Integrated Marketing Communications

Kirti Dutta Professor (Marketing) Ansal University, Gurugram

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© Oxford University Press. All rights reserved. SOCIOCULTURAL ENVIRONMENTSociocultural75 existing norms laid down by the society. Their behaviour is ‘influenced by the social groups they live in and interact with everyday’4 (Shah and D’Souza 2010). Thus, today a number of Environmentschool kids in urban areas are present on social networking sites due to peer pressure and the need to belong to a particular group. Their friends and classmates are part of a particular network, so they also need to follow suit. Before making a purchase, most of us ponder ‘What will my friends think when they seeLEARNING6 me wearing/consumingINTEGRATED MARKETING COMMUNICATIONSthis product/brand? Will they think I am cool/ fashionable/have a OBJECTIVESgood taste, etc. or will they think the opposite?’ For product categories, such as Features of garments, fashion, accessories,Legal cosmetics, factors andThe mobile law of phones, the land everyone where the needs company social wants acceptance to operate is as important as the of the product/brand theylaw purchase. of the land Social from acceptance where the is companytherefore wantsan important to operate. variable These in legalthe factors bind the working consumer decision-makingAfter goingof process, the throughcompany although this and itschapter, includedegree mightrules andvary regulationsfrom individual related to individual.to right from setting up business to ‘The social environmentyou will disseminationconsists be able of to population understandof profits changes,and paying demographic of taxes. Here, trends the focus(including is on theage laws that govern marketing profiles and gender balance),• thecommunication. influencelifestyle changes, of socialFor culturalexample, considerations’ while advertising, (Masterson many andcountries Pickton do not allow marketers to 2003). Let us now take a lookenvironmentadvertise at all theseto children; on aspects the comparative in the case of advertising India. is clearly authorized in some countries (such as Spain, UK, Ireland, and Portugal) but banned in others (such as India, Germany, and Belgium) Population changes behaviour of consumers OPENING CASE (Cateor, Graham, and Salwan 2008). India constitutes 17.5%• of thethe globaleffect populationof cultural, (as per Census 2011) and is second only to China, which constitutes 19.4% of the world population (as per Census 2010). However,Making compared Kaun to Banega Crorepati Relevant subcultural,Brand Name and Decision social China’s decadalAQ5 (for the period 2001–2011) population growth of 5.43%, India’s decadal growth was much higher and stoodclass at environment 17.64%. The on decadal the growth rateThe andyear population 2012 saw ofthe some sixth of season of Kaun Banega Crorepati (KBC) being Opening ExhibitOnce The all discussion these factors are taken into consideration, it is important for the company to decide the South-Asian countries arebehaviourbrand provided name in of Tableit consumers wants 4.1. to enter the hostaired market on with.Sony IfEntertainment it plans to use Televisionthe existing (SET). brand Of name, the earlier fi ve seasons, the The populationin each chapterof India• thenthe in begins 2012 impactthe brand was with of 1,220.2 positioningsociocultural an million it (Indiawants toOnline ficreate rst 2012),three in the outseasons host of countrywhich were 69% can aired isbe done on Staras discussed Plus channel, in this whereas the last two rural (PTI Opening2012a). As perExhibit theenvironmentsection Government based (Schuiling on on of the marketingIndia’sand Kapferer Census 2004; of 2011,were Kapferer the airedpopulation 2005; on SETKapferer as on channel—all 1 March 2009; and of Dutta which 2012). had been highly successful. KBC 2011 was 1,210.2 million, and that of 2001 was 1,028.7 million, that is, there was an addition of communicationFrom Fig. 23.3 we can see that a localwas brand the secondis a brand highest where grosser the product, after thepositioning, Indian Premier and League (IPL) for SET moremajor than topic 181 million dealt in with the decade in the 2001–2011. chapter. There are 623.7 million males and 586.5 million brand name are modified to suit the channel,local needs. with A researchglobal brand showing on the that other it hadhand an has ‘average all the rating of 4.8’. Research females in India (Census 2011).three aspectsThis indicates standardized that India with is a notfew only adaptations one of the in details.most populous As we move from a local brand countries of the world, buttowards also has a a globalpopulation brand, that we is can growing have aatdone combination a fast in rate. 2009 It, of showedtherefore, the strategies that forms ‘… as follows.KBC brand was gasping for breath and it was an attractive destination for marketers (see Exhibit 4.1, Rising Middleimperative Class Population to revive inthe India). property’. The universal connect and relevance was Positioning modifi cation In this strategy, the brand name and the product are the same Exhibit 4.1 highlights the change in population and also howlimited the middle as it classwas populationviewed as is a show for the intellectuals. It had to increase on the rise. The middle classbut thenot positioningonly has the is advantagemodified toof suitnumbers local onneeds. their For side example, but also Levis the has the same brand name and products globally but modifies thethe positioning social relevance in different and countries. it chose the tagline Sirf gyaan hi aapko aapka haq purchasing power to back it up. Thus, they form an attractive destination for marketers. Product modification Here the branddilate hainame. Four and campaigns positioning were are same, shot butaround the product ‘deep-rooted is social biases in the Changing lifestyle adapted to suit the local requirements.Indian For example, society Starbucks and creating is famous engaging for its stories coffee andout itof also it’, according to Mr Danish Consumers’ lifestyle is defined by their activities, interests, and opinions. The entry of a number retails tea in Japan to cater to the tea-lovingKhan, consumers Senior Vice there. President Henkel’s (SET). detergent The brand biases (Persil) chosen is were that of ‘gender, of multinationals along with the booming Business Process Outsourcing/Knowledge Process sold in Germany, France, and the Netherlands with separate product formulations that address Outsourcing (BPO/KPO) market in India has added to the disposablelineage, language,income of and people, honesty.’ and For example, the gender campaign talks about local preferences in each country (Frost 2005). consumers are spending more on brands. Although consumers thehave bias the whereinmoney to boys spend, are they preferred over girls, and traces the story of a girl Positioning and product modificationfrom her Brand birth nameto youth is same … howand theshe productis discriminated has been against and deprived of modified, which might now warrant thingsa different as shepositioning is seen ofas the ‘monetarily same. For example,unprofitable’. Henkel’s The campaign starts with Table 4.1 The decadaldetergent change brand in population (Persil) ofis somesold South-Asianin Germany, countries France, and the Netherlands and the product Amitabh Bachchan (the host of KBC) narrating the story and ends with him Country Populationformulations (in millions) are different Decadal change to address (in %) the Percentage local preferences. of world ‘Henkel markets the whiteness of Persil ‘helping the protagonist in their journey to a win on the hot seat’.The deep- in Germany and France,(2001–2011) but in the Netherlands,population a green version of the brand was positioned as an environmentally friendly product‘ (Frostrooted 2005). biases and how the protagonist ‘overcomes the discriminations of India 1,210.2 17.64 17.5 society by making it to the hot seat is packaged engagingly with the underdog China Brand1,341.0 name modification5.43 The same brand19.4 name cannot be used everywhere due to issues in translation (as discussed) or due to winninglegal reasons in the and end’ so it (Bapnaneeds to 2012).This be modified.UNDERSTANDING creates The product aTHE feel ADVERTISING good factor, AND PROMOTION as Indians WORLD 9 Indonesia 237.6 15.05 3.4 Tables and Figures and positioning can be the same. For likeexample, to see Unilever’s happy endings. brand of margarine retails under the Pakistan 184.8 24.78 2.7 The text in each chapter is Bangladesh 164.4 16.76 Question:2.4 Why is it important for a successful brand like KBC to connect with Local Exhibit 5.4 BPOs Manage Social MediaGlobal also interspersed with numerous brand the customers at a social level?brand tables and simple illustrations. Customers historically have decided the fate of the companies monitor social media sites and generate sales leads and combat (Brand name, Brand Brand Brand Positioning Product Positioning (Brand name, through their consumption patterns and they cannot be dictated product criticism—is becoming increasingly important and, product, name and name and name and product modified modified product, positioning upon. Thus, it is up to the companies to adapt to the customers’ unlike voice contact centers, India is likely to be dominant in this positioning product positioning modified modified standardized) needs and the manner in which they want to be served. With the space’. Thus, ‘Minacs offers keyword monitoring and reputation modified) modified modified consumers now present online, and that too in an active manner, management services’, and FirstSource ‘runs social media forums AQ2 it is left to the companies to catch them where they are taking. for its clients where customers can engage in discussions about Fig. 23.3 Localization to standardization The BPO firms have traditionally been the ‘voice’ contact centres products or services’. According to Smita Gaikwad, Global Head, between the company they represent and their consumers.Taking Marketing, FirstSource, ‘These offerings help you move up the this concept further, BPOs such as Aegis, FirstSource, Aditya Birla value chain. In addition, the sales cycle and adoption time is short. Minacs, etc., are proactively offering services to manage the social Where a typical contact centre contract could take 18 months, media as well for their clients which was hitherto ‘the preserve of something like this takes about six months’. internal marketing department or smaller social media advisory The new offerings can be the key to success for the Indian Oxfordfirms’. It has been Universitypredicted by global research firm Gartner that BPO Presssector which currently has a revenue of `1.1 lakh crore by the year 2015, more than 50% of the contact centers ‘will have and is targeting to achieve `2.9 lakh crore by the year 2020 social media as a mainstream channel of communication with (Mendonca 2013). customers. Multi-channel communication—where companies can

Exhibit 5.5 Advertisements Drawing Flak

Ogilvy & Mather (O&M) has been in the news for creating a series It has attracted widespread contempt for using a recent and Boxed Exhibits Each chapter of advertisements for mattress brand Kurlon which drew ‘ﬂ ak over horrendous tragedy to sell a product. its offensive content’, just a year after a similar controversy made The agency had entered the ‘Bounce Back’ series for the showcases a wealth of exhibits Bobby Pawar quit JWT as the agency’s managing partner and Kyoorius Advertising and Digital awards, but withdrew it on 14 May chief creative ofﬁ cer. O&M released a set of three illustrated 2014 on the second day of the jury session, one of the judges on that relate to the key concepts advertisements titled ‘Bounce Back’ on online advertisement the panel said. The other two advertisements in the series feature discussed in the chapter. forum Ads of the World. One of them shows Pakistani student Father of the Nation Mahatma Gandhi and Apple founder Steve activist ‘Malala Yousafzai’ who was in the news for being shot Jobs. One shows Jobs bouncing back to become a great American by Taliban and subsequently receiving the Nobel Peace Prize, entrepreneur after being booted out of the house, while the other tumbling ‘in the air after being shot on the head, lands on a Kurlon shows lawyer Gandhi being thrown out of the train and bouncing mattress and bounces back to accept the Nobel peace prize’. back to become the Father of the Nation (Dasgupta 2014).

communication or they can hire one full service agency and get all the work done through them. Hiring full service agencies was the trend in late 1990s, but now the trend has shifted towards ‘separate specialized units, offering communication services in diversified areas such © Oxford Universityas advertising, media, Press. outdoor, All experiential,rights reserved. rural, celebrity management’ (Balsara 2015). The specialized units cannot be left on their own but need to be managed to achieve an integrated mar com. These different firms therefore need to be guided about what the company wants to achieve and the kind of perception that it wants to create so that each firm works towards achieving this brand image. Managing these agencies is a daily activity and cannot be left till after the advertisement campaign is designed and executed. Agencies need to be guided at each step and checks and systems should be in place to ensure that the mar com objective is being fulfilled within the framework of the brand identity that the company has created. Monitoring IMC PROCESS 15

to the target audience and stakeholders. What is said also results Strategy development and execution should result in the in customers and stakeholders forming an opinion of the brand uniform image being created across various communication tools IMC PROCESS 15 and ultimately the brand’s image. Thus, it is important to maintain and also the message communicated over time.The management uniformity and continuity in the messages that are communicated. of IMC helps develop an understanding of how companies can The various tools should, therefore, flow from the same strategic ensure the uniformityto the intarget message audience across and stakeholders.tools and over What time. is said also results Strategy development and execution should result in the orientation of the firm as has been discussed in the IMC process. Research also helpsin customers in measuring and stakeholders the effectiveness forming and an helps opinion of the brand uniform image being created across various communication tools the BookThe IMC process starts with opportunity analysis, market analysis, companies furtherand decide ultimately the toolsthe brand’s to use image.and the Thus, messages it is important to to maintain and also the message communicated over time.The management objective setting, budget allocation, strategy formulation, execution, be communicated.uniformity and continuity in the messages that are communicated. of IMC helps develop an understanding of how companies can measurement of effectiveness, evaluation, and follow-up. The various tools should, therefore, flow from the same strategic ensure the uniformity in message across tools and over time. 6 INTEGRATED MARKETING COMMUNICATIONS orientation of the firm as has been discussed in the IMC process. Research also helps in measuring the effectiveness and helps The IMC process starts with opportunity analysis, market analysis, companies further decide the tools to use and the messages to KEY TERMS objective setting, budget allocation, strategy formulation, execution, be communicated. measurement of effectiveness, evaluation, and follow-up. Advertising A communication that is paid for by an identified to attain integrated marketing communications. sponsor with the object of promoting ideas, goods, or services. It Public relations This is the method of influencing the is intended to persuade and sometimes to inform. public so that they regard an individual, firm, charity, etc., in a KEY TERMS Direct marketing This is a method of selling by means of favourable light compared to their competitors, as in business dealing directly with consumers rather than through retailers. Industrya good corporate ExamplesAdvertising image andis an importantA communication asset. that is paid for by an identified to attain integrated marketing communications. sponsor with the object of promoting ideas, goods, or services. It Public relations This is the method of influencing the Personal selling This is the person-to-person interaction PublicityAdverts ThisEach is thechapter technique in theof attracting the attention of the between a buyer and a seller in which the seller’s purpose is public to a product,is intended organization, to persuade or event and by sometimesthe mass media.to inform. public so that they regard an individual, firm, charity, etc., in a to persuade the buyer of the merits of the product, to convince bookPublicity has involves numerousDirect a third marketing party,examples such as aThis newspaper is a method editor ofor sellingTV by means of favourable light compared to their competitors, as in business the buyer of his/her need for it, and to develop with the buyer supplementedpresenter, who determines dealingwith related directly whether imageswith the consumers message israther sufficiently than through retailers. a good corporate image is an important asset. an ongoing customer relationship. ofnewsworthy advertisements. toPersonal publish and selling what the Thisnature is theof the person-to-person message interaction Publicity This is the technique of attracting the attention of the Promotional mix This ia an organization’s total promotional should be. between a buyer and a seller in which the seller’s purpose is public to a product, organization, or event by the mass media. effort, including personal selling, advertising, publicity, public Sales promotionto persuadeThis is an the activity buyer ofdesigned the merits to boostof the product,the to convince Publicity involves a third party, such as a newspaper editor or TV relations, and sales promotion.The promotional mix attempts sales of a productthe or buyer service. of his/her need for it, and to develop with the buyer presenter, who determines whether the message is sufficiently an ongoing customer relationship. newsworthy to publish and what the nature of the message Fig. 7.3 Advertisement of Rooh Afza Promotional mix This ia an organization’s total promotional should be. Source: Superbrands 2012 EXERCISES effort, including personal selling, advertising, publicity, public Sales promotion This is an activity designed to boost the relations, and sales promotion.The promotional mix attempts sales of a product or service. Multiple Choice Questions (d) None of the above Product use The use of the product by the customer can be a variable for positioning a 5. Affordable, arbitrary, and percentage of sales are product. Viber’s print advertisement1. The communication (Times of tools India of, a18 company December include 2014 cover page) headline talks EXERCISES (a) Direct modes of communication 16 INTEGRATED(a) MARKETING Ways by which COMMUNICATIONS companies advertise about ‘58 reasons why India needs Viber—Introducing Viber Public Chats’. The advertisement(b) Ways by which companies choose communication copy further discusses how (b)consumers Indirect modes can of‘download communication the latest version, click on public chats,Multiple Choice Questions (d) None of the above 16 INTEGRATED MARKETING COMMUNICATIONS(c) Both of the above budget explore who’s chatting, and follow your favourite public chats to4. get Write behind a note theon the scenes IMC process. with advertising and personal selling’.5. Affordable, arbitrary, and percentage of sales are (d) None of the above (c) Strategy for1. sales The communicationpromotion tools of a company include Bollywood stars, cricketers, music, fashion, etc.’ 5. Write a note on (d)how Ways companies by which (a) cancompanies Direct establish modes do budget publicof communication relationsfor 4. Of the various ways by which budget(a) Ways can beby establishedwhich companies for advertise 4. Write a note on the IMC process.2. Advertising, sales promotion, onlineadvertising advertising, and and personal public selling’. communications. (b) Indirect modes of communicationcommunication process, which according(b) Ways to byyou which is the mostcompanies choose communication Symbols The golden archesrelations of McDonald’s are are an often cited example of positioning services 5. Write a note on how companies can establish budget for 4. Of the various6. ways You areby whichthe CommunicationConcept budget can Review be Manager established (c) Questions Bothof ‘W’ forof Stores. the above Formulate relevant and why? budget through the use of symbols. (a) Unpaid forms of communication communications. communication process,a communication which1. according Whatstrategy are tofor the you the various isnext (d) the None 35 communicationmost years. of the above tools that5. can ‘Integration be used in marketing communication(c) Strategy is just hype for sales created promotion by AQ3 Exercises The(b) exercises Paid forms ofsection communication 6.Competition You are the Communication Positioning Manager against of ‘W’well-known Stores. Formulate competitors relevant increases and why? effectiveness asby theyorganizations can for their communication with thecommunication target experts’. Give your reasons(d) Ways for by or which against companies this. do public relations includes Multiple(c) Choice Sometimes Questions paid and sometimes unpaid forms of 2. Advertising, sales promotion, online advertising, and public bea communication used as reference strategy forpoints. the next For 35 years.example, when localbanya.com5. ‘Integration inCritical marketinglaunched Thinking communication its onlineaudience? Questions isgrocery just hype created by AQ3 and Internet Exercises,communication besides relations are Internet Exercises Concept Review Questions shopping services in Delhi in the year 2015 it gave full pagecommunication jacket advertisements1. experts’. ‘Communication Give yourciting2. reasons Differentiateis ‘9all reasonsabout for or advertisingbetween against (a) Unpaid this. to theforms customers’. of communication Critical Thinking Questions (d) Advertising tools 1. What are the various communication tools that can be used why Delhi will Conceptlove localbanya.com’. Review Questions These and points were drawing outDiscuss the advantages the statement of onlinein the light(b) Paidof the forms communication of communication 1. Visit the website of makemytrip.com and identify the various 3. Unpaid communication includesInternet Exercises (a) advertising and sales promotion; by organizations for their communication with the target 1.shopping ‘Communication for grocery is all aboutCritical vis-à-vis advertising Thinking shopping to Questions.the for customers’. the same at the local kirana tools.store or supermarket such (c) Sometimes paid and sometimestools of unpaidcommunication forms onof the homepage. 12 INTEGRATED(a) MARKETING Publicity COMMUNICATIONS (b) personal selling and direct marketing; and audience? asDiscuss not having the statement to carry in heavy the light bags of thefull communication of grocery, getting 1. Visit8000 the products website2. Critically of atmakemytrip.com one evaluate place thewhich and statement identify ‘was thatthe communicationvarious‘Sales promotion is the 2. Identify a company and delineate the various tools of (b) Public relations (c) advertising and public relations hardtools. to find at a kirana store or sabzi mandi’, not having totools wait of communicationin longmost queues important on inthe a homepage. toolsupermarket, of communication’. (d) Advertising tools communication that the company2. Differentiateis using for communicating between http://adage.com/century/timeline/timeline1.html,(c) Both of the above last com/, last accessed on 7 January 2015. accessed on 1 January 2015. Dentsu Aegis (2015), available3. on Whathttp://dentsuaegisnet- are the various media available for advertisingon the theNet. (a) advertising and sales promotion; 2.etc. Critically evaluate the statement that(d) Sales ‘Sales promotion promotion is the 2. Identify a company3. Critically and evaluate delineate the the statement various3. Unpaid thattools ‘Public communicationof relations areincludes http://www.dentsu.com/business/international/, last work.com/, last accessed on 7 Januarycompany’s 2015. message? While working under a budget most important tool of communication’. communication thatimportant the company but companies is using for can communicating also(a) Publicitybe successful by just (b) personal selling and direct marketing; and Social context Positioningaccessed on 4.7 Januarythe Personal organization 2015. communication as a issocially consciousPublics Group organization (2016), available is on constraintincreasingly http://www.publicis- which two media should be used by a company 3. Critically evaluate the statement that ‘Public relations are on the Net. (b) Public relations (c) advertising and public relations becoming relevant,WPP (2015), especially available(a) Paidonwith http://www.wpp.com/wpp/,form the of communicationcustomers getting groupe.com/,vigilant about last accessed the onprotecting 7and January why? 2015. Makethe assumptions about the kind of product that is important but companieslast accessed can on also 7 January be successful 2015. by just M & M Global (2015), available on http://mandmglobal.(c) Both of the above environment and earth. Tata(b) Tea Unpaid is often form of using communication social contexts like voting at the timeto of be elections advertised. 3. What are the various media available for advertising the Omnicom (2016), available on http://www.omnicom/wp-content/uploads/2015/10/MMG_Agency-(d) Sales promotionREFERENCES with its ‘Jaago Re’comgroup.com/, campaigns(c) last (see Both accessed Fig.of the on 7.4). above 7 January In August2015. 2013,network-map-2015_Digital.pdf, it re-launched its Tata last Tea accessed Gold on 7 company’s message? While working under a budget brand by releasingInterpublic ‘Power (2015), availableof 49’ oncampaign https://www.interpublic. which highlightsJanuary the 2015. fact that 49% of the voter4. Personal communication is constraint which two media should be used by a company OxfordREFERENCES Belch,University G. E., M. A. Belch and K. (a)Purani Paid Press form(2010), of communicationAdvertising Jauhari, V. and K. Dutta (2010), Services:and why? 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Since its launch in 1982, Maggi noodles has become(2006), andlast the Marketing accessed chosenadvertising entries foron 7Hospitality Januarygot results featured, 2015.andAssociation in Tourism the TVC 4thof and Nationaledition, Advertisers,M & M GlobalKotler, (2015), Philip available and Kevin on http://mandmglobal.Lane Keller (2006), ‘Marketing on the packaging material for Maggi and also got Colley, R. H. (1961),synonymous Defining with advertising a dish goalsthat couldfor measured be cooked inPearson Omnicom Education (2016),New Inc, York. Newavailable Jersey .on http://www.omni-Each chaptercom/wp-content/uploads/2015/10/MMG_Agency- endsManagement’, the discussion 12th edn, Prentice Hall of India Private posted online. advertising resultstwo, Association minutes. During of National that period, Advertisers, consumers wereKotler, Philipcomgroup.com/, Engel,and Kevin James last Lane accessedF., KellerMartin on (2006), 7R. 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Against GroupM Report Promoting(2015), available the brand on http://www.live- Sengupta,Nestlé’s S. appeal, (2005),Indian-advertising-expenditure-to-touch-Rs49000-cro the Management Bombay High of CourtPublic in RelationsAugust andCASE STUDY Ltd, New Delhi. mint.com/Consumer/nAhthSk6371gEVIQiZ929J/ Communication, 2ndre-in-20.html, edition, Vikas last Publishing accessed on House 6 November Pvt. 2015. Shultz, D. E. (1993), ‘Integration helps you plan communi- The brand was promoted keeping in mind the end- 2015 ‘lifted the recall order and said the popular Indian-advertising-expenditure-to-touch-Rs49000-croconsumers (kids in a family) and the purchasers ofLtd, snacks New can Delhi.Harish, go on saleB. (2011),again after available fresh testson http://marketingpractice.onThe its Coming Back of Maggications from outside-in’ Marketing News, p. 12. re-in-20.html, lastthe brand—theiraccessed on 6mothers. November Thus, 2015. the ‘fun’ elementShultz, safety’ D. E. (Mukherjee (1993),blogspot.in/2011/05/koutons-50-40-off.html, ‘Integration and Malviya helps 2015). you plan communi- last Lbb (2016), available on https://lbb.in/delhi/68313-2/, Harish, B. (2011), wasavailable to attract on the http://marketingpractice. kids and ‘convenience’ plank wascations IntroductionAdvertising from agencyoutside-in’accessed at Nestlé onMarketing 9 April News 2016., p. 12. experiences lastwith accessed Maggi—their on 10 April ‘Maggi2016. moments’, to appeal to their mothers. It used tagline of Fast to blogspot.in/2011/05/koutons-50-40-off.html, last Lbb (2016),Publicis availableadvertising onagency https://lbb.in/delhi/68313-2/, handles the Maggi brand and the chosen entries got featured in the TVC and cook and good to eat, and the TV Commercial (TVC) Since its launch in 1982, Maggi noodles has become accessed on 9 April 2016. © Oxfordlastat accessed Nestlé,University andon 10McCann April Press. 2016. Worldgroup All rights handles reserved.the on the packaging material for Maggi and also got revolved around a catchy jingle of Mummy bhook lagi synonymous with a dish that could be cooked in Nescafé brand along with the corporate campaign (Mummy I am hungry). Promotional activities were posted online. twoof Nestlé. minutes. When Duringthe court grantedthat period, conditional consumers relief were done like distribution of free samples across small interestedto Nestlé, it wasin Chinese not the company’s noodles or and Publicis’s Nestlé idea, understood CASE STUDY towns and metros and trial packs were distributed at The comeback but McCann’s idea to come out with a campaign. A schools (Sharma 2010). It also offered gifts as utensils, this craze of the consumers (Das 2007). It designed series of advertisements (six to be precise) about ‘a Maggi received a big blow when Food Safety and toys, etc., on return of empty packsCASE of the brandSTUDY a product that could satisfy the noodles crazeVodafone: and Deals and Communication bunch of Maggi loyalists who shared tales of their love Standard Authority of India (FSSAI), banned Maggi (ICMR 2002). atfor the the noodle’sameAbout time,were Vodafone launched allow theon the housewife Internet with to allbe creative The brand has not only become the largest company At the turn of the century,Vodafone: the brand Deals repositioned and Communication noodles in the first week of June 2015, due to some byadvertisements giving the ‘ending leverage with ofa miss creating you message’. variations through itself as Taste bhi, Health bhi (i.e., Maggi is tasty tests showingin Europe, unsafe but levels in its of lifespan lead and of 15presence years, itof has come AccordingVodafone to Prasoon entered Joshi, Chairman, the world McCann on 1 January 1995 when About Vodafone and healthy) as it understood the shift in focusThe of additionbrand has of not vegetables. only become the largest company to control more than a third of the UK market. Wordgroupit Asiawas Pacific, launched ‘Instinct in the is very United important. Kingdom. Vodafone’smonosodium glutamate in the product. Against consumers towards ‘health’ platform. On completing in Europe,PromotingThere’s buta hugethein its brand faithlifespan and ofbelief 15 years,behind it thesehas come Nestlé’s appeal,Vodafone the marchedBombay Highinto theCourt international in August markets Vodafone entered25 years,the world it launched on 1 aJanuary campaign 1995 to connect when with the meteoric rise to the top is nothing short of a miracle. to controladvertisements. more thanWe believed a third the of consumers the UK were market. it was launched customers—thein the United Me Kingdom. and my maggi Vodafone’s campaign (Bhandari 2015 ‘lifted the recall order and said the popular VodafoneThedying brand tomarched hear was from promoted intous, and the we international keepingwere dying in tomind talkmarkets the end- meteoric rise to 2009).the top Customers is nothing were short asked of toa miracle.share their best consumers (kids in a family) and the purchasers of snacks can go on sale again after fresh tests on its the brand—their mothers. Thus, the ‘fun’ element safety’ (Mukherjee and Malviya 2015). was to attract the kids and ‘convenience’ plank was Advertising agency at Nestlé to appeal to their mothers. It used tagline of Fast to Publicis advertising agency handles the Maggi brand cook and good to eat, and the TV Commercial (TVC) at Nestlé, and McCann Worldgroup handles the revolved around a catchy jingle of Mummy bhook lagi Nescafé brand along with the corporate campaign (Mummy I am hungry). Promotional activities were of Nestlé. When the court granted conditional relief done like distribution of free samples across small to Nestlé, it was not the company’s or Publicis’s idea, towns and metros and trial packs were distributed at but McCann’s idea to come out with a campaign. A schools (Sharma 2010). It also offered gifts as utensils, series of advertisements (six to be precise) about ‘a toys, etc., on return of empty packs of the brand bunch of Maggi loyalists who shared tales of their love (ICMR 2002). for the noodle’ were launched on the Internet with all At the turn of the century, the brand repositioned advertisements ‘ending with a miss you message’. itself as Taste bhi, Health bhi (i.e., Maggi is tasty According to Prasoon Joshi, Chairman, McCann and healthy) as it understood the shift in focus of Wordgroup Asia Pacific, ‘Instinct is very important. consumers towards ‘health’ platform. On completing There’s a huge faith and belief behind these 25 years, it launched a campaign to connect with the advertisements. We believed the consumers were customers—the Me and my maggi campaign (Bhandari dying to hear from us, and we were dying to talk 2009). Customers were asked to share their best Preface

Effective communication with its target audience is the differentiating factor that ensures an organization’s success in a media fragmented and product-cluttered world. Creating a great product in itself is not sufficient till the same is not communicated to the consumers. This book is an attempt to understand the various ways and means by which companies can communicate with their target audience to create, build, and manage products in the marketplace. Communication facilitates the journey of a product from being a physical entity to being a brand. In other words, communication has to be integrated into the marketing activities of the firm, hence the importance of Integrated Marketing Communications. Marketing communication as an activity in an organization can be influenced and facilitated by a number of suppliers in the marketplace. It is therefore important to understand the various stakeholders and how they can impact the marketing communication of an organization. Advertising is the most visible form of communication, but communication is not limited to it. Companies communicate through personal selling, sales promotion, direct marketing, and publicity and public relations. Through these various tools of communication, companies can create a buzz in the marketplace. Brilliant planning and execution of marketing communication helps the brand in remaining visible to consumers resulting in a place in their long-term memory so that the brand is recalled at right points of time leading to monetary and non-monetary benefits for organizations. About the Book Oxford University Press Integrated Marketing Communications (IMC) is targeted to meet the needs of management students, faculty, and practitioners by presenting a comprehensive overview of understanding the environment, consumers, various tools of communication, communication via the new media, and how these can be used strategically to create a brand. To understand how a brand can be communicated globally to successfully manage the brand for a longer period of time, monitoring and control of marketing communication strategy is important. Also an understanding of the social and ethical perspectives cannot be ignored in the study of marketing communications. A communication manager needs to understand all these concepts and issues so that the marketing activities can be synergized resulting in a strong brand. The book provides a comprehensive understanding of all tools of marketing communication used in both traditional and new media. The key concepts are explored with the help of successful and iconic brands globally such as Coca Cola, HCL Technologies, Paytm, LIC, Maggi, Barbie, SBI Life, and Apple.

Every chapter starts with outlining the scope of the chapter and concludes with key defi nitions and summary for better assimilation of the content. The text in each chapter is full of rich images and corporate examples and includes boxed exhibits for better understanding of the theoretical concepts explored. The book provides a complete understanding of marketing communication— right from the process employed, the tools of communication, the environment which includes the political and regulatory environment, cultural environment, consumers to the various players and external agencies available that can be employed by marketers for communicating effectively with consumers. It tries to demystify and simplify the concepts involved in various tools of communication, not just advertising and sales promotion but direct marketing, personal selling, and public relations and publicity as well for the current and future brand and communication managers.

Key Features • Integrates theoretical concepts with corporate examples • Provides rich insights into successful and established brands • Includes topics such as communicating via the new media, both online and mobile, corporate image management, hiring and motivating the sales force, personal selling management, and event and sponsorship management. • Discusses practices of global and Indian companies like Apple, Coca Cola, Vodafone, LIC, Barbie, Paytm, etc. • Includes boxed marketing insights from the industry • Explains concepts through tables, exhibits, images, and case studies • Provides internet exercises for each chapter to practice the concepts studied Coverage and Structure The book is divided into nine sections comprising twenty-fi ve chapters. Various aspects of marketing communication have been explored to provide a complete overview of how communication can be managed. Each chapter is followed by a case study that helps in providing an understanding of the concept studied. The case studies are contemporary and help in enhancing the analytical skills of the students. The critical review questions and internet exercises help in applying the concept studied to real-life situations. Part I Introduction to IMC This section consistsOxford of two chapters. University Press Chapter 1: Introduction to IMC explores the need and importance of IMC and the role it plays in creating the corporate brand image. The chapter gives an introduction to IMC and the various challenges that it has to overcome along with an understanding of the communication model. Chapter 2: IMC Process gives an understanding of how IMC is carried out in organizations and introduces the various tools of communication. It highlights the importance of maintaining uniformity and continuity in the communicated message across tools of communication so as to achieve strategic objectives. Part II Understanding the Environment This section consists of four chapters. Chapter 3: Political and Regulatory Environment draws from the realization that organizations are bound by legal framework and have to communicate with their target audience within this

© Oxford University Press. All rights reserved. PREFACE ix regulatory purview. Government and non-government organizations regulate communications and companies have to be proactive about this so that they can incorporate this in their strategic and tactical planning. Chapter 4: Sociocultural Environment delineates the fact that infl uencing customers through marketing communications can be achieved provided companies understand the thought processes of customers, what they consume, how they consume, how they make purchase decisions, etc. This understanding necessitates the study of the social and cultural environment and its impact on the customers. Chapter 5: Understanding the Advertising and Promotion World gives an insight into the advertising and promotion world and how the ecosystem has various players that can assist an organization in performing these activities. Chapter 6: Understanding the Consumers further explores how consumer behaviour and consumption trends impact the manner in which they perceive, store, and retrieve the information and its implication on brand and on the purchase decision by consumers. The consumer purchase decision making process looks at the input, process, output model along with various factors that infl uence this. The chapter also looks at the buyer behaviour in a business to business context. The input, process, output model has been applied here and discussed in light for buying behaviour of an organization. The various factors that impact these stages are also discussed. Part III Promotion Tool—Advertising This section consists of four chapters. Chapter 7: Advertising Management explores a number of crucial decisions that need to be made which can impact the effectiveness of the advertisement. The advertising process starts with the objective, message strategy, execution, media options available, etc. Brands can have different objectives at different points of time and use of different media can confuse the customers if the message that is being delivered at different platforms is highly diverse. Hence, the need for an integrated communications concept and effective communications management is essential. Chapter 8: Advertising Strategy highlights the need for innovative approaches to gain the attention of consumers. MarketersOxford can use rationalUniversity and/or emotional appealsPress to gain the attention of consumers. The chapter further explores various factors on the basis of which marketers can decide the route they will follow. The discussion on the use of comparative advertising as a strategy to capture consumer attention helps understand how marketers can effectively use this as an advertising strategy. Chapter 9: Advertising Agency takes forward the concept that the numerous advertising agencies of today can assist the companies in their endeavour to communicate effectively with their target audience. It is for the company to choose the right agency—one which has the capability and willingness to serve it. Chapter 10: Point of Purchase Advertising explores how marketers can advertise and inform about their brands at the store thus attracting the consumers. Thus point-of-purchase advertising is important and cannot be overlooked as numerous studies have shown that majority of the decisions about brands are made in the store itself.

Part IV Promotion Tool—Sales Promotion This section consists of the following three chapters. Chapter 11: Sales Promotion Management develops an understanding of how marketers can manage sales promotion strategically to achieve the objectives of marketing communication. The chapter builds the importance of the succeeding two chapters and discusses how sales promotion offers an incentive to the customers to make a purchase. Chapter 12: Trade-oriented Sales Promotion discusses the ways in which companies can motivate the channel partners so that they actively promote the product to the customers. This strategy is also called ‘the push strategy’ as the manufacturers push their products through the channel partners to the end-customers. Chapter 13: Customer-oriented Sales Promotion looks at how companies can give promotional offers to customers so that they create a demand for their brand which helps in pulling the product through the distribution channels. The chapter highlights the fact that generally sales promotion is done to enhance the sales of the product, but it can also be used as a tool to enhance brand awareness and brand loyalty. Part V Promotion Tool—Direct Marketing This section consists of two chapters. Chapter 14: Direct Marketing Management discusses the strategy that can be employed by organizations to directly reach out to customers to sell the product thereby removing the middlemen and interacting directly with the customers. This helps in understanding the requirements of the customers better and gives marketers the opportunity to serve them well. Chapter 15: Database Marketing recognizes the fact that infl uencing the value perception of consumers is an ongoing and important aspect of marketing communication that can be achieved through database management. It looks at how companies can effectively collect, store, and retrieve information to market to the existing customers. Part VI Promotion Tool—Personal Selling This section consists of two chapters. Chapter 16: Personal Selling Management gives due importance to personal selling as it is the fi nal link between the company and its customers and facilitates the exchange process. It is one of the oldest forms of Oxfordpromotion and uses University the sales force to support thePress push strategy of the company. It discusses concepts like sales quota, sales forecasting, territory allocation criteria, and various methods of compensation for sales people. Chapter 17: Hiring and Motivating the Sales Force brings to prominence the need to hire and motivate the sales force as sales personnel are a vital link between a company and its customers. For the customers, interaction with the sales personnel is going to decide what they think about the company. Thus for the management, hiring the right people and keeping them motivated is imperative. Part VII Promotion Tool—Publicity and Public Relations This section consists of two chapters. Chapter 18: Public Relations Management gives a perspective on leveraging the relations with various publics to effectively communicate with the target audience. Public relation activities

© Oxford University Press. All rights reserved. PREFACE xi include corporate advertising, lobbying, donations, publicity, and so on. Publicity involves communicating through news in the media without paying for it. Consumers give higher credibility to communications received from news items compared to advertising and so this forms an important tool of communication. Chapter 19: Event and Sponsorship Management provides insights into how companies can reach their target audience by getting mileage out of promoting an event. Paying sums of money to sponsor events is just one part of the sponsorship activity which starts with identifying the branding objective that needs to be achieved through the sponsorship activity. Part VIII New Media This section consists of two chapters. Chapter 20: Communication via New Media helps marketers understand the technological advance- ments in the form of new media which needs to be explored as consumers have and are increasingly adopting this new media. The chapter helps provide an understanding of how marketers can pursue the various promotional tools online. Chapter 21: Mobile Marketing Communication helps in providing further clarity on communicating via the new media that is mobile phones. High internet penetration and constant consumption of this media by the target audience, provides humongous opportunities that need to be channelized into the marketing communication strategy so as to reach out to customers as per their convenience. Part IX Marketing Communications and Strategy This section consists of four chapters. Chapter 22: Corporate Image Management and Brand Building ties together the various communication tools that are used by organizations to get the organizational image in the mind of the consumers. A strong corporate image results in a number of benefi ts for the corporate like creating high brand equity, opportunities for brand extensions, price premiums, high market share, enhanced customer loyalty, and so on. Hence marketers need to understand how they can use communication as a strategy to build brands with strong brand equity. Chapter 23: Integrating Global Marketing Communication recognizes the world as a global village and needs to build uniform brand image global for enhanced profi tability and brand equity. The chapter provides an understanding of how the various tools of communication can be integrated on a global platformOxford leading to strong University brand identity. Press Chapter 24: Monitoring and Evaluation helps provide a perspective on how companies can monitor their marketing communication through various primary and secondary research techniques and use the results for further planning their marketing communication strategy more effectively. Chapter 25: Ethical and Social Perspectives recognizes ethics and morals as the invisible hand that guide actions of organizations through individuals who make the organizations. These are the checks and balances that are to be in place while formulating and executing all the marketing communication activities so that an individual’s ethical and social perspective does not lead to the organization’s undoing.

Acknowledgements Working on my third book was not easy. The consistent long hours of work could never have been possible without the constant inspiration and motivation from my loved ones on every front. The

support from my family ensured that I could burn the midnight oil with total dedication. Anil Dutta, my husband, has been a towering source of energy, because of which all this was possible. He has been my mentor and guide and has strongly infl uenced my research agenda. I really thank him for being patient and putting up with the light and keyboard taps while he tried to sleep. My daughters, Yoshita and Ridhima, have grown used to the long hours put in by me, researching and writing and have contributed towards the completion of this book in more ways than one. They have been my research assistants, my motivators, and above all my best guides to how their generation perceives marketing communication. They have sacrifi ced many weekends, and weekdays and their unconditional love has been a source of strength always. Yoshita has been my rock and support over the years. Ridhima has provided constant support on many sleepy nights. I adore her for helping me during tight deadlines and giving ready answers to almost anything under the sun. I love my daughters for being the sunshine in my life. My parents, Mrs Sudesh Mehta and Mr K. K. M. Mehta, have taught me the importance of communication and ingrained the zest for effective communication from childhood. They have made me what I am today and thanks to them, I realize that excellence is a journey not the destination. My parents-in-law—Late Mrs Krishna Dutta and Mr Manohar Lal Dutta’s love and care has been my inspiration and continues to enthuse me towards accomplishing meaningful endeavours. I feel blessed to have been able to experience their love and affection. I would like to express my heartfelt thanks to my brother-in-law Vijay Bali and sister Neelam, loving Ankita, sweet Palek, and dashing Tarun for motivating me to complete the book on time. My brother, Yashh Mohan Mehta, sister-in-law Archana, and my little angel Kshamta deserve special mention for being themselves and supporting me always. My sister Jaya, brother-in-law Rishi Raj Kinger, beautiful Mahima, caring Devya, and loving Abhijat have been the wind in my sails. They have kept me grounded and celebrated each milestone, energizing me to achieve more. The role of Dr Urvashi Makkar, Prof. H. G. Parsa, Mr Ajay Jaitly and Dr Sudhir Naib deserve special mention as they have constantly motivated me and infl uenced my research agenda. Presence of friends such as Anjali Tuteja, Usha, Meena, Kirti, and Pankaj Madan has always encouraged me. I also convey my heartfelt thanks to Rebecca Pandiraj and Shubhendu Ghosh for their invaluable inputs during the development of the manuscript. I would like to acknowledge the constant and unconditional support provided by the Master Communicator—Mr Anmol Dar (Managing Director, Superbrands India Pvt. Ltd) at all times. The many rich examples and images in the book could never have been possible but for him and the various Superbrands editions he has developed so painstakingly. Dr (Mrs) PragnyaOxford Ram, Group ExecutiveUniversity President—Corporate Press Communications and CSR, Aditya Birla Group deserves special mention for being a great human being and motivating me always. Her soft voice has inspired me always and I thank her deeply. I would also like to express my thanks to The Economic Times, Mint, and Business Standard for coming out with quality articles and readings, thereby enabling me to weave rich examples into the fabric of the text. My sincere thanks to the entire editorial team of Oxford University Press, India for their patience, professionalism, and the painstaking efforts put in to revise the drafts. They have always encouraged me to redefi ne my own limits and orchestrated the entire work. My students deserve a special mention for developing my perspective over the years. Their inquisitive minds have always challenged the limits and helped me explore and expand my mental faculties. Kirti Dutta

Features of the Book iv Preface vii Detailed Contents xv

Part I Introduction to IMC 1

1. Introduction to IMC 3 2. IMC Process 25

Part II Understanding the Environment 45

3. Political and Regulatory Environment 47 4. Sociocultural Environment 74 5. Understanding the Advertising and Promotion World 98 6. Understanding the Consumers 111

Part III Promotion Tool—Advertising 141

7. Advertising Management 143 8. Advertising Strategy 171 9. Advertising AgencyOxford University Press 195 10. Point of Purchase Advertising 215

Part IV Promotion Tool—Sales Promotion 225

11. Sales Promotion Management 227 12. Trade-oriented Sales Promotion 238 13. Customer-oriented Sales Promotion 251

Part V Promotion Tool—Direct Marketing 267

14. Direct Marketing Management 269 15. Database Marketing 288

Part VI Promotion Tool—Personal Selling 301

16. Personal Selling Management 303 17. Hiring and Motivating the Sales Force 329

Part VII Promotion Tool—Publicity and Public Relations 347

18. Public Relations Management 349 19. Event and Sponsorship Management 367

Part VIII New Media 379

20. Communication via New Media 381 21. Mobile Marketing Communication 407

Part IX Marketing Communication and Strategy 423

22. Corporate Image Management and Brand Building 425 23. Integrating Global Marketing Communication 441 24. Monitoring and Evaluation 457 25. Ethical and Social Perspectives 474

Index 485 About the Author 491

Oxford University Press

Features of the Book iv Preface vii Brief Contents xiii

Part I Introduction to IMC 1

1. Introduction to IMC 3 Advertising 26 Marketing Communication 4 Sales Promotion 28 IMC—An Introduction 5 Personal Selling 28 Need and Importance of IMC 8 Direct Marketing 29 IMC Challenges 9 Public Relations and Publicity 29 Corporate Image 11 Imc Process 30 Role of IMC in Building Brands 13 Opportunity Analysis 30 Diversity in Consumers 14 Market Analysis 32 Consumer Decision-making Processes 15 Setting Objectives 32 Communication Model 17 Establishing the Budget 32 Integrated Marketing Communications Strategy Formulation 36 Strategy 18 Execution 36 Measurement of Effectiveness 36 2. IMC Process 25 Evaluation and Follow-up 36 Introduction 26 Strategy Development 37 IMC Tools 26 Research in Marketing Communication 38

Part II UnderstandingOxford the Environment University Press 45 3. Political and Regulatory Environment 47 Regulatory Role of the Government 64 Introduction 47 Public Relations and Publicity 66 Advertising 49 Laws Governing Online Marketing 67 Regulatory Role of the Government for Advertising the Products 49 4. Sociocultural Environment 74 Self-regulatory Bodies 53 Introduction 75 Sales Promotion 57 Sociocultural Environment 75 Regulatory Role of the Government 57 Understanding the Social Environment 75 Laws Governing Personal Selling 59 Influence of the Social Environment on Marketing Regulatory Role of the Government 59 Communication 80 Direct Selling 61 Understanding the Cultural Environment 82 Regulatory Role of the Government 61 Influence of Cultural Environment on Marketing Self-regulatory Bodies 62 Communication 90 Direct Marketing 64

5. Understanding the Advertising and Consumer and Consumption Trends 112 Promotion World 98 Consumer Processing Model 114 Introduction 98 Learning Process 115 Communication Planning 100 Marketing Communications and Consumer Market Scenario 102 Decision-making Process 121 Advertising Agencies 103 Input Stage 122 Media Management Agency 104 Process Stage 122 Public Relations Firms 105 Output Stage 126 Suppliers—Market Research Firms, Photographers, Film Divestment 127 Producers, Printers, Etc. 105 Signs and Meanings for Consumers 127 Managing the External Agencies for an Integrated Business-to-Business Buyer Behaviour 132 Approach 105 Input Stage 132 Process Stage 133 6. Understanding the Consumers 111 Factors Infl uencing Process Stage 133 Introduction: The Need to Understand Divestment 135 Consumers 112

Part III Promotion Tool—Advertising 141

7. Advertising Management 143 Marketers’ End 186 Introduction 144 Comparative Advertising 186 Types of Advertisements 144 Advertising Process 146 9. Advertising Agency 195 Advertising Objectives 147 Introduction 195 Message Determination 149 Evolution of the Advertising Agency 196 Analysis and Selection of Media 150 Stage I (Early Age to AD 1917) 196 Decoding the Message 151 Stage II (AD 1918–AD 1956) 197 Feedback 151 Stage III (AD 1956–AD 1990) 200 Source, Message, and Channel Selection 151 Stage IV (AD 1990 to Present) 200 Source 152 Types of Agencies and their Roles 200 Message 153 Creative Agency 201 Channel Selection 154 Media Buying Agencies 201 Advertising in Various Media 156 Full-service Agencies 201 Press 157 In-house Agencies 201 Television 159 Specialized Agencies 201 Radio 160 A la Carte or Boutique Agencies 202 Outdoor 161 Choosing an Advertising Agency 202 Cinema 161 Oxford UniversityIn-house Agency Press and External Agency 203 Internet 162 Advantages and Disadvantages of In-house Agency 203 Creativity in Advertising 163 Advantages and Disadvantages of External Planning Advertising and Integrated Brand Agencies 203 Promotion 165 Advertising Planning and Execution 204 Working of an Advertising Agency and 8. Advertising Strategy 171 its Management by a Company for its Introduction 172 Advertising 207 Advertising Strategy 172 Advertising Planning 174 10. Point of Purchase Advertising 215 Advertising Management 175 Introduction 215 Creation of Appeal 175 Role of Point of Purchase Advertising 216 Advertising Appeals 175 Need for Pop Advertising 217 Strategic Tools 180 Understanding the Shopping Behaviour 218 Execution of the Advertisement 185 Various Ways of Pop Advertising 218 Consumers’ End 186 Cooperative Advertising and Vendor Support 220

Part IV Promotion Tool—Sales Promotion 225

11. Sales Promotion Management 227 Trade-oriented Sales Promotion Process 242 Introduction 227 Step 1: Objectives of Trade Promotions 242 Sales Promotion 228 Step 2: Selecting the Tool 242 Sales Promotion Process 229 Step 3: Implementation Strategy 245 Setting the Objective 229 Step 4: Evaluating the Results 246 Selecting the Tool 229 Implementation Strategy 230 13. Customer-oriented Sales Promotion 251 Evaluating the Results 230 Introduction 252 Types of Sales Promotion 230 Customer-oriented Sales Promotion—An Push or Trade-oriented Promotion 231 Introduction 252 Pull or Consumer-oriented Promotion 231 Pulling through Sales Promotion 253 Capabilities and Limitations of Sales Consumer Oriented Sales Promotion Process 253 Promotions 232 Tools of Sales Promotion 254 Benefi ts of Sales Promotion 232 Sampling 255 Drawbacks of Sales Promotion 233 Coupons 256 Premiums 258 12. Trade-oriented Sales Promotion 238 Price-offs 258 Introduction 238 Bonus Packs 259 Trade Promotion 239 Cashback 260 Pushing through Sales Promotion 239 Contests and Sweepstakes 260 Need for Trade Promotion 240 Exchange Offers 261 Retailers’ Infl uence on Purchase Decision 240

Part V Promotion Tool—Direct Marketing 267

14. Direct Marketing Management 269 Objectives of Database Marketing 290 Introduction 269 Database for Direct Marketing 290 Direct Marketing Defi ned 270 Determining the Targets 292 Direct Marketing as a Promotion Tool 270 Selection and Execution of the Strategy 292 Process of Direct Marketing 274 Response of Customers 292 Media Planning 279 Calculating Customer’s Value 293 Direct Selling 280 Telemarketing 294 Outbound Telemarketing 295 15. Database Marketing 288 Inbound Telemarketing 296 Introduction 288 Benefi ts and Challenges of Database Database Marketing OxfordProcess 289 UniversityMarketing Press296

Part VI Promotion Tool—Personal Selling 301

16. Personal Selling Management 303 Subjective Method 312 Introduction 303 Objective Method 313 Personal Selling Process 304 Territory Management 319 Planning for Personal Selling 306 Revise Territory 320 Sales Quota 308 Compensating the Sales Force 321 Objectives of Setting Sales Quota 308 Salary 322 Types of Quotas 309 Commission 322 Forms of Sales Quota 310 Combination Plans 323 Sales Forecasting and Methods of Allocating Advantages and Disadvantages of Personal Quotas 312 Selling 324

17. Hiring and Motivating the Sales Force 329 Selling Activities and Jobs 333 Introduction 329 Attributes for Excellence in Selling 334 Sales Force Management 330 Hiring the Sales Team 336 Objectives 330 Motivating the Sales Team 338 Required Size of the Sales Force 330 Training the Sales Team 339 Recruitment and Selection 331 Step 1: Sales Training Need Analysis 340 Training the Sales Force 331 Step 2: Training Objectives 340 Allocation of Sales Quota 331 Step 3: Money to be Allocated for the Training 340 Motivation and Compensation 331 Step 4: Details of the Training Programme 340 Performance Evaluation 331 Step 4: Training Evaluation 341 Functions of the Sales Force 332 Step 5: Follow-up 341

Part VII Promotion Tool—Publicity and Public Relations 347

18. Public Relations Management 349 19. Event and Sponsorship Management 367 Introduction 350 Introduction 368 Public Relations and Publicity 350 Sponsorship Management 368 Tools of PR 352 Event Management 370 Maintaining Good PR 354 Need for Sponsoring Events 372 Crisis Management 357 Ambush Marketing 373

Part VIII New Media 379

20. Communication via New Media 381 Managing Word-of-Mouse 396 Introduction 382 Benefi ts of Online Communication 396 Communicating through the New Media 382 Internet Metrics 398 Online Advertising 383 Challenges for Online Communication 398 Ways of E-advertising 384 Type of Digital Ads 389 21. Mobile Marketing Communication 407 On the Internet 389 Introduction 408 On Mobile Devices 391 Mobile Marketing Communication 409 Pricing of Digital Ads 391 Pros and Cons of Mobile Marketing 415 E-direct Marketing 391 Some Innovative Ways of Mobile E-sales Promotion 392 Marketing 416 Personal Selling 393 Monitoring the Performance for Mobile Communications 417 E-Public Relations Oxford393 University Press Part IX Marketing Communication and Strategy 423

22. Corporate Image Management and Brand Brand Name Decision 446 Building 425 Global Advertising 447 Introduction 425 Standardized Versus Local Advertising 447 Using IMC to Build Corporate Image 426 Advertising Agency 448 Managing the Customer Perception 432 Global Sales Promotion Strategy 449 Building the Brand through Global Personal Selling Strategy 449 Communication 433 Global Direct Marketing Strategy 451 Global Management of Publicity and Public 23. Integrating Global Marketing Relations 451 Communication 441 Benefi ts of an Integrated Communication 451 Introduction 442 24. Monitoring and Evaluation 457 International Promotion 442 Introduction 457

Monitoring the Communication Programme 458 Conclusion 469 Evaluation Prior to Execution of Communication 459 Evaluation and Feedback 469 Measuring the Effectiveness 460 Creative Strategy Evaluation 461 25. Ethical and Social Perspectives 474 Media/tools Evaluation 462 Introduction 474 Methods to Measure the Effectiveness 463 Need for Ethics 475 Exploratory Research through Qualitative Benefi ts of Ethical Communication 476 Techniques 464 Ethics and IMC 478 Secondary Data Search 464 Ethics and Advertising 478 Survey of Knowledgeable People 464 Ethics and Sales Promotion 479 Analysis of Select Cases 467 Ethics and Direct Marketing 479 Conclusive Research through Quantitative Ethics and Personal Selling 479 Techniques 467 Ethics and Public Relations 480 Descriptive Studies 467 Social Perspective 480 Experimentation 468 Mar Com and Children 480

Index 485 About the Author 491

Oxford University Press

LEARNING OBJECTIVES

After studying this chapter, the reader will be able to understand • the various IMC tools the process of IMC • OPENING CASE • the process of developing a strategy for IMC Spa for the Eyes • the process of research for IMC A national daily had a front cover page (dated 4 April 2016) boldly asking ‘Wouldn’t it be nice if your eyes felt younger, fresher and rejuvenated again?’ There was a half face of a model covering the length of the page and on the top right was the company’s logo LifeZenTM with the tagline ‘Embrace Life!’, and at the bottom was the invitation ‘ﬂ ip to see how...’ The back of this front page of the daily gave the solution in the form of their brand EyeSpaTM with the advertisement copy saying ‘get back the radiant and youthful bliss of your eyes, with EyeSpaTM’. The copy further showed the packaging of the product, and readers could immediately see the ‘cool hydrates and refreshes’ and ‘instant calm’ on the packaging. The advertisement explained how ‘today’s working lifestyle, essentially governed by technological factors such as computers, TVs, tablets, and smartphones, and external factors such as pollution, dust, and climate change’, was causing strain on the eyes and making them itchy, dry, and causing eye fatigue. EyeSpaTM was then highlighted as the saviour as ‘it brings back the natural balance of moisture in your eyes keeping them fresh, Oxfordlustrous, Universityand relaxed’. A doctor was also Press shown in the advertisement with the message ‘No. 1 formula recommended by eye specialists’. It built conﬁ dence in the reader by highlighting ‘no itching and burning, 100% safe to use, and 20 years of trusted medical expertise from the house of BAL Pharma Ltd’. Customer care number was given along with the website address and name and contact number of authorized distributors. Customers could also follow the brand on the Twitter and Facebook. The advertisement also had a sales promotion offer and customers could call on a number to win an iPhone. Question: A half-page advertisement of the problem (eye fatigue, prickliness, etc.) and the solution (EyeSpaTM) could have served the purpose of the company. Instead, it went through an entire strategy and released a two-page advertisement. Why did it need to do this and what were the marketing communication strategies that it used?

INTRODUCTION Carrying out the communication function of an organization is a sequential process that requires careful planning and execution. Communication made by a company helps the consumers develop an understanding about what the company is about. In addition, whatever is communicated remains in the consumer’s memory for long and so each passing day makes the communication task more challenging. The P of promotion (in the 4/7 Ps) consists of advertising, sales promotion, personal selling, direct marketing, and public relations. Companies can use either one or a mix or all of these to communicate with their target audience. Thus, for example, in the opening exhibit, EyeSpaTM uses advertising and sales promotion to reach out to its customers. Before we proceed with a detailed discussion of the same, it is important to reiterate that all the other Ps—that is product, price, and place (in 4Ps) and people, process, and physical evidence (the other 3Ps in 7Ps for a services product) also communicate with the target audience. The quality of the product, the price charged for that quality, where it is sold, the behaviour of the service personnel, how it is sold, and the ambience of the place (all the three) communicate with the customers. The interaction that the consumer has with the product and its performance each time will build either a positive or a negative conformance with the communicated message. Thus, what is communicated has to be in line with the other Ps of the marketing mix.

IMC TOOLS Companies can communicate with their customers through their promotion mix that includes a number of tools such as advertising, sales promotion, personal selling, direct marketing, and public relations and publicity. These tools have to be managed and coordinated so that companies can inform and persuade their customers and sell or promote their products and this is called promotion. For example, the advertisement of Odonil informs consumers about the various fragrances such as lavender and rose that consumers can use to ‘lift their mood’ (Fig. 2.1). The company can communicate with their target audience either directly or through a media. Both these methods can also be employedOxford by organizations. University When communicating Press through a media, it is important to note that it can be paid and unpaid. Paid communication includes advertising, sales promotion, online advertising, and public relations, and unpaid communication includes publicity. Personal communication can also be paid and unpaid. Paid personal Fig. 2.1 Image of Odonil Amazing communication includes personal selling and online chatting fragrances advertisement while personal unpaid communication includes word-of- Source: Superbrands 2012 mouth communication between a peer to a peer.

Advertising Advertising is a paid form of communication by the service providers with its target audience to facilitate exchanges (of services or information) with its stakeholders. An organization can

© Oxford University Press. All rights reserved. IMC PROCESS 27 either design the advertisement in-house (by creating a department), or it can outsource it from an advertising agency. In India, the advertising industry stood at `12,526 crore in 2013 (Pitch Madison Media Ad Outlook 2013) and reached `43,991 crore in 2015. In the year 2016, it is expected to reach `51,365 (Pitch Madison Advertising Report, 2016 cited in Exchange4media 2016). In 2015, the industry grew at a rate of 17.6% and is expected to grow at 16.8% in 2016 (Exchange4media 2016). There are many advertising agencies, and the most prominent being Ogilvy and Mather (O&M), Lowe, McCann-Erickson, Contract Advertising, FCB-Ulka, etc. Advertising can be done through a number of media. Table 2.1 shows the advertising spend for different media in the year 2015 as per GroupM Report where 2014 and 2015 are based on estimates.

Table 2.1 Advertising spend across media in 2015

Medium Media growth Money spent in % of total—2015 2015 (`crore) 2013 2014 2015 TV 14 15 16 22,446 45.8 Print 4 7 5 16,875 34.5 Digital 30 35 37 4,661 9.5 Out of home 6 9 4 2,542 5.2 Radio 7 10 11 2,007 4.1 Cinema 12 25 20 408 0.8 All 10 12.5 12.5 49,000 100

Advertising helps inform customers about the product and has a mass reach. Through advertising, marketers can remind and reinforce the services offered. The objective of advertising can be short-term (for example to enhance sales) or long-term (for example to build brand equity and customer loyalty). Thus, the Kitply advertisement talks about being a part of every memorable moment (Har yaadgar pal ka hissa)Oxford in the consumers’ University life and builds on Press the brand equity and customer loyalty (Fig. 2.2). It has the ability to reach a geographically dispersed base of customers at a low cost per exposure. On the other hand, there are disadvantages of this tool of promotion as well. Advertising is a one-way communication and is impersonal and not as persuasive as some of the other tools. TV advertising requires a large budget. Moreover, there is the problem of the presence of a number of channels resulting in not only difﬁ culty of choice for the marketers but also channel surﬁ ng by the customers. The advertising copy needs to be changed at regular intervals Fig. 2.2 Image of Har yaadgar pal ka hissa to retain interest of the consumers. Part III of the book advertisement of Kitply talks about advertising in detail. Source: Superbrands 2012

Sales Promotion ‘Sales promotion consists of short-term incentives to encourage the purchase or sale of products’, (Kotler et al. 2006). FMCG companies have used this since long, but service industries such as insurance, fi nancial services, healthcare, telecom, and hotels are also using it increasingly. Sales promotion can include coupons, rebates, price-off, contests, demonstrations, etc.; it is most effective when used along with other promotion techniques. A good sales promotion can also result in publicity when it is talked about in the media; the vice versa also holds true. It is an effective tool to gain the attention of the customers towards the product. If the incentive offered is attractive enough for the customers, they will end up purchasing the product as well. For a successful promotion, ideation and implementation should be worked out in detail so that it achieves the desired results. Thus, schoolkart. com, a website that sells school uniforms, textbooks, stationery, water bottles, etc., came out with a sales promotion offer of 40% discount on school shoes, 30% on school bags, 30% on water bottles, lunch boxes, etc. They released print advertisements in newspapers highlighting the availability of school uniforms of more than 500 schools and more than 25,000 products for school kids and the print copy further elaborated on the various sales promotional offers. The advertisement was released in the fi rst week of April, that is, when the new academic year starts and all school-going kids are to purchase their new books, stationery, uniforms, etc. Along with the website, customers could also call on a phone number to place their orders. The timeframe for running a promotion is also an important consideration in a sales promotion. If a sales promotion runs for too long or too often, it becomes part of customer expectations, and if it is then discontinued, it builds resentment in the minds of the customers, who even stop using that product. Thus, for example, Koutons’ promotional offers of ‘50% + 40% off’ delighted the customers, and thus, ultimately for a shirt of `1500, they were paying around `450. This strategy worked for the company and customers were happy for a number of years. Soon, customers realized that the offer was available any time of the year and this sowed doubts in the minds of the customers about the quality of the shirt that was priced at `1,500. As a result, the customers who bought the brand felt they had ‘got a good bargain but later found and felt that they were victims of a very clever marketing strategy’ (Harish 2011). In addition, running promotions for too long incurs cost to the company and eats into the profi tability. It is argued that promotion benefi ts customers who would have bought the product anyway and so a proportion of the money spent is wasted anyway. In addition, it does not contribute to the long-term brand value for the company. Sales promotion as a communication tool is discussedOxford in detail in Part IV University of this book. Press

Personal Selling Personal selling is deﬁ ned as ‘face-to-face interaction between buyers and sellers so that it leads to value creation that is a solution to the customer’s problem and also results in achieving the company’s objective’. Personal selling involves selling the product of the service organization through the salesforce. This involves maintaining a salesforce and hence a sales department, the personnel of which are involved in direct contact with the customers. All the activities such as the maintenance of the sales people and their travelling cost while on sales calls cost the organization a great deal. Thus, in the overall communication budget, they are responsible for a major chunk of the money allocation. This money is well spent since it is the most effective communication tool as far as building a customer preference, conviction, and purchase are concerned. Since the personnel can interact with the customers, they can tailor their presentations according to the customer’s requirements and

© Oxford University Press. All rights reserved. IMC PROCESS 29 provide current, up-to-date information to the customers. Two-way communications also help in gaining consumer insights as far as the product purchase and consumption are concerned. Customer relationships can be built and managed while selling through the salesforce. As already discussed, the drawback is that it is expensive and even though organizations can discontinue advertising and sales promotion, personal selling cannot be varied easily and requires committed efforts by the organization. More about personal selling is discussed in Part VI of the book.

Direct Marketing Over the years, direct marketing has assumed new meanings. Originally, direct marketing attracted customers by contacting them without involving any intermediaries. Thus, salespeople were also a part of direct marketing. However, with the introduction of media such as telephone, television, and the Internet, the concept was redefi ned. The Direct Marketing Association (DMA) defi ned it as ‘an interactive system of marketing that uses one or more advertising media to effect a measurable response and/or transaction at any location’ (Kotler et al. 2006). The advantage of direct marketing is that, like personal selling, the message can be customized as per individual’s requirements. The message will again be more current (just such as personal selling) in comparison to advertising as the time period required for the fl ow of information from the company to the customer is less. The drawback is that compared to mass methods, the reach here is limited although this does not apply to direct marketing through the Internet. Since Internet offers a number of opportunities, it has been dealt under a separate section (Part VIII) of the book. Direct marketing is discussed in detail in Part V of the book.

Public Relations and Publicity Management of the relationship with the various stakeholders such as employees, shareholders, and government falls under the management of public relations. Jobber(2001) deﬁ nes public relations as ‘the management of communication and relationships to establish goodwill and mutual understanding between an organization and its public’. Publicity is deﬁ ned as ‘a particular manner of information projection through various media of mass communication Oxford University Press

Fig. 2.3 Image of Kitply boundary board at a cricket ground Source: Superbrands 2012

about an organization, product, event or issue to inﬂ uence public opinion’ (Sengupta 2005). It refers to any mention about the brand that is made in the media without paying for it as in the case of advertising. Managing good relations with the press can result in the coverage of news. This will portray the company in a positive light which in turn is beneﬁ cial as the customers believe the publicity material more than the advertised material. For example, Kitply sponsors cricket matches and ‘Kitply cheques given to icons like Sachin Tendulkar at the end of matches created a remarkable franchise for the brand’ (Superbrands 2012) (Fig. 2.3). In addition, through publicity, companies can reach those customers who avoid advertisements and salesforce as well. Thus, through publicity, companies can reach a wider audience at negligible cost. The disadvantage is that negative publicity can also be generated. More about public relations and publicity is discussed in Part VII of the book.

IMC PROCESS Marketing communications involve communicating with the target audience through a number of promotional tools discussed in the preceding section. However, all these tools might result in different messages being communicated to the target audience. Hence, the concept of IMC that results in coherent, clear, and consistent messages is being communicated about the brand to the target audience. The process of IMC (Michael Ray 1993; Engel et al. 1987; Kotler et al. 2006; Jobber 2001; Jauhari and Dutta 2010; Clow and Baack 2013; Belch, Belch, and Purani 2011) is highlighted in Fig. 2.4 (Exhibit 2.1).

Opportunity Analysis This involves analysing the target audience that the company wants to approach with its promotional messages. Thus for example, United Colors of Benetton realized that they wanted to connect with women and so came out with the #UnitedByDonts campaign (Exhibit 2.1).

Exhibit 2.1 UCB’s ‘Don’t Party’

The multinational clothing brand United Colors of Benetton (UCB) dedicated to this event https://www.unitedby.in/ with the message— realized that there were a numberOxford of don’ts that the societyUniversity was ‘Don’t party, don’t step Press out alone, don’t go out at night, don’t take imposing on the fairer sex in India. Identifying an opportunity, it came a cab, don’t walk down that lane, don’t take the metro, don’t ride a out with an idea for an event ‘The Don’t Party’ where they wanted to bike after dark, don’t wear that dress, don’t wear a skirt, don’t wear unite all the women and their support systems to stand up ‘against sleeveless tops, don’t talk to boys, don’t drink, don’t laugh aloud, the ‘dont’s they are constantly told in the name of safety.’ (lbb 2016). don’t hang out with men, don’t drive alone, don’t take a bus, and To put the plan into action, they released advertisements with a don’t attract attention. Women are told a lot of don’ts in the name of number of ‘don’ts’ such as ‘don’t wear the short skirt’ and ‘don’t go out safety. Let’s unite against the don’ts at The Don’t Party.’ They built a lot at night’. They came out with full page advertisements in Delhi Times of conversation on Twitter with #UnitedByDonts. (supplement of Times of India), giving the details of ‘The Don’t Party’, UCB carefully identiﬁ ed an opportunity and built the desired which was to be hosted on 9 April 2016 at Nehru Park, New Delhi, audience by coming out with advertisements and touching the from 6:30 pm onwards. Mini Mathur was to host the show and Neeti consumers online and through social media. To participate, the Palta was the stand-up comedian with the main act being performed audience had to register for the event and so the outcome could by the Shillong Chamber Choir and music by the Delhi Indie Project. be measured easily. In addition, since #UnitedByDonts was used The entry was free but the participants had to sign up for the party for the entire event, the online metrics could also be used to trace at www.unitedby.in. Thus, on the Internet, they launched a website the effectiveness of this event.

Opportunity analysis

Market analysis

Setting objectives

Budget allocation

Strategy formulation

Advertising objective Sales promotion Direct marketing Personal selling PR objective Internet/mobile objective objective objective mktg objective

Message determination Identifying publics Selecting Segmentation and targeting Required size of Internet/ the tool the salesforce Analysis mobile Message decision mktg Selecting direct-marketing tool Recruitment and strategy Selection of media selection Media strategy Designing the offer Training the salesforce

Testing the offer Allocating sales quotas

Oxford UniversityExecution Press

Measurement of effectiveness

Evaluation and follow-up

Fig. 2.4 The IMC process

An understanding of the customers is important as companies need to know the needs and wants that the customers are fulfi lling by purchasing their product, how they consume their product, what infl uences them, where they spend their time, etc. All this helps the marketers understand their consumers and this will be refl ected in their strategy as now they can communicate with their customers rather than communicate to them. As a result, the probability

of customers taking note of the communicated message resulting in the desired outcome (i.e., purchasing the product) would increase.

Market Analysis Customers compare brands in the product category before making a purchase, therefore necessitating an understanding of the market where marketers want to operate. They need to understand their competitors, the features of their product offering, how their products are positioned, and their strengths and weaknesses. All this will further help in strategizing for the market by weighing these with the features of the company’s own product along with their strengths and weaknesses and how they can now position themselves keeping in mind the customer’s frame of reference.

SETTING OBJECTIVES The next step is to set the objective for the marketing communication, and the marketing objectives to be achieved in the communication campaign should be clear from the outset. The ultimate aim of communication is to stimulate sales and increase profi ts, but the objectives have operational value, and can be related to brand knowledge, brand attitude, strengthening brand image, etc. The objective is also important as while evaluating the result of the advertising campaign, companies need to know how to evaluate the campaign. If the objective of the campaign was to enhance brand knowledge, then it would be wrong to evaluate the change in brand attitude at the end of the campaign. Thus, the objective binds the activities of the communication process and is the steering force that guides the formulation of the message that is to be communicated. An approach that deserves special mention while setting the objectives is the DAGMAR (Defi ning Advertising Goals for Measured Advertising Results) approach developed by Russell Colley in 1961. As per this approach, the goal for advertising should be clearly identifi ed into specifi c tasks that is achievable. The task as per the hierarchical model can be to create awareness about the brand; develop an understanding or comprehension about the brand; convincing the customers to make a purchase; and ultimately driving the customer to action so that they purchase the product. However, this is also the drawback of this model as it is not mandatory that all the customers follow the sequence of hierarchy of effects before making a purchase. However, the idea is that the goal should be defi ned and formulationOxford of the objective should University be as per the SMART principle, Press that is, it should be specifi c, measurable, achievable, and realistic, and should be achieved within a timeframe. In addition, this DAGMAR follows the inside-out approach (Schultz 1993) where marketers focus on what they want to say regarding their brand to infl uence the customers. However, this model reiterates the outside-in approach of Shultz, 1993, where the focus is on the customers and how brands can best serve their requirements. Thus, the fi rst step of the model is opportunity analysis where the focus is on the needs and wants of the customers.

Establishing the Budget Once the objective has been decided and before work starts on how to achieve the objective, marketers need to know the amount of money in which to achieve this task. Thus, establishing and allocating the budget is important. It is important to note that companies work under the limitations of their budgets and even though the amount may vary, the budget constraint will

© Oxford University Press. All rights reserved. IMC PROCESS 33 always be there. Thus, there is a two-way interaction between setting the objectives and budget constraints and between budget constraints and strategy formulation. In an organization, the communication budget is made with the annual fi nancial budget. Therefore, companies have the budget allocated for their communication department. Marketing department then has to allocate this budget over the fi nancial period for its various communication activities. Hence, the strategy formulation within this budgeted amount is important for the marketing communications’ managers. Budgeting requires an understanding of the cost centres of the company. Hence, this leads to a communication outlay being treated like an expense by the managers rather than being treated as an investment. This also results in comparing the budgeted amount with the increase in sales due to this investment. It is, therefore, important to remember the DAGMAR approach to setting objectives wherein the results should be measured against the goals identifi ed for the promotional activity. Thus, if building the brand awareness is the activity, then the result to be measured should be the degree of brand recall by the targeted audience post the promotional activity. There are various methods for allocating the budget for marketing communications. These can broadly be classifi ed into the top-down and build-up approachs. As discussed above, generally in companies, the annual fi nancial budget is made and then the money is allocated for the communication process. This method is called the top-down approach in setting up the budget and employs the following methods for allocating the budget for marketing communication (Kotler and Keller 2006; Kotler et al. 2006; Jobber 2001; Belch, Belch, and Purani 2011; Jauahri and Dutta 2010): Affordable method This is a simple method of identifying the amount of money the organization can afford to spend in a particular fi nancial year. It is not related to the objective of marketing communication or the amount of money required for performing effective marketing communications. Companies feel that they will not fall into fi nancial problems if they just spend what they can afford. Thus during tough times, when sales are low, this method would result in low budgets just when the opposite would be required to capture the market share. Arbitrary method As the name suggests, the advertising budget is set on a random basis as per the manager who is setting the budget. This method is weaker than the affordable method as it results in allocating the communication budget arbitrarily rather than on the basis of logical thinking or achievementOxford of some objective. University Press Percentage of sales method Some organizations fi x a particular percentage of sales as the amount allocated for marketing communications. Supporters of this method fi nd the following advantages related to it: 1. Companies spend as much as they can afford. 2. It encourages managers to correlate selling price, promotion cost, and profi t per unit. 3. Encourages stability, especially when the industry spends the same percentage. However, this method has its limitations. These are as follows: 1. It views sales as a cause of promotion rather than the result. 2. Budget allocation is on the basis of availability rather than based on opportunities. 3. Advertising is treated as an expense for making sale rather than being treated as an investment.

4. If sales fall, then the communications also are limited, whereas more communications may be required to boost the fl agging sales. 5. As the sales vary from year to year, the budget for communication also varies and makes long-term planning diffi cult. 6. There is no logical basis for choosing the percentage other than what competitors are doing or what the organization has already been doing. Some of these drawbacks can be overcome by fi xing a percentage of sales that is projected for the period in which the communication is to be carried out. The percentage so fi xed is as per the industry standard. Competitive parity method This method allocates the budget for marketing communications on the basis of the competitor’s outlay. This method advocates that:

1. competitor’s budget represents the industry wisdom; and 2. spending what competitors spend prevents a promotion war.

However, it is seen that neither of the cases is necessarily applicable. In addition, there are other drawbacks associated with this method as follows:

1. It ignores the fact that there are opportunities and problems that can speciﬁ cally be achieved by marketing communication. 2. It assumes that by spending an equal amount as the competition, the organization will be as much as if not more successful. It does not take other factors into consideration such as the product, creativity in execution of communication, price, and place, which might be the reason for the competitor’s success. 3. Competitors might change their strategy and allocate more money for achieving their communication objectives in the stated period.

To summarize the discussion, keeping an eye on competition is important and advantageous for ﬁ rms. However, it should not be the sole criteria for setting the budget. Managers can combine this with any of the other methods discussed. Return on Investment (ROI) This method is based on the belief that communication is an investment and like other investments in an organization, it is expected to earn some return as well. Thus, ifOxford direct mails are sentUniversity to the customers, then thePress response received due to this communication activity will help determine the ROI for this activity. However, it may not always be possible to determine ROI of a communication activity. For example, if a company does a product placement in the Bigg Boss season on TV, then it will be difﬁ cult to measure the ROI for this. These methods are used in top-down approaches where the budget is decided without any theoretical basis and, as is mentioned, come with inherent disadvantages as well. However, an understanding of the same is important as many companies employ one or the other of these methods while allocating marketing communication budget. The second approach is the build-up approach for allocating the budget. In this approach, the objective to be achieved is set and then the budget is worked out for achieving this objective. This budget is then presented to the top management for approval and usually employs the objective and task method.

Objective and task method Setting the budget on the basis of costs involved in performing specifi c tasks for achieving specifi ed objectives is known as allocating budget on objective and task method. In this method, the management decides beforehand what they want to achieve from their marketing communication, plan the tasks involved, and set the budget accordingly, thus focusing on the objectives to be achieved rather than on what competitors are doing. This budget is then approved and the activity is carried out. The next steps of strategy formulation are done prior to setting up of the budget, and once the approval is received, then execution and control follows as discussed further’. The advantage of using this method is that the allocation of funds is done as per its requirement for fulfi lling the objective. However, this also leads to a disadvantage when the marketers fail to identify the correct cost or cannot identify all the cost associated with the achievement of the defi ned objective. The following factors infl uence the choice of promotional mix ( Jobber 2001; Kotler and Keller 2006; Jauhari and Dutta, 2010): Resource available and cost of promotional tool The different communication mixes have varying costs associated with them. Advertising may require more money, whereas sales promotion and publicity might cost a lot less. Thus, resources available for the communication mix will affect the choice of promotion. Market size and concentration Advertising is seen to be most effective when a mass market is present and if the market is also geographically dispersed. Internet marketing is also gaining prominence with more consumers getting online and the cost associated is also less compared to some of the other methods of promotion. If the target audience is small, reaching them through personal selling will be more feasible. Customer information needs Personal selling is used if the service involved requires technical discussions or discussions of different options are available. If not much technical information is required, customers can be satisfi ed by advertisements. Push versus pull If the service provider is focusing on the channel intermediaries, it focuses on push strategy, which can be achieved through personal selling and sales incentives, but if the consumers are the focus, then service providers engage in pull-strategies, which can be achieved by advertising and consumer promotion. Product life cycle The stage of the life cycle the service is in affects the choice of promotion mix. For example, in the introductory stage, the organization will invest in both advertising and sales promotion, whereasOxford in the decline stage,University the investment in both Press the activities is reduced. Buyer readiness stage The stage of the buyer in the purchase process affects the choice of the promotion mix. It is seen that in the awareness, interest, desire, action (AIDA) model of consumer purchase, advertising and publicity help to raise awareness and create interest in the consumers, but are not very effective in encouraging consumers to take action. Sales promotion and personal selling are known to affect desire and inspire customers to take action and purchase the product.’ Standardization versus customization orientation of the company When companies go international, they tend to use the standard communication or can customize their communications depending upon the economic, social, and technological requirements of the host country. This requirement would add cost to the communication budget, and so depending upon the extent of customization the company plans to do, proportionate money would have to be allocated. More of standardization

versus orientation marketing communication is discussed in Chapter 23: Integrating the global marketing communication. Thus, depending upon these factors, the budget requirement may vary from organization to organization even in the same industry.

STRATEGY FORMULATION The broad strategy that companies will follow for effective communication with the target audience is to be formulated and informed to various people who will carry out the communication function. More about the strategy formulation is discussed in the next section of this chapter. For further detailing on the strategy to be followed by various marketing communication tools: Chapter 8 talks about the advertising strategy that companies can follow including the various appeals they can use for inﬂ uencing the customers; Chapters 12 and 13 look at the various sales promotion strategies that company can execute for effective communication; Chapters 14 and 15 talk about the direct marketing strategies; Chapters 16 and 17 highlight the personal selling strategies that company can carry out for achieving their objectives; and Chapters 18 and 19 delineates the publicity and public relations activities while Chapters 20 and 21 look at new media strategies such as Internet and mobile phones.

Execution The whole marketing plan needs to be coordinated and the message displayed should be uniform so as not to confuse the customers about the product. It should also be in line with the product offered so that the customer expectations can be met easily and surpassed, as the case may be. Moreover, since a combination of promotion mix is used, which different departments handle (advertising by advertising department or agency, personal selling by the sales department, etc.), there can be issues when the message delivered may not be consistent. Say, the advertising department may position the service as premium, whereas the salesforce may offer discounts giving a contrary notion. Thus, the execution stage is very important and companies need to ensure that the various players handling the marketing communication are working transparently and in unison.

Measurement Oxfordof Effectiveness University Press The marketing function so performed needs to be measured to see the degree of achievement of the organizational objective that was set initially. Thus, it is important that the stated objective of the marketing communication be measured, and if sales was the objective (DAGMAR approach), then the increase in sales as a result of the marketing communication should be calculated. However, if brand building is the objective, then it is more of a long- term objective and cannot be calculated by the immediate increase in sales due to this communication.

Evaluation and Follow-up The communication effectiveness should then be studied to identify the missed opportunities or best practices that can then be rectiﬁ ed or documented for future reference as the case may

be. Thus for example, when UCB came out with #UnitedByDonts, it can see the response it received to its event by counting the number of people who registered for the event, the number of people that turned up for the event, the number of conversations it was able to create for #UnitedByDonts, and the coverage it was able to get in the press and media for the event. This evaluation will help to decide the success of the event and the amount of consumers it could connect to. Registration for the event helped it get the contact information such as phone number, e-mail id, and their age. This generates data for the company that can further be used to develop customized targeting strategy. Thus, UCB can document this and use this strategy at other cities or countries.

STRATEGY DEVELOPMENT Communicating with the target audience does not stop after the evaluation and follow-up of the current communication activity. It is a continuous process and companies need to have a strategy in place about how they will communicate for the next one year and the coming few years (see Fig. 2.5). Integrated marketing communication concept (discussed in Chapter 1) forms the basis of the strategy development. The strategy formulated at this point of time has to be media neutral. It needs to identify what to say and how to say (to its various audiences in the target market) so as to achieve the organizational goal. Thus, for example, initially the company would want to communicate its product characteristics to the target market. This can be done through advertising to the customers and distributing samples (sales promotion) to targeted customers. In the next stage, personal selling and direct marketing can be done followed by press releases (publicity) where the product is praised and talked about in a positive light so as to inﬂ uence customers towards the brand. In the second year, the company’s objective is to create top-of-the-mind recall and enhance sales while launching brand extensions for successful brands. To achieve this objective, the company can remind the customers about their brand characteristics through online advertising. Here, they can use banner advertisements or send e-mails or decide to do both these activities. To enhance sales, they can come out with sales promotion offers. The offer can include discounts for retailers so that they push sales or can be for customers so that they purchase more of the product. For launching brand extensions, the company ﬁ rst needs to identify what it will launch in the market. For example, Real Activ by Dabur has aOxford variety of fruit and University vegetable juices as its sub-brandsPress such as mixed-fruit and orange. It launched its Real Activ Coconut Water, Real Wellnezz Jamun, Real Activ Superfruits (Pomegranate & Berries), etc. It then released a number of advertisements to inform consumers about their brand extensions and the reasons why people should consume these. For example, the coconut water carton reads ‘Coconut water: Hydrates Naturally; 100% Rich in Antioxidant and Phytonutrients’, while the message on mixed-fruits carton is ‘Superfruits: Rich in Antioxidant and Health Boosting Properties’, etc. The next year can see reinforcing of brands as an objective along with enhanced sales. Company can then do search engine marketing and come out with second sales promotion offer and so on. This strategic planning for the integrated marketing communication will help the company in not only planning and managing the integrated marketing communication, but also ensure that the communication made should be clear so that at no point of time in the future as well, companies contradict what they had said about themselves earlier.

Create top-of-mind Communicating Reinforcing brand; Mar com recall; enhance sales; product characteristics enhance sales objectives { launch extenstions

Advertising; sales Press releases; Sales promotion Search engine promotion advertisements (offer 1) marketing Mar com tool Personal selling; E-mails; banner Sales promotion Advertising; publicity { direct marketing ads online (offer 2) Time frame{ January, year 1 January, year 2 January, year 3

Fig. 2.5 Managing integrated marketing communication

Note: The above ﬁ gure is indicative and can be extended over years or for a single year and other activities might also be added.

RESEARCH IN MARKETING COMMUNICATION Effectiveness of communication can be measured by conducting communication research. Measuring recall and recognition of the services by the target audience, what features they recall, their perceptions about the product provided based on the marketing communication, and attitude formation or change (for a ﬁ rst time consumer or a re-purchaser of the service provided)—all the above provide interesting knowledge and information to the managerial staff. Generally, what is targeted should be measured. Thus, if the objective of communication is sales, then the sales department should be the focus of research to measure the impact of advertisement on sales. The NewOxford York American MarketingUniversity Association has inPress afﬁ liation with Advertising Club Bombay started the EFFIE Awards in India (Advertising Club Bombay 2006). These awards measure the success of an agency in increasing the client’s business across a variety of parameters. More about the research in mar com is discussed in Chapter 24: Monitoring and control.

SUMMARY

This chapter looks at how the IMC process can be carried out in inﬂ uence the customers to purchase the product. Personal selling an organization. It introduces the various tools that form a part of involves the direct face-to-face interaction with the buyers. Direct how the organizations can communicate with the masses. These marketing on the other hand involves interaction with the buyers include advertising, sales promotion, personal selling, direct but through a media. Public relations focus on all the stakeholders marketing, and public relations and publicity. Advertising can be and involve managing and maintaining good relations with the carried out through a number of media and is the most visible publics in general. form of communication. Sales promotion is a short-term tool to The various tools result in sending organizational messages

© Oxford University Press. All rights reserved. IMC PROCESS 39 to the target audience and stakeholders. What is said also results Strategy development and execution should result in the in customers and stakeholders forming an opinion of the brand uniform image being created across various communication tools and ultimately the brand’s image. Thus, it is important to maintain and also the message communicated over time. The management uniformity and continuity in the messages that are communicated. of IMC helps develop an understanding of how companies can The various tools should, therefore, ﬂ ow from the same strategic ensure the uniformity in message across tools and over time. orientation of the ﬁ rm as has been discussed in the IMC process. Research also helps in measuring the effectiveness and helps The IMC process starts with opportunity analysis, market analysis, companies further decide the tools to use and the messages to objective setting, budget allocation, strategy formulation, execution, be communicated. measurement of effectiveness, evaluation, and follow-up.

KEY TERMS

Advertising A communication that is paid for by an identifi ed to attain integrated marketing communications. sponsor with the object of promoting ideas, goods, or services. It Public relations This is the method of infl uencing the is intended to persuade and sometimes to inform. public so that they regard an individual, fi rm, charity, etc., in a Direct marketing This is a method of selling by means of favourable light compared to their competitors, as in business dealing directly with consumers rather than through retailers. a good corporate image is an important asset. Personal selling This is the person-to-person interaction Publicity This is the technique of attracting the attention of the between a buyer and a seller in which the seller’s purpose is public to a product, organization, or event by the mass media. to persuade the buyer of the merits of the product, to convince Publicity involves a third party, such as a newspaper editor or TV the buyer of his/her need for it, and to develop with the buyer presenter, who determines whether the message is suffi ciently an ongoing customer relationship. newsworthy to publish and what the nature of the message Promotional mix This ia an organization’s total promotional should be. effort, including personal selling, advertising, publicity, public Sales promotion This is an activity designed to boost the relations, and sales promotion. The promotional mix attempts sales of a product or service.

EXERCISES

Multiple Choice Questions (d) None of the above 1. The communication tools of a company include 5. Affordable, arbitrary, and percentage of sales are (a) Direct modes of communication (a) Ways by which companies advertise (b) Indirect modes of communication (b) Ways by which companies choose communication (c) Both of the above budget (d) None of the above (c) Strategy for sales promotion (d) Ways by which companies do public relations 2. Advertising, sales promotion, online advertising, and public relations are Oxford UniversityConcept Review QuestionsPress (a) Unpaid forms of communication 1. What are the various communication tools that can be used (b) Paid forms of communication by organizations for their communication with the target (c) Sometimes paid and sometimes unpaid forms of audience? communication (d) Advertising tools 2. Differentiate between 3. Unpaid communication includes (a) advertising and sales promotion; (a) Publicity (b) personal selling and direct marketing; and (b) Public relations (c) advertising and public relations (c) Both of the above 3. What are the various media available for advertising the (d) Sales promotion company’s message? While working under a budget 4. Personal communication is constraint which two media should be used by a company (a) Paid form of communication and why? Make assumptions about the kind of product that is (b) Unpaid form of communication to be advertised. (c) Both of the above

4. Write a note on the IMC process. advertising and personal selling’. 5.Write a note on how companies can establish budget for 4. Of the various ways by which budget can be established for communications. communication process, which according to you is the most 6. You are the Communication Manager of ‘W’ Stores. Formulate relevant and why? a communication strategy for the next 35 years. 5. ‘Integration in marketing communication is just hype created by communication experts’. Give your reasons for or against this. Critical Thinking Questions Internet Exercises 1. ‘Communication is all about advertising to the customers’. Discuss the statement in the light of the communication 1. Visit the website of makemytrip.com and identify the various tools. tools of communication on the homepage. 2. Critically evaluate the statement that ‘Sales promotion is the 2. Identify a company and delineate the various tools of most important tool of communication’. communication that the company is using for communicating 3. Critically evaluate the statement that ‘Public relations are on the Net. important but companies can also be successful by just

REFERENCES

Belch, G. E., M. A. Belch and K. Purani (2010), Advertising Jauhari, V. and K. Dutta (2010), Services: Marketing, Operations and Promotion: An integrated marketing communications and Management, Oxford University Press, New Delhi. perspective, 7th edition, Tata McGraw Hill Education Jobber, David (2001), Principles and Practices of Marketing, Private Limited, New Delhi. McGraw-Hill Publishing Company, Chapters 11–15, Clow, K. E. and D. Baack (2012), Integrated Advertising, Pro- Berkshire. motion and Marketing Communications, 4th edition, Pearson, Kotler, Philip, John T. Bowens, and James C. Makens New Delhi. (2006), Marketing for Hospitality and Tourism 4th edition, Colley, R. H. (1961), Deﬁ ning advertising goals for measured Pearson Education Inc, New Jersey. advertising results, Association of National Advertisers, Kotler, Philip and Kevin Lane Keller (2006), ‘Marketing New York. Management’, 12th edn, Prentice Hall of India Private Engel, James F., Martin R. Warshaw, and Thomas Limited, New Delhi. C. Kinnear (1987), Promotional Strategy Managing and Ray, Michael (1973), ‘A decision sequence analysis of Marketing Communications Process, 6th edn, Irwin, Chapter developments in marketing’, Journal of Marketing, 1, Homewood, Illinois. Vol. 37, No. 1, p. 31. GroupM Report (2015), available on http://www.live- Sengupta, S. (2005), Management of Public Relations and mint.com/Consumer/nAhthSk6371gEVIQiZ929J/ Communication, 2nd edition, Vikas Publishing House Pvt. Indian-advertising-expenditure-to-touch-Rs49000-cro Ltd, New Delhi. re-in-20.html, last accessed on 6 November 2015. Shultz, D. E. (1993), ‘Integration helps you plan communi- Harish, B. (2011), availableOxford on http://marketingpractice. Universitycations from outside-in’ Press Marketing News, p. 12. blogspot.in/2011/05/koutons-50-40-off.html, last Lbb (2016), available on https://lbb.in/delhi/68313-2/, accessed on 9 April 2016. last accessed on 10 April 2016.

CASE STUDY Vodafone: Deals and Communication About Vodafone The brand has not only become the largest company Vodafone entered the world on 1 January 1995 when in Europe, but in its lifespan of 15 years, it has come it was launched in the United Kingdom. Vodafone’s to control more than a third of the UK market. meteoric rise to the top is nothing short of a miracle. Vodafone marched into the international markets

Fig. 2.6 Image of Vodafone Blue Facebook phone advertisement Source: Superbrands 2012 with a singular aim: complex technologies should be made so simple that every consumer could meet his personalized needs and make the most of his deal. After fi nally placing its foot in Europe, the brand came to the explosive Indian market. Many have said Vodafone’s entrance in the Indian market was like a ‘meeting of the Titans: a great nation meeting a great company’. Connecting with the Consumers At Vodafone, a lot of efforts were spent to ensure that the services were developed in a way so as to empower consumers. Before Vodafone, a consumer’s relationship with his telephone provider was mired in confusion and unawareness, but with Vodafone’s 121 customer care number, the client was drawn closer. Now the consumer knew what services he could get and so clients started fl ocking to Vodafone. Among other things, the customer care number provided usage analysis and even recommended suitable plans Fig. 2.7 Image of Vodafone ‘Delights’ advertisement for the respective consumer. Source: Superbrands 2012 Getting the early mover advantage by making Facebook available on theOxford go, the brand introduced University on fi ne dining, travel, Press and fashion. Vodafone was lit- Vodafone Blue, a phone for Facebook (see Fig. 2.6). erally offering a whole other lifestyle, making the con- The phone, which was launched at a minimal price sumers feel special. Advertisements were released and of `4950 (US $90), introduced Facebook to a wider consumers were informed about all these offering. audience. Vodafone believes that consumer needs have In order to reach a wider consumer group, Voda- evolved, a phone is not just viewed as a calling device fone tried to change its ‘expensive telecom provider’ anymore, and so the brand has tried to offer all telecom- image. The Vodafone Bonus Cards were a way to munication solutions under the same umbrella. Voda- do that. The bonus cards, which cost a meagre `4 fone has also collaborated with other telecom providers helped the brand to open itself up to a bigger audi- to bring consumers together and offer attractive deals. ence. Vodafone ‘Delights’ (see Fig. 2.7), a loyalty programme for Vodafone users, was an unexpected blow Communicating at all Levels to the brand’s competitors—not only was Vodafone Vodafone stores are not only easily accessible but providing telecom services, it was also providing deals they are also spread all across the country, and they

are stocked with a wide range of products. The store those services available to prepaid users that were only offers data packs, notepads, mobile handsets, USB available to postpaid users. Services such as Chhota dongles, and laptops. Customers can also just go to Recharge, Call Me Back, and Credit Transfer were a the store to get expert advice or avail other services. part of the services offered to prepaid customers. Their staff have complete knowledge about the Another commendable quality of the brand is various offerings and guide consumers effectively. that it tries to come up with something to offer for Vodafone was like the wind in BlackBerry’s sails. everyone. For example, the brand developed the 123 The brand gave BlackBerry a completely new image service, a number anyone could dial and get anything by leveraging the beneﬁ ts of its chat, mail, and from recipes (see Fig. 2.9) to matrimonial alerts to even messenger services. Vodafone also gave BlackBerry a astrology. Vodafone did this with an aim to make the 60-second TVC (TV Commercial). The after effects lives of those who were not comfortable with mobile of opening BlackBerry up to a younger market data, easier. included an increased interest in the brand. This was followed with ‘mob activations in the malls and Vodafone BlackBerry Blast Smoothies, especially developed by Café Coffee Day’.

Fig. 2.9 Vodafone Dial 123 Daily Recipes advertisement Source: Superbrands 2012 Fig. 2.8 Image of Vodafone 3G advertisement Source: Superbrands 2012Oxford UniversityThe biggest success Press in the brand’s advertisement section in the Indian market was the introduction of Vodafone also contributed by supporting the 2G the ZooZoos. The Zoozoo, with its white body and and 3G markets. When they were ﬁ rst introduced, egg-shaped head was an instant hit with the Indian consumers were not sure of the format’s capabilities and audience. The advertisements that were used to the market penetration levels were abysmal. In order to promote a number of services offered by Vodafone change the situation, Vodafone took steps to educate in an ingenious way were very well received. A people and spread awareness so that consumers could lesser known fact about the Super Zoozoo is that the fully avail what was being offered to them (see Fig. 2.8). character is not animated, but it is played by a ﬁ ve- Before long, consumers started embracing these foot girl in a Zoozoo suit. technologies and thus giving a boost to the markets. Vodafone has won awards from organizations Another move by Vodafone which helped to build like PETA for the sensitivity it has shown towards a bigger base was the brand’s endeavour to make animals, like using an animated parrot instead of a live

© Oxford University Press. All rights reserved. IMC PROCESS 43 one and replacing the pug with more humanitarian Discussion Questions options in their advertisements. 1. Delineate the various tools of communications Conclusion that are highlighted in the case study. How has the company strategized to use these tools? Vodafone’s success cannot just be accredited to its own 2. Apply the IMC process to the case study and character but also to the response it gathered from identify the stages that are highlighted in the case. the customers. The brand stands for speed, trust, and 3. Suggest a strategy for the brand that it can use to simplicity. With a presence in more than 70 countries communicate with the customers for the next two and ﬁ ve continents, today Vodafone prides itself with a years. consumer base close to 370 million users. Since Vodafone is constantly coming up with new References ways for its consumers experience, it is a superior Superbrands, (2012), Superbrands: An insight into India’s illustration of how its tagline “power to you” is strongest consumer brands – 10th Anniversary Edition; Volume working (Superbrands 2012). IV, Superbrands India Private Limited, Gurgaon.

Oxford University Press

Answers to Multiple Choice Questions: 1 (c), 2 (b), 3 (a), 4 (c), 5 (b)