UNIT-6

Marketing communications are the

means by which firms attempt to inform,
persuade, and remind consumers (directly or
indirectly) about the products and brands
that they sell.
 Advertising

Sales Promotion
Ingredients of
the Marketing
Public Relations
communication
mix
Personal Selling

Direct Marketing
Marketers should understand the
fundamnetal elements of effective
communications. Two models are useful:
a macromodel and a micromodel.
 Hierarchy-of-Effects
Models
Cognitive Stage Awareness

Knowledge
Affective Stage
Liking

Preference

Conviction

Behavior stage Purchase

Identify target Design
Determine objective
audience communications

Select channels Establish budget Decide on media mix

Manage integrated
Measure results marketing
communications
 Formulating the communication to
achieve the desired response will require
solving three problems:

Message Creative
Message Source
Strategy Strategy
 In determining message, management
searches for appeals, themes, or ideas that will
tie into the brand positioning and help to
establish points-of-parity or points-of-
differences.
 Creative strategy are how
marketers translate their message into
a specific communication.

Informational Transformational
Appeals Appeals
• An informational appeals elaborates on product or
service attributes or benefits.

• Informational appeals assume very rational

processing of the communication on the part of the
consumer.

• Informational appeals are logic and reason rule

• A transformational appeals elaborates on a
non-product-related benefit or image.

• Transformational appeals often attempt to

stir up emotions that will motivate
purchase.
• The spokesperson’s credibility will influence the
consumer’s attention and interest.

• The three most often identified spokesperson’s

credibility are:
₋ Expertise
₋ Trustworthiness
₋ Likability
 Multinational companies wrestle with a
number of challenges in developing global
communications programs, they are about:
₋ Product
₋ Market segment
₋ Style
₋ Local or global
 Personal Non – Personal
Communication Communication
Channels Channels
 Personal communications channels involve
two or more persons communicating directly
face-to-face, persons-to-audience, over the
telephone, or through e-mail.
 The sub-channels of  The kinds of personal
personal communications
communications channels:
channels: - Advocate channels
- Instant massaging - Expert channels
- Independent sites - Social channels
 Non-personal channels are
communications directed to more than one
person and includes:
- Media
- Sales promotions
- Events and experiences
- Public relations
 Industries and companies vary
considerably in how much they spend on
promotion.
Affordable Method

Percentage-Of-Sales
Method
The method for decide on
the promotion budget
Competitive-Parity Method

Objective-And-Task Method
• Affordable Method
Set the promotion budget at what they think the
company can afford.

• Percentage-Of-Sales Method
Set promotion expenditures at a specified percentage of
sales (either current or anticipated) or of the sales price.

• Competitive-Parity Method
Set the promotion budget to achieve share-of-voice
parity with competitors.
• The objective-and-task method calls upon marketers
to develop promotion budgets by defining specific
objective, determining the tasks that must be
performed to achieve these objectives, and
estimating the cots of performing these tasks.

• The sum of these costs is the proposed promotion

budget.
 Companies allocate the marketing
communications budget over the six major
modes of communication-advertising, sales
promotion, public relations and publicity,
events and experiences, sales force, and direct
marketing.
Each communication tool has its own unique
characteristics and costs.
– Advertising
– Sales Promotion
– Public Relations and Publicity
– Event and Experiences
– Direct Marketing
– Personal Selling
Any paid form of non-personal presentation and
promotion of ideas, goods, or services.
Reaches large, geographically dispersed
audiences, often with high frequency.
Impersonal; one-way communication
The major tools are:
 Print Media
 Broadcast Media
 Outdoor Media
 Internet & Website
Informative Advertising Persuasive Advertising
Inform Consumers or Build Selective Demand
Build Primary Demand i.e Sony CD Players
i.e CD Players
Advertising Objective
Specific Communication Task
Accomplished with a Specific
Target Audience
During a Specific Period of Time

Comparison Advertising Reminder Advertising

Compares One Brand to Keeps Consumers Thinking
Another About a Product
i.e. Avis vs. Hertz i.e. Coca-Cola
 DEVELOPING ADVERTISING STRATEGY: CREATING
AD MESSAGES

Develop a Message
Focus on
Customer Benefits Creative Concept
“Big Idea”
Visualization or Phrase Advertising Appeals
Combination of Both Meaningful
Believable
Distinctive
 Communication Effects Sales Effects

Is the Ad Communicating Well Is the Ad Increasing Sales

Short-term incentives to encourage the
purchase or sale of a product or services.
Makes use of a variety of formats:
Discounts, premiums, coupons, contests, etc.
Attracts attention, offers strong purchase
incentives
Not effective at building long-term brand
preferences
 Stimulates quick response.
 Encourage Trials: Free newspaper copies
 Counter Competitor's Promotional activities
Increase short-term sales or help build long-term market
share.
 Attract new Customers
Ex:- khadi announces rebates on purchases during the
festivals.
 Get retailers to:
 carry new items and more inventory,
 advertise products,
 give products more shelf space, and
 buy product ahead.
 Or Price Discounting. Discount on normal
Price Promotion Price

Sample Trial amount of a product

Coupons Savings when purchasing specified

products

Money Refunds Refund of part of the purchase price

Reduced prices marked on the label or

Price Packs package

Premiums Goods offered free or low cost as an

incentive to buy a product
Advertising Articles imprinted with an advertiser’s
Specialties name given as gifts
 Cash or other rewards for the use of a
Patronage Rewards certain product

Displays and demonstrations that take

Point-of-Purchase place at the point of sale

Consumers submit their names for a

SweepStakes drawing. Chances of law suits are
minimal.
Consumers submit an entry to be
Consumer Contest judged
To increase the retail sales. Ex. Tambola
of TOI, Name Games
Presents consumers with something every
Game time they buy
Building good relationships with the
company’s various publics (stakeholders,)
building up a good corporate image.
The major tools are Press Releases,
Sponsorships , Special Events, Web
Pages.
To enhance the positive aspects and
minimize negative factors related to
products and organization.
 News
Web Site Speeches

Public Special
Service Events
Activities

Corporate Brochures,
Identity Written
Materials Audiovisual Materials
Materials
Press Relations Public Relations
Departments May
Product Publicity Perform Any of All
of the Following
Functions:
Public Affairs

Lobbying

Investor Relations

Development
The personal presentation by the
firm’s sales force for the purpose of
making sales and building strong
customer relationships.
Most effective tool for building buyers
preferences, convictions, and actions.
Personal interaction allows for
feedback and adjustments.
 Relationship-oriented.
 Pre-Sale Preparation
 Prospecting:
 The salesperson identifies qualified potential customers (called
prospects).
 Pre-approach:
 The salesperson learns as much as possible about a prospect
• before making a sales call.
 Approach:
 The salesperson meets the customer for the first time.
 Presentation:
 The salesperson tells the “product story” to the buyer,
highlighting customer benefits.
 Handling Objections:
The salesperson seeks out, clarifies, and overcomes customer
objections to buying.
 Closing:
 The salesperson asks the customer for an order.
 Follow-up:
The salesperson follows up after the sale to ensure customer
satisfaction and repeat business.

The selling process is transaction oriented; most

firms go beyond this and attempt to build mutually
profitable relationships.
Involves making direct connections
with carefully targeted individual
consumers to both obtain an
immediate response and cultivate
lasting customer relationships.
Many forms: Telephone
marketing, direct mail, online
marketing, etc.
Direct marketing uses consumer-direct
channels to reach and deliver offerings to
consumers without intermediaries.
Direct marketing is growing and offers
consumers key benefits.
Firms are recognizing the importance of
integrated direct marketing efforts.
MAJOR DIRECT MARKETING TOOLS
 Face-to-face selling Direct-response
TV marketing
 Direct mail
 Kiosk marketing
 Catalog marketing
 E-marketing
 Telemarketing
• Using internet to communicate and sell directly to the customers.
• Greater Interaction and individualization.
• Advantages-
• Tailored messages to engage customers
• Measurement of influence can be easily tracked.
• Engaging customers through Online communities.
• Contextual placement
• Disadvantages-
• Customers can screen out messages easily.
• Bogus clicks may show illusionary effectiveness.
• Messages can be hacked.
• Generates excitement, creates publicity, and conveys new
relevant brand related information through unexpected means.

• A buzz is a trigger that results in the word of mouth marketing.

It can be an idea, a phrase, a tagline, a logo, a mascot, an
advertisement, or any other trigger which makes people talk
about the brand or its product.
• It’s a subset of viral marketing.
• It tries to create a splash in the market place to showcase a
brand and it’s features.
• It involves the content which is unusual, outrageous, remarkable,
hilarious or secret.
• is a marketing technique that advertises a product to people
without them even realizing it.
• Product placement
• Covert Agents
• Product showcase in Malls
• Pre launch events
• Tasting events
• is a marketing tactic in which a company uses surprise and/or
unconventional interactions in order to promote a product or
service.
• Guerrilla marketing takes place in public places that offer as
big an audience as possible, such as streets, concerts, public
parks, sporting events, festivals, beaches, and shopping centers.
• Pros:
• Low budget, Memorable, Fun, Gain insights, Go viral, Build
partnerships.
• Cons:
• Risk of failure, Can be embarrassing or scary, Controversial, Lack of
approval
Companies consider several factors in developing
their communications mix, are:

– Type of Product Market

– Product Life-Cycle Stage

 Integrated Marketing Communication (IMC) is
a concept of marketing communications planning
that recognizes the added value of a comprehensive
plan. Such a plan evaluates the strategic roles of a
variety of communications discipline.

Coordinating Media Implementing IMC

 Media coordination can occur across and
within media types because multiple media
deployed within a tightly defined time frame
can increase message reach and impact.
• Integrated marketing communications can make greater sales
impact and produce stronger message consistency.

• IMC should improve the company’s ability to reach the right

customers with the right message at the right time and in the right
place.