NTEGRATED MARKETING COMMUNICATIONS

Definition: Integrated Marketing Communication

Definition:

IMC is a concept of marketing communications planning that recognizes the added

value of a comprehensive plan that evaluates the strategic roles of a variety of
communications disciplines – for example, general advertising, direct response, sales
promotion, and public relations – and combines these disciplines to provide clarity,
consistency, and maximum communications impact

by The American Association of Advertising Agencies (the 4A’s)

The Emergence of IMC

The Market revolution forcing a movement towards IMC:

• A shift of marketing dollars from media advertising to other forms of

promotion, particularly consumer and trade oriented sales promotions
• A movement away from relying on advertising-focused approaches, which
emphasize mass media such as television and national magazines, to solve
communication problems
• A shift in marketplace power from the manufacturer to the retailer
• The rapid growth and development of database marketing
• Demands for greater accountability from advertising agencies and changes
in the way agencies are compensated
• The rapid growth of the Internet, which is changing the very nature of how
companies do business and the ways they communicate and interact with
consumers

The Role of Marketing Communication

Marketing communication performs several functions for consumers:

• Consumers are told how the product is used, by what kind of person, and
where and when
• Consumers learn about who makes the product and what the company and
the brand stand for
• It allows companies to link their brands to other people, places, events,
brands, experiences, feelings, and things
• It also contributed to brand equity by establishing the brand in memory and
crafting a brand image

Marketing communication contributes specifically to brand equity in the following ways:

• By creating awareness of the brand
• Linking the right associations to the brand image in the consumer’s
memory
• Eliciting positive brand judgments or feelings
• Facilitating a stronger consumer-brand connection
Marketing Communication Forms

Marketing communication consists of 6 major modes of communication:

Advertising:
Any paid form of non-personal presentation and promotion of ideas, goods, or services by
an identified sponsor
Sales Promotion:
A variety of short-term incentives to encourage trial or purchase of a product or a service
Events and Experiences:
Company sponsored activities and programs designed to create daily or special brand-
related interactions
Public relations and publicity
A variety of programs designed to promote or protect a company’s image or its individual
products
Direct marketing:
Use of mail, telephone, fax, e-mail, or internet to communicate directly with or solicit
response or dialogue from specific customers or prospects
Personal selling:
Face-to-face interaction with one or more prospective purchasers for the purpose of
making presentations, answering questions, and procuring orders

Advertising Sales Promotion Events & Public Relations Personal Selling Direct Marketing
Experiences

• Print and • Sampling • Sports • Press kits • Sales • Catalogs

broadcast • Fairs and • Entertainment • Seminars presentations • Mailings
ads trade shows • Festivals • Annual • Sales • Telemarketing
• Packaging • Coupons • Causes Reports meetings • Electronic
(outer) • Rebates • Factory tours • Press • Incentive shopping
• Packaging • Allowances • Street activities Conference programs • TV Shopping
inserts • Continuity s • Samples • IVR Marketing
• Motion programs • Lobbying • Fairs and
Pictures • Premiums • Company trade shows
• Brochures and gifts magazines
and • Contests
booklets and
• Posters sweepstake
and leaflets s
• Directories
• Reprints of
ads
• Billboards
• Display
signs
• Point-of-
purchase
displays
Elements in the Communication Process

Encoding Message Decoding

Media

SENDER RECEIVE
R
Noise

Feedback Response

Consumer Response Hierarchy Models

Models

AIDA Hierarchy-of- Innovation-

Communications
Stages Model Effects Model Adoption Model
Model
Exposure
Awareness

Cognitive Attention
Awareness Reception
stage
Knowledge
Cognitive response

Interest Liking
Interest Attitude

Affective Preference
stage
Desire Conviction Evaluation
Intention

Trial
Behaviour
Action Purchase Behaviour
stage
Adoption
Steps in Developing Effective Communication

Identify target Manage

audience integrated
marketing
1 8 communicatio
n

Determining Measure
objectives results
2 7

Design Decide on
communicatio media mix
n 6
3

Select Establish
channels budget
4 5

01::: Identify the Target Audience:

The process must start with a clear target audience in mind: potential buyers of the
company’s products, current users, deciders, or influencers; individuals, groups,
particular individuals, or the general public
The target audience is a critical influence on the communicator’s decisions on what to
say, how to say it, when to say it and to whom to say it

02::: Determine the Communications Objectives:

4 possible objectives have been stated as follows for communication:

Category Need:
Establish the need for a new category
Brand Awareness:
Ability to recognize and recall the brand
Brand Attitude:
Evaluation of the way consumers perceive the brand
Brand Purchase Intention:
A need to move the consumer to buy

Most effective communications often can achieve multiple objectives

03::: Design the Communications:

MESSAGE STRATEGY:
In determining the message strategy, management searches for appeals, themes, or ideas
that will tie into the brand positioning and help establish points-of-parity or points-of-
difference

CREATIVE STRATEGY:
Communications effectiveness depends on how a message is being expressed as well as
the content of the message itself. Creative strategies are broadly classified as involving
either informational or transformational appeals

MESSAGE SOURCE:
Messages delivered by attractive or popular sources can potentially achieve higher
attention and recall, which is why advertisers often use celebrities as spokespeople

04::: Select the Communications Channels:

Selecting efficient channels to carry the message becomes more difficult as channels of
communication become more fragmented and cluttered
Personal Communications Channels:
Personal channels of communication involve two or more persons communicating directly
face-to-face, person-to-audience, over the telephone, or through e-mail

Non-Personal Communications Channels :

This is a One-to-many communication and not face-to-face. It includes the following:
– Media
– Sales Promotions
– Events and experiences
– Public Relations

05::: Establish the Total Marketing Communications Budget:

The different methods or techniques are:

• The Affordable Method

• Percentage of Sales Method
• Competitive Parity Method
• Objective and Task Method

06::: Deciding on the Marketing Communications Mix:

Each communication has its own unique characteristics and costs too:
Advertising:
Advertising has the following qualities:
• Pervasiveness
• Amplified expressiveness
• Impersonality
Sales Promotion:
It possesses the 3 following distinctive benefits:
• Communication
• Incentive
• Invitation
Public relations and publicity:
Its appeal is based on 3 distinct qualities:
• High credibility
 • Ability to catch buyers off guard
• Dramatization

Each communication has its own unique characteristics and costs too:
Events and Experiences:
3 distinctive characteristics:
• Relevant
• Involving
• Implicit
Direct marketing:
3 distinctive characteristics:
• Customized
• Up-to-date
• Interactive
Personal selling:
3 distinctive characteristics:
• Personal interaction
• Cultivation
• Response

07::: Measure the Communication Results:

Senior management must know the outcomes and the revenues from communication
investments

Factors such as Reach, Frequency, Recall and recognition scores, Persuasion changes,
cost-per-thousand calculations are some of the ways that we monitor and understand the
investments pay-off

A formal measurement of each of the above and more is done to establish the impact of
the communication

08::: Managing the Integrated Marketing Communications Process:

Integrated marketing communications is a concept of marketing communications planning

that recognizes the added value of a comprehensive plan
A plan like this must evaluate the strategic roles of a variety of communications
disciplines
The widest range of communications tools, messages, and audience makes it imperative
that companies move towards integrated marketing communications
IMC advocates looking at the whole process instead of focusing on individual parts only
The IMC Plan

IMC for
Small
Businesses Integration tools
and
Entreprene Evaluating
an
Internet Integrated
Marketing Marketing
Program

Personal
Selling, Public
Promotional tools
Trade Consumer Database Relations and
Promotions Promotions Marketing, Sponsorship
Programs

Advertising Advertising
Design: Design:
Theoretical Message Advertising tools
Advertising Frameworks Strategies and Advertising
Management and Types of Executional Media Selection

Corporate Promotions
Image and Opportunity Foundation
Buyer Behavior
Brand
The IMC Planning Model

Review of Marketing Plan

Analysis of Promotional Program Situation

Analysis of Communications Process

Budget Determination

Develop Integrated Marketing Communications Program

Integrate and Implement Marketing Communications Strategies

Monitor, Evaluate, and Control the IMC Program

Review of Marketing Plan

Examine overall marketing plan and objectives
Role of advertising and promotions
Competitive analysis
Access environmental influences

Analysis of Promotional Program Situation

Internal analysis External analysis
Promotional department organization Consumer behavior analysis
Firm’s ability to implement Market segmentation and target marketing
promotional program Market positioning
Agency evaluation and selection
Review of previous program results

Analysis of Communications Process

Analyze receiver’s response processes
Analyze source, message, channel factors
Establish communications goals and objectives
Budget Determination
Set tentative marketing communications budget
Allocate tentative budget

Develop Integrated Marketing Communications Program

Advertising Sales Promotion
Set advertising objectives Set promotion objectives
Determine advertising budget Determine sales promotion budget
Develop advertising message Determine sales promotions tools and
Develop advertising media strategy develop messages
Develop sales promotion media strategy
Direct Marketing Public relations/publicity
Set direct-marketing objectives Set PR/publicity objectives
Determine direct-marketing budget Determine PR/publicity budget
Determine direct-marketing message Determine PR/publicity message
Develop direct-marketing media strategy Develop PR/publicity media strategy

Interactive/Internet marketing Personal selling

Set direct-marketing objectives Set PR/publicity objectives
Determine direct-marketing budget Determine PR/publicity budget
Determine direct-marketing message Determine PR/publicity message
Develop direct-marketing media strategy Develop PR/publicity media strategy

Integrate and Implement Marketing Communications Strategies

Integrate promotional-mix strategies
Create and produce ads
Purchase media time, space, etc
Design and implement direct-marketing programs
Design and distribute sales promotion materials
Design and implement public relations/publicity programs
Design and implement interactive/Internet marketing programs

Monitor, Evaluate, and Control the IMC Program

Evaluate promotional program results/effectiveness
Take measures to control and adjust promotional strategies
Brand Management
Concepts in Branding

BRAND
Evolution of the Concept

Brandr = “to burn” -An Old Norse word

Brands were and still are means by which the owners of livestock mark their animals to
identify them

A Brand is a name, term, sign, symbol, logo or design, or a combination of them, intended
to identify the goods and services of one seller or group of sellers and to differentiate
them from those of competition
-The American Marketing Association (AMA)

The above different components of a brand that identify and differentiate it can be called
brand elements

Brand V/s Product

A product is anything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a need or want

5 levels to a Product:

CORE benefit level It is the fundamental need or want that consumers satisfy by
consuming the product or service
GENERIC product It is a basic version of the product containing only those
level attributes or characteristics absolutely necessary for its
functioning but with no distinguishing features….a no-frills
stripped down version
EXPECTED product It is a set of attributes or characteristics that buyers normally
level expect and agree to when they purchase a product
AUGMENTED This includes additional product attributes, benefits, or related
product level services that distinguish the product from its competitors
POTENTIAL product This includes all of the augmentations and transformations that a
level product might ultimately undergo in the future

A brand is a product with added dimensions that differentiate it in some way from other
products designed to satisfy the same need. These differences may be symbolic,
emotional and intangible, related to what the brand represents

Brand Roles

A Brand plays several roles some of which are below:

To Consumers:
Identifying the source from where the product comes
Gives responsibility to the product maker
 Reduces risk
Reduces time for market search for the product
Creates a bond with the maker of the product
Stand for several things
Signifies quality

To Manufacturers:
Identification for easy handling
Legal protection
Signal of quality level to satisfied customers
Endows unique associations
Creates competitive advantage
Source of financial returns

A Brand reduces several Risks for the Consumer:

Functional risk
Physical risk
Financial risk
Social Risk
Psychological risk
Time risk

Tellis and Golder’s factors for enduring brand leadership:

They identified 5 factors as the keys to enduring brand leadership:

Vision of the Mass Market
A clear vision and eye for market tastes that are more likely to build a broad based
sustainable customer base
Managerial Persistence
Backing is required on a continuous basis as breakthroughs in market leadership
come after long periods of time
Financial Commitment
Demands for research, development of the market and for communication
investments need financial commitment
Relentless Innovation
Changes in consumer taste require constant innovation
Asset Leverage
New category leadership emanates if related category leadership exists

Challenges to Brand builders

Brand builders encounter several challenges in the brand building process:

Savvy, demanding and well informed customers

Complex Brand families and portfolios
Maturing markets
Increasing competition
Differentiation challenges
Brand loyalty shrinkage
Private label growth
Trade Power has increased tremendously
Media fragmentation
New media and communication options
High launch or introduction costs
Short term orientation on all quarters
Increasing attrition of teams

The Strategic Brand Management Process

Identify and establish

Brand positioning and values

Mental Maps
Competitive frame of reference
Points of parity and points of difference
Core brand values
Brand Mantra

Plan and implement

Brand Marketing Programs

Mixing and matching of Brand elements

Integrating brand marketing activities
Leverage of secondary associations

Measure and interpret

Brand Performance

Brand Value chain

Brand audits
Brand tracking
Brand equity management system

Grow and sustain

Brand equity

Brand product matrix

Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization

Consumer-Based Brand Equity

CBBE Model:

The power of a brand lies in what customers have learned, felt, seen, and heard
about the brand as a result of their experiences over time

We need to link the right desired thoughts, feelings, images, beliefs, perceptions, opinions
and so on with the brand

CBBE:
 The differential effect that the brand has on consumer response to the marketing
of that brand

1) The ‘differential effect’

2) Brand knowledge and
3) Consumer response to marketing

The 4 Steps:

1. Ensure IDENTIFICATION of the brand with the consumers and an association of

the brand in consumer’s minds with a specific product class or customer need
2. Establish the totality of BRAND MEANING in the minds of customers by
strategically linking a host of tangible and intangible brand associations with
certain properties
3. Elicit the proper CUSTOMER RESPONSES to the brand identification and meaning
4. Convert brand response to create an intense, active loyalty RELATIONSHIP
between customers

The fundamental questions implicitly asked by consumers:

1. Brand Identity: Who are you?

2. Brand Meaning: What are you?
3. Brand Responses: What do I feel about you?
4. Brand Relationships: What kind of association and how much of a connection
would I like to have with you?

Brand Salience – Brand Awareness:

BRAND SALIENCE refers to the awareness of the brand.

How often and easily the brand is evoked under various situations and circumstances
To what extent is the brand top-of-the mind and easily recalled or recognized

BRAND AWARENESS refers to the customers ability to recall and recognize the brand, as
reflected by their ability to identify the brand under different conditions

How well do the Brand elements serve the function of identifying the product?

E.g.: McDonalds, GE, IBM, HUTCH, WIPRO

Brand Awareness: Breadth & Depth

Brand awareness is characterized by breadth and depth

The DEPTH of awareness concerns the likelihood that a brand element will come to mind
and the ease with which it does so

E.g. a brand that can be easily recalled has a deeper level of awareness than one that can
only be recognized

The BREADTH of awareness concerns the range of purchase and usage situations in
which the brand element comes to mind

Brand Performance
Brand Performance relates to the way in which the product or service attempts to meet
customers’ more functional needs

5 attributes and benefits for Brand Performance:

• Primary ingredients and supplementary benefits

• Product reliability, durability and serviceability
• Service effectiveness, efficiency, and empathy
• Style and design
• Price

Brand Imagery

Brand Imagery deals with the extrinsic properties of the product or service, including the
ways in which the brand attempts to meet customers’ psychological or social needs

Imagery thus refers to Intangible aspects of the brand

4 categories of Intangibles linked or highlighted to the Brand are:

1.User Profiles
2. Purchase and usage situations
3. Personality and Values
4. History, heritage, and experiences

Brand Judgements

Brand Judgements focus on customers’ personal opinions and evaluations with regards
to the Brand.

4 important and relevant Brand Judgements:

• Brand Quality
• Brand Credibility
• Brand Consideration &
• Brand Superiority

Brand Feelings

6 important types of Brand building feelings:

1. Warmth
2. Excitement
3. Fun
4. Security
5. Social approval
6. Self respect

Brand Resonance

Brand Resonance: The feeling of being In-sync with a Brand

4 categories of Brand Resonance:

• Behavioral loyalty
 • Attitudinal attachment
• Sense of community
• Active engagement

Brand Equity – David Aaker’s Version

Brand Equity includes 5 Categories:

Brand Loyalty
This is the strongest measure of a Brands Value is its Brand Loyalty. The strongest form
of loyalty is attachment. This level of loyalty insulates a brand from competitive pressures
such as advertising and price promotion and leads to higher profits and margins

Brand Awareness
In its simplest form brand equity brings familiarity to a customer. A familiar brand gives a
customer a feeling of confidence, which makes the brand be considered and chosen

Perceived Quality
A known brand conveys an aura of quality. A quality association can be of a general halo
type or can also be an attribute or category specific. A brand often has strong price
associations that influence quality perceptions

Brand associations
Subjective and emotional associations are also an important part of brand value

Other Brand Assets

Assets such as patents and trademarks, are valuable but are tied to the physical product
more than the brand

BRAND EQUITY
 Reduced Marketing Costs
Trade leverage Provides value to
Attracting new Customers the customer by
Time to respond to Enhancing
Brand Loyalty customer’s:
competitive threats
-Interpretation/
Anchor to which other Processing of
associations can be Information
Brand attached -Confidence in the
Awareness Familiarity-liking purchase decision
Signal of substance/ -Use satisfaction
Commitment
Brand Brand to be considered
Equity
Perceived Reason-to-buy Provides value to
quality Differentiate/position the firm by
Price Enhancing:
Channel member interest
Extensions -Efficiency and
Effectiveness of
Help process/ retrieve Marketing programs
Brand Information -Brand loyalty
Associations Reason-to-buy -Price/margins
Create positive attitude/ -Brand extensions
Feelings -Trade leverage
Extensions -Competitive
advantage
Other
Proprietary
Competitive advantage
Brand Assets

Building Strong Brands

Aaker’s 10 guidelines to Building Strong Brands:

1. Brand Identity: Build a strong identity, a strong personality. It can be modified for
different segments
2. Value Proposition: Each brand should have a unique value proposition
3. Brand Position: Required to provide a clear guidance to those implementing a
communications program
4. Execution: The communications program needs to implement the identity and
position, and it should be durable as well
5. Consistency over time: Consistent identity, and position over time. Resist from
change
6. Brand System: The portfolio should be consistent and synergistic
7. Brand Leverage: Extend brands if the brand identity will be both used and
reinforced
8. Tracking: Tracking is required of awareness, perceived quality, brand loyalty, and
brand associations
9. Brand Responsibility: Someone should have overall charge of the brand for
strategy and execution
10. Invest: Continual investment required despite some periods of not meeting
financial objectives

BRAND IDENTITY – David Aaker

 Brand identity

Brand as Brand as Brand as person Brand as symbol

product organization

• Product scope • Organization • Personality • Visual Imagery

• Product attributes (energetic, and metaphors
attributes (e.g. innovation, rugged) • Brand heritage
genuine • Brand customer
• Quality/Value consumer relationships
• Users concern, (friend, advisor)
• Uses trustworthiness)
• Country of • Local Versus
origin global

DIMENSIONS OF BRAND IDENTITY

Brand Identity

AN UNDERSTANDING OF Brand Identity

An “Identity Card” is a personal, non-transferable document which tells in a few words

who we are, what our name is and what distinguishable features we have that can be
instantly recognized

A second interpretation is: Brand Identity is the common element sending a single
message amid the wide variety of its products, actions and slogans (As the brand expands
and diversifies, customers are inclined to feel that they are, in fact, dealing with several
different brands rather than a single one

If products and communication go their separate ways then consumers would possibly
perceive these different routes not converging towards common aim and the brand

Several people can have an identical point of view which we would call ‘identity of opinion’

With Identity cards as civil status or physical appearance change, identity cards get
updated, but the fingerprint of their holders always remains the same

We speak now of ‘cultural identity’ which is the identity of social groups and hence applies
to Brands too. Individual products/brands within this group have inherent differences but
also their commonality to a specific cultural entity
Brand Identity is a recent construct and to understand this marketers need to understand
the organizational identity of companies

Hence Corporate Identity determines your coherent and unique being, with your own
history and place of your own and different from others

Identity means being your true self, driven by a personal goal that is both different from
others and resistant to change

AN UNDERSTANDING OF Brand Identity…….continued

Brand Identity is clear when we once understand the following questions:

• What is the brand’s particular vision and aim?

• What makes the brand different?
• What need is this brand fulfilling?
• What is its permanent nature?
• What are its value or values?
• What are the signs which make it recognizable?

These questions constitute what is called the Brand Charter

If firms create an official document answering these questions, it not only helps manage
the brand in the short and medium term, but also helps better address future
communication and also extension issues

Why IDENTITY ………… why not IMAGE instead?

Brand Image is on the receiver’s side. Image is about perception. How do certain group’s
perceive a product, a brand, a company, a person or even a country. IMAGE is about
decoding all signals emanating from the products, services and communication covered
by the brand

Brand Identity is on the sender's side. The purpose is to specify the brand’s meaning, aim
and self-image. Image is both the result and interpretation thereof

Identity precedes Image always in terms of brand management

Extraneous factors = ‘noise’ which speak in the brand’s name and thus product meaning,
however disconnected they may be from it
These factors are:
• Companies chose to mimic as they sometimes have no idea of what their
own brand identity is
• Secondly some companies believe that they must build an appealing image
that will be favorably perceived by all. The brand gets caught in the please-
all game
• The third extraneous factor is that of fantasized identity….i.e. the brand as
one would like to see it, not as it actually is.
• What is its permanent nature?

IDENTITY & IMAGE

 Sender Media Receiver

Brand Identity

Signals Brand Image

transmitted

Other Sources of
Inspiration
• Mimicry
• Opportunism
• Idealism Competition
and noise

The 6 facets of Brand Identity

1. PHYSIQUE
The physique are the physical qualities. It is made of a combination of either
salient objective features (which come to the mind immediately) or then emerging ones.
Physique Is both the brand’s backbone and its tangible added value.

2. PERSONALITY
A brand has a personality of its own. Through communication, the brand gradually
builds its character. The way it speaks of its products or services shows what kind of
person it would be if it were human
Personality has been the main focus of advertising since decades. An easier way
to build personality is also to give the brand a spokesperson or a figurehead, whether real
or symbolic

3. CULTURE
The product derives itself from the culture the brand represents and creates for
itself. Culture means the set of values feeding the brand’s inspiration. The cultural facet
refers to the basic principles governing the brand in its outward signs (products and
communication). The essential aspect is the core of the brand.

The 6 facets of Brand Identity

4. RELATIONSHIP
A brand is a relationship. Brands are often at the crux of transactions and
exchanges between people. This is more visible in service brands or the service sector

5. REFLECTION
Reflection refers to the customer as she or he is. It provides a model (person) with
which to identify the brand. For examples when asked for their views on certain car
brands: people immediately answer in terms of the brand’s perceived client type: a brand
for young people! For older folk, for show-offs, etc. Brands must control their reflection as
sometimes this could be detrimental

6. SELF-IMAGE
 Self image is the target’s own internal mirror. Self image is the inner relationship
with oneself that we develop, through our attitude towards certain brands. It is what the
consumer thinks of himself

Kapferer’s - BRAND IDENTITY PRISM

PICTURE OF SENDER

Physique Personalit
y

E
X
T IN
E T
R E
N Relationship Culture R
A N
LI A
Z LI
A Z
A
TI

Reflection Self-image

PICTURE OF RECIPIENT

BRAND IDENTITY – David Aaker

 Brand identity

Brand as Brand as Brand as person Brand as symbol

product organization

• Product scope • Organization • Personality • Visual Imagery

• Product attributes (energetic, and metaphors
attributes (e.g. innovation, rugged) • Brand heritage
genuine • Brand customer
• Quality/Value consumer relationships
• Users concern, (friend, advisor)
• Uses trustworthiness)
• Country of • Local Versus
origin global

DIMENSIONS OF BRAND IDENTITY

How Brand Communication Works

4. Noise

Physical and Psychological

•Source 2. Message 3. 5. Receiver

(Encoding) Brand Messages Communication (Decoding)
Company Brand Ads, PR Chanel Customer,
Agency Releases, Media, TV, Prospects
Coupons, Radio, Other
Signage Newspapers, Stakeholders
Customer Magazines,
Service Internet,

6. Feedback Interactivity

• Immediate Response
• Delayed Response
• No Response
Customer Initiated Brand Communication

Customer Initiated IMC Message

Busy signal, company delays,

incomplete info

(Noise)

Customer or Question, 800 number, Company

other Complaint, letter,
stakeholder Compliment E-mail, (Receiver)
salesperson,
(Source) (Message) Customer
service,
Internet

4 R’s
(Responsiveness, recourse,
recognition, respect)

(Feedback)

Sales Promotion

Types of Sales Promotion activities

CONSUMER ORIENTED PROMOTIONS

• Sampling
• Coupons
• Premiums
• Contests/sweepstakes
• Refunds/ rebates
• Bonus packs
• Price-offs
• Frequency Programs
• Event Marketing

TRADE-ORIENTED PROMOTIONS
• Contest and dealer incentives
• Trade allowances
• Point-of-purchase displays
• Training programs
• Trade shows
• Cooperative advertising

CONSUMER ORIENTED PROMOTIONS

• Sampling
 Door-to-door sampling when it is important to control where the sample has to be
delivered
Sampling through mail can be targeted to specific market areas
In-store sampling for sample direct to shopper control
On-package sampling to ensure it reaches the consumer. However reaches only
consumers who buy
Event based sampling: very popular
Low price market strategies today force manufacturers to go away from sampling
as sampling is expensive
• Coupons
First done in 1895 when C. W. Post Co started using penny-off coupons to sell its
new Grape-Nuts cereal
Advantages:
Price reduction only to consumers who are price sensitive
Second to sampling to generate trial
Coupons encourage repurchase after first trial
Coupons encourage non-users to try and encourage repeat purchase amongst
users
• Coupons
Disadvantages:
Difficult to estimate how many consumers will use the coupon and when
Response to a coupon is rarely immediate
Difficult to restrict users of the brand from couponing
Low redemption rates and high costs

FSI = Free standing inserts

Newspapers and magazines used for printed coupons or now for FSI
Bounce-back coupon: Placed inside a package
Cross-ruff coupon: Redeemable on purchase of a cross (different)
product
Instant coupon: Attached to pack and can be torn off and used right
away
In-store couponing: Given in the retail environment

• Premiums
A premium is an offer of an item or merchandise or service either free or at a low
price that is an extra incentive for purchasers
Free Premiums: Small gifts or merchandise included in the product or pack
High impulse values and can provide an extra incentive to buy the product
Cost is key and sometimes extra/special packaging is required
Mail-in premium: consumer required to mail in the proof of purchase
Self liquidating premiums: Requires the consumer to pay some or all of the cost of
the premium plus handling and mailing costs. Generally give a low redemption rate
• Contests/sweepstakes
Contest: Consumers compete for prizes or money on the basis of skill or ability
Sweepstake: Winners win by pure chance. No proof of purchase ever required
Sweepstakes are more popular than contests as no skill is require for participation
A drawback is that there are professionals or hobbyists who participate or send in
multi entries
• Refunds/rebates
Offers by the manufacturer to return a portion of the product purchase price after
the consumer supplies some proof of purchase
Consumers responsive to this method as the size of savings increases
 Refund offers encourage repeat purchase, encourage brand switching and are very
popular for consumer durables. Also for categories like cameras, sporting goods,
appliances, television sets, computers and cars
• Bonus packs
These packs offer an extra amount of the product at the regular price by providing
larger containers or extra units. They result in a lower cost per unit for the consumer and
provide extra value without having to get involved with complicated coupons or refund
offers
The additional value is obvious to the consumer and can have a strong impact on
the purchase decision at the time of purchase
• Price-offs
Easiest, simplest, reduces the price of the product by discounting the price by
some %
Needs to be marked or printed on the pack
The discount always reaches the consumer and cannot be misused by trade
These cause issues of different price stocks at Retail level
• Frequency programs
The fastest growing area of sales promotions: Also referred to as continuity or
loyalty programs
Frequency programs allow the manufacturer to maintain databases and market to
consumers
They require careful management and implementation
• Event Marketing
Event Marketing is a type of promotion where a company or brand is linked to an
event or where a themed activity is developed for the purpose of creating experiences for
consumers and promoting a product or service
(An Event Sponsorship is an integrated marketing communications activity where
a company develops actual sponsorship relations with a particular event and provides
financial support in return for the right to display a brand name, logo, or advertising
message and can be identified as a supporter of the event

TRADE ORIENTED PROMOTIONS

• Contests and dealer incentives

Special incentives programs to stimulate greater selling effort and support from
reseller management or sales personnel. The programs or contests can be directed toward
managers who work for a wholesaler or distributor as well as towards store or department
managers at the retail level
• Trade allowances
A trade allowance is a discount or deal offered to retailers or wholesalers to
encourage them to stock, promote, or display the marketer’s products. Types of trade
allowances offered to retailers include buying allowances, promotional or display
allowances, and slotting allowances
• Point-of-purchase displays
These are promotional materials used to display and sell products. These are in
the form of shelf strips, banners, posters, dispensers, shelf cards, stand-up-racks and
others
Marketer’s also use the concept to use shelf space more efficiently through a
Planogram
• Sales Training programs
This sort of a program acts as a motivator and can be used to reward the best
performing personnel or then to simply upgrade the skills of employees. Product and
sales training are provided and in several times at tourist holiday locations. Further in
such programs the concept of reward for past performance and the creation of coveted
performance Clubs are also sometimes done to create further aura around such a program
 The Value of training is even more important where the ticket price is high for a
product and personal selling skills come into play
• Trade Shows
The trade show is a forum where marketers / manufacturers display their products
to current as well as prospective buyers. Trade shows are a major opportunity to display
one’s product lines and interact with customers
• Cooperative advertising
Horizontal cooperative advertising
Ingredient-sponsored cooperative advertising
Vertical cooperative advertising

BRAND SYSTEMS
Brand Strategy - Extension

Type Narrative Example

Line Extension Existing brand name, existing Kellogg’s variants
category, new size of flavor

Brand Same Brand Name extended to Bathing Soap to Other

Extension new product categories Toiletries

Multibrands New brand, same category LUX, Hamam, Dove,

Lifebuoy
New Brands New Brand name for a new Tata Motors & Westside
category Raheja Construction &
Shopper’s Stop

Co-brand Two or more brands getting Credit Cards, Pantaloon-

together for synergy Welingkar's tie-up

Notes compiled by

Rajeev Chawla
rajeevchawlas@homail.com