IMCIMCTools and TechniquesTools and Techniques

IMC planIMC plan

Marketing Objectives

Analysis of promotional program situation

Analysis of communications process

Budget determination

Develop Integrated marketing communications program

Advertising Sales Promotion Personal selling PR DM

Integration and implementation of communication strategies

Monitoring, evaluating and controlling IMC program

Advertising vs Sales PromotionAdvertising vs Sales Promotion

• Advertising uses a variety of appeals to offer a reason why for purchase

• Primary appeal is emotional, sales promotions are rational…an immediate incentive to purchase

• Advertising objectives are generally long term and include brand building

• Sales Promotions objective is to get a sale quickly or induce trial

Sales PromotionsSales Promotions

Price Deals-product available at less than normal price, during deal period. Objective:

• New product trial • Immediate sales build up• Inventory at trade level• Inventory clearance at trade• To counter competitive movesQuantity Deals- more quantity of same product available at no extra

cost or just nominal increaseObjective:

• Prolonged consumption • trade up consumers to larger packs• move large quantiy from factory

Discounts- Other than normal cash discountsObjective:

• Push more stock to trade for immediate or early cashCoupons- A certificate that entitle the customer to some savings or

claim free/discounted giftObjective:

• Encourage product trial• Reward customer loyalty• Encourage continued usage• Introduce new product• Solicit enquiriesRefund or rebate- Money back offered on proof of purchase

Objective: • Encourage primary users to try the product• Encourage brand switching• Loading stock to dealers• Obtain retail display

Trading Stamps- Stamps attached to quantity of purchase, redeemable for various products or services

Objective: • Build customer loyalty• Ensure repeat purchasePremiums- A reward given to customer . Premiums and products may or may

not be interrelatedObjective:

• Reward customer loyalty• Encourage continued usage• Encourage new product trial• Promote off-season purchase of productDifferent types of premium• Packaged premium (encourage new product trial)• Banded premium• Container premium (long term reminder)• Over-the-counter premium (inventory clearance)• Free-in-mail premium (encourage brand loyalty)• Self-liquidating premium

SamplingObjective:

• Induce initial product trial• Encourage experiencing product first handConsumer Contests, Sweepstakes: Consumers invited to participate

based on GK, skills or creativity, chance or luckObjective:

• Create excitement around brand• Create brand awareness, increase attention and attract new

customers• Increase footfall to retail counters• Encourage purchase• Pre-empt competitor moves• Induce trialDealer Sales Contest

Objective: • Increase sales• Motivate dealer salesmen

Dealer GiftsObjective:

• Build relationship• Gain dealer co-operation

Push money; Money offered to trade for pushing specific brands or productsObjective:

• To motivate dealer to sell the specific lineMerchandise deals- Additional quantity of same or some other

product on purchase of specific quantity of some productObjective:

• Shift inventory• Expose other products

DemonstrationObjective:

• Convince customers• Motivate dealers• Reinforce advertising• Increase involvement of dealers, sales force, and customersTrade allowances- Temporary price reduction or

reimbursement of expenses (use of push strategy)• Trade or buying allowance• Buy-back allowance• Count and recount• Display allowance• Co-operative advertising• Trade fairs and exhibitions

Factors influencing Sales Promotion GrowthFactors influencing Sales Promotion Growth

• Increasing Competition• Customers becoming more price sensitive• Immediate positive impact on sales• Increase in parity products• Consumer acceptance of sales promotions• Expectations of price decrease• Advertising ineffectiveness• Increase in trade power• Emphasis on sales volume• Maximising profits• Introducing an element of interest (ex: Scratch card at petrol

bunks)• Encouraging impulse buying

Advantages/DisadvantagesAdvantages/Disadvantages

Advantages:• Price discrimination• Effect on consumer behaviour• Effect on trade behaviour

Drawbacks:• Decrease in brand loyalty• Increased price sensitivity• Quality may be tarnished• Dealers may forward buy and divert stock• Short term orientation