Marketing Communications

The Communications Process

Sender Encoding Message Media Noise Feedback Response Decoding Receiver

Marketing Communications mix

Advertising Direct marketing Sales Promotion Personal selling PR and Publicity Each of these has its own uses and limitations and hence a judicious mix is employed by most companies.

Integrated marketing communications

Integrated marketing communications, popularly known as IMC is the coordination and integration of all communication tools, avenues and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost. This integration effects all of a firms business to business, marketing channel, customer focused and internally directed communications.

According to American Association of Advertising Agencies (4As)

IMC is a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic role of a variety of communication disciplines - for example: general advertising, sales promotion, direct response and public relations-and combines these disciplines to provide clarity, consistency and maximum communications impact.

Integrated communications: A marketers consumer communications need to not only raise brand awareness or create or change brand preference and image or to get sales trial or repurchase but to do all the above at the same time. Thus all marketing communications particularly ads, should attempt to simultaneously achieve targeted communication goals ( raising attitudes or image building) and lead to some behavioral action

There are two related ideas involved with IMC: One-voice marketing communications: As consumers increasinglybegin to be addressed by the same marketer in a variety of different ways- through image building advertising,public relations,direct marketing,sales promotions,point-of-sale material and sales force calls-there is the obvious need to ensure a consistency of positioning,message and tone across these different media-reaching the consumer with one voice

Integrated Marketing Communications

This brings about synergy and better use of communication funds Balancing the push and pull strategies Improves the companys ability to reach the right consumer at the right place at the right time with the right message.

Distortions in Communication
Selective attention Selective distortion Selective retention

Factors influencing effectiveness of communications

when the recipients source of communication is single When message is in line with recipients opinions and beliefs When issues are unfamiliar or peripheral issues When the source is an expert, of high status, likeable, has power and can be identified with When social context or reference group will mediate the communication and influence acceptability

Communications model
AIDA model The hierarchy of effects model The innovation adoption model

AIDA Model
Attention Interest

Desire Action

The Hierarchy of Effects model

Awareness Knowledge Liking Preference Conviction Action

The Innovation Adoption model

Awareness Interest Evaluation Trial Adoption

The 5 Ms of Advertising
Mission objectives Money budgets Message communication Media what vehicles? Measurement - evaluation

Advertising objectives
Informative Persuasive Comparative Reminder (reinforcement)

Advertising Goal
A specific communication task to be achieved to a specific degree to be communicated to a specific target audience in a specific period of time.

How much to spend?

Half my advertising is wasted, but the trouble is I do not know which half - John Wanamaker

How much to spend?

Depends on the product What stage in the PLC Market share and the consumer base Competition and clutter Ad frequency Product substitutability

Media selection
The most cost effective media mix to ensure achievement of the advertising goal.

How should you select media?

Reach Frequency Impact

Reach
No. of persons exposed to a particular media schedule at least once during a specified time period

Frequency
No. of times within the specified period that a person is exposed to that message

Impact
Qualitative value of an exposure through a given medium GRP (Gross rating points) = R * F Wt. GRP = R * F * I

Sales Promotion
Whereas advertising gives a reason to buy, SP gives an incentive to buy

Advantages of SP
Induces trials To reward loyal customers To induce stocking by the trade Adjust to short term variations in trade Liquidating inventories Preempting competition

Disadvantages of SP
With too many promotion schemes promotion clutter confuses consumers Attracts brand switchers and deal prone customers Dilutes brand equity Preponement of purchases Lowers margins Expensive and wasteful, when not handled properly

Types of SP
Trade Consumer

Developing a SP campaign
Planning the programme Duration Incentive to be given Assessing viability Pretesting Implementing and controlling Evaluation

Public Relations
Involves a variety of programmes to promote or protect a companys image or products

Functions of PR
Media relations Product publicity Corporate communications Lobbying Counseling

The bottom line

PR is difficult to measure, but if consistently pursued with, it can have tremendous synergy with advertising and sales promotion, thereby reducing overall promotion costs