is that it plays a major role in the process of developing and sustaining brand identity and equity. Building and properly managing brand equity has become a priority for companies of all the sizes, in all types of industries, and in all types of markets. With more and more products and services competing for consideration by customers who have less and less time to make choices, well-known brands have a major competitive advantage in todays market place. Building and maintaining brand identity and and equity requires the creation of well known brands that have favourable, strong and unique association in the minds of the consumer. There are five basic tools of integrated marketing Advertising: This tool can get your messages to large audiences efficiently through such avenues as radio, TV, Magazines, Newspapers (ROP), Internet, Billboards and other mobile technological communication devices. This method can efficiently reach a large number of consumers, although the costs may be somewhat expensive.

Sales Promotion: This tool is used through coupons, contests, samples, premiums, demonstrations, displays or incentives. It is used to accelerate short-term sales, by building brand awareness and encouraging repeat buying.

Public Relations: This integrated marketing communications tool is initiated through public appearances, news/press releases or event sponsorships, to build trust and goodwill by presenting the product, company or person in a positive light.

Direct Marketing: This tool will utilized email, mail, catalogs, encourage direct responses to radio and TV, in order to reach targeted audiences to increase sales and test new products and alternate marketing tactics.

Personal Selling:

Setting sales appointments and meetings, home parties, making presentations and any type of one-toone communication, to reach your customers and strengthen your relationship with your clients, initiate this IMC tool.Integrated Marketing Examples Nike is a great example of a company that has fully embraced the concept of integrated marketing. Their integrated approach includes traditional advertising (billboard, magazine, and television); sponsoring sporting events and players such as the Super bowl and Tiger Woods; and engaging in online marketing initiatives by allowing consumers to customize their Nike shoes. They also spend a great deal of money in search marketing. Nike's approach allows them to communicate their message consistently across all media outlets; and at the same time share that message at every customer touch point; that is, use Nike products and you will increase your performance regardless of what sport you are involved in. Another example is HP's "The Computer is Personal Again" campaign. They utilized many forms of media with great consistency, and capitalized o neach of the media's individual strengths. Benefits Of IMC Although Integrated Marketing Communications requires a lot of effort it delivers many benefits. 1. It can create competitive advantage, boost sales and profits, while saving money, time and stress. 2. IMC wraps communications around customers and helps them move through the various stages of the buying process. This Relationship Marketing cements a bond of loyalty with customers. The ability to keep a customer for life is a powerful competitive advantage. 3. IMC also increases profits through increased effectiveness. 4. Carefully linked messages also help buyers by giving timely reminders, updated information and special offers which, when presented in a planned sequence, help them move comfortably through the stages of their buying process 5. IMC also makes messages more consistent and therefore more credible.. 6. Finally, IMC saves money as it eliminates duplication in areas such as graphics and photography since they can be shared and used in say, advertising, exhibitions and sales literature.

Barriers to IMC

1. Functional silos: Rigid organisational structures are infested with managers who protect both their budgets and their power base. Sadly, some organisational structures isolate communications, data, and even managers from each other. For example the PR department often doesnt report to marketing. The sales force rarely meets the advertising or sales promotion people and so on. Imagine what can happen when sales reps are not told about a new promotional offer

2. Stifled Creativity: It shouldnt matter whose creative idea it is, but often, it does. An advertising agency may not be so enthusiastic about developing a creative idea generated by, say, a PR or a direct marketing consultant. IMC can restrict creativity. No more wild and wacky sales promotions unless they fit into the overall marketing communications strategy. 3. Time Scale Conflicts: Add different time scales into a creative brief and youll see Time Horizons provide one more barrier to IMC. For example, image advertising, designed to nurture the brand over the longer term, may conflict with shorter term advertising or sales promotions designed to boost quarterly sales. 4. Lack of Management Know- how: A survey in 1995, revealed that most managers lack expertise in IMC. But its not just managers, but also agencies.

GOLDEN RULES:

Despite the many benefits of Integrated Marketing Communications (or IMC); there are also many barriers. Heres how you can ensure you become integrated and stay integrated 10 Golden Rules of Integration

1. Get Senior Management Support for the initiative by ensuring they understand the benefits of IMC. 2. Integrate at Different Levels of management. Horizontally ensure that all managers, not just marketing managers understand the importance of a consistent message whether on delivery trucks or product quality. 3. Ensure the Design Manual or even a Brand Book is used to maintain common visual standards for the use of logos, type faces, colours and so on. 4. Focus on a clear marketing communications strategy. 5. Start with a Zero Budget. Start from scratch. Build a new communications plan. 6. Think Customers First. Wrap communications around the customers buying process. Identify the stages they go through before, during and after a purchase 7. Build Relationships and Brand Values. All communications should help to develop stronger and stronger relationships with customers. 8. Develop a Good Marketing Information System which defines who needs what information when.

9. Share Artwork and Other Media. Consider how, say, advertising imagery can be used in mail shots, exhibition stands, Christmas cards, news releases and web sites.

10 Be prepared to change it all. Learn from experience. Constantly search for the optimum communications mix. Importance of objectives :

Advertising and promotional objectives are needed for several reasons, including the functions they serve in communication, planning and decision-making and measurement and evaluation. Communications: Many people are involved in the planning and development of an integrated marketing communications programmed on the client side as well as in various promotional agencies. The advertising and promotional programme must be co-coordinated within the company, inside the adagency, and between the two. Any other parties involved in the promotional campaign, such as the public relations or the sales promotion firms, research specialist or media buying services must also know what company hopes to accomplish through its marketing communication programme. Planning and Decision Making: when the promotional objectives are specific they guide the development of the integrated marketing communications plan. All the phases of the firms promotional strategy should be based on the established objectives, including budgeting, creative and media decisions as well supported programmes such as direct marketing, public relations, sales promotion or reseller support. Decision making becomes easier if the objects are meaningful. Measurement and evaluation of Results: one of the important reasons for setting specific objectives is that they provide a benchmark against which the success or failure of the promotional campaign can be measured. Without specific objectives, it is extremely difficult to determine what the firms advertising and promotional efforts accomplished. The promotional planners provide measures that can be used to evaluate the effectiveness of the marketing communication programme. Comparing actual performance against the measurable objectives is the best way to determine if the return justifies the expense. Promotional Objectives:

To increase brand awareness by 25%, Build Awareness about the product. Tell a customer from awareness of a product to making a purchase can present a significant challenge. Provide Information, Stimulate Demand, once a purchase is made, a marketer can use promotion to help build a strong relationship that can lead to the purchaser becoming a loyal customer. For instance, many retail stores now ask for a customers email address so that follow-up emails containing additional product

information or even an incentive to purchase other products from the retailer can be sent in order to strengthen the customer-marketer relationship. Communications Objectives:

Some common marketing communication objectives include: 1. Create a brand awareness for your company 2. Defining a need the product or service can fulfil 3. Encouraging action from the target Sales Objectives:

Many managers believe that monies spent on advertising and other forms of promotion should produce measurable results, such as increasing sales volume by a certain percentage or increasing the brands market share. Advertising Strategies: Information, Dissemination/Persuasion: comparative ads attempt to get consumers to believe that the sponsoring product is better. Although these are frequently disliked by Americans, they intend to be among the most effective ads in the U.S.comparative advertising is illegal in some countries and is considered very inappropriate culturally in some societies, especially in Asia.

Fear appeals: try to motivate consumers by telling them the consequences of not using a product. Mouthwash ads, for example, talk about gingivitis and tooth loss can result from poor oral hygiene. It is important, however, that a specific way to avoid the feared stimulus be suggested directly in the ad. thus, simply by using the mouthwash advertised, these terrible things can be avoided. Classical conditioning: a more favourable brand image can often be created among the consumer when an association to a liked object or idea is created. For e.g., an automobile can be paired with a beautiful woman or a product can be shown in a very upscale setting.

Humour Appeal: the use of humour in advertisements is quite common. this method tends not to be particularly useful in persuading the consumer.however,more and more advertisers find themselves using humour in order to compete for the consumers attention.often,the humour actually draws attention away from the product-people will remember what was funny in the ad but not the product

that was advertised. Thus, for ads to be effective, the product advertised should be an integral part of what is funny.

Repetition: whatever specific objective is sought, repetition is critical. This is especially the case when the objective is to communicate specific information to the customer. Advertising messages, even simple ones are often understood by consumers who have little motive to give much attention to advertisements to which they are exposed. Therefore, very little processing of messages is likely to be done at any one time of exposure.

Celebrity Endorsements: celebrities are likely to increase the amount of attention given to an advertisement. However; these celebrities may not be consistently persuasive. The elaboration likelihood model discussed below identifies conditions when celebrity endorsements are more likely to be effective. DAGMAR: It means Defining Advertising Goals for Measuring Advertising Effectiveness. It was put forward by Russell H.Colley.Dagmar tells that advertising has to perform a particular communication task and the task has to be accomplished among a well defined audience within a specified period of time. Following are the steps, Awareness: an individual starts at some point by being unaware of a brands presence in the market. The initial communication task of the brand is to increase consumer awareness of the brand.Brand Comprehension: Knowledge about the product or the organization is necessary. This can be achieved by providing specific information about key brand attributes. In attempting to persuade people to try a different brand of water, it may be necessary to compare the product with other mineral water products and provide an additional usage benefit, such as environmental claims. The ad of Ganga mineral water, featuring Govinda, which banked on the purity aspect. They related the purity of the water with that of river Ganga. Conviction: By creating interest and preference, buyers are moved to a position where they are convinced that a particular product in the class should be tried at the next opportunity. To do this, audiences beliefs about the product have to be moulded and this is often done through messages that demonstrate the products superiority over a rival or by talking about the rewards as a result of using the product. For e.g., many ads like Thumbs Up featured the reward of social acceptance as grown up. It almost hinted that those who preferred other drinks were kids. Action: involves some move on the part of the buyer, such as trying a brand for the first time, visiting showroom or requesting information. For eg, Tupperware, Aqua Guard, are famous in Indian cities as a result of its personal selling efforts.

Concept of DAGMAR:

o A Communication Task : An advertising goal is a specific communication task, to be accomplished among a definite audience, in a given period of time.

o A specific Task: The second importance concept of DAGMAR approach is that the advertising goal should be specific.

Measurable Task : To indicate exactly what appeal or image is to be communicated and to specify the measurement procedure

Benchmark : its a standard or a point of reference which can be used to determine the success or failure of an ad campaign. President Lincoln has been quoted as saying, If we could first know where we are & whither we are tending, we could better judge what to do and how to do it. Benchmarks can s uggest how a certain goal can best be reached.Target Audience: its important to define the target audience.e.g. When a new brand of fashion garments are introduced, a common consumer will respond much differently as compared to a consumer who maintains a certain lifestyle.

Time Period : in setting advertising objectives time period should be specified within which the objectives must be achieved. The time period can range from a few days to a year or more. Most of the ad campaigns specify time periods for a few months to a year depending upon the situation and type of response expected.

Written Goals : Finally, goals should be committed to paper. Limitations of DAGMAR : Sales Oriented Performance : DAGMAR approach is considered to be successful if the sales increase and it is considered as a failure if increase in sales is not achieved.

Partial Assessment : the DAGMAR approach assesses the impact of ad campaign in a quantitative term, it does not explain how to improve qualitative representation.

Unsuitable to Small Advertising: only large advertisers with financial stability can allocate funds to collect the information. Small firms cannot afford to do it.

Non-Comprehensive Study : it is not necessary that a consumer will go through the pre-defined steps in the response hierarchy model before deciding to buy, he may have impulsive purchaser.DAGMAR does not explain impulsive purchaser. CASE STUDY: On Bajaj Pulsar Bajaj Pulsar is a motorcycle brand owned by Bajaj Auto in India. The two wheeler was developed by the product engineering division of Bajaj Auto in association with motorcycle designer Glynn Kerr Tokyo. For our practical analysis we met Mr.Atul who is the Supervisor of Repairs and Service at the Pulsar showroom in Vasai west. Currently there are four variants available -with engine capacities of 135 cc, 150 cc, 180 cc and 220 cc. previously it was also offered with 200 cc DTS-i oil cooled engine, which now has been discontinued. Pulsar is the leader in the 150 cc segment in India with a market share of 43%. Before the introduction of the Pulsar, the Indian motorcycle market trend was towards fuel efficient, small capacity motorcycles (that formed the 80-125 cc class). Bigger motorcycles with higher capacity virtually did not exist (except for Enfield Bullet) In past ten years pulsar has grown tremendously from spoke rings to alloy wheels From kick starter to self electric starter From carburettor to fuel injection according to the demand of market and customer Pulsar 220 is highest selling sports bike in India The upgraded version of pulsar to 250 300 and 350 cc to be launched in collaboration with European bike company KTM Bajaj is already exporting pulsar to Middle East Asia, Sri Lanka Nepal and with collaborative name of Kawasaki it distributes in Thailand and Malaysia And targets the customer of china and Brazil in global market.Places of Manufacturing.

Bajaj has its main manufacturing unit in Pune in Maharastra. it has manufacturing units in other parts of India also Bajaj has its authorized showrooms and factory shops with proper service center E.g. Suryoday Bajaj Vasai. Sai service borivili

Marketing Strategies Personal Selling: Personal selling is main source of marketing in showrooms by the employees. Advertisements: Bajaj advertise on television media and press media regularly and is known for its advertisement in the industry. Press Release: Press release is regular about pulsar as and when any new news or new launch in pulsar variants occurs.

Main Focus : Bajaj has its main focus on its R&D Department because of which every now and than the product gets better with quality. Bajaj has proper R&D department because of which a brand like pulsar which is 10 years old is still strong competitor in market for other bikes Competitors :Pulsar is known as its own competitor because it has bike from low 135 cc to high 220 cc engines so customer has wide choice to suit his/her requirement. Pulsar is the best known Brand and Quality Product in the Automobile Industry when it comes to Bikes.