Professional Documents
Culture Documents
Planning and Strategy
Planning and Strategy
Planning and Strategy
IMC
•
Some Basic Terms and Concepts
Media planning is the series of decisions involved in delivering the promotional
message to the prospective purchasers and/or users of the product or brand.
• The media plan is the guide for media selection. It requires development of specific
media objectives and specific media strategies (plans of action) designed to attain
these objectives. Once the decisions have been made and the objectives and
strategies formulated, this information is organized into the media plan.
• The medium is the general category of available delivery systems, which includes
broadcast media (like TV and radio), print media (like newspapers and magazines),
direct mail, outdoor advertising, and other support media. The media vehicle is the
specific carrier within a medium category. For example, TOI, HT, BW are print
vehicles; NDTV, CNBC, AIR-FM are broadcast vehicles. Specific decisions must be
made as to the value of each in delivering the message.
• Reach is a measure of the number of different audience members exposed at least
once to a media vehicle in a given period of time.
• Coverage refers to the potential audience that might receive the message through
a vehicle. Coverage relates to potential audience; reach refers to the actual
audience delivered.
• Frequency refers to the number of times the receiver is exposed to the media
vehicle in a specified period.
The Changing Media Landscape
• A few predictions
– Traditional media budgets will not change for
years
– Traditional media will take on a different role, with
reduced budget share
– How consumers use media will never be the same
– Synergism/integration is the new model
The Changing Media Landscape
• Traditional Media
- Television, radio, newspapers, magazines,
outdoor, direct mail
• Traditional but Different
– Public relations, product placements,
sponsorships, events
• New Media
– Internet/interactive, wireless, podcasts,
search ads, blogs, video games, branded content
New Media
• Wireless—mobile phones, smartphones
• Branded content – programming developed to deliver a message
such as web-isodes or product integration
• Social Media (Facebook, Twitter, YouTube)
• Blogs- online information of specific content
• Video games – brands integrated into games or games created
for advertainment
• Paid Search - targeted ads appear when people type queries
into search engines such as Google. Advertisers bid for
placement.
Factors Leading to Changes in
Media
• Consumers are busy and time crunched
• Multitasking becoming more prevalent
• New media options/media proliferation
• Changing lifestyles
• Technology developments/changes
• Media Fragmentation
• Consumer attitudes toward media
Developing the Media Plan
Situation Marketing Creative
analysis strategy plan strategy plan
Evaluate performance
Using Index Numbers
Index Number
Percentage of users
in a demographic segment
Index = X 100
Percentage of population
in the same segment
Using the Brand Development
Index
• Selection considerations
– Objectives sought
– Product or service characteristics
– Budget
– Individual preferences
Target Audience Coverage
Target Full Partial Coverage
Market Market Market Exceeding
Proportion Coverage Coverage Target Market
Flighting
Pulsing
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Reach and Frequency
A. Reach of One Program B. Reach of Two Programs
Message Variation
Wearout
Advertising Units
Media Factors Determining
Frequency
Clutter
Repeat
Scheduling
Exposure
Media
Factors
Editorial
Attentiveness
Environment
Number of
Media Used
Creative Aspects and Mood
• Creative aspects
– Media may drive strategy, or strategy may drive
media
– Media and creative departments must work
closely together
• Mood
– Media can drive mood
– Media and vehicle image can carry over
to the message placed within them
Flexibility in Media Planning
Strategies
Market
Market threats
opportunities
Flexibility
Changes in
Availability of
media or media
media
vehicle
Television Advantage and
AdvantagLeismitations
Mass coverage
High reach
Disadvantages
Sight, sound, motion
Low selectivity
High prestige
Short message life
Low cost
Disadvantages
High frequency
Audio only
Flexible
Clutter
Quality reproduction
Disadvantages
High information content Long lead time for
ad placement
Low cost
Short ads
Advantages
Poor image
Location specific
Local restrictions
High repetition
Easily noticed
The Role of the Internet and
Social Media in the IMC Program
Internet Communications Objectives
Create
Awareness
Generate
Stimulate Trial
Interest
Objectives
Create an Image
©
The Website
Contact
Web Design
Issues Commerce
Connection
Construction
Communication
Communication
Content
Content
Community
Community
Customization
Issues in Web Design and Customer Interface
Context Content
Commerce Community
Connection Customization
E-Commerce
Fast growth in
Rapid growth rates
“downloadable”
likely to continue
purchases
Advertising
Sales Promotions
Public Relations
Direct Marketing
Integrating
Advertising the Internet –
Web Ads – Cost Per
Paid Search
Impression
Behavioral
Paid Search/
Targeting
Behavioral Targeting
Additional Forms
Internet Search Advertising
• Search Engine Marketing – the entire set of techniques
and strategies used to direct more visitors from search
engines to marketing web sites
• Paid Placement – Text only ads targeted to keyword search
results on search engines through programs such as
Google AdWords, Yahoo Search, or Microsoft Sites
(MSN/Windows Live). Sometimes referred to as Paid
Placement, Pay-per-click, Cost-per-click advertising
• SEO
• SMM
socia
l
medi
Search Engine Marketing
• Behavioral Targeting – targeting online ads to consumers
based on their Web searching behavior
• Contextually Targeted Ads – Text ads targeted to the
content of web pages using programs such as Google
AdSense Placement of ads determined by content of the
web page where they are shown
• Organic Search Optimization – practice of using a range of
techniques to improve how well a site or page gets listed
in search engines for specific topics
Rich Media
“A broad range of interactive digital media that
exhibit dynamic motion, taking advantage of
enhanced sensory features such as video, audio,
and animation.”
Online Commercials
Video on Demand
Webisodes
Other Forms
Sales Promotions Are Common on
Websites
Nike Uses the Internet for Public
Relations
©
Direct Marketing and the Internet:
Direct Mail (Email)
Often used by
Highly targeted
catalogers
Direct Mail
(Email)
Attempts to reach
Relies on
those with specific
email lists
needs
©
Social Media
• Online technologies and practices that
people use to share content, opinions,
insights, experiences, perspectives and
media themselves.
• Created, initiated, circulated and used by
consumers intent on educating one another
about products, brands, services, people
and issues
Examples of Social Media
• Social networking web sites (MySpace, Facebook,
Twitter)
• Creativity works sharing sites
– Video (youtube), photos (Flickr), music (Jamendo)
• User-sponsored blogs (Cnet.com)
• Company sponsored blogs
• Company sponsored cause/help sites
• Business networking sites (Linkedin)
• Collaborative websites (Wikipedia)
• Commerce communities (ebay, Amazon)
Popular Social Media Sites on the
Internet
Uses of Social Media in IMC Mix
• Enables companies to talk to their customers
• Way to engage customers (contests, online voting, online
games, submit ideas
• Enabling consumers to see others using a product
• Provide information to customers
• Enables customers to talk to one another as well as
companies
– Word-of-mouth
• Support causes that are important to consumers
• Excellent way to target specific types of consumers
Internet Marketing Promotion Strategies:
TV Selling
Radio
Direct Mail
Telemarketing
Direct
Marketing Consumer
Syndicates Credit Cards
Changing
Structure of Technological
Markets Advances
Direct Marketing Combines With . . .
Advertising
Public
Internet Relations
Direct
Marketing
Support Personal
Media Selling
Sales
Promotions
A Comprehensive Consumer Database
Length of Inquiry
Education
Residence History
Unique
Age Income
Identifier
A Business-to-Business Database
Industrial Headquarters
Contact Info
Classification Location
Telephone Promotion
Revenues
Number History
Source of
Number of Inquiry
order, inquiry,
Employees History
referral
Credit Time in Unique
History Business Identifier
Objectives of Database Marketing
Improve Selection of
Market Segments
Stimulate Repeat
Purchases
Objectives
Cross-selling Other
Products
Customer Relationship
Management
Direct Marketing Strategies
One-Step Two-Step
Infomercials Telemarketing
Teleshopping TV Spots
Home
shopping Direct Mail
Types of Direct Mail
All forms of advertising sent directly to
prospects through the Postal Service or through
private services
Catalogs Inclusions
Flyers Postcards
Handbills Brochures
A Direct Response Print Ad
Telemarketing
Outbound Inbound
Repetitive
person-to-person
Nonrepetitive
person-to-person
Party Plans
Measuring Effectiveness
Selective reach
Segmentation capabilities
Frequency potential
Flexibility
Timing
Personalization
Costs
Measures of effectiveness
Direct Marketing Disadvantages
Accuracy
Image Content
factors support
Do Not Rising
Contact lists costs
Personal Selling
Promoting Products
• Direct promotion
– Through advertising and promotion
– Direct-marketing efforts
– Dyadic communication allows for immediate
feedback and adjustment
– Plays critical role in industrial settings
• Indirect promotion
– Through resellers
– Through sales people
Stages of Personal Selling Evolution
Selling activity limited to
Provider
order-taking and delivery
Surveying
Mapmaking
Guiding
Fire Starting
Customer Relationship Marketing
Customer Product
Service Quality
Loyalty/
Product Depth of Reward
Uniqueness Product Line Program
Salesperson Classifications
Assess situation, determine needs
Creative
Selling Present ability to satisfy needs
Get order
Good
Reliable
Communicator
Relationship- Customer-
Responsive
oriented focused
Results- Problem
oriented Solver
1. Knowledgeable 1. Unprepared
2. Empathizes 2. Uninformed
3. Well organized 3. Aggressive
4. Prompt 4. Undependable
5. Follows through 5. No follow through
6. Has solutions 6. Presumptive
7. Punctual 7. Walk-ins
8. Hard working 8. Gabbers
9.Energetic 9.Problem avoiders
10.Honest 10.Lack of respect
Pros and Cons of Personal Selling
Advantages Disadvantages
Two-way interaction Messages may be
with prospect inconsistent
Public Relations
Personal
Selling Direct Marketing
Sales Promotion
The Internet
Personal Selling + PR
Involved in community
Creates goodwill
Personal Selling + Sales Promotion
Reseller
Sales
Promotion Consumer
Targets
Sales Force
Characteristics Affecting
Performance
Strength of the field manager
Provision of
Follow-up
marketing
activities
intelligence
Attainment of
Program
communications
implementations
objectives
Quantitative Measures of Sales Results
Orders
Sales Volume
Margins
Quantitative
Measures
Customer Accounts
Sales Calls
Selling Expenses
Customer Service
Qualitative Measures of Sales
Results
Selling Skills
Sales Related
Activities
Sales Promotion
Sales Promotion
An extra A tool to
incentive to buy speed up sales
Targeted to
different parties
Sales Promotion Vehicles
Consumer-Oriented Trade-Oriented
Samples Contests, dealer incentives
Bonus packs
Packs Cooperative advertising
Price-off deals
Loyalty programs
Frequency programs
Event marketing
Reasons for Increase in Sales Promotion
Growing power of retailers
Brand proliferation
Increased accountability
Competition
Clutter
Consumer Franchise-Building (CFB)
Promotions
CFB Promotional
Objectives
Non-FB Promotions . . .
Non-FB Promotions
Shortcomings
To defend
To obtain trial (maintain)
and purchase current
Objectives customers
Enhance IMC
To target a
efforts and build
specific segment
brand equity
Sampling
The purchase
The products are
cycle is
The products divisible and can
relatively short
are of relatively be broken into
so the
low unit value, small sizes that
consumer can
so samples can reflect the
purchase in a
don’t cost much products features
relatively short
and benefits
time period
Sampling Methods
Door-to-door
In-store sampling
Cross-product sampling
With newspaper/magazine
Event sampling
Internet sites
Coupons
The Nearly
oldest
st and 2640 billion
bi
most widely used distributed each
sales promotion tool year in the US
Coupons
80
percent of
consumers
use coupons and
25% use them regularly
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Premiums
Premium: an offer of an item of
merchandise or service either free or
at a low cost that is an extra
incentive for customers
Self-liquidating
Free Premiums: Premiums: require
Only require purchase consumer to pay some
of the product or all of the cost of the
premium
Contests and Sweepstakes
Bonus Packs
Refunds and
Other Price-off Deals
Rebates
Promotional
Tools
Frequency/
Event
Loyalty
Marketing
Programs
Trade-Oriented Sales Promotion Objectives
Trade-oriented sales promotion is targeted to marketing intermediaries such as
wholesalers and retailers
Maintain trade
Obtain distribution of support for existing
new products products
Objectives
Encourage retailers
Build retail
to display
inventories
existing brands
Types of Trade-Oriented
Promotions Manufacturers use a variety of trade
Contests and promotion tools as inducements for
Incentives wholesalers and retailers.
Buying
Trade Allowances Allowances
discount or deal to stock, promote or display manufacturer’s product
Point-of-Purchase Promotional
Displays Allowances
Sales Training
Programs Slotting
Allowances
Trade Shows retailers charge fees for a slot or position on shelf
Cooperative
Advertising
cost of advertising is shared by more than one
intermediary
Promotion Agencies’ Shifting Role
Traditional New and Improved
Single
Single agency
agency contact
contact Agency
Agency team contact
©
The Sales Promotion Trap
1 2
3 4
Public Relations and Publicity
INTEGRATED MARCOM
ProfSG
Public Relaions
• A versatile communications tool used by just about
every type of organisation
• Concerned with strategic management of information
to ensure that the firm achieves specific
communications goals.
• It is not always the case that positive publicity is the
outcome of a formally administered PR programme,
because it is often impossible to achieve a net positive
outcome.
• Often PR is used to mitigate or reduce the effects of
unfavourable publicity resulting from undesirable
events or crisis management scenarios.
• It can be used both within and outside the
organisation
– with the firm trying to communicate with a range of
external publics in order to create a positive
impression in people’s minds.
– as an internal marketing communications tool, i.e.
creating the correct spirit within firms and persuading
all staff to pull in the same direction in terms of
marketing effort.
• Particularly important for marketing policies
based on the concepts of long-term relationship
marketing.
Publics
• The idea of publics is central to the art of managed PR.
• The 8 basic publics for PR are:
– i. The community at large
– ii. Employees
– iii. Customers-past, present and future
– iv. Suppliers of raw materials and services, other than
financial
– v. The money market
– vi. Distributors
– vii. Potential employees
– viii. Opinion leaders
Publics
3 main types of public referred to in the definition are:
i. Internal publics:
• They include all those who belong to the company, for example
employees.
ii. External publics:
• These include those who already buy an organisation’s products (e.g.
current customers), those who might buy in future (e.g. prospects), and
those who could change the legal framework within which the
organisation currently operates (e.g. legislators).
iii. Intermediary publics:
• They are those people who are responsible for presenting and interpreting
information to external publics. They include those who work in the media
(e.g., journalists) and in other information processing roles in society (e.g.
teachers). Such people will be resentful at an attempt to manipulate them.
Hence, relationships with intermediary publics need to be developed over
the long-term, and with integrity, if they are to be successful.
2 key objectives for PR to achieve for an
organisation, which are:
• i. Generating high levels of awareness about
an organisation and its products among its
present and future customers
• ii. Building a favourable reputation and high
levels of goodwill for an organisation and its
products and activities among its various
publics
MPR can contribute to the following
objectives:
• i. Build awareness
• ii. Build credibility
• iii. Stimulate the sales force and dealers
• iv. Hold down promotional costs
Media used in Public Relations:
The various communicative media used for PR activity include:
i. Press releases:
• These are statements of the news, opinions and background information about issues (e.g.
new product launch) that an organisation wishes to see in the news media
ii. Newsletters and journals:
• These are publications produced on behalf of organisations, which contain material
favourable and/or complementary to the organisation’s activities
iii. Corporate gifts:
• These items, which include calendars, diaries, desk pads, etc., can be used to promote the
organisation’s corporate identity, by reinforcing recognition of a logo, organisation name, or
campaign slogan
iv. Exhibitions:
• While some organisations find. It worthwhile to maintain permanent displays which promote
a positive image of the organisation (even charging for admission in some cases), the vast
majority of exhibitions are temporary and/or mobile (e.g. supporting the launch of products
at a trade show)
v. Video and audio-visual presentations:
• These are particularly used when dealing with dealers, distributors and opinion formers
vi. Educational publications:
• Information presented impartially can prove to be excellent PR for an organisation (e.g. В-
school surveys by various magazines can be used by management institutes)
vii. Sponsorships:
• PR helps in sponsoring television programmes and events, aiming to generate goodwill by
supporting a ‘good cause’.
In order to achieve the above-mentioned objectives, PR performs various functions,
like:
Press relations:
It involves presenting news and information about the organisation in the most
positive light
Product publicity:
It sponsors efforts to publicise specific products
Corporate communication:
This promotes understanding of the organisation through external and internal
communications
Lobbying:
This deals with legislators and government officials to promote or defeat legislation
and regulation
Good PR companies that specialise in crisis management maintain very close links with
the powers that be.
Counseling:
Advising management about public issues and company positions and image, us
attitude includes advising in the event of a product mishap.
Thus public relation is one of the most effective promotional techniques and is a
respected one because of the third party endorsement and for its being non-paid. It is
one of the most essential aspects, which leads to an effective marketing.
In order to achieve the above-mentioned objectives, PR performs various functions,
like:
Press relations:
It involves presenting news and information about the organisation in the most
positive light
Product publicity:
It sponsors efforts to publicise specific products
Corporate communication:
This promotes understanding of the organisation through external and internal
communications
Lobbying:
This deals with legislators and government officials to promote or defeat legislation
and regulation
Good PR companies that specialise in crisis management maintain very close links with
the powers that be.
Counseling:
Advising management about public issues and company positions and image; advising
in the event of a product mishap.
Thus public relation is one of the most effective promotional techniques and is a
respected one because of the third party endorsement and for its being non-paid. It is
one of the most essential aspects, which leads to an effective marketing.
The major tools in MPR are:
Publications:
• Companies rely on extensively on published materials to reach and influence their target markets.
These include annual reports, brochures, articles, company newsletters, magazines and
audiovisuals
Events:
• Companies can draw attention to new products or other company activities by arranging special
events like news conferences, seminars, exhibits, contests, anniversaries, sponsorship in sports and
cultural events
News:
• Create favourable new s about the company, its products and people. News generation requires
skill in developing a story concept, researching it and writing a press release.
Speeches:
• The speeches of Chairman or Managing Director of reputed company at their Annual General
Meetings (AGM) are one of widely used tools. The most prominent example is ITC and HLL.
Public service activities:
• Companies can build goodwill by contributing money and time to good causes
Cause related marketing:
• It addresses the social issues of the day by providing resources and funds, while focusing on the
marketing objectives of the company.
Identity media:
• Companies need a visual identity that the public immediately recognises. The visual identity is
carried by company logos, stationery, brochures, signs, business forms, business cards, buildings,
uniforms and dress codes.