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8/4/2019 1.into to mmc

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American Marketing Association (AMA) definesMarketing :

The process of planning and executing theconception, pricing, promotion, and distribution ofideas, goods, and services to create exchanges thatsatisfy individual and organizational objectives.

Marketing Communication plays an important rolein this exchange to happen.


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Basic task of marketing is to combine the 4 Ps into amarketing program to facilitate the potential forexchange with consumers in the market place.

Marketing-mix

Product

Price

Promotion

Place


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Marketing Communication

The means by which firms attempt to inform,persuade, and remind consumers directly orindirectly about the products and brands that they

sell.

Marketing Communication is a collective term for allthe various types of planned messages used to build

a brand.


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Functions of Marketing Communications

Provide information. Stimulate demand Differentiate the product Highlight the utility of the product Counter competition and stabilize sales

Build image Provide brand reminders Reinforces past purchases and brand experiences


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Explicit Role Guide to prospectivebuyers

Primary and selectivedemand Product differentiation Encouraging innovation

tendency to consume Financial support to

media

Implicit Role Lowering of prices Advertising and

Competition Improves product quality Increase in economic

activity and employment Effect on Business

Cycles

Role of Marketing Communication


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History of Marketing Communications

Started ever since the time of Barter System Pre-printing era(1438):

Trademarks (Brands)

Signs (Ancient outdoor advertising)Town Criers

First known printed advertisement in 1500s

(William Caxton of London- handbill of rules for the guidance of clergy atEaster was put on the church doors)

First ad on circulated sheet appeared in German newspamphlets (1525)-Hand cards.( This praised the virtues of a mysterious drug)


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The first printed newspaper in English- 1622

(Weekly News of London)

First ad in newspaper -1625

The first ad in America appeared in 1704(Ad offered a reward for the capture of a thief)

In the 17th century ads in the form ofannouncements. ( Importers of Coffee,Tea,Chocolate etc.)

Pre industrialization Era (Till 1800)

The Era of Industrialization (1800-1875)

(Advertising became widespread, Dailies became popular-1850)


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Consumer culture dawns (1875-1918)

Advertising became a full-fledged industryThe 1920s (1918-1929)

Advertising finds fameand glamour as it was

the most modern of allprofessions.

Ads play on socialanxieties

Segmentation begins

by social class

Lux fabric wash ad-1927


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The Depression Era (1929-1941)

Radio emerges as a new mediumThe theme in the ad traded on the anxieties ofthe day

WWII and theFifties (1941-1960)

Products linkedwith patriotism

Fascination withscienceSubliminaladvertising scarehits


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Peace, Love and Creative Revolution-(1960-1972)

Cultural revolution and Creative revolution Shift to Sales promotion activities to meet sales. Regulation and oversight took hold (1973-1980) ACT, FTC and NARB become active Present day advertising-technology driven and

customer oriented.


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Indian Marketing Communication History

The personal selling era (Barter era) The product era (manufacture products that attracted consumers) The sales era (Transition from information to persuasion) The consumer era ( Emergence of the study of consumer

psychology, lifestyle advertising, in-depth research, subliminaladvertising, concept of USP etc.)

The positioning era (Importance on, appeals based on theperceived value of the product, emotions like love and envy, socialacceptance)

Value marketing era( current age- integrated marketingcommunication used)


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Personal Selling

Advertising Sales Promotion Interactive /Internet Marketing

Publicity

Promotion Mix

Promotion : All the personal and impersonal efforts bya seller or sellers representative to inform, persuade orremind a target audience of their products.Promotion mix is the combination of different kindsof promotional tools used by a firm to advertise and sell

its products.

Direct

Marketing


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Factors affecting the Promotion Mix

Product ConsiderationsNature of the productProduct ImageStage of Products Life Cycle

PackagingDegree of Customization

Pricing Policy

Distribution Target Market Characteristics

Level of CompetitionGeographic Coverage

Buyer Readiness Stage


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IMCIntegrated Marketing Communication involves

coordinating the various promotional elementsand other marketing activities that communicate

with a firms customers. The process of using all forms of promotion toachieve maximum communication impact.

The evolution of IMC(need for coordination, need for one stopshopping, understanding that customer perceptionof brands/co. is a synthesis of the bundle of

message exposed to, more effective method ofbuildin relationshi with stakeholders with the


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Reasons For Growing Importance of IMC

Shift from media advertising to other forms ofmarketing communication

Movement away from advertising-focusedapproaches that emphasize mass media.

Shift in power from manufacturers to retailers Rapid growth of database marketing

Changes in agency compensation (Objectivemeasures-sales, market share, profitability.Demands for accountability)

Rapid growth of the Internet

Increasing importance of branding


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Promotion Tools

1.Sales PromotionShort-term incentives to encourage the purchase or saleof a product or service.

Advantages Can stimulate quick increases in sales by targeting

promotional incentives on particular products. Good short term tactical tool.

Disadvantages If used over the long-term, customers may get used to

the effect. May damage the brand image.


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2.Public Relations/ Publicity

Building good relations with the companys various

publics by obtaining favorable publicity, building up agood corporate image, and handling or heading offunfavorable rumors, stories, and events

Advantages Credibility Low cost (although not totally free) Often results in word-of-mouth. Image building.

Disadvantages Not always under control of organization Can be negative


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3.Personal Selling

Oral presentation in a conversation with one or moreprospective purchasers for the purpose of makingsales.

Advantages Direct contact between buyer and seller allows formore flexibility.

Can tailor sales message to specific needs ofcustomers.

Allows for more direct and immediate feedback. Sales efforts can be targeted to specific markets and

customers who are best prospects.


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Disadvantages

High costs per contact Expensive way to reach large audiences Difficult to have consistent and uniform message

delivered to all customers

Importance of Personal Selling

When the product is of high value. Highly complicated and technical products. Newly launched product. Which requires demonstration and after sales services. In the case of products which dont fall in the impulse

category.


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Advantages

More receptive to direct-marketingAllows marketers to be very selective and target,

specific segments of customers. Messages can be customized for specific customers. Effectiveness easier to measure.

4.Direct Marketing

Is a system of marketing by which organizationscommunicate directly with target customers togenerate a response or transaction.


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Disadvantages Lack of customer receptivity and very low response

rates. Clutter. (too many messages) Image problems particularly with telemarketing.

5. Advertising

Any paid form of non-personal presentation andpromotion of ideas, goods, or services by an

identified sponsor.

AdvantagesAdvertiser controls the message Cost effective way to communicate with large


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Effective way to create brand images and symbolic

appeals Often can be effective way to strike responsive chord

with consumer Often can be effective way to strike responsive chord

with consumerDisadvantages

High costs of producing and running ads Credibility problems and consumer skepticism Clutter Difficulty in determining effectiveness


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6. Interactive / Internet Marketing

Allows for a back and forth flow of information,whereby users can participate in and modify theform and content of the information they receive inreal time.

Advantages Can be used for a variety of IMC functions Messages can be tailored to specific interests and

needs of customers Interactive nature of the Internet leads to higher

level of involvement Can provide large amounts of information to

customers.


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Disadvantages

Internet is not yet a mass medium as manyconsumers lack access.Attention to Internet ads is very low. Great deal of clutter on the Internet.

Audience measurement is a problem on theInternet.

Use of the Internet as an IMC Tool

-As an advertising medium to inform, educate andpersuade customers

-As a direct sales tool


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Direct marketing methods

Direct mailCatalogsTelemarketing

Direct response adsDirect sellingInternet


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Consumer-oriented

Targeted to the ultimateusers of a product orservice

Coupons Sampling Premiums Rebates Contests Sweepstakes

Trade-oriented

Targeted towardsmarketing intermediariessuch as retailers,wholesalers, or

distributors

Promotion allowances Merchandise allowances Price deals Sales contests Trade shows


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Sales Promotion Uses

Introduce new products.Get existing customers to buy more.Attract new customers.

Combat competition.Maintain sales in off season.Increase retail inventories.Enhance personal selling efforts.


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To obtain customer database information.

To communicate and interact with buyers. To provide customer service and support.

To build and maintain customer relationships.

As a tool for implementing sales promotion. As a tool for implementing publicity/public

relations programs.

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