Professional Documents
Culture Documents
Unit 2 AM
Unit 2 AM
➢Philip Kotler defined IMC as, “the concept under which a company carefully
integrates and coordinates its many communications channels to deliver a clear,
consistent message”
Advertising
➢ Any paid form of non personal presentation and promotion of ideas, goods, or
services by an identified sponsor.
• Reaches large, geographically dispersed audiences, often with high frequency;
• Low cost per exposure, though overall costs are high;
• Consumers perceive advertised goods as more legitimate;
• Dramatizes company/brand;
• Builds brand image; may stimulate short-term sales;
• Impersonal, one-way communication;
• Expensive
Advertising
Personal Selling
➢ Personal presentation by the firm’s sales force for the purpose of making sales and
building customer relationships.
• Most effective tool for building buyers’ preferences, convictions, and actions;
• Personal interaction allows for feedback and adjustments;
• Relationship-oriented; Buyers are more attentive;
• Sales force represents a long-term commitment;
• Most expensive of the promotional tools
Personal Selling
Sales Promotion
➢ Short-term incentives to encourage the purchase or sale of a product or service.
• May be targeted at the trade or ultimate consumer;
• Makes use of a variety of formats: premiums, coupons, contests, etc.;
• Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging
sales;
• Stimulates quick response; Short-lived;
• Not effective at building long-term brand preferences
Sales Promotion
Public Relations
➢Public relations - Building good relationships with the company’s various publics by
obtaining favorable publicity, building up a good “corporate image”, and handling or
heading off unfavorable rumors, stories, and events.
• Highly credible; Very believable;
• Many forms: news stories, news features, events and sponsorships, etc.;
• Reaches many prospects missed via other forms of promotion;
• Dramatizes company or product;
• Often the most under used element in the promotional mix;
• Relatively inexpensive (certainly not ‘free’ as many people think--there are costs involved)
Public Relations
Direct Marketing
➢Direct marketing - Direct communications with carefully targeted individual
consumers to obtain an immediate response and cultivate lasting customer
relationships.
• Many forms: Telephone marketing, direct mail, online marketing, etc.;
• Four distinctive characteristics: Nonpublic, Immediate, Customized, Interactive;
• Well-suited to highly-targeted marketing efforts
Direct Marketing
4Cs of IMC
Communication Mix tools should be coordinated in the following ways:
➢ Coherence
• Do your various marketing communications make sense together as a whole? Each message within your Marketing
Communication Mix should be part of the “bigger picture” in how it relates to other messages and your core sales
and marketing theme.
➢ Consistency
• Are your various marketing communications saying the same thing? The messages your customers receive through
your various promotional efforts should not be contradictory and should all repeat your core sales and marketing
theme.
➢ Continuity
• How does your marketing message change over time? As well as coordinating communication tools and messages
to be consistent, thought must be given to how the message you convey evolves through various stages in the sales
cycle.
➢ Complementary
• How do the sum of the parts of your communication effort come together? The beauty of a well-managed
Integrated Marketing Communication effort is when the complementary synergy you create overall exceeds any
one effort.
Importance of IMC
➢Receive Better Results
The word “Communication” has come from the Latin word “communis”, which means common.
Thus, communication signifies sharing of ideas in common. The dictionary meaning of
communication is to convey or exchange information and share ideas.
It is a process through which two or more persons transmit or exchange thoughts and ideas
among themselves. According to W. H. Newman and C. F. Summer, “Communication is an
exchange of facts, ideas, opinions or emotions by two or more persons.”
Communication is the process of transmitting information and understanding from one person
to another or from one unit to other unit with a view to getting the desired response from the
receiver. Through this process two or more persons exchange ideas and understanding among
themselves to achieve the desired effect in the behaviour of another person.
It is a two-way channel for transmitting ideas, feelings, plans, commands, instructions, reports
and suggestions that influence the attitude towards an organisation’s objectives. The
communicator’s goal is to convey the meanings or ideas without distortion. Success of the leader
and the enterprise depends upon adequacy of communication.
It is the responsibility of the managers to establish and maintain the channels whereby they can
convey their own thinking and policies to the subordinates, and can receive their reactions and
an account of their problems.
“Communication is the sum total of all the things one person does when he wants to create
understanding in the mind of another. It is a bridge of meaning. It involves a systematic and
continuous process of telling, listening and understanding.”
First, there is something which is transmitted, such as facts, feelings, ideas, etc. It implies that
there must be a receiver if communication is to occur.
Second, the definition emphasises the understanding element in the communication process.
Sharing of understanding would be possible only when the person to whom the message is sent,
understands in the same sense in which the sender of message wants him to understand.
So, communication involves something more than mere transmission of the message or
transmission and physical receipt thereof. The correct interpretation and understanding of the
message is important from the point of view of organisational efficiency. Effective
communication, as such, might be the accurate transmission and receipt thereof, and its correct
understanding.
In their book “Business Communication Today” C. L. Bovee, J. V. Thill and B. E. Schatzman write:
“Communication is the process of sending and receiving messages. However, communication is
effective only when the message is understood and when it stimulates action or encourages the
receiver to think in new ways.”
Communication made among persons to convey their personal information, message or thought
are personal communication; but exchange of information, facts and ideas relating to business
may be termed as “Business Communication”. Business Communication refers to the
communication relating to business activity which means providing goods and services to the
consumers with a view to earning profit.
It is a process through which information, facts, ideas, orders, advices, decisions, etc. are
conveyed, sent or exchanged between/among the persons associated with business. Thus,
Communication relating to trade, law, Finance, administration, management, etc. of a business
enterprise may be termed as ‘Business Communication’.
The success of a business enterprise depends largely upon good communication. Effective
communication wipes out the hindrances in achieving the target of a business enterprise.
Ineffective communication or communication failure may cause loss of money, time, energy,
opportunity and even goodwill of a business.
In this age of globalisation every business enterprise, big or small, requires proper communication
for its existence. The success of any business concern largely depends upon successful
communication.
In this age of speed, complexity and competition, sending of information regarding the product
to the ultimate consumer is very important. Unless they know about the product of the business
enterprise, it is not possible for them to make contact and buy the product. Communication plays
a vital role in this sphere.
1. Message: This is the subject-matter which is transmitted or passed by the sender to the
other party or group of persons. This might be opinion, order, suggestion, attitude, feeling, view,
etc.
2. Sender: He/she is the person who intends to make contact for passing information and
understanding to other person.
3. Receiver: The person to whom the message is meant for is known as receiver or
communicate.
5. Symbols: These are the words, actions and signs which are passed on by the sender (
encoding) while communicating with the receiver .
6. Feedback: When the receiver acknowledges (decoding) the message of the sender and
responds back to him/her, feedback takes place. Without feedback communication is
incomplete.
1. Practical,
2. Factual,
4. Target-oriented,
5. Persuasive.
1. Practical:
Effective business communication deals with the practical aspect of the information explaining
why, how, when and the like queries. It avoids impractical, imaginary, unnecessary or repetitive
information to eliminate waste of time. It conveys important information to the receiver.
2. Factual:
In general a business message contains facts and figures in place of overall idea. Important date,
place, time, etc. should be clearly mentioned in a business communication.
The language used in business communication should be simple, clear, brief and without
ambiguity. Sometimes charts, photographs, diagrams, etc. are used to condense or clarify the
information.
4. Target-Oriented:
A business communication must have a specific objective and must be planned properly so that
the objective can be achieved.
to perform his/her duties, a customer to buy a product or service etc. The basic characteristics
The first thing in communication process is to be familiar with the idea or problem to be
communicated. If the communicator has no clear view of this idea or problem, its reception on
the other end may give similar obscure idea and may thus be misunderstood. So, the process of
communication demands full and clear view of the idea or problem to be communicated.
When the idea is converted into a symbolic form in terms of some kind of language, it may be
termed as the encoding of the idea. The language may consist of words, symbols, charts,
diagrams, gestures, etc. This encoding depends upon the personal characteristics of the sender
as well as the receiver. The style, length, form, clarity, etc. of the message varies from person to
person.
3. Transmission:
In transmitting the ideas or decisions, certain matters are to be taken into consideration. The first
consideration should be to select an appropriate channel (i.e., verbal, non-verbal, written, etc.)
and a medium (telephone, e-mail, letter, face to face conversation, etc.).
This selection depends upon urgency, distance, availability of means, cost and time factor, etc.
Next thing is to determine the person or persons to whom such ideas or decisions are to be
communicated. So, the selection of right course and right person for communication is essential
The receiver must get the message to make the communication fruitful. Suppose a letter or email
is sent to a person. It is not possible for him/her to go through it and understand its meaning
Decoding means understanding or bringing out the meaning of the message. It is very vital. If the
receiver understands the message in the same sense as the sender intends, the objective of
6. Sending Feedback:
Feedback is the receiver’s response to the message. Having understood the message the receiver
reacts to it and responds accordingly. The feedback evaluates the effectiveness of the message.
If the sense of the message is realist properly, the feedback or the response will be desirable and,
if it is not, one has to understand that there are some barriers in the process. Steps are required
7. Channel: Channels are the routes or paths of the communication. The sender’s idea is
transmitted to the receiver through this path. Again, the receiver sends feedback to the sender
through the channel. Thus, channel is used at least twice in the process of communication.
Oral or telephonic message, letter, different audio and video media, computer, e-mail, fax, etc.
are the popular channels of communication. Selection of channel depends upon the nature of
the message, necessity, urgency and situational conditions.
8. Noise: It is not a separate step in the process. It may be present at every step and make the
communication less effective or ineffective. Noise distorts the message and conveys ideas not
intended by the sender resulting in chaos, confusion and complexity.
i. Formal Channel:
When communication is carried on through structured, organised or official route, the channel is
called ‘Formal Channel’. ii. Informal Channel:
i. Downward, ii.
Horizontal or Lateral.
i. Downward Channel:
Channels used for flowing information from top towards bottom are called ‘Downward Channel’.
Communication of information from lower level to upper level is possible through ‘Upward
Channel’.
When communication takes place between the persons of same rank a ‘Horizontal Channel’ is
said to be formed.
On the basis of the ways or means of expression business communication channels are of two
types:
(II) Oral.
I. Written Channel:
When communication takes place in writing through letters, memos, reports, proposals, e-mail,
faxes, etc. ‘Written Channel’ is said to be in use.
B. the receiver stays in a far off place and cannot be brought to contact easily;
‘Oral Channel’ includes different media e.g., face-to-face conversations, speeches, meetings,
telephone, voice mails, audio and video tape, teleconference or video conference, etc.
C. interaction is necessary.
When information flows from the persons occupying higher positions to those at lower levels, it
is called ‘Lower Level Communication’. The flow of communication being downward it is also
called ‘Downward Communication’. It is usually conveyed through oral or written orders, reports,
manuals, etc. and is the most common practice in all business organisations.
In an organisation, people at lower levels have a high degree of loyalty, faith, respect and
sometimes a mixed feelings of fear and obedience towards the people of higher levels. This leads
to high degree of acceptance of the communication.
In the lower level communication there is a possibility of distortion of information through gossip
or ‘grapevine’ communication. In such a case the ultimate objective of communication is lost. So,
care should be taken to send the information, message or order and receive feedback without
any loss, alteration or distortion of information.
When communication moves upward from the subordinates to the superiors, it is called ‘Upper
Level Communication’. The means of upper level communication includes the submission of
reports and suggestion, opinions and attitudes, complaints and grievances, etc.
The upper level employees can understand the pulse of the lower level employees through such
communication. But, it is less common because it is less favoured by the top managers due to its
troublesome and perplexing nature.
‘Horizontal or Sidewise or Lateral Communication’ takes place between the people of same level
in the positional hierarchy of the organisation through oral or written method. Communication
between the employees or supervisors or managers of the same department or another
department is examples of horizontal or lateral communication. It helps to promote
understanding and coordination in the organisation. It is especially important in large or
decentralised organisation.
Business communication has a significant role to play in management whose objective is to direct
the individual efforts for securing overall co-ordination of organisational activities. It performs
the energizing function in the organisation by transmitting information, facts and ideas and
thereby making co-ordinated efforts possible. Communication can, as such, be regarded as basic
to the functioning of an organisation.
Theo Haimann has rightly said that the success of management activities, to a great extent,
depends on good communication system. Communication creates favourable work environment,
motivates the workers to work hard and, thus, management activities become easier. Through
communication process it is possible to supply all necessary and important messages or
information at all levels of the organisation.
Business communication promotes managerial efficiency and induces the human elements in an
organisation to develop a spirit of co-operation which finally leads to peak performances. The
process of leadership depends on effective communication. Sound communication system is an
essential requirement of good labour-management relations.
With the help of communication there is better understanding of the objectives and policies
which encourage co-ordination. Growing importance of human relations in every business with
customers and workers has made communication the life-line of business. Producers are required
to make sales appeal to their customers.
The subordinates are required to communicate their grievances and complaints to their superior,
otherwise they may lead to conflicts. Proper communication helps in implementing the decisions
effectively and leads to smooth running of the business. It creates mutual trust and confidence
and builds up the morale of the employees and, thus, provides job satisfaction to them.
Business communication is all the more important in management because the success of an
enterprise depends upon how effectively its employees understand one another. Most of the
problems of business can be attributed to poor communication between the managers and
workers.
So, lack of communication or poor communication will affect a business in different ways. It will
greatly affect understanding of the employees, place them in utter confusion, create apathy to
their work, hinder their willing co-operation, put co-ordination out of gear and invite dislocation,
chaos and conflict in all business affairs and, ultimately, the very survival of the business will be
at stake.
The importance of effective communication in management has been widely recognised in recent
years. It has become one of the most vital factors in the efficient performance of management.
It has an important bearing on management affairs from different points of view.
Above discussion of the significance of business communication may be stated point- wise as
follows:
1. Movement of Information:
Communication helps to move information from one place to another and from one person to
another. It develops a chain of understanding among the workers of different levels in a business
enterprise.
The smooth and efficient functioning of an enterprise entirely depends upon the effectiveness of
the system of communication. It provides the basis of direction and actuates people to action in
accordance with the desires of the management authority. According to G. R. Terry:
“Communication serves as the lubricant fostering the smooth operation of the management
process.”
Communication encircles all the functions of business management. So, without it, no function
of business management can proceed towards its desired goal. It is the tool of managerial
efficiency. The managerial efficiency depends upon getting things done through other people by
making them know and understand what the manager wants them to do. It is the work of
communication to keep the employees informed of everything necessary for smooth work
performance.
4. Proper Planning:
Communication is very helpful in planning the activities of business. It provides the managers
information and ideas necessary for sound planning. According to Theo Haimann “Only through
good communication can company policies and practices be formulated and administered.”
Secrecy of information creates suspicion among the workers and separates them. Understanding
of the common problems unites them for showing a better record of their performance.
5. Basis of Decision-Making:
Communication helps the managers to take essential decisions and conduct vital operations. The
quality of decisions made in an organisation entirely depends on the volume and quality of
information available to the management authority. In the absence of effective communication
it may not be possible for top management personnel to come in closer contact with their
subordinates.
6. Basis of Co-Operation:
By promoting mutual understanding and meeting of minds, communication paves the way for co-
operation. Communication creates condition for mental acceptance of the work before its actual
performance. This mental acceptance is the will- to-do before actually doing it. Communication
involves understanding and willing acceptance of orders and instructions and acts as the basis for
individual and co-operative efforts.
7. Means of Co-Ordination:
Co-ordination implies orderly group efforts to provide unity of action. This unity of action is the
result of team work which, in turn, depends, to a great extent, upon clear understanding of the
organisational goals, the mode of their achievement and situation of the work. The function of
the business communication is to get the workers fully informed of everything relating to the
work and bring a perfectly tuned harmony in their work.
8. Job Satisfaction:
Proper communication system extends mutual trust and faith. It thus creates confidence in the
ability of their manager, promotes their loyalty to the enterprise and stimulates their job interest.
Proper communication system enables the subordinates to bring to the notice of the managers
their viewpoints, grievances and troubles. This facility raises the morale of the workers and,
ultimately, leads to job satisfaction for high performance.
A business enterprise comes into contact with several social groups, e.g., customers, investors,
trade unions, government and the local community. It must maintain cordial relations with each
of these groups to develop a favourable image. It must continuously strive to convince the public
in general that its actions are taken in the interest of the society. No public relation can be
established without communication.
Communication creates motivation. Through it the managers and employees are wellacquainted
with the latest information relating to the organisation. This leads to avoidance of hostility,
acceptance of reality, change of attitude, consciousness of responsibility and— ultimately—
motivation to work.
12. Loyalty:
The confidence and loyalty of the lower employees on the management personnel increases as
they become aware of the competence of efficiency of their boss through communication. It
helps to strengthen mutual trust.
Workers’ unrest is a problem today. It is communication which can establish peace in the
industry. Two-way communication helps to develop mutual cooperation and understanding.
Through downward communication the management personnel send their orders, instructions,
directions, etc. to the subordinates.
On the other hand, the upward communication helps the subordinates to convey to their
superiors their demands, grievances, complaints, suggestions, etc. Thus, through communication
of facts and information between the superiors and subordinates, industrial
peace can be established.
Meaning of Branding:
Branding has been around for centuries as a means to distinguish the goods of one producer
from those of another. A brand is a specific term that may include a name, sign, symbol, design
or a com-bination of these, with an intention to identify goods or services of a particular seller.
In fact, the word ‘brand’ is derived from the Old Norse word brander, which means ‘to bum’.
Branding helps to develop customer loyalty and it is advertised by sellers under their own
name. A good brand develops a corporate image. Usually customers prefer brands as they can
easily differentiate the quality.
The American Marketing Association defines a brand as “a name, term, sign, symbol, or design,
or a combination of them, intended to identify the goods or services of one seller or group of
sellers and to differentiate them from those of competitors.”
According to Kotler and Amstrong, ‘a brand is a name, term, sign, symbol or design or a
combination of these that identifies the maker or seller of a product, or services’.
Therefore, a brand is a product or service which help the organization differentiate their
products or services from others.
1. Functional
2. Rational
3. Tangible
2. Related to Brand Identity: e.g. Coca-Cola, Calvin Klein, Gucci, Tommy Hilfiger, Marlboro
1. Symbolic
2. Emotional
3. Intangible
Building a Brand helps both the consumer and the manufacturer creating a win-win situation
for both the parties.
2. Experience of customers with products of same brand help them to quickly decide
whether they will want to go with their purchase decision or not making their decision
easier.
7. It helps buyers evaluate quality of products, especially if they are unable to judge a
product’s characteristics.
9. The buyer may derive a psychological reward from owning the brand (e.g., Rolex
watches or Mercedes).
1. For a firm, the brand provides legal protection towards unique features or aspects of the
product.
2. Brand loyalty helps organization to retain their existing customers when diversifying
from one line of products to other. It provides security of demand and creates barrier
for other manufactures to easily tap existing customers.
3. Firms can charge a premium for owning a brand boosting profit on every sale.
4. Product can be copied, but brand cannot. Once a brand is established, it’s the invaluable
asset for an organization.
5. A well established brand adds towards the overall value of the firm while calculating its
net worth.
8. It identifies the companies’ products making repeat purchases easier for customers.
10. It helps the firm introduce a new product that carries the name of one or more of its
existing products.
13. It helps in fostering brand loyalty, thus helping to stabilize market share.
Scope of Branding
A brand is a perceptual entity that is rooted in reality but reflects the perceptions and perhaps
even the idiosyncrasies of consumers. Ultimately a brand is something that resides in the minds
of consumers.
A branding strategy shall be considered successful only when the consumers have an answer to
the above three questions which is strong enough to make them believe that there are
significant differences in the products or services provided by a brand than others.
1. Physical Goods – e.g. Parle-G biscuits, Tata Tea, Maruti S-Cross etc-
2. Services – e.g. Indigo Airlines, ICICI Bank, Apollo Hospital, Zomato, Uber etc-
3. Stores – e.g. Big Bazar, Croma, 99 Store, Max Store, Trendz, Amazon etc-
6. Organization – e.g. The Rolling Stones, DHL, Kirlosker, GE, TATA, Reliance, HUL etc.
7. Idea – e.g free trade, freedom of speech, family planning, child education, save the girl
child, etc.
8. A good brand should be easy to translate into all languages in the markets where the brand
will be used.
9. A good brand should suggest the product benefits or suggest its usage.