Integrated Marketing Communication

Integrated Marketing Communication
Session 3
Siddiq Musaliar
BJP leaders Piyush Goyal & Ajay Singh

handled media strategy.
Advertising legends O&Ms Piyush
Pandey, McCann Worldgroup's Prasoon
Joshi and Sam Balsara of Madison
World lent their skills.
Advertising agency Soho Square, part
of WPP Group, handled television,
radio and print campaigns with catchy
slogans such as "Ab ki Baar Modi
Sarkar".
Participants in the IMC Process
Organizing for Advertising & Promotions

The way a company (the client)
organizes depends on
Its size
The number of products it markets
The role of advertising and promotion in
the marketing mix
The budget
Its marketing organization structure
Advertising Dept. Under a Centralized System
President
Production
Finance
Marketing
research
Marketing
Advertising
Research
and
development
Sales
Human
resources
Product
planning
Pros & Cons of a Centralized System

Pros
Better
communications
Fewer
personnel
Cons
Hard to understand
the overall
marketing strategy
Longer
response time
Staff continuity
More top management

involvement
Impractical for
multiple brands,
products, divisions
Decentralized Advertising System

Corporate
Finance
Production
Sales
Marketing
Product
Management
Brand
Manager
R&D
Human
Resources
Marketing
services
Advertising
Dept
Marketing
Research
Ad agency
Brand
Manager
Sales promotion
Ad agency
Merchandising
Package design
Pros & Cons of Decentralization

Pros
Cons
Concentrated
managerial attention
Internal conflicts
Rapid problem and

opportunity response
Lack of authority
Increased flexibility
Internal focus
Pros & Cons of In-house Agencies

Pros
Cost savings
More control
Increased coordination
Access to top
management
Cons
Less experience
Less objectivity
Less access to top
creative talent
The Ad Agencys Role

Reasons for using an ad agency
Highly skilled specialists
Specialization in a particular industry
Objective viewpoint of the market
Broad range of experience
Full-Service Agencies
Full range of
marketing
communication
and promotion
services
Planning
advertising
Performing
research
Creating
advertising
Selecting media
Nonadvertising
services
Strategic market
planning
Interactive
capabilities
Sales
promotions
Package design
Direct
marketing
Public relations
and publicity
Producing
advertising
Creative Boutiques
Creative
Boutiques
Provide only
creative services
May subcontract from

full-service agencies
Strength is turning out

creative work quickly
Agency Compensation Methods
Commissions from media

Fee
Cost, and incentive-based systems
Evaluating Agencies
Financial Audit
Qualitative Audit
Verify costs, expenses
Planning
Personnel hours billed
Program development
Payments to media
Implementation
Payments to suppliers
Results achieved
Direct Marketing Agency Activities
Direct-Marketing Agency Services
Database
management
Media services
Direct mail
Creative capabilities
Research
Production
Sales Promotion Agencies

Promotional planning
Creative research
Premium design and
manufacturing
Catalog production
Contest/sweepstakes
management
Functions Performed by Public Relations Firms
Strategy
development
Public
affairs
Special
events
Generating
publicity
News releases,
communication
Managing
crisis
Research
Coordination
w/promotional
areas
Lobbying
Functions Performed by Interactive Agencies
Interactive Media Creation

Websites
Banner ads
Search engine optimization
Mobile marketing
Social media campaigns
Digital media
Collateral Services
Typical collateral services
Marketing research
Package design
Consultants
Photographers
Printers
Video production
Event marketing
Consumer Behavior
The process and activities people engage

in when searching for, selecting, purchasing,
using, evaluating, and disposing of
products and services
Consumer Decision Making

Decision Stage
Problem
recognition
Post-purchase evaluation
Psychological Process
Motivation
Learning
Sources of Problem Recognition
Out of Stock
Dissatisfaction
New Needs
or Wants
Related Products,
Purchases
Market-Induced
Recognition
New
Products
Ad Highlighting Consumer Dissatisfaction
Marketer-Induced Problem Recognition
Maslows Hierarchy of Needs
Selfactualization
needs
(self-development
and realization)
Esteem needs
(self-esteem,
recognition, status)
Social needs
(sense of belonging, love)
Safety needs
(security, protection)
Physiological needs
(hunger, thirst)
To What Needs is the ad Appealing?
Freudian Psychoanalytic Approach

Strong
inhibitions
Subconscious
Mind
Complex and
unclear motives
Probing the Minds of Consumers

In-depth
interviews
Information Search
Perceptions
Marketers want to know
How consumers sense external
information
How they select and use sources of
information
How information is interpreted and given
meaning
The Perception Process
Receive
Select
Organize
Interpret
What is a sensation?
Taste
Immediate,
direct response
of the senses
Smell
Hearing
Touch
Sight
Gaining Attention With Color
Appealing to the Senses
Perfume on
sidewalks
Scented
cards
Product
Samples
The Selective Perception Process

Selective Exposure
Selective Attention
Selective Comprehension
Selective Retention
Selective Attention to Advertising
Subliminal Perception
Perceiving Stimuli Below the

Conscious Threshold of Perception
Evaluation of Alternatives
All Available Brands
Brand A
Brand B
Brand C
Brand D
Brand E
Brand F
Brand G
Brand H
Brand I
Brand J
Brand K
Brand L
Brand M
Brand N
Brand O
Evoked Set of Brands

Brand B
Brand E
Brand F
Brand I
Brand M
Two Forms of Evaluation Criteria

Evaluative Criteria
Objective
Subjective
Price
Style
Warranty
Appearance
Service
Image
Consumers Have Many Attitudes

Individuals
Products
Ads
Brands
Attitudes
Toward
Media
Companies
Retailers
Organizations
Multi-Attribute Attitude Model
Measuring Components of Model
Beliefs
How likely is it that Nike running shoes provide

good cushioning?
Very likely _ _ _ _ _ _ _ _ _ Very unlikely
Importance
Good cushioning in a running shoe is:

Very important _ _ _ _ _ _ Not at all important
Attitude Toward the Object
How do you feel about purchasing Nike running

shoes?
Very good _ _ _ _ _ _ _ _ _ Very bad
Ways to Change Attitudes

Change beliefs about an important attribute
Change perceptions of the
value of an attribute
Add a new attribute to the
attitude formation mix
Change perceptions or beliefs about
a competing brand
Adding Attributes Changes Attitudes
How Consumers Learn
Thinking
Conditioning
Modeling
Based on
intellectual
evaluation and
problem
solving
Based on
conditioning
through
association or
reinforcement/
punishment
Based on
emulation
(copying) of
behavior of
others
Lollipop Bling Uses Classical Conditioning
Classical Conditioning Process (Association)
Unconditioned stimulus
(lollipop)
Unconditioned response
(sweetness)
Conditioned stimulus
(Mariahs Lollipop Bling)
Conditioned stimulus
(sweetness)
Shaping
Shaping is the reinforcement of

successive acts that lead to a desired
behavior pattern
Subculture Ads
Reference Groups
A group whose
perspectives or values
are being used as the
basis for ones
Judgments
Opinions
Actions
Types of reference
groups
Associative
Aspirational
Disassociative
Situational Determinants
Purchase
Situation
Usage
Situation
Communications
Situation
Thank You

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Integrated Marketing Communication

BJP leaders Piyush Goyal & Ajay Singh

Participants in the IMC Process

Organizing for Advertising & Promotions

Advertising Dept. Under a Centralized System

Pros & Cons of a Centralized System

More top management

Decentralized Advertising System

Pros & Cons of Decentralization

Rapid problem and

Pros & Cons of In-house Agencies

The Ad Agencys Role

May subcontract from

Strength is turning out

Agency Compensation Methods

Commissions from media

Cost, and incentive-based systems

Verify costs, expenses

Personnel hours billed

Direct Marketing Agency Activities

Direct-Marketing Agency Services

Sales Promotion Agencies

Functions Performed by Public Relations Firms

Functions Performed by Interactive Agencies

Interactive Media Creation

The process and activities people engage

Consumer Decision Making

Sources of Problem Recognition

Ad Highlighting Consumer Dissatisfaction

Marketer-Induced Problem Recognition

Maslows Hierarchy of Needs

To What Needs is the ad Appealing?

Freudian Psychoanalytic Approach

Probing the Minds of Consumers

The Perception Process

Gaining Attention With Color

Appealing to the Senses

The Selective Perception Process

Selective Attention to Advertising

Perceiving Stimuli Below the

Evoked Set of Brands

Two Forms of Evaluation Criteria

Consumers Have Many Attitudes

Multi-Attribute Attitude Model

Measuring Components of Model

How likely is it that Nike running shoes provide

Good cushioning in a running shoe is:

Attitude Toward the Object

How do you feel about purchasing Nike running

Ways to Change Attitudes

Adding Attributes Changes Attitudes

How Consumers Learn

Lollipop Bling Uses Classical Conditioning

Classical Conditioning Process (Association)

Shaping is the reinforcement of

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