Integrated Marketing Communications Essay

INTEGRATED MARKETING COMMUNICATIONS Definition: Integrated Marketing Communication Definition: IMC is a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communications disciplines – for example, general advertising, direct response, sales promotion, and public relations – and combines these disciplines to provide clarity, consistency, and maximum communications impact by The American Association of Advertising Agencies (the 4A’s)

The Emergence of IMC The Market revolution forcing a movement towards IMC: • • A shift of marketing dollars from media advertising to other forms of promotion, particularly consumer and trade oriented sales promotions A movement away from relying on advertising-focused approaches, which emphasize mass media such as television and national magazines, to solve communication problems A shift in marketplace power from the manufacturer to the retailer The rapid growth and development of database marketing Demands for greater accountability from advertising agencies and changes in the way agencies are compensated The rapid growth of the Internet, which is changing the very nature of how companies do business and the ways they communicate and interact with consumers • • • •

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The Role of Marketing Communication Marketing communication performs several functions for consumers: • Consumers are told how the product is used, by what kind of person, and where and when • Consumers learn about who makes the product and what the company and the brand stand for • It allows companies to link their brands to other people, places, events, brands, experiences, feelings, and things • It also contributed to brand equity by establishing the brand in memory and crafting a brand image Marketing communication contributes specifically to brand equity in the following ways: • By creating awareness of the brand • Linking the right associations to the brand image in the consumer’s memory • Eliciting positive brand judgments or feelings • Facilitating a stronger consumer-brand connection

Marketing Communication Forms Marketing communication consists of 6 major modes of communication: Advertising: Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor Sales Promotion: A variety of short-term incentives to encourage trial or purchase of a product or a service Events and Experiences: Company sponsored activities and programs designed to create daily or special brandrelated interactions Public relations and publicity A variety of programs designed to promote or protect a company’s image or its individual products Direct marketing: Use of mail, telephone, fax, e-mail, or internet to communicate directly with or solicit response or dialogue from specific customers or prospects Personal selling: Face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders Advertising Sales Promotion Events & Experiences • Sampling • Fairs and trade shows • Coupons • Rebates • Allowances • Continuity programs • Premiums and gifts • Contests and sweepstake s • • • • • • Sports Entertainment Festivals Causes Factory tours Street activities Public Relations Personal Selling Direct Marketing • Print and broadcast ads • Packaging (outer) • Packaging inserts • Motion Pictures • Brochures and booklets • Posters and leaflets • Directories • Reprints of ads • Billboards • Display signs • Point-ofpurchase displays Press kits • Seminars • Annual Reports • Press Conference s • Lobbying • Company magazines • Sales presentations • Sales meetings • Incentive programs • Samples • Fairs and trade shows Catalogs Mailings Telemarketing Electronic shopping • TV Shopping • IVR Marketing • • • • Elements in the Communication Process Encoding Message Media Decoding SENDER Noise RECEIVE R Feedback Response Consumer Response Hierarchy Models Models Stages AIDA Model Hierarchy-ofEffects Model Awareness InnovationAdoption Model Communications Model Exposure Cognitive stage Attention Knowledge Awareness Reception Cognitive response Interest Liking Preference Desire Conviction Evaluation Interest Attitude Affective stage Intention Behaviour stage

Trial Action Purchase Adoption Behaviour Steps in Developing Effective Communication Identify target audience 1 8 Manage integrated marketing communicatio n Measure results Determining objectives 2 7 3 Design communicatio n Decide on media mix 6 Select channels 4 Establish budget 5 01::: Identify the Target Audience: The process must start with a clear target audience in mind: potential buyers of the company’s products, current users, deciders, or influencers; individuals, groups, particular individuals, or the general public The target audience is a critical influence on the communicator’s decisions on what to say, how to say it, when to say it and to whom to say it 2::: Determine the Communications Objectives: 4 possible objectives have been stated as follows for communication: Category Need: Establish the need for a new category Brand Awareness: Ability to recognize and recall the brand Brand Attitude: Evaluation of the way consumers perceive the brand Brand Purchase Intention: A need to move the consumer to buy Most effective communications often can achieve multiple objectives 03::: Design the Communications: MESSAGE STRATEGY: In determining the message strategy, management searches for appeals, themes, or ideas that will tie into the brand positioning and help establish points-of-parity or points-ofdifference CREATIVE STRATEGY: Communications effectiveness depends on how a message is being expressed as well as the content of the message itself.

Creative strategies are broadly classified as involving either informational or transformational appeals MESSAGE SOURCE: Messages delivered by attractive or popular sources can potentially achieve higher attention and recall, which is why advertisers often use celebrities as spokespeople 04::: Select the Communications Channels: Selecting efficient channels to carry the message becomes more difficult as channels of communication become more fragmented and cluttered Personal Communications Channels: Personal channels of communication involve two or more persons communicating directly face-to-face, person-to-audience, over the telephone, or through e-mail Non-Personal Communications Channels : This is a One-to-many communication and not face-to-face.

It includes the following: – Media – Sales Promotions – Events and experiences – Public Relations 05::: Establish the Total Marketing Communications Budget: The different methods or techniques are: • • • • The Affordable Method Percentage of Sales Method Competitive Parity Method Objective and Task Method 06::: Deciding on the Marketing Communications Mix: Each communication has its own unique characteristics and costs too: Advertising: Advertising has the following qualities: • Pervasiveness • Amplified expressiveness • Impersonality Sales Promotion: It possesses the 3 following distinctive benefits: • Communication • Incentive • Invitation Public relations and publicity: Its appeal is based on 3 distinct qualities: • High credibility • • Ability to catch buyers off guard Dramatization

Each communication has its own unique characteristics and costs too: Events and Experiences: 3 distinctive characteristics: • Relevant • Involving • Implicit Direct marketing: 3 distinctive characteristics: • Customized • Up-to-date • Interactive Personal selling: 3 distinctive characteristics: • Personal interaction • Cultivation • Response 07::: Measure the Communication Results: Senior management must know the outcomes and the revenues from communication investments Factors such as Reach, Frequency, Recall and recognition scores, Persuasion changes, cost-per-thousand calculations are some of the ways that we monitor and understand the investments pay-off A formal measurement of each of the above and more is done to establish the impact of the communication 08::: Managing the Integrated Marketing Communications Process: Integrated marketing communications is a concept of marketing communications planning that recognizes the added value of a comprehensive plan A plan like this must evaluate the strategic roles of a variety of communications disciplines The widest range of communications tools, messages, and audience makes it imperative that companies move towards integrated marketing communications IMC advocates looking at the whole process instead of focusing on individual parts only The IMC Plan IMC for Small Businesses and Entreprene Internet Marketing Integration tools

Evaluating an Integrated Marketing Program Trade Promotions Consumer Promotions Personal Selling, Database Marketing, Public Relations and Sponsorship Programs Promotional tools Advertising Management Advertising Design: Theoretical Frameworks and Types of Advertising Design: Message Strategies and Executional Advertising tools Advertising Media Selection Corporate Image and Brand Buyer Behavior Promotions Opportunity Foundation The IMC Planning Model Review of Marketing Plan Analysis of Promotional Program Situation Analysis of Communications Process Budget Determination Develop Integrated Marketing Communications Program Integrate and Implement Marketing Communications Strategies

Monitor, Evaluate, and Control the IMC Program Review of Marketing Plan Examine overall marketing plan and objectives Role of advertising and promotions Competitive analysis Access environmental influences Analysis of Promotional Program Situation Internal analysis External analysis Promotional department organization Consumer behavior analysis Firm’s ability to implement Market segmentation and target marketing promotional program Market positioning Agency evaluation and selection Review of previous program results Analysis of Communications Process Analyze receiver’s response processes Analyze source, message, channel factors Establish communications goals and objectives

Budget Determination Set tentative marketing communications budget Allocate tentative budget Develop Integrated Marketing Communications Program Advertising Sales Promotion Set advertising objectives Set promotion objectives Determine advertising budget Determine sales promotion budget Develop advertising message Determine sales promotions tools and Develop advertising media strategy develop messages Develop sales promotion media strategy Direct Marketing Public relations/publicity Set direct-marketing objectives Set PR/publicity objectives Determine direct-marketing budget Determine PR/publicity budget Determine PR/publicity message Determine direct-marketing message Develop direct-marketing media strategy Develop PR/publicity media strategy Interactive/Internet marketing Set direct-marketing objectives Determine direct-marketing budget Determine direct-marketing message Develop direct-marketing media strategy Personal selling Set PR/publicity objectives Determine PR/publicity budget Determine PR/publicity message Develop PR/publicity media strategy Integrate and Implement Marketing Communications Strategies Integrate promotional-mix strategies Create and produce ads Purchase media time, space, etc Design and implement direct-marketing programs Design and distribute sales promotion materials Design and implement public relations/publicity programs Design and implement interactive/Internet marketing programs Monitor, Evaluate, and Control the IMC Program Evaluate promotional program results/effectiveness Take measures to control and adjust promotional strategies

Brand Management Concepts in Branding BRAND Evolution of the Concept Brandr = “to burn” -An Old Norse word Brands were and still are means by which the owners of livestock mark their animals to identify them A Brand is a name, term, sign, symbol, logo or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition -The American Marketing Association (AMA) The above different components of a brand that identify and differentiate it can be called brand elements Brand V/s Product A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want 5 levels to a Product: CORE benefit level GENERIC product level It is the fundamental need or want that consumers satisfy by consuming the product or service It is a basic version of the product containing only those attributes or characteristics absolutely necessary for its functioning but with no distinguishing features…. no-frills stripped down version EXPECTED product It is a set of attributes or characteristics that buyers normally level expect and agree to when they purchase a product AUGMENTED product level This includes additional product attributes, benefits, or related services that distinguish the product from its competitors POTENTIAL product This includes all of the augmentations and transformations that a level product might ultimately undergo in the future A brand is a product with added dimensions that differentiate it in some way from other products designed to satisfy the same need. These differences may be symbolic, emotional and intangible, related to what the brand represents

Brand Roles A Brand plays several roles some of which are below: To Consumers: Identifying the source from where the product comes Gives responsibility to the product maker Reduces risk Reduces time for market search for the product Creates a bond with the maker of the product Stand for several things Signifies quality To Manufacturers: Identification for easy handling Legal protection Signal of quality level to satisfied customers Endows unique associations Creates competitive advantage Source of financial returns A Brand reduces several Risks for the Consumer: Functional risk Physical risk Financial risk Social Risk Psychological risk Time risk

Tellis and Golder’s factors for enduring brand leadership: They identified 5 factors as the keys to enduring brand leadership: Vision of the Mass Market A clear vision and eye for market tastes that are more likely to build a broad based sustainable customer base Managerial Persistence Backing is required on a continuous basis as breakthroughs in market leadership come after long periods of time Financial Commitment Demands for research, development of the market and for communication investments need financial commitment Relentless Innovation Changes in consumer taste require constant innovation Asset Leverage New category leadership emanates if related category leadership exists Challenges to Brand builders Brand builders encounter several challenges in the brand building process: Savvy, demanding and well informed customers Complex Brand families and portfolios Maturing markets Increasing competition Differentiation challenges

Brand loyalty shrinkage Private label growth Trade Power has increased tremendously Media fragmentation New media and communication options High launch or introduction costs Short term orientation on all quarters Increasing attrition of teams The Strategic Brand Management Process Identify and establish Brand positioning and values Mental Maps Competitive frame of reference Points of parity and points of difference Core brand values Brand Mantra Plan and implement Brand Marketing Programs Mixing and matching of Brand elements Integrating brand marketing activities Leverage of secondary associations Measure and interpret Brand Performance Brand Value chain Brand audits Brand tracking Brand equity management system Grow and sustain Brand equity Brand product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization

Consumer-Based Brand Equity CBBE Model: The power of a brand lies in what customers have learned, felt, seen, and heard about the brand as a result of their experiences over time We need to link the right desired thoughts, feelings, images, beliefs, perceptions, opinions and so on with the brand CBBE: The differential effect that the brand has on consumer response to the marketing of that brand 1) The ‘differential effect’ 2) Brand knowledge and 3) Consumer response to marketing The 4 Steps: 1. Ensure IDENTIFICATION of the brand with the consumers and an association of the brand in consumer’s minds with a specific product class or customer need 2.

Establish the totality of BRAND MEANING in the minds of customers by strategically linking a host of tangible and intangible brand associations with certain properties 3. Elicit the proper CUSTOMER RESPONSES to the brand identification and meaning 4. Convert brand response to create an intense, active loyalty RELATIONSHIP between customers The fundamental questions implicitly asked by consumers: 1. 2. 3. 4. Brand Identity: Who are you? Brand Meaning: What are you? Brand Responses: What do I feel about you? Brand Relationships: What kind of association and how much of a connection would I like to have with you? Brand Salience – Brand Awareness: BRAND SALIENCE refers to the awareness of the brand.

How often and easily the brand is evoked under various situations and circumstances To what extent is the brand top-of-the mind and easily recalled or recognized BRAND AWARENESS refers to the customers ability to recall and recognize the brand, as reflected by their ability to identify the brand under different conditions How well do the Brand elements serve the function of identifying the product? E. g. : McDonalds, GE, IBM, HUTCH, WIPRO Brand Awareness: Breadth & Depth Brand awareness is characterized by breadth and depth The DEPTH of awareness concerns the likelihood that a brand element will come to mind and the ease with which it does so E. g. brand that can be easily recalled has a deeper level of awareness than one that can only be recognized The BREADTH of awareness concerns the range of purchase and usage situations in which the brand element comes to mind Brand Performance Brand Performance relates to the way in which the product or service attempts to meet customers’ more functional needs 5 attributes and benefits for Brand Performance: • • • • • Brand Imagery Brand Imagery deals with the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers’ psychological or social needs Imagery thus refers to Intangible aspects of the brand 4 categories of Intangibles linked or highlighted to the Brand are: 1. User Profiles 2. Purchase and usage situations 3. Personality and Values 4.

History, heritage, and experiences Brand Judgements Brand Judgements focus on customers’ personal opinions and evaluations with regards to the Brand. 4 important and relevant Brand Judgements: • • • • Brand Feelings 6 important types of Brand building feelings: 1. 2. 3. 4. 5. 6. Warmth Excitement Fun Security Social approval Self respect Brand Quality Brand Credibility Brand Consideration & Brand Superiority Primary ingredients and supplementary benefits Product reliability, durability and serviceability Service effectiveness, efficiency, and empathy Style and design Price Brand Resonance Brand Resonance: The feeling of being In-sync with a Brand 4 categories of Brand Resonance: • Behavioral loyalty • • • Attitudinal attachment Sense of community Active engagement

Brand Equity – David Aaker’s Version Brand Equity includes 5 Categories: Brand Loyalty This is the strongest measure of a Brands Value is its Brand Loyalty. The strongest form of loyalty is attachment. This level of loyalty insulates a brand from competitive pressures such as advertising and price promotion and leads to higher profits and margins Brand Awareness In its simplest form brand equity brings familiarity to a customer. A familiar brand gives a customer a feeling of confidence, which makes the brand be considered and chosen Perceived Quality A known brand conveys an aura of quality. A quality association can be of a general halo type or can also be an attribute or category specific.

A brand often has strong price associations that influence quality perceptions Brand associations Subjective and emotional associations are also an important part of brand value Other Brand Assets Assets such as patents and trademarks, are valuable but are tied to the physical product more than the brand BRAND EQUITY Brand Loyalty Reduced Marketing Costs Trade leverage Attracting new Customers Time to respond to competitive threats Anchor to which other associations can be attached Familiarity-liking Signal of substance/ Commitment Brand to be considered Reason-to-buy Differentiate/position Price Channel member interest Extensions Help process/ retrieve Information Reason-to-buy Create positive attitude/ Feelings Extensions Provides value to the customer by Enhancing customer’s: -Interpretation/ Processing of Information -Confidence in the purchase decision -Use satisfaction

Brand Awareness Brand Equity Perceived quality Provides value to the firm by Enhancing: -Efficiency and Effectiveness of Marketing programs -Brand loyalty -Price/margins -Brand extensions -Trade leverage -Competitive advantage Brand Associations Other Proprietary Brand Assets Competitive advantage Building Strong Brands Aaker’s 10 guidelines to Building Strong Brands: 1. Brand Identity: Build a strong identity, a strong personality. It can be modified for different segments 2. Value Proposition: Each brand should have a unique value proposition 3. Brand Position: Required to provide a clear guidance to those implementing a communications program 4.

Execution: The communications program needs to implement the identity and position, and it should be durable as well 5. Consistency over time: Consistent identity, and position over time. Resist from change 6. Brand System: The portfolio should be consistent and synergistic 7. Brand Leverage: Extend brands if the brand identity will be both used and reinforced 8. Tracking: Tracking is required of awareness, perceived quality, brand loyalty, and brand associations 9. Brand Responsibility: Someone should have overall charge of the brand for strategy and execution 10. Invest: Continual investment required despite some periods of not meeting financial objectives BRAND IDENTITY – David Aaker Brand identity Brand as product Brand as organization Brand as person

Brand as symbol • • • • • • Product scope Product attributes Quality/Value Users Uses Country of origin • Organization attributes (e. g. innovation, genuine consumer concern, trustworthiness) Local Versus global • • Personality (energetic, rugged) Brand customer relationships (friend, advisor) • • Visual Imagery and metaphors Brand heritage • DIMENSIONS OF BRAND IDENTITY Brand Identity AN UNDERSTANDING OF Brand Identity An “Identity Card” is a personal, non-transferable document which tells in a few words who we are, what our name is and what distinguishable features we have that can be instantly recognized A second interpretation is: Brand Identity is the ommon element sending a single message amid the wide variety of its products, actions and slogans (As the brand expands and diversifies, customers are inclined to feel that they are, in fact, dealing with several different brands rather than a single one If products and communication go their separate ways then consumers would possibly perceive these different routes not converging towards common aim and the brand Several people can have an identical point of view which we would call ‘identity of opinion’ With Identity cards as civil status or physical appearance change, identity cards get updated, but the fingerprint of their holders always remains the same We speak now of ‘cultural identity’ which is the identity of social groups and hence applies to Brands too. Individual products/brands within this group have inherent differences but also their commonality to a specific cultural entity

Brand Identity is a recent construct and to understand this marketers need to understand the organizational identity of companies Hence Corporate Identity determines your coherent and unique being, with your own history and place of your own and different from others Identity means being your true self, driven by a personal goal that is both different from others and resistant to change AN UNDERSTANDING OF Brand Identity……. continued Brand Identity is clear when we once understand the following questions: • • • • • • What is the brand’s particular vision and aim? What makes the brand different? What need is this brand fulfilling? What is its permanent nature? What are its value or values? What are the signs which make it recognizable?

These questions constitute what is called the Brand Charter If firms create an official document answering these questions, it not only helps manage the brand in the short and medium term, but also helps better address future communication and also extension issues Why IDENTITY ………… why not IMAGE instead? Brand Image is on the receiver’s side. Image is about perception. How do certain group’s perceive a product, a brand, a company, a person or even a country. IMAGE is about decoding all signals emanating from the products, services and communication covered by the brand Brand Identity is on the sender’s side. The purpose is to specify the brand’s meaning, aim and self-image. Image is both the result and interpretation thereof Identity recedes Image always in terms of brand management Extraneous factors = ‘noise’ which speak in the brand’s name and thus product meaning, however disconnected they may be from it These factors are: • Companies chose to mimic as they sometimes have no idea of what their own brand identity is • Secondly some companies believe that they must build an appealing image that will be favorably perceived by all. The brand gets caught in the pleaseall game • The third extraneous factor is that of fantasized identity…. i. e. the brand as one would like to see it, not as it actually is. • What is its permanent nature? IDENTITY & IMAGE Sender Media Receiver

Brand Identity Signals transmitted Other Sources of Inspiration Brand Image • Mimicry • Opportunism • Idealism The 6 facets of Brand Identity Competition and noise 1. PHYSIQUE The physique are the physical qualities. It is made of a combination of either salient objective features (which come to the mind immediately) or then emerging ones. Physique Is both the brand’s backbone and its tangible added value. PERSONALITY A brand has a personality of its own. Through communication, the brand gradually builds its character. The way it speaks of its products or services shows what kind of person it would be if it were human Personality has been the main focus of advertising since decades.

An easier way to build personality is also to give the brand a spokesperson or a figurehead, whether real or symbolic 3. CULTURE The product derives itself from the culture the brand represents and creates for itself. Culture means the set of values feeding the brand’s inspiration. The cultural facet refers to the basic principles governing the brand in its outward signs (products and communication). The essential aspect is the core of the brand. The 6 facets of Brand Identity 4. RELATIONSHIP A brand is a relationship. Brands are often at the crux of transactions and exchanges between people. This is more visible in service brands or the service sector 5. REFLECTION Reflection refers to the customer as she or he is.

It provides a model (person) with which to identify the brand. For examples when asked for their views on certain car brands: people immediately answer in terms of the brand’s perceived client type: a brand for young people! For older folk, for show-offs, etc. Brands must control their reflection as sometimes this could be detrimental 6. SELF-IMAGE 2. Self image is the target’s own internal mirror. Self image is the inner relationship with oneself that we develop, through our attitude towards certain brands. It is what the consumer thinks of himself Kapferer’s – BRAND IDENTITY PRISM PICTURE OF SENDER Physique Personalit y E X T E R N A LI Z A Relationship

Culture IN T E R N A LI Z A TI Reflection Self-image PICTURE OF RECIPIENT BRAND IDENTITY – David Aaker Brand identity Brand as product Brand as organization Brand as person Brand as symbol • • • • • • Product scope Product attributes Quality/Value Users Uses Country of origin • Organization attributes (e. g. innovation, genuine consumer concern, trustworthiness) Local Versus global • • Personality (energetic, rugged) Brand customer relationships (friend, advisor) • • Visual Imagery and metaphors Brand heritage • DIMENSIONS OF BRAND IDENTITY How Brand Communication Works 4. Noise Physical and Psychological •Source (Encoding) Company Brand Agency 2.

Message Brand Messages Ads, PR Releases, Coupons, Signage Customer Service 3. Communication Chanel Media, TV, Radio, Newspapers, Magazines, Internet, 5. Receiver (Decoding) Customer, Prospects Other Stakeholders 6. Feedback Interactivity • • • Immediate Response Delayed Response No Response Customer Initiated Brand Communication Customer Initiated IMC Message Busy signal, company delays, incomplete info (Noise) Customer or other stakeholder (Source) Question, Complaint, Compliment (Message) 800 number, letter, E-mail, salesperson, Customer service, Internet Company (Receiver) 4 R’s (Responsiveness, recourse, recognition, respect) (Feedback) Sales Promotion

Types of Sales Promotion activities CONSUMER ORIENTED PROMOTIONS • Sampling • Coupons • Premiums • Contests/sweepstakes • Refunds/ rebates • Bonus packs • Price-offs • Frequency Programs • Event Marketing TRADE-ORIENTED PROMOTIONS • Contest and dealer incentives • Trade allowances • Point-of-purchase displays • Training programs • Trade shows • Cooperative advertising CONSUMER ORIENTED PROMOTIONS • Sampling Door-to-door sampling when it is important to control where the sample has to be delivered Sampling through mail can be targeted to specific market areas In-store sampling for sample direct to shopper control On-package sampling to ensure it reaches the consumer.

However reaches only consumers who buy Event based sampling: very popular Low price market strategies today force manufacturers to go away from sampling as sampling is expensive • Coupons First done in 1895 when C. W. Post Co started using penny-off coupons to sell its new Grape-Nuts cereal Advantages: Price reduction only to consumers who are price sensitive Second to sampling to generate trial Coupons encourage repurchase after first trial Coupons encourage non-users to try and encourage repeat purchase amongst users • Coupons Disadvantages: Difficult to estimate how many consumers will use the coupon and when Response to a coupon is rarely immediate Difficult to restrict users of the brand from couponing Low redemption rates and high costs

FSI = Free standing inserts Newspapers and magazines used for printed coupons or now for FSI Bounce-back coupon: Placed inside a package Cross-ruff coupon: Redeemable on purchase of a cross (different) product Instant coupon: Attached to pack and can be torn off and used right away In-store couponing: Given in the retail environment Premiums A premium is an offer of an item or merchandise or service either free or at a low price that is an extra incentive for purchasers Free Premiums: Small gifts or merchandise included in the product or pack High impulse values and can provide an extra incentive to buy the product Cost is key and sometimes extra/special packaging is required Mail-in premium: consumer required to mail in the proof of purchase Self liquidating premiums: Requires the consumer to pay some or all of the cost of the premium plus handling and mailing costs. Generally give a low redemption rate • Contests/sweepstakes Contest: Consumers compete for prizes or money on the basis of skill or ability Sweepstake: Winners win by pure chance.

No proof of purchase ever required Sweepstakes are more popular than contests as no skill is require for participation A drawback is that there are professionals or hobbyists who participate or send in multi entries • Refunds/rebates Offers by the manufacturer to return a portion of the product purchase price after the consumer supplies some proof of purchase Consumers responsive to this method as the size of savings increases • Refund offers encourage repeat purchase, encourage brand switching and are very popular for consumer durables. Also for categories like cameras, sporting goods, appliances, television sets, computers and cars • Bonus packs These packs offer an extra amount of the product at the regular price by providing larger containers or extra units.

They result in a lower cost per unit for the consumer and provide extra value without having to get involved with complicated coupons or refund offers The additional value is obvious to the consumer and can have a strong impact on the purchase decision at the time of purchase • Price-offs Easiest, simplest, reduces the price of the product by discounting the price by some % Needs to be marked or printed on the pack The discount always reaches the consumer and cannot be misused by trade These cause issues of different price stocks at Retail level • Frequency programs The fastest growing area of sales promotions: Also referred to as continuity or loyalty programs Frequency programs allow the manufacturer to maintain databases and market to consumers They require careful management and implementation • Event Marketing Event Marketing is a type of promotion where a company or brand is linked to an event or where a themed activity is developed for the purpose of creating experiences for consumers and promoting a product or service (An Event Sponsorship is an integrated marketing communications activity where a company develops actual sponsorship relations with a particular event and provides financial support in return for the right to display a brand name, logo, or advertising message and can be identified as a supporter of the event TRADE ORIENTED PROMOTIONS Contests and dealer incentives Special incentives programs to timulate greater selling effort and support from reseller management or sales personnel. The programs or contests can be directed toward managers who work for a wholesaler or distributor as well as towards store or department managers at the retail level • Trade allowances A trade allowance is a discount or deal offered to retailers or wholesalers to encourage them to stock, promote, or display the marketer’s products. Types of trade allowances offered to retailers include buying allowances, promotional or display allowances, and slotting allowances • Point-of-purchase displays These are promotional materials used to display and sell products.

These are in the form of shelf strips, banners, posters, dispensers, shelf cards, stand-up-racks and others Marketer’s also use the concept to use shelf space more efficiently through a Planogram • Sales Training programs This sort of a program acts as a motivator and can be used to reward the best performing personnel or then to simply upgrade the skills of employees. Product and sales training are provided and in several times at tourist holiday locations. Further in such programs the concept of reward for past performance and the creation of coveted performance Clubs are also sometimes done to create further aura around such a program • The Value of training is even more important where the ticket price is high for a product and personal selling skills come into play • Trade Shows The trade show is a forum where marketers / manufacturers display their products to current as well as prospective buyers.

Trade shows are a major opportunity to display one’s product lines and interact with customers • Cooperative advertising Horizontal cooperative advertising Ingredient-sponsored cooperative advertising Vertical cooperative advertising BRAND SYSTEMS Brand Strategy – Extension Type Narrative Example Kellogg’s variants Line Extension Existing brand name, existing category, new size of flavor Brand Extension Multibrands New Brands Same Brand Name extended to Bathing Soap to Other new product categories Toiletries New brand, same category New Brand name for a new category Two or more brands getting together for synergy LUX, Hamam, Dove, Lifebuoy Tata Motors & Westside Raheja Construction & Shopper’s Stop Credit Cards, PantaloonWelingkar’s tie-up Co-brand Notes compiled by Rajeev Chawla [email protected] com


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