Integrated Marketing Communications Strategy

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Integrated Marketing

Communications Strategy
The Promotion Mix

The promotion mix is the specific blend of


advertising, public relations, personal selling,
and direct-marketing tools that the company
uses to persuasively communicate customer
value and build customer relationships
Major Promotion Tools
Emergence of New Media

• Traditional media e.g. TV, Radio….

• New media such as youtube ads, social media,


mobile etc.
Advertising

Paid form of non-personal presentation and


promotion of ideas, goods, or services by an
identified sponsor

– Broadcast
– Print
– Internet
– Outdoor
Print Ad
Outdoor
“ I do not regard advertising as
entertainment or an art form, but as a
medium of information. When I write an
advertisement, I don’t want you to tell
me that you find it ‘creative’.
I want you to find it so interesting that
you buy the product.”

David Ogilvy
Blue Star Ad
• Client: Blue Star

• Creative agency: Interface Communications, Mumbai

• TG: Residential Segment

• Value Proposition: ‘get office-like cooling at home’

Consumer Insight: ‘people not wanting to leave a well-


airconditioned room’ 

• Tone: Our tone continues to be premium, modern and


aspirational and this TVC will help us further strengthen our
equity amongst the discerning home buyers."
Thus, Advertising aims to…

• Clearly and persuasively communicate the


brand’s value proposition to target customers
“Advertising is Salesmanship in
Print”

~ John E. Kennedy
Activity
• View the TVCs carefully. Note down the
following:

• Objective of the ad
• Target audience
• Message strategy
Developing an Advertising Program
Setting Advertising Objectives
• It is important for advertisers to know what to
expect from a campaign or an ad

• Specific measurable objectives


e.g. “increase store traffic for next weekend’s sale
by 15% over last year” (Stores such as adidas)
e.g. “make 45% of the target audience try our
product” (Paper Boat drinks when they were
launched)
Setting Advertising Objectives

Informative advertising is used when introducing a new


product category; the objective is to build primary
demand

Persuasive advertising is important with increased


competition to build selective demand

Reminder advertising is important with mature products


to help maintain customer relationships and keep
customers thinking about the product
Table 15.1
Possible Advertising Objectives
Setting the advertising budget
• Product life-cycle stage
– New products require larger budgets
– Mature brands require lower budgets

• Market share
– Building or taking market share requires larger budgets
– Markets with heavy competition or high advertising clutter
require larger budgets

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Creating the advertising message
• Message strategy is the general
message that will be communicated
to consumers
Message strategy – Identifies consumer benefits

• Creative concept is the idea that will


Creative concept bring the message strategy to life and
guide specific appeals to be used in
an advertising campaign

Message execution • Characteristics of the appeals


include:
– Meaningful
– Believable
– Distinctive 18
Creating the advertising message contd..

• Message execution styles --


– Slice of life
– Lifestyle
– Fantasy
– Mood or image
– Musical
– Personality symbol
– Technical expertise
– Scientific evidence
– Testimonial or endorsement
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Advertising Analytics

Advertising Analytics 2.0 overcomes the


problem of finding out what communications
mix element has what specific effect on a
specified outcome such as sales.
Sales Promotion

Sales promotion refers to the short-term


incentives to encourage purchases or sales
of a product or service
Whereas advertising gives a reason
to buy, SP gives an incentive to buy

It is part of the Marketing spend of all companies and these days SP spends in
many companies exceed that of the ad spends
Growing importance of sales
promotion
• Product managers are under pressure to
increase current sales
• Companies face more competition
• Competing brands offer less differentiation
• Advertising efficiency has declined due to
rising costs, clutter, and legal constraints
• Consumers have become more deal-oriented

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Sales promotion objectives
• Setting sales promotion objectives includes using:
1. Consumer promotions: clear stocks; defense against
competition
2. Trade promotions => urge retailers to --
• Carry new items or more inventory
• Buy in advance
• Advertise company products
• Get more shelf space
3. Sales force promotions => include --
• More sales force support for new or current products
• Motivating salespeople to sign up new accounts
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Sales Promotion
Strategies and Tactics
Manufacturers
like HP and Insert photo p. 327
Microsoft often Microsoft/HP in-store
pay a fee for in- exhibit photo
store exhibits
Position = 2.9” horiz.,
1.5” vertical
Size = 4.6” TALL
Resolution: 300 dpi

10-26
Consumer Promotion Tools

Samples offer a trial amount of a product

Coupons are certificates that give buyers a saving


when they purchase specified products

Cash refunds are similar to coupons except that the


price reduction occurs after the purchase

Price packs offer consumers savings off the regular


price of a product
Consumer Promotion Tool
s
Premiums are goods offered either for free or at low price

Advertising specialties are useful articles imprinted with


the advertiser’s name, logo, or message that are given
as gifts to consumers

Point-of-purchase promotions include displays and


demonstrations that take place at the point of sales

Contests, sweepstakes, and games give consumers the


chance to win something—such as cash, trips, or goods
—by luck or through extra effort
Business Promotion Tools

Conventions and trade shows are effective to


reach many customers not reached with the
regular sales force

Sales contests are effective in motivating


salespeople or dealers to increase
performance over a given period
Public relations

Involves building good relations 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

– Press releases
– Sponsorships
– Special events
– Web pages
Nestle hires US public relations specialist APCO Worldwide to
handle Maggi crisis

With its public image becoming tainted in connection with


the food safety scandal in India, Nestle has hired US lobbying
and public relations firm APCO Worldwide in order to
reinstate its reputation among key stakeholders.

India's Economic Times, citing a person privy to the


development, reported that APCO would help Nestle amid
complaints that the Swiss food giant is not communicating
enough with stakeholders and consumers. The newspaper
reported it was APCO that organised and ideated Nestle's
first media conference on 5 June, two weeks after the food
safety scandal related to Maggi noodles broke out.
"Defending the brands, markets and reputations you have
worked so hard to create is critical for continued business
success. Let us show you how we can help protect your
permission to operate by anticipating and mitigating risks while
staying true to your values and brand," APCO says on its website.

Speaking at a press conference earlier, Nestle's global CEO Paul


Bulcke said the company withdrew Maggi noodles from shelves
because "consumers' trust was shaken", adding that it wants the
product back on shelves as soon as possible. With the
appointment of APCO, Nestle expects to tackle its troubles in the
Indian market as early as possible, and start selling the noodle
product, which contributes more than 20% of the firm's
revenues in India.
PR is used by everybody

• Political parties use PR – BJP used PR for Swachh Bharat campaign

• Companies use PR – British Petroleum used PR after the Mexican Gulf oil
spill

• Celebrities use PR – Virat Kohli uses a PR agency

• Countries use PR – India has multiple PR agencies

• Public personalities use PR – Donald Trump uses a PR vehicle (though not


very successfully except to his voter base)

• NGOs use PR – CRY uses PR to keep interest alive in its activities so that
donors can donate
Public Relations
Major Public Relations Tools

News Speeches Special events Written materials

Audiovisual Corporate Public service


Buzz marketing
materials identity materials activities

Social Mobile tour


networking marketing Internet
Some Prominent Indian PR Firms
PR impact and major PR tools
IMPACT TOOLS
• Lower cost than • News
advertising • Speeches
• Stronger impact on • Special events
public awareness than • Written materials
advertising • Audiovisual materials
• Corporate identity
materials
• Public service activities
• Buzz marketing
• Social networking 36
Personal Selling
Personal Selling
• It is the interpersonal arm of the promotion
mix

• Interpersonal interactions between


salespeople and individual customers – face-
to-face, via e-mail, through video or web
conferences etc.
The Nature of Personal Selling

Salespeople are an effective link between the


company and its customers to produce
customer value and company profit by:

• Representing the company to customers


• Representing customers to the company
• Working closely with marketing
The Nature of Personal Selling

Salespeople are an effective link between the


company and its customers to produce
customer value and company profit by:

• Representing the company to customers


• Representing customers to the company
• Working closely with marketing
The personal selling process
• The goal of the personal selling process is to get
new customers and obtain orders from them

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How salespeople spend their time

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Direct marketing

Involves making direct connections with carefully


targeted individual consumers to both obtain an
immediate response and cultivate lasting customer
relationships—through the use of direct mail,
telephone, direct-response television, e-mail, and
the Internet to communicate directly with specific
consumers

– Catalog
– Telemarketing
– Kiosks
Integrated marketing communications

…the whole is greater than the sum of the parts


Integrated Marketing Communications

The integration by the company of its


communication channels to deliver a clear,
consistent, and compelling message about the
organization and its brands
• IMC involves the use of multiple methods of media but
the message you send out should be a unified one. This
was done brilliantly by the BJP and their campaign
managers. The message was Brand Modi and what he
stood for.

They ran TV ads, print ads, radio ads, they used YouTube,
Facebook and Twitter. They targeted different audiences
and segments. They used TV to reach the average man.
They used Internet to reach out to the youngsters who are
online most of the time. They reached rural people
through road shows and rallies. Narendra Modi himself
addressed hundreds of rallied throughout the country and
he also has a great ability to communicate.
The 'Incredible India' campaign was an
integrated marketing communication effort to
support the Indian tourism industry's efforts
to attract tourists to the country.
Incredible India Campaign
• To promote India as an ultimate tourist destination on the global tourism
map, in 2002, GoI promoted the “Incredible India” campaign in the
overseas markets. The campaign was an integrated marketing
communication effort to attract tourists to the country.

• It projected India as an attractive tourist destination by showcasing


different aspects of Indian culture, history, spirituality, and yoga.

• This campaign included visible branding in the outdoor media such as


advertising at airports, on trams, taxis and buses and through the print,
online and electronic media as well as via participation in travel marts and
road shows. The campaign was conducted globally and received
appreciation from industry persons and travelers.
Forevermark to launch multimedia brand campaign

• Forevermark plans to roll out a multimedia campaign in


India to increase awareness about the diamond jewellery
 brand owned by De Beers. The campaign has been
planned by JWT, Forevermark's advertising agency globally.

• It will be launched across media including television,


outdoor and print with a special focus on the social media.
The company has increased its advertisement budget by
80% this year, he said. "Our expectation from the campaign
is that it will increase our brand awareness by up to 50-
60%."
Colgate launches new integrated marketing
campaign
Colgate-Palmolive (India) has unveiled a new integrated marketing
campaign for Colgate Sensitive Pro-Relief.

According to the Colgate spokesperson, a survey was conducted by


Colgate-Palmolive (India) Limited and Nielsen which revealed that
sensitivity is one of the top oral care problems and is faced by 40 per
cent Indians. The new campaign has been conceptualised on the core
insight that consumers tend to believe that they can cope with tooth
sensitivity by giving up hot/cold/sour food items or drinks.

The integrated marketing campaign will be supported by a vibrant mix


of communication and activation through various vehicles of mass
media such as TV, print, digital, radio, retail and other professional
channels.
MSM Launches Integrated Multi-Media Marketing
Campaign to Promote LIVSports.in

• Emphasizes that today’s youth is obsessed with their smart phones and tablets
to watch Sports and Entertainment – Today’s ‘screenagers’ have all acquired
the personalized “Me, Myself and I” tag! The campaign underlines that if you
are going to spend time on your connected devices, there's no better way to
utilize that time than enjoying Sports and Entertainment on LIV Sports

The key campaign objective is to create awareness about LIV Sports, a premier
action and entertainment packed digital Sports Entertainment destination,
across youth-focused media and to highlight that the FIFA World Cup 2014
matches will be streamed on LIVSports.in

LIV Sports targets both the avid Sports fan as well as the closet/entertainment
seekers, online, on the mobile and tablets
• LIV Sports has rolled out a 60-seconder Graffiti based TVC that
emphasizes on the brand’s unique selling points. Conceptualized by
Havas Worldwide, the ads are a great extension to the key concept – “
I, Me and My LIVSports.in”.

The brand building campaign is currently running on the MSM Network


channels and will be activated across multiple youth-focused media
avenues including on-air, Outdoor, Radio, In-Cinema advertising, digital
marketing, Social Media and BTL activities. The campaign leverages LIV
Sports key offering to its consumers – making available quality content
that is mass inclusive and not designed to cater only to ardent sports
fans. The digital destination will showcase LIVE and Video-on-demand
sports content, rich & informative world-class sporting data and analytics
in a fun, engaging and entertaining way through games like “Mohit Bana
Messi – Jerseyfy Me” and “Pehchaan Kaun”. Grey Digital has created the
interface for the portal as well the accompanying mobile and tablet app.
Arise India to invest Rs 50 crore on multi-media campaigns

• Arise India will channelise this investment into


various media vehicles like print, television
and radio presence, on-ground activations,
BTL campaigns, outdoor campaigns and digital
marketing. It will also seek to garner huge
eyeball catchment in ways of promotions and
associations with cricket matches, cinema
advertisements and Bollywood platforms.
 

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