Integrated Marketing

Communication and Promotion

Roshan Paudel

Integrated Marketing Communication

• Integrated marketing communication refers to integrating all the methods of brand promotion to promote a particular product or service among target customers.

• In integrated marketing communication, all aspects of marketing communication work together for increased sales and maximum cost effectiveness.

• Integrated Marketing Communications (IMC) is an expansion of utilising both modern and traditional marketing strategies, to optimise the communication of a consistent message conveying the companies brand to stakeholders (Kitchen & Burgmann, 2015)

• IMC is an approach to brand communications where the different modes work together to create aseamless experience for the customer and are presented with a similar tone and style that reinforces the brand’s core message.

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Communication Mix

The Marketing Communications Mix is the specific mix of advertising, personal selling, sales promotion, public relations, Event and experience, publicity and direct marketing a company uses to pursue its advertising and marketing objectives.

It is also called promotion mix.

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Communication objective Sales Education Retention Referral Bran Awareness

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Factors influencing Communication mix

• Types of product• Use of product• Complexity of product• Purchase frequency and quantity• Fund available• Type of market• Size of market• Geographical area• Stage of product life cycle• Level of competition• Promotional objective • Price of product• Desire of market Penetration• Degree of product differentiation

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Product life cycle and Communication Mix.

Pre-Introduction: Light advertising, pre-introduction publicity

Introduction: Heavy use of advertising, public relations for awareness, sales promotion for trial

Growth: Advertising, public relations, branding and brand marketing, personal selling for distribution

Maturity: Advertising decreases, sales promotion, personal selling, reminder & persuasion

Decline: Advertising and public relations decrease, limited sales promotion, personal selling for distribution

Advertising

 Any paid form of nonperson presentation and promotion of ideas, goods, or services by an identified sponsor.

Cost effective way to disseminate message to built brand preference and/or educate people.

Identifying target market and buyer motive play vital role in advertising.

Decision of 5M? Mission Message Media Money Measurement

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Types of advertising

Informative Advertising Brand Awareness Knowledge of product

Persuasive Advertising Reminder Advertising Reinforcement advertising

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Deciding on Advertising Budget

Factors Affecting Budget decision. Stage in PLC Marketing Share and consumer base Competition Advertising frequency Product substitutability

Advertising elasticity?

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Advertising medium

Television Ads Print Ads Radio Ads Film Ads

Choosing Among major Media Type1. Target audience media habit2. Product and message characteristics3. cost

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Alternative advertising options

Place(out-of-home) Advertising Billboard Public Space Product placement Point of Purchase

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Evaluation of Advertising Effectiveness

Communication effect research Consumer feedback method. Portfolio test. Laboratory test.

Sales effect Research

Sales Promotion13

Short-term incentives to encourage the purchase or sale of a product or a service.

Sales promotion includes a wide variety of promotion tools designed to stimulate earlier or stronger market response

Advertising offer reason to buy where it offer incentive to buy

SP is an action-focused marketing event whose purpose is to have impact on the behavior of the firm’s customers

Types of sales promotion14

Consumer promotion Sample, coupon, cash refund, price off,

premium, free trial, prizes, warranty Trade promotion

Price off, advertising and display allowance, free goods, stock return

sales force promotion Trade shows and conventions, specialty

advertising

CONSUMERS PROMOTION TOOLS

SAMPLES Offer a trail amount of a product EXAMPLE

COUPONS COUPONS are certificates that gives

buyers a saving when they purchase specified products

EXAMPLE

CASH REFUND Similar to coupons except that the price

reduction occurs after the purchase EXAMPLE

PRICE PACKS Offer consumer saving off the regular

price of a product EXAMPLE

PREMIUMS Are good offered either for free or at low

price EXAMPLE

ADVERTISING SPECIALIES Are useful articles imprinted with the

advertisers names ,logo or message that are given as a gift to consumer

EXAMPLE

POINT OF PURCHASE PROMOTION

Includes displays and demonstrations that take place at the point of sales

EXAMPLE

CONTEST,SWEEPSTAKES & GAMES

CONTEST

SWEEPSTAKES To submit their names

GAMES TO PRESENT

TRADES PROMOTION TOOLS

DISCOUNT• It is also known as price-off.• Discounts price cut off the list price on

a particular quantity purchased a stated time

ALLOWANCE They are the amount offered in return for

an agreement by the retailer to feature the manufacturer’s products in some way; displays, advertising or otherwise.

FREE GOODS Free goods are the extra merchandise

offered to middlemen who buy a specific amount of a product

.Companies also offer push money and specialty advertising items to the middlemen.

SALES FORCE PROMOTION

SALES FORCE PROMOTION Companies spend huge amount on

promotion focused on industrial consumers.

Trade shows and conventions. Sales contests.

TRADE SHOWS AND CONVENTIONS

TRADE SHOWS AND CONVENTIONS are effective to reach many customer not reached with the regular sales force.

SALES CONTEST Sales contest are effective in motivating

sales people or dealer to increase performance over a given period.

Objective of Consumer Promotion

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Building product awareness Creating Interest Increase the sale volume in short term Attract more customer Encourage customer for buying Retain customer and maintain relationship Increase repurchase Brand and store switching Increase footfall Getting the market information Encourage the selling of new product

FACTORS IN GROWTH OF SALES PROMOTIONS

Product managers are under pressure to increase current sales

Companies face more competition Competing brands offer less

differentiation to rising cost, clutter and legal constraints

Consumers have become more deal-oriented

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