Marcom

 Tools  -­‐  Key  definitions  

•  Advertising:  paid  form  of  non-­‐personal  presntation/  promotion  
of  ideas,  goods  or  services  by  an  identified  sponsor.  
•  Sales  Promotion:  Short-­‐term  incentives  to  encourage  trial/  
purchase  
•  Public  Relations  &  Publicity:  Promote/  protect  Brand’s  image  
in  an  indirect  way  
•  Personal  Selling:  F2F  interaction  with  one/more  prospective  
buyers.  
•  Direct  Marketing:  Use  of  interactive  media  to  communicate  
directly  or  solicit  direct  response    from  specific  customers  and  
prospects  

Various  Definitions  
Author/  Year   Key  Concepts  
American  Association  of   •  Coordination  and  consistency  of  messages  and  communications  
Advertising  Agencies  (4As)   channels  (‘one  sight’,  ‘one  voice’)  
(1989)   •  Use  of  variety  of  communications  disciplines  to  work  in  synergy  
based  on  a  comprehensive  plan  

IMC   Don  Schultz  (1991)  

• 
• 
IMC  as  a  concept  
Behavioral  Responses  
•  Nurture  relationships  and  customer  loyalty  
Tom  Duncan  (1994)   •  Profitable  Relationships  
•  Expanded  audience  scope  from  customers  to  other  stakeholders  

Concept   Nowak  and  Phelps  (1994)   •  Reinforced  notions  of  consistency,  coordination  and  behvioural  
response  
Schultz  &  Schultz  (1998)   •  Strategic  Business  Process  
•  Expanded  notion  of  Brand  Communication  
•  Measurability  
•  Specified  more  explicitly  in  Multiple  Markets  –  inclusive  of  
internal  and  external  markets  

Integrated  Marketing  
3  Pillars  of  IMC  
Communications  
• Various  Perspectives  and  Versions   • Audience  Integration  
• 360  degree  Branding   • Multiple  markets  
• Whole  Egg   • Channel  Integration  
• Holistic  Communications   • Multiple  Channels  
• Integrated  Communications   • Result  Driven  
• IMC   • Financial  Measurement  (ROCI)  

• Strategic,  Consistent,  Coordinated,  

Measurable  

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 SMCR  Communication  Model  

MESSAGE  
Communication  Process   SOURCE  
Encoding   Decoding  
RECEIVER  

CHANNEL  

Noise  

Feedback   Response  

Shannon  &  Weaver,  1949  

Encoding  in  WA  era   Encoding  in  WA  era  

Encoding  in  WA  era   SMCR  

•  Source/  encoding  
•  Source  –  individual  (salesperson/  hired  spokesperson,  company/  organization)  
•  Receiver’s  perception  of  the  source  influence  how  the  communication  is  
received  
•  Source  selects  words,  symbols,  pictures,  etc.  to  represent  the  message  that  will  
be  delivered.  This  is  encoding.  
•  Sender’s  goal  is  to  encode  the  message  in  such  a  way  that  it  is  understood  by  
the  audience.  
•  Message  
•  Encoding  process  leads  to  message  –  information  or  meaning  that  the  source  
hopes  to  convey  
•  Semiotics  –  science  of  how  words,  gestures,  signs,  symbols,  myths,  theories  
acquire  their  meaning.  
•  Semiotics  is  important  as  consumers  use  products  and  brands  as  their  social  
identities  and  they  acquire  meanings  
•  Semiotics:  object,  sign/  symbol,  interpretant  
•  Cultural  anthropologists,  Social  scientists  

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•  Channel  
•  Method  by  which  the  message  travel  to  the  receiver   • Communication  is  passing  on  information.  
•  Broadly  two  types:  personal  (salesperson/  social)  and  non-­‐personal  (mass  media/  
environments)   Exchange  of  ideas  or  establishing  
•  Receiver/  Decoding  
•  Generally  consumers/  audience   commonness  of  thought  between  a  sender  
• 
• 
Transforming  sender’s  message  back  into  thought/  meaning  
Effective  communication  –  common  ground.  Empathize,  resonate.   and  a  receiver.  
•  Sound  simple  but  difficult  as  the  audience  could  be  very  difficult  than  the  
encoder.     • Complex  process:  success  depends  on  the  
•  Noise  
•  Unplanned  distortion.  Extraneous  factors  that  interfere  with  the  reception  of  
the  message.  
message,  the  audience’s  interpretation  and  
•  Lack  of  common  ground   the  environment  in  which  it  is  received.  
•  Response/  feedback  
•  Receiver’s  set  of  reactions.    

Analyzing  the  receiver  

•  In  mass  communications,  marketers  do  not  have  opportunity  to  clarify  or  
• Developing  communication  program  is  far   explain  the  message  and  hence  consumer  response  process  must  be  
understood  well.  
more  than  just  choosing  the  product   •  Most  important  aspects  :  response  process  
•  Traditional  response  hierarchy  models  
feature/  attribute  to  emphasize.   •  Each  stage  of  the  response  hierarchy  is  a  dependable  variable  that  must  be  attained  and  
may  serve  as  an  objective  of  the  communication  process  
•  Potential  buyers  may  be  at  different  stages  in  the  hierarchy    
• Marketers  must  understand  how  consumers   •  Useful  for  intermediate  measures  of  communication  effectiveness  
•  Alternative  Response  hierarchy-­‐  michael  ray  
perceive  and  interpret  their  messages   •  Standard  learning  model:  learn,  feel,  do;  Dissonance/  attribution  model:  do,feel,  learn;  low-­‐
involvement  model:  learn,  do,  feel  
•  It  is  important  for  planners  to  examine  communication  situation  and  determine  which  type  
of  response  process  is  most  likely  to  occur  
•  Cognitive  processing  models  
•  Relationship  between  controllable  factors  (source/  message)  and  the  outcome  variables  
(attention,  comprehension,  liking,  intent)  
•  Types  of  cognitive  responses  evoked  by  ad,  attitude  towards  the  ad  and  the  brand  and  
purchase  intention  

Road  to  a  sale   Communication  Response  Hierarchy  

Response  Stage   AIDA  Model   HoE  model   Other  Models  

Unaware  

Cognitive  Stage   Awareness   Awareness                           Awareness   Communication  Domain  

(Thinking)   Knowledge   Awareness   Cognitive  Stage  

Knowledge  

Affective  Response   Interest   Liking   Image  Matching  

(Liking)         Liking  
      Factors  other  than  
Desire   Preference   Fact  Matching     communication  too  play  
Preference   Affective  Stage   an  important  role  
Behavioral/  Conative                                      
Stage  (Acting)                                 Conviction  
Action   Purchase   Transaction  Follow-­‐
through   Communication  is  just  
Purchase   Behavioural  Stage   one  element  of  the  
  process  

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 Alternative  Response  Hierarchies  
3  Basic  Communication  Tasks  
High  Involvement   Low  Involvement  

Create  awareness  and  basic     Learning  Model  

Learn   Low-­‐involvement  Model  
Knowledge  of  the  brand   Model:  Learn-­‐Feel-­‐Do  
Model:  Learn-­‐Do-­‐Feel  
Cognitive  
 
High   Standard     Cognitive  
Differentiation   Learning   Affective    
Model    
Develop  attitudes  and      
Feel   images  about  brands   Conative  
Conative    
Dissonance/  Attribution  Model    
Affective  
Model:  Do-­‐Feel-­‐Learn  
Low   Conative    
Differentiation      
Affective   Low  
Do   Develop  action..Purchase     Involvement  
Dissonance/  Cognitive   Hierarchy  
 
Attribution  
Model  

Variables  in  Communication  Decision  

Making  
Independent   Source     Message   Channel/   Receiver  
/Dependent   Media    
Variables  
Message  
Exposure  
IMC  
Attention  

Function  
Comprehension  

Yielding/  
Favorable  
Attitudes  

Marketing  Communications   Marketing  Communications  

Decisions   Planning  
• Marketing  Communication  Mix  Decisions     •  6M  Framework  
–  Market  
• Classification  of  marketing  communications  tools   –  Review  of  Marketing  Plan:  Positioning,  Segments,  Consumer  Behavior  
• Choice  of  Marketing  Communications  Mix   –  Review  of  Previous  Campaigns  &  Competitors  Promotions  
–  Mission  
• Organizing  Marketing  Communications   –  Analysis  of  Communication  Process  
• Choosing  &  Working  with  Communication  Agencies     –  Establish  communication  goals  and  objectives  
–  Money  
• Marketing  Communications  Planning   –  Set  tentative  costs  &  Budget    

Decisions     –  Message   For one or more of the tools which are part of the
integrated program: Advertising, Sales Promotion, Direct
–  Media   Marketing, Internet Marketing, PR, Personal Selling
• Develop  and  design  elements  of  campaign  plan  using   –  Measure  
various  tools   –  Evaluate  results/  effectiveness  
–  Measures  to  control  and  adjust  promotional  strategies  

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 What  does  an  ad  expected  to  do?  
•  Inform  (  unaware  to  aware)  
•  Emphasize  and  help  identify  unfulfilled  need  
•  Describe  attributes,  benefits  and  uses  of  the  product  
Advertising   •  Persuade  (  awareness  to  intent)  
•  Create  feelings  of  interest,  familiarity  &  liking  
•  Create/  strengthen  positive  associations/  attitudes  
•  Weaken  negative  associations  
•  Sale/  Retain  loyal  customers  (Intention  to  
Purchase)  
•  Remind  

The  Advertising  Campaign  Stages  

Strategy    
  Familiarize  
Development  

  Hypothesize  

Advertising  Campaign  Planning   Campaign  

Review  
Evaluation  
The  Planning  
Cycle  
Evaluate   Synthesize  

Inspire   Creative  Brief  

Optimize  

Advertising  
Recommendation  

Research  inputs  to  the  advertising  planning  cycle  

Advertising  Research  Domain  
Familiarize  
1.  Strategy  Development  Research:  for  
directions  on  “what  needs  to  be  said”  
Hypothesize  
Review   2.  Creative  Development  Research:  for  
Tracking  
Research   Strategy    
directions  on  “how  it  will  be  said”  
Development  
Research  
Message   3.  Message  evaluation  research:  for  
Evaluation   Synthesize  
Evaluate  
Research   understanding  “are  we  saying  what  we  want  
Creative    
to  say”  
Development  
Research  
4.  Tracking  Research:  for  understanding  
Optimize   Inspire  
effectiveness  of  our  campaign  in  real  life  

5
 Strategy  Development  Research  
• Determines  –  What  I  want  to  say  to  the  
consumer?  
Strategy  Development  Research   • Aims  to  answer  questions  such  as  
• Where  we  are  
• Why  are  we  here  
• Where  could  we  be  

Strategy  Development  Research  –  

Buying  System  
Information  Areas  
•  Purchase Mode •  Needs & Motives
•  Brand  Familiarity  &  Favourability   •  Frequent vs. Infrequent •  Rational/ emotional/
Sensual
•  Understanding  of  brand,  its  history  and  its  position  in  the   •  Habit/ routine
•  Problem to solve/
market   •  Experiment/ try out/ novelty Prevention of problem
seeking
•  Consumer’s  perception  about  our  brand  vis-­‐à-­‐vis  competition   •  Search/ seek information/
•  Opportunity
•  Reward/ Gift
•  Needs  &  Motives:     advice
•  Bargain hunt •  Self-expression/ Display
•  Ritual
•  What  drives  the  category  in  the  market   •  Impulse/ on-the-spot
•  Self-indulgence
•  Choices
•  Users:   •  High vs. Low involvement •  Influences
•  Family
•  Profile  of  the  users   •  Current brand set/ Other
product types •  Friends/ neighbors/
•  Buying  roles  and  influences   •  Brand Loyalty colleagues
•  Shops/ Retailers
•  Purchase  and  Consumption  Process   •  Fashion
•  Level  of  his  involvement  in  the  purchase   •  Advertising
•  Editorial
•  Cycle  and  pattern  of  his  purchase  

Strategy  Development  Research  -­‐   Strategy  Development  Research  -­‐  

Sources  of  Information   Deliverables  
•  Company  marketing  intelligence  
•  Previous  researches  with  company  and  agency   •  Definition  of  clear  and  measurable  communication  
•  Syndicated  market  and  consumer  information   objectives  
•  Trade  and  association  studies   •  Pre-­‐emption  of  desired  consumer  response  of  the  
•  Census  data   communication  
•  Primary  research  data  –  qualitative  and  
quantitative  

6
 WHO  ORS  Program  Objectives  2004/  
Advertising  Objectives  
05  
•  Sales  oriented  objectives     •  Increase  awareness  of  WHO-­‐ORS  from  78%  in  2003  
•  Communication  Effects  objective   to  85%  
•  Cognitive  response  (Awareness,  Knowledge)   •  Increase  knowledge  of  correct  preparation  
•  Affective  Response  (Liking,  Preference,  Desire)   message  campaign  from  41%  in  2003  to  55%.  
•  Behavioral  Response  (Inquiry,  Purchase  Action)   •  Increase  the  use  of  WHO-­‐ORS  during  the  last  
•  DAGMAR  (Defined  Advertising  Goals  for  Measured  Advertising   episode  of  diarrhea  to  60%  from  the  existing  base  
Results)  -­‐  Colley  
–  Awareness,  Comprehension,  conviction/  purchase  intention,  Action  
year  figure  of  50%.  
•  Increase  of  ORS  sales  in  urban  areas  of  the  target  
states  by  8%  (base  year  2003)  
•  Increase  of  WHO  ORS  sales  in  urban  areas  of  the  
target  states  by  14%  (base  year  2003)  

Advertising  Effectiveness  Measures    

Consumer Representative Statement Measures of
Response Stage effectiveness
Exposure ‘I know brand is advertisied’ Circulation, Reach
Awareness ‘I know that the product or brand Recall
exists’ Unaided recall
Aided recall
Recognition
Interest ‘the Product or Brand is relevant to Advertising Recall
me’ Attitudes
Brand Image
Inquiries
Desire ‘I would like to buy the product/ Preferences
brand’ Intention to buy
Action ‘I have bought the product/ brand Trial
Sales
Market Share
Sales/ Share growth