26-11-2019

Sessions 12-15
Integrated Marketing Communications

Marketing communications
(3rd P of Marketing Mix)

RECAP
• The task is to suggest a creative poster. The target audience of
this poster would be family members of people detected with
cancer, who would be offered free counselling.
• The counselling would be offered in centers supported by
Biocon foundation. The project is code named “Hope against
cancer”.

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BIOCON
• What kind of communications Biocon may consider?
• Who were the target audiences of Biocon’s BioMAb?

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Marketing Communications Mix

• Advertising • Online and social

• Sales media marketing
promotion • Mobile marketing
• Events and • Direct and
experiences database
• Public relations marketing
and publicity • Personal selling

• The activity!

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8 MARKETING COMMUNICATION TOOLS

1. Advertising—Any paid form of nonpersonal presentation and promotion of ideas, goods, or
services by an identified sponsor via print media (newspapers and magazines), broadcast
media (radio and television), network media (telephone, cable, satellite, wireless), electronic
media (audiotape, videotape, videodisk, CD-ROM, Web page), and display media (billboards,
signs, posters).

2. Sales promotion—A variety of short-term incentives to encourage trial or purchase of a

product or service including consumer promotions (such as samples, coupons, and premiums),
trade promotions (such as advertising and display allowances), and business and sales force
promotions (contests for sales reps).

3. Events and experiences—Company-sponsored activities and programs designed to create

daily or special brand-related interactions with consumers, including sports, arts,
entertainment, and cause events as well as less formal activities.

4. Public relations and publicity—A variety of programs directed internally to employees of

the company or externally to consumers, other firms, the government, and media to promote or
protect a company’s image or its individual product communications.

5. Online and social media marketing—Online activities and programs designed to engage
customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales
of products and services.

6. Mobile marketing—A special form of online marketing that places communications on

consumer’s cell phones, smart phones, or tablets.

7. Direct and database marketing—Use of mail, telephone, fax, e-mail, or Internet to

communicate directly with or solicit response or dialogue from specific customers and prospects.

8. Personal selling—Face-to-face interaction with one or more prospective purchasers for the
purpose of making presentations, answering questions, and procuring orders.

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VARIOUS CLASSIFICATIONS

• Out Bound vs. In bound

• Push vs. Pull

• One way vs. two way

• Mass vs. Customisable

Wide stone (Kunal’s X effect)

HOW FOGG DID IT? www.youtube.com/watch?v=uq-7EB_gdOQ

www.youtube.com/watch?v=JTMtfV0lPcA

Marketing communications
(3rd P of Marketing Mix):
Process by which organizations
or actors attempt to -
Differentiate Inform, Remind,
and Persuade - customers or
other actors about products,
brands or their propositions.

www.youtube.com/watch?v=AnWOmfcu2n4

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ROLE OF MAR-COMM. DRIP & ….

• Differentiate - Burger King differentiates itself from
www.youtube.com/watch?
market leader McDonald’s by stating that its burgers are v=NP3H1z8bxY4
flame-grilled for a better taste.
www.youtube.com/watch?
• Reinforce - Specsavers Opticians work to bring people v=9W87c1Jfr7M
back into the eyecare market
• Inform – e.g. Meteorological Office, local media and the www.youtube.com/watch?
v=OOSI4TgiKjc
general public, of the new flood warning codes.
• Persuade* - So good milk is better for us than ordinary www.youtube.com/watch?
v=6lW37OedACU
milk.

* Call to action

Elements in Communications Process

Macromodel of the communications process

Cadbury: www.youtube.com/watch?v=4QR2eHixLb8

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Developing Effective Communications

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EXPLORING THE 6M’S

• Paper boat • Small Business Saturday

• www.youtube.com/watch?v=ITO8G-o0nj8
• www.youtube.com/watch?v=yyVPgxIbO0I

• www.youtube.com/watch?v=p2E1D8AVhUc

• www.youtube.com/watch?v=6dZ7b7Bimrc

Managing Integrated Marketing

Communications
• Integrated marketing communications (IMC)
“A planning process designed to assure that all brand contacts
received by a customer or prospect for a product, service, or
organization are relevant to that person and consistent over time”

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Developing Effective Communications

• Design the Communications

Message strategy

Creative strategy

Message source

Creative Strategy
• Informational appeals
– One-sided vs. two-sided arguments
• Transformational appeals
– Negative/fear vs. positive appeals

https://www.youtube.com/watch?v=hVsf82IuVLI

https://www.youtube.com/watch?v=BlCCtARwXjs

https://www.youtube.com/watch?v=p4tuTi8_z6Q

https://www.youtube.com/watch?v=nFeb6YBftHE

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Setting the Marketing Communications Mix

• Type of product market
– Consumer vs. business
marketers
– Advertising/sales
promotion vs. personal
selling
• Product life-cycle stage

WEDDING SPEECH – PAISABAZAAR

www.youtube.com/watch?v=G6jgaXtzvFw

Why Integrated Marketing Communications?

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Managing IMC
• Coordinating media & implementing IMC

Coverage Contribution
Media coordination can occur
across and within media types, but
marketers should combine
Cost Commonality personal and nonpersonal
communications channels through
multiple-vehicle, multiple-stage
campaigns to achieve maximum
Conformability Complementarity
impact and increase message
reach and impact.

MANAGING PERSONAL COMMUNICATIONS:

PERSONAL SELLING, DIRECT & DATABASE MARKETING

SESSION - 14
Personal selling

• How EC's has been managing its Sales force in Kerala?

• How it won Kerala? Why is it failing in Karnatak & what could be done?
www.youtube.com/watch?v=nTrodR-2GyY
www.youtube.com/watch?v=KfDEf6ez-nQ&feature=youtu.be
www.youtube.com/watch?v=Rbsk7MMW-Ng

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ONLINE VS. OFFLINE*

*Most high value B2B transactions would by nature continue to be guided by personal transactions

Designing the Sales Force

• Types of sales representatives

1. Deliverer—A salesperson whose major task is the delivery of a product (water, fuel, oil).
2. Order taker—An inside order taker (standing behind the counter) or outside order taker (calling on the
supermarket manager).
3. Missionary—A salesperson not permitted to take an order but expected rather to build goodwill or
educate the actual or potential user (the medical “detailer” representing an ethical pharmaceutical house).
4. Technician—A salesperson with a high level of technical knowledge (the engineering salesperson who is
primarily a consultant to client companies).
5. Demand creator—A salesperson who relies on creative methods for selling tangible products (vacuum
cleaners, cleaning brushes, household products) or intangibles (insurance, advertising services, or
education).
6. Solution vendor—A salesperson whose expertise is solving a customer’s problem, often with a system
of the company’s products and services (for example, computer and communications systems).

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Sales Force Tasks

• Prospecting
• Targeting
• Information gathering (SPIN)
• Communicating
• Selling
• Servicing
• Allocating
www.youtube.com/watch?v=48HDFXFe4QI
- Pencil selling act – And where did we go wrong

Principles of Personal Selling

• SPIN method types of questions

1.Situation questions—These ask about facts or explore the buyer’s present situation. For example,
“What System are you using to invoice your customers?”

2. Problem questions—These deal with problems, difficulties, and dissatisfactions the buyer is
experiencing. For example, “What parts of the system create errors?”

3. Implication questions—These ask about the consequences or effects of a buyer’s problems,

difficulties, or dissatisfactions. For example, “How does this problem affect your people’s productivity?”

4. Need-payoff questions—These ask about the value or usefulness of a proposed solution. For
example, “How much would you save if our company could help you reduce errors by 80 percent?”

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Six Steps in Effective Selling

Prospecting & qualifying
Preapproach
Presentation & demonstration
Overcoming objections
Preapproach - salesperson needs to learn as much as
possible about the prospect’s (needs, the purchase
decision) and its buyers (personal characteristics and
buying styles). The sales rep must understand the
purchasing process in terms of who, when, where, how,
and why in order to set call objectives: to qualify the
prospect, gather information, or make an immediate sale.
Another, task is to choose the best contact approach—a
personal visit, phone call, e-mail, or letter.

Closing Presentation and Demonstration The salesperson tells

Follow-up & maintenance
the product “story” to the buyer, using a features,
advantages, benefits, and value (FABV) approach. The
pitch to a prospective client must be highly relevant,
engaging, and compelling—there is always another
company waiting to take that business.

Designing the Sales Force

Sales force objectives

Sales force strategy

Sales force structure

Sales force size

Sales force compensation

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EASTERN CONDIMENTS
KERALA VS. KARNATAKA

EASTERN CONDIMENTS
Kerala Kerala Karnataka
Total Sales 1304000000 1304000000 116000000

Salesman Sal 7854000 =119*5500*12 1980000

DA 7140000 =119*200*12*25 900000
commission 1304000 =D2*0.001 3480000

Assistance Sal 6426000 =119*4500*12

DA 3570000 =119*100*12*25
commission 978000 =D2*0.00075

Driver Sal 4050000 =75*4500*12 1440000

DA 2250000 =75*100*12*25 630000

Truck Dep, insurance, fuel 31500000 =(75*(20000+15000))*12 2520000

Inventory Interest 6520000 =((D2/12)*0.5)*0.12 2320000

Total Sales Cost 71592000 0 13270000

Cost of Sales 5.5% 0.0% 11.4%

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Managing the Sales Force

Recruiting

Selecting

Training

Supervising

Motivating

Evaluating

Motivating Sales Representatives

• Intrinsic versus extrinsic rewards

• Sales quotas

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Sales Rep Productivity

• Norms for prospect calls
– Companies often specify how much time reps should spend
prospecting for new accounts
• Using sales time efficiently
– Time-and-duty analysis and hour-by-hour breakdowns of
activities
• Sales technology
– The salesperson today has truly gone electronic (tablet, Web
site, and social media)

Sales Force Structure

• Four types of sales forces
– Strategic market sales force assigned to major accounts
– A geographic sales force calling on customers in different
territories
– A distributor sales force calling on and coaching distributors
– An inside sales force marketing and taking orders online and
via phone

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Sales Force Size

• Workload approach to sales force size
1. Group customers into size classes according to annual sales volume
2. Establish desirable call frequencies for each customer class
3. Multiply the number of accounts in each size class by the corresponding
call frequency to arrive at the total workload for the country
4. Determine the average number of calls a sales representative can make
per year
5. Divide the total annual calls required by the average annual calls made
by a sales representative to arrive at the number of sales
representatives needed

Sales Force Compensation

• Four components of sales force compensation
– Fixed amount
– Variable amount
– Expense allowances
– Benefits
• Straight salary, straight commission, and
combination of two

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Relationship Marketing
• In many cases the company seeks not an immediate sale but
rather a long-term supplier–customer relationship

Direct Marketing
• The use of consumer-direct (CD) channels to reach and deliver
goods and services to customers without using marketing
middlemen

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Direct Marketing

Direct mail

Catalog marketing

Telemarketing

Other direct-response marketing

Constructing a
Direct-mail Campaign

✓ Choose objectives
✓ Choose target markets and prospects
✓ Choose offer elements
✓ Test elements
✓ Measure success: lifetime value

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Direct Marketing
• Public and ethical issues

Irritation

Unfairness

Deception/fraud

Invasion of privacy

Customer Databases and Database Marketing

• A customer database
– An organized collection of
comprehensive information about
individual customers or prospects that
is current, accessible, and actionable
for lead generation, lead qualification,
sale of a product or service, or
maintenance of customer
relationships

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Customer Databases
Customer database Business database
• Transactions •Past purchases
• Registration information •Past volumes, prices, and profits
• Telephone queries •Buyer teams’ names
• Cookies •Contract status
• Every customer contact •Supplier’s share of customer’s
• Past purchases business
• Demographics •Competitive suppliers
• Psychographics •Competitive strengths and
• Mediagraphics weaknesses

Customer Databases and Database Marketing

• Companies can use their databases in five
ways

✓ To identify prospects
✓ To decide which customers get an offer
✓ To deepen customer loyalty
✓ To reactivate customer purchases
✓ To avoid serious customer mistakes

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Customer Databases and Database Marketing

• The downside of database marketing
– Some situations are just not conducive to database marketing
– Building and maintaining a customer database require a large
investment
– Employees may resist becoming customer-oriented and using the
available information
– Not all customers want a relationship with the company
– The assumptions behind CRM may not always hold true

THANKS

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SESSION 15

Managing Digital Communications:

Online, Social Media, and Mobile

Mar-Com Wrap up
www.youtube.com/watch?v=gfd2JBnXSQ8
www.youtube.com/watch?v=3OF6UZPdj4A
www.youtube.com/watch?v=rnGpSZmj-cA

Online Marketing
• Categories
– Web sites, Mobile,
– IoT, AI, Chat bots
– Social Media / blogs / groups
– e-mail, SMS, MMS
– AR, VR, games
– Viral, Affiliate, referral Marketing
– Programmatic, …..

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Online Marketing
• Communication Options

Web sites

Search ads

Display ads

E-Mail

MARKETING IN THE TIMES OF ALEXA

www.youtube.com/watch?v=fGaVFRzTTP4

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http://blog.red-website-design.co.uk/wp-content/uploads/2017/06/How-to-Win-at-SEO-in-
2017-The-Periodic-Table-Of-Ranking-Factors-1.jpg

Social Media
• Means for consumers to share text, images, audio,
and video information with each other and with
companies, and vice versa

Online
communities/forums

Blogs

Social networks

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Mobile Marketing

Is uniquely tied to one user

Is virtually always “on”

Allows for immediate consumption

Is highly interactive

MOBILE MEDIUMS

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Mobile Marketing
• Mobile apps
– Bite-sized software programs that can be
downloaded to smart phones

Mobile Marketing
• Being concise is critical

✓ Copy should be only 50% of screen

✓ Brands should limit ads to phrase pair
✓ Put brand logo in corner of ad frame
✓ Use only one or two bright colors
✓ Calls to action should be in a bright color

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Seven Key Design Elements of a Web site

Commerce Content

Connection Community

Communication Customization

Jeffrey Rayport and Bernard Jaworski propose that effective

sites feature seven design elements they call the 7Cs. To
encourage repeat visits, companies must pay special
attention to context and content factors and embrace another
“C”—constant change.

• Context. Layout and design

• Content. Text, pictures, sound, and video the site contains
• Community. How the site enables user-to-user communication
• Customization. Site’s ability to tailor itself to different users or to allow
users to personalize the site
• Communication. How the site enables site-to-user, user-to-site, or two-
way communication
• Connection. Degree that the site is linked to other sites

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Online Marketing

Advantages
• Can offer or send tailored
information/messages
• Can trace effects by UVs
clicks on a page/ad
• Contextual placement
• Can place advertising based
on search engine keywords
Disadvantages
• Consumers can screen out
most messages
• Ads can be less effective than
they appear (bogus clicks)
• Lost control over online
messages via
hacking/vandalism

Online Marketing
• Web sites
– Ease of use
– Physical attractiveness
– Microsites
• Search ads
– Paid search or pay-per-click ads
– Search engine optimization (SEO)

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Word of Mouth
• Face-to-face and phone
• Online
– Viral marketing (“word of mouse”)

Message source

• Messages delivered by attractive or popular

sources can achieve higher attention and
recall

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Developing Effective Communications

• Select the communications channels
– Personal communications
– Nonpersonal channels

Establish the Marketing Communications

Budget

• Affordable method
• Percentage-of-sales method
• Competitive-parity method
• Objective-and-task method

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Objective-and-Task Method

✓ Establish market share goal

✓ Select % of market reached by advertising
✓ Estimate % of prospects who should try brand
✓ Calculate ad impressions per 1% trial rate
✓ Find gross rating points to be purchased
✓ Calculate budget for cost of gross rating point

Selecting the Marketing Communications Mix

• Advertising
• Sales promotion
• Events and experiences
• Public relations and publicity
• Online and social media marketing
• Mobile marketing
• Direct and database marketing
• Sales force

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PREDICT THE
NEXT Year Participants
1 48
NUMBER
2 39
3 41
4 42
5 39
6 21
7 32
?
8 ?

CONCLUSION

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Developing Effective Communications

• Identify the target audience

• Set the communications objectives (DRIP)
– Establish need for category
– Build brand awareness
– Build brand attitude
– Influence brand purchase intention

How Marketing Communications Work?

• The communications
process models
– Micromodel of
consumer responses
• Learn – Feel – Do: High
involvement & high differentiation
•(automobile
Cognitiveor- house)
Learn
• Do – Feel – Learn: High
•involvement
Affective&- lowFeeldifferentiation
(airline tickets or personal
computers)
• Behaviour - Do
• Learn – Do – Feel: Low
involvement & low differentiation
(salt or batteries)

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FCB GRID

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